2025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Zhejiang Dahua Technology Co. Ltd.2025 Annual Report Stock code: 002236 Stock Abbreviation: Dahua Technology Date of Disclosure: April 2026 This document is a translated version of the Chinese version 2025 Annual Report (“2025 年年度报告全文”) and the published annual report in the Chinese version shall prevail.The complete published Chinese 2025 Annual Report may be obtained at http://www.cninfo.com.cn. 12025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2025 Annual Report Section I Important Notes Table of Contents and Definitions The Board of Directors directors and senior management of Zhejiang Dahua Technology Co. Ltd. (hereinafter referred to as the "Company") hereby guarantee that the information presented in this annual report is true accurate and complete and that it contains no false records misleading statements or material omissions. Each shall assume individual and joint and several liability for the content hereof.Fu Liquan the Company's legal representative Xu Qiaofen chief accountant and Zhu Zhuling person in charge of accounting institution (chief accountant) hereby declare and warrant that the financial report in the annual report is authentic accurate and complete.All directors attended the meeting of the Board of Directors for deliberation of this annual report.During the reporting period there was no significant change in the risks faced by the Company. The Company has been trying to identify all kinds of risks and actively take countermeasures to avoid and reduce the risks. (1) Risk of technology upgrading: The AIoT industry is a prime example of a technology- intensive sector characterized by rapid advancements and upgrades. If the Company is unable to keep up with 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 22025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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) Risks of business model change: With the development of Internet of Things AI big data cloud computing network communications among other technologies as well as the upgrades of intelligent terminal applications the business model in the IoT era may have an impact on the traditional industry development. If an enterprise fails to grasp opportunities brought about by the business model transformation in a timely manner it may face the risk that the original market pattern becomes broken. The Company continues to focus on and study the major changes in global economy industry and technology analyze the industry development logic and predict the evolution of AIoT industry the continuous integration of video information communication and digital technologies and the diversification and uncertainty of customer demands. While consolidating its current advantageous market the Company is also actively exploring and piloting new businesses and new commercial modes with business and technical layout. (3) Risks of declining local fiscal payment capacity: At present some localities have relatively high fiscal debt levels and declining payment capacity which may slow the growth of industry demand prolong the construction period of projects extend the collection of capital and delay customers' payment. The Company has continuously improved its accounts receivable and credit system optimized project review methods prudently selected local engineering projects systematically assess project risks timely implemented in-process risk controls and developed contingency plans to address risks such as cash flow shortages and project delays thereby reducing project credit risks. 32025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (4) Risks of international operations: The global economy remains in cyclical adjustment and the Company faces multiple risks in its international operations. Development across global regions is uneven and macroeconomic volatility persists. Western technology controls and regional trade protectionism are escalating and pressure from local manufacturing and supply chain localization requirements in some countries and regions continues to increase. The normalization of regulatory requirements for data security carbon tariffs and ESG is continuously driving up the requirements imposed on the Company for compliance capability building and increasing its cost outlays.To address these risks the Company takes proactive measures to prevent and manage risks associated with international operations. It continues to improve its operational risk management system and enhance compliance capabilities strengthens multi-currency trade activities and supply chain control and flexibly adjusts its market strategies. While actively responding to risks the Company seizes internationalization opportunities and establishes its own risk hedging system. (5) Exchange rate risk: In 2026 the global exchange rate landscape showed a sustained weakness of the U.S. dollar profoundly affecting the pricing logic and the structure of receipts and payments in international trade. The Company's export transactions are mainly settled in US dollars and its overseas business is experiencing sustained growth.Therefore exchange rate fluctuations may affect the Company's profitability. The Company mitigates and avoids foreign exchange risks through centralized management of foreign exchange funds hedging via procurement payments and other measures. (6) Product security risk: The Company attaches great importance to product security and continues to set up dedicated funds to strengthen product security in order to prevent and respond to security risks of products in application environments. However 42025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text there may still be risks of denial-of-service brute-force intrusion SQL injection malware and other attacks which may lead to system failure or service interruption. The Company's Network and Data Security Committee improves a global end-to-end network and data security system in terms of policies organizations processes management technology and specifications actively responds to cyber security challenges and remains vigilant against and prevents major cybersecurity incidents. (7) Intellectual property risks: 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: Geopolitical tensions persist globally raw material prices fluctuate at high levels and shortages are seen in some raw materials. Production cuts and suspensions by major storage chip manufacturers have led to sharp surges in market supply prices; the substantial rise in bulk metal prices has driven price increases of varying degrees for affected materials. To respond to the overall supply market situation the Company dynamically adjusts its inventory and stock-up strategy establishes strategic material reserves by locking in quantities and prices in advance 52025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text accelerates the development of alternative materials and secures supply from multiple suppliers. These measures not only ensure stable supply but also reduce the impact of raw material price increases on product costs.The profit distribution proposal approved by the Board of Directors is as follows: based on the Company's total share capital of 3249442473 shares as of April 17 2026 (after deducting shares held in treasury through repurchase) a cash dividend of RMB 3.70 per 10 shares (tax inclusive) will be distributed to all shareholders. No bonus shares will be issued (tax inclusive) and no capitalization of capital reserves into share capital is proposed. 62025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Table of Contents Section I Important Notes Table of Contents and De... 2 Section II Company Profile and Key Financial Indic...15 Section III Management Discussion and Analysis ..... 20 Section IV Company Governance Environment and Soci. 155 Section V Significant Events .......................180 Section VI Changes in Shares and Information about Shareholders ... 226 Section VII Bond-Related Information .............. 237 Section VIII Financial Report ......................238 72025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Documents Available for Reference (I) Financial statements bearing the signatures and seals of the Company's principal officer the person in charge of accounting affairs and the head of the accounting department (chief accountant).(II) The original copy of the audit report with the seal of the accounting firm and signed and stamped by certified public accountants.(III) Originals of all Company documents publicly disclosed during the reporting period and the original manuscripts of all announcements. 82025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Definitions Refers Item of Definition Definitions To Refers Reporting Period From January 01 2025 to December 31 2025 To Dahua Technology Company The Refers Zhejiang Dahua Technology Co. Ltd.Company To Dahua System Engineering System Refers Zhejiang Dahua System Engineering Co. Ltd.Engineering Company To Refers Dahua Vision Technology Zhejiang Dahua Vision Technology Co. Ltd.To Dahua Security Network Operation Refers Zhejiang Dahua Security Network Operation Service Co. Ltd.Company To Refers Dahua Ju'an Zhejiang Dahua Ju'an Technology Co. Ltd.To Refers Guangxi Dahua Information Guangxi Dahua Information Technology Co. Ltd.To Refers Guangxi Yunlian Guangxi Dahua Yunlian Information Technology Co. Ltd.To Xiaohua Technology Hangzhou Refers Hangzhou Xiaohua Technology CO. LTD.Xiaohua To Refers Dahua Zhilian Zhejiang Dahua Zhilian Co. Ltd.To Dahua Investment Dahua Refers Zhejiang Dahua Investment Management Co. Ltd.Investment Management To Refers Guangxi Zhicheng Dahua Zhicheng Guangxi Dahua Zhicheng Co. Ltd.To Hangzhou Huacheng Huacheng Refers Hangzhou Huacheng Network Technology Co. Ltd.Network To Refers HuaRay Technology Zhejiang HuaRay Technology Co. Ltd.To Refers Fuyang Hua'ao Hangzhou Fuyang Hua'ao Technology Co. Ltd.To Refers Huafei Intelligent Zhejiang Huafei Intelligent Technology CO. LTD.To Refers Huachuang Vision Zhejiang Huachuang Vision Technology Co. Ltd.To Refers Leapmotor Zhejiang Leapmotor Technology Co. Ltd.To Refers Guizhou Huayi Guizhou Huayi Shixin Technology Co. Ltd.To Refers Guangxi Huacheng Guangxi Huacheng Technology Co. Ltd.To Refers Meitan Dahua Technology Guizhou Meitan Dahua Information Technology Co. Ltd.To 92025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Refers Inner Mongolia Zhimeng Inner Mongolia Dahua Zhimeng Information Technology Co. Ltd.To Tianjin Dahua Information Tianjin Refers Tianjin Dahua Information Technology Co. Ltd.Dahua To Hunan Dahua Zhilong Dahua Refers Hunan Dahua Zhilong Information Technology Co. Ltd.Zhilong To Refers Huaxiao Technology Zhejiang Huaxiao Technology Co. Ltd.To Refers Vision Technology Zhejiang Fengshi Technology Co. Ltd.To Refers Xi'an Dahua Zhilian Xi'an Dahua Xi'an Dahua Zhilian Technology Co. Ltd.To Refers Huaruipin Jiangsu Huaruipin Technology Co. Ltd.To Refers Beijing Huayue Shangcheng Information Technology Service Co.Beijing Huayue To Ltd.Refers Shanghai Huashang Chengyue Information Technology Service Co.Shanghai Huashang To Ltd.Refers Dahua Jinzhi Zhejiang Dahua Jinzhi Technology Co. Ltd.To Refers Zhoushan Operation Zhejiang Zhoushan Digital Development Operation Co. Ltd.To Refers Guangxi Dahua Technology Guangxi Dahua Technology Co. Ltd.To Refers Huayixin Zhejiang Huayixin Technology Co. Ltd.To Refers Hirige Zhejiang Huaruijie Technology Co. Ltd.To Refers Chengdu Zhilian Chengdu Dahua Zhilian Information Technology Co. Ltd.To Refers Chengdu Zhian Chengdu Dahua Zhian Information Technology Service Co. Ltd.To Refers Chengdu Zhishu Chengdu Dahua Zhishu Information Technology Service Co. Ltd.To Refers Chengdu Zhichuang Chengdu Zhichuang Yunshu Technology Co. Ltd.To Refers Chengdu Smart Network Chengdu Huishan Smart Network Technology Co. Ltd.To Refers Huakong Software Zhejiang Huakong Software Co. Ltd.To Refers Huacheng Software Hangzhou Huacheng Software Co. Ltd.To Refers Henan Dahua Henan Dahua Zhilian Information Technology Co. Ltd.To Refers Huajian Technology Zhejiang Huajian Technology Co. Ltd.To 102025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Refers Zhengzhou Dahua Zhian Zhengzhou Dahua Zhian Information Technology Co. Ltd.To Refers Dahua International Dahua Technology International Co. Ltd.To Refers Anhui Zhilian Anhui Dahua Zhilian Information Technology Co. Ltd.To Refers Anhui Zhishu Anhui Dahua Zhishu Information Technology Co. Ltd.To Refers Changsha Dahua Changsha Dahua Technology Co. Ltd.To Refers Tianjin Huajian Tianjin Huajian Technology Co. Ltd.To Refers Zhejiang Pixfra Zhejiang Pixfra Technology Co. Ltd.To Refers Yiwu Huaxi Yiwu Huaxi Technology Co. Ltd.To Refers Dahua Operation Zhejiang Dahua Intelligent IoT Operation Service Co. Ltd.To Refers Nanyang Intelligent Nanyang Dahua Intelligent Information Technology Co. Ltd.To Refers Yibin Huahui Yibin Huahui Information Technology Co. Ltd.To Refers Mianyang Huacheng Mianyang Huacheng Zhiyuan Technology Co. Ltd.To Refers Luoyang Zhiyu Luoyang Dahua Zhiyu Information Technology Co. Ltd.To Refers Huaqi Intelligence Zhejiang Huaqi Intelligent Technology Co. Ltd.To Refers Chengdu Information Chengdu Dahua Wisdom Information Technology Co. Ltd.To Refers HJ Technology Zhejiang HJ Technology Co. Ltd.To Refers Huaxiyue Guangdong Huaxiyue Intelligent Technology Co. Ltd.To Refers Huajie Operation Zhejiang Huajie New Energy Operation Service Co. Ltd.To Refers Shuhang Intelligent Zhejiang Shuhang Intelligent Technology Co. Ltd.To Refers Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co.Qingdao Ruifa To Ltd.Refers Shandong Digital Intelligence Shandong Dahua Digital Intelligence Technology Co. Ltd.To Refers Fujian Qingchuang Fujian Dahua Qingchuang Digital Technology Co. Ltd.To Refers Jilin Zhilian Jilin Dahua Zhilian Technology Co. Ltd.To 112025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Refers Zhengzhou Huaao Zhengzhou Airport Economy Zone Huaao Technology Co. Ltd.To Refers Hainan Huizhi Hainan Dahua Huizhi Technology Co. Ltd.To Refers Qingdao Ruihai Qingdao Dahua Ruihai New Energy Operation Co. Ltd.To Dahua Hong Kong Dahua (HK) Refers Dahua Technology (HK) Limited Limited To Refers Dahua Europe Dahua Europe B.V.To Refers Dahua Middle East Dahua Technology Middle East FZE To Refers Dahua Mexico Dahua Technology Mexico S.A. DE C.V To Refers Dahua Chile Dahua Technology Chile SpA To Refers Dahua Malaysia Dahua Security Malaysia SDN. BHD.To Refers Dahua Korea Dahua Technology Korea Company Limited To Refers Dahua Indonesia PT. Dahua Vision Technology Indonesia To Refers Dahua Colombia Dahua Technology Colombia S.A.S To Refers Dahua Australia Dahua Technology Australia PTY LTD To Refers Dahua Singapore Dahua Technology Singapore Pte. Ltd.To Refers Dahua South Africa Dahua Technology South Africa Proprietary Limited To Refers Dahua Peru Dahua Technology Perú S.A.C To Refers Dahua Russia Dahua Technology Rus Limited Liability Company To Refers DAHUA TECHNOLOGY BRASIL COMéRCIO E SERVI?OS EM Dahua Brazil To SEGURAN?A ELETR?NICA LTDA Refers Dahua Canada Dahua Technology Canada INC.To Refers Dahua Panama Dahua Technology Panama S.A.To Refers Dahua Hungary Dahua Technology Hungary Kft.To Refers Dahua Poland Dahua Technology Poland Sp. zo.o.To Refers Dahua Italy Dahua Technology Italy S.R.L.To 122025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Refers Dahua Tunisia Dahua Technology Tunisia Limited Liability Company To Refers Dahua Kenya Dahua Technology Kenya Limited To Refers Dahua UK Dahua Technology UK Limited To Refers Dahua Germany Dahua Technology GmbH To Refers Dahua Serbia Dahua Technology SRB d.o.o.To Refers Dahua India Dahua Technology India Private Limited To Refers Dahua Turkey Dahua Guvenlik Teknolojileri Sanayive Ticaret A.S.To Refers Dahua Czech Dahua Technology Czech s.r.o.To Refers Dahua Argentina Dahua Argentina S.A.To Refers Dahua Spain Dahua Iberia S.L.To Refers Dahua Kazakhstan Dahua Technology Kazakhstan LLP To Refers Dahua Denmark Dahua Technology Denmark ApS To Refers Dahua France Dahua Technology France SAS To Refers Hong Kong Yihua YIHUA SERVICES (HK) LIMITED To Refers Dahua New Zealand Dahua Technology New Zealand Limited To Refers Dahua Netherlands Dahua Technology Netherlands B.V.To Refers Dahua Morocco Dahua Technology Morocco SARL To Refers Dahua Romania Dahua Technology S.R.L To Refers Dahua Uzbekistan Dahua Vision LLc To Refers Dahua Bulgaria Dahua Technology Bulgaria EOOD To Refers Dahua Sri Lanka Dahua Technology China (Pvt) LTD To Refers Dahua Pakistan Dahua Technology Pakistan (private) Limited To Refers Dahua Thailand Dahua Technology (Thailand) Co.LTD.To 132025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Refers Dahua Nigeria Dahua Technology Nigeria Representative Ltd To Refers Dahua Israel Dahua Technology Israel Ltd.To Refers Dahua Mexico Service VISMEXTECH DHM SERVICIOS S.A. DEC.V.To Refers Dahua Japan Dahua Technology Japan LLC To Refers Dahua Qatar Dahua Technology QFZ LLC To Refers Dahua Pacific Dahua Technology Pacific S.A To Refers INTELBRAS S.A. INDúSTRIA DE TELECOMUNICA??O Intelbras S.A.To ELETR?NICA BRASILEIRA Refers Dahua Saudi Arabia Dahua Technology Middle East for Maintenance To Refers Dahua Bengal Dahua Technology Bangladesh Private Limited To Refers HuaRay Singapore HUARAY TECHNOLOGY SINGAPORE PTE. LTD.To Refers Dahua Belgium Co. Dahua Technology Belgium BV To Refers Dahua Saudi Arabia Co. Dahua Technology Regional Headquarters To Refers Dahua Argentina Co. Dahua Technology Azerbaijan LLC To Refers Dahua Vietnam Co. Ltd. Dahua Technology Vietnam Company Limited To Refers HuaRay Korea HUARAY TECHNOLOGY KOREA COMPANY LIMITED To Refers HuaRay Germany HUARAY TECHNOLOGY GMBH To Refers Dahua Angola DAHUA EUROPE B.V - SUCURSAL EM ANGOLA(SU) LDA To Refers Hirige Technology MaLaysia Hirige Technology MaLaysia Sdn.Bhd.To Refers Dahua Egypt Dahua Technology Egypt LLC To Refers DAHUA TECHNOLOGY AUH FOR SECURITY & SURVEILLANCE DAHUAAbu Dhabi To – SOLE PROPRIETORSHIP L.L.C.Refers PixFra Hong Kong PIXFRA (HONG KONG) CO. LIMITED To Zhejiang Huaxiao Technology Co.Refers Ltd. (Wisualarm Technology) Hong Wisualarm Technology (HK) Limited To Kong 142025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Section II Company Profile and Key Financial Indicators I. Company Information Stock Abbreviation Dahua Technology Stock Code 002236 Stock Exchange Shenzhen Stock Exchange Company Name in Zhejiang Dahua Technology Co. Ltd.Chinese Company Abbreviation in Dahua Technology Chinese Company Name in Foreign ZHEJIANG DAHUA TECHNOLOGY CO.LTD.Language (If any) Legal Representative Fu Liquan Registered Address 1187 Bin'an Road Binjiang District Hangzhou Post Code of Registered 310053 Address Change of the Company's On November 09 2005 the Company's registered address changed from the 15th floor Registered Address of Tianyuan Building 508 Wensan Road Hangzhou to the present registered address.Office Address No. 1399 Binxing Road Binjiang District Hangzhou City Post Code of Office 310053 Address Website www.dahuatech.com E-mail zqsw@dahuatech.com II. Contact Person and Contact Information Secretary of the Board Representative of Securities Affairs Name Wu Jian Li Sirui No. 1399 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. Information Disclosure and Location The stock exchange website where the Company Shenzhen Stock Exchange (http://www.szse.cn) discloses the annual report The media outlets and their websites where the Company Securities Times and CNINFO http://www.cninfo.com.cn/ discloses the annual report Location for annual report of the Company Securities Investment Department 152025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text IV. Registration Change Unified Social Credit Code 91330000727215176K Changes in Main Business Since Listing (If any) No Change Change of Controlling Shareholders (If any) No Change V. Other Related Information Accounting Firm Hired by the Company BDO China Shu Lun Pan CPAs (special general Name of the Accounting Firm partnership) 4/F New Huangpu Financial Plaza No.61 Nanjing East Office Address of the Accounting Firm Road Shanghai Name of Certified Public Accountant Du Na Wang Keping The sponsor institution hired by the company to perform the continuous supervision in the reporting period □ Applicable □Not Applicable The financial adviser hired by the company to perform the continuous supervision in the reporting period □ Applicable □Not Applicable VI. Key Accounting Data and Financial Indicators Whether the Company needs retroactive adjustment or restatement of accounting data in prior years or not □ Yes □No Increase/Decrease Compared with the 202520242023 Same Period of the Previous Year Operating Revenue 32743783343.8032180931827.171.75%32218317636.77 (RMB) Net profit attributable to shareholders of 3857923611.862905728684.0332.77%7361892404.52 the listed Company (RMB) Net profit attributable to shareholders of the listed company 2729580707.492347399066.6716.28%2961742139.01 after deducting non- recurring gains and losses (RMB) Net cash flow generated by 3907798165.282710237609.3044.19%4598778654.47 operational activities (RMB) Basic Earnings per 1.180.9031.11%2.31 Share (RMB/Share) Diluted Earnings per 1.180.9031.11%2.31 Share (RMB/Share) 162025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Weighted Average 10.42%8.19%2.23%22.43% ROE Increase/Decrease at the End of the Current Year End of 2025 End of 2024 End of 2023 Compared with the End of the Previous Year Total Assets (RMB) 52558604784.24 52735912081.82 -0.34% 52881927214.00 Net Assets Attributable to Shareholders of the 37757140211.25 36028046171.08 4.80% 34719173825.42 Listed Company (RMB) The Company's net profits before and after deducting non-recurring profits and losses whichever is lower are negative in the last three fiscal years and the audit report of last year shows that there is uncertainty in the Company's ability to continue as a going concern.□ Yes □No During the reporting period the lowest of audited total profit net profit and net profit after deducting non-recurring gains or losses is negative.□ Yes □No VII. Differences in accounting data under domestic and foreign accounting standards 1. Differences of net profits and net assets in the financial reports disclosed according to the international accounting standards and Chinese accounting standards □ Applicable □Not Applicable During the reporting period of the company there is no difference between the net profits and net assets in the financial reports disclosed according to international accounting standards and Chinese accounting standards. 2. Differences between the net profits and net assets in the financial reports disclosed according to the overseas accounting standards and Chinese accounting standards □ Applicable □Not Applicable During the reporting period of the company there is no difference between the net profits and net assets in the financial reports disclosed according to overseas accounting standards and Chinese accounting standards.VIII. Key Financial Indicators by Quarter Unit: RMB Q1 Q2 Q3 Q4 Operating Revenue 6256129778.73 8925199872.40 7731212668.46 9831241024.21 Net profit attributable to shareholders of 653304288.99 1822262461.62 1059901819.80 322455041.45 the listed company 172025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Net profit attributable to shareholders of the listed company 503508968.091292424443.61760511398.58173135897.21 after deducting non-recurring gains and losses Net cash flow generated by -671695394.62 1310818373.73 924533153.39 2344142032.78 operating activities Whether the above financial indicators or their totals are significantly different from the financial indicators disclosed in the Company's quarterly and semi-annual reports □ Yes □No IX. Non-recurring Gains and Losses Items and Their Amounts □Applicable □ Not Applicable Unit: RMB Item Amount in 2025 Amount in 2024 Amount in 2023 Note Profits or losses from disposal of non-current assets (including the write-off 499321216.61 104348459.46 4778983828.56 for the accrued impairment of assets) Government grants recognized in profit or loss for the period (excluding government grants closely related to the Company's ordinary course of business in line with 338545545.11249665678.30199003183.46 national policies received in accordance with established standards and having a continuing impact on the Company's profit or loss) 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 7539283.69124956271.40103119981.50 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 582864912.76175635135.761819647.72 management entrusted to others Reversal of the receivables depreciation 4496227.704602004.264513.91 reserves for separate impairment test Profits and losses on debt restructuring -32512136.39 -394660.00 -16242445.24 Non-operating revenue and expenses 7457474.8012821255.27-18035840.08 other than the above Other gains and losses items that fit the definition of non-recurring gains and -7787445.32 -1833839.60 -57989909.93 losses Less: impact of income tax 253249486.05 85954207.29 555973378.97 182025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Impact of minority equity (after tax) 18332688.54 25516480.20 34539315.42 Total 1128342904.37 558329617.36 4400150265.51 -- 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. 192025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Section III Management Discussion and Analysis I. Main Businesses of the Company during the Reporting Period 1. Business Overview The Company is a globally leading provider of video-centric AIoT (Artificial Intelligence of Things) solutions and operational services. The Company is committed to technology-and-innovation-driven development leverages large-scale models to build broader AIoT capabilities strengthens integrated connectivity fully unlocks the value of video-centric data elements and builds intelligent agents for cities and enterprise industries to help cities build more efficient governance systems and enable enterprises' digital and intelligent transformation.In the urban business field centering on the goal of "efficient urban governance urban operation autonomy enhanced security system and ecological collaborative governance" we establish an innovative smart city ecosystem with "unified architecture compatible reuse shared capabilities and open business." In industries such as transportation traffic police social governance public wellbeing and ecological environment we deeply cultivate urban business scenarios provide leading AIoT solutions for various industries in the city serve urban digital innovation and help realize the beautiful vision of harmonious coexistence between man and nature man and society and man and city.Currently we have accumulated and consolidated over 5000 fine?grained scenarios and over 120 industry solutions.In the field of enterprise business the Company deeply integrates advanced technologies such as AI and big data with industry scenarios gaining insight into the trend of industrial transformation. It delves into various industries to explore the digital and intelligent needs of enterprises providing each customer with high-quality digital intelligence upgrade solutions. In the fields of construction education manufacturing petrochemistry coal electricity iron and steel agriculture logistics culture & tourism healthcare finance and commercial chains the Company is actively engaged in innovative practices focusing on ensuring production safety enhancing production capacity promoting operational efficiency and optimizing the quality of service (QoS) to achieve customer value and is committed to becoming a trusted partner for the digital intelligence upgrade of enterprises. Currently more than 3000 segmented scenarios and more than 180 industry solutions have been accumulated.In the innovative business the Company based on its in-depth understanding of customers' diversified needs and years of experience in AIoT continues to explore emerging businesses including: machine vision mobile robots thermal imaging automotive electronics smart security inspection smart fire control and other innovative businesses. 202025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2. Organization Structure On the market side the Company has established domestic and overseas marketing and service systems and continues to improve its global marketing and network layout. It provides customers with full-lifecycle services including consulting design sales delivery and after-sales support for products and solutions. To date the Company has established more than 200 offices in China covering 100% of provinces municipalities directly under the Central Government and autonomous regions 100% of prefecture-level cities and over 70% of counties and districts. Overseas it has set up 75 subsidiaries and branches covering more than 180 countries and regions.Based on its technological capabilities the Company has established five research institutes: the Advanced Technology Research Institute Data Space Research Institute Central Research Institute Cybersecurity Research Institute and Product Engineering Institute supporting product line R&D and empowering urban business enterprise business and SME business. With its headquarters in Hangzhou as the central hub the Company has also set up four R&D sub-centers in Xi'an Chengdu Europe and Latin America expanding its global R&D layout. After years of development the Company has a national postdoctoral workstation is a nationally recognized enterprise technology center a National Industrial Design Center and a national innovative pilot enterprise.The Company leverages digital technologies to build a resilient global multi-organization manufacturing and supply system. It has now formed a global multi-tier supply network consisting of two domestic manufacturing centers (Hangzhou Changsha) one overseas manufacturing center two European HUB warehouses and overseas national warehouses covering N core markets.The Company has established a multi-dimensional service network consisting of global customer service centers branch offices national service centers and authorized service stations with more 212025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text than 170 spare parts centers/spare parts stations and over 1000 service partners. It aims to provide customers with efficient standardized professional and end-to-end delivery and services. 3. Main Products and Capabilities As large model technology reaches an inflection point for large-scale application the demand for intelligent solutions from government and enterprise customers has become increasingly diversified.The demand of government entities is undergoing a profound transformation from digitalization to digital-intelligent transformation. Against the backdrop of high-quality development enterprises on top of traditional work safety guarantees are urgently pursuing core objectives such as quality improvement efficiency enhancement and green development. Meanwhile the rapid advancement of AI technologies is highly urgent and disruptive. In particular the development and application of large models have become the core driving force for the Company's in-depth scenario-based implementation.AIoT industry features highly fragmented scenarios and stringent accuracy requirements. Despite the continuous improvement in the generalization ability of general large models the business logic varies significantly across different segmented industries such as electric power coal manufacturing etc. and there remains an obvious gap for in-depth implementation. This gap is precisely the key entry point for the Company to upgrade its technical architecture with large models at the core. 2026 is the opening year of the 15th Five-Year Plan and a critical turning point for the national "AI+" strategy as it moves from concept to deep implementation. To keep pace with the industry-wide digital and intelligent transformation break through bottlenecks in the traditional technical architecture meet the precise and systematic intelligence demands of vertical industries and truly unlock the value of AI large model technology the Company has comprehensively upgraded "AIoT" to "Intelligent Sensing" and "Intelligent IoT Data Platform" to "Intelligent Computing" establishing a brand-new AIoT technology system. This provides core technical support for the digital-intelligent leap of urban governance and enterprise operations. 222025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (1) Xinghan large-scale AI models drives the upgrade of Intelligent Computing empowering the in-depth digital and intelligent transformation of governments and enterprises In the context of upgrading large models and computing infrastructure as well as the large-scale accumulation of multimodal data "Intelligent Computing" is an integrated technical system built on computing power as the infrastructure data as the fuel and intelligent agents as the means. It covers the full-stack capabilities of industry-specific agents public cloud services MaaS intelligent hubs and intelligent computing infrastructure.The industry-specific agent technical system addresses the pain points of significant differences across industry scenarios and the inability of general intelligence to adapt to in-depth industry demands. It integrates six core technical capabilities: knowledge base industry business orchestration policy management visual process orchestration multi-type analysis and capability openness. By deeply integrating industry knowledge and scenario rules and relying on a cloud-edge collaborative architecture it enables multi-source data analysis automated business orchestration and dynamic policy management. It establishes an integrated intelligent execution technical system of rules models and tools forming an end-to-end closed-loop business process from perception to decision-making and execution. This precisely adapts to personalized scenarios in urban governance public security energy and other industries providing reusable orchestratable and open technical support for industry digital-intelligent transformation.Public Cloud Service anchors the "large model + IoT + cloud" integrated strategy and in 2025 successfully completed the critical leap from "device connection management" to "data-intelligence enablement". With a core support system of the trinity of "technology – service – ecosystem" the 232025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text business has built a full-stack large-model-native cloud foundation and intelligent development system.The MaaS Intelligent Hub is driven by the Xinghan large-scale AI models and built through the deep integration of the view middle platform and the data-intelligence middle platform. The view middle platform focuses on the full-link closed loop of visual data accumulates cross-scenario reusable algorithm models and achieves large-scale real-time inference through edge-cloud collaboration; The data-intelligence middle platform manages the unified integration governance and assetization of multi-source heterogeneous data and delivers standardized data services. The two middle platforms collaborate to form a capability foundation for unified access scheduling and services driving the evolution of models toward full-modality with video as the core. They achieve optimal scheduling of computing power and algorithms across cloud edge and devices establishing a value transformation path from data elements to intelligent applications and fully empowering the digital and intelligent transformation of governments and enterprises.The intelligent computing infrastructure centers on diverse heterogeneous computing power and multi-dimensional data storage focuses on AIoT scenarios integrates intelligent networking and full- domain security capabilities and provides high-performance low-latency secure and trustworthy computing support. Relying on the Company's proprietary software-hardware synergy advantages it has formed full-stack large-model innovation capabilities unified scheduling of device-edge-cloud computing power and algorithms and realized hardware resource pooling for image computing power AI computing power general computing power data storage etc. It has built a full-network computing architecture system to support the digital and intelligent upgrade of urban governance and enterprises. (2) Multi-dimensional perception infrastructure upgrades Intelligent Sensing empowering a leap in data quality with the Xinghan large-scale AI models As the front-end perception entry for business intelligence the Intelligent Sensing system breaks the limitations of traditional single visual perception and builds a three-in-one multi-dimensional perception capability matrix: visual perception fusion perception and sensing collaboration. Visual perception covers full-spectrum scenarios including visible light infrared and ultraviolet. Fusion perception further expands to full-dimensional physical signals such as multispectral hyperspectral electromagnetic waves radar sound waves and vibration. Meanwhile it supports full-process sensing collaboration across connection control display and interaction achieving all-round full- dimensional information collection for urban governance enterprise operations and other scenarios.Powered by Xinghan large-scale AI models (on-device) Intelligent Sensing achieves an upgrade in sensing data quality. Through core capabilities including sensing data enhancement scene adaptation and incremental object detection it improves the integrity and accuracy of raw sensing data and drives the transformation from low-quality data to high-value data. Relying on enhanced 242025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text data structuring capabilities it converts multi-source heterogeneous sensing signals into standardized decision-ready structured data. This addresses the pain points of fragmented and hard-to-apply sensing data at the source providing highly reliable data support for the upper-layer MaaS Intelligent Hub and Industry Agents realizing "Sensing is Intelligence Data is Value". 3.1 Intelligent Sensing The Company empowers the global intelligent sensing system with Xinghan large-scale AI models to comprehensively improve sensing data quality and scenario understanding capability. The "Intelligent Sensing" system is based on visual perception. Through radar-video integration multi-frequency- domain sensing and multi-source data fusion it overcomes the limitations of single-modality vision and achieves all-weather high-interference-resistance precision acquisition and intelligent recognition in complex environments. Combined with the intelligent analysis purification and optimization of sensing data by large models data accuracy and usability are further enhanced. Meanwhile by deepening sensing collaboration device linkage and transmission control an integrated high-quality global sensing capability is created providing reliable front-end data support for the digital and intelligent applications of various industries. 3.1.1 Visual Perception Powered by large-scale AI models visual perception is driving cameras to evolve from traditional passive "viewing and recording" data-acquisition terminals into the "sensory endpoints" through which intelligent systems perceive and understand the physical world. It equips devices with capabilities including visual enhancement scene adaptation precise target detection and tracking scene element analysis and target behavior recognition in complex environments. Through semantic processing of video content it also significantly improves the efficiency of device-edge and device- cloud intelligent collaboration realizing the leap from single visual perception to deep intelligent understanding. 3.1.1.1 Visual Enhancement for Extreme Scenarios Leveraging AI large model capabilities the Company has upgraded its visual imaging system and launched a series of visual enhancement products further optimizing image signal-to-noise ratio and 252025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text color reproduction in extreme scenes such as low illumination and strong backlight enabling analysis under complex lighting environments."Nightvision King" series products continue to iterate driving upgrades to the standard for full-color night vision without supplemental lighting supporting all weather long distance precise perimeter detection and avoiding interference from flying insects and spider webs caused by Light. The Skyscanner/Skyline series based on the self-developed large-model image engine greatly enhances the ability to extract real details of captured targets under extremely low illumination significantly improving the restoration effect of target features in complex scenes. Yizhen series cameras are equipped with anti-backlight technology which effectively eliminates monitoring blind spots caused by strong light from vehicle lights at night ensuring all-weather visibility in harsh traffic scenarios such as highways. 3.1.1.2 Intelligent Scenario Adaptation Cameras in the scene adaptation series equipped with the Xinghan large-scale AI models can significantly strengthen core intelligent capabilities such as target detection linkage tracking and situation analysis according to actual scenario requirements. The perimeter large model effectively reduces the false alarm rate of cameras in complex scenarios and improves target detection distance and accuracy; the tracking large model enhances the close-up tracking ability of dome cameras under complex conditions such as target occlusion and crossing. Dahua Jinghong high-speed zoom system combined with large-model target tracking algorithms effectively improves the multi-target positioning and capture rate of multi-camera linkage systems in large scenes such as entrances squares and roads. The sixth-generation Hubble integrates large-model situation awareness and high-power zoom functions solving the challenges of accurate quantity statistics and situation analysis for small targets in large scenes. 262025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3.1.1.3 Comprehensive Scenario Coverage The Company's industry-specific intelligent camera solutions target the pain points of industry digital transformation deeply integrating technological innovation with scenario requirements. It provides scenario-defined camera series with differentiated data sensing capabilities adaptable to various scenarios.In electric power scenarios the inspection series combines night vision fog penetration anti-shake and other technologies and integrates industry-specific large models to improve hidden danger detection rate. In water conservancy monitoring scenarios the Night Hawk series integrates full-color night vision and low-power online technology and links with radar water level gauges to break through extreme weather monitoring bottlenecks meeting the needs of all-weather rainfall and water level monitoring and accurate water level monitoring. In petroleum refining mining tunnels and other scenarios self-cleaning cameras are equipped with scratch-resistant coatings and automatic cleaning systems to ensure continuous monitoring in dusty environments. In smart logistics scenarios camera form factors and functions are customized for different scenarios. Cold-chain cameras are low- temperature-resistant and compact suited to cold-storage environments. High-temperature-resistant cameras support stable operation at 75°C with precise color reproduction suitable for high- temperature scenarios. In port and maritime scenarios remote-controlled cameras have overcome the challenges of strong-vibration environments enabling precise remote operation of port machinery.In intelligent manufacturing production lines cameras feature a compact body and triple anti-shock structure paired with high-frame-rate imaging to accurately capture high-speed moving targets. They 272025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text also support algorithm extension and real-time early warning comprehensively improving industrial inspection efficiency. 3.1.1.4 Intelligent Controlled Wireless Endurance The Company actively responds to the national "Dual Carbon" strategy and upgrades its low-power technology platform. By optimizing component selection dynamic zone control and AI energy efficiency prediction it reduces device energy consumption and has launched a series of energy- saving wireless solar-powered low-power cameras. Powered by the AOV 2.0 always-on technology the equipment trained through massive scenarios and model optimization can accurately detect targets even in shallow sleep mode and supports instant switching to recording to avoid missing events. With advantages including extended battery life wide-temperature adaptability and high- precision AI detection the cameras enable wireless deployment driving the application and expansion of visualization in more scenarios. 3.1.1.5 Full-Color Coaxial Intelligent Vision The Company integrates AI technology with high-definition coaxial video technology enabling products to achieve round-the-clock intelligent sensing HD intercom and full-scenario coverage and reshaping the user experience of coaxial cameras. Equipped with AI ISP algorithms the products greatly enhance low-illumination full-color night vision and realize round-the-clock full-color monitoring.The optimized supplementary lighting technology uses sharp light-filling to significantly improve image clarity; zonal lighting technology achieves dynamic spatial dimming and solves the problem of uneven brightness. Dynamic intelligent sensing and intelligent adaptive switching between near and far supplementary lighting enhance the adaptability of lighting in different scenarios. End-edge integrated coaxial audio algorithms enable HD real-time coaxial intercom and strengthen proactive intervention.The new dual-lens linked PT series integrates self-developed technologies such as seamless hybrid 282025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text zoom and intelligent linked tracking breaking through the intelligence limitations of traditional zoom coaxial front-ends and achieving perimeter protection across multiple scenarios. 3.1.2 Fusion Perception The Company continuously expands non-video sensing methods to enhance multi-dimensional fusion perception capability. Its products cover spectrum bands including ultraviolet visible light near- infrared far-infrared millimeter wave radio frequency and audio and adopt refined spectral detection technologies such as multispectral and hyperspectral sensing. Through collaborative collection precise detection and intelligent fusion of information from different frequency bands the limitations of single sensing methods are broken through and a three-dimensional comprehensive perception system covering full scenarios all time periods and all elements is established providing multi- dimensional highly reliable information support for scenario monitoring situation analysis and decision-making support. 3.1.2.1 Millimeter-Wave Radar Perception The Company has continuously deepened its expertise in radar detection technologies to improve detection accuracy and reduce false alarm rates. It has now built a four major product matrix covering security transportation volume measurement and health care with ongoing expansion and implementation in more segmented scenarios. Security radars cover perimeter protection in scenarios such as border defense coastal defense and power stations; Transportation radars support scenarios including overload control traffic survey and railway intrusion protection; Volume measurement radars enable accurate 3D measurement of material piles silos and other targets; Health care radars are used for non-contact monitoring of human posture and health status.We further expand products in the field of radar and vision fusion and form a full-link solution from perimeter protection to smart transportation through scenario-based product combinations. "Yitong" binocular radar-vision system enables visualization of information collection and holographic intersection status covering long-distance ranges of bidirectional lanes and supporting the detection 292025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text of more than 20 types of events. The intelligent speed-measuring warning light integrates a mobile speed-measuring radar capture unit and edge intelligent terminal realizing mobile high-speed traffic violation capture and structured detection. 3.1.2.2 Audio Perception With artificial intelligence as its technological core the Company continues to refine its full-link audio and video technology system. The Company integrates AI into every stage of audio acquisition transmission processing and analysis and incorporates audio codec intelligent quality optimization event detection and speech recognition technologies. This enables adaptive sound field adjustment and intelligent audio quality reshaping and makes sound delivery more precise and more perceptive.In the industrial audio field the Company has launched a series of products such as broadband sound pickups vibration temperature sensors and acoustic imagers which can meet the needs of various industrial scenarios for audio monitoring and early warning. Through breakthroughs in proprietary filtering algorithms frequency-domain feature extraction cross-channel simulation and deep AI analysis technologies the Company has built a closed loop for multi-dimensional sensor data acquisition and algorithm analysis that covers audio vibration and other modalities. The system precisely enables anomaly detection for compressors bearings and transformers as well as gas leak detection and provides a solid safeguard for safety and efficiency in the energy and industrial sectors. In the field of interactive audio the Company deepens the integration of audio and video technologies improves the fluency of interaction and makes the interconnected experience more immersive and efficient. 302025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3.1.2.3 Multi-Frequency Domain Perception The Company innovatively integrates multi-spectrum technologies to construct a full-domain perception system. Spectral detection device conducts corresponding component analysis based on the absorption characteristics of materials such as laser gas meters to detect leaks of flammable and noxious gases and hyperspectral water quality meters to sense and ensure water safety. The full- domain Hubble system achieves panoramic monitoring and smoke identification by integrating visible light and thermal imaging and is used in forest fire prevention border and coastal defense and other fields. The digital license plate and radio frequency video all-in-one device uses self-developed UHF RFID technology to enable electric vehicle management contactless passage and urban illegal parking management. At the same time we expand visibility detectors sonar "Sentinel" and other diversified perception device to continuously deepen the scenario solution capabilities. 3.1.3 Perception Collaboration Perception collaboration is centered on "video-network integration" coordinating and enhancing the three major sectors of enhanced connectivity intelligent control and intelligent interaction to build a full-link collaborative perception business system. In terms of enhanced connectivity it integrates wired wireless and industrial scene transmission technologies upgrades multiple network operating systems and realizes cross-category interconnection and efficient data transmission breaking the limitations of traditional transmission and achieving seamless connection between devices. In terms of intelligent control we focus on the display and control scenario have launched a variety of intelligent display and control decoding equipment realized active perception and intelligent display and control and built a digital command center to provide strong support for decision-making. In terms of intelligent interaction we rely on large model algorithms to optimize interaction experience and improve the business closed loop fully realizing efficient collaboration and linkage among perception devices data transmission and business applications. 312025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3.1.3.1 Enhanced Connectivity In the data communications field the company integrates AI technologies into the core concept of "visual?network convergence" and through three stages—technical interoperability of cross?domain products diversified scenario linkage from in?depth applications and business intelligence driven by a large model?based intelligent hub—builds a full?stack solution that integrates multiple businesses and provides users with an exceptional end?to?end experience from installation and configuration to operations and maintenance.Leveraging its rich product matrix and unified ecosystem the Company achieves cross-domain and multi-category compatibility and interconnection. It builds the entire network's system-level capabilities of ultra-fast deployment ultra-simple configuration and ultra-efficient operation & maintenance constructs a unified multi-service integrated operation and maintenance center and realizes integrated delivery. Meanwhile based on the insight understanding and refinement of diverse application scenarios it launches scenario-specific solutions for intelligent configuration integration and application linkage. By deeply integrating multiple business applications the Company effectively reduces application complexity. 1. Wired Transmission The Company continues to promote the iterative upgrade of its core software platform. The upgraded cloud-managed switches as perception endpoints deliver smarter sensing faster feedback and more efficient execution. The upgraded high-end switches serving as network hubs provide stronger management capabilities more intelligent scheduling and richer protocol support. To meet multi- scenario business demands the Company continuously enriches its product matrix covering cloud- managed access-managed and aggregation switches establishing a more complete wired transmission product system. Meanwhile the Company further deepens application innovation and launches a series of intelligent features including QR code deployment intelligent VLAN scenario- based configuration and intranet penetration. 322025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2. Wireless Transmission The Company has upgraded its new-generation wireless network operating system. The upgraded wireless products enable faster interconnection more accurate identification and smarter decision- making. The full-range wireless products and new-generation AC routing integrated machines are being iterated to the new system with significantly improved performance and richer functions bringing users a smoother and more stable wireless access experience. At the same time the Company continuously improves its wireless supporting toolchain and launches a convenient wireless survey and design tool for the installation phase effectively lowering the deployment threshold. 3. Industrial Scene Transmission The Company continues to deepen the integration of "video-network integration" technology with industrial networks lowering the barrier to using complex network protocols and enabling efficient reliable batch configuration for more industrial network protocols. The company has comprehensively simplified the configuration process for ERPS and other mainstream ring network protocols in industrial scenarios significantly improving the on-site commissioning efficiency of industrial network products. 332025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3.1.3.2 Intelligent Control In the display and control sector the Company focuses on three major application scenarios: CCTV command centers and professional audio & video and is committed to providing a continuously evolving digital intelligent command center. In 2025 the Company launched the new LED Controller DSCON8000 intelligent decoder N70 and LED decoder. By deeply integrating AI models DSE codec technology image processing technology and LED control technology the system has evolved from passive display to active perception. It realizes autonomous judgment for intelligent patrol and dynamic screen display of regions of interest improves user experience and opens a new chapter in the digital intelligent development of display and control. 3.1.3.3 Intelligent Interaction Interactions between people and between people and things are ubiquitous in the physical world.Leveraging precise multi-dimensional perception to gain insights into the real world the Company aggregates massive value through diverse connections and builds digital-intelligent scenarios with intelligent computing aiming to enhance human-machine interaction and bridge the distance between people. The Company continues to deepen its presence in diverse fields including vehicle management personnel access control access control intercom smart office hospital care and new energy launching a series of intelligent interaction products to inject digital intelligence into social progress. 1. Vehicle Management Scenario The Company deeply integrates video display and machinery to comprehensively upgrade the user experience of smart parking scenarios. We integrate large model algorithms to enable zero-sample personalized license plate recognition and continuously improve access efficiency; realize all-round detection of lanes and parking spaces to enhance indoor guidance adopt an integrated parking and charging solution to expand the management dimensions for new energy vehicles and launch the 342025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Dahua Parking Cloud Platform that supports one-click device cloud access with broader scenario adaptability. 2. Personnel Access Management Scenario The company combines AI and IoT technologies to create an intelligent personnel access management system that integrates real-time access sensing and interaction intelligent identity verification and local and remote management. It supports multiple authentication methods including real people cards and QR Code and provides multiple security capabilities such as anti-tailing to meet the intelligent needs of personnel access scenarios. 3. Building Interaction Scenarios Based on access control video intercom emergency call and other products the Company is committed to building more mature solutions for building interaction scenarios.In the access control business the Company upgrades product value from multiple dimensions: First it enhances the security protection capability of access control systems by launching intelligent access control certified for HarmonyOS compatibility national cryptography series access control and palm vein recognition access control. Second it delivers a smoother user experience by achieving ultra-fast recognition with AI ISP and low-light perception technologies. Third it helps customers enhance business value by improving cloud-based services including cloud access control cloud intercom cloud visitor management and cloud attendance while integrating content playback 352025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text functions for electronic room number display park and community announcement release and commercial advertising.In the video intercom sector the Company has launched a new series of central control panels that integrate intercom detection video recording and storage and alarm services balancing convenience and security. At the same time optimize daily workflows among visitors owners and property management by integrating features such as one?tap elevator calling community announcement broadcasting and intelligent speech recognition dialing to enhance the intelligence of building environments. 4. Smart Office Scenarios The Company continuously upgrades its interaction and audio-visual technologies with AI large models as the core engine and enriches intelligent functions such as voice tracking real-time subtitles and interactive Q&A building a dual competitive barrier of "hardware + software". A series of upgraded products enhance the customer experience in the education and conference markets through efficient and autonomous interaction. 5. Medical Intercom Scenarios Keeping pace with the development trend of smart hospitals the Company deeply integrates with hospital information systems to realize real-time interconnection and closed-loop management of business data providing digital support for improving nursing quality and building harmonious doctor- patient relationships. It has built a full-process medical intercom solution that integrates functions such as one-click medical call and high-definition audio & video intercom improving the response efficiency of medical staff and patient satisfaction. With precise nursing positioning it optimizes the allocation of nursing resources and workflow. Meanwhile the Company has launched an ICU remote visitation and bedside interaction system which meets family visitation needs while effectively reducing the risk of cross-infection. 362025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 6. New Energy Field The Company continues to deepen its presence in the new energy charging pile sector launching a variety of innovative products compliant with EU standards national standards and other specifications for both domestic and overseas markets establishing a full-scenario product matrix.Relying on its integrated charging and parking solution it realizes a closed-loop perception of vehicle parking management charging management and station operation through edge computing integration strengthening its one-stop service capability and continuously delivering a superior user experience that is safer smarter and more convenient. 3.2 Intelligent Computing Focusing on the deep integration of large models and AIoT the Company has built a full-stack intelligent computing system covering industry-specific agents public cloud services MaaS intelligent hubs and intelligent computing infrastructure.To address the differentiated needs across multiple industries the Company develops productizable and operable industry agents to realize a full-process closed loop from perception analysis and decision-making to execution providing scenario-based solutions for the intelligent upgrade of various sectors. It also advances the public cloud 4.0 architecture upgrade constructs a large-model- native cloud foundation continuously enhances global service capabilities and deepens scenario applications and ecosystem openness. Furthermore relying on the MaaS Intelligent Hub the Company achieves collaboration between the view middle platform and data middle platform. With the Xinghan large-scale AI models as the core it enhances multimodal capabilities and the service level of industry models. Through device-edge-cloud integrated computing scheduling heterogeneous computing clusters and multi-dimensional data storage it provides high-performance secure and reliable underlying support for the large-scale deployment of intelligent applications and continuously drives the business transformation from project construction to capability operation. 3.2.1 Industry-Specific Agents Against the backdrop of the rapid adoption of large models the Company has forged an industry- specific development path distinct from general-purpose large models based on its long-term accumulation in AIoT and security sectors. By deeply integrating industry knowledge scenario 372025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text workflows and multimodal perception capabilities the Company has built a productizable and sustainably operable industry agent system that closes the full business loop. It delivers end-to-end empowerment spanning perception analysis planning decision-making and execution accelerating the development of industry agents and reshaping the software value space. 3.2.1.1 Capability Positioning With natural language interaction as the entry point the industry agent understands business semantics and invokes the capabilities of the view middle platform and data middle platform to complete cross-system tasks such as alarm linkage event analysis statistical analysis and policy orchestration. For complex scenarios the system supports the parsing of multiple data types including video views IoT sensing data business texts and alarm events. Combined with domain- specific knowledge bases it achieves retrieval augmentation and context constraint improving understanding accuracy and decision-making reliability. Building on its traditional video IoT solutions the Company has integrated the capabilities of the Dahua V/L/M series large models to form an agent product system with decision support workflow collaboration and automatic execution capabilities continuously improving usability and deployment efficiency in complex scenarios. 3.2.1.2 Build Path Grounded in scenario-based business rules the Company combines the understanding and reasoning capabilities of large models to upgrade the business model from perception and alarm to a full-process closed loop featuring continuous perception intelligent analysis strategy planning and decision execution. Through the collaboration of a unified intelligent middle platform and industry- specific vertical agents the Company has built an industry business orchestration system covering rules models tools and interfaces supported by a complete policy management mechanism. This realizes a closed loop of policy formulation gray release version rollback and effect evaluation. By reusing reusable capability modules it improves platform reusability and delivery efficiency and accelerates the transformation from project-based construction to capability-oriented operation. 3.2.1.3 Multi-level Coordination Centered on industry-specific agents the Company has built a multi-level architecture featuring collaboration among the center edge and terminals forming a cloud-edge integrated intelligent decision-making and execution system. On the central side it is responsible for unified orchestration and global scheduling focusing on multi-source data fusion intelligent agent control situation analysis and cross-domain collaboration supporting visual orchestration of workflows and policies as well as lifecycle management of models and plugins and exposing capabilities to upper-layer applications via API SDK and componentized services. On the edge side it provides lightweight execution capabilities for scenarios such as stations parks and intersections enabling policy delivery 382025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text on-site execution and result feedback. It ensures the continuous operation of key tasks even under network fluctuations. On the terminal side it undertakes interactive perception and on-site feedback realizing cross-level data connectivity and policy linkage with the center and edge thus improving service response speed and the integrity of execution closed-loop. 3.2.1.4 Key Technical Capabilities Knowledge base: Build a domain knowledge base around industry knowledge standards documents response plans and historical cases and—combined with retrieval augmentation and evidence citation mechanisms—provide traceable explainable knowledge support for intelligent agents.Industry business orchestration: Centered on industry processes it unifies the orchestration of rules models tool calls and human nodes supports cross-system collaborative task execution and shortens the implementation cycle from requirements to deployment.Policy management:Establish full lifecycle management capabilities for policies covering policy design version control canary release rollback and effect evaluation ensuring continuous optimization and stable operation of policies.Visualized process orchestration: Configure task links trigger conditions and execution paths through graphical workflow lowering the development threshold for complex processes and improving business and technical collaboration efficiency.Multi-type data parsing: The system performs unified parsing of multi-source data such as video views IoT sensing business text and alarm events carries out structured extraction and semantic alignment and enhances understanding and analytical capabilities in complex scenarios.Open capabilities:Expose model data process and strategy capabilities externally in the form of APIs SDKs and componentized services to support rapid integration of upper-layer applications and ecosystem expansion. 3.2.1.5 Industry implementation The Company focuses on key industries including public security urban governance transportation park management and energy security. It combines the capabilities of the center edge and terminals on demand to adapt to industry workflows and build differentiated competitive barriers. The business model has been upgraded from one-off project and platform delivery to sustainable iterative industry- specific agent products and services driving an increase in the proportion of recurring revenue such as software services agent services and O&M services continuously optimizing the profit structure and improving the quality of medium- and long-term business growth.Case 1: Traffic management Agent The "Human-Machine Collaborative Intelligent Agent for Traffic Management" uses natural language interaction as its unified entry point. Covering the full process of traffic police command law 392025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text enforcement hazard detection and daily management it integrates video surveillance signal control alarm platforms business systems and data middle platform to realize "one-sentence command and automatic multi-system linkage". Manual switching across multiple systems is transformed into platform-level automated capabilities. The intelligent agent can based on historical incident and case databases perform pre-identification of high-risk road segments and hazard points. It can also complete multi-level data aggregation and trend analysis for queries such as "accident volumes and trends" in seconds compresses data collection and reporting that previously took over 0.5 working days to seconds and improves statistical and report preparation efficiency by approximately 10 times.For technologically underdeveloped areas such as rural regions the agent supports one-sentence deployment and zero-code configuration for key illegal acts. Combined with real-time early warning and road-side linkage it effectively curbs the high incidence of fatal accidents and drives the upgrade of traffic management business to full-domain proactive governance.Case 2: Production Safety Agent In high-risk scenarios such as industrial parks industrial and trading operations hazardous chemicals energy and petrochemicals coal and blasting the Safety Production Intelligent Agent is centered on large-scale AI models. It integrates computer vision natural language processing and knowledge graph technologies to build an end-to-end governance system that covers risk identification intelligent assessment closed-loop rectification and decision support. With "AI Snapshot for Hazards" function frontline personnel can complete hazard identification and category determination in seconds simply by taking on-site photos with mobile phones while simultaneously receiving rectification suggestions and corresponding regulatory provisions realizing an integrated "diagnosis + prescription" service. Supported by multimodal capabilities the system covers six major sectors including industrial and trade hazardous chemicals construction fire control and gas and automatically identifies more than 20 typical risk scenarios significantly lowering the threshold for hazard detection. In terms of governance processes the agent can automatically generate structured rectification work orders to enable an online closed-loop management of inspection rectification and review. By linking with IoT sensors and video surveillance it realizes real-time detection and early warning of violations upgrading hazard management from passive recording to proactive early warning. The system embeds a knowledge base of laws and regulations industry standards and enterprise operating procedures and supports natural-language Q&A. It provides management and frontline staff with 24/7 "AI safety expert" services and closes the "last mile" in safety knowledge.Case 3: Natural Resources Supervision Agent In scenarios such as forest fire prevention water conservancy facility monitoring fishing bans and illegal construction inspection on national land the "Human-Machine Interaction Agent for Resources Supervision" integrates video surveillance IoT sensing satellite remote sensing meteorological data 402025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text and law enforcement systems to build a fully closed-loop supervision system. The system can automatically schedule the optimal algorithm combination for different scenarios to form a scenario- specific model matrix reducing the adaptation cycle for long-tail scenarios from weeks to days and improving the detection rate of early-stage smoke subtle leakages and illegal fishing activities. With adaptive recognition in complex environments and dynamic resolution optimization the system maintains high accuracy even in backlight rain fog and low-light night conditions. It also reduces false alarms by using rule and shielding frames improving the alert accuracy in effective monitoring areas. At the business collaboration level the intelligent agent builds a capability matrix of "target localization + attribute filtering + closed-loop handling." It can automatically identify target types calibrate positions and generate traceable records in scenarios such as construction vehicle supervision forest fire prevention fishing ban enforcement and territorial patrol. The system also automatically filters non-alert targets such as law enforcement vessels sanitation vessels registered construction vehicles and forest rangers and significantly reduces ineffective dispositions.Case 4: work safety in new energy power generation The Company has built a two-tier Agent collaboration system with a tiered mechanism of edge-side real-time handling and hub-side centralized analysis that balances response efficiency and decision quality. Through result feedback and knowledge iteration the system forms a closed loop of "disposal review and optimization" continuously improving the stability and intelligent level of work safety for new energy power generation.Edge safety production Agent is deployed on-site at wind-solar power plants energy storage power stations and other sites undertaking high-frequency tasks such as people-and-vehicle access control machine-room environmental and operational monitoring and patrols for hidden hazards of fans and photovoltaic arrays and can identify anomalies in real time—meter overload intrusion into dangerous areas flame and smoke personnel falls—and trigger graded alarms; in network-disruption scenarios it can still operate autonomously offline to ensure production continuity. The central safety production 412025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Agent is deployed at the group's headquarters and regional subcenters to conduct second verification of complex scenarios and challenging alarms—such as dense fog in mountainous areas and glare from photovoltaic panels—relying on multi-source data fusion and a safety production knowledge base to provide handling recommendations improve judgment accuracy and reduce false alarms.The central agent also continuously learns from the false alarms and disposal data at the edge side driving synchronized upgrades of the model and knowledge base to achieve "higher accuracy and greater intelligence with continuous use". 3.2.2 Public Cloud Services Amid the rapid development of the digital economy the value of data as a key production factor continues to grow bringing historic development opportunities to the cloud computing industry. As the core pillar of the company's digital and intelligent transformation the Dahua Public Cloud business is anchored on the integrated development direction of "large model + IoT + cloud" has completed a comprehensive upgrade to the 4.0 architecture and has built a full-stack intelligent globally collaborative Cloud Service system achieving a strategic leap from "device connection management" to "data-intelligence enablement" and becoming a key force in driving digital intelligence upgrade across industries. 3.2.2.1 Upgrade of Core Capabilities 1. Technological innovation: building a large model-native cloud foundation to strengthen intelligent competitiveness The Company deeply integrates large model technology into the full cloud service lifecycle and constructs a full-stack architecture of "cloud foundation – development platform – application layer". （1）IoT Cloud Foundation Platform 4.0: The Company fully embraces large-scale model and IoT low-code development technologies. On the basis of the existing capability middle platform it adds a technology middle platform productizes the technology pedestal and builds an efficient intelligent global IoT cloud foundation platform: Technology middle platform: focuses on the multi-cloud global distributed framework builds a digital immune system and large model foundation capabilities and consolidates "Dahua Public Cloud"s technological leadership; Business middle platform: deepens domain models for IoT businesses builds a value-added service business foundation and forms a middle-platform capability system to empower business development; IoT middle platform: establishes a global device access system supporting tens of millions of concurrent devices and enables rapid integration and unified management of third-party devices through low-code and visual configuration. Cloud-edge-device intelligence middle platform: Constructs an open platform for IoT large models and a multi-agent development collaboration framework realizes integrated intelligent scheduling and collaboration 422025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text across cloud edge and devices and accelerates the implementation of AI capabilities in IoT scenarios. Data middle platform: develops data mining agents and visual intelligent development capabilities. Operations middle platform: establishes intelligent decision-making for business analysis and a global value-added operation system; O&M middle platform: deploys global intelligent O&M and one-click automated deployment and recovery. （2）Intelligent upgrade development platform: The company deeply integrates large model capabilities comprehensively upgrades the five Dahua AIOT Studio development platforms and builds a complete "low-code + large model" agile development system: The Huada low-code product development platform covers full-scenario application development for mini-programs web apps and H5. It relies on low-code and large-scale model technologies and enables one-click application generation and release empowering partners to rapidly and cost- effectively build ecosystem applications. The Yinhe low-code IoT development platform achieves seamless integration of large-scale models and IoT protocols supports natural-language interactive querying and intelligent analysis of device data and greatly simplifies generic device onboarding processes. The AI Model Studio provides visual model tuning tools supports zero-code industry model adaptation and enables modular assembly of multimodal capability modules. The Beidou DevSecOps platform integrates an AI operations assistant for intelligent log anomaly recognition fault prediction and automatic generation of repair plans. The Suda component integration platform opens a large-scale model API marketplace and supports rapid integration of multimodal recognition intelligent encoding and other capabilities significantly improving R&D efficiency. 2. Service upgrade: closer to customer needs empowering in-depth scenario implementation Upholding the customer-focused service philosophy the Company promotes the deep integration of cloud services with frontline businesses to realize the rapid transformation of "technology – scenarios – value". (1) Precise empowerment in the domestic market: Focusing on the pain points of digital and intelligent transformation for small and medium-sized enterprises the Company integrates large model technologies into scenario-based services. With efficient software engineering capabilities it rapidly responds to emerging industry demands and achieves precise matching between business innovation and scenario implementation. (2) Overseas market localization and adaptation: Based on the industry characteristics and compliance requirements of different regions worldwide optimize the service system for the DoLynk series products provide multilingual intelligent services and customized deployment solutions lower the application threshold for overseas customers and accelerate global business rollout. 432025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3. Ecosystem co-construction: open collaboration for shared industrial value Continuing the ecological philosophy of "solution co-creation product co-development and capability sharing" we are building an open ecosystem centered on large models: (1) Opening the capabilities of the IoT intelligent cloud foundation: The Company fully opens core resources such as AIoT access large-model intelligent analysis and low-code development tools to ecosystem partners enabling them to rapidly build industry-specific intelligent applications based on their own scenario requirements. (2) Establishing a joint R&D mechanism: The Company collaborates with ecosystem partners to advance technological innovation of large models in vertical sectors jointly developing solutions tailored to industry demands so as to achieve complementary ecological resources and value co- creation. (3) Build a cloud ecosystem application marketplace that aggregates intelligent applications developed by partners creating a win?win pattern of "mutual resource promotion and mutual customer referral" while carrying out regular ecosystem technical training to enhance partners' large model application development capabilities forming an ecosystem development situation of "collaborative R&D efficient implementation and shared growth." 3.2.2.2 Core Product Matrix Based on the 4.0 cloud Pedestal and large model technologies the company has built a "domestic deepening + overseas expansion" product matrix: 1. Products for the Domestic Market (1) Dahua CloudLink: With the core strategy of "devices online users online and services online" this product realizes cloud-based management of massive IoT devices and establishes a one-stop cloud service platform covering video surveillance intelligent access control attendance management video intercom visitor systems and alarm linkage. At the same time it actively promotes the scenario-based application and intelligent upgrading of AI large model technologies.Through scenario-specific solutions it helps small and medium-sized enterprises improve operational efficiency strengthen security protection and optimize management processes. (2) DoLynk Enterprise: DoLynk Enterprise deepens its focus on the industry SaaS track and integrates the core capabilities of "large model + large video." It upgrades core modules such as AI store inspection and intelligent alarm to deliver product display compliance detection customer behavior analysis and intelligent service quality assessment. The platform has also enhanced enterprise group management cloud-edge convergence and integrated EV charging-parking modules provides refined services to address differentiated enterprise requirements and drives the transition of enterprise operational management toward greater precision and efficiency. 442025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (3) Dahua cloud developer platform: Geared towards ecosystem partners the platform fully opens up diverse technical resources such as AIoT access large-model intelligent analytics and Huada low- code development tools accelerating the deployment and popularization of large model technologies across various sectors. At the same time together with ecosystem partners it deepens engagement in vertical scenarios such as entertainment and elderly care jointly develops industry solutions and builds a cloud ecosystem application marketplace efficiently driving the co-creation and win-win realization of commercial value. (4) Dahua easy installation: Focusing on the critical product commissioning process the solution optimizes tool design with professional and streamlined workflows to significantly improve commissioning efficiency accelerate project deployment and delivery and provide partners with higher-quality more efficient support. 2. Product System for Overseas Markets (1) DoLynk product series: provides comprehensive enablement to global enterprises and developers and is committed to building a precise intelligent and convenient one-stop Cloud Service platform.With device connectivity solution implementation and ecosystem collaboration as core drivers the series deeply integrates diverse capabilities including cloud-based video management device operation and maintenance data communication networks wireless alarms video intercom access control and attendance as well as chain operation. It builds one-stop AIoT solutions covering multiple scenarios helping overseas enterprises achieve refined process control optimized operational costs and maximized transformation efficiency and accelerating their progress toward a new level of lean operation. (2) Overseas cloud developer platform: With DoLynk as its core platform the Company provides developers with comprehensive AIoT capabilities full open support for alarm operations and efficient online development and debugging tools. This enables ecosystem partners to rapidly build their own platforms achieve efficient business collaboration and fast market expansion extend their services to end users and fully unlock the value of ecological channels. (3) Rapid deployment toolchain: Targeting overseas installer communities it simplifies configuration processes lowers technical barriers and improves project delivery efficiency providing solid support for overseas business implementation and facilitating global market expansion. 3.2.2.3 Scenario Deepening and Business Expansion Based on the core needs of small and medium-sized enterprises in their digital and intelligent transformation the Company takes "in-depth scenario penetration + value-added business innovation" as dual drivers promoting the transformation of public cloud business from "basic service provision" to "value service creation". Meanwhile it expands its global market presence to achieve quality and efficiency improvements across its entire business scope. 452025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 1. Scenario deepening: precisely adapt to requirements and develop lightweight intelligent solutions Building an empowerment system of "industry scenarios + lightweight products + precise services": (1) Comprehensive coverage of segmented industry scenarios: The Company has achieved deep penetration into high-frequency scenarios such as chain retail small and medium-sized manufacturing micro and small enterprise offices community services schools and construction and has created scenario-specific intelligent solutions. In chain retail the Company integrates large- scale AI model-driven product display detection customer behavior analysis inventory intelligent early warning and other functions to help stores optimize operational efficiency. In SME manufacturing the Company focuses on production safety and equipment operation and maintenance and provides lightweight video surveillance intelligent analysis equipment anomaly prediction and other services to reduce production safety risks. In micro and small enterprise offices the Company integrates intelligent attendance access control management remote collaboration and other basic functions with AI intelligent customer service automated data report generation and other value-added capabilities to address daily operational and efficiency improvement needs. (2) Lightweight product adaptation: Launch modular configurable Cloud Service packages that allow customers to flexibly choose core modules such as device access data storage and intelligent analytics according to their scale and scenario needs avoiding redundant feature investments and achieving a cost-effective start to digitalization and intelligent upgrades. 2. Value-added service innovation: unlocking data value and expanding service boundaries Developing diversified value-added services to extend from "basic cloud services" to "full-lifecycle value services": (1) Intelligent data analysis services: The Company provides standardized data insight services conducts in-depth analysis of equipment data and business data based on large models and generates operation optimization reports risk early warnings customer profile analysis etc. to support scientific decision-making for enterprises. (2) Ecosystem value-added service linkage: The Company joins hands with ecosystem partners to launch bundled packages of "cloud services + hardware + value-added applications" covering intelligent hardware access cloud storage industry application plug-ins etc. forming a one-stop procurement and service closed loop and enhancing customer stickiness.In 2026 the Company will continue to leverage the architectural advantages of native large models in its public cloud business focusing on three core directions: First strengthening large model technology innovation to enhance multi-modal fusion low-sample learning and lightweight deployment capabilities adapting to more vertical industry scenarios; Second expanding the "Model- as-a-Service" business model launching more industry-specific intelligent service packages to enrich 462025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text the product and service matrix; Third deepening global ecosystem collaboration improving the openness and compatibility of the cloud foundation supporting partners in joint R&D in cutting-edge fields such as large models and digital twins and driving ecosystem cooperation from "quantitative accumulation" to "qualitative leap". 3.2.3 MaaS Intelligent Hub The MaaS intelligent hub consists of the view middle platform and the data middle platform. The view middle platform focuses on the closed loop of data algorithms training and inference transforming cross-scenario view data into reusable algorithm and model capabilities and converting models into scalable real-time inference through edge-cloud collaboration. The data middle platform is oriented to the unified aggregation and standardized governance of multi-source heterogeneous data establishing a data lake and asset catalog to form reusable data assets features and knowledge supplies while supporting urban governance and enterprise digital intelligence applications through service-oriented interfaces.These two middle platforms operate in synergy taking view data as the core connecting the entire link of collection and access governance and processing fusion modeling and service provision and opening up the value transformation path from data elements to intelligent applications. On the one hand the Company builds Dahua-distinguished industry Model-as-a-Service (MaaS) capabilities.Based on the technical foundation of the Xinghan large-scale AI models and profound industry knowledge accumulation it promotes the evolution of model capabilities from multimodality (M) to full- modality capabilities centered on video (V) integrating multimodality (M) and language (L) so as to establish a cognition and interaction system more tailored to industry scenarios. On the other hand strengthen the middle platform's aggregation capabilities to build an intelligent central platform with unified access unified scheduling and unified services. It deeply integrates view intelligence and data intelligence integrates large model inference and training frameworks intelligent task orchestration engines and unified dataset management capabilities and constructs a cloud-edge- end integrated intelligent scheduling system for algorithms and computing power. This realizes the optimal allocation and efficient utilization of global resources and improves the overall decision- making and response efficiency. 3.2.3.1 Xinghan Large-Scale AI Models At present artificial intelligence technologies centered on large models are reshaping production factors restructuring business models and empowering industrial value with unprecedented depth and breadth becoming a core engine driving the digital and intelligent transformation of industries.Faced with this major development opportunity the Company remains committed to the innovative R&D of world-leading artificial intelligence technologies and actively promotes the industrial 472025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text application of large model technologies. Focus on large model technical directions centered on vision and multimodality continuously upgrading large models to enhance visual cognition and image-text understanding capabilities. Build large model Infra capabilities and deeply optimize large-scale cluster management training of large-parameter models and efficient deployment and inference substantially improving large model computational efficiency shortening large model R&D and productization cycles and enhancing product competitiveness. Build end-to-end large model engineering capabilities moving from out-of-the-box standardized product delivery toward upgraded operational value. Deepen industry focus to strengthen industry-specific characteristics of large models accelerate intelligent agent applications and comprehensively establish a productized large model application system covering cloud edge and endpoints.Looking ahead as AI evolves from an auxiliary tool to autonomous task-executing agents large models are shifting from the "training era" to the "inference era". In this process a large number of inference tasks will be deployed from the cloud to edge and end devices promoting balanced computing power distribution and fostering a huge market for edge and end-side inference products.The Company will keep pace with the wave of technological evolution continuously strengthen its forward-looking layout in lightweight models edge-side inference engines software-hardware collaborative optimization and other fields and actively seize the structural opportunities brought by the new technological wave. 3.2.3.1.1 Upgrade of Capabilities In 2023 the Company launched the Xinghan large-scale AI models which centers on visual analysis and integrates multimodal capabilities. It took the lead in applying the model in urban governance and the electric power industry. Through industry practices a complete large-model computing framework was developed promoting the deployment of more industry-specific large models. In 2024 the Company fully upgraded the Xinghan large-scale AI models and launched the V series large model with vision as the core the L series large model with language as the core and the M series large model with multimodality as the core. In 2025 the Company continued to upgrade its three major model series (V M and L) focused on core technologies for industry agents and built differentiated competitive advantages for the Xinghan large-scale AI models. It further deepened the integration of large models with industry operations and value realization and promoted large-scale productized applications of large models. 1. Upgrades of the Three Major Model Series: V M and L Visual large model (V series): Vision analysis capabilities have continued to evolve technically breaking through the limitations of traditional single-frame image analysis and taking the lead in entering the new stage of multi-frame temporal joint analysis. This enables more continuous and accurate understanding of dynamic scenes with perimeter capture distance improved by 50%+ and 482025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text false fire/smoke alarms reduced by 80%+. At the same time the vision large model has further improved its full-scene understanding capability. It now supports accurate classification of more than 100 segmented scenarios and features scene-adaptive algorithm matching which can automatically recommend the optimal algorithm scheme according to the scene. This enables true one-click algorithm deployment greatly simplifying engineering implementation. A deeper breakthrough lies in the universality of scene cognition. Benefiting from its full-scene understanding capability the large model has freed itself from the reliance on complex rules in traditional vision solutions. Take illegal parking detection as an example. Traditional algorithms require manual pre-definition of no-parking zones whereas the vision large model can automatically identify parking areas in road scenes based on contextual understanding enabling the function without rule configuration.Multimodal large model (M series): The Company advances multimodal capability enhancement shifts requirements from personalized to general-purpose shortens development cycles and enables new image-and-text prompting features. Combined with zero-shot learning technology the model rapidly completes algorithm performance optimization and achieves a shift from recognition to understanding. Breakthrough in visual cognition capabilities: using video sequences to recognize 12 types of complex behaviors such as fighting carrying weapons and pulling banners etc. With enhanced multimodal capabilities the application value of multimodal data collaboration has been expanded. A self-developed VL model has been added for functions including text-to-image search and partial image search. While maintaining its general capabilities the model has enhanced industry- specific attributes enabling accurate detection of scenarios such as pickup trucks carrying passengers bus overloading and distracted driving.Large language models (L series): By deeply integrating industry knowledge bases and data it has greatly improved cognitive depth and semantic understanding accuracy in professional fields realizing the transformation from human-machine interaction to human-machine collaboration. It not only excels at high-level cognitive tasks such as knowledge-enhanced retrieval and complex intent understanding but also enables new workflow automation. Through chain-of-thought reasoning it decomposes tasks schedules intelligently executes autonomously and finally delivers actionable results. 2. Integration of large models with industry agents to accelerate technological evolution and breakthroughs Shifting from individual intelligence to swarm intelligence achieving a paradigm breakthrough in multi- agent collaboration. The key to multi-agent collaboration lies in the evolution of agents from independent tools into a dynamically orchestrated autonomously cooperating expert team. By simulating social division of labor multiple agents form temporary task-oriented teams to realize distributed perception parallel decision-making and result negotiation. This overcomes the limitations 492025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text of single models in complex scenarios such as difficulty in task decomposition professional constraints and parallel bottlenecks. It drives AI from processing discrete instructions to managing planar and systemic engineering providing a core path for building large-scale self-organizing digital operation systems.From private interfaces to universal protocols the paradigm of agent connectivity is being redefined. The mode of interaction between agents external tools and data sources has shifted from customized tightly coupled private integration to loosely coupled declarative connections based on standardized protocols. This upgrade essentially establishes a universal socket standard for the agent ecosystem. It uniformly encapsulates heterogeneous back-end systems (databases business software IoT devices etc.) into securely callable standardized services significantly reducing integration complexity and security risks while breaking down data silos and tool silos. Its core value lies in the efficient decoupling of the agent cognition layer from the industry execution layer allowing agents to uniformly invoke various capabilities without concerning themselves with underlying implementation thereby accelerating deployment and large-scale application.From cognitive suggestions to autonomous execution long-term memory and evolving action capabilities. The role of agents has evolved from providing analysis and recommendations to digital employees with long-term memory state retention and the ability to proactively modify the external environment marking a critical leap from thinking to acting. Through externalized memory mechanisms agents can learn user preferences and accumulate task context across individual sessions. Combined with secure control over environments such as operating systems and application software they translate internal decisions into orderly external actions completing a full closed loop from perception planning and decision-making to execution. Its core value is to equip agents with unified cognitive and actionable digital productivity freeing people and enterprises from repetitive rule-based digital operations. It enables independent management and around-the-clock execution of complex tasks ultimately delivering on the value creation of artificial intelligence. 3. Building Differentiated Competitive Advantages for Large Models Centered on vision and multimodality we continuously enhance visual parsing and text-image understanding capabilities. Guided by the "small but sophisticated" design philosophy the Company has restructured the vision model architecture. While maintaining accuracy in visual tasks such as object detection classification and scene understanding the Company has significantly lowered the model's hardware computing requirements endowing the vision large model with high- precision low-latency real-time perception capabilities. Our model breaks through the limitation of traditional vision that can only "see images" and uses deep text-image fusion technology to equip vision with language-like comprehension. It can not only recognize more complex behaviors but also perform logical reasoning based on context resulting in more accurate text-image retrieval and achieving a qualitative leap from simple visual perception to multimodal logical reasoning. 502025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text We strengthen industry-specific attributes and accelerate the application and implementation of intelligent agents. While fully benchmarking the generalization capabilities of mainstream general-purpose models the Company reshapes the extreme precision of industry agents in vertical fields. In terms of architecture advanced Mixture of Experts (MoE) models and dynamic sparse activation technology are adopted namely an on-demand invocation mechanism. The model itself possesses ultra-large-scale knowledge reserves yet only a tiny number of key parameters are precisely invoked when processing tasks significantly reducing inference costs. With respect to industry cognition by learning extensive industry knowledge the model has evolved from simply understanding instructions to comprehending business workflows. It can accurately decompose complex industry terminology and business logic and perform structured extraction and correlation of key information thereby achieving a high-value automation closed loop in real and complex industry scenarios.We develop a domestic computing framework to improve the deployment efficiency of large models on domestic chips. Our self-developed "chip-operator-framework-model" computing framework establishes a unified model compilation toolchain which is compatible with mainstream large-model technical architectures. This improves computing efficiency of large models on domestic hardware shortens product adaptation cycles and accelerates the rapid productization of the V/M/L series large models. 3.2.3.1.2 Infra Capability Development In 2025 domestic large models are flourishing with new models emerging continuously; to accelerate industry deployment of large models the company has completed the construction of an Infra infrastructure system covering all scenarios for large models fully covering the entire chain of large model training inference deployment and adaptation and strongly supporting the localization industrialization and productization of large model application deployments. 1. Large Model Training Infra Capability Development For training to meet the demands for efficient large model training and rapid iteration the Company has built a full-stack training infrastructure. On the one hand it has established large-scale computing power clusters constructing large-scale highly available training clusters based on heterogeneous computing hardware supporting domestic computing power to ensure autonomous secure stable and reliable supply. On the other hand it has developed an elastic distributed training framework that supports multi-node elastic scheduling and accelerated distributed training effectively improving training efficiency and resource utilization. Meanwhile it has built an integrated training and inference fine-tuning capability that enables efficient and secure on-site fine-tuning at customer premises 512025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text realizing rapid adaptation of the model to industry scenarios and business requirements while ensuring data remains within the local domain. 2. Building Infra Capabilities for Large Model Inference For inference as large model capabilities improve the demand for computing power and memory also increases correspondingly. Resource constraints become particularly prominent when deploying large models on edge chips to enhance performance and expand functions. To address this issue we reduce the number of model parameters through model distillation lower computing overhead with mixed-precision quantization and further compress resource usage using structured pruning and sparsification while maintaining controllable accuracy. This enables large models to cover front-end devices with computing power above 2T and continuously drives intelligence deployment on lower- computing-power devices.High-end chip production capacity is constrained and the pace at which industry inference chips evolve struggles to keep up with the rapid development of large-scale models. Native large-scale model deployments face the problem of relatively low chip compute utilization. To improve computing utilization we select affinity operators and customize the ViT structure based on the characteristics of mass-produced chips effectively resolving mismatches between model architecture and chips. After deploying the self-developed model chip compute utilization increased by 30% while maintaining equivalent algorithm performance which improves product competitiveness.To provide customers with cost-effective domestic inference solutions the Company has focused on domestic chip capabilities by developing operator fusion and equivalent operators integrating multiple parallel strategies and leveraging acceleration technologies such as prefix caching and multi-level caching achieving deep adaptation to industry-standard domestic high-computing-power chips. After deployment optimization the inference performance of large models has been improved by 10% compared with the native performance. At the same time the high-performance adaptation cycle for new models has been shortened by 50% compared with the original chip platform gaining a first- mover advantage for the productization and commercial deployment of large models. 3.2.3.1.3 Engineering Capability Development At present with the advancement of large model applications the application form of AI products is gradually shifting from out-of-the-box standardized product delivery to continuous service and co- creation of value. Customer needs are no longer limited to rigid AI deployment in fixed scenarios but are evolving toward flexible AI adaptable to complex and volatile environments which requires precise technical alignment with customers' dynamic business demands.Unlike Internet-based large model companies which serve a wide range of industries developers and consumers with standardized and scalable demands that emphasize general capabilities with 522025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text minimal personalized customization the Company operates in highly industry-specific and complex business scenarios. End-users in these sectors demand strict algorithm performance with zero tolerance for errors in certain applications. Meanwhile demands are widely distributed across long- tail scenarios with scarce and hard-to-obtain training data. Additionally for many industry users the digital and intelligent transformation itself is highly exploratory. It is often difficult to clearly define scenario requirements at the outset and there is often a process of building testing and adjusting simultaneously which places high demands on the response speed to new needs and timely launch.Therefore the traditional small-model development model and product-level delivery process can no longer meet the new requirements of industry development.To address this while continuously innovating in large-model technology the Company focuses on building end-to-end engineering capabilities promoting the transformation of algorithm models into stable reliable batch-deliverable products and services with commercial value. By pursuing extreme performance metrics and excellent user experience we achieve an efficient connection from technological breakthroughs to commercial outcomes.AI engineering refers to the full-process engineering practice of transforming AI algorithms from conceptual requirements into implementable reusable and maintainable practical products. It serves as the core bridge linking AI technologies with customers' business value and is the key to achieving high-quality deployment of large model solutions. Therefore the Company has built end-to-end systematic engineering capabilities in the following four aspects.Developing a standardized and automated toolchain. As the core carrier of AI engineering the Company has established a unified automated full-link toolchain with standardized tools for model training deployment and iteration enabling one-click training and one-click deployment. This reduces manual intervention and lowers operational barriers.Enhancing algorithm engineering capabilities. The Company employs model lightweight technologies to enable rapid deployment and stable operation of models on low-computing-power devices. It has established a mechanism for algorithm reuse and rapid iteration by accumulating general algorithms. For different business scenarios only parameter fine-tuning and a small number 532025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text of supplementary samples are needed to achieve rapid adaptation thus shortening the algorithm development and delivery cycle.Improving standardized deployment capabilities. The Company delivers proven standardized deployment solutions and documents tailored to different scenarios ensuring consistency and accuracy in deployment methods. By automating and simplifying the deployment process to one-click operation on-site debugging time is reduced and delivery efficiency is significantly improved.Building on-site large-model fine-tuning capabilities. Leveraging zero-shot detection zero-shot classification VL large models and other algorithms the Company performs incremental training and fine-tuning with a small amount of on-site data. Through simultaneous inference and training model performance improves steadily realizing an integrated training-inference system that efficiently and conveniently meets user performance requirements in a timely manner. 3.2.3.1.4 Industry Deepening The Company remains committed to being driven by industry demands continuously advancing large model technology iteration and innovation strengthening its technological competitiveness and deepening industry applications. First through large model technology upgrades we have achieved a leap from precise to extreme performance in visual analysis tasks delivering an exceptional product experience for users. Second by integrating multimodality we have realized technological breakthroughs in image-text retrieval visual question answering behavior recognition and other fields continuously exploring new businesses and application scenarios across industries. Finally we aggregate large model capabilities around industry demands continuously enhance industry-specific features develop robust industry large models and accelerate the application of intelligent agents in various sectors.During this reporting period the Company upgraded its large model technologies in public security transportation urban governance electric power culture education healthcare general parks and other industries continuously improving and strengthening product performance in terms of functional richness effectiveness and cost.The large model for the public security industry reshapes public security operations from perception to cognition and from understanding to execution. It supports complex behavior recognition and early warning user-defined information retrieval and natural language interactive intelligent agents. The complex behavior recognition and early warning large model understands subtle movements related objects and surrounding environmental information to realize complex behavior identification. It can accurately recognize 12 types of abnormal behaviors such as fighting weapon carrying and banner holding with an accuracy improvement of more than 20% compared with small models. User-defined information retrieval based on full-scenario information extraction and zero-shot learning supports advanced and partial image search functions including text-to-image 542025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text text-to-video and text-to-behavior retrieval. It enables fast user-customized information querying greatly improving efficiency compared with the traditional manual review of massive video footage.Through on-site data collection and annotation rapid algorithm optimization and new function development are achieved improving development efficiency by 30% compared with traditional algorithm customization. The natural language interactive agent features strong understanding accurate retrieval and fast adjustment capabilities reshaping software form and interaction modes. It supports data retrieval knowledge Q&A task orchestration and other functions via natural language commands.The large model for the transportation industry integrates the capabilities of three VML large models strengthens vertical industry attributes adapts to more application scenarios and has been fully deployed in traffic management and transportation sectors. In the traffic management sector we launched large model functions including text-based vehicle image search partial vehicle image search text-based deployment control and event early warning. These support the retrieval and early warning of low-probability events such as damaged traffic facilities motorcycle wheelies and trucks carrying dangerous goods. The system supports user-defined early warning categories via text such as overloaded trucks without tarpaulin covers and pickup trucks carrying passengers illegally with an early warning accuracy rate of over 95% efficiently meeting users' personalized requirements. In the transportation sector focusing on expressways national and provincial highways the Company has continuously upgraded its traffic vision large model and multimodal large model. Event detection rate under severe weather such as rain snow and fog has increased by 20% and nighttime event detection in non?light or low?light environments has been significantly enhanced. The overall accuracy of all?weather event detection under severe weather and nighttime conditions reaches above 95% with ultra?low latency and second-level response for event alerts. To address user pain points the collaboration of large and small models has reduced invalid alarms by 70% greatly easing the alarm handling workload for frontline personnel. Regarding the generalization capability of large models across industries new functions such as road disaster and road defect detection have been added expanding businesses including hidden danger detection and road maintenance inspection.The large model for the urban governance industry centered on "accurate identification and intelligent upgrading" deeply empowers refined urban management and helps regions improve their AI governance capabilities. In 2025 the model was upgraded and iterated. On the one hand more than 10 high-frequency essential functions were added covering core areas such as city appearance order public facilities and environmental safety. Overall performance was improved by 10% and operating efficiency better meets the real?time processing demands of complex urban scenarios. On the other hand algorithm accuracy was optimized to address business pain points. The average accuracy of commonly used functions such as out?of?store operation and mobile vendors increased by more than 5% effectively reducing manual review costs. For challenging scenarios the accuracy 552025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text of five functions including manhole cover missing detection and tree collapse detection has improved by more than 7% providing stronger support for urban appearance management and public facility maintenance. In terms of scenario coverage the model has been adapted to more than 20 mainstream scenarios such as urban streets residential communities water banks construction sites municipal squares and subway entrances and can flexibly handle environmental differences across various scenes. Meanwhile the point-location governance algorithm continues to be expanded and optimized. It now supports more than 100 refined point-location scenarios such as dead corners in old communities core sections of commercial districts urban-rural fringe areas and other special locations. Equipped with an intelligent recommendation engine it can automatically match the optimal functional configuration scheme based on the scenario characteristics and management requirements of each point-location reducing manual debugging costs.The large model for the electric power industry focuses on the intelligent needs of energy scenarios. Through continuous iteration and upgrading it has built a full-link AI capability foundation to provide precise support for core links such as power generation transmission substation distribution and new energy power stations. The large model for the power industry continuously iterates and upgrades around the full?chain needs of power production and currently supports recognition of more than 80 core functions including meter readings engineering truck recognition and photovoltaic defect detection enabling one?stop support for multidimensional business needs such as power operation and maintenance safety supervision and energy efficiency management; to overcome recognition bottlenecks in complex environments the large model uses synthetic data augmentation to generate highly realistic simulated data for supplementary training and combined with multimodal algorithmic innovations substantially improves generalization in complex environments with overall recognition average accuracy increasing by more than 5% and accuracy for key tasks such as meter readings and smoke and fire monitoring surpassing 95%. At the hardware adaptation layer the large model has completed full-scenario deployment compatibility optimization and is fully compatible with a variety of domestic AI chips used in the central cloud edge nodes and front-end cameras. In practical application it has been successfully deployed in power projects in Guizhou Qinghai and other regions facilitating the industry's transformation from manual inspection- dominated mode to intelligent operation and maintenance-dominated mode and comprehensively improving the intelligent operation and maintenance level of the power industry.The large model for the culture education and healthcare industry targets public service sectors including education culture tourism and medical health. By integrating multimodal perception and semantic understanding technologies multiple large models have been launched to enhance the intelligent level of safety management and governance. The multimodal fusion intelligent recognition large model integrates visual semantic and other multimodal perception technologies to achieve precise responses to safety and governance requirements in diverse scenarios. In campus security 562025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text scenarios functions such as knife carrying detection fighting identification and solo loitering behavior analysis are realized with the average recognition accuracy improved by more than 20% serving more than 40 university projects. In scenic area security scenarios over 20 types of behavior detection are implemented including passenger flow monitoring drowning risks illegal fishing mobile vendors and queue congestion which have been successfully applied to more than 10 well-known scenic spot projects. In medical security scenarios the large model enables potential behavior recognition in key scenarios. The text-based search scheme covers targets such as pedestrians non- motor vehicles and motor vehicles reducing multi-model deployment and O&M costs by 80%. It has been successfully applied to more than 10 projects in Beijing Shanghai and other regions.The large model for the general park industry with "intelligent analysis efficient interaction and dynamic decision-making" at its core deeply drives the upgrading of park management from "passive response" to "active service". The model relies on full-element intelligent analysis technology to perform multi-dimensional feature extraction and correlation analysis on core elements such as people vehicles and objects in the park providing data support for subsequent intelligent services and scheduling. In terms of interactive experience natural language interaction is realized through text search greatly improving the efficiency of vehicle personnel and object search. For scenarios with dense crowds and complex environments in the park the model optimizes the object recognition algorithm boosting overall recognition efficiency by 20% and enabling precise target positioning under blurred conditions. Even with imprecise and fragmented descriptions it achieves accurate positioning with an accuracy rate of over 95% through multi-dimensional data correlation and intelligent reasoning. At the operational scheduling level the model is equipped with an intelligent assistant that allows managers to issue scheduling commands via natural language. The large-model intelligent assistant executes commands to complete park scheduling significantly improving traffic efficiency and effectively alleviating congestion. The model deeply integrates digital twin technology to build a dynamically evolving "digital mirror" of the park. It converts real-time data on pedestrian flow vehicle flow equipment operation and energy consumption into 3D visual scenarios enabling managers to intuitively monitor park operations and support data-driven decision-making. 3.2.3.2 View Middle Platform Centering on the view middle platform the Company has built a visual intelligence capability system for the implementation of large models and industry agents. With a unified visual perception and analysis foundation as its core it integrates the full chain of data governance algorithm empowerment model training intelligent inference and business orchestration forming a closed-loop mechanism from capability generation and effect verification to continuous evolution. This provides a reusable and extensible technical foundation for business intelligence. 572025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text At the data and perception layer the view middle platform integrates cross-scenario and cross- terminal visual data resources. Through standardized access cleaning and feature extraction a unified data asset pool is formed. It deeply fuses video signals with radar IoT sensing and other multi-dimensional data to build comprehensive perception capabilities for people vehicles structured objects behavioral events and environmental conditions improving recognition accuracy and understanding depth in complex scenarios.At the algorithm and training layer the platform relies on the algorithm warehouse and training center to accumulate standardized algorithm capabilities supporting modular encapsulation versioned management and rapid invocation to meet the demands of multimodal perception and complex scenario analysis. Meanwhile the model is continuously iterated through zero-shot generation built- in training of small models fine-tuning of large models and other methods. Business operation feedback is integrated into the optimization process enabling the model to become increasingly accurate and stable in performance with continuous use.At the inference and orchestration layer the view middle platform supports classified and graded scheduling as well as cross-business collaboration for tasks such as people vehicles structured objects and behavioral events through a unified task scheduling and multi-algorithm orchestration platform. A secondary verification mechanism is introduced to ensure stable and reliable results. Well- trained models can perform efficient inference in diverse environments including devices edge and cloud supporting low-latency and high-concurrency processing enabling visual capabilities to stably serve complex business processes.At the full-stack support and ecosystem layer the platform is built on an integrated computing power scheduling engine compatible with heterogeneous chips and diverse resources. It improves resource utilization through computing power pooling topology awareness affinity reuse and load balancing and enables device-edge-cloud collaboration via unified southbound protocols and northbound interfaces. For ecological cooperation the view middle platform provides capabilities including unified authorization for the algorithm warehouse third-party algorithm integration version governance and delisting control establishing a manageable controllable and sustainably evolvable trusted algorithm ecosystem.Through the above systematic construction the view middle platform achieves efficient collaboration among data algorithms computing power and services. It drives visual intelligence capabilities from standalone functions to platform-based provision supporting customers in the rapid implementation and large-scale replication of solutions in scenarios such as AIoT. This continuously improves business efficiency operational quality and the level of intelligence. 582025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3.2.3.3 Digital-Intelligence Middle Platform Data elements have become the core engine driving social and economic development. However the current industrial chain of AIoT data elements with video as the core still faces challenges such as insufficient coordination between upstream midstream and downstream and hindered value release.As a technology service provider deeply rooted in the industry the Company positions itself as a data resource provider assetization practitioner and commercialization enabler. It works with ecological partners to break through industry bottlenecks and help build a prosperous data element market.Around the data middle platform the company has built an integrated capability system for data elements centered on view data making data manageable usable operable and able to empower AI: it unifies the aggregation standardized governance and deep integration of multi?source heterogeneous data carries out assetization operations builds industry?scenario?oriented feature library and knowledge base forms reusable data assets and supports business digitalization and intelligent upgrading. 1. Data aggregation: As a provider of data resources in the upstream industrial chain the Company relies on multi-dimensional sensing networks and diverse connection technologies to address practical challenges such as complex sensing scenarios heterogeneous device protocols and cross- network interconnection of massive terminals realizing efficient collection and aggregation of full- domain data. Through device-edge-cloud-network collaboration the Company improves access efficiency and stability in widely distributed scenarios and continuously injects discrete and heterogeneous IoT and business data into the unified infrastructure. Meanwhile multi-protocol access and unified device modeling are implemented. Visual data and IoT data are classified and stored in the data lake with cross-source alignment completed based on a unified timeline and primary key.The aggregation link is observable and auditable so as to build a massive real-time and multi-source data resource pool consolidate the scale foundation and supply capacity of data elements and provide high-quality raw materials for subsequent governance integration and services. 2、Data governance: As a practitioner of data assetization in the midstream industrial chain the Company integrates data governance with intelligent computing. In response to the intelligent demands of long-tail scenarios and bottlenecks in heterogeneous data processing it promotes the transformation of raw data resources into high-value data assets bridging the value gap from resources to assets. From an engineering perspective layered management and lifecycle management are carried out based on lakehouses or distributed storage. Quality rules are embedded in the batch-stream processing links from the source-adjacent layer to the service layer. Metadata and field-level lineage are fully traceable master data codes are standardized and classified desensitization of sensitive data is integrated with access auditing. 592025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3. Data fusion: The Company emphasizes the deep integration of visual intelligence and data intelligence. Based on uniformly governed high-quality data it leverages intelligent algorithms and computing scheduling to establish semantic and spatiotemporal correlations between video views and structured/semi-structured business data unlocking the superimposed value of cross-domain and cross-modal data. Supported by multi-modal entity alignment and unified object identification unified standards for offline and near-line features as well as their connection with training and inference pipelines and incremental construction and multi-hop reasoning of knowledge graphs vector search and retrieval-augmented generation are applied on demand to support traceable Q&A and analysis. 4. Data services: As an enabler of data commercialization in the downstream industrial chain the Company leverages two major platforms namely Urban Tianji Platform and the Enterprise Tianyan Platform to drive the transformation of data assets into orderable combinable and measurable data capabilities and data products. To advance the modernization of urban governance and the digital and intelligent transformation of enterprises the Company breaks down departmental barriers and system silos. On the premise of safety and compliance it promotes the scenario-based application and value release of data elements across all industries helping customers achieve business innovation process optimization and operational efficiency improvement.The above four dimensions are interconnected: aggregation addresses availability completeness and timeliness; governance addresses accuracy clarity and compliance; integration addresses understanding reasoning capability and AI enablement; and service addresses whether it can be put to use and whether value can be realized in a closed loop. Through an integrated data middle platform the Company connects the upstream and downstream of the AIoT data element industrial chain accelerating the transformation of element value. 3.2.4 Intelligent Computing Infrastructure To support large-scale intelligent applications the Company has built an intelligent computing infrastructure centered on diversified heterogeneous computing power and multi-dimensional data storage. Leveraging the Company's advantages in self-developed hardware-software collaboration and integrating capabilities such as intelligent network interconnection and full-domain security and trustworthiness it provides high-performance low-latency secure and reliable computing support across multiple sectors facilitating efficient urban governance and the digital-intelligent upgrading of enterprises.Focusing on data intelligence and industry applications in AIoT scenarios the Company has comprehensively upgraded its core infrastructure products mainly covering edge computing central computing cloud computing NVR EVS and other product lines. By continuously expanding industry- specific algorithms improving product intelligence and enhancing data storage and circulation capabilities the Company promotes business implementation across various industries. 602025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3.2.4.1 Device-Edge-Cloud Integrated Computing Power Scheduling With the application and implementation of intelligent technologies digital technologies and the real economy are becoming increasingly integrated and intelligence has evolved into a core production tool. Coupled with the gradual deployment of large model technologies intelligent computing has also transitioned from traditional visual intelligence toward a multimodal direction. By applying large models in the intelligent sector the Company has achieved breakthroughs in three areas: building a computing power foundation establishing an intelligent computing architecture and empowering the digital-intelligence middle platform. Through deployment methods such as virtualization and containerization the platform rapidly achieves full compatibility of end-edge-cloud high-performance computing resources and supports various CPUs GPUs and NPUs. It builds a globally integrated elastically scalable intelligent resource pool and achieves centralized operation and intelligent orchestration of compute resources which lays a solid foundation for customers to build flexible scalable intelligent systems and promotes industrial intelligent upgrading. 1. Building the computing power foundation: With the increasing maturity of the domestic open- source ecosystem the Company has completed the domestic layout of its full-link products covering multi-dimensional computing power scenarios including cloud edge and devices. Based on the Company's solid technological accumulation heterogeneous computing power is pooled (including image computing power AI computing power general computing power and dedicated computing power) to enable on-demand scheduling and flexible orchestration. Jointly engaging in in-depth technological innovation with industrial chain partners the Company has achieved breakthroughs in key fields such as chip virtualization partitioning and professional comparison acceleration providing underlying computing support for full-link domestic substitution. To meet customers' stringent requirements for algorithm accuracy the Company continuously optimizes its cross-hardware model quantization solution achieves multi-platform accuracy alignment enables efficient cloud-edge- device computing power collaboration and maximizes the value of computing resources. 2. Building the intelligent computing architecture: To address the demands of diverse scenarios the Company integrates three core capabilities—professional algorithms open ecosystem and large models—to establish a flexibly adaptable intelligent computing architecture system: (1) Multi-agent architecture: Leveraging large model technology multiple business agents are developed. Driven by algorithm-defined logic to enable scenario-specific intelligent applications it deeply integrates large and small model technologies systematically forming a multi-scenario large model product system. (2) Training architecture: Algorithm training services serve as the foundational base. The architecture supports both scenario-based fine-tuning of multimodal large models and incremental training requirements of traditional algorithms. Through deep integration of the full-stack product portfolio 612025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text across cloud edge and device tiers the platform enables flexible loading and rapid deployment of open algorithms. After models are output from training they are seamlessly loaded into inference products. Business data and performance feedback generated during the inference process are fed back into the training pipeline which drives continuous algorithm iteration and optimization precisely addresses the requirements of diverse intelligent business scenarios and builds a self-reinforcing training-inference flywheel effect. (3) Video cloud computing architecture: relying on an intelligent scheduling mechanism for pooled compute resources it precisely matches tasks to compute resources to achieve efficient task scheduling; through the algorithm warehouse it implements unified collaborative scheduling of compute resources across the end-edge-cloud network while also supporting flexible integration of third-party algorithms building a computing system with high concurrency high throughput and high energy efficiency and continuously providing solid technical support for an open win?win AI services ecosystem to help AI applications be efficiently deployed and realize value across multiple scenarios. (4) Embedded computing architecture: Deepen edge intelligence and build an embedded computing architecture that co-optimizes algorithms and hardware. Through model lightweighting operator acceleration and refined power consumption management we achieve high-performance local inference under resource-constrained conditions reduce reliance on the cloud and enhance the reliability and environmental adaptability of edge nodes. 3. Empowering the digital intelligence middle platform: In order to maximize the advantages of the Company's computing power and architecture the digital intelligence middle platform will focus on the capability level provide intelligent services for the upper-level app platform systematically orchestrate central computing power and edge computing resources connect multiple capabilities such as professional algorithms training algorithms large model algorithms and data computing realize the collaboration of large and small models enhance the intelligent application of algorithms assist in the incubation of emerging intelligent businesses and provide an intelligent foundation for ecological partners. 3.2.4.2 Diverse Heterogeneous Computing Power Clusters 3.2.4.2.1 Edge Computing 622025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text The Company continues to explore business specifications across multiple sectors and its edge computing products feature computing power characterized by diversification scenario-orientation and high efficiency. The computing power of edge devices has increased from several TOPS in the early stage to dozens of TOPS alongside continuous improvement in the computing power-to-power consumption ratio. By adopting modular elastic expansion the Company has developed a diverse portfolio of edge computing products with computing power ranging from dozens of TOPS to hundreds of TOPS. Combined with technologies such as edge node clustering and open computing power scheduling it enables computing power collaboration and dynamic allocation among devices adapting to a wide range of industry scenarios.Edge computing supports computing capabilities including concurrent inference of multiple models hybrid operation of large and small models and intelligent analysis of mixed streams. Combined with business capabilities such as algorithm orchestration false alarm judgment and algorithm paradigms it promotes the in-depth integration of edge computing into industries addressing issues in AI applications including massive data processing real-time response and data security thereby enabling intelligent management and services. We exert efforts on both edge intelligence hardware and software. On the hardware side we optimize product structure and enhance performance; on the software side we strengthen core capabilities to quickly build intelligent solutions aligned with business logic greatly lowering the threshold for the deployment and application of edge intelligence.During the reporting period the Company released the Dahua Shensuan large-model all-in-one device series products. Integrating storage computing and management capabilities the product is built on reliable storage security monitoring and efficient querying while continuously enhancing functions such as image recognition video analysis and behavior prediction. Its computing power development has shifted from "pursuing high numerical values" to "precisely matching scenario requirements". Through hardware iteration algorithm optimization and scenario-based design edge computing power is evolving toward higher efficiency greater flexibility and better alignment with industry demands. The algorithm portfolio covers intelligent applications across segmented industries including energy security power coal mines emergency management financial compliance natural resources and behavioral analysis. It supports free combination of algorithms for different industries and delivers precise and efficient intelligent monitoring solutions through functions such as multi- intelligent parallel processing intelligent patrol and tidal intelligence. Meanwhile relying on large model technology through model compression knowledge distillation and hardware instruction set optimization the lightweight multimodal large model with tens of billions of parameters can run efficiently on edge devices. It achieves features such as zero-shot scenario generalization and continuous accuracy improvement quickly responds to fragmented needs of edge scenarios and supports faster and more accurate intelligent decision-making. Additionally this product can adapt to 632025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text various edge application environments enabling edge intelligence transformation computing power supplementation and flexible deployment further enhancing the scalability of intelligent businesses. 3.2.4.2.2 Central Computing To accurately seize the opportunities of market digital transformation the Company relies on its mature system architecture to build a unified and open intelligent architecture for central computing.By strengthening the construction of the capability layer of the digital intelligence middle platform upgrading the visual intelligence engine and connecting multiple capabilities such as professional algorithms training algorithms large-model algorithms and data computing we consolidate the intelligent foundation and support the incubation of intelligent businesses and collaborative innovation with ecological partners.Centered on actual business needs the company comprehensively upgraded two core capability areas: in the AIoT data intelligence domain it focused on massive data processing integrating multi- modal algorithms feature-indexing technology and domestic hardware adaptation to enhance high- precision perception analysis and large-scale data retrieval capabilities empowering the deployment of city-level big data applications; in the emerging long-tail intelligence domain it adopted the "algorithm training + algorithm warehouse + rules" model supporting cloud-edge-end collaborative scheduling and efficient linkage between large and small models quickly generating and flexibly deploying adapted algorithms and providing ecosystem partners with an extensible intelligent foundation through standardized interfaces to accelerate business innovation incubation.Drawing on the capabilities of Dahua large-model the Company has continuously advanced the deployment of industry-specific large-model products focusing on upgrading core products such as the Sky series all-in-one devices and the DeepSeek intelligent all-in-one devices. The Sky series all- in-one devices focus on three core capabilities: graph-data fusion computing scenario-based algorithm definition and on-site fine-tuning of large models. We deepen software-hardware coordination and advance the lightweight and vertical development of large models through technologies including domain knowledge distillation and model quantization. With an integrated design of computing power algorithms applications algorithm warehouse and training these products enable collaborative operation of large and small models as well as dynamic computing power optimization and are designed to delivers cost-effective and easily deployable intelligent 642025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text solutions that accurately map business scenarios build vertical-domain intelligent agents and fully empower the intelligent upgrading of industries such as energy education culture and healthcare.The DeepSeek intelligent all-in-one device series adopts a three-layer integrated architecture of "hardware foundation + intelligent engine + industry suites" connecting the entire chain from computing power and models to applications. With a design that reshapes the enterprise AI deployment experience through "hardware-software synergy out-of-the-box readiness" it deeply integrates a self-developed intelligent framework and chip capabilities balancing high performance security and trustworthiness and green low-carbon operation. It has deeply served finance government healthcare education and other sectors providing integrated intelligent solutions that advance AI capabilities from "technically usable" to "business-useful" solidifying an intelligent foundation for ecosystem partners and jointly building an open collaborative industry intelligence ecosystem. 3.2.4.2.3 Cloud Computing In the process of transformation from traditional data centers to the cloud we face many challenges such as chimney-style duplicate construction and long construction cycles. In order to improve resource utilization simplify management and O&M and ensure safe and stable business operation the Company has continuously optimized and upgraded its cloud computing solutions to integrate underlying physical resources provide most inclusive rich cloud services such as computing storage network and PaaS and manage cloud infrastructure throughout its full lifecycle becoming a powerful engine for customers' digital transformation. 1. Cloud Platform The Company provides a new generation of efficient and agile cloud-native computing foundation for diverse computing scenarios of AIoT. Leveraging technologies including Kubernetes containers application orchestration and elastic scheduling it realizes resource pooling of basic computing resources and hybrid deployment of multiple loads such as big data/intelligent analysis/application 652025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text software meeting the needs of unified management efficient resource utilization flexible service deployment and reliable disaster recovery. Based on a deep understanding of cloud native and video industry business we have launched a series of cloud products such as cloud management platform container cloud platform hyper-convergence and universal storage. Covering high medium and low-end product forms these solutions enable seamless elastic scaling from single devices to large- scale clusters support the integration of domestic computing power and domestic operating systems and accommodate mixed-load scenarios across multiple chips and systems in a single-cloud environment. By delivering users with more inclusive cloud solutions the Company assists government and enterprise customers in building a new generation of digital infrastructure. 2. Big Data Storage and Computing Components Over the past decade the Company has been facing the real-time access storage and retrieval of massive perception data as well as the processing needs of complex scenarios. It has continuously accumulated a wealth of practical experience and has made long-term investments in the fields of software and hardware integration dynamic fault tolerance index optimization reliability distributed technology and data security. It can provide customers with centralized databases distributed database services Hadoop and other storage components with industry-specific capabilities automatically complete the access of IoT perception device data automatically and evenly distribute data and provide efficient retrieval services achieving a stable reliable and out-of-the-box experience.On the other hand in the face of diversified video IoT data computing scenarios the Company has continuously optimized the kernels of computing components such as Spark and Flink. Targeting the characteristics of graph-data fusion computing it has significantly improved offline and real-time computing performance and built a unified hot and cold data analysis and query framework which shields differences among multiple storage and computing components is application-friendly and adapts to the extensive and complex data computing demands of the DATA+AI era. This framework greatly reduces the development O&M and implementation costs for business platforms to integrate storage and computing components. It has been widely adopted by government and enterprise customers at home and abroad continuously safeguarding users' data assets. 662025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3.2.4.3 Multi-Dimensional Data Storage 1. Intelligent Storage Products As the IoT informatization process continues to deepen traditional video security business is continuously evolving and expanding and multi-dimensional perception services such as video images audio alarm information sensor data and documents are becoming deeply integrated placing higher demands on the diversity and complexity of data processing and storage. Data storage requirements have entered a new stage characterized by high performance global collaboration intelligent tiering and elasticity and scalability.Multimodality high concurrency and TB-level throughput have become basic requirements for AI training and inference. Edge real-time perception and intelligent analysis have given rise to demands for massive on-premise storage and low-latency processing. Traditional storage architectures struggle to meet the comprehensive demands for capacity latency cost and reliability driving an evolution toward a three-tier collaborative system of lightweight caching at the edge primary aggregation at the domain layer and massive persistence on the cloud so as to accommodate efficient end-to-end data flow and full lifecycle management in the intelligent era. The Company's intelligent storage is supported by a unified hardware foundation and distributed software architecture as its core building a three-tier edge-domain-cloud integrated storage system represented by network video recorders network video servers and cloud storage. This enables hierarchical and classified management of data across the entire domain meeting the diverse and complex requirements of intelligent and IoT sensing applications for storage systems.The Company's intelligent storage products adopt an advanced domestic controller platform in the industry. Relying on core hardware architectures such as single-controller dual-controller and dual- socket designs they break through the capability limits of traditional streaming storage. By integrating 672025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text data redundancy cluster management disaster recovery policies storage encryption and other technologies the products ensure secure and reliable data storage effectively reducing the risks of system anomalies and data loss caused by single-point equipment failures. At the same time the Company combines its self-developed AI deep learning algorithms with Xinghan large-scale AI models technology to promote the integrated convergence of "storage intelligence and management." This supports target detection and rapid data retrieval enables long-term preservation of high-value data and closed-loop edge business and gradually achieves productization industrialization and scaling in large-model storage application areas such as "large-model compression" and "large-model document search" which gives storage products entirely new business value. 2. Cloud Storage The Company's cloud storage facing the coexistence of relational structured and unstructured data has established a unified data model and hierarchical governance mechanism fully supporting efficient aggregation accurate retrieval and compliant retention of multiple data types such as video images and device messages. For multi-source access including business systems and hardware devices we rely on standardized access real-time processing and closed-loop quality verification to continuously improve data integrity consistency and traceability. Supported by a distributed multi- node storage architecture the system achieves cross-regional elastic expansion high-availability disaster recovery and load balancing. On the cloud side centralized governance and cross-domain sharing capabilities are enhanced comprehensively consolidating the enterprise-level data foundation to provide long-term support for industrial intelligent decision-making and value realization. 3.3 Security and Privacy Protection The Company attaches great importance to cyber security and privacy protection establishing a Network and Data Security Committee as the highest decision-making organization to comprehensively plan coordinate and oversee the development and implementation of cyber security efforts from the Company's strategic level. As one of the Company's five major research institutes the Cyber Security Research Institute is an independent organization within the Company for cyber security supervision and capacity building. It focuses on areas such as security engineering capability building key security and privacy technology research and application and security emergency response services. By combining technological innovation with engineering capabilities it ensures the security and reliability of the entire series of products platforms and services. 682025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3.3.1 R&D Process Security Control Adhering to the concept of shift-left security the Company integrates core security activities— including security baselines threat modeling communication matrices open-source software governance static code scanning and security testing—into every phase of the entire R&D process: requirements design development and verification. By accurately identifying and effectively mitigating potential risks at an early stage the Company significantly reduces vulnerability remediation costs and strongly ensures the built-in security capabilities of its products. 1. Establish High-Standard Product Security Benchmarks (1) Security baseline: Convert multi-dimensional security technical requirements including laws and regulations regulatory requirements customer demands and industry standards into mandatory corporate standards and incorporate them into the rigid requirements across the entire product line implementing them as product security capabilities that are designable verifiable and quantifiable. (2) Communication matrix: The Company systematically maps and governs all ports protocols and data exchange paths for the product's internal and external communications strictly follows "least privilege" and "secure by default" design principles to reduce the network attack surface at source and effectively lowers the probability of potential risk exposure. 692025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2. Proactively mitigate security defects and strictly guard against new vulnerabilities. (1) Threat modeling: Adopt a combined analysis approach of "STRIDE+Attack Tree" to systematically identify and eliminate/control security defects in product design blocking potential threat exploitation paths at the source. (2) Static scanning: Using professional SAST tools (see Section 3.3.2) to automatically scan and analyze source code identify potential code security defects and prevent the introduction of security vulnerabilities. 3. Strengthen Security Testing and Control Known Vulnerabilities (1) Open-source control: Establish a full-process management mechanism for onboarding review integration verification and continuous maintenance relying on SCA tools (see Section 3.3.2) to automatically identify hazards in open-source software—such as source compliance license compatibility and known vulnerabilities—and to prevent risks like supply-chain poisoning and cascading vulnerability propagation. (2) Security testing: Use a variety of security testing tools such as DAST IAST antivirus scanning and mobile application security scanning (see section 3.3.2) to conduct in-depth security testing identify and remediate security vulnerabilities. 3.3.2 Security Detection Platform As a one-stop hardware and software security testing hub for R&D process security control the X- NOUS Security Testing Platform integrates a diverse set of security testing tools. It is deeply embedded into all phases of product R&D including coding building testing and pre-release covering core testing carriers such as code components programs firmware and devices providing comprehensive efficient and flexible security testing capabilities for R&D. 702025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 1. Knowledge: The platform relies on core data assets such as rule databases threat intelligence databases and knowledge bases to provide precise matching and knowledge empowerment for upper-layer detection engines supporting the accuracy and timeliness of detection. 2. Engine:Adopts an "ecosystem + in-house R&D" deeply integrated architecture integrates industry- leading security testing technologies such as SCA SAST DAST and IAST and combines AI enablement to build an open extensible engine capability foundation that supports dynamic plug-and- play of testing capabilities and continuous evolution achieves unified access and management of domestic and international heterogeneous tools and provides flexible efficient technical support for full-scenario security testing. (1) Software Composition Analysis (SCA): The platform automatically identifies all direct and indirect dependencies by scanning source code binary files container images dependency management files or runtime environments and constructs a complete and structured SBOM providing organizations with a clear view of software components and enabling effective management of software supply chain risks. (2) Static Application Security Testing (SAST): The platform performs lexical and syntactic analysis on source code binary files or bytecode generates abstract syntax trees or intermediate representations and on this basis constructs control flow graphs and data dependency graphs to analyze execution paths and data transfer processes of programs so as to identify potential security-sensitive points such as user input database queries and file operations. In addition with the aid of AI the platform learns vulnerability patterns from massive code libraries automatically filters false positives and provides remediation suggestions. (3) Interactive Application Security Testing (IAST): The platform uses instrumentation technology (inserting detection logic at key code positions) to deeply track the application execution process and automatically identifies and marks hidden vulnerabilities such as unauthorized access sensitive information disclosure and business logic flaws. (4) Dynamic Application Security Testing (DAST): Perform security assessments of running applications by simulating hacker attacks comprehensively carry out Detection of the application's public interfaces inject malicious test vectors into all accessible input points and analyze application response behavior in real time to identify publicly known vulnerabilities. 3. Services and orchestration: The platform provides flexible delivery forms including plug-ins web consoles APIs and offline tools to build a three-dimensional testing system covering the entire R&D process from coding building and testing to pre-release. Through seamless integration with CI/CD pipelines it enables agile checkpoints featuring "testing upon submission" helping teams quickly identify and fix issues early in development. Relying on a visual workflow engine it supports flexible customization and orchestration of testing processes in complex scenarios and establishes an automated closed-loop management mechanism for "discovery–remediation–verification". This drives 712025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text continuous optimization of security strategies and forms an accumulative iterative improvement cycle realizing the transformation from single-point tool scanning to full-link in-depth detection. It ensures that security activities operate efficiently and are effectively implemented throughout the R&D process. 3.3.3 Key Security Technologies The Company adheres to the core principles of Security by Design Security by Default Privacy by Design and Privacy by Default and is committed to embedding security and privacy design principles into its operations. It has been deeply engaged in cybersecurity and privacy protection technologies continuously investing in key security technologies for AIoT and actively pursuing technological innovation. The Company strives to build a smarter and more reliable security protection system providing users with solid and comprehensive security and privacy safeguards. 1. Data security: The Company has always treated data security as the core of AIoT product security. By establishing a security protection system covering the entire data lifecycle — including collection transmission storage usage sharing display copying and deletion it systematically safeguards data confidentiality integrity and availability. During the reporting period the company launched a classified-evaluation security solution with lightweight deployment and retrofit adaptation capabilities achieving end-to-end Encryption protection for audio?video access control and other data and supporting source Encryption direct storage in encrypted form secret keys in encrypted form two?factor authentication national cryptographic?standard SSL & mutual identity authentication and other strong security capabilities to ensure full?chain trustworthiness and controllability of audio?video data. At the same time the Company has integrated technologies such as searchable encryption and transparent encryption; while ensuring the secure storage of structured data the integration solution supports fuzzy retrieval and access to data in encrypted form achieving a coordinated balance between secure data storage and scenario-based user applications. 2. Privacy protection: The Company attaches great importance to the protection of users' personal data privacy. It continues to deepen the R&D and innovation of privacy protection technologies such as privacy masking confidential computing and data desensitization and strengthens their 722025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text integration and application in products to ensure that user data is "usable but invisible visible but unlinkable and linkable but not leakable" providing users with better privacy protection. 3. General security foundation: The Company continuously improves an integrated general security foundation covering trusted computing cryptography framework basic security system security and hardware security steadily enhancing the inherent security capabilities of its products. By establishing a multi-level in-depth protection system the Company delivers three-dimensional security protection from the physical layer to the application layer. Trusted computing takes the security main control chip as the physical root of trust to ensure security and controllability throughout the entire process of device booting operation and firmware upgrade. Specifically trusted boot establishes a complete boot trust chain to implement step-by-step verification from the bootloader to the application layer forming the initial trusted state of the device; trusted runtime adopts a kernel verification mechanism to ensure the integrity of programs before loading effectively preventing the implantation and execution of malicious programs such as viruses and Trojans; trusted upgrade verifies the source and integrity of firmware packages and rejects the writing of illegal or tampered firmware into the device. 4. Emerging business security: Amid the rapid development and large?scale application of artificial intelligence and large model technologies security risks derived from emerging technologies have become increasingly prominent. These include the risk of sensitive information leakage during massive data interactions data poisoning and adversarial sample attacks caused by weak defense mechanisms in large models themselves as well as ethical and governance challenges arising from improper application of such technologies. The Company attaches great importance to the inherent security risks of emerging business technologies and their potential impacts on individuals enterprises and society. To this end it will continue to increase research investment in key areas such as data security model security and content security actively keep abreast of cutting-edge technological evolution and security research trends and ensure the sustained development of emerging business technologies in a secure reliable and controllable manner. 3.3.4 Product Lifecycle Security Governance 732025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Adopting the vulnerability management philosophy of Proactive Management and Proper Disclosure the Company is committed to minimizing the introduction of vulnerabilities during the product design and development phase. Through a unified governance system covering the entire product lifecycle and the entire supply chain the Company achieves timely detection rapid verification and effective remediation of vulnerabilities. The Company has established and continuously improved a vulnerability management process covering identification–verification–remediation–disclosure– improvement with reference to international standards such as ISO/IEC 30111 and ISO/IEC 29147.Specifically the Product Security Incident Response Team (PSIRT) serves as the core organization for vulnerability management and emergency response responsible for the overall supervision and coordination of vulnerability handling. R&D teams of each product line are in charge of developing and verifying remediation solutions while the delivery and service teams assist customers in the deployment of fixes. Through the above collaborative mechanism the Company has achieved end-to- end management of the entire closed-loop vulnerability process from identification to remediation ensuring the safe and reliable operation of customers' businesses.The Company actively encourages users partners suppliers security organizations and independent security researchers to report security vulnerabilities related to its products or solutions to the PSIRT. Upon receiving a vulnerability report the PSIRT will promptly initiate handling in accordance with the vulnerability management process. Once a remediation solution is ready the Company will issue a Security Advisory via its official security information platform—the Trust Center on the official website disclosing vulnerability details scope of impact and remediation plan. In addition products that support online upgrades will receive update prompts when connected to the network. Relying on the above dual mechanisms the Company assists customers in identifying risks and implementing fixes in a timely manner thereby effectively shortening the vulnerability exposure window and achieving rapid closed-loop management of security risks. 3.3.5 Security Compliance 742025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Adhering to the governance philosophy of Proactivity Openness Cooperation and Accountability the Company has established a systematic security compliance system. To address increasingly stringent global cybersecurity and data security regulations the Company focuses on key markets including China the European Union Southeast Asia and South Asia extracts common security compliance requirements and builds a security compliance capability framework. At the organizational level the Cybersecurity and Data Security Committee coordinates and advences governance across policies organization processes technologies and standards. At the R&D process and product security level development processes are controlled through secure development practices and security technologies such as a unified cryptography framework are adopted to safeguard product security. At the product lifecycle security assurance level the Company has established a unified vulnerability management platform and emergency response mechanism. At the data security and privacy protection level it has achieved data classification and grading as well as full lifecycle management.Based on its business development needs and strategic planning the Company takes the initiative to build a global security compliance certification system actively cooperates with third-party authoritative institutions and introduces external evaluations and certifications. The certifications currently obtained mainly include management system certifications such as ISO 27001 Information Security Management System Certification and ISO 27701 Privacy Information Management System Certification; product security certifications such as CC EAL3+ FIPS 140-2 and Commercial Cryptography Certification; regional regulatory compliance certifications such as EU CE-RED UK PSTI and ETSI EN 303645; as well as cloud security certifications including ISO 27017 Cloud Service Information Security Management System Certification ISO 27018 Public Cloud Personal Privacy Information Security Management System Certification and CSA STAR Certification. These form a comprehensive assurance system covering management system certifications product security certifications and cloud security certifications. During the reporting period focusing on data security and privacy compliance the Company completed and passed the Supplier Security Capability Assessment Level 4 Certification the Data Security Capability Maturity Model (DSMM) Level 3 Certification and the Mobile Internet Application (App) Security Certification providing users with more stable secure and reliable products and services.The company's established security and compliance capability framework is highly adaptable and sustainable able to rapidly respond to the regulatory requirements of different countries and regions while reusing existing foundational capabilities and continuously expanding and deepening them ensuring products in major global markets continuously comply with local security and compliance requirements. 752025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 4. Main businesses 4.1 Domestic Business 4.1.1 City-Level Business 4.1.1.1 Business Overview With the advancement of urbanization cities have become the core carriers of government digital construction and the whole country is faced with the urgent task of building resilient cities. Urban construction faces multiple risks such as natural disasters public security incidents and challenges such as the increasingly complex urban operation systems. To meet these challenges government digital construction requires the use of IoT large models big data AI cloud computing and other technologies to improve urban safety levels promote sustainable development and enhance governance capabilities and residents' quality of life.Against the backdrop of accelerated digital transformation in the government sector the Company centers its efforts on video IoT sensing data deeply integrates large model technologies and focuses on four core business areas: social security orderly urban operation governance efficiency improvement and better quality of life. It continuously promotes the application of the Xinghan large- scale AI models across various industry scenarios in cities enhances urban management efficiency and scientific decision-making supports the government in achieving targeted governance and efficient services and provides solid support for high-quality urban development. 4.1.1.2 Core Strategy The Company is committed to implementing digital and intelligent capabilities in numerous urban scenarios focusing on the core business of AIoT and continuously exploring the application of AIoT and large model technologies in enabling urban digital innovation across various use cases. The Company focuses on new opportunities in key sectors including digital transformation of transportation infrastructure natural resources smart water conservancy and smart agriculture. By 762025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text deeply understanding industry-specific scenario requirements it continuously builds industry-leading product and solution capabilities empowering urban development and innovative governance models through digital intelligence. At the same time the Company continues to deepen its ecological cooperation strategy strengthening technological co-creation and commercial sharing with partners in niche industry sectors. Together they empower efficient urban governance and build a AIoT ecological community featuring co-construction win-win results and symbiosis. 1. Building a Digital and Intelligent Urban Foundation The urban platform utilizes the unified foundation of Urban Tianji focusing on capabilities such as industry-specific large models twin scenario generation intelligent computing decision-making and scenario-based application construction. It helps users achieve efficient urban governance autonomous urban operations and ecological collaboration around multiple scenarios. By combining best business practice paradigms in various fields of the industry it quickly builds a digital intelligence system with comprehensive management decision-making capabilities. It helps urban governance achieve self-optimization self-learning and self-evolution and gradually move towards a new stage of cognitive intelligence and decision-making intelligence. 2. Deepening the Implementation of Scenario-Based Business Based on the unified Tianji urban foundation platform and leveraging years of deep experience in smart transportation social governance smart emergency response smart water conservancy natural resources and other business areas scenario-based solutions for diverse industry sectors have been developed continuously advancing the city's digital?intelligence transformation empowering efficient urban governance and striving to realize a new vision of urban governance characterized by social security orderly cities improved governance efficiency and a better quality of life. 4.1.1.3 Industry Value Practice The Company actively responds to the national "AI+" strategic deployment seizes opportunities in artificial intelligence development helps foster new quality productive forces and continuously promotes the application of the Xinghan large-scale AI models in various urban industry scenarios.Focusing on the four core goals of social security orderly urban operation improved governance efficiency and better quality of life it addresses industry pain points through large model technological innovation and unlocks the core value of AI via scenario-based implementation. Multiple validated large model application cases have been rolled out in public security smooth traffic urban governance natural resources and other fields injecting sustained AI-driven momentum into urban digital innovation. 1. A Safer Society 772025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text The Company focuses on the goals of social stability and order people's safe travel the stability of people's lives and enterprises' peace of mind in production. It actively fulfills its social mission and is committed to building a higher level of safe China. Centering on four business areas: public security traffic safety livelihood security and workplace safety the Company optimizes and enhances its integrated security solutions. Empowered by AI it upgrades the city's overall security system strengthens the urban lifeline and builds a comprehensive security ecosystem.In the field of public safety: The company closely focused on the national "14th Five-Year Plan" final-year construction deployments deepened the development of the integrated video system promoted upgrades to intelligent applications and continuously enhanced its service capabilities for public safety industry scenarios. In 2025 the vision-centered Xinghan large-scale AI models integrates image point cloud text voice and other multimodal data continuously mines the value of visual data further expands the boundaries of technology-enabled scenario implementation and enhances AI-enabled new-quality combat effectiveness. It has developed and deployed large model agents in multiple scenarios such as campus security posts drowning prevention crowd flow analysis in key areas and intelligent retrieval of the elderly children and lost items.In the field of traffic safety: The Company continues to promote the deep integration of large-scale AI model technology with traffic business scenarios and has significantly improved the level of intelligence in violation detection accident prevention and hazard mitigation. For traffic violation detection relying on the self-developed Tiangong large model and its text-to-image and partial-image 782025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text search capabilities the Company accurately identifies high-concealment violations such as blocked or defaced license plates effectively strengthening early warning and control over high-risk vehicles.In terms of accident prevention the "Traffic Event" large model product supported by full-scenario video understanding technology detects abnormal incidents such as road debris and pedestrians entering expressways accurately in real time. Early warning effectiveness has been improved by more than 30% greatly strengthening proactive prevention of traffic accidents. For potential hazard identification "Wen Shu" leverages its autonomous modeling and analysis capabilities to intelligently detect hidden road risks such as faulty traffic lights and blurred traffic signs and markings. This supports risk prevention at the source and lays a solid foundation for the long-term safe development of transportation.In the field of life safety: The company focuses on urban lifeline safety monitoring scenarios closely related to everyday life such as gas drainage water supply and bridges with the inherent safety goal of "capable of monitoring providing early warning and responding quickly"—by building front- end IoT sensing for urban infrastructure intelligent video analysis urban safety index models etc. to achieve monitoring of urban infrastructure big-data analysis and prediction of disaster data and AI- driven scientific decision-making recommendations. Leveraging multi-modal large models it enables intelligent analysis and judgment for scenarios such as urban waterlogging illegal fire use and construction damage. This supports an integrated business closed loop of graded risk early warning intelligent trend analysis and incident-linked disposal driving safety supervision from passive response to proactive governance.In the field of emergency disaster reduction: Actively responding to the Ministry of Emergency Management's 2025 requirements for building comprehensive disaster prevention capabilities the company centers on two core scenarios—construction of emergency command center systems and 792025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text strengthening grassroots disaster prevention and risk-avoidance capabilities—to establish a modern disaster prevention system featuring precision monitoring and early warning flattened command and dispatch accelerated rescue response and systematized material support. To meet the needs of routine disaster risk monitoring and early-warning scenarios intelligent analysis is performed on connected video surveillance and an emergency management large model is used to identify multi- domain risks and hidden hazards—forest fires floods hazardous materials mines etc.—realizing a shift from the traditional "human monitoring and guarding" model to a new "intelligent sensing" model.It establishes an integrated command and dispatch center covering sea land air and space integrating various audio and video communication terminals and communication systems to ensure full visibility smooth communication and responsive coordination during emergency command operations. For the equipment and supplies allocated to grassroots emergency rescue teams as well as emergency material reserve points technologies such as RFID temperature and humidity sensors and intelligent monitoring are used to achieve full lifecycle management of materials and equipment covering warehousing daily inventory checking and material dispatch along with online safety monitoring and intelligent inspection of material reserve sites. This improves the efficiency of material management across the entire region and enhances decision-making capabilities for material dispatch. 2. A More Orderly City Leveraging the Xinghan large-scale AI models the Company has fully upgraded its intelligent transportation system. In smooth traffic management the "edge + center" two-level large model enhances signal optimization significantly improving road traffic efficiency and ensuring orderly travel.In road network monitoring the event large model enables aggregated early warnings to strengthen emergency response and ensure orderly operation. In highway tolling the audit large model realizes evidence integration and real-time recovery standardizing toll operations and ensuring orderly management. Overall an intelligent breakthrough from perception to decision-making has been achieved enabling efficient and orderly operation of urban transportation.In the field of smooth urban traffic: Through an edge-cloud collaborative large model architecture comprehensively upgrade the traffic signal control system and build a two-level capability system of "precise perception + intelligent decision-making". At the perception end lightweight large models are integrated into Leishi terminals to improve detection precision of "motorized/non- motorized/pedestrian" traffic in complex environments such as nighttime and occlusion with accuracy improving by more than 20% providing more reliable data support for traffic signal optimization. At the decision-making layer the large-model traffic signal optimization platform enhances intelligent timing adjustment for traffic lights in special scenarios such as congested intersections during peak hours and roads near schools. For example at a congested intersection during peak hours the integrated adaptive + inductive algorithm automatically extends green light duration for directions with 802025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text long vehicle queues when traffic is light in other directions eliminating unnecessary waiting and achieving improvements in both traffic efficiency and driving experience.In the field of urban road network monitoring and operation: Traditional highway road network operation monitoring event alerts are independent and uncorrelated producing a large number of invalid alerts and requiring the road network operation management center to rely on manual effort to repeatedly confirm the alerts. The traffic event large model aggregation solution aggregates deduplicates classifies and grades duplicate and invalid alerts based on the three key relationships of the alert events: temporal attributes spatial attributes and business attributes. This reduces duplicate and invalid alerts alleviates the workload of manual review and improves the emergency response efficiency for sudden incidents on the expressway network under the condition of limited manpower at the road section monitoring center.In the field of urban highway toll operation: Traditional toll auditing mainly relies on post-event verification resulting in a low recovery rate. Meanwhile evidence collection requires cross-system query and archiving leading to low efficiency. For toll auditing scenarios the Company has built a dedicated highway auditing large model solution. Through local data fusion and real-time calculation by the auditing model it has shifted from offline auditing to real-time on-the-way auditing enhancing the real-time interception and recovery capability of toll operation teams at road section companies.At the same time the solution integrates multi-dimensional data including gantry data transaction records and vehicle feature data to form a complete evidence chain within a single system greatly improving the efficiency of evidence collection. 812025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3. Make Governance More Efficient The Company has always practiced the concept of "business traction and scenario implementation" to empower efficient urban governance with digital intelligence. We seize the opportunity to promote the modernization of the urban governance system and governance capacity and provide solutions for application scenarios such as urban operation urban management grassroots governance and community governance. We use intelligent means and real-time online data to solve various complex problems in urban governance improve urban governance efficiency and enhance public satisfaction.In the field of urban operations: The Company has built an urban operations system that features "comprehensive situational awareness intelligent trend analysis coordinated resource allocation and scheduling and cross-domain cross-departmental and cross-system business collaboration" and empowers the modernization of urban governance with sensing data. The unified video IoT convergence center realizes a one-screen overview of the entire region the unified algorithm supermarket realizes rapid discovery of urban events the unified integrated command and scheduling system realizes the coordinated scheduling of event handling resources and the unified event center realizes business collaboration across multiple departments. The Company has launched a multi-modal large model for urban governance supporting advanced applications including custom algorithm generation collaboration between large and small models multi-modal text-based location search and automatic scene tagging effectively elevating the level of urban governance.In the field of urban management: The company aiming at urban governance operational safety and serving the public has established an operational management system of "big-city intelligent 822025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text management big-city refined management and big-city participatory management." Focusing on street management urban sanitation and comprehensive governance the Company realizes intelligent monitoring and early warning for scenarios including urban management incident detection mobile AI inspection waste sorting management illegal construction control and mobile vendor management. Innovative scenario applications such as construction waste management have been launched. Relying on the urban management large model the system accurately identifies illegal dumping by muck transport vehicles providing strong support for urban construction waste governance. A unified urban operation management model has been built integrating real-time monitoring dynamic analysis overall coordination command and supervision. It is designed to make urban governance "smarter" urban operations "safer" and public services "more precise". 4. A Better Life Guided by the philosophy of "Harnessing AI to advance the green vision and improve people's well- being" the Company applies AI across smart water conservancy biodiversity monitoring forest and grassland fire prevention farmland redline protection smart elderly care and food safety regulation.By transforming traditional supervision models and improving management efficiency it supports ecological civilization and delivers a better quality of life.In the field of smart water conservancy:Focusing on the diversity of outdoor water-management scenarios and the limited availability of power and network an innovative new PTZ Camera for the water conservancy industry was launched. The product offers low Power Consumption during operation excellent night vision high PTZ accuracy and integrated 4G enabling it to closely meet the practical needs of reservoirs rivers lakes and similar scenarios. In a water diversion and transfer project continuous optimization and iteration of the recognition algorithm have enabled successful adaptation to non-standard and stepped water gauges. This has greatly improved the accuracy and data stability of water level identification effectively addressing the inefficiency and data delays inherent in traditional manual inspection and reading. This product provides real-time and reliable data support for the operational safety of the project and water supply scheduling. In the Yangtze River Basin full-coverage project the Company participated in the construction of the video convergence platform video processing platform and video algorithm training and inference platform and deployed a number of new front-end video surveillance devices. By loading a variety of special algorithms for water conservancy a complete water?conservancy video surveillance application system has been built enabling the efficient use of video data and intelligent recognition results across multiple business systems and effectively boosting the overall efficiency of river basin governance.In the field of biodiversity conservation: In response to the national initiative to strengthen the construction of intelligent monitoring systems for the protection of wild animals and plants the Company has invested significantly in developing diversified monitoring and identification technology 832025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text product solutions. Powered by large model algorithms the video-image wildlife recognition system now identifies more than 1000 species and the avian voiceprint recognition algorithm covers over 300 bird species. Multispectral dome cameras enable real-time online monitoring and analysis of plant growth conditions achieving full-coverage real-time monitoring for wildlife protection. This has transformed the traditional model relying on manual field surveys observation and sampling improving the timeliness and richness of biodiversity monitoring data and providing solid data support for research and analysis of protected wild fauna and flora. Meanwhile the construction and application of the online intelligent monitoring system reduces human disturbance to natural habitats helping to better preserve the integrity and originality of natural ecosystems.In the field of forest and grassland fire prevention: To address current pain points in forest and grassland fire prevention—namely inaccurate fire hazard localization frequent false alarms and difficulty in assessing fire hazard alarms at command centers—the company pioneered an integrated solution that combines multidimensional posture?sensing thermal imaging cameras with forestry large model algorithms achieving more than a 30% improvement in fire point positioning accuracy and reducing fire hazard false alarms by over 90% greatly reducing the workload of fire prevention command center staff for fire hazard assessment. Precise fire point localization better ensures that personnel and materials can quickly reach the scene to carry out firefighting accelerating the response time to real fire hazards. The forestry large model also integrates algorithms for various application scenarios including forest land change monitoring and grazing prohibition & rest grazing supervision on grasslands. While expanding the scope of forestry and grassland services it provides a more comprehensive and intelligent monitoring and management model for the rational utilization and protection of forest and grassland resources further safeguarding the ecological security barrier and promoting ecological balance. 4.1.2 Enterprise-Level Business 4.1.2.1 Business Overview The Company is committed to becoming the preferred supplier of AIoT infrastructure the professional service provider of scenario-based digital intelligence applications and the key builder of the AIoT ecology. The Company focuses on scenario digitalization business and carefully creates scene cameras IoT devices industry algorithms and industry platforms. By optimizing the security system improving production efficiency and assisting business management the Company helps enterprises achieve digital and intelligent transformation. The Company actively carries out innovative practices and continues to assist the digital intelligence upgrades of enterprises in thousands of industries such as manufacturing construction electricity petrochemicals coal steel finance education medical care culture and tourism agriculture logistics and retail. It enables the realization of value in all scenarios 842025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text builds a large security system for users constructs digital and intelligent productivity and improves business decision-making. It is committed to becoming a trustworthy enterprise digital intelligence upgrade partner for customers. In this process through technology co-creation and business sharing with partners we have built an AIoT ecological community of co-construction win-win and symbiosis and jointly empowered the digital intelligence upgrades of enterprises. 4.1.2.2 Core Strategy Through continuous exploration of business scenarios the Company has deeply integrated its robust technologies in video IoT AI and multi-dimensional sensing with the actual production and operation scenarios of various industries. It has fully transformed into a scenario-based digital intelligence service provider and enabler deeply engaged in the core areas of enterprise operation management and production. The core driving force behind this transformation lies in elevating AI from a general-purpose technology to scenario-specific AI tightly integrated with industry-specific knowledge and business processes. This delivers quantifiable perceptible core business value for enterprises. At this critical stage of advancing intelligent production and operation management the Company helps customers achieve digital and intelligent upgrading fostering new drivers for their high-quality development. 1. Focusing on scenario-based business as a trusted partner for enterprise digital and intelligent transformation Drawing on service experience and industry insights from over 50000 enterprises nationwide the Company has systematically refined and focused its digital-intelligent solutions on four core business areas: work safety production execution inspection and metering and green and low-carbon development. These four areas are not isolated technical modules. Instead supported by the Company's integrated capability platform they embed scenario-based AI throughout continuously empowering enterprises with services and upgrades for their high-quality development.Work safety: scenario AI drives "proactive prevention" to safeguard lives Building on its deep engagement with high-risk production and operation scenarios the Company integrates digital-intelligent capabilities closely with on-site conditions. Through a series of products such as leak detection thermal imaging temperature monitoring and device status inspection and based on its precise understanding of advanced AI technologies for empowering complex and non- standard scenarios the Company has fully deployed various intelligent algorithms in production sites covering personnel protective equipment compliance operational behavior environmental anomalies and equipment status. This has formed an intelligent management and control solution for safe production and efficient operation and maintenance enabling process supervision potential risk monitoring and environmental abnormality early warning. It addresses unsafe human behaviors hazardous equipment conditions and unsafe environmental factors providing strong protection for safe production. 852025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Production execution:Scenario AI builds a "perception-decision-optimization" closed loop reshaping manufacturing efficiency Digitally express control and optimize the workshop production process and realize production visualization data interconnection and intelligent management through visual management systems production process traceability systems etc. to create a new generation of smart factory management system. Leveraging the Company's strengths in multi-dimensional intelligent integration and adopting digital twin technology for top-level visualization an interactive human-machine platform for industrial sites is built. With in-depth insights from scenario AI all production elements in the physical world are digitally mapped enabling transparent end-to-end management from order to finished product and data-driven intelligent decision-making. This greatly improves operational efficiency and flexible manufacturing capabilities.Inspection and metering: scenario AI expands perception boundaries for precise insights beyond visibility Centering on enhancing and extending perception capabilities the Company continues to invest in technical research and application exploration. By expanding the perception spectrum toward both low and high frequencies richer multi-dimensional collection methods are achieved. Scenario AI algorithms then translate these multi-dimensional data into actionable business insights. For example in predictive equipment maintenance audio and vibration sensors collect raw data while AI algorithms analyze early anomalies of internal components enabling accurate fault prediction. This breakthrough from "what is visible can be known" to "what is not visible can also be known" relies on deep learning of the operating mechanisms and failure modes of specific devices representing a unique competitive advantage of scenario AI in the industrial Internet sector.Green and low?carbon: scenario AI optimizes the energy chain enabling sustainable development In active response to the national "Dual-Carbon" strategy the Company centered on the entire energy chain of "source grid load storage charging inspection" integrates power electronics AI and cloud computing technologies to provide parks and factories with full-stack green energy solutions. The value of scenario AI is reflected in intelligent energy management systems. Through intelligent analysis of historical data and real-time status of photovoltaic power generation energy storage batteries charging facilities and production loads coordinated regulation and energy efficiency optimization are achieved. This is far more than simple data monitoring. Powered by an AI model that integrates multi-dimensional knowledge such as park energy consumption patterns production scheduling and electricity pricing policies it enables predictive scheduling to help enterprises achieve refined energy conservation and consumption reduction. In this way sustainable development goals are transformed into quantifiable manageable operational practices. 862025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Ecosystem empowerment: opening up scenario AI capabilities to enable lightweight transformation for all industries To address the fragmented lightweight transformation needs of the vast number of SMEs the company has developed a flexible lightweight DoLynk Enterprise service that provides standardized lightweight cloud-based solutions to enable easy deployment and convenient management.Leveraging "Cloud + AI" technologies it provides professional services covering the full lifecycle of "assessment design implementation and optimization". At the same time we provide an open platform with rich interfaces and open up IoT capabilities AI algorithm capabilities and business capabilities to ecological partners for free allowing the value of AI to benefit more industries and enterprises helping more enterprises reduce costs and improve efficiency. 2. Rooted in digital and intelligent scenarios driving technological innovation Based on its profound technology layout and forward-looking market insights the Company is supported by the IoT technology system the artificial intelligence technology system and the software operation technology system. Relying on deep industry insights and scenario-specific expertise it delivers tangible value from scenario-driven digital intelligence.Vision and data fusion development amplifying industry value The company through cooperation and practice with leading global enterprises continuously innovates accumulates experience and summarizes lessons learned relying on full frequency domain IoT sensing capabilities to build a comprehensive AIoT infrastructure and construct end-to- end connections from information people things and scenarios to services. It provides visual inspection for production across industries assists production decision-making with smart data enables industry innovation and development based on data-visual fusion technology and deepens engagement in industry scenarios to bring customers four major values: safety reliability convenience and efficiency.Collaborative application of large & small models for deeper scenarios higher efficiency and better costs Enterprise operations are not only complex but also highly fragmented in processes and scenarios.From the outset of deploying enterprise business large models the Company has clearly committed to advancing technological development by closely addressing industry users' needs and pain points on basis of general-purpose scenario applications. On one hand the Company optimizes large models into lightweight versions with controllable computing power continuously reducing overall computing overhead. On the other hand it extends coverage from single scenarios to end-to-end full business processes ensuring implementation aligns better with actual production and management.Through efficient matching between technical capabilities and business demands the Company achieves cognitive intelligence for business operations. The Company focuses on essential high- demand scenarios that are "difficult yet correct". By integrating large models with traditional systems 872025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text and segmented scenario models it forms a complete business system. Leveraging its core capabilities of "Cloud + Large Models + Scenario-based Algorithms" it co-builds benchmark projects with industry leaders. After technical feasibility is verified the solutions are replicated and scaled across multiple industries for wide deployment. 4.1.2.3 Industry Value Practice The Company focuses on enterprise business scenarios aiming for online resources intelligent business and data-driven decision-making. It explores the operational and decision-making value of enterprise production management data provides a means for business management and enhances decision-making capabilities. We work hard in the fields of manufacturing construction education electricity petrochemicals coal steel finance medical care logistics culture and tourism agriculture and retail focusing on core scenarios such as "5+X" (factory manufacturing energy production school education healthcare and park management) providing customers with high-value digital intelligence solutions empowering the realization of enterprise value in all scenarios and enabling business innovation. 1. Industrial manufacturing: AI + industrial machine vision applications help enterprises improve quality and efficiency In the industrial field AI + big data cloud computing and other advanced technologies are used to achieve visual management and traceability of the entire production process realize unmanned production sites and visualize problem tracing.The Company's factory scenario solutions have achieved coverage from single scenarios to multiple businesses from factory security and workshop energy consumption to production business comprehensively improving the depth and breadth of the interconnection between people machines and systems. Through the digital integration of product data flow manufacturing control flow and order delivery flow information it more efficiently realizes the visualization of the entire production process from order to finished product.At the same time based on the enterprise group management platform architecture the Company realizes unified management of intelligent management systems such as energy consumption vehicles perimeter and integrated security and fire control accurately controls abnormal situations such as personnel and vehicles and effectively controls the real-time status of factory fire protection and security IoT facilities etc. helping enterprises to achieve comprehensive management of the park. 2. Energy production: Video AI combined with AIoT to create a new risk and hazard monitoring model The production scenarios of energy enterprises face numerous risks and hidden dangers with common issues including a lack of diverse traditional regulatory methods limited operation and maintenance 882025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text personnel and a complex environment. The Company has long been committed to using video AI large models and AIoT technologies to achieve online automatic monitoring and intelligent alert of risks and hidden dangers in production scenarios reduce production risks improve O&M efficiency and efficiently assist energy enterprises in safe production.Based on the full perception capabilities of "looking smelling asking and touching" the Company has realized a new model of online supervision with machines assisting people. By loading AI intelligence and visual large model capabilities into videos industrial televisions are given a second "life".Combined with infrared laser hyperspectral voiceprint and other AIoT multi-dimensional perception technologies remote intelligent visual monitoring of the operating status of devices online compliance management of work sites and safe and stable management of production environments are achieved providing energy enterprises with new digital and intelligent management and control models such as risk monitoring.Currently the Company has applied it in multiple energy sub-industries such as the electricity coal petrochemical and steel industries. In response to new regulatory requirements and integrating new technologies it has achieved online visual intelligent monitoring and early warning of safety management and intelligent inspections effectively improving the level of production supervision reducing accident rates and simultaneously reducing labor costs. The Company will continue to explore the deep integration of AIoT technology and productivity to help energy enterprises upgrade their safe production to digital intelligence levels.In the field of new energy stations for example along with the large-scale construction of new energy power generation stations their commissioning has entered a peak period. Photovoltaic and wind farms in particular are characterized by large numbers wide coverage remote locations and scattered layout creating challenges in safe production operation and maintenance management. Pressure on the operation maintenance and inspection of equipment and facilities is growing steadily while the traditional manual operation and maintenance model suffers from low efficiency and high costs. To address the complex environments of new energy stations such as photovoltaic and wind farms the Company employs an all-in-one machine for new energy stations leveraging the collaboration of large and small models. This enables AI-based equipment inspection and environmental monitoring for power generation scenarios. The accuracy of meter inspection is no less than 99% and the accuracy of fire and smoke recognition is no less than 95%. The solution adapts to the complex environments of new energy stations and supports the construction of unattended stations.In the coal industry applications have expanded from initial personnel control to the management of various processes including transportation conveyor belts and coal stacking covering almost the entire workflow of pre-operation control underground operation and logistics transportation. The application effect of large models is also remarkable. For core functions such as large-object detection on conveyor belts and conveyor deviation monitoring accuracy has increased from 80% to 93%. Even 892025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text in harsh underground environments such as high temperatures and poor lighting the real alarm recognition rate remains stable at above 85%. 3. School education: focusing on "balance precision efficiency and safety" providing a comprehensive solution for campus digital intelligence The Company empowers the digital transformation of universities with digital intelligence. Based on video capabilities it has created campus safety big data campus AI Hero Luban digital twin campus traffic management university laboratory management. and other solutions built a campus IoT digital intelligence middle platform focused on the integration and innovation of university business realized data value empowerment and assisted the digital transformation of universities. The Company integrates artificial intelligence and big data technology into video scenarios focusing on the campus AI large model making it possible for videos to move from static recognition to dynamic behavior understanding. It uses large model technology to help schools solve effective prevention and control of unsafe behaviors such as illegal distribution of leaflets posting of small advertisements and violent destruction of facilities on campus. Campus safety big data has transformed security work from passive to active providing active alert capabilities for university safety pain points such as students losing contact abnormal work and rest schedules and high-frequency occurrences in key areas. It also applies large models and big data technology to achieve human-computer interactive retrieval such as text search for images and fusion search making finding people and cars quick and efficient. Luban digital twin enables the overall campus security prevention and control situation to shift from a limited glimpse to a global visual angle and provides all-around and three-dimensional protection for the safety of university teachers and students. 4. Healthcare: Centered on the "three-in-one" construction of smart hospitals supporting the high-quality development of the healthcare industry.The Company has built a modern hospital development system that deeply integrates smart management smart services and smart medical care providing solid support and innovative momentum for the high-quality development of public hospitals. On the basis of smart hospital security smart outpatient services and smart wards the Company continues to strengthen its application capabilities in these scenarios.In 2025 the Company continued to deepen application research and capability deployment of the "healthcare + safety" vertical large model in the field of hospital safety production supervision. By deeply integrating hospital-specific safety business rules with the capabilities of the Xinghan large-scale AI models the secondary analysis mining and judgment capabilities for structured and unstructured data are enhanced. This enables intelligent identification and precise early warning of key personnel entering the hospital special behaviors and abnormal events establishing a multi-dimensional and 902025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text comprehensive safety perception system covering people vehicles objects behaviors and the environment in hospitals.Based on hospitals' practical needs for daily work safety management we further break down data silos across multiple scenarios including security fire protection logistics energy consumption and hazardous chemicals. This forms a full-process safety management model featuring intelligent pre- judgment before incidents efficient response during incidents and closed-loop traceability after incidents providing solid technical support for the standardized refined and intelligent operation of hospital work safety. 5. Park management: creating a digital headquarters and green and efficient parks to deeply empower enterprises Guided by the "Five New" philosophy the Company drives the upgrade of smart parks. Leveraging the Xinghan large-scale AI models and AIoT technologies it builds a digital-intelligent benchmark park integrating new energy new services new capabilities new security and new vision. Through multi- business collaboration and scenario-based empowerment we build a new paradigm of smart parks featuring green low-carbon development efficient operation and intelligent safety providing an innovative engine for smart city construction. The leap from the "Five-in-One" model to the "Five New (Star) Park" realizes a comprehensive upgrade of park management from intelligent to digital-intelligent helping enterprises reduce costs and improve efficiency and promoting sustainable urban development. 6. More industries: aligning with policy guidance and clients' internal needs to explore new opportunities across sectors In the tourism industry: The Company thoroughly interprets industry standards and policy guidelines and develops tailored smart scenic area solutions to help scenic spots achieve A-level accreditation and upgrading and advance smart tourism development in management services operation safety and environmental protection. Centered on industry standards and in response to the Law on the Protection of Cultural Relics for strengthened conservation it launches smart museum and smart cultural relic protection systems covering preventive conservation digital preservation warehouse management and intelligent administration of cultural relics as well as smart protection for immovable cultural relics historic sites and AI-enabled relic conservation contributing digital intelligence to cultural heritage protection.In the financial industry: The Company has deeply extended its traditional bank security business to the digital governance of network branches and the guarantee of security infrastructure. Through the integrated application of visual AI and large model technologies it helps financial institutions build a comprehensive risk prevention system. In risk prevention scenarios large models can proactively identify potential safety hazards such as fires electrical issues and flood seasons. By replacing traditional manual inspections with automated processes they significantly improve the efficiency of 912025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text safety checks. In operation and management scenarios the combination of structured data and large models enables functions such as passenger flow statistics civilized and quality service monitoring and business compliance promoting the upgrading of network branch management towards refinement and intelligence. Meanwhile the Company maintains a deep focus on the security of financial infrastructure. For data centers it provides professional commercial cryptography application security evaluations and anti-terrorism prevention solutions. These solutions have been successfully implemented at major state-owned banks including Bank of China China Construction Bank and Bank of Communications. With ability to maintain high-standard compliance the Company strengthens the security line for financial data achieving full-link empowerment from intelligent branch operations to core security at data centers.In the construction industry: Actively participates in affordable housing construction focusing on IoT access operation and regulatory applications for affordable housing. Using an architecture of community solution + two meters and one lock + rental application platform it achieves a three?in?one intelligent integration of rental management services group networked operations and unified government supervision helping clients improve service operational efficiency and regulatory transparency; it focuses on building gas terminal regulatory applications that cover the full process and all scenarios—urban gas corridors gas stations industrial and commercial gas use household gas and rural gas cylinder gas—and has explored a highly practical application solution that integrates unified networking multi?dimensional early warning rapid linkage and intelligent handling. While meeting the requirements of unified government supervision the solution also adapts to diverse operation and maintenance models greatly reducing the threat of gas leaks to people's lives and property. In response to the demand for building "high-quality homes" the Company develops premium residential complexes integrating property marketing smart security frictionless access and enhanced resident experience. For urban construction and investment groups it builds a group-level management and operation center using large models IoT sensing and intelligent inspection fully empowering their urban construction business.In the chain industry: Cloud-based large-scale models replace manual inspections and achieve seconds-level verification across tens of thousands of stores. For example in a certain catering industry from the store renovation and construction stage to the operation stage the AI inspection system increased the cross-regional store construction compliance rate from 68% to 94% reduced the construction delay rate by 41% and shortened food safety issue detection time from 48 hours to 15 minutes. This enables stores to shift from "passive rectification" to "proactive prevention" and cloud models from "data analysis" to "decision enablement" and provides more precise and efficient technical support for global store expansion.The Company's enterprise business is based on a new starting point for digital and intelligent development and continues to focus on the practice and innovation of enterprise digital and intelligent 922025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text transformation. It always insists on the development of quantifiable calculable and feasible product solutions helping users build a large security system build digital and intelligent productivity and improve operational decision-making. It is committed to becoming the most trustworthy enterprise digital intelligence upgrade partner for customers. 4.1.3 SME Business (SMB) In 2025 facing the complex and changing market environment and continuously upgraded industry demands the Company's small and medium-sized enterprise business took "local operation and district and county lower-tier" as its strategic core adhered to a customer value-oriented approach expanded market coverage horizontally deepened market penetrating power vertically and continuously optimized the channel ecology. We have promoted the in-depth development of business towards refinement scenario-based and digital intelligence. Leveraging AIoT technologies we empower millions of small and medium-sized enterprises in their digital and intelligent transformation and build a symbiotic prosperous and sustainable channel ecosystem. Throughout the year the Company's operational quality and market competitiveness have been significantly improved. 1. Deepening local operations and build a new ecosystem for the lower-tier markets The Company firmly advanced the strategy of "local operation and district and county lower-tier".Guided by localized customer operation balanced product layout and sustainable partner profitability it precisely allocates resources to city district and county markets to promotes in-depth integration between primary distributors and local service providers reshaping the channel value distribution system. Through the "district and county responsibility contracting system" the business mechanism of "whoever cultivates the land harvests the crops" was clarified to protect the rights and stable benefits of distributors' localized operations.The Company launched supporting sell-out incentive policies such as installation bonuses online rewards salesperson field activity & signing incentives to stimulate the enthusiasm and subjective initiative of partners effectively support the implementation of localized operations and district and county lower-tier strategies and ensure the sustained profitability for channel ecosystem partners.Key breakthroughs have been made in the restructuring of the distribution system: Primary distributors have been guided to fully penetrate lower?tier markets with nearly 700 personnel deployed for market expansion. In the first half of the year nearly 100 new primary customers were developed while around 200 underperforming ones were phased out accelerating the replacement of traditional "passive dealers". The service provider network reached a record scale with more than 90000 signed up and over 50000 activated. Sellout business stabilized in the first half of the year rebounded in the second half and achieved accelerated growth. 932025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2. Technology drives product innovation and consolidates scenario-based core competitiveness Relying on the "video + AI + IoT" technology base the Company continued to upgrade Yunlian Platform 2.0 comprehensively upgraded core business and functions and enriched value-added services achieving a year-on-year growth of 252% in new Yunlian devices and 69% in new users.The product portfolio has been continuously improved: the Company has iteratively upgraded its circulation-type dual-light products and newly launched indoor and outdoor wireless products Nightvision King 2.0 HarmonyOS NEXT series Door God series HarmonyOS Camera series 4G lifetime free flow products etc. to form a full-scenario layout of "wired + wireless". It has built blockbuster wireless products including T9 T8 and C1 and refined the promotion strategy for Nightvision King with monthly sales hitting record highs repeatedly. Products are clearly differentiated between online and offline lines with exclusive offerings developed for e-commerce platforms achieving full coverage of all sales channels.Innovation and implementation of scenario-based solutions: Focusing on micro and small scenarios the Company has launched a series of solutions including video traceability for e-commerce returns mispick control at courier stations and smart agriculture and fishery breeding. It has implemented 40 sub-scenario solutions and established 73 benchmark cases. Firmly following the path of "scenario- based products + supporting facilities for district- and county-level characteristic economic industries" it has achieved large-scale implementation across multiple scenarios. 3. Establishing a three-dimensional marketing system and build win-win partnership. With the direction of full-service full-link and digitalization the Company has built an integrated online-offline marketing and service system. Online we have supported partners in building digital storefronts on local lifestyle platforms such as Amap Baidu Maps and Douyin enhancing brand visibility and online customer acquisition capabilities. Offline we have increased support for the construction and operation subsidies of district- and county-level specialty stores urban exhibition halls and storefronts achieving comprehensive coverage of "small but exquisite" outlets.The Company has built a full-chain service ecosystem covering "pre-sales sales and after-sales". It has continuously introduced high-quality small and medium-sized customers assisted them in developing small and medium-sized scenarios and implementing small and medium-sized projects and provided comprehensive technical and commercial support. This helps partners enhance their project service capabilities and profit margins. Through online marketing online store operations and online services we have built a complete closed loop from traffic leads → order conversion → installation and delivery achieving symbiotic win-win results and coordinated growth with channel partners. 942025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 4. Organizational and institutional safeguards to drive high-quality business development Upgrading of organizational capabilities: The headquarters middle platform has shifted its role from serving regions to empowering and governing regions with continuous improvement in professional competence. Regular training combat exercises optimization and replacement of provincial SMB directors have significantly strengthened overall team combat effectiveness. Multiple rounds of empowerment training have covered distribution customers and frontline penetration personnel across 31 provinces solidifying frontline operational capabilities.Improvement of operation mechanisms: Regular meeting systems have been established including monthly distributor benchmarking meetings provincial 360° business health analysis meetings and quarterly agent inventory checks. Management measures such as the red and black list for on-site penetration performance and NP customer rotation have been implemented. Data-driven and transparent mechanisms ensure strategy implementation and healthy business operations.In 2026 the Company will continue to deepen its presence in district- and county-level markets strengthen technological and product innovation and advance the development of the channel ecosystem. With higher-quality products solutions and services we will empower SMEs in their digital and intelligent transformation achieving sustained high-quality business growth. 4.1.4 Service Carrier Business 4.1.4.1 Business Overview Leveraging its proprietary AIoT technological capabilities as a pillar the Company fully aligns with the digital and intelligent transformation strategies of telecom operators. It has launched standardized products covering AI algorithms large-model all-in-one devices and security protection transforming single technological advantages into comprehensive scenario-based solutions. By closely aligning with service carriers' video network planning both parties have formed a collaborative model of "joint technology R&D joint product development and joint market expansion." In the DICT and SME sectors the Company joins hands with operators to integrate superior resources achieving two-way empowerment in the DICT industry market and SME development. Through resource sharing and complementary strengths the two parties jointly explore incremental markets. 4.1.4.2 Core Strategy 1. Jointly committed to the construction of new-type information infrastructure Leveraging its leading technologies in visual IoT and ubiquitous connectivity as well as its strong manufacturing capabilities the Company deeply integrates the computing power network and connectivity advantages of operators to seamlessly link "edge-side perception" with "cloud computing power". Through the collaborative innovation of "hardcore manufacturing + flexible computing power" 952025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text both parties jointly developed future-oriented deeply customized industry products such as AI intelligent terminals large model all-In-one devices etc. building a solid visual and connectivity foundation for the digital economy. 2. Collaborative Innovation for New-Quality Productive Forces The Company and operators have shifted from capability complementarity to value co-creation and deeply integrated Dahua's intelligent manufacturing and visual perception capabilities with the operators' connectivity and computing power networks by forging a new product paradigm of "hardware + software + AI". Both parties are no longer limited to traditional business cooperation; instead they jointly create new business formats new products and new models and together explore innovative development paths from "cloud-management-edge" to "scenario-based applications." 3. Promoting Business Integration and Expanding Emerging Markets Facing the vast blue ocean of emerging markets the company is deepening comprehensive business integration with service carriers by deeply coupling AIoT products video AI capabilities and service carriers' 5G and cloud computing resources to build an integrated "cloud-network-edge-end" collaborative solution. Cooperation with service carriers is no longer limited to traditional buyer?seller relationships; instead it deeply integrates the company's intelligent sensing touchpoints with service carriers' communication networks and through joint innovation laboratories co?incubates intelligent applications tailored to market needs. 4.2 Overseas Business 4.2.1 Business Overview The Company formulated a "going global" strategy to enter the international market in 2003 began to strengthen its own brand capability development in 2008 and started to set up local overseas locations and local business operations in 2014. Over the years overseas operations have ensured a virtuous cycle of business development and long-term localized operations through measures such as comprehensive channel penetration project expansion technical support supply and logistics systems and after-sales service development. Continuous R&D investment and technological innovation have promoted product line innovation and solution optimization. Focusing on channel deepening has enhanced product competitiveness solution capabilities and localized service levels demonstrating professional quality driving the growth of brand value and laying a solid foundation for the accelerated expansion of overseas business. At present the Company has established 75 overseas subsidiaries and branches around the world covering more than 180 countries and regions.Faced with growing demand in the global AIoT market the Company will continue to focus on 962025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text marketing upgrading product innovation industry development and ecosystem cooperation to further expand the international market. 4.2.2 Core Strategy 1. Localized development and ecosystem construction under the globalization strategy Adhering to the philosophy of steady development the Company continuously optimizes and upgrades its global marketing and operation organizations. By strengthening regional matrix management and digital collaboration platforms we improve the efficiency of global resource allocation and market response speed. In the face of ongoing changes in geopolitics economic conditions and regulatory policies we have continuously enhanced our in-depth understanding and flexible response capabilities toward national laws regulations policy directions and market dynamics.We implement a differentiated business strategy of "one country one policy" to achieve more precise market positioning and resource allocation. Furthermore we will further expand the breadth and depth of our global business coverage by continuously stepping up channel penetration expanding integrator business achieving industry breakthroughs and replication and developing new business lines. In this process the Company attaches great importance to the introduction and development of local talents actively recruits professionals with diverse cultural backgrounds and expertise and builds a versatile team with global vision and local insights so as to promote the continuous optimization and upgrading of the organizational structure. In terms of localized operations the Company will further enhance the local adaptation of talents products and services. By leveraging artificial intelligence and big data analytics to dynamically identify regional demands we will achieve a strategic transformation from "product delivery" to "building a localized service ecosystem" and establish a more complete supporting system to adapt to the volatile international environment. By continuously empowering local teams and expanding ecological cooperation we are committed to achieving the deep integration of globalization and localization in the field of AIoT so as to consolidate our competitive advantages in the international market. 2. Building an Agile Supply Service System By integrating channel delivery and service systems and deploying technical centers at the national level to provide integrated and differentiated services the Company has established a supply center network covering six major regions including Europe Southeast Asia the Middle East and Latin America. It has also set up national central warehouses in multiple key countries forming an agile three-tiered supply chain system: "headquarters – regional supply centers – national warehouses" which strongly supports rapid response and efficient delivery for global businesses. At the same time a global service system has been built covering integrated delivery technical support operation and maintenance management customer service as well as training and certification. More than 120 972025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text professional service stations have been established overseas with localized hotlines launched in over half of the countries significantly improving global service coverage and response capability.The two systems operate in synergy forming an end-to-end closed-loop ecosystem featuring "frontline market insight – middle-platform agile response – back-office efficient support". This has not only greatly shortened the delivery cycle of overseas business but also significantly improved customer satisfaction. Meanwhile to cope with fluctuations in supply resources an overseas self- service ordering platform has been launched and will be rapidly promoted in the future. To proactively manage import and export compliance risks a global customs map engine has been deployed overseas with greater focus on local customs empowerment to come. Faced with the global industrial chain restructuring and digital upgrading trend the Company is actively promoting the intelligentization of its supply chain and the migration of services to the cloud. It is exploring innovative service models such as predictive maintenance and remote technical support based on IoT and AI so as to continuously enhance operational resilience and overall competitiveness in the complex global environment. 3. Focus on core business drive innovation and promote high-quality business development To meet the differentiated scenario needs of overseas regions the company has for many years continuously invested in technological innovation and product R&D steadily improved its service system and gradually built localized operational capabilities to help its products and solutions maintain a leading position in overseas markets. The traditional video business maintained steady growth and laid a solid foundation for the development of new businesses. As a typical example of digital and intelligent enterprises expanding globally the Company has continuously broadened and enriched its innovative business categories in overseas markets. Innovative businesses including thermal imaging graphics and imaging intelligent buildings fire protection smart whiteboards EV charging stations and automotive electronics have achieved rapid growth. These offerings are deeply tailored to the diverse application needs of overseas smart cities intelligent manufacturing new energy intelligent transportation and other sectors. At the same time we deepen localization with overseas strategic partners co?building a smart manufacturing center with partners in Saudi Arabia and focusing on AIoT infrastructure construction in the Middle East; in markets such as South Korea we have launched customized innovative solutions like charging pile fire monitoring and high?end LED displays. Through the global expansion of innovation business subsidiaries such as HuaRay PixFra and Hirige we are driving the penetration of each new business category across overseas sub?segment tracks. Combined with the localized operational capabilities of 75 overseas subsidiaries we have built an overseas diversified business layout of "core innovative categories + regional customized solutions + local ecosystem collaboration" making innovative businesses the core driver of overseas performance growth and achieving a leap from exporting traditional security products to the global deployment of multi?track AIoT solutions. 982025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 4. Providing Complete Scenario-Based Solutions Relying on the development path of "video-based foundation and innovative fission" the Company has achieved a strategic leap from a single security device supplier to an intelligent IoT solution provider. In recent years collaborating with global partners the Company has actively deepened its presence in vertical industries embraced digital and intelligent trends and promoted deep integration between global business operations and technological innovation. It has continuously strengthened its capabilities in delivering industry-specific solutions across key sectors including smart cities public safety transportation and logistics ecological conservation energy education retail and manufacturing. Tailored to the market demands and industrial characteristics of different global regions the Company has launched industry-focused solutions integrating AI IoT big data and other technologies. For example across regions such as Africa Latin America the Middle East and the Asia-Pacific the deployment of various intelligent monitoring systems and Skynet system has rapidly improved urban management efficiency case clearance rates and early warning accuracy for accidents. Traffic accident rates have gradually declined ensuring road safety and travel efficiency. In Europe the focus is on the intelligent upgrading of high-end commercial and industrial sectors.Meanwhile the Company's digital-intelligent education solutions have supported the digital transformation of education in some overseas regions. They have expanded access to high-quality educational resources to remote areas facilitating remote sharing of teaching materials and promoting educational equity. Through the deep integration of innovative technologies and products such as machine vision thermal imaging and radar with industry applications the Company not only provides a richer portfolio of products but also builds a value system oriented to solving customers' actual on-site challenges. 4.2.3 Social Value Practice The Company has continuously deepened localized integration in fulfilling overseas social value closely integrating technological innovation with regional sustainable development needs and formed a multi-level cross-cultural system of social responsibility practices.In terms of technology enablement and digital inclusion the company launched the "AI for Good" initiative in regions such as Southeast Asia Africa and Latin America using the Open Platform technical training and scenario-based solutions to help local micro small and medium-sized enterprises agricultural cooperatives and public service institutions enhance their digital capabilities.In response to weak communication and power infrastructure in remote areas the Company has developed low-power easy-to-deploy IoT devices and offline AI applications helping communities implement basic security disaster early warning and resource management. In environmental protection and climate action it has joined hands with overseas partners to launch a number of demonstration projects in urban smart water management forest fire monitoring marine ecological 992025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text protection and other fields. In Europe and North America the Company participates in the development of zero-carbon parks and green building standards providing energy efficiency management and carbon footprint tracking systems. At the same time it promotes green initiatives across the global supply chain requiring overseas suppliers to gradually adopt renewable energy and recycled materials. In terms of ethics and governance the Company respects cultural differences laws and regulations in various countries and has established a cross-regional AI ethics review mechanism to ensure that products and services comply with local privacy protection human rights safeguards and social customs. By publishing multilingual social responsibility reports and holding stakeholder dialogues the Company transparently presents the progress and challenges of its overseas operations.Driven by the dual wheels of technology and social responsibility the Company not only exports AIoT capabilities but also deeply integrates into local needs. Through coordinated efforts in public welfare ecological protection industrial development and employment creation it unifies commercial value and social value and advances global sustainable development. 4.3 Innovative Business In recent yearsThe boundaries of the AIoT industry have continued to expandThe company based on a deep understanding of customers' diverse needs and years of accumulation and consolidation in the AIoT field continues to expand innovative businesses to provide customers with richer and more complete solutions. The Company is continually developing innovative businesses by seeking fields with great growth potential and broad market opportunities corresponding talent selection and incentive mechanisms thereby expanding the Company's AIoT industry capability circle. The Company's innovative business mainly includes machine vision mobile robots thermal imaging automotive electronics smart security inspection smart fire control alarms and other relevant businesses. 4.3.1 Machine Vision and Mobile Robots The group's subsidiary Zhejiang HuaRay Technology Co. Ltd. (hereinafter referred to as HuaRay Technology) is a global leading AI-enabled machine vision and mobile robot provider driving digital intelligence upgrade across multiple industries worldwide with full?stack "AI + machine vision + robotics" technologies.HuaRay Technology through deep collaboration between its machine vision and mobile robot service boards has built a complete technical platform covering "visual perception-decision-autonomous execution." The machine vision business provides core components and solutions as the "eye of intelligence" empowering intelligent manufacturing and quality traceability. The mobile robotics business as the "hand of intelligence" enables comprehensive automation of in-plant logistics in 1002025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text factories and warehouses. The two businesses share underlying technologies in AI and robotics creating a strong synergistic advantage.With long-term focus on strategic industries including new energy semiconductors automotive and electronic manufacturing the company provides high-precision high-reliability products and integrated solutions to its key customers meeting their stringent demands for intelligent upgrading.Our products and solutions have served numerous well-known enterprises worldwide maintaining high customer satisfaction and continuously expanding the application ecosystem into high-value industries such as pharmaceuticals and food processing.The company's vision is to continue leading machine intelligence innovation empowering global industries toward a more efficient and intelligent future. As a national high-tech enterprise and a specialized and innovative "little giant" enterprise the company has always insisted on technological innovation. As of the end of 2025 the company has applied for more than 600 patents including more than 300 invention patents and has achieved patent layout in 11 key technology fields such as embedded software image optimization recognition algorithms network transmission navigation positioning scheduling and motion control.The company's machine vision products form a core product matrix covering standard vision products AI vision products 3D vision products and AI algorithm platforms creating a closed-loop ecosystem from underlying technologies to scenario-based applications. Its products and ecosystem partners deeply empower high-end manufacturing sectors including lithium batteries logistics 3C electronics semiconductors and PCBs committed to providing high-precision high-reliability visual perception and decision-making support for industrial automation and intelligent transformation. 1012025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Mobile robot products are mainly used in logistics warehouses and material handling including underride (latent) fork-picking and transfer robots. Through the RCS scheduling system ICS integrated control system iWMS warehouse management system and MCS material control system they can provide functions such as handling stacking and sorting. These products offer end-to-end intelligent solutions for logistics handling across various industries helping customers build smart factories. 4.3.1.1 Machine Vision HuaRay Technology has built a complete technological closed loop in the machine vision field spanning from underlying industrial cameras and image acquisition devices to top-tier algorithm platforms forming a comprehensive visual application ecosystem. Users can either build their own vision solutions based on "standard products + AI algorithm platforms" or choose integrated intelligent products such as AI smart code readers and 3D vision products. The rich product matrix is flexible enough to meet the personalized application needs of thousands of industries. 1. Standard Vision Products Our standard vision products cover the full range of industrial cameras including small-format large- format and line scan cameras as well as frame grabbers and vision controllers. Integrated with our AI algorithm platform we cover all core components for a complete machine vision system: industrial cameras act as the "eyes" converting optical signals into digital images; frame grabbers serve as the "optic nerves"; vision controllers integrated with AI algorithm platforms function as the "brain".As the system's "eyes" industrial cameras perform the signal switch from optical signals to digital images and with built-in ISP algorithms achieve precise image reproduction. Small area scan cameras focus on high-precision local detection; large area scan cameras are suitable for wide-field imaging; line scan cameras like high-speed scanners construct complete images by acquiring data line by line. 2. AI Vision Products Unlike traditional solutions that rely on external industrial cameras for image capture and separate vision controllers for algorithm processing our AI vision products are "cameras with built-in brains".They integrate image capture processing and analysis into a single compact device enabling local visual perception analysis and decision-making. This design delivers greater deployment flexibility and enhanced ease of use.Building on our deep expertise in proprietary AI algorithms and standard vision products we have launched the AI vision product series — primarily including AI code readers and AI smart cameras.This product series deeply integrates AI models and edge computing capabilities with compact cameras lenses and lighting systems achieving full-process functional coverage from "visual perception" to "intelligent analysis". 1022025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3. 3D Vision Products Integrating self-developed high-precision 3D algorithms leading AI capabilities and mature standard vision technologies HuaRay Technology has created a curated portfolio of 3D vision products. This includes intelligent stereoscopic 3D cameras binocular structured light cameras and 3D line laser profile sensors driving the evolution of machine vision from 2D recognition to 3D spatial perception.Unlike 2D vision which only captures planar features 3D vision constructs stereoscopic morphological models containing depth and contour information. This empowers areas such as embodied intelligent robotics high-precision industrial assembly and inspection enabling complex spatial tasks. The company continues to expand its 3D vision product portfolio to drive innovation across key strategic industries.In practice HuaRay Technology's 3D vision products have been widely deployed in industrial scenarios that rely on spatial perception including critical dimension measurement of automotive components welding quality and structural inspection of electronic components as well as cargo positioning and sorting in logistics. With stable reliable and high-precision 3D data they meet the stringent requirements of next-generation intelligent manufacturing. 4. AI Algorithm Platform In an integrated machine vision system machine vision software and algorithms act as the "brain" responsible for processing and analyzing imaging data and forming the critical bridge between visual perception and action execution. The company provides a modular visual AI algorithm platform for machine vision supporting the full development workflow from zero-code rapid configuration to deep customization enabling the leap from visual perception to intelligent analysis.The platform consists of three core subsystems: MVP MVK and MVT. Specifically MVP and MVK endow the system with complete visual processing analysis and decision-making capabilities. MVT focuses on AI model training and the generated models can be deployed on MVP or MVK to address multi-feature visual analysis challenges in complex industrial environments such as process deviations and unpredictable defects. The platform can be deployed in conjunction with the company's standard vision product portfolio to enhance the overall performance of integrated solutions. It also supports compatibility with a wide range of third-party devices demonstrating high compatibility and scalability. 4.3.1.2 Mobile Robots The widely applicable typical intelligent logistics system launched by HuaRay Technology includes industrial mobile robots automatic chargers communication systems (WIFI/5G) warehouse management platforms material management platforms integrated control platforms scheduling simulation platforms and robot scheduling platforms providing smart factories with various solutions such as automatic loading and unloading and goods-to-person sorting. 1. Mobile Robot Software Products 1032025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Huaray Technology RCS Scheduling System: The scheduling system employs self-developed scheduling algorithms including dynamically switchable allocation algorithms under multiple constraints multi-constraint path planning algorithms a separating axis theorem-based safety detection algorithm a multi-strategy fused multi-vehicle traffic control algorithm and a Multi-Agent Path Finding (MAPF) deadlock resolution algorithm. Combined with self-developed AMR device perception and recognition algorithms motion control algorithms intelligent power electronics and high-precision intelligent electric drive algorithms the system enables ultra-large-scale map construction and millisecond-level path planning and can support optimal allocation of over 1000 concurrent tasks with multi-server cluster scheduling. The system provides multi-robot cluster path planning yielding control robot traffic management intelligent task allocation multi-vehicle collision avoidance traffic flow balancing system load balancing intelligent charging management safety monitoring storage location management intelligent operations and maintenance management statistical reporting and other functionalities. With deep roots in industry application scenarios we have launched industry-specific scheduling systems centered on the core philosophy of "More Professional Better Adapted Faster Delivery" including RCS for loop production lines and RCS for internal cell production lines. For key overseas markets we have established localized software platforms to advance the standardization of overseas projects.Huaray Technology iWMS Warehouse Management System: The system is based on the RCS (Robot Control System) scheduling system and the goods-to-person concept and enables goods-to- person picking production-line delivery point-to-point transport line-side warehouse loading and unloading and other automated warehousing and distribution scenarios. It optimizes storage and distribution through core automated strategies such as putaway strategies allocation strategies wave picking strategies and mixed-storage strategies. Combined with wave algorithms efficiency-first algorithms load balancing algorithms dense storage algorithms data operation analysis and business dashboards it further streamlines business processes and inventory management to improve operational efficiency. Dense storage and pallet-on-pallet warehousing functions also significantly boost storage density in warehouses and line-side warehouses. It has been successfully applied in integrated manufacturing warehousing and distribution scenarios such as in-line and off- line logistics for lithium batteries raw material and finished product logistics for photovoltaics RDC for automotive final assembly as well as full-site logistics covering SMT raw materials semi-finished products and finished products in the 3C industry.HuaRay Technology MCS material management system: The system adopts a lightweight architecture to enable rapid deployment and flexible expansion. Centered on configurable process rules it can quickly build numerous line-side pull scenarios by freely combining three core elements: task type scheduling mode and handling strategy adapting to diverse production requirements. In addition the system establishes a sophisticated inventory management system. Through multi- 1042025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text dimensional data correlation such as material number timestamp and coordinate positioning it records inventory changes in detail and realizes full-process traceability of materials from production completion to line reloading. This meets efficient and refined material pull demands and improves line-side logistics management efficiency. 2. Mobile Robot Hardware Products HuaRay Technology's industrial handling robots such as latent lifting transfer and fork-picking robots are equipped with a rich variety of network systems and intelligent charging systems and are widely used in modern warehousing management and production handling scenarios in various industries. In 2025 newly launched fork-type products such as the Tianzi Pallet Mini-Robot and outdoor counterbalance trucks have expanded the application boundaries of the fork-type product range. The latent (underride) product lineup covers typical load scenarios from 60 kg to 3000 kg with certified models complying with CE UL and other international standards which have been widely deployed in the global market featuring quicker installation and maintenance as well as higher operational accuracy. For transfer-type products the new-generation CTR (case-handling robot) has been introduced with richer navigation modes and flexible adaptability to diverse scenarios catering to case-moving demands in the manufacturing industry. By deeply addressing industry-specific requirements our high-precision dual-lift and single-cantilever products have been widely adopted by multiple lithium battery customers. Meanwhile a variety of tow-type products have been launched to meet application needs in the automotive industry.Our products support a full range of navigation modes including laser SLAM navigation visual navigation inertial navigation and multi-sensor fusion navigation. They are compatible with laser obstacle avoidance visual obstacle avoidance and TOF stereo obstacle avoidance. Through multi- dimensional perception they achieve millimeter?level high?precision docking. 5G communications scheduling and control has low latency enabling the expansion of services from indoor to outdoor and has been widely applied in new energy automotive parts electronics manufacturing steel and food industries. 4.3.2 Thermal Imaging With thermal imaging technology as its core Pixfra Technology a subsidiary of the Group provides thermal imaging modules personal vision products complete products platform software and full- scenario digital intelligence solutions to the world. The company's products and solutions are widely used in many fields such as low-altitude economy emergency management industrial temperature monitoring outdoor sports new energy perimeter protection natural ecology environmental protection and urban lifeline. The company is committed to perceiving the world with temperature and developing leading thermal imaging products and full-scenario digital intelligence solutions. 1052025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text In 2025 Pixfra Technology was recognized as: Hangzhou Industrial Design Center Hangzhou Enterprise Technology Center Zhejiang Industrial Design Center Key Enterprise Research Institute of Zhejiang Province and Zhejiang High-Quality Manufacturing Enterprise. It also won the title of National Key "Little Giant" Enterprise in the second batch of national specialized refined distinctive and innovative enterprises and ranked 57th in the 2025 Zhejiang Province Top 500 High-Tech Enterprises by Innovation Capability. 4.3.2.1 Technological Breakthroughs In 2025 Pixfra Technology continued to consolidate its technology foundation and maintain its leading position in core technologies in the industry. The company kept advancing the deep integration of thermal imaging and artificial intelligence. On the hardware side the thermal + visible light dual- spectrum fusion technology has significantly improved target recognition in complex environments while the semiconductor condensation self-cleaning technology effectively solves maintenance challenges for outdoor equipment in harsh conditions. On the algorithm side core AI models including the PIPS 4.0 image algorithm fire and smoke detection perimeter protection and ground feature detection have been successively deployed enabling an upgrade from single-point detection to full- area perception and enhancing the intelligence of thermal imaging applications across industries. At the same time the company's forward-looking deployment of embodied intelligence in the thermal imaging field establishes the product and technical foundation for product-form innovation and market expansion. 4.3.2.2 Product Innovation Pixfra Technology continues to maintain its leading position in industry applications and deepen its deployment in segmented industry scenarios. In 2025 the company completed the development of a posture-sensing PTZ further improving the positioning accuracy of forest fire prevention products. It developed a cooling surveillance system extending the intelligent detection range of thermal imaging to the 20-kilometer level. A lightweight ME PTZ was launched to enhance product competitiveness in power industry scenarios. A multi-lens dome camera for power distribution was developed enabling multiple functions in a single device and exploring applications in the power distribution sector.Additionally large model-powered products were released to further improve detection range and detection rates. 1062025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text In the field of core module products Pixfra Technology has further improved its core product portfolio covering network and digital core types while achieving full coverage of resolutions. With a more comprehensive product lineup the company has laid a solid foundation for full-range cooperation with customers. Its products have been continuously applied in low-altitude economic integration robot integration industrial temperature measurement security integration and other fields steadily expanding its integrated business. Meanwhile the company launched a smartphone plug-in thermal imaging product to explore applications in the consumer market.In the field of personal vision products the company further expanded its product portfolio width in 2025 and released a series of competitive personal vision products. Responding actively to the market demand for portability and light weight the company has been making its products smaller and lighter. Examples include: Draco binoculars Astral handheld all-in-one device Cetus sight and Pegasus 2 sight. 4.3.2.3 Industry Focus In 2025 Pixfra Technology focuses on two major industry areas: emergency management and industrial Temperature Monitoring. 1. Emergency Management Building on its profound expertise in forest fire prevention the company has continuously deepened its layout in the emergency management sector achieving a strategic leap in capabilities from traditional forest and grassland scenarios to more segmented applications such as urban space and cultural heritage protection. The urban three-dimensional fire prevention solution targets fire monitoring in complex environments including high-rise buildings urban residences and commercial areas. The cultural relics and ancient architecture protection solution addresses the safety protection 1072025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text needs of non-renewable cultural heritage. These developments mark the diversified and in-depth expansion of the company's business.In response to business needs the company has launched innovative products such as the posture- sensing PTZ and large-model dual-spectrum cameras and has developed multiple core solution systems for forest fire prevention and urban three-dimensional fire prevention thereby establishing an integrated delivery capability spanning from hardware products to scenario-based applications. The large-model dual-spectrum camera can carry large-model intelligent analysis capabilities in a compact form factor. The high-precision positioning PTZ device integrates technologies such as spatial sensing posture sensing and semiconductor condensation self-cleaning to meet the high- precision positioning requirements of complex environments.Thanks to dual breakthroughs in technological innovation and scenario application the company's relevant businesses have achieved positive progress in both domestic and overseas markets.Overseas it has successfully entered new sectors such as forest fire prevention and waste incineration supervision with steady progress in its global layout. In the domestic market the company has continued to deepen its presence in more than ten key provinces for forest fire prevention and implemented benchmark projects.Going forward the company will continue to conduct technology planning and product innovation centered on AI large models deepen scenario understanding and solution capabilities in the emergency management sector and drive its business to a higher level and broader scope. 2. Industrial Temperature Measurement The company has continuously increased its R&D investment in the application of infrared thermal imaging technology in industrial temperature measurement scenarios further consolidating its leading market position in traditional industrial fields such as electric power and petrochemicals. With the growing demand for smart manufacturing and predictive maintenance the industrial temperature measurement market continues to expand and thermal imaging applications are moving from auxiliary inspection to core production processes. Through non-contact long-distance and large-scale real-time temperature monitoring the technology converts invisible temperature distribution into visualized thermal images enabling accurate perception and intelligent early warning of equipment status process procedures and potential safety hazards.In 2025 the company launched a series of innovative application solutions in the industrial temperature measurement sector including photovoltaic panel inspection and wind turbine patrol management solutions for the new energy industry to effectively improve system efficiency and service life; applications such as body die-casting mold temperature monitoring and spray film quality inspection for automotive manufacturing to achieve precise control and defect prevention in the production process; intelligent monitoring solutions for key links such as production testing and storage in the lithium-ion battery safety field; and a variety of products and solutions launched for 1082025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text scenarios such as warehouses charging piles and electric bicycles in the intelligent fire prevention field which have achieved extensive results in practical applications. 4.3.3 Automotive Electronics Hirige a subsidiary of the Group specializes in smart in-vehicle products and industry solutions.Leveraging its technological advantages in video it focuses on video as the core and has laid out the direction of intelligent driving combined with radar AI perception data analysis and processing and other technologies and is committed to becoming an industry-leading supplier and solution provider of intelligent automotive electronic products with video technology as the core. To date the company has obtained the IATF16949 quality management system certification. In terms of overall product development it has successively acquired key industry certifications for product processes including ISO 26262 functional safety certification ISO/SAE 21434 road vehicle cybersecurity process certification and ASPICE (Automotive Software Process Improvement and Capability Determination) Level 2 assessment. The product solutions comprehensively serve domestic and foreign passenger vehicle and commercial vehicle customers as well as consumers and industry users at all levels. 4.3.3.1 Passenger Vehicle Market Passenger vehicle products are built around the two core capabilities of perception and intelligence with four major product series: intelligent driving intelligent cockpit visual sensors and millimeter- wave radar. Leveraging its full in-house R&D capability across the entire product portfolio the company engages with customers in multi-dimensional cooperation ranging from products to solutions and from deep customization to technology empowerment providing all-around advanced solutions for the automotive industry.In the field of intelligent driving Hirige has integrated cutting-edge autonomous driving technologies into the OEM market launching and further optimizing front-view assisted driving solutions.Specifically the cost-effective entry-level 1V solution has secured additional design wins from mainstream customers achieving new breakthroughs in the intelligent driving business and laying a solid foundation for further in-depth development of intelligent driving technologies and product value.The flagship cost-effective L2+ driving solution 5R1V supports mapless high-speed NOA blind spot monitoring forward/reverse crossing detection and meets the 5-star rating requirements of C-NCAP 2024. Meanwhile it has also launched a lightweight driving-parking integrated solution providing automakers with a more adaptable version of intelligent driving products for the upgrading of their intelligent systems. This solution can realize more complex and reliable driving-parking integrated functions support active safety HWA (Highway Driving Assist) APA (Automatic Parking Assist) and other functions and is well-prepared for future upgrades to higher-level intelligent driving systems. 1092025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text In the field of intelligent cockpits the company has realized the development of cockpit safety systems and cockpit interaction systems and has completed the mass production of various in-cabin visual sensors. DMS and OMS-related products both meet ASIL B functional safety requirements.The cockpit camera effectively avoids crosstalk between DMS and OMS. Meanwhile the company is researching the technical feasibility of integrating intelligent driving DMS OMS and HUD. The cabin safety system supports driver fatigue detection distraction alerts dangerous driving monitoring and child presence detection. Together with customers the company has successfully obtained the first EU regulatory certifications for ADDW and DDAW as well as a 5-star rating in E-NCAP 2024. The cockpit interaction system supports functions such as rear occupant/forgotten object detection gesture recognition emotion recognition and heart rate detection helping customers build distinctive intelligent cockpits and enhance the in-cabin riding experience.In the intelligent driving camera field the company has achieved a comprehensive upgrade of its products with camera pixels gradually moving toward high-definition. It has mass-produced and delivered a new generation of intelligent driving cameras featuring integrated front and rear housing laser welding active PCB alignment and other technologies which effectively lower the production cost of automotive cameras while improving product stability and consistency leading product iteration in the vision sensor industry. At the same time the intelligent driving cameras meet the ecological requirements of mainstream algorithms such as Horizon and Momenta supporting broader platform-based product iteration for customers. In 2025 the company further expanded its cooperation with leading domestic OEM automakers securing supplier designations and achieving mass production for multiple projects increasing market share and laying the foundation for subsequent performance leaps; as its product business expanded the company also made 1102025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text substantial investments in manufacturing plant construction added multiple AA production lines and continued to expand overall capacity to meet the needs of its rapid growth; In the field of millimeter-wave radar the company continued to increase investment to promote technological progress and innovation. In terms of forward radar and blind zone radar the company launched improved microstrip antenna radar products with better performance and completed the development of a new generation of waveguide antenna radar products. The in-cabin vital signs radar has undergone a product iteration with higher performance and lower cost achieving broader coverage of application scenarios while complying with the requirements of ENCAP 2026 regulations. 4.3.3.2 Commercial Vehicle Market China's commercial vehicle ownership has exceeded 20 million units. As the backbone of road transportation commercial vehicles serve as a critical supplement to air rail and waterway transport undertaking massive passenger and cargo transportation nationwide and being closely linked to people's livelihood security. At present traffic accidents involving commercial vehicles occur frequently with safety risks such as casualties and cargo damage becoming increasingly prominent and serious and major accidents happening from time to time. In addition to speeding and fatigued driving the proportion of accidents caused by blind spots continues to rise making it a key issue for industry-wide governance.Today functions such as forward collision warning lane departure warning driver fatigue monitoring and driving behavior analysis have become standard features in active safety and advanced driver assistance systems for commercial vehicles across regions. Hirige gains in-depth insights into actual 1112025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text vehicle operating scenarios and continuously optimizes algorithm performance and operational efficiency in combination with complex working conditions so as to comprehensively improve system stability and intelligence. The company specializes in both OEM and aftermarket smart vehicle solutions. Through its core offerings such as active safety products advanced driver assistance products 360° panoramic around-view system 1R1V solution and others it fully enables the intelligent upgrading of commercial vehicles. To date its products and solutions have been widely deployed in freight logistics taxis and ride-hailing long-distance & tourist coaches dangerous goods transport vehicles heavy-duty trucks public transit school buses sanitation vehicles mobile law enforcement and other sectors. The company provides high-quality automotive electronic products and integrated solutions to customers worldwide.In 2025 the company fully ramped up its efforts in the commercial vehicle market. In the domestic market focusing on core sectors such as public transit taxis and ride-hailing and freight logistics the company continuously upgraded its solutions built comprehensive core competitiveness and successfully delivered a number of benchmark projects including Hangzhou Public Transit China Post Freight and Xiamen Heavy-duty Cargo Transport. In overseas markets the company remains focused on key sectors including public transit police vehicles school buses and freight transportation. Going forward it will prioritize the freight industry launch dedicated new freight solutions to enter core overseas markets fully explore new business growth drivers and build a new engine for expansion.In the commercial vehicle market the company will focus on the core strategy of "concentrating superior resources and deepening key industries" making multi-dimensional efforts to achieve 1122025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text breakthroughs across the board: in the commercial vehicle OEM market the company will focus on launching new national-standard solutions 1R1V schemes EU R151 regulatory components and 360° around-view systems continuously improving its business layout while achieving breakthroughs in securing designated cooperation with multiple leading automakers; in the sectors of "long-distance & tourist coaches dangerous goods transport vehicles heavy-duty trucks" as well as freight transportation it will closely follow the national Beidou-only policy direction fully covering the Beidou replacement business in 32 provinces and accelerating the large-scale application of the new national-standard three-piece suite (ministerial-standard equipment/ADAS/DSM); in the public transit market it will achieve full coverage nationwide from the provincial to prefecture-level cities and fully promote the implementation of the second-generation integrated public transit solution. This solution covers core functions such as public transit dispatching active safety blind spot monitoring 360° panoramic view passenger flow statistics and zebra crossing warning; in the taxi and ride-hailing market it will complete the launch of a full-system product lineup. Taking the implementation of national ride-hailing administration regulations as an opportunity it will further expand its market share in provincial capital cities. 4.3.4 Smart Security Inspection Zhejiang Huajian Technology Co. Ltd. a subsidiary of the Group is a provider and operator of comprehensive smart security inspection solutions. With advanced technologies including artificial intelligence big data and the Internet of Things as its core the company is committed to delivering reliable convenient and intelligent security inspection equipment and services to global users achieving in-depth innovative integration with the security inspection industry.Its products and services cover intelligent walk-through metal detectors multi-energy intelligent X-ray inspection systems intelligent security inspection platforms commercial anti-theft systems intelligent bollards hazardous chemicals detection systems explosion-proof products and others. These have been widely deployed in public venues including airports rail transit medical institutions railway passenger stations large-scale exhibitions cultural relic sites educational institutions and industrial parks. 1132025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 4.3.4.1 Security Screening Machine Huajian Technology specializes in security inspection machines taking independent R&D as its technical foundation and continuously driving industry innovation. The company has achieved successive breakthroughs in high-end security inspection technologies such as intelligent visual analysis material identification and civil aviation standards committing to leading the technological evolution of security inspection equipment. To date 10 of its models have obtained civil aviation certification marking that its R&D capabilities have been recognized at the highest domestic level and signifying the company's official entry into the civil aviation security inspection market.In image processing Huajian Technology has launched a brand-new self-developed image engine – "BlueSky 3.0". Based on the full localization of core components this engine has significantly improved the clarity and layering of imaging and optimized the experience of human-computer interaction and image interpretation. Supported by advanced AI deep learning capabilities the security inspection machines can not only accurately distinguish between organic substances inorganic substances and mixtures but also effectively identify certain types of high-risk contraband such as drugs and explosives. In addition the equipment supports intelligent networking enabling real-time upload of X-ray baggage images and alarm information to the security inspection management platform so as to realize centralized monitoring and data linkage and improve the overall efficiency of security inspection management. 4.3.4.2 Walk-Through Metal Detector Huajian Technology boasts extensive expertise in walk-through metal detector technology. Leveraging its R&D accumulations and rich project experience the company has achieved breakthroughs in the 1142025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text integrated application of high-precision magnetic field detection and AI deep learning. Through intelligent analysis of magnetic field signals the detector can accurately identify contraband such as mobile phones and knives precisely meeting the core market demand for rapid high-throughput screening and shielding of common daily-use metals.The company's independently developed array-integrated imaging millimeter wave walk-through metal detector has received Zhejiang Province's First (Set) Certification. Boasting strong penetration and being harmless to the human body this product can efficiently identify personal items while ensuring safety. It significantly improves the comfort and passage efficiency of the inspection process delivering a more user-friendly security experience for inspected personnel. In terms of the ability to detect tiny metal objects Huajian Technology took the lead in introducing the "half paperclip" detection standard earning wide market recognition with its extreme sensitivity. 4.3.5 Smart Fire Control Group subsidiary Huaxiao Technology is a comprehensive integrated solutions and operations service provider for "safety–fire–electricity" that brings together advanced technology R&D product systems platform capabilities and delivery services. With IoT big data cloud computing video AI and other technologies at its core it is continuously dedicated to providing advanced industry?wide safety products solutions and one?stop operational services to global individuals enterprises and government customers enabling comprehensive safety management in areas such as fire alarm gas detection and smart power usage and improving overall societal safety levels. 4.3.5.1 Fire Protection Products In 2025 the company continued to upgrade the "Changlian" series firefighting product system further enriching the integrated security and fire control product matrix and strengthening effective management of fire safety. For the industrial sector the company focuses on key industry scenarios— power energy storage rail transit and energy & chemical—and has developed and launched explosion-proof and intrinsic safety (IS) traditional fire-protection products aspirating smoke fire detectors multi?band flame detectors multispectral temperature?sensing fire detectors and other related products to meet the needs for early warning early response and remote monitoring and controllability in industrial environments forming an integrated two?tier networked supervisory solution for the Group.In terms of overseas business the company has continuously expanded its presence in the household and commercial fire protection markets. Focusing on products such as AI safety and fire protection cameras industrial special detectors and fire accessories it has been building one-stop fire protection solutions based on cloud and localized services. In 2025 the company's self- developed aspirating smoke detector became one of the first products in China to obtain the 1152025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text authoritative German VdS certification. Through continuous technological accumulation and innovation the company's products have successively obtained extensive international fire protection certifications in Europe the Middle East Southeast Asia and other regions and the products' reliability and stability have also been increasingly recognized by an increasing number of countries markets and customers. 1162025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 4.3.5.2 Solutions In response to fire protection scenarios across various industries the company took the lead in launching an integrated safety fire protection and electrical solution. It promotes the technical architecture of "three-domain integration and three-level linkage" to facilitate the digital and intelligent upgrade of the integrated "safety + energy consumption + operation & maintenance" business helping customers achieve the dual goals of safety management and green development.Based on the strategic upgrade of the integrated safety fire protection and electrical solution the company has continuously advanced the cooperative model of urban operation service centers deploying local service capabilities at the district and county levels. Relying on its products solutions and localized comprehensive fire protection services the company provides owners with one-stop services including safety design construction remote networking operation on duty maintenance safety training fire insurance and emergency response.In the urban lifeline gas safety sector the company focuses on four business scenarios: gas stations pipelines residential and commercial gas use and bottled gas. It monitors and collects real-time data on leaks pressure flow temperature location liquid level and vibration while continuously upgrading its end-to-end overall solution covering the entire business chain. In the fields of finance banking and social governance the company has realized the intelligent upgrade of secondary and tertiary distribution boxes and deployed end-to-end electricity safety monitoring systems in state- owned banks joint-stock commercial banks and rural credit cooperatives.In the future the Company will in alignment with China's "dual-carbon goals" continue to deepen safe electricity solutions. With electrical safety as the foundation the Company will continuously optimize and upgrade solutions for power monitoring energy consumption management energy and carbon management near-zero parks and zero-carbon park construction. 4.3.6 Intelligent Alarm The company provides industry-leading intrusion alarm products and solutions in the alarm business sector. It has accumulated profound technical expertise in radio frequency low-power design passive infrared microwave detection and other fields and has been granted a number of core patents. The company also actively participates in the formulation of a number of national and industrial standards continuously driving technological progress in the industry.Based on long-term industry experience and technological accumulation the company integrates AI technologies with traditional sensing technologies and has successfully launched the Aegis and Fortress series products which have obtained the highest-level certification in China's alarm industry as well as the European EN50131 standard certification. In addition leveraging its strengths in cloud services the company has realized the integration and interconnection of alarm systems with video access control intercom and other systems and integrated comprehensive security functions such as 1172025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text fire alarm early warning. This forms an all-in-one solution that effectively enhances the overall operational capabilities of alarm service providers.The alarm business covers three major areas: wireless alarm wired alarm and IoT alarm providing customers with comprehensive products and solutions. In the wireless alarm segment the company focuses on residential and SMB scenarios. Leveraging its self-developed wireless AirFly technology stack and low-power technology it enables flexible deployment and long-term stable operation while driving the rapid growth of overseas business. In the wired alarm segment it provides stable and reliable medium and large-sized alarm system solutions for supermarkets finance buildings cultural relics institutions and other industries. In the IoT alarm sector the company focuses on deep industry applications. By integrating multiple communication protocols and IoT sensing technologies it enables cross-system intelligent linkage of equipment which has been successfully applied in various industry scenarios such as computer room power and environment monitoring construction site environment monitoring and water conservancy drainage management. 4.3.6.1 Wireless Alarm The company continues to focus on its wireless business centered on cloud services comprehensively upgrading the experience for end users installers and operation and maintenance personnel through simplified deployment optimized configuration and improved O&M efficiency. By refining core wireless capabilities it has realized batch configuration of wireless devices making installation 2.5 times more efficient; optimized device power management has extended battery life by 20%–30%. Through continuous technological innovation the company delivers more accurate identification and smarter experiences to users. By deeply integrating video AI algorithms passive infrared radar and 1182025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text other multi-dimensional sensing technologies detectors have significantly improved alarm accuracy in complex environments. The cloud platform supported by the Xinghan large-scale AI models and integrated with low-code and operation & maintenance platforms builds an efficient and intelligent cloud base. It delivers intelligent experiences for users including large-model false alarm filtering and AI O&M assistant.The company has continuously improved the AirShield product portfolio launched a variety of professional wireless detectors and introduced hybrid alarm solutions to meet the needs of diverse scenarios. In the meantime it has rolled out a converged solution centered on alarm operation realizing the interconnection of video surveillance alarm response and intercom systems to achieve integrated alarm receiving and verification. 4.3.6.2 Wired Alarm Wired alarm products are closely aligned with industry characteristics and customer demands with continuous performance iteration. The product family includes the Fortress series alarm control panels wired detectors expansion modules and other accessories all designed and manufactured to industrial-grade standards. Featuring high concurrency low latency and strong anti-interference capabilities they meet the requirements of high-security-level deployment. Supported by a diverse detector matrix covering infrared dual-tech smoke detectors glass-break detectors and more the solutions are precisely tailored for key scenarios such as large commercial complexes financial institutions and museums. They enable real-time perception and rapid response to intrusion alarms forming a closed-loop protection system.The perimeter protection product line focuses on high-level boundary security demands building a solid physical defense line. The product portfolio covers three core systems: electronic fences tension fences and vibration optical fibers. Through seamless integration of physical barriers and intelligent early warning it forms a full-link closed-loop management from intrusion detection real- time alarm to linkage response. Perimeter products effectively make up for the shortcomings of traditional video surveillance in boundary blind spots harsh weather low-light night conditions and other scenarios providing all-weather full-coverage and highly reliable perimeter security. 4.3.6.3 IoT Alarm As a key application integrating the Internet of Things and security management IoT alarm technology is developing rapidly alongside technological iteration and upgraded security supervision requirements. Technologically advances in networking low-power design and AI algorithms continue to expand the application scenarios of alarm systems. Industrially the growing demand for real-time early warning in smart cities digital equipment rooms forest fire prevention and other fields has made IoT alarm a security cornerstone in the digital transformation of various industries. 1192025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text In security supervision fields such as emergency response electric power and railway transportation we deeply explore business scenario requirements continuously optimize product performance and launch a series of dedicated products including environmental monitoring all-in-one devices equipment room inspection all-in-one devices and IoT master controllers. These products can collect real-time data on power systems (mains power distribution UPS storage batteries) environmental parameters (temperature and humidity water leakage air conditioning and ventilation) and security data (fire protection access control intrusion alarms). Supported by intelligent algorithms they enable remote monitoring and control helping enterprises achieve energy conservation automatic inspection process optimization and safety supervision. This effectively improves the operational efficiency and security of data centers while significantly reducing operation and maintenance costs.In water conservancy water affairs natural resources and other fields we focus on core industry demands and provide precise digital and intelligent solutions. The urban drainage intelligent monitoring system enables real-time monitoring of pipeline network operation providing decision support for urban waterlogging prevention and control. The dam safety intelligent monitoring system realizes dynamic early warning for dam structural safety. The rain and water regime dynamic sensing scheme provides real-time data support for flood control and drought relief command. The forest fire prevention intelligent monitoring and early warning system can detect fire hazards in a timely manner and realize early intervention. These solutions have comprehensively enhanced the intelligent monitoring level of relevant industries providing solid technical support for the safe operation of cities the scientific management of water resources and the protection of the ecological environment.Going forward the company's alarm business will continue to focus on technological innovation and scenario application deeply integrating key technologies such as multimodal sensing AI visual analysis and cloud large-model intelligent decision-making. It will further deepen its presence in home security environmental safety accident prevention and control health monitoring and other scenarios. We will be committed to building more efficient safer and smarter alarm systems and solutions with the mission of "technology-driven security" to provide protection for the safety management and better lives of customers worldwide and to promote the industry's continued development toward intelligence and integration. 4.4 Ecosystem Openness and Cooperation Ecosystem cooperation is a long?term development strategy of the Company which has long been committed to building a win?win ecosystem and creating value together with its partners. The Company's purpose is to achieve customer success anchoring on serving customer value realization building comprehensive open capabilities from technology business to services and being fully open to industry customers and developers through hardware software algorithms services and business ecosystems. We work with ecological partners to open up new areas create new momentum and 1202025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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. 4.4.1 Business Opening and Ecosystem Cooperation 4.4.1.1 Integrating Customers' Business Ecosystem The Company continues to deepen the development of the integrator cooperation system and targeted resource investment turning the win-win cooperation concept into implementable value creation actions and fully promoting the capability upgrading and win-win business development of its partners. To further improve customer operation quality optimize business structure and focus on high-quality growth the Company has prioritized strengthening customer service support. On the one hand digital tools are adopted to empower frontline teams enabling rapid response to customer demands and improved efficiency in business opportunity conversion. On the other hand more targeted industry resource packages are provided to core partners so as to jointly deepen efforts in segmented sectors and upgrade cooperation from "project-based cooperation" to "strategic partnership".The Company integrates full-link resources including product R&D solutions and marketing channels and establishes a "hierarchical operation system for value customers". Dedicated service teams and resource prioritization mechanisms are allocated for corporate-level and provincial-level partners achieving dual improvements in resource allocation efficiency and partnership stickiness. In terms of marketing and empowerment the Company continues to promote Dahua Online enriching promotion content for products and solutions. Offline it regularly holds "circle activities" covering technology business service and other capabilities promoting all-round in-depth integration with integrator partners in joint R&D market expansion and service construction. The breadth and depth of cooperation have been significantly improved. 4.4.1.2 SMEs' Business Ecosystem Facing the complex and changing market environment and continuously upgraded industry demands the Company takes "local operation and district and county lower-tier" as the core of its SME ecosystem strategy continuously enhanced customer value expanded market coverage horizontally deepened market penetrating power vertically and continuously optimized the channel ecology. We have promoted the in-depth development of small and medium-sized enterprise business towards refinement scenario-based and digital and intelligent transformation. Leveraging AIoT technologies we empower millions of SMEs in their digital and intelligent transformation and build a symbiotic prosperous and sustainable channel ecosystem. 1212025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 4.4.1.3 Industry Customers' Business Ecosystem The company focuses on government digital transformation through comprehensive cooperation such as hardware openness software collaboration and service support the company has formed an end-to-end closed-loop co-creation capability with ecosystem partners from product R&D to solution deployment which both enhances the competitiveness of overall solutions and creates significant incremental business for partners. In the smart water conservancy sector relying on an integrated "space-air-ground-water" sensing system the Company integrates video surveillance with professional sensor data from ecosystem partners to realize intelligent monitoring of reservoirs rivers lakes and other scenarios significantly reducing users' operation and maintenance costs. In smart agriculture through in-depth cooperation with spectral technology partners the Company has developed intelligent monitoring equipment with an observation radius of 300 meters that supports more than 10 spectral indices providing accurate data support for crop growth analysis and other scenarios. In administrative services focusing on scenarios such as gas station supervision and smart elderly care the Company helps customers upgrade their businesses and expand fields through technology empowerment. In smart ports the Company has joined hands with partners to launch special cameras for remote control of port machinery. With innovative designs including corrosion resistance vibration resistance and ultra-low latency these cameras outperform imported alternatives facilitating the domestic substitution of port remote control systems. In the smart transportation sector the Company has partnered with its partners to develop a comprehensive multi-functional traffic monitoring station solution that integrates AI video and LiDAR data. The solution has been deployed across multiple provinces significantly enhancing partners' competitiveness and market share.For enterprises' digital and intelligent upgrading the Company takes root in digital scenarios integrates ecological capabilities in segmented fields and serves scenario-based digitalization with the goals of "building a comprehensive security system forging digital productivity and enhancing operational decision-making". For instance in the industrial and commercial business sector it has joined hands with ecosystem partners to develop professional solutions for enterprise parks logistics warehouses digital workshops digital stores and intelligent marketing empowering enterprises to build new quality productive forces and improve operational efficiency. In the financial sector it collaborates with ecosystem partners to explore financial scenario applications comprehensively upgrading service quality at bank branches and improving user experience. Meanwhile leveraging its strengths in IoT sensing artificial intelligence and other fields the Company provides core foundational capabilities to ecosystem partners in segmented industries supporting their industry application development and implementation. In the culture education and healthcare sector it offers comprehensive IoT and AI capabilities to partners empowering industry digitalization through 1222025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text technological and business cooperation. In the energy sector it provides visual perception technologies to drive vision-based applications in scenarios such as hazardous operations inspection and unattended monitoring. 4.4.2 Technology Opening and Ecosystem Cooperation 4.4.2.1 Software Open Platform and Ecosystem Cooperation In its technology openness system the Company relies on its core capabilities accumulated in the three key areas of IoT sensing visual intelligence and data intelligence. It continuously expands the boundaries of capability openness for software ISV partners steadily enhances cooperation friendliness and reduces the technical integration threshold for partners. Meanwhile in response to partners' technical demands the Company keeps optimizing the delivery of open capabilities and enriches its ecosystem of products and solutions. It has established a multi-level flexible open system of "interface-component-module-product-solution". Driven by both technology and market the Company has built an integrated visual capability openness system tailored to diverse cooperation scenarios.Regarding technical support the Company provides partners with comprehensive technical services empowerment support training and certification programs continuously lowering learning costs and helping partners efficiently absorb and apply openness system capabilities to achieve win-win cooperation. Through value co-creation and sharing mechanisms the Company continuously deepens the breadth and depth of technical cooperation with partners ultimately forming a highly trustworthy stable and win-win technological ecosystem.In terms of market collaboration the Company precisely categorizes partners' needs based on regional industrial and customer characteristics engages in targeted cooperation and continuously explores and refines efficient cooperation models to ensure sustained value creation for partners. By building tiered customer operation organizations sharing channel resources establishing an ecosystem product shelf and conducting joint marketing and brand partnerships the Company promotes the collaborative implementation of solutions and joint technological innovation between both parties. In addition adhering to the "Partner First" principle the Company provides early-stage R&D resource support deepens close cooperation with various provinces takes the initiative to engage in frontline ecosystem scenarios communicates directly with partners and shares technical insights further consolidating long-term cooperative relationships.In 2025 the Company set up a special team which leveraged digital systems to deliver full-process support facilitating the orderly rollout of software ISV ecosystem operations. Building on its prior business accumulation the Company has realized the efficient replication and steady expansion of its 1232025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text business model with its business covering multiple core provinces nationwide further consolidating its overall market layout. 4.4.2.2 Hardware Open Platform and Ecosystem Cooperation The Company continues to advance its hardware ecosystem openness strategy focusing on the two core dimensions of device operating system capability openness and device access capability openness. It comprehensively builds an independent controllable open and integrated technology foundation accelerating the large-scale implementation and value release of the AIoT ecosystem. 1. Deepening the openness of device operating system capabilities and building a dual-drive system of independent controllability and ecological integration The Company places equal emphasis on opening up its internally developed system capabilities and integrating with mature external open-source ecosystems fully supporting the diverse needs of AIoT scenarios and accelerating industry digital transformation.Opening up in-house system capabilities and building a hardware open platform with decoupled software and hardware: Based on a software-hardware decoupling architecture the Company has built the Dahua Hardware Open Platform (DHOP) which fully opens up multiple foundational service capabilities including multimedia processing system resource management and AI acceleration engines. It is accompanied by a complete full-lifecycle development toolchain covering model conversion compilation packaging debugging and operation/maintenance significantly lowering the integration barrier for third-party developers and improving ecosystem collaboration efficiency.DHOP fully supports mainstream domestic chip systems laying a solid foundation for independent and controllable localization and achieving full coverage of the product matrix from front-end cameras and building terminals to storage devices. To date DHOP has established in-depth cooperative relationships with numerous domestic and foreign industry ecosystem partners jointly developing intelligent applications covering various industry scenarios such as public well-being enterprise parks and energy and power. These applications effectively meet the business needs of end-users support the in-depth layout of vertical solutions across multiple product lines and help drive sustained growth in sales volume and steady improvement in market penetration. Meanwhile the Company actively participates in the development of national industrial and group standards takes the lead in or participates in the compilation of multiple equipment hardware open standards continuously enhances the influence and discourse power of its open capabilities in the industry and promotes the standardized and normalized development of the industry.Integrating with mature open-source ecosystems and engaging in in-depth collaboration with openEuler and HarmonyOS ecosystems: Actively responding to the national strategy for information technology application innovation the Company has fully integrated into mainstream open-source ecosystems such as openEuler and HarmonyOS. 1242025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text With respect to the openEuler ecosystem the Company has completed full-stack adaptation for more than 100 products and achieved large-scale deployment fully supporting system switching across all scenarios. It deeply participates in community technical seminars and summit speeches and engages in joint innovation around key technologies such as system migration container mixed deployment programmable kernels large model training and inference optimization and intelligent networks significantly improving the performance and reliability of basic software and hardware. The Company has obtained multiple openEuler OSV and hardware compatibility certifications. Together with the China Financial Certification Authority (CFCA) it has launched a secure boot solution based on national cryptography algorithms further consolidating the security foundation of the system. For its global layout the Company joins hands with the openEuler community to advance its technology globalization strategy. Under the Belt and Road cooperation framework it focuses on expanding into emerging markets such as the Middle East and South America building overseas benchmark cases for domestic operating systems and supporting the international expansion of China's open-source ecosystem.In terms of the HarmonyOS ecosystem the Company actively participates in industry organizations including the OpenAtom Foundation and the HarmonyOS Ecosystem Promotion Committee and deeply advances technical collaboration with hardware manufacturers and software service providers.By the end of 2025 6 categories totaling 62 hardware products had passed open-source HarmonyOS certification and 6 HarmonyOS apps were released covering key scenarios for government enterprises end users and engineering implementation; at the same time multiple products passed proprietary industry HarmonyOS certification enabling efficient support for the tendering and bidding requirements of multiple localization key projects. The Company continues to conduct technical pre- research on the HarmonyOS and build talent reserves establishing a solid capability foundation for domestic substitution. 2. Deepening the opening-up of device access capabilities and building an integrated empowerment system of device-edge-cloud collaboration Focusing on the device connection needs in diverse scenarios the Company continuously promotes the standardization platformization and ecologicalization of device access capabilities. Through cross-platform protocol system access and diverse integration paths it realizes rapid device access efficient cloud-device collaboration and agile business innovation.Integrating an open-protocol system and building standardized full-scenario device connectivity: The Company has built an access system centered on open protocols forming a unified protocol system covering multiple scenarios such as video network devices IoT devices and cloud-edge collaboration. 1252025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Video network access protocol: Targeting platform-level integration scenarios it provides basic interfaces such as device management audio and video transmission and intelligent analysis as well as rich industry business interfaces (e.g. alarm linkage access control inspection scheduling etc.). It comprehensively presents device capabilities realizes safe efficient and stable full-link connection and significantly improves the docking efficiency of third-party systems and the efficiency of cloud-device collaboration.IoT access protocol: In response to the heterogeneity and resource constraints of IoT devices a lightweight thing-model mechanism has been designed to provide a unified efficient convenient and secure lightweight access solution. It supports a full-life-cycle engineering toolchain covering product design development testing and production facilitating rapid integration and evolution of third-party devices.Diversified integration methods and creation of flexible and scalable full-stack access paths: To meet diverse needs across different technology stacks deployment modes and integration depths the Company provides multi-level access modes.Device network SDK: A cross-platform unified device network SDK has been provided supporting local and remote control of the full range of hardware products. It empowers developers to implement remote control and in-depth integration such as device discovery and configuration management helping ecosystem partners efficiently complete secondary development.Device gateway: As a core data hub the device gateway supports multi-protocol conversion and cross-platform data forwarding enabling centralized management and data integration of heterogeneous devices. In 2025 it served nearly 1000 security enterprises worldwide across 11 major overseas markets further consolidating the Company's leading position in global security connectivity. 4.4.2.3 Algorithm Opening and Ecosystem Cooperation In the wave of digital transformation artificial intelligence has become the core driving force for promoting industrial upgrading improving production efficiency and enhancing innovation capability.To meet the growing scenario-based needs of customers and partners across various industries the Company is committed to building an open and collaborative AI industrial ecosystem. Through algorithm openness and in-depth cooperation we have established an industrial ecosystem featuring technology sharing capability complementarity and value circulation. Together with more partners and industry customers we help accelerate the intelligent transformation of all sectors. 1. Mature Algorithms and Ready to Use Out of the Box Through long-term industrial practices the Company has accumulated a wealth of mature and competitive algorithms featuring wide variety excellent performance ease of use and low hardware deployment costs all available for direct use by ecological partners. Based on the business 1262025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text development needs of ecological partners the Company opens up general algorithms including object detection object capture license plate recognition perimeter protection animal detection and garbage detection to help partners with product deployment and the Company also provides guidance on algorithm application and tuning based on its own business experience enabling partners to rapidly expand their businesses. 2. AI open platform: empowering partners to build autonomous AI capabilities For users with low thresholds and no algorithm capabilities they only need to input relevant data on the AI open platform to efficiently complete the desired algorithm function development with a low threshold help build users' algorithm development capabilities enable users to develop independently and implement it in products for commercial realization. AI Open Platform provides partners with a one-stop graphical AI algorithm development platform that offers flexible deployment zero-code development efficient training online validation and one-click deployment. 3. AI open toolchain: accelerating the commercialization of partner algorithms It is mainly aimed at customers who can develop algorithms themselves but cannot develop producthardware. Users can develop algorithms through self-research and then use the “Genius AIAlgorithm Deployment Platform" to deploy the developed algorithms to the Company's hardware products and use DHOP to implement the development and implementation of business software products and quickly productize the algorithms. 4. Introducing ecological algorithm partners to better meet industry-specific scenario algorithm needs The company while continuously consolidating its core algorithms and engineering capabilities further improves its input?output efficiency according to business development needs strengthening cooperation with ecosystem partners in industry subsegments and introducing third?party algorithms that have unique advantages within those subsegments. Relying on the Company's mature engineering platform we rapidly integrate and deliver cost-effective intelligent products and solutions to efficiently meet the diverse algorithm needs of industry customers creating value and sharing commercial success together with ecosystem partners. 4.4.3 Service Opening and Ecosystem Cooperation The Company continues to build an open and win-win service ecosystem. It has established more than 300 school-enterprise cooperative training centers worldwide cultivating and delivering skilled professionals in the AIoT field for the industry and ecosystem partners. This lays a solid talent and service foundation for the efficient implementation of customer requirements and the sound operation of the market. The Company has launched the Dahua Ecosystem Training Center achieving a strategic upgrade from discrete technical empowerment to in-depth full-business enablement. It 1272025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text comprehensively helps partners expand their business scope and improve project delivery efficiency while continuously ensuring end-customer experience and satisfaction with professional capabilities.Meanwhile the Company continues to strengthen the promotion and implementation of its service ecosystem fully advancing the visualization and standardization of end-to-end operations and steadily enhancing the capability and efficiency of ecological services. In the domestic market the authorized service network covers more than 200 secondary offices with an overall coverage rate of over 90% achieving full coverage in core regions. In overseas markets the Company has steadily promoted the standardized and systematic operation of its service ecosystem with core-region coverage increasing by more than 60% year-on-year. The global service network layout has been continuously improved and its comprehensive service capabilities have achieved leapfrog growth.II. Industry Overview during the Reporting Period In 2025 the domestic market operating environment improved the pace of digital and intelligent spending stabilized and implementation of special-purpose bonds and key projects accelerated effectively boosting demand for digital-intelligent transformation in the public sector and among enterprises; overseas markets still faced challenges such as regional trade restrictions and geopolitical volatility but demand in emerging economies remained strong and the deepening globalization of Chinese companies provided stable growth momentum for overseas business.The new generation of artificial intelligence centered on large models multi modality and end device- cloud collaborative cognitive intelligence has entered the stage of large-scale industrial application becoming the core growth engine for the digital economy and AIoT industries. Large models have evolved from technical demonstrations to scenario-based lightweight applications and device-edge- cloud integrated deployment. Coupled with the rapid maturity of technologies such as RAG and Agent they have significantly reduced the cost of intelligent implementation across industries enhanced decision-making and autonomous capabilities and driven the upgrade of AIoT from "passive sensing" to "active cognition and autonomous decision-making" thus unlocking substantial industrial value potential.The AIoT industry is built on visual perception centered on large models and focused on industry scenarios. It deeply integrates the full-link capabilities of perception cognition decision-making and execution achieving large-scale penetration in urban governance transportation energy manufacturing and other sectors. The industry has shifted from peripheral system integration to the core of production operation management and decision-making with continuously strengthened technical and scenario-based barriers. Meanwhile the market-oriented allocation of data factors is being accelerated. As a new factor of production data has made substantial progress in compliant rights confirmation circulation and trading and value realization. This has driven the industry to 1282025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text expand into data services and operation services further upgrading its business connotation and business models.With the implementation of policies such as the Digital China initiative and the new-type industrialization demand for urban intelligent construction and enterprise digital-intelligent transformation has been further unleashed. Deep integration of AIoT with the real economy has shifted the industry from scale expansion to high-quality high-efficiency and high-value growth with broad long-term growth prospects.III. Core Competitiveness Analysis Faced with the increasingly diverse fragmented and customized characteristics of the AIoT industry the Company closely focuses on the digital and intelligent transformation needs of cities and enterprises. It continuously strengthens its technical capabilities to adapt to diversified scenarios expands its product portfolio optimizes marketing models and deepens business penetration forming a multi-dimensional coordinated development strategy. Through continuous iteration and optimization in R&D marketing supply chain delivery and services the Company has systematically built unique competitiveness adapted to the diversified and fragmented market. Together with its partners it promotes the sustainable and high-quality development of the industry. 1. Upholding technological innovation as the driving force to facilitate the intelligent upgrading of industries Amid the digital and intelligent transformation wave technological evolution industry demands and business models keep changing. The Company always takes technological innovation as its engine continuously increases R&D investment and fully builds holographic perception capabilities through multi-modal fusion of video audio text thermal imaging X-ray IoT sensing and industrial interconnection achieving a critical leap from "perceptual intelligence" to "cognitive intelligence".Anchored in "user demand definition and customer value closed-loop" the Company fully promotes the development of the large-model Infra system with deep industry penetration and the large-scale deployment of industry agents. This supports the construction of a modern urban smart governance system empowers the digital and intelligent transformation of enterprises and drives the industry to upgrade from business visibility to value insight. 2. Comprehensive Global Layout of Marketing and Service Systems The Company has established a comprehensive global marketing and service system with extensive network coverage and continuously deepened operations. As of the end of 2025 the company had established 75 overseas subsidiaries in major countries across all continents set up more than 200 domestic offices and its products and solutions serve more than 180 countries and regions worldwide. 1292025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text In the domestic market the Company continues to expand customer coverage push business penetration toward small and medium-sized enterprises deepen engagement with key industry customers and steadily eliminate service blind spots. By building a win-win ecosystem and focusing on developing diversified ecosystem partners the Company helps partners achieve sustainable innovation and growth.In overseas markets the Company's extensive and in-depth distribution network has laid a solid foundation for the steady growth of its core business while its brand influence continues to rise.Relying on localized sales networks global logistics and after-sales service systems the Company continuously explores new business opportunities enhances the adaptability of its solutions to local markets and steadily increases the proportion of solutions in overseas revenue. Through continuous development of its international business and management team the Company improves localized operation and expansion capabilities and deepens its global market layout and influence. 3. Continue to deepen intelligent manufacturing construction and promote ecosystem collaboration to facilitate efficient supply Committed to the supply chain strategy of global layout digital-driven flexible manufacturing and quality first the Company builds an efficient agile and resilient smart supply chain system to support its rapid business growth. It delivers stable and reliable product supply and service assurance to customers further consolidating its competitive advantages in the global market.Relying on the global supply chain network the Company links R&D marketing and supply chain to form a collaborative delivery system. Through strategic inventory stocking supplier diversification and risk early warning mechanisms it effectively responds to market fluctuations and external uncertainties ensuring stable and reliable delivery. It has deployed asset-light manufacturing centers and hub warehouses in key regions worldwide. Coupled with intelligent logistics route planning and multimodal transport this ensures fast and accurate delivery of products to destinations across the globe.In the field of smart manufacturing the Company deeply integrates IOT big data and AI technologies to continuously build automated and digitalized smart factories. It has established flexible production lines that can flexibly handle customized orders of diverse varieties and small batches enabling quick line changeovers and efficient intelligent production scheduling. By introducing intelligent systems such as AGVs and vision equipment the Company realizes full-process automatic delivery and real- time traceability from material distribution to finished product packaging significantly improving operational efficiency and advancing smart logistics.By aligning closely with customer needs and enhancing their quality experience the Company continuously advances the integrated application of AI and digitalization to achieve outstanding product quality. It strictly controls material quality to strengthen full-process quality control capabilities and builds an end-to-end systematic foolproof quality system. 1302025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 4. Improving Delivery and Service Capabilities and Delivering Great Client Experience The Company has always been anchored in the core goal of building a globally leading efficient and professional delivery platform with the fundamental pursuit of creating ultimate delivery and service experiences. It continuously refines an integrated delivery and service system covering all markets and entire businesses including four core segments: project delivery technical support customer service and ecosystem enablement realizing the systematic and standardized upgrading of full-link service capabilities. Supported by a three-tier service network—centered on the global delivery and service hub in Hangzhou connected by provincial and regional service centers at home and abroad and extended through city & district-level and national service touchpoints—the Company deeply integrates digital and intelligent delivery tools to provide global customers with precise intelligent end- to-end services and customized solutions comprehensively strengthening dual guarantees for service quality and delivery efficiency. To date the Company's service network covers more than 180 countries and regions. It has strategically established over 10 spare parts distribution centers and more than 170 spare parts stations with a professional delivery and service team of over 2500 members. With globally distributed and locally rooted service capabilities the Company fully ensures rapid response efficient implementation and full-process control of delivery and service operations.With the rapid evolution of AI engineering and its deeper industrial implementation the technical complexity and scenario adaptation difficulty of project delivery continue to rise. To precisely match the growing demand for AI technology deployment and customized scenario requirements across industries the Company has established an AI Engineering Delivery Capability Center in Hangzhou.This center enables agile response and efficient deployment to meet customers' diverse AI implementation needs improving delivery efficiency ensuring delivery quality and enhancing scenario adaptability for AI engineering projects. 5. Continuously building a risk-oriented compliance management system that centers on legal entities carrying business operations and covers all employees and effectively ensuring the compliant operation and steady development of the Company's businesses worldwide Adhering to integrity in business operations upholding commercial ethics and complying with the laws and regulations of the countries where the business operates are the core concepts that the Company has always advocated and practiced. In the context of global business operations the Company attaches great importance to compliance in business development and operational processes and continuously enhances its risk governance level. In 2025 the Company successfully passed the recertification audit of the ISO 37301 Compliance Management System conducted by the British Standards Institution (BSI) further verifying the scientificity and effectiveness of its compliance management system. Meanwhile aligning with the trends and dynamics of Chinese and foreign compliance regulations the Company will continue to deepen its risk prevention and control and governance work in various compliance areas such as cyber security and data protection export 1312025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text controls and economic sanctions anti-bribery and anti-corruption science and technology ethics anti-monopoly and anti-money laundering to ensure that the goals and focus of compliance work are in resonance with the risks and challenges brought to the Company by changes in the internal and external environment and to effectively play the value of the compliance management system in safeguarding the steady development of the business.As the Company's global business layout continues to expand it has maintained a prudent business strategy. It has further strengthened its "one country one policy" compliance risk management mechanism enhanced risk control capabilities across all compliance areas and improved the compliance management organizations and operating mechanisms of its domestic and overseas branches. By fostering a company-wide compliance culture the Company continuously elevates its compliance capacity for global operations and effectively guards against major compliance risks.IV. Main Business Analysis 1. Overview The Company is a world-leading provider and operator of video-centric AIoT solutions and services.The company is driven by technological innovation and focusing on the digital and intelligent transformation and upgrading of cities and enterprises continuously promotes city operations to move from improving city management to efficient city governance; from ensuring orderly operations to autonomous city operation; from enhancing public safety to upgrading the safety system; and from ecological-environment monitoring to ecological collaborative governance. It advances enterprise operations from optimizing safety systems to building a comprehensive security system; from increasing production efficiency to forging digital and intelligent productivity; and from assisting business management to enhancing business decision-making capability. The company is committed to making society smarter and life better.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 32.744 billion an increase of 1.75% year-over-year; net profit attributable to shareholders of the listed company reached RMB 3.858 billion an increase of 32.77% compared to the same period last year. Main business strategies of the Company include: 1. Prudent and solid growth strategic transformation commitment to high-quality development The Company centers its efforts on the key priorities of promoting high-quality growth adjusting structure strengthening ecosystem enhancing competitiveness and improving workforce efficiency.It takes growth as the top priority while pursuing quality growth exploring value customers and high- 1322025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text value industries and strengthening input-output management. It focuses on core self-developed high-value AIoT products and solutions and adjusts its product portfolio and customer structure. The Company adheres to a long-term ecosystem development strategy to achieve co-construction coexistence and win-win results with partners. It promotes refined management emphasizes execution streamlines processes and continuously improves organizational efficiency. With excellence as its working standard the Company impresses customers with premium products and services to achieve scalable and replicable development. 2. Deepening business deployment by focusing on segmented scenarios for cities and enterprises Against the backdrop of accelerated government digital transformation the company centered on four major objectives—public safety orderly cities improved governance efficiency and a better quality of life—prioritizes deployment in new industry opportunities such as transportation infrastructure digital transformation natural resources smart water conservancy and smart agriculture gaining deep insights into industry scenario requirements and continuously building industry-leading product and solution capabilities. It also promotes the application of the Xinghan large-scale AI models in scenario- based industries including public security smooth traffic urban governance and natural resources. By unlocking the core value of AI through scenario-based implementation the Company injects sustained AI-driven momentum into urban digital innovation improves urban management efficiency and scientific decision-making and supports the government in achieving precise governance and efficient services.The enterprise business has further penetrated into the core areas of operation management and production achieving breakthroughs and large-scale deployment in key industries including electric power petrochemicals non-ferrous metals industrial manufacturing education and cultural tourism.The Company firmly advances its dual-engine strategy of scenario cameras + large models focuses on core corporate demands such as quality improvement efficiency enhancement green development and safety and continuously deepens its digital-intelligent upgrading service capabilities. We have built an integrated digital-intelligent capability system that covers full-domain data element perception enhanced multimodal intelligent computing and cognitive capabilities and full-dimensional data support for scientific decision-making. This provides a solid foundation for industrial digital transformation. In collaboration with partners across the ecosystem we launch full-scenario implementable and replicable products and solutions for various industries effectively empowering the real economy and helping enterprises of all types achieve higher-quality and more sustainable development. 3. Upgrade large model capabilities and Promote AI industrialization and deployment During the strategic transformation of AI technology from the training era to the inference era the Company has strategically built a vision large model ecosystem with a forward-looking perspective established three core capability series (V/M/L) and achieved a paradigm shift from perceptual 1332025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text understanding to autonomous decision-making. Breaking the limitations of traditional single-point intelligence the Company adopts a multi-agent collaborative architecture to develop digital employees equipped with industry cognition and execution capabilities enabling AI to evolve from an auxiliary tool into a primary value creator. Based on its self-developed domestic Infra computing framework the Company has built an edge-cloud elastic computing power network achieving balanced computing power distribution and optimal inference efficiency. Facing the wave of industrial intelligent transformation we focus on "small but sophisticated" vision model architectures and industry knowledge enhancement technologies. This enables large models to maintain high accuracy while reducing inference costs truly achieving industrial-grade applications featuring high precision low latency and strong comprehension. Moving forward the Company will continue to deepen its "Cognition + Action" dual-wheel drive strategy accelerate the translation of large model breakthroughs into commercial applications provide a solid intelligent foundation for the digital and intelligent transformation of all industries and lead the AI industry into a new era of autonomous intelligence. 4. Strengthening digital intelligence middle platform capabilities to achieve a high-quality sustainable software hub and closed-loop ecological value Driven by the integration of the dual middle platforms to promote the capability leap of large models the Company deeply integrates the digital intelligence middle platform and the vision middle platform to build an industry-specific intelligent infrastructure. Different from the generalization path of general- purpose large models we focus on the full-link integration of vertical field algorithms realizing an end- to-end closed loop from data collection model training and optimization to inference deployment. This enables industry agents to accurately grasp business semantics and scenario logic. The digital intelligence middle platform deeply explores the industry data value chain accelerates the transformation of data from "resource" to "productivity" through feature engineering and multi-modal fusion and realizes the value transformation of data elements. The view middle platform breaks the limitations of single-point perception integrates sequential logic and multi-dimensional data support endows the system with the ability of autonomous decision-making and lays a solid foundation for the digital and intelligent transformation of the industry. Based on a multi-level agent collaborative architecture we have built a cloud-edge integrated intelligent decision-making system. Lightweight front-end models enable real-time perception edge nodes realize precise analysis and judgment and the cloud achieves global optimization forming a closed loop of perception–decision–execution. We deeply collaborate to connect the entire business process accelerate the evolution of industry agents from cognitive understanding to autonomous execution and provide high-precision low-latency and strong-comprehension industrial-grade intelligent solutions for all industries. 1342025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 5. Continuously incubating innovative businesses and expanding new growth drivers In the innovative business the Company based on its in-depth understanding and accumulation in the AIoT business sector will continue to explore and incubate emerging businesses including machine vision and mobile robots thermal imaging automotive electronics smart security inspection smart fire protection alarm systems and other innovative segments so as to continuously expand new business growth drivers for the Company. 6. Hand in hand with partners to grow together and create an ecological environment of co-construction symbiosis and mutual benefit Facing the broad and fragmented AIoT market the Company firmly adheres to the ecological development strategy continuously explores and practices together with ecosystem partners and builds a comprehensive altruistic service platform integrating technology products solutions operations services and operation management consulting to help partners achieve continuous innovative development.Domestically the Company promotes "local operations county-level penetration" and expands market coverage horizontally while deepening market penetration vertically. The Company relies on AIoT technology to empower SMEs' digital and intelligent transformation and builds a sustainable channel ecosystem. It strengthens integrated customer service assurance through digital tool empowerment industry resource sharing and other initiatives and integrates product R&D solutions and market-channel resources to establish a tiered value-customer operation system. Overseas focuses on value agents drives continued business penetration and leverages the Partner APP to improve value delivery efficiency; at the same time strengthens investment in downstream customer resources and further reinforces customer service support through training and certification segregation of value products channel focus stocking and other measures. 2. Income and Costs (1) Operating Revenue Structure Unit: RMB 20252024 Year-on-year Proportion in Proportion in Increase Or Amount Operating Amount Operating Decrease (Note 1) Revenue Revenue Total Revenue 32743783343.80 100.00% 32180931827.17 100.00% 1.75% By Industry AIoT Industry 32743783343.80 100.00% 32180931827.17 100.00% 1.75% By product AIoT Products 26408997437.8680.65%25775422871.1480.09%2.46% and Solutions 1352025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Including: Software 1832591919.52 5.60% 1685487112.56 5.24% 8.73% Business Innovative Business 5670492055.81 17.32% 5566291857.39 17.30% 1.87% (Note 2) Others 664293850.13 2.03% 839217098.64 2.61% -20.84% By Region Domestic 16752032126.82 51.16% 15886994088.01 49.37% 5.44% Overseas 15991751216.98 48.84% 16293937739.16 50.63% -1.85% Note 1: The relevant year-over-year increase/decrease figures are affected by changes in the scope of consolidation resulting from the disposal of subsidiaries in 2025.Note 2: Innovative business mainly includes machine vision and mobile robots smart living thermal imaging automotive electronics smart security inspection smart fire control and storage media and other relevant businesses; the same as below.Domestic Sub-Business Segment Unit: RMB 20252024 Proportion Proportion in Year-on-year in Domestic Domestic Increase Or Amount Amount Operating Operating Decrease Revenue Revenue To G 4119857827.46 24.59% 4057234809.51 25.54% 1.54% To B 9700882198.65 57.91% 8710034420.06 54.82% 11.38% Others 2931292100.71 17.50% 3119724858.44 19.64% -6.04% Total 16752032126.82 100.00% 15886994088.01 100.00% 5.44% (2) Industry product region or sales model accounting for more than 10% of the Company's operating revenue or operating profit □Applicable □ Not Applicable Unit: RMB Increase or Increase or decrease of Increase and decrease of operating decrease of gross profit Gross revenue operating Operating Revenue Operating Cost compared Margin compared cost over the with the with the same period same period same period of last year of last year of last year By Industry AIoT Industry 32743783343.80 19442555822.77 40.62% 1.75% -1.21% 1.78% By product AIoT Products 26408997437.8642.44%2.46%0.09%1.36% and Solutions 15201037475.03 Including: Software 1832591919.52 635354985.52 65.33% 8.73% 7.67% 0.34% Business Innovative 5670492055.81 3692117185.29 34.89% 1.87% -1.94% 2.54% 1362025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Businesses By Region Domestic 16752032126.82 10894153685.79 34.97% 5.44% 2.93% 1.59% Overseas 15991751216.98 8548402136.98 46.54% -1.85% -6.04% 2.37% Domestic Sub-Business Segment To G 4119857827.46 2541360261.82 38.31% 1.54% 4.75% -1.89% To B 9700882198.65 6156187713.94 36.54% 11.38% 10.19% 0.69% Others 2931292100.71 2196605710.03 25.06% -6.04% -14.56% 7.47% When the statistical caliber of the company's main business data is adjusted in the reporting period the company's main business data should be subject to the one after the statistical caliber at the end of the reporting period is adjusted in the most recent year.□ Applicable □Not Applicable (3) Is the Company's Physical Sales Revenue Greater Than the Service Revenue □Yes □No Year-on-year Industry Item Unit 2025 2024 Increase Or Classification Decrease Sales Volume Unit/Set 89375686 89318564 0.06% Production 93262233 91286526 2.16% Unit/Set AIoT Industry Output Inventory 13356583 11908069 12.16% Unit/Set Quantity Reasons for over 30% changes in related data on year-on-year basis □ Applicable □Not Applicable (4) Performance of major sales contracts and major procurement contracts signed by the Company as of the reporting period □ Applicable □Not Applicable (5) Operating Cost Structure Industry and Product Classification Unit: RMB 2025 2024 Year-on- Industry Proportion Proportion year Item Increase Classification to toAmount Amount Operating Operating Or Cost Cost Decrease Operating AIoT Industry 19442555822.77 100.00% 19681686604.51 100.00% -1.21% Cost Unit: RMB 1372025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 20252024 Product Proportion Proportion Year-on-year Item Increase Or Classification to toAmount Amount Operating Operating Decrease Cost Cost AIoT Products Operating 78.18% 15187851740.0777.17%0.09% and Solutions Cost 15201037475.03 Including: Operating Software 635354985.52 3.27% 590089111.30 3.00% 7.67% Cost Business Innovative Operating 3692117185.2918.99%3765335736.5219.13%-1.94% Businesses Cost Operating 549401162.45 2.83% Others 728499127.92 3.70% -24.58% Cost (6) Has the scope of consolidation changed during the reporting period □Yes □No (1) During the reporting period the Company established four new domestic and overseas subsidiaries through direct investment: Qingdao Dahua Ruihai New Energy Operation Co. Ltd. PIXFRA (HONG KONG) CO. LIMITED Wisualarm Technology (HK) Limited and DaHua Opera. All four entities were included in the scope of consolidation for the reporting period. (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. (3) 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. (7) Major changes or adjustments to the company's business products or services during the reporting period □ Applicable □Not Applicable (8) Major Clients and Suppliers The Company's Major Clients Total Sales Amount of the Top Five Customers 3508528580.71 Proportion of the total sales amount of the top five 10.71% customers to the total annual sales Proportion of the total sales amount of the related parties 5.91% in the top five customers to the total annual sales Profiles of the Company's Top Five Customers 1382025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Proportion to the Annual No. Name of Customer Sales Amount (Yuan) Sales 1 Company 1 1129760649.25 3.45% 2 Company 2 (Related Party) 957130675.30 2.92% Zhejiang Leapmotor 3 Technology Co. Ltd. 618088827.63 1.89% (related party) 4 Company 4 442831858.48 1.35% China Mobile 5 Communications Group 360716570.05 1.10% Co. Ltd. (related party) Total -- 3508528580.71 10.71% Other Information Notes for Major Clients □ Applicable □Not Applicable Major Suppliers Total Purchase Amount of Top Five Suppliers (yuan) 4073966344.31 Proportion of the total purchase amount of top five 19.31% suppliers to the total annual purchase amount Proportion of the total purchase amount of the related parties in top five suppliers to the total annual purchase 0.00% amount Profiles of the Company's top five suppliers Proportion to the Total No. Supplier Name Purchase Amount (Yuan) Annual Purchase Amount 1 Company 1 1352452223.15 6.41% 2 Company 2 1017340849.20 4.82% 3 Company 3 668464762.37 3.17% 4 Company 4 571884552.19 2.71% 5 Company 5 463823957.40 2.20% Total -- 4073966344.31 19.31% Other Information Notes for Major Suppliers □ Applicable □Not Applicable During the reporting period the company's trade business revenue accounted for more than 10% of operating revenue.□ Applicable □Not Applicable 3. Expenses Unit: RMB Year-on-year Statement on 2025 2024 Increase Or Significant Changes Decrease Sales Expenses 5113115207.43 5166733337.95 -1.04% No major Changes Administration 1295533102.38 1141408186.63 13.50% No major Changes Expenses Financial Expenses -356374741.08 -389890980.61 8.60% No major Changes 1392025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Research and Development 4336016982.76 4213255565.73 2.91% No major Changes Expense 4. R&D Investment □Applicable □ Not Applicable R&D personnel of the Company 2025 2024 Change Ratio Number of R&D Personnel 11594 12689 -8.63% Percentage of R&D 52.39%53.11%-0.72% Personnel Education Background of R&D Personnel Bachelor 7568 8196 -7.66% Master's Degree 3106 3436 -9.60% Age of R&D Personnel Under 30 4874 6205 -21.45% 30-40580057291.24% Company's R&D Investment 2025 2024 Change Ratio R&D Investment (Yuan) 4336016982.76 4213255565.73 2.91% The Proportion of R&D Investment 13.24%13.09%0.15% to Operating Income Capitalized R&D Investment 0.00 0.00 0.00% Proportion of Capitalized R&D 0.00%0.00%0.00% Investment to R&D Investment Causes and Effects of Significant Changes in the Composition of R&D Personnel □ Applicable □Not Applicable The reason for the significant change in the proportion of the total amount of R&D investment to operating income compared with last year □ Applicable □Not Applicable Reasons and rational explanations on the substantial change in capitalization rate of R&D investment □ Applicable □Not Applicable 1402025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 5. Cash Flow Unit: RMB Year-on-year Increase Or Item 2025 2024 Decrease Subtotal of cash inflow 39887792102.0237318848649.226.88% from operating activities Total cash outflow from 35979993936.7434608611039.923.96% operating activities Net cash flow generated by 3907798165.282710237609.3044.19% operating activities Total cash inflow from 14226091860.3115607688895.58-8.85% investing activities Total cash outflow from 17320883976.5520439774518.31-15.26% investing activities Net amount of cash flow generated by investment -3094792116.24 -4832085622.73 35.95% activities Subtotal of cash inflow 1081519220.78 2365429558.19-54.28% from financing activities Total cash outflow from 4440169366.46 5168848978.07-14.10% financing activities Net Cash Flow Generated -3358650145.68-2803419419.88-19.81% by Financing Activities Net Increase in Cash and -2508332154.56-4819128778.6747.95% Cash Equivalents Description of the main factors affecting the significant changes in related data over the same period of last year □Applicable □ Not Applicable 1. Net cash flows from operating activities increased by 44.19% compared with the same period of the prior year mainly due to the increase in cash collected from sales during the period compared with the same period of the prior year. 2. Net cash flows from investing activities increased by 35.95% compared with the same period of the prior year mainly due to decreased payments for government bond reverse repurchase agreements and large-denomination certificates of deposit compared with the same period of the prior year.Reasons for the significant difference between the net cash flow generated by the company's operating activities in the reporting period and the net profit in the current year □ Applicable □Not Applicable 1412025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text V. Non-Main Business Analysis □ Applicable □Not Applicable VI. Analysis of Assets and Liabilities 1. Significant Changes in Assets Composition Unit: RMB End of 2025 Beginning of 2025 Proportion Proporti Statement on Proportio Increase on To Significant Amount n To Total Amount and Total Changes Assets Decrease Assets Mainly due to dividends and the purchase of Monetary 8655402920.75 16.47% 11181803423.83 21.20% -4.73% large- Fund denomination certificates of deposit This was mainly due to higher Accounts 15474088183.37 29.44% 17046094518.79 32.32% -2.88% collections Receivable during the period.Contract No major 63320727.970.12%87397517.090.17%-0.05% Assets Changes No major Inventory 6090171290.38 11.59% 5203560771.25 9.87% 1.72% Changes Investment No major 128753117.160.24%139280586.260.26%-0.02% Property Changes Long-term No major Equity 725578108.27 1.38% 722241568.57 1.37% 0.01% Changes Investment Mainly due to the conversion Fixed Assets 6136201592.87 11.67% 4973953628.05 9.43% 2.24% of construction in progress to fixed assets.Mainly due to the conversion Construction 7264951.14 0.01% 1254554187.36 2.38% -2.37% of construction in Progress in progress to fixed assets.Right-of-use No major 272401498.240.52%232124277.860.44%0.08% Assets Changes Short-term No major 203714311.580.39%995000000.001.89%-1.50% Loan Changes Contract No major 1142677702.112.17%1282204348.752.43%-0.26% Liabilities Changes 1422025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Lease No major 165399173.650.31%114313807.410.22%0.09% Liabilities Changes Mainly due to the purchase of Other non- large- 7095917123.7113.50%4327776909.068.21%5.29% current Assets denomination certificates of deposit The proportion of overseas assets is relatively high □ Applicable □Not Applicable 2. Assets and Liabilities Measured at Fair Value □Applicable □ Not Applicable Unit: RMB At the Changes in Cumulati Impairmen Purchase Sales At the End Beginning Fair Value ve Fair t Loss of Amount of Amount Other of the Item of the Gains and Value the The of the Variations Reporting Reporting Losses in the Changes Reporting Reporting Reportin Period Period Current Period in Equity Period Period g Period Financial assets 1. Trading Financial Assets 229927-377657180350309157 (Derivative 529.28118077090.83882.12448.67871.90 Financial Assets Excluded) 2. Other Non- -1039 Current 1274697 142000 1989086 573428414.43608.18 Financial 490.87 000.00 297.12 (Note 1) Assets 3.260719 8418151102535 Receivables 786.46 267.43053.89 Financing (Note 2) Financial 23464405196571803502596803400779 Assets 455351323.60 287.58882.12448.67178.28222.91 Subtotal Total of the 2346440 519657 180350 259680 3400779 455351323.60 above Items 287.58 882.12 448.67 178.28 222.91 Financial 4268 3378 -890014.680.00 Liabilities 603.52 588.84 Other Variations Note 1: The principal of other non-current financial assets was recovered in the current period.Note 2: The change in the balance of receivables financing is mainly due to the difference between banker's acceptances received and paid during the period.Are there any significant changes in the measurement attributes of the company's main assets during the reporting period □ Yes □No 1432025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3. Restrictions on Asset Rights as of the End of the Reporting Period As of December 31 2025 restricted assets of the Company are as follows: Item Book Value at the End of thePerion (RMB) Cause of Restrictions Monetary Fund 87133250.44 Guarantee Letter Security Deposit andOther Restricted Funds Pledged notes used for issuing banker's Notes Receivable and Receivables 952005844.59 acceptance endorsed or discounted butFinancing not yet matured or terminated and recognized Accounts Receivable 3528596.00 Factoring of Accounts Receivable Fixed Assets 959339899.67 Fixed Assets Rented out under OperatingLeases Total 2002007590.70 VII. Investment Analysis 1. Overview □Applicable □ Not Applicable Investment in the Reporting Period Investment for the same Period of Rate of Change (RMB) Last Year 86432866.71210210937.44-58.88% 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 "Section V 16. Utilization of Raised Funds" 1442025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 4. Financial Assets Investment (1) Securities Investment □Applicable □ Not Applicable Unit: RMB Chan ges in Cum Purch Profit Acco Fair Sales ulativ ase s and Book untin Open Value Amou Abbr e Fair Amou Loss Value Acco Variet Code Initial g ing Gains nt of Capit eviati Value nt of es in at the untin y of of Inves Meas Balan and the al on of Chan The the End g Secur Secur tment urem ce on Loss Repo Sourc Secur ges Repo Repo of the Acco ities ities Cost ent Book es in rting e ities in rting rting Perio unts Mode Value the Perio Equit Perio Perio d l Curre d y d d nt Perio d Dom Tradi estic Fair - ng and SMA 5677 Value 1497 1275 1003 1282 5705 Equit 6882 1198 Finan Over RTS 3148 Meas 2656 5892 3455 9909 4000 y 13 9693 cial seas ENS .37 urem 9.64 0.56 8.67 .79 .00 Fund 1.53 Asset Stock ent s s Dom 0006 Tradi estic 56 Fair ng Debt and Value - - *ST 8307 8195 Finan Restr Over Meas 1117 1117 Jinke 1.56 4.09 cial ucturi seas urem .47 .47 Asset ng Stock ent s s - 567714971276100312825713 1198 Total 3148 -- 2656 4199 3455 8792 5954 -- -- 9804.379.642.128.67.32.09 9.00 (2) Derivatives Investment □Applicable □ Not Applicable 1) Derivatives Investments for Hedging Purposes During the Reporting Period □Applicable □ Not Applicable 1452025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Unit: Ten Thousand RMB Proportion Changes of in Fair Investment Cumulativ Amount Amount Initial Value Closin Amount in Types of e Fair Purchased Sold Investm Opening Gains and g the Derivatives Value During the During the ent Balance Losses in Balan Company's Investment Changes Reporting Reporting Amount the ce Net Assets in Equity Period Period Current at End of the Period Reporting Period Foreign Exchange 14600.00 105.80 561228.82 575828.82 0.00% Contract Total 14600.00 105.80 561228.82 575828.82 0.00% 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 3529500.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 Instruments and other relevant provisions. The fair values of foreign exchange derivatives should disclose the forward contracts were basically measured and recognized by referencing the specific methods used and the different parameters of the financial institutions based on the then market setting of related assumptions and conditions as well as the remaining term and duration of the transaction.parameters. During the reporting period the fair value change gain of foreign exchange contracts was RMB 1058000. 1462025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Litigation involved (if applicable) None Disclosure date of the Board of Directors' announcement on the March 29 2025 approval of derivatives investment (if any) 2) Derivatives Investments for Speculative Purposes During the Reporting Period □ Applicable □Not Applicable The Company had no derivatives investments for speculative purposes during the reporting period.VIII. Major Assets and Equity Sales 1. Major Assets Sales □ Applicable □Not Applicable No major assets were sold during the reporting period of the Company. 1472025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2. Major Equity Sales □Applicable □ Not Applicable Net profit Wheth contrib er it uted Propor procee by this tion of ded as equity net sched to the profit uled. If listed Wheth contrib not Transa compa er the Impact uted Pricing Wheth Relatio the ction ny equity of the by the Princip er it is nship reason Date Price from involve Disclo Count Equity Sale sale equity les for a with s and of (in the d has sure erparty Sold Date on the sale to the related the measu Disclo RMB beginn been Index Comp the Equity transa Count res sure 10000 ing of fully any listed Sale ction erparty taken ) the transfe compa by the period rred ny's Comp to the total any date of net should sale profit be (in explain RMB ed 10000 ) This transa ction is not 32.732 expect 1% Deter ed to equity mined have a Jucha Shang of throug materi o hai Hangz h al Inform Zhiche hou negoti Procee June advers Not March ation ng Huach 71683 4838. ation ded as 20 e 9.87% No Applic Yes 04 Networ Techn eng .29 85 based sched 2025 impact able 2025 k: ology Networ on the uled.on the http://c Co. k asset Comp ninfo.c Ltd. Techn apprai any's om.cn ology sal financi Co. value.al or Ltd.operati onal conditi on. 1482025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text IX. Analysis of Major Subsidiaries and Associates □Applicable □ Not Applicable Major subsidiaries and joint-stock companies with a net profit impact of over 10%.Unit: RMB Compa Comp Registere Total Net Operating Operating ny any Main businesses Net Profit d Capital asset Assets Revenue Profit Name Type Technology development services consultation and transfer; manufacturing sales and system services of computer Zhejia hardware and ng software; Dahua Subsi manufacturing Vision diary and sales of 1306810 2561396 2682656 2494810 1647300 1182456 Techno Comp security devices 000.00 8639.97 622.79 0870.37 57.25 29.54 logy any mechanical and Co. electrical devices Ltd. and photovoltaic devices; 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 Zhejia computer ng Subsi hardware and Dahua diary 1885800 6344200 1698052 5631839 8573428 6606786 software; Zhilian Comp 000.00 613.74 591.07 892.32 2.23 2.82 development Co. any manufacturing Ltd.and marketing of electronic products and electronic components safety equipment and 1492025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text communication devices; leasing of self-owned houses; warehousing services; catering services; import and export of goods Acquisition and disposal of subsidiaries during the reporting period □Applicable □ Not Applicable Method of acquisition and disposal of Impact on overall production Company Name subsidiaries during the reporting management and performance period No significant impact on overall Qingdao Dahua Ruihai New Energy Established with Investment production operation and Operation Co. Ltd.performance No significant impact on overall PIXFRA (HONG KONG) CO.Established with Investment production operation and LIMITED performance No significant impact on overall Wisualarm Technology (HK) Limited Established with Investment production operation and performance No significant impact on overall DaHua Opera New production operation and performance Hangzhou Huacheng Network No significant impact on overall Technology Co. Ltd. and its Equity transfer production operation and controlled subsidiaries performance No significant impact on overall IMOU NETWORK TECHNOLOGY Cancellation production operation and AUSTRALIA PTY LTD performance X. Structured Entity Controlled by the Company □ Applicable □Not Applicable XI. Prospects for the Future Development of the Company Looking ahead the wave of global digital transformation and intelligent upgrading will continue to deepen. The integrated innovation of artificial intelligence Internet of Things big data and other technologies is accelerating the transformation of all industries opening up broad space for the Company's high-quality development. The company will steadfastly focus on the main track of video?centric AIoT drive technological innovation market expansion and management upgrades and be committed to providing global customers with smarter more reliable products and solutions advancing society toward a safer more efficient and smarter future.With respect to technological innovation and application the Company will continue to increase R&D investment consolidate its core technical advantages in video and simultaneously promote the pre- 1502025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text research and breakthrough of cutting-edge technologies so as to build long-term core competitiveness through technological innovation. We will accelerate the large-scale deployment of large models and industry-specific agents achieve full coverage of large model capabilities across device-edge-cloud products raise penetration in core industries and keep exploring emerging sectors to drive breakthroughs in large model-related businesses.We will promote the mass rollout of validated agents in traffic management transportation work safety urban governance and other fields realizing the leap from "single-point pilots" to "full-industry replication". Explosive implementation will be focused on urban governance for the government sector and work safety for the enterprise sector. Meanwhile we will complete lightweight SaaS packaging of agents and penetrate into small and medium-sized enterprise scenarios through the DoLynk Enterprise and Yunlian Platform expanding into long-tail scenarios such as chain retail and small and micro parks. Full coverage of large model capabilities will be realized across all device- edge-cloud products. On the device side we will complete lightweight large-model adaptation for the full range of front-end equipment pushing large-model capabilities down to lower-level computing devices and fully replacing traditional small models in core scenarios such as perimeter security and traffic capture. On the edge side we will upgrade the Shengsuan all-in-one device with multi-industry scenario kits to deliver out-of-the-box industry large models. On the center side we will achieve deep adaptation to domestic-made chips launch lightweight products for key digital infrastructure industries including energy and finance and realize full domestic substitution of center-side products. We will improve the full-link AI engineering capabilities to enable one-click training and one-click deployment of large models significantly reducing project delivery costs and cycles and supporting the large- scale delivery of fully domestic projects. We will strive for breakthrough implementation in emerging fields. We will integrate large models with thermal imaging and radar technologies to expand into emerging scenarios such as low-altitude economy. Empowered by large models we will boost the development of embodied intelligence and promote the large-scale application of industrial robots in intelligent manufacturing and smart logistics. In the meantime we will deepen our presence in sectors including dual-carbon zero-carbon parks and ecological protection and expand into new scenarios such as carbon emission monitoring and energy efficiency management.In terms of marketing and business operations the Company will focus on core business scenarios in urban governance and enterprise digitalization create high-quality end-to-end scenario-based solutions and empower the implementation of value scenarios across all industries relying on AI large models. On the government side relying on the reconstruction of a global multi-modal fusion perception foundation the upgrade of decision-making hub with intelligent deduction and the innovation of an active agent application model the Company will comprehensively drive the historic leap of urban governance from "single-point applications" to "systematic intelligence". On the enterprise side adhering to the core strategy of "scenario cameras + large models + ecosystem" and 1512025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text integrating the Group"s innovative business capabilities the Company will expand "machine replacement" scenarios focusing on key businesses such as industrial inspection intelligent patrol hidden danger detection security-fire control-electrical integration and the low-altitude economy.Meanwhile the Company will further optimize its global marketing and service network deepen its presence in key countries and emerging markets and elevate its international brand influence. It will actively nurture and incubate promising innovative businesses accelerate their productization and scenario-based implementation and foster a second growth curve. The Company will adhere to an open ecosystem and cooperation strategy continuously open up its business ecosystem technology ecosystem and service ecosystem and join hands with partners to build an industrial ecosystem featuring co-construction win-win results and co-prosperity.Regarding internal operations the Company will further strengthen refined management and enhance organizational efficiency. It will continuously promote efficiency improvement through the integration of AI and digitalization upgrade AI from an enabling tool to a core engine and comprehensively enhance operational efficiency in core business functions including R&D marketing supply chain and delivery services. The Company will invest sufficient computing resources and advanced tools to ensure the leading edge of technological applications. Meanwhile it will free up employees' energy enabling more people to engage in more valuable and creative work. The Company will adhere to the talent-driven strategy improve talent training and incentive mechanisms and build a high-quality innovative global talent team. We will consistently pursue green low-carbon development and intelligent manufacturing deepen the construction and capacity upgrading of the ESG system and actively fulfill social responsibilities.The Company will remain true to its mission of creating a safer society and a more intelligent life stay customer-centric innovation-driven and compliance-focused seize opportunities in the digital economy and industrial upgrading continuously enhance our core competitiveness and sustainable development capabilities and strive to build the world's preferred brand of AIoT.XII. Reception of Visits Communication Interviews and Other Activities in the Report Period □Applicable □ Not Applicable Receptio Main Content of the Index of the Basic Reception Reception Reception n Target Reception Objects Discussion And The Information of Time Location Method Type Information Provided Research Discuss the 13 institutions company's large CNINFO "Dahua Company Field including China model cloud February Investor Relations Meeting Investigati Institution International Capital business and 28 2025 Activity Record Form Room on Corporation and sensing-end March 05 2025" Minsheng Securities capabilities and product expansion. 1522025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 109 institutions 2024 Company CNINFO "Dahua Company Telephone (including East operating March 29 Investor Relations Meeting communic Others Money GF performance and 2025 Activity Record Form Room ation Securities) and 5 2025 strategic March 29 2025" individual investors development plan Focus on communicating and exchanging about the company's first- 7 institutions quarter business (including Kaiyuan CNINFO "Investor Company Field performance across April 21 Securities and Relations Activity Meeting Investigati Others each segment its 2025 Great Wall Record Form April 22 Room on innovative business Securities) and 6 2025" subsidiaries and the individual investors development status of businesses such as large model all-In-one device etc. 82 institutions (including Guosheng CNINFO "Investor Company Telephone Company's operating August 16 Securities Huatai Relations Activity Meeting communic Others performance in the 2025 Securities and Record Form August Room ation first half of 2025 Guotai Haitong 16 2025" Securities) and 4 individual investors JPMorgan Chase Morgan Stanley Caitong Securities Company operating CNINFO "Investor Company Telephone October 25 and 84 other performance for the Relations Activity Meeting communic Others 2025 institutional first three quarters of Record Form October Room ation investors as well as 2025 25 2025" 8 individual investors.XIII. Development and implementation status 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 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 and restructuring 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. 1532025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text XIV. 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 See the company's [Announcement on the Implementation of the "Increase in Both Quality and Returns" Plan]. 1542025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Section IV Company Governance Environment and Society I. Basic Situation on Corporate Governance During the reporting period the Company strictly complied with the Company Law of the People's Republic of China the Securities Law the Governance Guidelines for Listed Companies the Shenzhen Stock Exchange (SZSE) Listing Rules SZSE Guidelines No. 1 for Self-regulation of Listed Companies—Standardized Operation (Standardized Operation Guidelines) the Company's Articles of Association and other applicable laws regulations and regulatory documents. The Company continuously improved its corporate governance structure established and improved its internal control system fulfilled its information disclosure obligations and strived to improve its standardized operation level. The Company took effective measures to safeguard the legitimate rights and interests of the Company and all shareholders. As of the end of the reporting period the company's actual corporate governance status basically complied with the requirements of relevant laws regulations and rules and the specific situation is as follows: (I) Shareholders and the General Meeting Of Shareholders The company strictly complies with the Company Law the Rules for the General Meeting of Shareholders of Listed Companies the Articles of Association and the Rules of Procedure for the General Meeting of Shareholders and convenes and holds the General Meeting of Shareholders in a manner that ensures all shareholders can equally and fully exercise their rights guaranteeing shareholders' right to information the right to participate and the voting right.During the reporting period the company convened two General Meetings of Shareholders using a combination of on- site voting and online voting to facilitate shareholders' participation in decision-making. At the same time the company engaged lawyers to issue legal opinions on matters including the convening of the General Meeting of Shareholders the qualifications of attendees the qualifications of conveners the voting procedures and the voting results to ensure that the operation mechanism of the General Meeting of Shareholders complies with relevant regulations and protects shareholders' legitimate rights and interests.(II) Company and Controlling Shareholder The company is independent of its controlling shareholder in business personnel assets finance and organizational structure; it maintains separate accounting and independently assumes responsibilities and risks. During the reporting period the controlling shareholder strictly regulated its conduct and exercised shareholder rights in accordance with relevant laws and regulations and the Articles of Association; there was no abuse of its controlling position to harm the lawful rights and interests of the listed company and other shareholders nor any non-commercial appropriation of the listed company's funds.(III) Directors and Board of Directors The Board of Directors currently comprises nine directors including three independent directors all of whom are experts in corporate management financial accounting and other fields. The number composition and appointment procedures of the Board of Directors comply with the requirements of applicable laws and regulations the Articles of Association and the Rules of Procedure for Board Meetings. During the reporting period the company held 10 meetings of the Board of Directors; all directors in accordance with the Articles of Association and the Rules of Procedure for Board Meetings and other relevant provisions attended meetings of the Board of Directors conscientiously reviewed each proposal and performed their duties as directors. The Board of Directors has four specialized committees: the Strategy Committee the Audit Committee the Nomination Committee and the 1552025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Remuneration and Assessment Committee all of which carry out their work in accordance with the committees' rules of procedure and conscientiously perform their duties.(IV) Supervisors and Board of Supervisors The Board of Supervisors strictly complies with the provisions of the Company Law the Articles of Association and the Rules of Procedure for Supervisory Meetings standardizing the procedures for convening holding and voting of the Board of Supervisors; supervising the Board of Directors' decision-making processes resolutions and the company's lawful operations; effectively overseeing the legality and compliance of the company's major matters related-party transactions and financial condition as well as the performance of duties by the company's directors and senior management; and safeguarding the lawful rights and interests of the company and its shareholders.To implement and comply with the latest provisions of the Company Law of the People's Republic of China the Guidelines for the Articles of Association of Listed Companies and other applicable laws regulations and normative documents and taking into account the Company's actual circumstances on November 28 2025 the General Meeting of Shareholders reviewed and approved the abolition of the Board of Supervisors and the positions of supervisors. The Audit Committee of the Board of Directors assumed the functions and powers previously exercised by the Board of Supervisors. The Company's Rules of Procedure for the Board of Supervisors and other Board of Supervisors-related governance documents were accordingly repealed.(V) Senior Management Senior management have clear responsibilities and are able to strictly perform their duties in accordance with the Articles of Association and other management systems earnestly implement and execute the resolutions of the Board of Directors and effectively complete the company's production and business management work etc.(VI) Performance Evaluation and Incentive and Restrictive Mechanism The company has gradually established and continuously improved an effective performance evaluation system and an incentive and restrictive mechanism for senior management and the appointment of senior management is strictly carried out in accordance with relevant regulatory rules and the Articles of Association and other relevant provisions.To further establish and improve a long-term incentive mechanism since its listing the company has repeatedly introduced equity incentive plans with incentive instruments covering restricted shares and stock options encompassing the company's senior management middle management and core personnel fully mobilizing the enthusiasm and creativity of management and key employees and promoting the company's stable healthy and long- term development.(VII) Stakeholders The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders. While striving to achieve steady growth of the Company's performance the Company effectively protects the legitimate rights and interests of all stakeholders strengthens communication and cooperation with all parties continuously improves product quality and takes its corporate social responsibility seriously. The Company strives to realize a balance of interests among shareholders employees and society in order to promote sustainable stable and healthy development.(VIII) Information Disclosure and Investor Relations The company strictly complies with relevant laws and regulations and with its "Information Disclosure Management System" and "Investor Relations Management System" and it truthfully accurately timely and completely fulfills its information disclosure obligations; it has designated the Securities Times and CNINFO (www.cninfo.com.cn) as the company's information disclosure media. (VII) Information Disclosure and Transparency: The Company performs obligations for truthful accurate timely and complete information disclosure in strict accordance with the relevant laws and regulations and the Company's "Information Disclosure Management System" and designates Securities Times 1562025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text and www.cninfo.com as the media channels for such disclosure; the Company strictly enforces the confidentiality of undisclosed information. According to the Company's "Inside Information Confidentiality System" the registration and reporting of insiders with knowledge of inside information have been properly carried out. The internal information insider filing system has been established and submitted to the regulatory authorities for record in time as required and the behavior of submitting company information to external information users has been strictly regulated. During the reporting period no incidence of stock trading based on insider information has occurred.At the same time the company actively engages in communication with investors has established an investor relations management section on its official website and responds to investor inquiries through the Shenzhen Stock Exchange investor interactive relations platform the company's investor hotline and other channels keeping investor communication channels smooth helping investors understand and get closer to the company improving the company's transparency and safeguarding the legitimate rights and interests of all shareholders.Whether the actual status of corporate governance significantly deviates from laws administrative regulations and the provisions on governance of listed companies issued by the China Securities Regulatory Commission.□ Yes □No There is no significant difference between the actual situation of corporate governance and the laws administrative regulations and the regulations on the governance of listed companies issued by the China Securities Regulatory Commission.II. The company's independence from the controlling shareholder and the actual controller in business personnel assets organization finance etc.Since its listing the company has operated in strict accordance with the Company Law the Securities Law the Articles of Association and other laws regulations and rules and is independent from its controlling shareholder with respect to business personnel assets organizational structure and finances possessing independent and complete business operations and the ability to operate autonomously. 1. Business Independence The company's business is independent of the controlling shareholders actual controllers and other enterprises under their control and has an independent and complete R&D production procurement and sales system; the technology required for production and operation is legal independently owned or licensed for use by the company with no asset disputes. The company has signed all external contracts independently and has the ability to independently make production and operation decisions and engage in production and business activities. 2. Staff Independence The company's personnel are independent from the controlling shareholders actual controllers and other companies controlled by them. The company has an independent human resources department responsible for labor personnel and payroll management. The Company has established independent labor human resources and compensation management systems. Its production operations and administration are independent of the controlling shareholder actual controller and other entities controlled by them. The nomination election and appointment of the Company's directors and senior management are conducted independently through legally prescribed procedures. Senior management including the President Board Secretary and Chief Financial Officer do not hold positions other than director or supervisor at or receive compensation from entities controlled by the controlling shareholder or actual controller. The Company's financial personnel do not hold concurrent positions at such entities. 3. Asset Independence 1572025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text The company's assets are independent from the controlling shareholders actual controllers and other companies controlled by them. The Company's principal assets include the ownership of or rights to use the land buildings machinery and equipment trademarks patents and non-patented technologies required for its principal business as well as independent raw material procurement and product sales systems. The aforementioned assets have clear property rights and are completely independent of the controlling shareholder and major shareholders; the company has full control and disposal rights over all assets and there is no circumstance in which assets or funds have been appropriated by the controlling shareholder or its related parties to the detriment of the company's interests. 4. Institutional Independence The company's organizations are independent from the controlling shareholders actual controllers and other companies controlled by them. The Company has established a sound organizational and institutional framework. The General Meeting of Shareholders the Board of Directors and the Board's specialized committees each operate independently and exercise their respective powers within their defined mandates. The Company has set up dedicated functional departments each staffed with the requisite personnel independently responsible for domestic and overseas sales R&D supply chain delivery and service quality and service finance legal affairs securities internal control and audit human resources administration IT and other functions. These departments operate under the leadership of the Board of Directors and the President in accordance with applicable rules and regulations and exercise their respective operational and management responsibilities. There is no institutional overlap between the Company and entities controlled by the controlling shareholder or actual controller. 5. Financial Independence The company's finance is independent from the controlling shareholders actual controllers and other companies controlled by them. The company has established an independent financial department with full-time financial accounting personnel and has established an independent financial accounting system for independent financial decisions. It has a standardized financial accounting system and financial management system for subsidiaries; the company has independently opened a basic deposit account so that there is no sharing of bank accounts with actual controllers controlling shareholders and other companies controlled by it; the company handled tax registrations with the Zhejiang Provincial State Tax Bureau and the Zhejiang Provincial Local Tax Bureau and paid taxes independently as required by law.III Horizontal Competition □ Applicable □Not Applicable 1582025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text IV. Directors and Senior Management 1. Basic Information Numb Numb Number er of er ofShare Share Numbe G of Shares s s Other r of e Positi Starting Terminati Held at Incre Decre Chan Shares Reasons for Name n Age Title on Statu Date of on Date the of Beginnin ased ased ges Held at Changes ind er s Tenure Tenure g of the in the in the (Shar the End Shares Period Perio Perio e) of the (Share) d d Period(Shar (Shar e) e) Fu M Chairm Incum April 01 SeptembLiqua al 59 102386an bent 2005 er 10 8980 0 0 0 10238 68980 Not Applicablen e 2026 Wu M Vice Incum April 01 Septemb Jun al 54 Chairm bent 2005 er 10 69172869172 86 0 0 0 886 Not Applicablee an 2026 F Chen e Septemb Ailing m 59 Director Incum April 01 712628 71262 al bent 2005 er 10 13 0 0 0 813 Not Applicable2026 e Participated in the company's Zhao M Septemb - equity incentive Yunin al 49 Director Incum March 06 er 10 131260 0 0 2448 10678 plan; some of g e bent 2023 2026 0 00 00 the shares heldwere repurchased and canceled.Yuan M Septemb Lihua al 58 Director Incum September bent 11 2023 er 10 0 0 0 0 0 Not Applicablee 2026 Zhang M Septemb Xiaom al 54 Director Incum September ing e bent 11 2023 er 10 0 0 0 0 0 Not Applicable 2026 Liu M Indepe Incum August 12 Septemb Hanlin al 63 ndent er 10 0 0 0 0 0 Not Applicablee Director bent 2020 2026 Zhang M Indepeal 61 ndent Incum August 12 Septemb Yuli bent 2020 er 10 0 0 0 0 0 Not Applicablee Director 2026 Cao M Indepe Incum December SeptembYanlo al 51 ndent bent 20 2021 er 10 0 0 0 0 0 Not Applicableng e Director 2026 Preside nt Appoi Zhao M former ntme Septemb Yunin al 49 Executi nt December g e ve and 19 2022 er 10 Not Applicable 2026 Preside Dismi nt ssal Participated in the company's M SeniorLiu Vice Incum October Septemb - equity incentive al 45 er 10 805500 0 0 1908 61470 plan; some ofMing e Preside bent 12 2020 2026 00 0 the shares heldnt were repurchased and canceled. 1592025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Participated in the company's M SeniorLi Vice Incum February Septemb - equity incentive al 51 er 10 940600 0 0 1908 74980 plan; some ofZhijie e Preside bent 27 2020nt 2026 00 0 the shares held were repurchased and canceled.Participated in the company's M Senior equity incentiveSong al 48 Vice Incum October Septemb - Ke Preside bent 12 2020 er 10 327600 0 0 1638 16380 plan; some of e 2026 00 0 the shares heldnt were repurchased and canceled.Secreta ry of the Participated in Board the company's M of equity incentiveWu al 52 Director Incum December Septemb 162493 - 14341 plan; some of Jian e s bent 01 2005 er 10 5 0 0 19082026 00 35 the shares held Senior were Vice repurchased and Preside canceled.nt Senior Participated in F Vice the company's Xu e Preside equity incentive Qiaof m 54 nt Incum February Septemb - er 10 828600 0 0 1638 66480 plan; some of en al Chief bent 27 2020 2026 00 0 the shares held e Financi wereal repurchased and Officer canceled.Participated in the company's Xu M Senior Septemb - equity incentive Zhich al 60 Vice Incum March 22 69180 plan; some of eng e Preside bent 2018 er 10 882600 0 0 1908 0 the shares held nt 2026 00 were repurchased and canceled.Participated in the company's Zhu M Senior equity incentive Jianta al 44 Vice Incum March 22 Septemb 107582 - 88502 plan; some of ng e Preside bent 2018 er 10 0 0 1908 2026 5 00 5 the shares heldnt were repurchased and canceled.Participated in the company's M Senior Septemb - equity incentiveChen Qiang al 44 Vice Incum April 15 plan; some of e Preside bent 2024 er 10 53040 0 0 2652 26520 2026 0 the shares heldnt were repurchased and canceled.Fu M Liqua al 59 Preside Resig February Januarynt ned 27 2020 05 2026 Not Applicablen e Total -- -- -- -- -- -- 117215 - 5979001552 11706 92003059 -- 1602025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text During the reporting period did any directors or senior management leave office within their term of office □Yes □No To further improve the company's corporate governance structure and in line with the company's development Mr. Fu Liquan applied to resign from his concurrent position as president on January 05 2026; after resigning he will continue to serve as the company's chairman convener of the Board of Directors' Strategy Committee member of the Remuneration and Assessment Committee and member of the Nomination Committee. At the same time upon review and approval at the 20th meeting of the eighth Board of Directors the Board of Directors agreed to appoint Mr. Zhao Yuning as the company's president; he will no longer serve as the company's executive president and will be fully responsible for the company's day-to-day operations and management. For details please refer to the company's "Announcement on the Change of the Company's President" disclosed on CNINFO.Changes in the Company's directors and senior management □Applicable □ Not Applicable Name Title Type Date Causes President former Appointment and Zhao Yuning January 05 2026 Job Transfer Executive President Dismissal Fu Liquan President Dismissal January 05 2026 Job Transfer 2. Positions Professional backgrounds major work experiences and current main responsibilities of the Company's incumbent directors and senior management Mr. Fu Liquan Chinese nationality born in 1967 with an EMBA from Zhejiang University. As one of the main founders of the Company he served as chairman and president of the Company and is currently the chairman of the Company.Has successively received honors such as "Top Ten Influential Zhejiang Entrepreneurs" "Model Worker of Zhejiang Province" "Outstanding Builder of Socialism with Chinese Characteristics in the New Era among Non-public Economic Figures of Zhejiang Province" "Outstanding Executive of Enterprises with Outstanding Contributions to the Industry and Information Economy" the "Ping An China Craftsmanship Builds the Shield" Outstanding Achievement Award the Global Security Contribution Award Top Ten Security Leaders and Forbes Best CEO among Listed Companies.Mr. Wu Jun Chinese nationality born in 1972 with a bachelor's degree engineer served as vice chairman and vice president of the Company and general manager of Zhejiang Dahua System Engineering Co. Ltd. He now serves as vice chairman of the Company and executive director of Zhejiang Dahua System Engineering Co. Ltd.Ms. Chen Ailing Chinese nationality born in 1967 holds a bachelor's degree. As one of the main founders of the Company served as a director of the Company in the past five years and currently serves as a director of the Company.Mr. Zhao Yuning Chinese nationality was born in 1977 and graduated from National University of Singapore with a master's degree in science. From July 2017 to December 2022 served as the company's Vice President Overseas Marketing Center General Manager the company's Senior Vice President and Overseas Marketing Center President.He is currently the director and president of the Company.Mr. Yuan Lihua Chinese nationality born in 1968 holds a master's degree. Previously served as Director and Deputy General Manager of China Mobile Communications Group Terminal Co. Ltd. and Deputy General Manager of the External Investment Management Department of China Mobile Communications Group Co. Ltd. Currently serves as a 1612025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text director of the Company.Mr. Zhang Xiaoming Chinese nationality born in 1972 holds a master's degree. Previously served as Deputy General Manager Marketing Center China Mobile Communications Group Beijing Co. Ltd.; Manager Key Customer Section Customer Department China Mobile Communications Group Co. Ltd.; and Deputy General Manager China Mobile Zhuowang Company (Aspire Holdings Limited). Currently serves as a director of the Company.Mr. Cao Yanlong is a Chinese national born in 1975 a member of the Communist Party of China and holds a doctoral degree. Previously served as a lecturer/postdoctoral researcher at the School of Biological and Food Engineering Zhejiang University; a visiting scholar at the Precision Measurement Center (CPT) University of Huddersfield UK; and assistant to the director of the Hangzhou Municipal Commission of Economy and Information Technology. Currently a professor at the College of Mechanical Engineering Zhejiang University. Concurrently serves as Director of the Zhejiang University Shandong Industrial Technology Research Institute and as the company's independent director.Mr. Liu Hanlin Chinese nationality born in 1963 holds a postgraduate degree. Held successive positions as teaching assistant lecturer associate professor and professor of accounting at Hangzhou Dianzi University and formerly served as Associate Dean of the School of Finance and Economics and Party Secretary of the School of Accounting at Hangzhou Dianzi University. Currently a professor at Hangzhou Dianzi University concurrently serves as a member of the Chinese Institute of Certified Public Accountants a council member of the Electronic Division of the China Accounting Society a council member and member of the academic committee of the Zhejiang Accounting Society a standing council member of the Zhejiang Provincial Chief Accountants Association deputy director of the Zhejiang Provincial Management Accounting Expert Advisory Committee and an independent director of Zhejiang Weihua New Material Co. Ltd. andZhejiang Great Shengda Packaging Co. Ltd. The company's independent directors.Mr. Zhang Yuli Chinese nationality born in 1965 holds a doctoral degree. Previously served as Vice Dean of the Business School of Nankai University and Vice Dean of the Graduate School of Nankai University among other positions. Currently a professor and PhD supervisor at Nankai University Business School dean of the School of Innovation and Entrepreneurship at Nankai University and an independent director of Tianjin Port Co. Ltd. and Tianjin Bailite Precision Electric Co. Ltd. The company's independent directors.Mr. Wu Jian Chinese nationality born in 1974 holds a master's degree. During the past five years served as the company's secretary of the Board of Directors and vice president; currently serves as the company's secretary of the Board of Directors and senior vice president.Ms. Zu Qiaofen Chinese nationality born in 1972 holds a college degree Served as Accounting Director of the Company's Financial Center from January 2015 to January 2017; served as Deputy General Manager of the Company's Financial Center from January 2017 to December 2017; has served as General Manager of the Company's Financial Center since December 2017. Currently serves as the Company's Finance Director Senior Vice President and President of the Financial Center.Mr. Liu Ming Chinese nationality born in 1981 holds a master's degree. Joined the company in 2006 and in the past five years has successively served as Director of the Hardware Platform Development Department of the company's R&D center General Manager of the Front-end Product Line of the R&D center General Manager of the Product R&D Department of the R&D center and Deputy General Manager of the R&D center. Since March 2020 has served as Executive Deputy General Manager of the R&D center. Currently serves as the company's Senior Vice President and President of the R&D center.Mr. Li Zhijie Chinese nationality born in 1975 holds a master's degree. Served as technical engineer director of the Delivery & Service Department of the Representative Office national delivery representative and Vice President of Regional Delivery at Huawei Technologies Co. Ltd. from March 2005 to August 2017; has served as General 1622025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Manager of the Company's Delivery & Service Center since September 2017. He now serves as senior vice president of the Company president of the Delivery & Service Center and general manager of Zhejiang Dahua Intelligent IoT Operation Service Co. Ltd.Mr. Song Ke Chinese nationality born in 1978 holds a master degree Formerly served as Information Technology Department Manager at Hangzhou H3C Communication Technology Co. Ltd. General Manager of the IT Center at Zhejiang Dahua Technology Co. Ltd. and company supervisor. Currently serves as the company's Senior Vice President and President of the Process IT Center.Mr. Xu Zhicheng Chinese nationality was born in 1966 and has a junior college education. From September 2013 to June 2015 he has successively served as deputy general manager of marketing general manager and supervisor of the Company. Currently serves as Senior Vice President of the Company and President of the Quality Management Center.Mr. Zhu Jiantang Chinese nationality was born in 1982 and graduated from college with a bachelor's degree. From March 2012 to January 2015 he has successively served as Product Director of R&D and Deputy General Manager of R&D Center. Since January 2015 he has been the general manager of the Company's Supply Chain Management Center. He is currently the senior vice president of the Company and the president of the Supply-chain Management Center.Mr. Chen Qiang Chinese nationality born in 1982 holds a master's degree. Joined the company in 2008 and has served successively as Vice President of the Overseas Marketing Center and Executive Vice President; currently serves as Senior Vice President of the company and President of the Overseas Marketing Center.Situation of the controlling shareholder and actual controller simultaneously serving as the listed company's Chairman and General Manager □Applicable □ Not Applicable The company through the Articles of Association the Rules of Procedure for the Board of Directors the President's Work Rules the Related-Party Transaction Management System the System for Preventing the Appropriation of Company Funds by the Controlling Shareholder and Related Parties and other governance systems clearly defines the decision-making authorities and duty-performance procedures of the Board of Directors and the president standardizes the conduct of the controlling shareholder and the actual controller establishes an operating mechanism with clear responsibilities and authorities standardized processes and effective supervision and thereby effectively safeguards the company's independence and protects the legitimate rights and interests of the company and all shareholders.In order to further improve the company's corporate governance structure and in light of the company's development Chairman Fu Liquan resigned from his concurrent post as president on January 05 2026 to focus on coordinating the company's long-term strategic planning and development direction and to achieve sustained high-quality development.Position Held in Shareholders Entities □ Applicable □Not Applicable Position Held in Other Entities □Applicable □ Not Applicable 1632025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Renumeration Position held in Other Received from Name Name of Other Entity Entities Other Entity or Not Ningbo Huayang Venture Capital Investment Fu Liquan Executive Partner No Partnership (Limited Partnership) Hangzhou Gulin Equity Investment Partnership Fu Liquan Executive Partner No (limited partnership) Ningbo Huaqi Investment Management Fu Liquan Executive Partner No Partnership (Limited Partnership) Zhejiang Huashi Investment Management Co.Fu Liquan Executive Director No Ltd.Chen Ailing Zhejiang Huanuokang Technology Co. Ltd. Chairman No Zhejiang Huashi Investment Management Co.Chen Ailing General Manager No Ltd.Chen Ailing Zhejiang Hyxi Technology Co. Ltd. Director No Hangzhou Huaxi Information Technology Service Executive Director and Chen Ailing No Co. Ltd. General Manager Huayan Capital (Hangzhou) Private Equity Fund Chen Ailing Chairman No Management Co. Ltd.Ningbo Hualing Venture Capital Investment Chen Ailing Executive Partner No Partnership (Limited Partnership) Hangzhou Jikanglingyi Enterprise Management Chen Ailing Executive Partner No Partnership (Limited Partnership) Hangzhou Ji Kang Ling No.2 Enterprise Chen Ailing Executive Partner No Management Partnership (Limited Partnership) Hangzhou Ji Kang Ling San Enterprise Chen Ailing Executive Partner No Management Partnership (Limited Partnership) Hangzhou Ji Kang Ling Si Enterprise Chen Ailing Executive Partner No Management Partnership (Limited Partnership) Hangzhou Huazhen Equity Investment Chen Ailing Executive Partner No Partnership (limited partnership) Hangzhou Hua Xiao Ling Er Enterprise Chen Ailing Executive Partner No Management Partnership (Limited Partnership) Hangzhou Hua Xiao Ling Yi Enterprise Chen Ailing Executive Partner No Management Partnership (Limited Partnership) Hangzhou Huatan Enterprise Management Chen Ailing Executive Partner No Partnership (Limited Partnership) Ningbo Huaqi Enterprise Management Chen Ailing Executive Partner No Partnership (Limited Partnership) Zhoushan Xinhao Technology Development Co. Executive Director and Wu Jun No Ltd. General Manager Central Enterprises Rural Industry Investment Yuan Lihua Vice Chairman No Fund Co. Ltd.Yuan Lihua China Mobile Investment Holding Co. Ltd. Director No Yuan Lihua China Mobile Capital Holdings Co. Ltd. Director Yes Cao Hangzhou Hanmo Industrial Group Co. Ltd. Supervisor No Yanlong Cao Zhejiang Xiwei New Energy Technology Co. Ltd. Supervisor No Yanlong Cao Hangzhou Hemu Intelligent Technology Executive Partner No Yanlong Partnership (Limited Partnership) Zhang Yuli Tianjin TEDA Construction Group Co. Ltd. Director No Zhang Yuli Tianjin Port Co. Ltd. Independent Director Yes Zhang Yuli Tianjin Bailite Precision Electric Co. Ltd. Independent Director Yes 1642025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Liu Hanlin Zhejiang Weihua New Materials Co. Ltd. Independent Director Yes Liu Hanlin Zhejiang Dashengda Packaging Co. Ltd. Independent Director Yes Liu Hanlin Hangzhou Zhaohua Electronics Co. Ltd. Independent Director Yes Liu Hanlin Zhejiang Lianxin Accounting Co. Ltd. Director No Incumbent or outgoing directors and senior management during the reporting period that have been subject to administrative penalties by securities regulatory authorities in the last three years □Applicable □ Not Applicable The spouse of the company's senior vice president Liu Ming sold company shares after exercising stock options which constituted a short-swing transaction during the reporting period and violated Article 44 of the Securities Law.The Zhejiang Regulatory Bureau of the China Securities Regulatory Commission (CSRC) took the supervisory measure of issuing a warning letter to Liu Ming. 3. Remuneration of Directors and Senior Management The decision-making procedures determination basis and actual payment of remuneration for directors and senior management Decision-making procedures for directors' and senior management's remuneration:The company determines the remuneration of directors and senior management in accordance with the decision-making procedures stipulated in the Articles of Association and other relevant provisions.Directors and senior management remuneration determination basis: Directors and senior management serving at the company are paid a basic monthly salary according to their position and job grade and performance-based compensation is determined through an annual assessment based on company performance and the performance results of the organization they oversee. Independent director allowances are implemented according to the standards approved by the General Meeting of Shareholders as fixed remuneration of RMB 280000 per person per year (pre- tax) paid quarterly.Actual payment of remuneration for directors and senior management: Directors and senior management serving in the company have their basic compensation paid monthly; the performance compensation of directors and senior management serving in the company is ultimately paid based on the results of company performance and organization performance and a certain proportion of senior management's performance compensation will be paid after disclosure in the annual report.Remuneration of directors and senior management in the reporting period of the Company Unit: Ten Thousand RMB Total Whether to remuneration receive Position Name Gender Age Title from the remuneration Status Company from related before tax parties or not Fu Liquan Male 59 Chairman (Note) Incumbent 452.59 No Wu Jun Male 54 Vice Chairman Incumbent 9.62 No Chen Ailing Female 59 Director Incumbent 0 No Zhao Yuning Male 49 Director President (Note) Incumbent 534.97 No Yuan Lihua Male 58 Director Incumbent 0 Yes Zhang Male 54 Director Incumbent 192.73 No Xiaoming Liu Hanlin Male 63 Independent Director Incumbent 28 No Zhang Yuli Male 61 Independent Director Incumbent 28 No 1652025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Cao Yanlong Male 51 Independent Director Incumbent 28 No Liu Ming Male 45 Senior Vice President Incumbent 264.65 No Li Zhijie Male 51 Senior Vice President Incumbent 239.91 No Song Ke Male 48 Senior Vice President Incumbent 233.11 No Secretary of the Board of Wu Jian Male 52 Directors Senior Vice Incumbent 236.64 No President CFO Senior Vice Xu Qiaofen Female 54 Incumbent 233.11 No President Xu Zhicheng Male 60 Senior Vice President Incumbent 250.60 No Zhu Jiantang Male 44 Senior Vice President Incumbent 260.32 No Chen Qiang Male 44 Senior Vice President Incumbent 347.69 No Total -- -- -- -- 3339.94 -- The remuneration of directors and senior management is Basis for evaluating the actual remuneration received by determined in accordance with the company's specific all directors and senior management at the end of the rules and regulations compensation system and reporting period.performance appraisal system.In 2025 the independent director allowance received by independent directors and the director allowance received by directors who do not hold specific Completion status of the assessment of actual management positions are not subject to assessment.remuneration received by all directors and senior The assessment of other directors and senior management at the end of the reporting period management is organized and implemented in accordance with the Company's performance evaluation system.Deferred payment arrangements for actual remuneration Performance-based compensation for senior received by all directors and senior management at the management has been deferred for payment at a certain end of the reporting period proportion.Status of suspension of payment and recovery of actual In 2025 the company had no reportable matters remuneration received by all directors and senior concerning the suspension and recovery of remuneration management as of the end of the reporting period of directors and senior management.Note: During the reporting period Mr. Fu Liquan concurrently served as the company's president and Mr. Zhao Yuning served as the company's executive president. On January 05 2026 Mr. Fu Liquan resigned from his position as company president and the company's Board of Directors appointed Mr. Zhao Yuning as company president.Other information □ Applicable □Not Applicable 1662025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text V. The Performance of the Duties Of Directors during the Reporting Period 1. Attendance of directors at the Board of Directors meetings and the General Meetings of Shareholders Attendance of directors at Board of Directors meetings and General Meetings of Shareholders Whether Number of Number of Number of absent from Board Number of Attendance Number of attendances Number of board Meetings to On-Site of Board Attendance at the Name of Absence at meetings in Attend Attendance Meetings by of Board General Director Board person for during the of Board Means of Meetings by Meeting of Meetings two Reporting Meetings Telecommu Entrustees Shareholder consecutive Period nications s times Fu Liquan 10 8 2 0 0 No 2 Chen Ailing 10 7 3 0 0 No 1 Wu Jun 10 8 2 0 0 No 2 Zhao 10 8 2 0 0 No 2 Yuning Yuan Lihua 10 0 10 0 0 No 0 Zhang 10 8 2 0 0 No 2 Xiaoming Cao 10 8 2 0 0 No 2 Yanlong Zhang Yuli 10 2 8 0 0 No 1 Liu Hanlin 10 8 2 0 0 No 2 Explanation for not attending the Board of Directors meetings in person for two consecutive times Not Applicable 2. Objections of Directors to Related Issues of the Company Whether the directors raised objections to matters concerning the company □ Yes □No During the reporting period directors did not raise objections to the company's related matters. 3. Other Information on Directors' Performance of Duties Whether directors' proposals on the company issues are accepted □Yes □No Note on the acceptance or rejection of directors' proposals on company issues.During the reporting period the company's directors strictly complied with the Shenzhen Stock Exchange Stock Listing Rules and other relevant laws and regulations and the Articles of Association conscientiously attended meetings of the Board of Directors and the General Meeting of Shareholders diligently performed their duties and put forward constructive opinions or suggestions on the company's development decisions. At the same time proactively monitor the company's operational management information financial condition major matters etc. and promote the sustained stable and healthy development of the company's production and business operations.Independent directors diligently fulfilled their duties actively staying informed about the company's operating 1672025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text conditions the establishment of the internal control system and the implementation of resolutions of the Board of Directors and the General Meeting of Shareholders; they focused on exercising prudent supervision over related-party transactions the profit distribution plan and other matters and expressed professional opinions. They actively and effectively performed their duties as directors safeguarded the overall interests of the company and the lawful rights and interests of all shareholders especially minority shareholders and played a positive role in the company's standardized stable and healthy development.VI. Status of the special committees under the Board of Directors during the reporting period Other Important matters Numb Opinions Regardi er of Details of Committee Member Date of and ng the Meeti Meeting Content Objection Name Information Conference Suggesti Perfor ngs s (If Any) ons mance Held Raised of Duties Communicate with the audit firm March 19 2025 regarding the draft audit report Consideration of the 2024 annual report March 27 2025 internal control report and other matters.Review of the 2025 Liu Hanlin April 17 2025 First Quarter Report Chen Ailing etc.Audit Cao 6 Committee Yanlong Consideration of the Zhang Yuli 2025 Semi-AnnualAugust 14 2025 Yuan Lihua Report and other matters Review the 2025 third quarter report revise October 23 2025 etc.Communicate and December 31 deliberate on the 2025 2025 annual audit plan Consider the sale of Fu Liquan February 28 2025 subsidiary equity Zhang Yuli Strategy Wu Jun 2 Consideration of 2025 Committee Zhao development strategyMarch 27 2025 Yuning and ESG report matters Cao Review and verify the Nomination Yanlong Liu December 31 information of senior Committee Hanlin Fu 2025 management Liquan candidates. 1682025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Review and determine the remuneration of directors supervisors and senior management the March 27 2025 repurchase and cancellation of shares under the equity incentive plan the adjustment of exercise price and Remunerati other matters.Zhang Yuli on and Consider the Fu Liquan 4 Appraisal July 14 2025 cancellation of equity Liu Hanlin Committee incentive options Consider the matter of liability insurance October 23 2025 for directors supervisors and senior management Deliberation on the shareholding matters of certain directors November 14 senior management 2025 and their related parties in the spin-off of a subsidiary VII. Audit Committee Work Has the audit committee discovered any risk in the company during the supervision in the reporting period □ Yes □No The audit committee had no objection to the supervisory matters in the reporting period.VIII. Employees in the Company 1. Number profession composition and educational background of the employees Number of incumbent employees in the parent company 8555 at the end of the reporting period (persons) Number of employees in major subsidiaries at the end of 13576 the reporting period (persons) Total number of employees in service at the end of the 22131 reporting period (persons) Number of employees receiving salaries in current period 22131 (person) Number of retired employees requiring the parent company and major subsidiaries to bear their costs 1692025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Profession Composition Number of Employees for Profession Composition Type of Profession Composition (Person) R&D Staff 11594 Sales 4592 Supply Chain 3968 Management 441 Professional Support Staff 1536 Total 22131 Educational Background Type of Educational Background Number of Employees (Person) Master and above 4030 Bachelor 12824 College Technical Secondary School 3096 Others 2181 Total 22131 2. Remuneration Policies In strict compliance with the Labor Law the Labor Contract Law and other relevant laws and regulations departmental rules and normative documents the Company has established a comprehensive remuneration management system and incentive mechanism to provide employees with competitive remuneration. The Company links its remuneration system with the performance evaluation system and the Company's business performance which fully motivates employees and effectively improves their execution capability and sense of responsibility thereby better attracting and retaining talent and providing human resources support for the Company's sustainable and stable development. 3. Training plan The Company has been dedicated to building the employee education and training system. It has established internal lecturer management measures including new employee onboarding training and in-service employee training and implemented a training credits management system to improve the overall quality of employees create a positive learning atmosphere and build a learning organization. The Company comprehensively helps employees improve their ability to meet future challenges and changes provides strong talent support for the Company's sustained and rapid development and achieves the joint development of employees and the Company. 4. Labor Outsourcing □ Applicable □Not Applicable IX. Distribution of profits of the company and capitalization of capital reserves into share capital The formulation implementation or adjustment of profit distribution policies during the reporting period in particular the cash dividend policy □Applicable □ Not Applicable 1702025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text During the reporting period the company strictly reviewed and implemented profit distribution plans in accordance with the profit distribution policies related to the Articles of Association with dividend criteria and dividend ratios clear and explicit the relevant decision-making procedures and mechanisms complete and after the profit distribution plans were approved implemented within the prescribed time ensuring the interests of all shareholders. During the reporting period the company did not make any changes to its profit distribution policy. 1. The Company held its 2024 Annual General Meeting of Shareholders on April 21 2025 at which the 2024 profit distribution plan was reviewed and approved. The plan is as follows: based on a total share capital of 3279342515 shares (after excluding 19819601 repurchased shares) the Company will distribute a cash dividend of RMB 4.58 (tax included) per 10 shares to all shareholders. The total cash dividend amounts to RMB 1501938871.87 (tax included).No capitalization of capital reserve into share capital and no bonus shares will be issued in this distribution. The remaining undistributed profits will be retained for subsequent distribution. The profit distribution plan was completed on April 30 2025.On November 28 2025 the company held the 2025 first extraordinary General Meeting of Shareholders and approved the profit distribution plan for the first three quarters of 2025: based on the company's share capital of 3250574673 shares after deducting repurchased shares a cash dividend of RMB 1.85 (tax included) will be distributed to all shareholders for every 10 shares totaling RMB 601356314.51 in cash dividends. This distribution will not implement the conversion of capital reserves into share capital and will not distribute bonus shares; the remaining undistributed profit will be reserved for subsequent distribution. The profit distribution plan was fully implemented on December 9 2025. Special notes on cash dividend policies Whether they comply with the requirements of the Articles of Association or the resolutions of the General Meeting Yes of Shareholders: Whether the dividend standards and proportions are Yes distinct and clear: Whether the relevant decision-making procedures and Yes mechanisms are complete: Whether the independent directors performed their duties Yes and played their due role: If the company has not distributed a cash dividend it shall disclose the specific reasons and the measures it Not Applicable intends to take next to enhance investor returns: Whether the minority shareholders have the opportunity to fully express their opinions and appeals and whether Yes their legitimate rights and interests have been fully protected: Whether relevant conditions and procedures are No adjustments or changes were made to the cash compliant and transparent when the cash dividend dividend policy.policies are being adjusted or changed: The Company's profits during the reporting period and the parent company's distributable profits available to shareholders were positive but a cash dividend distribution plan was not proposed.□ Applicable □Not Applicable 1712025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text III. Profit Distribution and Capital Reserves Converted to Share Capital in the Reporting Period □Applicable □ Not Applicable Number of bonus shares per 10 shares (shares) 0 Number of dividend payout per 10 shares (RMB) (tax 3.70 included) Share capital base of the distribution plan (shares) 3249442473 Cash dividend amount (RMB) (tax included) 1202293715.01 Amount of cash dividend distributed in other ways (such 890477021.51 as share repurchase) (yuan note) Total cash dividend (including other methods) (RMB) 2092770736.52 Distributable Profit (RMB) 26161629808.16 Proportion of total cash dividends (including other ways) 100% to total profit distribution Latest Cash Dividend If the Company's development stage is not easy to define but there are significant capital expenditure arrangements when the profits are being distributed the proportion of the cash dividends in this profit distribution should be at least 20% Details of the preplans on profit distribution or capitalization of capital reserves Based on 3249442473 shares after deducting the repurchased shares (37313101 shares) the Company distributed a cash dividend of RMB 3.70 per 10 shares (tax inclusive) to all shareholders with total cash dividends amounting to RMB 1202293715.01 (tax inclusive). No capital reserves were converted into share capital and no bonus shares were distributed. The remaining undistributed profits are retained for future distribution.If prior to implementation of the distribution plan the company's share capital entitled to profit distribution changes due to convertible bond conversions share repurchase exercise of equity incentive listing of newly issued shares from refinancing or other reasons the company will on the principle that the distribution ratio remains unchanged use the total share capital on the record date for dividend distribution as the base (shares in the repurchase account do not participate in the distribution) and after legally readjusting the total distributable amount proceed with the distribution.Note: The cash dividend amount under other methods equals the sum of the cash dividends for the first three quarters of 2025 and the 2025 repurchase amount.X. 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 and reviewed and approved the "Proposal on Adjustment of the Exercise Price of the 2022 Stock Option and Restricted Stock Incentive Plan". Due to the Company's 2024 annual equity distribution in accordance with the provisions of the Stock Option and Restricted Share Incentive Plan (Draft Revised) for 2022 and with the authorization of the Company's 2021 Annual General Meeting of Shareholders the exercise price of the stock options will be adjusted from RMB 15.473 per unit to RMB 15.015 per unit. (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 and reviewed and approved the "Proposal on Cancellation of Some Restricted Shares of 2022 Stock Options and Restricted Stock Incentive Plan". Pursuant to the relevant provisions of the 2022 stock option 1722025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text and restricted share incentive plans because the company's performance did not meet the conditions for lifting the sale restrictions and incentive recipients departed the company proposes to repurchase and cancel 20544960 restricted shares still subject to sale restrictions held in aggregate by 3837 incentive recipients at a repurchase price of RMB 8.16 per share. On April 21 2025 the Company held the 2024 Annual General Meeting of Shareholders at which the "Proposal on Cancellation of Some Restricted Shares of 2022 Stock Options and Restricted Stock Incentive Plan" was reviewed and approved. During the reporting period the company completed the repurchase and cancellation of the aforementioned restricted shares. (3) On July 15 2025 the company held the 14th meeting of the 8th Board of Directors and the 10th meeting of the 8th Board of Supervisors during which the "Proposal on the Cancellation of Stock Options under the 2022 Stock Option and Restricted Share Incentive Plan" was reviewed and approved. In accordance with the relevant provisions of the 2022 Stock Option and Restricted Share Incentive Plan and the authorization of the Company's 2021 Annual General Meeting of Shareholders due to the expiration of exercise periods without exercise the Company's performance failing to meet the exercise-period assessment targets and the departure of certain incentive recipients the Company proposes to cancel 25696010 stock options that have been granted but not yet exercised held by 3837 incentive recipients. During the reporting period the company completed the cancellation of the aforementioned stock options. 1. 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 scheduled from July 11 2024 to July 10 2025 and the exercise method shall be voluntary. As of July 10 2025 the second exercise period for the company's stock options has concluded. A total of 14966224 stock options were exercised during the exercise period of which 11670801 stock options were exercised in 2025.Equity incentives for the Company's directors and senior management □Applicable □ Not Applicable Unit: Share Nu Num Num Num The mbe Mark Num ber of ber ber of Num Num The Num exercis r of et ber of restri of newly ber of ber of granti ber of e price stoc price restri Num cted stock grant vestin veste ng restri of the k at the cted ber of stock optio ed g d price cted vested opti end stock unloc s ns stock share share of stock shares ons of the s ked newly held optio s s restri s Name Title during held report held share grant at ns durin durin cted held the at ing at the s in ed the durin g the g the stock at the reporti the perio begin this durin begi g the report report s end ng end d ning perio g the nnin report ing ing (yuan of the period of (yuan of the d report g of ing perio perio /shar perio (yuan/ the /shar perio ing the perio d d e) d share) peri e) d perio year d od d Direc Zhao tor 326 1632 2448 000018.94008.160 Yuning Presi 400 00 00 dent Seni or Liu 254 1272 1908 Vice 0 0 0 0 18.94 0 0 8.16 0 Ming 400 00 00 Presi dent 1732025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Seni or Li 254 1272 1908 Vice 0 0 0 0 18.94 0 0 8.16 0 Zhijie 400 00 00 Presi dent Seni or Song 218 1092 1638 Vice 0 0 0 0 18.94 0 0 8.16 0 Ke 400 00 00 Presi dent Secr etary of the Boar d of Wu 254 1272 1908 Direc 0 0 0 0 18.94 0 0 8.16 0 Jian 400 00 00 tors Seni or Vice Presi dent CFO Seni Xu or 218 1092 1638 Qiaofe 0 0 0 0 18.94 0 0 8.16 0 Vice 400 00 00 n Presi dent Seni Zhu or 25412721908 Jianta Vice 0 0 0 0 18.94 0 0 8.16 0 4000000 ng Presi dent Seni Xu or 25412721908 Zhiche Vice 0 0 0 0 18.94 0 0 8.16 0 4000000 ng Presi dent Seni or Chen 549 2748 2652 Vice 0 0 0 0 18.94 0 0 8.16 0 Qiang 60 0 0 Presi dent 209 10451552 Total -- 016 0 0 -- 0 -- 0 0 -- 0 080920 0 Due to the company's failure to meet the conditions for lifting sale restrictions/exercise and the Remarks (If expiration of the exercise period the company repurchased and canceled/canceled the restricted Any) share(s) and stock option(s) held by directors and senior management during the reporting period.Evaluation and Incentive Mechanisms for Senior Management The company's senior management are appointed by the Board of Directors and are accountable to the Board of Directors. The company's Board of Directors has established a Remuneration and Evaluation Committee which is 1742025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text responsible for evaluating senior management's professional competence execution effectiveness and the progress in completing responsibility targets.The Company implements a senior management performance commitment system and department managers and above are managed through an annual work-report performance appraisal. The management implements a term of office operational goal responsibility system adopting an assessment model that combines company-level KPI commitments with individual performance commitments. During the term of office the relevant personnel met the evaluation indicators and all satisfactorily completed their assigned tasks. The company will based on target completion grant salary increases or other corresponding incentives in a timely manner.During the reporting period the company's senior management in strict accordance with the Company Law the Articles of Association and other laws regulations and normative documents faithfully and diligently performed their duties actively implemented the resolutions of the General Meeting of Shareholders and the Board of Directors satisfactorily completed this year's established operating tasks and ensured the company's steady development and operation. 2. Implementation of Employee Stock Ownership Plan □ Applicable □Not Applicable 3. Other Employee Incentive Measures □Applicable □ Not Applicable The Company upholds the core concept of "striving for the goal". On the basis of implementing long-term employee incentives using listed company equity the Company has launched an employee co-investment incentive plan targeting specific innovative business subsidiaries. This initiative aims to deeply align the core interests of the company and its employees fully stimulate employees' enthusiasm for innovation and entrepreneurship and lay a solid foundation for the company to achieve sustainable healthy high-quality development.XI. Construction and Implementation of Internal Control Systems During the Reporting Period 1. Internal Control Establishment and Implementation In accordance with the Basic Standard for Enterprise Internal Control and its supporting guidelines as well as other internal control regulatory requirements and taking into account the Company's actual circumstances the Company has established a comprehensive internal control system that has been effectively implemented. The system covers the rules of procedure for the Board of Directors supervision and management of subsidiaries seal management investment and financing management human resources management information systems management fund activities procurement management asset management sales and collections management cost and expense management information system security management and management of information disclosure affairs encompassing all business processes related to financial reporting and information disclosure affairs in the Company's operational activities.The company has established an audit committee under the Board of Directors to inspect and supervise the establishment and implementation of the company's internal controls and to review the company's financial 1752025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text information and its disclosure. The Company has established a risk management system framework that is "risk- oriented system-based process-linked control-enabled and IT-supported" to provide strong support for the realization of corporate strategies. By identifying risks and evaluating risk levels in terms of severity likelihood and effectiveness of existing measures the Company improves the tiered decision-making authorization system according to its acceptable level of risk establishes or optimizes systems and processes promotes IT-enabled process development and other control activities and refines process systems to comprehensively address foreseeable internal and external risks in production operations and other activities. The Company emphasizes the cultivation of risk awareness and regularly organizes risk management training for all departments so as to strengthen the Company's risk warning and handling capabilities and develop the risk control awareness among all staff.During the reporting period the Company organized and carried out internal control evaluation work in accordance with the procedures prescribed by the enterprise internal control standard system and the Company's internal control evaluation methods. The businesses matters and high-risk areas included in the scope of evaluation covered all major aspects of the Company's operational management with no material omissions. Based on the Company's determination of material weaknesses in internal control over financial reporting as of the benchmark date of the internal control evaluation report there were no material weaknesses in internal control over financial reporting. Based on the Company's determination of material weaknesses in internal control over non-financial reporting as of the benchmark date of the internal control evaluation report no material weaknesses in internal control over non-financial reporting were found. The Board of Directors believes that the Company has maintained effective internal control over financial reporting and non-financial reporting in all material respects in accordance with the requirements of the enterprise internal control standard system and relevant regulations. 2. Details of material weaknesses in internal control found during the reporting period □ Yes □No XII. Management and control of the company's subsidiaries during the reporting period There are anomalies in the management and control of subsidiaries.□ Yes □No XIII. Internal Control Evaluation Report Or Internal Control Audit Report 1. Internal Control Evaluation Report Date of full-text disclosure for internal April 18 2026 control assessment report Full-text disclosure index for internal CNINFO http://www.cninfo.com.cn control assessment report Percentage of total asset from units included in the assessment out of the 100.00% total asset from the company's consolidated financial statements The proportion of operating income 100.00% of parties included in the assessment 1762025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text to the operating income from the Company's consolidated financial statements Defect identification criteria Category Financial Report Non-financial reports The identification of non-financial report defects is mainly determined by the extent of their influence on validity of business process and the probability of occurrence.Signs of material weakness in If the likelihood of occurrence is low financial reporting include: and the deficiency may reduce work (1) Corrupt practices of directors efficiency or effectiveness increase supervisors and senior managers of the uncertainty of outcomes or cause the Company; deviation from expected objectives it (2) Material misstatements in the is classified as a general deficiency.current Financial Report discovered If the likelihood of a defect occurring is by the Certified Public Accountants relatively high and it would but not recognized by the internal significantly reduce work efficiency or control of the Company; effectiveness significantly increase the (3) Invalid internal control and uncertainty of the outcome or cause supervision of the External the outcome to significantly deviate Financial Report and the Financial from the expected objective it is a Report of the Company by the Audit major defect; if the likelihood of a Committee and the Audit defect occurring is high and it would Department.severely reduce work efficiency or Signs of significant deficiencies in effectiveness severely increase the financial reporting include: uncertainty of the outcome or cause (1) Failure to select and apply the the outcome to severely deviate from accounting policies in accordance Qualitative standards the expected objective it is a critical with the accepted accounting defect.standards; Signs of material weaknesses in (2) Failure to establish anti-fraud internal control over non-financial procedure and control measures; reporting include: (3) No appropriate control (1) Company decision-making mechanism established or procedures are unscientific such as appropriate compensating control decision-making errors that lead to implemented for accounting failure to achieve expected objectives treatment of irregular or special after mergers and acquisitions; transactions; (2) Violation of national laws and (4) There are one or more defects regulations leading to investigations in the control of final financial by relevant departments and reporting process and no regulatory authorities; reasonable guarantee that the (3) Management personnel or key financial statements can achieve technical personnel are leaving en the goal of being true and complete.masse; General deficiencies refer to the (4) Frequent negative media reports; control deficiencies other than the (5) The results of the internal control material deficiencies and important evaluation especially material or deficiencies described above.major defects have not been rectified; (6) Important business activities lack institutional controls or there is a systemic failure of institutional systems. 1772025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Losses which have been or may be The quantitative criteria is based on incurred due to internal control operating income and total assets.deficiencies and are related to the Losses which have been or may be profit statement should be incurred due to internal control measured by the operating income deficiencies and are related to the indicators. profit statement should be measured If the misreporting amount in the by the operating income indicators If financial statement which may be the misreporting amount in the incurred by the deficiencies alone or financial statement which may be together with other deficiencies is incurred by the deficiencies alone or less than 0.5% of the operating together with other deficiencies is less income it is considered as a than 0.5% of the operating income it general deficiency; If it exceeds is considered as a general deficiency; 0.5% of the operating income but is If it exceeds 0.5% of the operating less than 1% then it is an important income but is less than 1% then it is deficiency; If it exceeds 1% of the an important deficiency; If it exceeds operating income then it is 1% of the operating income then it is Quantitative standards considered as a major deficiency. considered as a major deficiency.Losses which have been or may be Losses which have been or may be incurred due to internal control incurred due to internal control deficiencies and are related to the deficiencies and are related to the asset management should be asset management should be measured by the total asset measured by the total asset indicators.indicators. If the misstated amount If the misstated amount in the financial in the financial statement which statement which may be incurred by may be incurred by the deficiency the deficiency alone or together with alone or together with other other deficiencies is less than 0.5% of deficiencies is less than 0.5% of the total asset it is considered as a the total asset it is considered as a general deficiency; If it exceeds 0.5% general deficiency; If it exceeds of the total asset but is less than 1% 0.5% of the total asset but less than then it is considered as an important 1% it is an important deficiency; If it deficiency; If it exceeds 1% of the total exceeds 1% of the total assetit is asset it is considered as a major considered as a major deficiency. deficiency.Number of material weakness in 0 financial reports Number of material weakness in non- 0 financial reports Number of significant deficiency in 0 financial reports Number of significant deficiency in 0 non-financial report 2. Internal Control Audit Report □Applicable □ Not Applicable Deliberations Paragraph in the Internal Control Audit Report We believe that as of December 31 2025 Dahua maintained effective internal control over financial reporting in all material respects in accordance with the Basic Standard for Enterprise Internal Control and related regulations.Disclosure of the internal control audit report Disclosure Date of full-text disclosure of the internal control audit April 18 2026 report 1782025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Full-text disclosure index for internal control audit report CNINFO http://www.cninfo.com.cn Opinion type in the internal control audit report Standard unqualified opinion Whether there are material deficiencies in the non- No financial reports Whether the accounting firm has issued an internal control audit report with modified opinions □ Yes □No Whether the opinions in the internal control audit report issued by the accounting firm are consistent with those in the self-evaluation report issued by the Board of Directors □Yes □No Was a non-standard audit opinion on internal control issued during the reporting period or the prior year □ Yes □No XIV. Rectification status of issues identified during the special action self- inspection on listed company governance Not Applicable XV. 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 Number of enterprises included in the list of enterprises required to disclose environmental 1 information (units) Index for Querying Environmental Information Reports No. Enterprise name Disclosed in Accordance with the Law For details see the relevant information disclosed on the Zhejiang Provincial Department of Ecology and Environment 1 Zhejiang Dahua Zhilian Co. Ltd. - Enterprise Environmental Information Lawful Disclosure System. The query link is as follows: https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-search XVI. Overview of Social Responsibilities For details please refer to the Company's 2025 Environmental Social and Governance (ESG) Report published on the same date on CNINFO (www.cninfo.com.cn).XVII. Overview of consolidating and expanding the achievements in poverty alleviation and rural revitalization During the reporting period the company has not yet carried out targeted poverty alleviation or rural revitalization work. 1792025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Section V Significant Events I. Performance of Commitments 1. Commitments made by the Company's controlling sharehoders shareholders related parties purchasers and purchasing companies and have been fulfilled during the reporting period and those that have not been fulfilled by the end of the reporting period □Applicable □ Not Applicable Party Commitm Making Commitm Performa Commitments Content Time ent Commitmen ent Type nce Period ts The number of shares transferred each year during his/her term of service shall not exceed 25 percent of the total number of shares he/she holds in the Company; he/she shall not transfer his/her Commitments Commitm shares in the Company within Made during Fu Liquan Performi ent on half a year after he/she leaves July 15 Long- Initial Public Chen Ailing ng restricted the Company; within the 2007 Term Offerings or Wu Jun Normally.shares twelve months after six months Refinancing from the date he/she filed his/her resignation the number of shares sold through the stock exchange listing transactions shall not exceed 50% of the total shares he/she holds.Commitments Commitment That Measures to All directors Made during Other Make Good on Returns Performi and Senior March 26 Long- Initial Public Commitm Involved in the Non-public ng Manageme 2021 Term Offerings or ents Offering of Shares Can Be Normally.nt Refinancing Effectively Implemented Commitments Commitment That Measures to Made during Other Make Good on Returns Performi Fu Liquan March 26 Long- Initial Public Commitm Involved in the Non-public ng Chen Ailing 2021 Term Offerings or ents Offering of Shares Can Be Normally.Refinancing Effectively Implemented From the date of completion of Dahua Technology's share Commitments China issuance to specific Commitm Made during Mobile subscribers (i.e. the first Performi ent on April 14 36 Initial Public Communica trading day of the newly issued ng restricted 2023 months Offerings or tions Group shares) and for a period of 36 Normally.shares Refinancing Co. Ltd. months thereafter the company shall not in any manner transfer the Dahua 1802025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Technology shares it subscribed for in this issuance nor shall Dahua Technology conduct a share repurchase of that portion of the shares; after completion of this issuance any additional Dahua Technology shares acquired by the company through this issuance as a result of Dahua Technology issuing bonus shares increasing share capital or for similar reasons shall also be subject to the foregoing restriction. (1) He/she will not directly engage in operational activities that constitute horizontal competition with the stock company's business; (2) for companies he/she held or indirectly held he/she will fulfill the obligations under this Other Commitm commitment through agencies Commitments to ent on Performi Fu Liquan and personnel (including but June 30 Long- Minority Horizontal ng Chen Ailing not limited to directors and 2007 Term Shareholders of Competiti Normally.managers); (3) if the stock the Company on company further expands its range of products and business scope he/she and the company held by him/her will not compete with the expanded range of products or businesses of the stock company.Whether the commitment is Yes fulfilled on time Where the commitment is overdue the specific reasons for not completing the Not Applicable performance and the following work plan shall be explained in detail 1812025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2. If there is a profit forecast for the Company's assets or projects and the reporting period is still within the profit forecast period the Company shall make an explanation on the fulfillment and its reasons □ Applicable □Not Applicable 3. Company-Related Performance Commitments □ Applicable □Not Applicable II. Non-operational capital occupation over listed companies by controlling shareholders and their related parties □ Applicable □Not Applicable During the reporting period there is no non-operational capital occupation over listed companies by controlling shareholders and their related parties.III. Illegal External Guarantees □ Applicable □Not Applicable No illegal external guarantees during the reporting period.IV. Statement by the Board of Directors on the most recent "Non-Standard Audit Report" □ Applicable □Not Applicable V. Explanations made by the board of directors independent directors (if any) on the "non-standard audit report" from the accounting firm during the reporting period □ Applicable □Not Applicable VI. Explanation of changes in accounting policies accounting estimates and corrections of material accounting errors compared with the previous year's financial report □ Applicable □Not Applicable The company had no changes in accounting policies accounting estimates or corrections of material accounting errors during the reporting period.VII. Changes in the scope of consolidated financial statements compared with the previous year's financial report □Applicable □ Not Applicable 1822025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (1) During the reporting period the Company established four new domestic and overseas subsidiaries through direct investment: Qingdao Dahua Ruihai New Energy Operation Co. Ltd. PIXFRA (HONG KONG) CO. LIMITED Wisualarm Technology (HK) Limited and DaHua Opera. All four entities were included in the scope of consolidation for the reporting period. (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. (3) 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.VIII. Appointment and Dismissal of Accounting Firms Currently appointed accounting firms BDO China Shu Lun Pan CPAs (special general Names of domestic accounting firms partnership) Remuneration to domestic accounting firms (Unit: ten 200 thousand yuan) Years of continuous audit service of domestic accounting 22 firms Names of Certified Public Accountants from domestic Du Na Wang Keping accounting firms The continuous period of audit service for certified public Du Na has served continuously for 3 years and Wang accountants in domestic accounting firms Keping has served continuously for 1 year.Whether to reappoint accounting firms for current period □ Yes □No Appointment of accounting firms financial advisers or sponsors for internal control auditing □Applicable □ Not Applicable During the reporting period the company hired BDO China Shu Lun Pan CPAs (special general partnership) as the internal control audit accounting firm and paid internal control audit fees of RMB 400000.IX. Situation concerning delisting after disclosure of the annual report □ Applicable □Not Applicable X. Bankruptcy Reorganization-Related Matters □ Applicable □Not Applicable No such case as bankruptcy and reorganization related event during the reporting period.XI. Significant Lawsuits and Arbitrations □ Applicable □Not Applicable There is no major lawsuit or arbitration during this reporting period. 1832025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text XII. Penalties and Rectification □Applicable □ Not Applicable Types of Disclo Date of Name Type Causes Investigation Conclusions (If Any) sure Disclosure and Penalties Index Their spouse sold The China company stock Securities Zhejiang Securities after the exercise Regulatory Senior Regulatory Bureau issued of stock options Commission April 29 Liu Ming Manage a warning letter to Liu constituting a has taken 2025 ment Ming as a supervisory short-swing trade administrative administrative measure.during the regulatory reporting period. measures.Rectification Explanation □Applicable □ Not Applicable After the company became aware of the matter it attached great importance to it and promptly investigated the relevant circumstances; Mr. Liu Ming and his spouse also actively cooperated proactively rectified the situation and remitted all proceeds from the transaction to the company.After Mr. Liu Ming received the above warning letter he took the issues pointed out in the warning letter very seriously.Mr. Liu Ming and his relatives have deeply recognized the seriousness of this short-term trading. Going forward they will continue to strictly comply with the requirements of the regulatory authorities strengthen their own and their close relatives' study of the Securities Law of the People's Republic of China the Shenzhen Stock Exchange (SZSE) Listing Rules and other relevant laws regulations and normative documents strictly regulate their stock trading conduct and prevent such incidents from occurring again.The company will further urge all directors supervisors senior management shareholders holding 5% or more of the company's shares and other relevant departmental personnel to strengthen their study of the Securities Law the Rules for the Management of Shares Held and Changes Thereof by Directors and Senior Management of Listed Companies and other relevant laws regulations and normative documents; to reinforce awareness of compliant operations; to prevent such incidents from recurring; and to effectively safeguard the interests of the broad base of small and medium-sized shareholders.XIII.Integrity of the Company Its Controlling Shareholder and Actual Controller □ Applicable □Not Applicable XIV. Significant Related-party Transactions 1. Related Transactions Relevant to Daily Operations □ Applicable □Not Applicable No such case as significant related-party transactions connected with daily operations. 1842025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 The company had no significant related-party creditor's rights and debts during the reporting period. 5. Transactions with Related Financial Companies □ Applicable □Not Applicable No deposit loan credit or other financial business between the Company and the related financial company and the related parties. 6. Transactions between the Financial Company Controlled by the Company and The Related Parties □ Applicable □Not Applicable There are no deposit loan credit or other financial business between the financial company controlled by the Company and the related parties. 7. Other Significant Related-party Transactions □Applicable □ Not Applicable 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 Hualing Venture Capital Investment 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. 1852025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 March 29 2025 CNINFO http://www.cninfo.com.cn related-party transactions for 2025 Announcement on the Waiver of the Priority Right to Acquire Partial Equity Pan April 19 2025 CNINFO http://www.cninfo.com.cn of the Controlling Subsidiary and Related Transactions XV. 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. (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. 1862025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2. Significant Guarantees □Applicable □ Not Applicable Unit: Ten Thousand RMB External guarantees from the Company and its subsidiaries (excluding guarantees to the subsidiaries) Announc ement Guaranteed date of Guarantee Actual Actual Type of Term of Due Guarantee disclosur occurren guarantee guarant or for relatedparty e of the amount ce date amount ee guarantee not parties or guarante not e cap Total amount of guarantees Total actual amount of approved during the external guarantees reporting period (A1) incurred during thereporting period (A2) Total amount of external Total balance of guarantees approved by external guarantees the end of the reporting at the end of the period (A3) reporting period (A4) Company's guarantees to subsidiaries Announc ement Guaranteed date of Guarantee Actual Actual Due Guarantee party disclosur amount occurren guarantee Type of Term of or for related e of the ce date amount guarantee guarantee not parties or guarante not e cap Two years after the 2017.10. Joint 13 22000.00 liability maturity of No No guarantee the debts inthe master contract Two years after the 2018.09. 28115.2 Joint(USD 40 liability maturity of21 No Nomillion) guarantee the debts inthe master contract Five years upon Zhejiang 2020.09. Joint expiration Dahua Vision March 30000.00 liability of debt Yes No Technology 29 2025 835699.00 01 guarantee period of Co. Ltd. mastercontract Three years Joint after the2022.07. maturity of 22 20000.00 liability Yes Noguarantee the debts inthe master contract From the date of 2023.07. Joint expiration 40000.00 liability of the24 No Noguarantee performance period of each debt in the 1872025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text master contract until three years after the date of expiration of the performanc e period of the last due master debt under all master contracts From the date of signing the master contract for a single credit 2023.09. Joint transaction 90000.00 liability until three26 Yes Noguarantee years afterthe debtor's debt performanc e period under the master contract expires Three years from the expiration date of the 2023.09. Joint debtor's 26 33000.00 liability performanc No Noguarantee e period as agreed in the master claim contract Three years from the next day after the expiry date 2024.03. Joint 01 100000.00 liability of each guarantee type of No No financing business under the master contract Two years from the expiration 2024.04. Joint date of the 01 53000.00 liability debtor's No Noguarantee performanc e period as agreed in the master 1882025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text contract From the effective date of the Commitmen t Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the 2024.06. Joint40000.00 liability accounts07 guarantee receivable Yes No claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period Three years from the expiration date of the 2024.07. Joint debtor's 25 49500.00 liability performanc No No guarantee e period asagreed in each specific financing contract The guarantee period is three years from the effective date of the 2024.08. Joint Maximum 16 50000.00 liability Amount guarantee Guarantee Yes No Contract until the expiration date of the performanc e period of each debt under the 1892025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Credit Business Agreement.The guarantee period is from the effective date of the specific business credit contract to three years 2024.09. Joint after the 19 68000.00 liability expiration Yes Noguarantee of the debt performanc e period stipulated in the specific business credit contract (including early maturity of the debt).Three years from the expiration Joint date of the2024.12. 13 20000.00 liability debtor's guarantee performanc No No e period as agreed in the master contract.From the effective date of the Commitmen t Letter to three years after the maturity date of each loan or other financing 2025.06. Joint under the 10 40000.00 liability Credit No Noguarantee Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance 1902025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text date of each advance within the credit extension period The guarantee period is from the effective date of the Maximum Amount Guarantee Joint Contract2025.07. until three 21 50000.00 liability No Noguarantee years fromthe expiration date of the performanc e period of each debt under the Credit Business Agreement.The guarantee period is three years from the expiration date of the period for performanc e of the 2025.07. Joint debtor's 22 20000.00 liability obligations guarantee under the No No master contract and the guarantee period under each specific business contract is calculated separately.From the date of signing the contract for a single 2025.09. Joint 08 90000.00 liability credit guarantee transaction No No until three years after the expiration of the 1912025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text period for performanc e of the debtor's obligations under the master contract The guarantee period is from the effective date of the specific business credit contract to three years 2025.09. Joint after the 19 80000.00 liability expiration No Noguarantee of the debt performanc e period stipulated in the specific business credit contract (including early maturity of the debt). 2024.09. Joint 26 20000.00 liability 2024.09.26- 2025.05.08 Yes Noguarantee Two years from the expiration date of the 2024.03. Joint 29 30000.00 liability debtor's No No guarantee performance period as agreed in the master contract From the Zhejiang Dahua Zhilian March effective 29 2025 260000.00 date of theCo. Ltd. Commitmen t Letter to three years after the maturity 2024.06. Joint 07 16000.00 liability date of guarantee each loan Yes No or other financing under the Credit Agreement or of the accounts receivable 1922025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period The guarantee period starts from the expiration date of the performanc e period of each principal Joint debt under2024.07. the master 25 60000.00 liabilityguarantee contract No No and ends three years after the expiration date of the performanc e period of the last due principal debt under all master contracts.Three years from the expiration date of the Joint debtor's2024.07. 25 16500.00 liability performanc guarantee e period as No No agreed in each specific financing contract The guarantee period is from the 2024.09. Joint effective 19 15000.00 liability date of the Yes Noguarantee specific business credit contract to three years 1932025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text after the expiration of the debt performanc e period stipulated in the specific business credit contract (including early maturity of the debt).Three years from the expiration Joint date of the2024.09. 26 10000.00 liability debtor's performanc No Noguarantee e period as agreed in the master contract.From the effective date of the commitmen t letter to three years after the maturity date of each loan or other financing under the 2025.06. Joint Credit 10 16000.00 liability Agreement No Noguarantee or of the creditor's rights granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance.One year commencin g upon the 2025.01. Joint expiration 1000.00 liability of Zhejiang02 Dahua Yes Noguarantee Zhilian Co. Ltd.'s debt performanc e period. 2025.05. 0920000.00 Joint 2025.5.9- liability 2025.8.24 Yes No 1942025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text guarantee 2025.08. Joint20000.00 liability 2025.08.25-25 2030.08.24 No Noguarantee The guarantee period is from the effective date of the specific business credit contract to three years 2025.09. Joint after the 19 15000.00 liability expiration No Noguarantee of the debt performanc e period stipulated in the specific business credit contract (including early maturity of the debt). 2024.09. Joint500.00 liability 2024.09.26-26 2025.05.08 Yes Noguarantee From the effective date of the Commitmen t Letter to three years after the maturity date of each loan or other financing Zhejiang under the Dahua System March Credit Engineering 29 2025 38000.00 Joint Agreement Co. Ltd. 2024.06.10 4000.00 liability or of the guarantee accounts Yes No receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit 1952025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text extension period The guarantee period is three years from the effective date of the Maximum Amount 2024.08. Joint Guarantee 16 5000.00 liability Contract Yes Noguarantee until the expiration date of the performanc e period of each debt under the Credit Business Agreement.The guarantee period is two years from the expiration date of the 2024.09. Joint1000.00 liability period for03 guarantee performanc Yes No e of the debtor's obligations as stipulated in the master contract.From the effective date of the commitmen t letter to three years after the maturity date of each loan or other financing 2025.06. Joint 10 4000.00 liability under the No No guarantee CreditAgreement or of the creditor's rights granted by the Hangzhou Branch of China Merchants Bank or the advance 1962025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text date of each advance. 2025.05. Joint 09 500.00 liability 2025.5.9- Yes No guarantee 2025.8.24 The guarantee period is from the effective date of the Maximum Amount Guarantee Contract 2025.07. Joint 21 5000.00 liability until three No No guarantee years fromthe expiration date of the performanc e period of each debt under the Credit Business Agreement. 2025.08. Joint 25 500.00 liability 2025.08.25- No No guarantee 2030.08.24 Two years from the expiration date of the period for 2025.09. Joint performanc 08 2000.00 liability e of the No Noguarantee debtor's obligations as stipulated in the credit agreement From the date of signing the master contract for a single credit transaction Joint until three2025.11.1 1 3000.00 liability years after guarantee Dahua No No System Engineering 's debt performanc e period under the master contract expires 1972025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2024.04. 2108.64 Joint(USD 3 liability 2024.4.22-22 million) guarantee 2025.4.21 Yes No 2025.04. 2108.64 Joint(USD 3 liability 2025.4.22-Dahua No No Technology March 22 69910.38 million) guarantee 2026.4.21 (HK) Limited 29 2025 2025.01. 14057.6 Joint 15 (USD 20 liability 2025.01.15- million) guarantee 2026.01.14 No No 2025.07. 1235.33(E Joint 2025.7.1- 01 UR 1.5 liability 2026.7.1 No Nomillion) guarantee 2024.10. 702.88 Joint 18 (USD 1 liability 2024.10.18- million) guarantee 2025.10.17 Yes No Three years commencin g from the Dahua day Technology March 3000.00 2025.01. 1405.76 Joint following Mexico S.A. 29 2025 15 (USD 2 liability the Yes No DE C.V million) guarantee expirationof the loan term under the main agreement. 2025.10. 702.88 Joint 31 (USD 1 liability 2025.10.31- million) guarantee 2026.10.30 No No 2020.08. 1094.41 Joint 2020.08.12 12 (GBP 1.16 liability - Signature No No million) guarantee of notice of Dahua termination Technology UK March 3300.00 2024.03. 702.88 Joint Limited 29 2025 04 (USD 1 liability 2024.3.4- Yes No million) guarantee 2025.3.3 2025.03. 702.88 Joint 04 (USD 1 liability 2025.3.4- No No million) guarantee 2026.3.3 Three years 2022.04. Joint after the 1000.00 liability maturity of29 guarantee the debts in Yes No the master contract 2024.09. Joint 26 200.00 liability 2024.09.26- 2025.05.08 Yes Noguarantee From the Zhejiang effective Huayixin March date of the Technology 29 2025 4500.00 commitmen Co. Ltd. t letter tothree years 2024.09. Joint after the 1000.00 liability maturity26 Yes Noguarantee date ofeach loan or other financing under the Credit Agreement or of the 1982025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text creditor's rights granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance.The guarantee period shall be three years starting from the day after 2025.05. Joint the 09 1000.00 liability expiration Yes Noguarantee of the debtor's performanc e period as stipulated in each specific financing contract. 2025.05. Joint 09 200.00 liability 2025.5.9- Yes No guarantee 2025.8.24 2025.08. Joint200.00 liability 2025.08.25-25 guarantee 2030.08.24 No No 2024.09. Joint 26 10000.00 liability 2024.09.26- guarantee 2025.05.08 Yes No From the effective date of the commitmen t letter to three years after the maturity Zhejiang date of Fengshi March each loan Technology 29 2025 16000.00 2024.09. Joint or otherCo. Ltd. 03 3000.00 liability financing Yes Noguarantee under the Credit Agreement or of the creditor's rights granted by the Hangzhou Branch of China 1992025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 years 2024.09. Joint after the 19 1500.00 liability expiration Yes Noguarantee of the debt performanc e period stipulated in the specific business credit contract (including early maturity of the debt). 2025.05. Joint 09 10000.00 liability 2025.5.9- Yes No guarantee 2025.8.24 2025.08. Joint 25 10000.00 liability 2025.08.25- guarantee 2030.08.24 No No The guarantee period is from the effective date of the specific business credit contract to three years 2025.09. Joint after the 19 1000.00 liability expiration No Noguarantee of the debt performanc e period stipulated in the specific business credit contract (including early maturity of the debt). 2025.10. 093000.00 Joint From the liability effective No No 2002025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text guarantee date of this commitmen t letter until the maturity date of each loan or other financing under the Credit Agreement or the 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. 2024.09. Joint800.00 liability 2024.09.26-26 guarantee 2025.05.08 Yes No The guarantee period is from the effective date of the specific business credit contract to Jiangsu three years Huaruipin March 2024.09. Joint after the Technology 29 2025 2800.00 19 1500.00 liability expiration Yes No Co. Ltd. guarantee of the debtperformanc e period stipulated in the specific business credit contract (including early maturity of the debt). 2025.05. Joint 2025.5.9- 09 800.00 liabilityguarantee 2025.8.24 Yes No Zhejiang Joint Huaxiao March 2024.09. 2024.09.26- Technology 29 2025 2200.00 26 200.00 liability guarantee 2025.05.08 Yes No Co. Ltd. 2025.06. 2000.00 Joint The No No 2012025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 27 liability debtor's guarantee debt performanc e period stipulated in the master contract shall expire two years from the due date. 2025.05. Joint 09 200.00 liability 2025.5.9- Yes No guarantee 2025.8.24 2025.08. Joint 25 200.00 liability 2025.08.25- guarantee 2030.08.24 No No The guarantee period is from the effective date of the specific business credit contract to three years 2024.09. Joint after the 19 2000.00 liability expiration Yes Noguarantee of the debt performanc e period stipulated in the specific business credit contract Xi'an Dahua (including Zhilian March early Technology 29 2025 20000.00 maturity of Co. Ltd. the debt). 2024.09. Joint10000.00 liability 2024.09.26-26 2025.05.08 Yes Noguarantee From the effective date of the commitmen t letter to three years after the maturity 2024.12. Joint date of 06 3000.00 liability each loan Yes Noguarantee or other financing under the Credit Agreement or of the creditor's rights granted by 2022025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text the Xi'an Branch of China Merchants Bank or the advance date of each advance within the credit extension period; 2025.05. Joint 09 10000.00 liability 2025.5.9- Yes No guarantee 2025.8.24 2025.08. Joint 25 10000.00 liability 2025.08.25- 2030.08.24 No Noguarantee The guarantee period is from the effective date of the specific business credit contract to three years 2025.09. Joint after the 19 2000.00 liability expiration No Noguarantee of the debt performanc e period stipulated in the specific business credit contract (including early maturity of the debt). 2024.09. Joint 2024.09.26- 26 3000.00 liabilityguarantee 2025.05.08 Yes No 2024.07. Joint 16 5000.00 liability 2024.07.16- 2025.02.19 Yes Noguarantee Zhengzhou 2025.05. Joint 2025.5.9- Dahua Zhian 09 3000.00 liability 2025.8.24 Yes No Information March 10000.00 guarantee Technology 29 2025 2025.02. Joint Co. Ltd. 20 5000.00 liability 2025.02.20- guarantee 2025.06.09 Yes No 2025.06. Joint 10 5000.00 liability 2025.06.10- guarantee 2026.06.09 No No 2025.08. Joint 2025.08.25- 25 3000.00 liabilityguarantee 2030.08.24 No No Chengdu March 15000.00 2024.07. 8000.00 Joint 2024.07.16-Dahua Zhian 29 2025 16 liability 2025.02.19 Yes No 2032025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Information guarantee Technology Service Co. 2025.02.Joint 20 10000.00 liability 2025.02.20- Ltd. guarantee 2025.06.09 Yes No 2025.06. Joint 10 10000.00 liability 2025.06.10- guarantee 2026.06.09 No No 2024.09. Joint 26 5000.00 liability 2024.09.26- guarantee 2025.05.08 Yes No The guarantee period is from the effective date of the specific business credit contract to three years 2024.09. Joint after the 19 2000.00 liability expiration Yes Noguarantee of the debt performanc e period stipulated in the specific business credit contract (including early Changsha maturity of Dahua March the debt).Technology 29 2025 8000.00 2025.05. Joint Co. Ltd. 09 5000.00 liability 2025.5.9- Yes No guarantee 2025.8.24 2025.08. Joint 25 5000.00 liability 2025.08.25- 2030.08.24 No Noguarantee The guarantee period is from the effective date of the specific business credit contract to 2025.09. Joint three years 19 2000.00 liability after the No Noguarantee expiration of the debt performanc e period stipulated in the specific business credit contract (including early 2042025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text maturity of the debt). 2024.09. Joint500.00 liability 2024.09.26-26 Yes Noguarantee 2025.05.08 From the effective date of this contract until three years after the 2025.02. Joint expiration Zhejiang Pixfra 21 2000.00 liability date of the No No Technology March guarantee debt Co. Ltd. 29 2025 3000.00 performanc e period under the specific credit under the master contract. 2025.05. Joint 09 500.00 liability 2025.5.9- guarantee 2025.8.24 Yes No 2025.08. Joint 25 500.00 liability 2025.08.25- No No guarantee 2030.08.24 2024.09. Joint200.00 liability 2024.09.26-26 guarantee 2025.05.08 Yes No 2025.05. Joint 09 1000.00 liability 2025.5.9- Yes No guarantee 2025.8.24 The debtor's Zhejiang debt Huafei March performancIntelligent 29 2025 2500.00 e periodTechnology 2025.06. Joint1500.00 liability stipulated inCO. LTD. 27 guarantee the master No No contract shall expire two years from the due date. 2025.08. Joint1000.00 liability 2025.08.25-25 2030.08.24 No Noguarantee 2024.09. Joint200.00 liability 2024.09.26-26 guarantee 2025.05.08 Yes No 2025.05. Joint 09 200.00 liability 2025.5.9- 2025.8.24 Yes No Zhejiang guarantee Huajian March 2025.08. Joint 2025.08.25- Technology 29 2025 4501.00 25 200.00 liabilityguarantee 2030.08.24 No No Co. Ltd. 2025.08. Joint 25 3000.00 liability 2025.08.25- guarantee 2028.08.24 No No 2025.12. Joint 19 96.37 liability 2025.12.19- guarantee 2028.12.16 No No 2052025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2025.12. Joint 19 1204.63 liability 2025.12.19- guarantee 2026.12.31 No No Hangzhou 2024.09.Joint 2024.09.26- Xiaohua March 26 200.00 liability Yes No 200.00 guarantee 2025.05.08 Technology 29 2025 CO. LTD. 2025.05.Joint 09 200.00 liability 2025.5.9- 2025.8.24 Yes Noguarantee Zhejiang Joint Dahua 2024.09. 500.00 liability 2024.09.26- Yes No Security 26 guarantee 2025.05.08 Network March Operation 29 2025 500.00 2025.05. Joint 2025.5.9- Service Co. 09 500.00 liability 2025.8.24 Yes No Ltd. guarantee Dahua March 2023.12. 119.98 JointTechnology 700.00 (EUR liability 2023.12.07- France SAS 29 2025 07 145700) guarantee 2029.08.31 No No 2024.03. 1054.32 Joint(USD 1.5 liability 2024.3.4- Dahua Europe March 04 million) guarantee 2025.3.3 Yes No B.V. 29 2025 16000.00 2025.03. 1757.2 Joint 04 (USD 2.5 liability 2025.3.4- million) guarantee 2026.3.3 No No 2024.03. 351.44 Joint 2024.3.4- Dahua March 04 (USD liability 2025.3.3 Yes No Technology 2000.00 500000) guarantee Italy S.R.L. 29 2025 2025.03. 351.44 Joint 04 (USD liability 2025.3.4- No No 500000) guarantee 2026.3.3 2025.05. Joint 09 200.00 liability 2025.5.9- guarantee 2025.8.24 Yes No The debtor's debt performanc e period 2025.06. Joint 27 1500.00 liability stipulated in No No guarantee the mastercontract shall expire two years from the Zhejiang due date.Huaruijie March From the Technology 29 2025 5000.00 effective Co. Ltd. date of thecommitmen t letter until the maturity date of Joint each loan2025.06. 27 1000.00 liability or other guarantee financing Yes No under the Credit Agreement or the maturity date of the accounts receivable 2062025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text creditor's right assigned to China Merchants Bank Hangzhou Branch or three years after the date of each advance. 2025.08. Joint 25 200.00 liability 2025.08.25- 2030.08.24 No Noguarantee Yibin Huahui March Information 29 2025 2025.01. Joint Technology 500.00 02 475.42 liability 2025.1.2- 2025.12.31 Yes No Co. Ltd. guarantee Dahua March 89.62 Technology 29 2025 189.62 2025.04. (164177.8 Joint 2025.4.30- Singapore Pte. 30 3 liability No No Ltd. Singapore guarantee 2028.1.30 dollars) Guangxi March Dahua 29 2025 Information 100.00 No such case during the reporting period Technology Co. Ltd.Guangxi March Dahua 29 2025 Technology 100.00 No such case during the reporting period Co. Ltd.Anhui Dahua March Zhilian 29 2025 Information 300.00 No such case during the reporting period Technology Co. Ltd.Chengdu March Dahua Zhilian 29 2025 Information 500.00 No such case during the reporting period Technology Co. Ltd.Chengdu March Dahua Zhishu 29 2025 Information Technology 300.00 No such case during the reporting period Service Co.Ltd.Chengdu March Zhichuang 29 2025 Yunshu 300.00 No such case during the reporting period Technology Co. Ltd.Hangzhou March Fuyang Hua'ao 29 2025 Technology 100.00 No such case during the reporting period Co. Ltd.Henan Dahua March Zhilian 29 2025 Information 300.00 No such case during the reporting period Technology Co. Ltd. 2072025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Zhejiang Huaqi March Intelligent 29 2025 Technology 500.00 No such case during the reporting period Co. Ltd.Tianjin Dahua March Information 29 2025 Technology 100.00 No such case during the reporting period Co. Ltd.Yiwu Huaxi March Technology 29 2025 100.00 No such case during the reporting period Co. Ltd.Zhejiang March Dahua 29 2025 Intelligent IoT Operation 300.00 No such case during the reporting period Service Co.Ltd.Zhejiang March Huakong 29 2025 Software Co. 100.00 No such case during the reporting period Ltd.Dahua March Technology 29 2025 100.00 No such case during the reporting period Japan LLC Dahua March Technology 29 2025 Poland Sp. z 800.00 No such case during the reporting period o.o.Dahua March Technology 29 2025 100.00 No such case during the reporting period Hungary Kft.Dahua March Technology 29 2025 India Private 4000.00 No such case during the reporting period Limited DAHUA March TECHNOLOG 29 2025 Y BRASIL COMéRCIO E SERVI?OS 1000.00 No such case during the reporting period EM SEGURAN?A ELETR?NICA LTDA Dahua March Technology 29 2025 Middle East 1000.00 No such case during the reporting period FZE Dahua March Technology 29 2025 100.00 No such case during the reporting period Perú S.A.C Dahua March Technology 29 2025 Australia PTY 100.00 No such case during the reporting period LTD Dahua March Technology 29 2025 South Africa 100.00 No such case during the reporting period Proprietary Limited Dahua March Technology 29 2025 100.00 No such case during the reporting period Canada INC.Dahua March 200.00 No such case during the reporting period 2082025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Guvenlik 29 2025 Teknolojileri Sanayi ve Ticaret A.S.Dahua March Technology 29 2025 100.00 No such case during the reporting period SRB d.o.o.Dahua March Technology 29 2025 Bulgaria 100.00 No such case during the reporting period EOOD Dahua Iberia March S.L. 29 2025 100.00 No such case during the reporting period Dahua March Security 29 2025 Malaysia SDN. 100.00 No such case during the reporting period BHD.Dahua March Technology 29 2025 Kazakhstan 100.00 No such case during the reporting period LLP PT. Dahua March Vision 29 2025 Technology 100.00 No such case during the reporting period Indonesia Dahua March Technology 29 2025 Korea 100.00 No such case during the reporting period Company Limited Dahua March Technology 29 2025 100.00 No such case during the reporting period S.R.L Dahua Vision March LLc 29 2025 100.00 No such case during the reporting period Dahua March Technology 29 2025 New Zealand 100.00 No such case during the reporting period Limited Dahua March Technology 29 2025 300.00 No such case during the reporting period GmbH Dahua March Technology 29 2025 Colombia 100.00 No such case during the reporting period S.A.S Dahua March Technology 29 2025 100.00 No such case during the reporting period Panama S.A.Dahua March Technology 29 2025 100.00 No such case during the reporting period Chile SpA Dahua March Technology 29 2025 Tunisia Limited 100.00 No such case during the reporting period Liability Company Dahua March Technology 29 2025 100.00 No such case during the reporting period Kenya Limited Dahua March Technology 29 2025 Pakistan 100.00 No such case during the reporting period (private) 2092025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Limited Dahua March Technology 29 2025 100.00 No such case during the reporting period Morocco SARL Dahua March Argentina S.A. 29 2025 100.00 No such case during the reporting period Dahua March Technology 29 2025 100.00 No such case during the reporting period Czech s.r.o.Dahua March Technology 29 2025 100.00 No such case during the reporting period Denmark ApS Dahua March Technology 29 2025 (Thailand) 100.00 No such case during the reporting period Co.LTD.Luoyang March Dahua Zhiyu 29 2025 Information 300.00 No such case during the reporting period Technology Co. Ltd.Dahua March Technology 29 2025 100.00 No such case during the reporting period Belgium B.V.VISMEXTECH March DHM 29 2025 SERVICIOS 100.00 No such case during the reporting period S.A. DEC.V.DAHUA March TECHNOLOG 29 2025 Y 1500.00 No such case during the reporting period INTERNATION AL PTE. LTD.Dahua March Technology 29 2025 Regional 1000.00 No such case during the reporting period Headquarters Nanyang March Dahua 29 2025 Intelligent Information 100.00 No such case during the reporting period Technology Co. Ltd.Total amount of guarantees Total amount of to subsidiaries approved guarantees to during the reporting period 1339700.00 subsidiaries actually 503287.77 (B1) occurred during thereporting period (B2) Total amount of guarantees Total balance of to subsidiaries approved by guarantees actually the end of the reporting 1339700.00 paid to subsidiaries at 894436.18 period (B3) the end of thereporting period (B4) Subsidiaries' guarantees to subsidiaries Announc ement Guarante Guaranteed date of Guarantee Actual Actual Type of e for party disclosur amount occurren guarantee guarant Term of Due e of the ce date amount ee guarantee or not related parties or guarante not e cap HUARAY TECHNOLOG March 4000.00 2024.12. 166.92 Joint The guarantee No (KRW liability period is until (partia No Y KOREA 29 2025 09 343.432 guarant HuaRay Korea lly 2102025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text COMPANY million) ee has fulfilled its compl LIMITED responsibilities eted) and obligations under each business agreement. The specific guarantee period under each business contract is calculated separately.The guarantee period is until HuaRay Korea has fulfilled its responsibilities and obligations 71.45 Joint under each No 2024.12. (KRW liability business (partia 13 147.000 guarant agreement. The lly No million) ee specific compl guarantee eted) period under each business contract is calculated separately.The guarantee period is until HuaRay Korea has fulfilled its responsibilities and obligations 60.28 Joint under each No 2025.04. (KRW liability business (partia 11 124.020 guarant agreement. The lly No million) ee specific compl guarantee eted) period under each business contract is calculated separately.The guarantee period is until HuaRay Korea has fulfilled its responsibilities and obligations 91.56(KR Joint under each No 2025.05. W liability business (partia 07 188.3864 guarant agreement. The lly No million) ee specific compl guarantee eted) period under each business contract is calculated separately.Joint The guarantee No 2025.06. 206.04(KRW 423.926 liability period is until (partia25 million) guarant HuaRay Korea lly No ee has fulfilled its compl 2112025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text responsibilities eted) and obligations under each business agreement. The specific guarantee period under each business contract is calculated separately.The guarantee period is until HUARAY KOREA has fulfilled its responsibilities Joint and obligations No 2025.07. 14.27(KR liability under each (partia 10 W 29.356 guarant business lly Nomillion) ee agreement. The complspecific eted) guarantee period under each business contract is calculated separately.The guarantee period is until HUARAY KOREA has fulfilled its responsibilities 130.17(KR Joint and obligations 2025.12. W 267.828 liability under each 01 guarant business No Nomillion) ee agreement. Thespecific guarantee period under each business contract is calculated separately.The guarantee period is until HUARAY KOREA has fulfilled its responsibilities Joint and obligations 2025.12. 6.98 (KRW14.370 liability under each 01 business No Nomillion) guarantee agreement. Thespecific guarantee period under each business contract is calculated separately.Huaray March technology 29 2025 1000.00 No such case during the reporting period 2122025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text GmbH HUARAY TECHNOLOG Y March 3000.00 No such case during the reporting period SINGAPORE 29 2025 PTE. LTD Total amount of guarantees Total amount of to subsidiaries approved guarantees to during the reporting period 8000.00 subsidiaries actually 509.31 (C1) occurred during thereporting period (C2) Total quota of guarantees Total balance of to subsidiaries approved by guarantees actually the end of the reporting 8000.00 paid to subsidiaries at 283.39 period (C3) the end of thereporting period (C4) Total amount of company guarantees (namely sum of the previous three major items) Total amount of guarantees Total amount of approved during the guarantees actually reporting period 1347700.00 occurred during the 503797.08 (A1+B1+C1) reporting period(A2+B2+C2) Total amount of guarantees Total balance of approved by the end of the guarantees actually reporting period 1347700.00 paid at the end of the 894719.57 (A3+B3+C3) reporting period(A4+B4+C4) Total amount of actual guarantees (A4+B4+C4) as a percentage of the Company's net assets 23.70% Among them: Balance of guarantees provided to the shareholders actual controllers and their related parties (D) 0.00 Balance of debt guarantees directly or indirectly offered to guaranteed objects with asset-liability ratio 846327.54 exceeding 70% (E) Amount of the portion of the total guarantee amount exceeding 50% of net assets (F) 0.00 Total amount of the above three guarantees (D+E+F) 846327.54 Notes on unexpired guarantees with guarantee responsibilities occurred or possible joint liabilities None within the reporting period (if any) Notes on providing external guarantees in violation of specified procedures (if any) None Explanation of the use of composite guarantee method Not Applicable 3. Entrusting Others to Manage Cash Assets (1) Entrusted Wealth Management □Applicable □ Not Applicable Entrusted financing during the reporting period Unit: Ten Thousand RMB Balance of entrusted Overdue outstanding Product category Risk characteristics wealth management during amount the reporting period Financial products of Medium-high risk 100000.00 0.00 2132025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text securities companies Trust wealth management R4 25000.00 0.00 products Trust wealth management R3 10000.00 0.00 products Specific matters on high-risk entrusted wealth management where the Company acts as the sole entruster to commission financial institutions to conduct asset management or investments with low safety and poor liquidity □Applicable □ Not Applicable Unit: Ten Thousand RMB Actual Actual recover Name profit y of of Trustee and Item Termi profits trustee organiz Risk loss overview Product Starting natio Investment and organiz ation (or charact Amount during and related type date n direction losses ation (or trustee) eristics the query index date during name of type reporti (if any) the trustee) ng reportin period g period Private equity fund products fixed Guosen Asset Febru income Medium Februar Securiti Securiti Manage 100000 ary assets 5756 Unexpir -high y 10 es co. es ment .00 09 equity 0.18 ed risk 2021 Ltd. Plan 2031 assets public equity hybrid funds Asset manageme nt plans financial products Dividen Yunnan trust plans ds Internati Collecti private July receive onal ve Fund 25000. July 22 equity fund 457.7 Trust R4 22 d Trust Trust 00 2025 products 4 2026 quarterl Co. Plan money y not Ltd. market yet due instruments trust industry protection fund Yunnan Bank Internati Dece deposits Single- Decem onal 10000. mber interbank Unexpir Trust R3 investor ber 22 52.69 Trust 00 22 certificates ed trust 2025 Co. 2045 of deposit Ltd. bond 2142025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text reverse repurchase listed company stocks Beijing Stock Exchange new-share subscriptio n trust industry protection fund 1350005807 Total -- -- -- -- --.000.61 (2) Entrusted Loans □ Applicable □Not Applicable No such case as entrusted loan during the reporting period. 4. Other Significant Contracts □ Applicable □Not Applicable No such case as other significant contract during the reporting period.XVI. Utilization of Raised Funds □Applicable □ Not Applicable 2152025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 1. Utilization of Raised Funds □Applicable □ Not Applicable Unit: Ten Thousand RMB Perce ntage Aggr Prop of the Amou egate ortion Aggr nt of Amou Purp The Accu of egate Fund nt of ose Amou Amou mulat Raise Amou s Fund and nt of nt of ed d nt of Raise s use Fund Total Fund Aggr Fund Fund Amou d in Raise of s Year Way Amou Net s egate s s nt of the d as the Raise of of Listin nt of Fund Raise Amou Used Raise Funds Curre of the Fun d Put Fund- Fund- g Fund s d nt of at the d as Raise nt Curre ds Aside raisin raisin Date s Raise Used Fund End of the d Not Perio nt Rais for g g Raise d (1) in the s of the Curre Yet d Perio ed More d Curre Raise Repo nt Used That d Not Than nt d rting Perio Were That Yet Two Perio Used Perio d Repu Were Use Years d (2) d (3) That rpose Repu d = (2) Were d rpose / (1) Repu d rpose d Per Issua man nce ent of repl share April 13395 enis 509950897018502498.7230195.93 2023 s to 14 0 .29 hme 0 99.9283.265.8362.44%1.75% specif 2023 (Note) nt of ic work objec ing ts capit al 13395 509950897018502498.7230195.93 Total -- -- 0 .29 -- 0 99.9283.265.8362.44%1.75% (Note) 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 2162025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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.On November 17 and 28 2025 the Company respectively held the 18th meeting of the 8th Board of Directors and the 14th meeting of the 8th Board of Supervisors and the First Extraordinary General Meeting of Shareholders in 2025 and reviewed and approved the "Proposal on the Completion of Raised Fund Investment Projects and Permanent Replenishment of Working Capital with Surplus Raised Funds" agreeing that the Company would complete the raised fund investment projects "Artificial Intelligence Technology R&D and Application Research Project" "5G IoT and Multi- dimensional Perception Product Solution R&D Project" and "Phase II Construction Project of Hangzhou Intelligent Manufacturing Base" and use the surplus raised funds totaling RMB 133.9529 million (including deposit interest income) for permanent replenishment of working capital and cancel the relevant special accounts for raised funds. 3. The company has cumulatively used raised funds of RMB 5024624400 and the raised funds special account received net bank interest income of RMB 86487100. As of December 31 2025 all the company's investment projects funded by the raised funds have been completed and the surplus raised funds (including bank deposit interest income) have been permanently used to supplement working capital; the related special accounts for the raised funds have all been closed.Note: During the reporting period the surplus raised funds remaining after the completion of the company's fundraising investment projects totaled RMB 133952900 (including bank deposit interest income) and were all used during the reporting period to permanently replenish working capital. 2172025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 2. Status of Projects Committed to be Funded by Raised Funds □Applicable □ Not Applicable Unit: Ten Thousand RMB Proje cts with pled ged Whet Inve Cum inves her Cum stme The ulativ tmen the Amo ulativ nt Whet Total Date Bene e ts Proje unt e Prog her Pled the fits Inco Whet and cts Inve Inve ress Ther ged Proje Reali me her Fina inves Have Total sted stme as of e Are Inve ct zed As Expe ncin tmen Been Adju in nts the Majo Proje stme Reac Duri Of cted g Listin t Cha sted the as of End r ct nts hes ng The Bene Proje g direc nged Inve Curr the of Cha Natu Usin Its the End fits ct Date tions (Incl stme ent End Rep nges re g Inten Rep Of Have Nam of udin nts Rep of ortin in Rais ded ortin The Been e exce g (1) ortin Rep g Proje ed Usab g Rep Achi ss Parti g ortin Perio ct Fund le Perio ortin eved fund al Perio g d Feas s Statu d g s Cha d Perio (3)=( ibility s Perio due nges d (2) 2)/(1 d to ) ) over subs cripti on Projects with pledged investments Proje ct of AIoT Oper Solut ation ion man 929 929 929 125 100.781 R&D age No 90.0 90.0 0.00 90.0 2023 21.3 No No 00%8.02 and ment 0 0 0 0 Issu Indu proje ance striali ct of zatio shar n April es to 14 The speci 2023 phas fic e II Prod obje cons uctio cts in tructi n 2023 100.on and 775 775 778 102 165 36% proje cons No 80.0 80.0 0.00 59.3 2024 75.9 57.1 No No (Not ct of tructi 0 0 8 9 0 e 2) the on smar proje t ct man ufact 2182025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text uring base in Han gzho u Artifi cial intelli genc e tech nolo gy Rese rese arch arch and Not Not Not 889119338109 and deve 92.1 Appli Appli Appli Yes 60.0 151. 73.1 823. 2025 No deve lopm 7% cabl cabl cabl0 75 8 79 lopm ent e e e ent proje and ct appli catio n rese arch proje ct 5G IoT and multi - dime Rese nsio arch nal and 101. Not Not Not perc 100 702 363 716 deve 99% Appli Appli Appli eptio Yes 470. 78.2 12.6 77.2 2025 No lopm (Not cabl cabl cabl n 00 5 5 7 ent e 2) e e e prod proje ucts ct and soluti ons R&D proje ct Repl enis Flow hme Supp 100. Not Not Not Not 148148150 nt of leme 76% Appli Appli Appli Appli No 983. 983. 0.00 111.9 No worki nt (Not cabl cabl cabl cabl 26269 ng Proje e 2) e e e e capit ct al 2192025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 502 508508701462.180290 Subtotals for projects with --983.983.85.844----94.078.4---- pledged investments 26 26 3 (Not 1 0 e 1) Investment directions of excess funds due to oversubscription Not Applicable 502 508508701462.180290 Total -- 983. 983. 85.8 44 -- -- 94.0 78.4 -- -- 26 26 3 (Not 1 0 e 1) Explain the circumstances and reasons for failing to achieve the 1. The AIoT solution R&D and industrialization project failed to achieve the expected benefits mainly planned because: (1) some product lines were adjusted to respond to market demand and to expand into progress and niche scenarios causing a decline in gross margin; (2) the company continuously increased expected investment in cloud computing and big data to maintain technological leadership and to reserve benefits for products technologies and other resources for addressing broader future markets resulting in each project increased R&D investment.(including the 2. The Phase II construction project of the Hangzhou intelligent manufacturing base did not achieve reasons for the expected benefits mainly due to changes in the overall industry environment and the selecting "Not company's adjustment and optimization of its production capacity structure which led to project applicable" for revenue not reaching the preset level."Whether expected benefits have been achieved") Notes on major changes in Not Applicable project feasibility The amount purpose and progress of the use of the Not Applicable excess funds due to oversubscriptio n Involved unauthorized changes to the use of raised Not Applicable funds and improper occupation of raised funds.Changes of the Applicable implementation Occurred in prior years location of the See (3) Projects with Changes in the Use of Raised Funds. 2202025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text projects using raised funds Changes of the Applicable implementation Occurred in prior years method of the projects using See (3) Projects with Changes in the Use of Raised Funds.raised funds Advance investments and Not Applicable replacements of raised funds in projects Temporary replenishment of working Not Applicable capital with idle raised funds 1. 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 Certain Fundraising Projects and the Permanent Use of Surplus Raised Funds to Supplement Working Capital. In view of the fact that the Company's fundraising investment projects namely the "AIoT Solution R&D and Industrialization Project" and the "Supplementary Working Capital Project" have been fully 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 will use the surplus raised funds from 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. The surplus of proceeds from this fundraising was mainly due to interest income generated while the proceeds were deposited in the project's special account and the general account. 2. On November 17 2025 and November 28 2025 the Company respectively held the 18th The amount meeting of the eighth session of the Board of Directors and the 14th meeting of the eighth session and reasons for of the Board of Supervisors and the First Extraordinary General Meeting of Shareholders in 2025 the balance of and reviewed and approved the "Proposal on the Completion of the Fundraising Projects and the funds raised in Permanent Replenishment of Working Capital with Surplus Raised Funds" agreeing that the the Company would complete the fundraising projects "Artificial Intelligence Technology R&D and implementation Application Research Project" "5G IoT and Multi-dimensional Perception Product Solution R&D of the project Project" and "Phase II Construction Project of Hangzhou Intelligent Manufacturing Base" and use the surplus raised funds totaling RMB 133.9529 million (including deposit interest) for permanent replenishment of working capital. The surplus of the funds raised in this offering was mainly due to: (1) During the implementation of the projects funded by the offering the company after comprehensively considering factors such as the macroeconomic environment and market trend changes strictly in accordance with relevant regulations on the management of raised funds and guided by the principles of reasonableness efficiency and frugality based on the actual needs of the projects and on the premise of ensuring project quality and controlling implementation risks saved expenditures and reduced project costs and the amount of raised funds invested by reducing procurement of some devices through leasing substituting domestically produced devices of the same type reusing device resources and other measures. (2) In accordance with relevant regulations the company deposited the raised funds in a third-party supervised special account and the raised funds earned certain interest income while held in the account.The intended As of December 31 2025 all investment projects funded with the funds raised have been use and completed and the surplus funds raised (including interest income from bank deposits) have been disposal of the permanently used to replenish working capital; all dedicated accounts for the funds raised have unused funds been closed. 2212025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text raised On May 19 2023 the Company held the 43rd meeting of the 7th Board of Directors and the 30th Problems or meeting of the 7th Board of Supervisors and reviewed and approved the "Proposal on the Use of other Acceptance Bills Equity Funds etc. to Pay Funds for Investment Projects and Replace them with circumstances Equal Amounts of Fundraised Funds" agreeing that during the implementation of the investment in the use and projects with raised funds the Company would use acceptance bills (including endorsement disclosure of transfers) own foreign exchange supply chain bills and equity funds to advance payment of part of the funds the funds for investment projects and regularly transfer equal amounts from the special account for raised 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: There are differences between the cumulative total amount of investment as of the period end and the total amount of various projects which are caused by rounding.Note 2: The interest income from bank deposits is the excess of the actual investment amount of the related projects over the total investments committed using raised funds. 3. Change of Projects That Use Raised Funds □Applicable □ Not Applicable Unit: Ten Thousand RMB Total Are Actual amoun Invest there Actual total The t of ment Benefit Wheth any Corres amoun amoun Date funds progre s er major pondin t t the raised ss as Realiz Expect chang Financi Chang g investe investe Project Way of to be of the ed ed es in ng ed original d in d as of Reach Fund- investe end of During Benefit feasibil Project project commit the the es Its raising d in reporti the s Have ity of Name s ment current end of Intend the ng Reporti Been the project reporti reporti ed chang period ng Achiev chang s ng ng Usable ed (3)=(2) Period ed ed period period Status project /(1) project (2) s (1) s Artifici al intellig ence technol Constr ogy uction Issuan resear Project Not Not ce of Issuan ch and 11915 33873 10982 92.17of 2025 Applic Applic No shares ce of develo 1.75 .18 3.79Xi'an % able able to shares pment R&D specifi to and Center c specifi applica objects c tion in objects resear 2023 ch project 5G New 101.99 IoT project Not Not 702783631271677% and of 2025 Applic Applic No.25 .65 .27 (Note multi- South able able 2) dimens west 2222025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text ional R&D percep Center tion of produc Dahua ts and Co.solutio Ltd.ns R&D project 18150 18943701851.07 Total -- -- -- -- -- -- -- 0.00 .83 (Note 1) 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 Explanation of reasons for multi-dimensional perception products and solutions R&D projects (formerly "New changes decision-making project of Southwest R&D Center of Dahua Co. Ltd."): procedures and information Given that the R&D center in Hangzhou headquarters has quickly seized the R&D disclosure (by project) opportunities in the fields of 5G and multi-dimensional perception by using the existing technology precipitation successively released more than ten integrated 5G products and more than 30 5G smart application solutions and released the 6D omni-domain perception technology in full-time domain full-space domain full-color domain and full- frequency domain by utilizing the advantages of the multi-dimensional perception technology to lead the industry to continuously expand the boundaries of the perception capability deeply practice the integration of visual intelligence and multi-dimensional perception and accelerate the business innovation and application. Therefore in the direction of "5G and multi-dimensional perception" the Company can carry out the research and development work quickly by reusing the resources and achievements of the R&D center at Hangzhou headquarter seize the opportunities of the industry development and optimize the use efficiency of the funds raised and the layout of the project investment. After the project has reused the resources of the R&D center at Hangzhou headquarters the Company has reduced the investment amount in hardware and software of the special laboratory and R&D facilities to be set up as planned in Chengdu taking into account such factors as saving operating costs and improving the use efficiency of the funds raised. 3. The Company held the 4th Meeting of the 8th Board of Directors and the 3rd Meeting of the 8th Board of Supervisors on January 12 2024 and the First Extraordinary General Meeting of Shareholders of 2024 on January 29 2024 during which the 2232025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text "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 Not Applicable progress or expected benefits (by project) Notes on major changes in project feasibility after Not Applicable change Note 1: There are differences between the cumulative total amount of investment as of the period end and the total amount of various projects which are caused by rounding.Note 2: The interest income from bank deposits is the excess of the actual investment amount of the related projects over the total investments committed using raised funds. 4. Verification opinions of intermediary institutions on the storage and use of the raised funds □Applicable □ Not Applicable Upon verification BDO China Shu Lun Pan CPAs (special general partnership) is of the opinion that the special report on the deposit management and use of the funds raised by Dahua in 2025 has been prepared in all material respects in accordance with the relevant provisions of the Rules for the Supervision of Raised Funds of Listed Companies (CSRC Announcement [2025] No. 10) of China Securities Regulatory Commission (CSRC) SZSE Guidelines No. 1 for Self-regulation of Listed Companies—Standardized Operation (Standardized Operation Guidelines) and SZSE Guidelines No. 2 for Self-regulation of Listed Companies— Announcement Format and faithfully reflects the Company's deposit management and use of the funds raised in 2025.After verification the sponsor believes that Dahua's deposit and use of funds raised in 2025 comply with the Administrative Measures for Sponsorship Business of Securities Issuance and Listing the Shenzhen Stock Exchange (SZSE) Listing Rules the Rules for the Supervision of Raised Funds of Listed Companies the SZSE Guidelines No. 1 for Self-regulation of Listed Companies—Standardized Operation (Standardized Operation Guidelines) and other regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange concerning the management of raised funds. The Company has stored the raised funds in a dedicated account and used them for designated purposes. There is no disguised change in the use of the raised funds or damage to shareholders' interests and there is no illegal use of the raised funds.XVII. Explanations on Other Significant Matters □Applicable □ Not Applicable The company held the twelfth meeting of the eighth Board of Directors on April 08 2025 and reviewed and approved the "Proposal on the Plan to Repurchase Company Shares" agreeing that the company would repurchase by centralized competitive bidding trading part of the company's domestically issued RMB common stock (A shares) for cancellation in accordance with law to reduce registered capital. 4. From May 21 2025 to April 17 2026 the company 2242025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text repurchased 17493500 shares through the special securities account for share repurchase via competitive bidding with the highest transaction price at RMB 19.81 per share the lowest transaction price at RMB 15.16 per share and a total transaction amount of RMB 309953187 (excluding transaction fees). For details please refer to the announcement published by the Company on the CNINFO (http://www.cninfo.com.cn).XVIII. Significant Events of the Company's Subsidiaries □Applicable □ Not Applicable 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"). For detailed information please refer to the announcement disclosed on July 16 2025 on CNINFO (http://www.cninfo.com.cn). 2. On November 17 2025 the Company held the 18th meeting of the eighth Board of Directors and the 14th meeting of the eighth Board of Supervisors and on November 28 2025 held the 2025 first extraordinary General Meeting of Shareholders at which it reviewed and approved the "Plan of Zhejiang Dahua Technology Co. Ltd. on the Spin-off of Its Subsidiary Zhejiang HuaRay Technology Co. Ltd. for Listing on the Main Board of the Hong Kong Stock Exchange" and related proposals. The Company intends to spin off its controlling subsidiary Huaray Technology for listing on the Main Board of the Hong Kong Stock Exchange. Upon completion of this spin-off Dahua Technology will continue to hold a controlling stake in HuaRay Technology and both parties will focus on their respective core businesses to support the high-quality development of the industry. Please refer to the "plan on the spin-off and listing of subsidiary Zhejiang HuaRay Technology Co. Ltd. on the Main Board of the Hong Kong Stock Exchange" and other announcements published on CNINFO http://www.cninfo.com.cn on November 18 2025 for details. 2252025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 Bon convert Shares Proportio us ed from Proport Quantity newly Others Subtotal Quantity n shar capital ion issued es reserve s I. Shares with -- Limited Sales 1191426894 36.15% 0 0 0 1170806074 35.62% 2062082020620820 Condition 1. Shares Held 00.00%0000000.00% by State 2. Shares Held by State- 2931034008.89%000002931034008.92% owned Legal Persons 3. Other -- Domestic 898323494 27.26% 0 0 0 877702674 26.70% 2062082020620820 Shares Shares held by domestic legal 0 0.00% 0 0 0 0 0 0 0.00% persons Shares held by domestic - - 89832349427.26%00087770267426.70% natural 20620820 20620820 persons 4. Foreign 00.00%0000000.00% Shares Including: Shares held by 00.00%0000000.00% overseas legal persons Shares held by foreign natural 0 0.00% 0 0 0 0 0 0 0.00% persons II. Shares 11670 Without 2104202839 63.85% 0 0 75860 11746661 2115949500 64.38% 801 Restrictions 2262025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 1. RMB 11670 Ordinary 2104202839 63.85% 0 0 75860 11746661 2115949500 64.38% 801 Shares 2. Foreign Shares Listed 0 0.00% 0 0 0 0 0 0 0.00% in China 3. Foreign Shares Listed 00.00%0000000.00% in Foreign Countries 4. Other 0 0.00% 0 0 0 0 0 0 0.00% 11670-100.00 III. Total 3295629733 100.00% 0 0 -8874159 3286755574 80120544960% Reasons for changes in shares □Applicable □ Not Applicable 1. During the reporting period under the 2022 stock option and restricted share incentive plan because the company's performance did not meet the conditions for release of the lock-up and incentive holders left the company the company repurchased and cancelled 20544960 restricted shares held by incentive holders that had not yet been released from the lock-up; 2. During the reporting period incentive recipients under the 2022 stock option and restricted share incentive plan voluntarily exercised options for a total of 11670801 shares; 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 has 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 of Shareholders. 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. Pursuant to authorization by the General Meeting of Shareholders and the Board of Directors incentive recipients may carry out the voluntary exercise of stock options during the period from July 11 2024 to July 10 2025.Transfer for changes in shares □ Applicable □Not Applicable Effects of changes in shares on the basic earnings per share ("EPS") diluted EPS net assets per share attributable to common shareholders of the Company and other financial indexes over the last year and last period □Applicable □ Not Applicable During the reporting period changes in share capital occurred due to the Company's repurchase and cancellation of restricted shares and the voluntary exercise by incentive recipients. The impact on the Company's basic earnings per 2272025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text share diluted earnings per share and net assets per share attributable to ordinary shareholders for the most recent year and the most recent period is detailed in "Section II VI. Key Accounting Data and Financial Indicators".Other contents that the Company considers necessary or are required by the securities regulatory authorities to disclose □ Applicable □Not Applicable 2. Changes in Restricted Stocks □Applicable □ Not Applicable Unit: Share Number Of Number of Number of Number of Shares With increased unlocked shares with Name of Limited Sales shares with shares with limited sales Reasons for Date of Shareholder Condition At limited sales limited sales condition at limited sales unlocking The Beginning condition in condition in the end of the Of The Period current period current period period According to the relevant Lock-up provisions on shares for the directors Fu Liquan 767901735 0 0 767901735 management supervisors of shares held and senior by directors management and senior management Issuance of China Mobile restricted Communicatio 293103400 0 0 293103400 shares to April 14 2026 ns Group Co.specific Ltd.objects According to the relevant Lock-up provisions on shares for the directors Chen Ailing 53447110 0 0 53447110 management supervisors of shares held and senior by directors management and senior management According to the relevant Lock-up provisions on shares for the directors Wu Jun 51879664 0 0 51879664 management supervisors of shares held and senior by directors management and senior management Lock-up According to shares for the relevant Wu Jian 1218701 0 190800 1027901 directors provisions on supervisors the 2282025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text and senior management management of shares held by directors and senior management According to the relevant Lock-up provisions on shares for the directors Zhao Yuning 984450 0 244800 739650 management supervisors of shares held and senior by directors management and senior management According to the relevant Lock-up provisions on shares for the directors Zhu Jiantang 806869 0 190800 616069 management supervisors of shares held and senior by directors management and senior management According to the relevant Lock-up provisions on shares for the directors Li Zhijie 705450 0 190800 514650 management supervisors of shares held and senior by directors management and senior management According to the relevant Lock-up provisions on shares for the directors Xu Zhicheng 661950 0 190800 471150 management supervisors of shares held and senior by directors management and senior management According to Other senior the relevant Lock-up management provisions of shares for former shares directors supervisors 20717565 0 19612820 1104745 management supervisors and equity of directors and senior incentive supervisors management recipients and senior management Total 1191426894 0 20620820 1170806074 -- -- 2292025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text II. Issuance and Listing of Securities 1. Securities (Excluding Preferred Share) Issued in Reporting Period □ Applicable □Not Applicable 2. Explanation on changes in total number of the Company's shares & the structure of shareholders and the structure of assets and liabilities □Applicable □ Not Applicable During the reporting period the total number of the company's shares and its shareholder structure both changed; for details see this report's "Section VI Changes in Share Capital and Shareholders"—"I. Changes in Share Capital".Changes in the company's asset and liability structure are detailed in the relevant parts of this report's "Section VIII Financial Report". 3. Existing shares held by internal staff of the Company □ Applicable □Not Applicable III. Particulars about the Shareholders and Actual Controller 1. Total Number of Shareholders and Their Shareholdings Unit: Share Total Number of Preferred Total number Total Shareholders of common Total number of preferred number of (If Any) (Refer shareholders shareholders (if any) (refer common to Note 8) at the end of to Note 8) with resumed sharehold Whose Voting 160507 previous 179787 0 voting rights at the end of 0 ers at the Rights have month before previous month before the end of the been the disclosure disclosure date of the reporting Recovered at date of the annual report period the End of the annual report Reporting Period Shareholding situation of shareholders holding over 5% of shares or the top 10 shareholders (excluding shares lent through refinancing) Number of Pledges Number of Change Number of Name of Nature of Shareh shares held Markings Or shares held at s in the shares held Sharehold Sharehol olding with limited Freezing the end of the reportin without limited er der Ratio sales reporting period g period sales condition State of Quant conditions Shares ity Domestic Not Fu Liquan Natural 31.15% 1023868980 0 767901735 255967245 Applica 0 Person ble 2302025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text China Mobile State- Not Communi owned 8.92% 293103400 0 293103400 0 Applica 0 cations Legal ble Group Person Co. Ltd.Domestic - Not Zhu Natural 4.37% 143720360 12507 0 143720360 Applica 0 Jiangming Person 200 ble Hong Kong Overseas Not 49693 Securities Legal 3.49% 114827577 0 114827577 Applica 0 345 Clearing Person ble Co. Ltd.Domestic Not Chen Natural 2.17% 71262813 0 53447110 17815703 Applica 0 Ailing Person ble Domestic Not Wu Jun Natural 2.10% 69172886 0 51879664 17293222 Applica 0 Person ble Industrial Bank Co.Ltd. - Huaxia CSI Not Robotic 47170 Others 1.88% 61728075 0 61728075 Applica 0 Trading 000 ble Open Index Securities Investmen t Fund Domestic China Non- Not Securities state- 1.21% 39611241 0 0 39611241 Applica 0 Finance owned ble Co. Ltd. Legal Person Industrial and Commerci al Bank of China Limited - Huatai- - Not PineBridg Others 0.99% 32563530 16165 0 32563530 Applica 0 e CSI 300 00 ble Exchange -traded Open-end Index Securities Investmen t Fund Cathay 20798 Not Others 0.78% 25793650 0 25793650 0 Haitong 285 Applica 2312025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Securities ble Co. Ltd. - Tianhong CSI Robotic Exchange Traded Open-End Index Securities Investmen t Fund Strategic investors or general legal persons becoming shareholders of the top 10 common Not Applicable shares as a result of the placement of new shares (if any) (see Note 3) Description of the association relationship Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company is not aware of or concerted action of whether other shareholders are associated with each other or are persons acting in above-mentioned concert.shareholders Explanation of the above shareholders involved in Not Applicable proxy/trustee voting rights and abstention from voting rights Special note on the existence of repurchase As of the end of the reporting period the repurchase-dedicated securities account of special accounts Zhejiang Dahua Technology Co. Ltd. held 36180901.00 shares of the company among the top 10 representing 1.10% of the company's total share capital; such shares are not included in shareholders (if any) the above top ten shareholders list in accordance with requirements.(see Note 10) Shareholding of the top 10 unlimited sale condition shareholders (excluding shares lent through refinancing and lock- up shares for senior management) Number of shares held Type of Shares without limited sales Name of Shareholder condition at the end of Type of Shares Quantity the reporting period RMB Common Fu Liquan 255967245 255967245 Stock RMB Common Zhu Jiangming 143720360 143720360 Stock RMB Common Hong Kong Securities Clearing Co. Ltd. 114827577 114827577 Stock Industrial Bank Co. Ltd. - Huaxia CSI Robotic RMB Common 6172807561728075 Trading Open Index Securities Investment Fund Stock RMB Common China Securities Finance Co. Ltd. 39611241 39611241 Stock 2322025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Industrial and Commercial Bank of China Limited - RMB Common Huatai-PineBridge CSI 300 Exchange-traded 32563530 32563530 Stock Open-end Index Securities Investment Fund Cathay Haitong Securities Co. Ltd. - Tianhong RMB Common CSI Robotic Exchange Traded Open-End Index 25793650 25793650 Stock Securities Investment Fund RMB Common National Social Security Fund 103 24000000 24000000 Stock China Construction Bank Stock Corporation - E RMB Common Fund CSI 300 Exchange Traded Open-End Index- 23244743 23244743 Stock Initiated Securities Investment Fund PICC Life Insurance Company Limited - dividend - RMB Common 2289094722890947 individual insurance dividend Stock Explanation on associated relationship or persons acting in concert among top ten shareholders Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The without limited shares and between top ten Company is not aware of whether other shareholders are shareholders without limited shares and top ten associated with each other or are persons acting in concert.shareholders Explanation on Top 10 common stock shareholders' participation in securities margin None 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 □ 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. 2. Particulars about the Controlling Shareholder Nature of the controlling shareholder: Natural person-owned Type of the controlling shareholder: Natural person Whether he/she has obtained the Name of the controlling shareholder Nationality right of residence in another country or region Fu Liquan China No Main occupation and title Chairman As of April 01 2026 Mr. Fu Liquan directly held 7.48% of Leapmotor (HK.09863); Mr. Fu Liquan Ms. Chen Ailing together with Mr. Zhu Jiangming Shares held in other listed and Ms. Liu Yunzhen (Mr. Zhu Jiangming's spouse) constitute an acting-in- companies by controlling or holding concert relationship regarding Leapmotor's shares and jointly and ultimately in the reporting period hold approximately 23.89% of Leapmotor's shares making them Leapmotor's largest shareholder group. 2332025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 3. The Actual Controller of the Company and Persons Acting in Concert Nature of the actual controller: Domestic natural person Type of the actual controller: Natural person Whether he/she has Name of the actual Relationship with the actual obtained the right of Nationality controller controller residence in another country or region Fu Liquan Himself China No Chen Ailing Himself China No Mr. Fu Liquan serves as Chairman of the Company; Ms. Chen Ailing serves as a Main occupation and title director of the Company.Information about other listed companies at home None and abroad controlled in the last ten years Change of the actual controller in the reporting period □ Applicable □Not Applicable No change has happened to the actual controller in the reporting period Block Digram for Property Right and Control Relationship between the Company and Actual Controllers Fu Liquan Chen Ailing Zhejiang Dahua Technology Co. Ltd.The actual controller controls the Company via trust or other ways of asset management □ Applicable □Not Applicable 4. The cumulative number of pledged shares of the Company's controlling shareholder or the largest shareholder and their persons acting in concert accounts for 80% of the shares they hold in the Company □ Applicable □Not Applicable 5. Particulars about other corporate shareholders with shareholding proportion over 10% □ Applicable □Not Applicable 2342025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 6. Restrictions on share reduction by the controlling shareholder actual controller restructuring party and other commitment entities □ Applicable □Not Applicable IV. Specific implementation of the share repurchase during the reporting period The progress on share repurchase □Applicable □ Not Applicable Proportion of repurchas ed shares Proposed Propose Proposed number of Purpo Number of in the Plan Proportion to repurchas d shares to be se of shares target disclosure total share e amount repurch repurchased repurc repurchase shares time capital (10000 ase (shares) hase d (shares) under the RMB) period equity incentive plan (if any) Based on the lower Based on the limit of the lower bound of repurchase amount the repurchase and the upper limit of amount and the The the repurchase price upper bound of share the estimated the repurchase repurch number of shares price the ase that can be repurchased impleme repurchased is shares are ntation Canc approximately expected to period el and Not less 10822511 shares; account for shall be reduc than RMB based on the upper approximately within e 300 limit of the 0.33% of the 12 regist million repurchase amount company's total months ered April 09 (inclusive) and the upper limit of share capital; from the capita 16361300 2025 and not the repurchase price based on the date the l in more than the estimated upper bound of General accor RMB 500 number of shares the repurchase Meeting dance million that can be amount and the of with (inclusive) repurchased is upper bound of Shareho the approximately the repurchase lders law 18037518 shares. price the approve The specific number repurchased s this of repurchased shares are repurch shares shall be expected to ase subject to the actual account for plan.number of shares approximately repurchased when 0.55% of the the repurchase company's total 2352025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text period expires. share capital.The progress in reduction and repurchase of shares by means of centralized competitive bidding □ Applicable □Not Applicable V. Preferred Stock Related Information □ Applicable □Not Applicable There are no preferred shares in the reporting period. 2362025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Section VII Bond-Related Information □ Applicable □Not Applicable 2372025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Section VIII Financial Report I. Audit Reports Audit Opinion Type Standard Unqualified Opinion Signature Date of Audit Report April 17 2026 BDO China Shu Lun Pan CPAs (special general Name of Audit Institution partnership) Audit Report Ref. Xin Kuai Shi Bao Zi [2026] No.ZF10343 Name of Certified Public Accountant Du Na Wang Keping Audit Report Text To the shareholders of Zhejiang Dahua Technology Co. Ltd.: I. Audit opinion We have audited the financial statements of Zhejiang Dahua Technology Co. Ltd. (hereinafter referred to as Dahua Technology) including the consolidated and parent company balance sheet as of December 31 2025 the consolidated and parent company income statement the consolidated and parent company cash flow statement and the consolidated and parent company statement of changes in owners' equity for the year 2025 as well as the notes to the relevant financial statements.In our opinion the attached financial statements are prepared in all material respects in accordance with the Accounting Standards for Business Enterprises and fairly reflect the consolidated and parent company financial position of Dahua Technology as of December 31 2025 and the consolidated and parent company operating results and cash flows of Dahua Technology for the year 2025.II. Basis for Our Opinion We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our responsibilities under those standards are further described in the CPA's Responsibilities for the Audit of the Financial Statements section of our report. According to the "Independence Standard No.1 — Requirements for Independence for Financial Statement Audit and Review Engagements" and the "Code of Ethics for Chinese Certified Public Accountants" we are independent of Dahua Technology and have fulfilled our other ethical responsibilities in accordance with the Code. We complied with the independence requirements for audits of public?interest entities during our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.III. Key Audit Matters Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.The key audit matters we identified in the audit are summarized as follows: Key Audit Matters How the matter was addressed in the audit (I) Recognition of Revenue Dahua Technology's operating The main audit procedures we performed with respect to the above key audit revenue for 2025 was RMB matters included: 32743783300. It is an important 1. Understand Dahua Technology's internal control systems and financial component of Dahua accounting systems related to revenue recognition including their design and 2382025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Technology's income statement. execution and test the effectiveness of their operation; Because operating revenue is 2. Distinguish different types of sales taking into account the actual one of Dahua Technology's key circumstances of the specific business check the provisions of the related performance indicators there is contracts and assess whether revenue recognition complies with the Accounting an inherent risk that management Standards for Business Enterprises; may manipulate the time point of 3. Perform an analytical review to assess the reasonableness of changes in revenue recognition to achieve sales revenue and gross margin; specific targets or expectations. 4. Perform confirmation procedures: On a sample basis confirm with customers Therefore we determined the annual sales amounts and year-end amounts not yet collected and obtain revenue recognition to be a key customs statistics amount certificates for material revenue from overseas sales; audit matter. For disclosures of 5. Sample testing for different types of revenue: for standard products sold revenue recognition policies see domestically and for overseas sales by overseas subsidiaries sample inspection Note 3 (26); for disclosures of of product outbound records shipping orders customer-signed records and operating revenue amounts see payment records; for standard products exported by domestic companies Note 5 (45). sample inspection of outbound records customs declaration forms bills of lading and payment records; for system integration sales sample inspection of product delivery records reconciliation of the shipping list with the contract list installation and commissioning completion acceptance reports and payment records; 6. Sample the transactions made before or after the balance sheet date and check their delivery records customs declaration form and other relevant supportive documents to confirm whether the revenues have been recognized in an appropriate accounting period.(II) Recoverability of Accounts Receivable At the end of 2025 Dahua The main audit procedures we performed with respect to the above key audit Technology's net accounts matters included: receivable amounted to RMB 1. Understand the key internal controls over financial reporting established by 15474088200. Management management in relation to credit control accounts receivable collection and needs to make significant assessment of the receivables impairment provision; judgments about the identification 2. Understand the company's customer credit management procedures and of accounts receivable collection measures for overdue debts; impairment and the likelihood of 3. For accounts receivable for which expected credit loss is calculated by future cash inflows from groupings of credit risk characteristics review management's classification of the customers. Management's groupings and assess the reasonableness of the estimated expected credit loss estimates and assumptions are rates based on historical credit loss rates current conditions and forecasts of subject to uncertainty. Since the future economic conditions. We assessed the reasonableness of the provision amount of accounts receivable is ratio with reference to the historical audit experience and prospective significant to the financial information tested the accuracy of the portfolio classification and aging division statements as a whole and the of the accounts receivable and recalculated the accuracy of the accrued amount recoverability involves the of the expected credit loss; estimation and judgment of future 4. We sampled the accounts receivable for which bad debt provision was cash flows we recognize the recognized on an individual basis and reviewed the basis for management's recoverability of accounts assessment of expected credit losses based on the financial position and receivable as a key audit matter. creditworthiness of customers historical repayment records and projections of For disclosures regarding the future economic conditions. We corroborated management's assessment amount of accounts receivable against the evidence we obtained during the audit including customer see Note 5 (4). background information past transaction history and collection status and forward-looking considerations; 5. Check the collection status after the balance sheet date; 6. Select customer samples according to sampling principles and confirm accounts receivable balances; 7. Analyze whether there are amounts of accounts receivable that are unrecoverable and require write-off.IV. Other Information The management of Dahua (hereinafter referred to as the Management) is responsible for the other information. The other information includes the information covered in Dahua Technology's 2025 annual report but excludes the financial statements and our audit report.Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. 2392025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text In combination with our audit of the financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for the Financial Statements The Management is responsible for preparing the financial statements in accordance with the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation and for designing implementing and maintaining necessary internal control to ensure that the financial statements are free from material misstatements whether due to frauds or errors.In preparing the financial statements the Management is responsible for assessing Dahua's ability to continue operating disclosing matters related to continuous operation (if applicable) and using the hypothesis of continuous operation unless there is a plan to liquidate terminate operations or no other realistic options.The management is responsible for supervising the financial reporting process of Dahua.VI. Responsibilities of the CPA for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an audit report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.As part of an audit in accordance with the audit standards we exercise professional judgment and maintain professional skepticism throughout the audit. We also: (I) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.(II) Understand the internal controls related to the audit in order to design appropriate audit procedures.(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.(IV) Conclude on the appropriateness of using the going concern assumption by the management. At the same time draw a conclusion based on the audit evidence obtained on whether there is significant uncertainty in matters or situations that may cause major doubts about Dahua's ability in continuous operation. If we conclude that a material uncertainty exists we are required to draw attention in our audit report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the information available up to the date of our audit report. However future events or conditions may result in Dahua's inability to continue operating.(V) Evaluate the overall presentation (including the disclosures) structure and content of the financial statements and whether the financial statements fairly reflect the relevant transactions and events. 2402025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within Dahua Technology to express an opinion on the consolidated financial statements. We are responsible for guiding supervising and implementing the group audit and remain solely responsible for our audit opinion.We have communicated with those charged with governance on such matters as the scope of audit as planned the schedule and material audit findings including the defects in the internal control that are worth paying attention to found in this audit.We have also provided those charged with governance with a statement on observing the professional ethics related to independence and communicated with those charged with governance on all the relationships and other matters that might be reasonably deemed to affect our independence and relevant preventative measures.From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our audit report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.BDO China Shu Lun Pan CPAs Chinese CPA: Du Na (Special General Partnership) (Engagement Partner) Chinese certified public accountant: Wang Keping Shanghai China April 17 2026 2412025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text II. Financial Statements Units of financial reports in the notes: RMB 1. Consolidated Balance Sheet Prepared by: Zhejiang Dahua Technology Co. Ltd.December 31 2025 Unit: RMB Item Closing Balance Opening Balance Current Asset: Monetary Fund 8655402920.75 11181803423.83 Deposit Reservation for Balance Loans To Banks and Other Financial Institutions Trading Financial Assets 309157871.90 229927529.28 Derivative Financial Assets Notes Receivable 781468637.01 777750260.09 Accounts Receivable 15474088183.37 17046094518.79 Receivables Financing 1102535053.89 841815267.43 Prepayments 452738445.83 310574867.09 Premium Receivable Reinsurance Accounts Receivable Reinsurance Contract Reserves Receivable Other Receivables 278640285.60 293728850.42 Including: Interest Receivable Dividends Receivable Buying Back the Sale of Financial Assets Inventory 6090171290.38 5203560771.25 Among Them: Data Resources Contract Assets 63320727.97 87397517.09 Held-for-sale Assets Non-current Assets Due within One 468560399.63237608641.30 Year Other Current Assets 578508611.11 1035802016.58 Total Current Assets 34254592427.44 37246063663.15 Non-current Asset: Granting of Loans and Advances Creditor's Right Investment Other Creditor's Right Investments Long-term Accounts Receivable 406038709.81 744412552.00 Long-term Equity Investment 725578108.27 722241568.57 2422025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Other Equity Instrument Investments Other Non-current Financial Assets 1989086297.12 1274697490.87 Investment Property 128753117.16 139280586.26 Fixed Assets 6136201592.87 4973953628.05 Construction in Progress 7264951.14 1254554187.36 Productive Biological Asset Oil And Gas Assets Right-of-use Assets 272401498.24 232124277.86 Intangible Asset 556559379.70 578035438.59 Among Them: Data Resources Development Expenditure Among Them: Data Resources Goodwill 6615294.18 6615294.18 Long-term Deferred Expense 77865093.40 99410405.42 Deferred Income Tax Assets 901731191.20 1136746080.45 Other non-current Assets 7095917123.71 4327776909.06 Total non-current assets 18304012356.80 15489848418.67 Total Assets 52558604784.24 52735912081.82 Current Liabilities: Short-term Loan 203714311.58 995000000.00 Borrowing from the Central Bank Borrowings from Banks and Other Financial Institutions Trading Financial Liabilities 4268603.52 Derivative Financial Liabilities Notes Payable 3659798751.88 3599974242.02 Accounts Payable 5132662730.78 5877976861.13 Advances from Customers Contract Liabilities 1142677702.11 1282204348.75 Proceeds from the Sale and Repurchase of Financial Assets Deposit Taking and Interbank Deposit Receiving from Vicariously Traded Securities Receiving from Vicariously Sold Securities Employee Benefits Payable 2012428897.92 1811053208.92 Taxes Payable 396827917.38 405860321.63 Other Payables 470148655.21 637013560.05 Including: Interest Payable Dividends PAYABLE 22951560.23 Payable Service Charges and 2432025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Commissions Reinsurance Accounts Payable Liabilities Held for Sale Non-current Liabilities Due within 246856805.30117227812.08 One Year Other Current Liabilities 167754385.11 160151530.23 Total Current Liabilities 13432870157.27 14890730488.33 Non-current Liabilities: Insurance Contract Reserves Long-term Loan Bonds Payable Including: Preferred Stocks Perpetual Bonds Lease Liabilities 165399173.65 114313807.41 Long-term Payables Long-term Employee Benefits Payable Expected Liabilities 205416324.68 268194691.24 Deferred Income 170075423.69 186181012.99 Deferred Income Tax Liabilities 58695790.95 19162.22 Other non-current Liabilities 52027750.30 102264089.02 Total non-current Liabilities 651614463.27 670972762.88 Total Liabilities 14084484620.54 15561703251.21 Owner's Equity: Share Capital 3286755574.00 3295629733.00 Other Equity Instruments Including: Preferred Stocks Perpetual Bonds Capital Reserves 7233189509.62 7156767235.86 Less: Treasury Share 709079918.27 564654524.63 Other Comprehensive Income 123340202.22 104358460.57 Special Reserve Surplus Reserves 1647814866.50 1647814866.50 General Risk Reserve Undistributed Profits 26175119977.18 24388130399.78 Total Equity Attributable to the Parent 37757140211.2536028046171.08 Company's Shareholders Minority Shareholders' Equity 716979952.45 1146162659.53 Total Owners' Equity 38474120163.70 37174208830.61 Total Liabilities and Shareholders' 52558604784.2452735912081.82 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 2442025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Item Closing Balance Opening Balance Current Asset: Monetary Fund 3869028263.97 5897243923.06 Trading Financial Assets 309157871.90 229927529.28 Derivative Financial Assets Notes Receivable 34287312.73 46362406.21 Accounts Receivable 4804032357.71 4139497263.56 Receivables Financing 1028367050.09 719599879.51 Prepayments 7535881.46 16906692.15 Other Receivables 14419762765.91 13384626871.41 Including: Interest Receivable Dividends Receivable Inventory 274292584.81 284771384.52 Among Them: Data Resources Contract Assets 10404926.63 11494282.17 Held-for-sale Assets Non-current Assets Due within One 265686734.813807555.80 Year Other Current Assets 52150488.33 538541006.72 Total Current Assets 25074706238.35 25272778794.39 Non-current Asset: Creditor's Right Investment Other Creditor's Right Investments Long-term Accounts Receivable 16867520.16 1954398.82 Long-term Equity Investment 8059152598.16 8162278853.75 Other Equity Instrument Investments Other Non-current Financial Assets 1922146297.12 1249757490.87 Investment Property 17601790.19 19105162.49 Fixed Assets 1641975098.18 1727649143.59 Construction in Progress 1881260.65 3656082.30 Productive Biological Asset Oil And Gas Assets Right-of-use Assets 67685894.76 65543667.49 Intangible Asset 123926707.86 128466583.90 Among Them: Data Resources Development Expenditure Among Them: Data Resources Goodwill Long-term Deferred Expense 35014336.52 51808153.67 Deferred Income Tax Assets 193183542.15 Other non-current Assets 5471914876.79 3122186359.68 2452025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Total non-current assets 17358166380.39 14725589438.71 Total Assets 42432872618.74 39998368233.10 Current Liabilities: Short-term Loan 1598602.00 Trading Financial Liabilities 776841.98 Derivative Financial Liabilities Notes Payable 604401336.52 654898101.96 Accounts Payable 1107265780.24 998713006.78 Advances from Customers Contract Liabilities 149069472.22 127382878.88 Employee Benefits Payable 1176600774.89 1115800008.44 Taxes Payable 200782347.92 170444725.36 Other Payables 1616965525.04 1350481637.98 Including: Interest Payable Dividends PAYABLE 22951560.23 Liabilities Held for Sale Non-current Liabilities Due within 35716560.18 30155334.29 One Year Other Current Liabilities 30510459.35 25720588.07 Total Current Liabilities 4917349632.47 4479934349.63 Non-current Liabilities: Long-term Loan Bonds Payable Including: Preferred Stocks Perpetual Bonds Lease Liabilities 34103799.33 23992169.41 Long-term Payables Long-term Employee Benefits Payable Expected Liabilities 47960042.35 39764161.76 Deferred Income 28380113.01 30091476.57 Deferred Income Tax Liabilities 55988750.49 Other non-current Liabilities 2643146.35 44307.49 Total non-current Liabilities 169075851.53 93892115.23 Total Liabilities 5086425484.00 4573826464.86 Owner's Equity: Share Capital 3286755574.00 3295629733.00 Other Equity Instruments Including: Preferred Stocks Perpetual Bonds Capital Reserves 6959326804.35 6888762462.22 Less: Treasury Share 709079918.27 564654524.63 Other Comprehensive Income Special Reserve 2462025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Surplus Reserves 1647814866.50 1647814866.50 Undistributed Profits 26161629808.16 24156989231.15 Total Owners' Equity 37346447134.74 35424541768.24 Total Liabilities and Shareholders' 42432872618.7439998368233.10 Equity 3. Consolidated Income Statement Unit: RMB Item Fiscal Year 2025 Fiscal Year 2024 I. Total Operating Revenue 32743783343.80 32180931827.17 Among them: operating revenue 32743783343.80 32180931827.17 Interest Income Earned Premiums Service Charge and Commission Income II. Total Operating Cost 30092180267.03 30034509485.68 Including: Operating Cost 19442555822.77 19681686604.51 Interest Expense Service Charge and Commission Expenses Surrender Value Net Claims Paid Net Amount of Withdrawn Reserve for Insurance Liability Contract Policyholder Dividend Expense Reinsurance Cost Taxes and Surcharges 261333892.77 221316771.47 Sales Expenses 5113115207.43 5166733337.95 Administration Expenses 1295533102.38 1141408186.63 Research and Development Expense 4336016982.76 4213255565.73 Financial Expenses -356374741.08 -389890980.61 Including: Interest Expenses -21982366.93 45574086.20 Interest Income 281626532.36 420512502.16 Add: Other Income 1128559648.89 1007110693.00 Investment Income (Mark "-" for 634527324.20464818698.59 Loss) Including: investment income from 31405872.4314958434.46 joint ventures and joint ventures Profits from recognition termination of -32933054.03-1428980.24 financial assets at amortized cost Exchange Gains (Mark "-" for Losses) Profit of Net Exposure Hedging (Mark "-" for Loss) 2472025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Incomes From Changes in Fair Value 456241338.28-43415404.28 (Mark "-" for Loss) Credit Impairment Losses (Mark "-" -344518177.83-487985185.36 for Loss) Asset Impairment Losses (Mark "-" -170170693.27-107759438.82 for Loss) Asset Disposal Income (Mark "-" for 919283.62805684.66 Loss) III. Operating Profit (Mark "-" for 4357161800.662979997389.28 Loss) Add: non-operating Revenue 20098798.19 19028847.26 Less: non-operating Expense 14666784.91 9556681.90 IV. Total Profit (Mark "-" for Total 4362593813.942989469554.64 Loss) Less: Income Tax Expense 480336123.28 70297282.61 V. Net Profit (Mark "-" for Net Loss) 3882257690.66 2919172272.03 (I) Classified by Operation Continuity 1. Net Profit as a Going Concern 3882257690.662919172272.03 (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 3857923611.862905728684.03 Shareholders of Parent Company 2. Minority Shareholders' Profit and 24334078.8013443588.00 Loss VI. Other Comprehensive Income 19139221.0137679325.95 Net of Tax Other comprehensive income net of tax attributable to the parent 18981741.65 38365439.74 company owners (I) Other comprehensive income that cannot be reclassified into profit or loss 1. Re-measure the variation of the defined benefit plan 2. Other comprehensive income that cannot be transferred to P/L under the equity method 3. Changes in the fair value of investment in other equity instruments 4. Changes in the fair value of the credit risk of the enterprise 5. Others (II) Other comprehensive income that 18981741.6538365439.74 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 2482025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 translation 18981741.6538365439.74 differences of financial statements 7. Others Net amount of other comprehensive incomes after tax attributable to 157479.36 -686113.79 minority shareholders VII. Total Comprehensive Income 3901396911.67 2956851597.98 Total comprehensive income attributable to the parent company's 3876905353.51 2944094123.77 owners Comprehensive income attributable 24491558.1612757474.21 to minority shareholders VIII. Earnings per Share (I) Basic Earnings per Share 1.18 0.90 (II) Diluted Earnings per Share 1.18 0.90 Legal Representative: Fu Liquan Person in Charge of Accounting Work: Xu Qiaofen Head of Accounting Department: Zhu Zhuling 4. Income Statement of the Parent Company Unit: RMB Item Fiscal Year 2025 Fiscal Year 2024 I. Operating Revenue 9895145943.53 7518191042.08 Less: Operating Cost 1522212574.95 1465137970.11 Taxes and Surcharges 147063864.90 111825883.38 Sales Expenses 2320819158.45 2431702053.58 Administration Expenses 679638807.88 635934038.09 Research and Development Expense 3178007111.78 3065795148.03 Financial Expenses -183451623.08 -287777462.98 Including: Interest Expenses 2487841.38 31357085.45 Interest Income 203790709.21 260649260.35 Add: Other Income 888795923.28 811362856.47 Investment Income (Mark "-" for 820241804.25302148808.75 Loss) Including: investment income from -9005045.91-34908353.35 joint ventures and joint ventures Profits from Derecognition of Financial Assets at Amortized Cost -2701007.12 -2965408.15 (Mark "-" for Loss) Profit of Net Exposure Hedging (Mark "-" for Loss) Incomes From Changes in Fair Value 456128165.58 -42997536.67 2492025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (Mark "-" for Loss) Credit Impairment Losses (Mark "-" -37036585.14-41819656.19 for Loss) Asset Impairment Losses (Mark "-" -22962094.07-912196.39 for Loss) Asset Disposal Income (Mark "-" for 301975.76-173915.70 Loss) II. Operating Profit (Mark "-" for Loss) 4336325238.31 1123181772.14 Add: non-operating Revenue 2308486.50 4086587.52 Less: non-operating Expense 2825413.07 2141311.75 III. Total Profit (Mark "-" for Total 4335808311.741125127047.91 Loss) Less: Income Tax Expense 260233700.27 -434676316.89 IV. Net Profit (Mark "-" for Net Loss) 4075574611.47 1559803364.80 (I) Net Profit as a Going Concern 4075574611.471559803364.80 (Mark "-" for Net Loss) (II) Net Profit of Discontinued Operation (Mark "-" for Net Loss) V. Net Amount of Other Comprehensive Incomes After Tax (I) Other comprehensive income that cannot be reclassified into profit or loss 1. Re-measure the variation of the defined benefit plan 2. Other comprehensive income that cannot be transferred to P/L under the equity method 3. Changes in the fair value of investment in other equity instruments 4. Changes in the fair value of the credit risk of the enterprise 5. Others (II) Other comprehensive income that will be reclassified as P/L 1. Other comprehensive income that can be transferred to P/L under the equity method 2. Changes in the fair value of 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 translation differences of financial statements 7. Others VI. Total Comprehensive Income 4075574611.47 1559803364.80 VII. Earnings per Share 2502025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (I) Basic Earnings per Share 1.25 0.48 (II) Diluted Earnings per Share 1.25 0.48 5. Consolidated Cash Flow Statement Unit: RMB Item Fiscal Year 2025 Fiscal Year 2024 I. Cash Flow Generated by Operational Activities: Cash from sales of merchandise and 37166485140.3434669187205.38 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 1161835960.16 1155885839.76 Cash received from other operating 1559471001.521493775604.08 activities Subtotal of cash inflow from 39887792102.0237318848649.22 operating activities Cash paid for goods and services 23589297705.08 21837355751.06 Net increase in customer loans and advances Net increase in deposits with central bank and other financial institutions Cash paid for original insurance contract claims Net increase of funds lent Cash paid for interests service charges and commissions Cash paid for policy dividends Cash paid to and for employees 7881079660.99 7891665626.88 Taxes and fees paid 2161872449.15 2369366594.70 2512025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Other paid cash related to 2347744121.522510223067.28 operational activities Total cash outflow from operating 35979993936.7434608611039.92 activities Net cash flow generated by operating 3907798165.282710237609.30 activities II. Cash Flow from Investment Activities: Cash arising from disposal of 13888767865.3115446431122.05 investments Cash received from investment 48130564.6024092429.23 income Net cash recovered from disposal of fixed assets intangible assets and 4863819.67 1760730.93 other long-term assets Net cash received from disposal of 273925550.1290212801.88 subsidiaries and other business units Cash received from other activities 10404060.6145191811.49 related to investing Total cash inflow from investing 14226091860.3115607688895.58 activities Cash paid for the acquisition and construction of fixed assets 673228356.90907507733.38 intangible assets and other long- term assets Cash paid for investment activities 16635622584.65 19513379638.01 Net increase in pledge loans Net cash paid for acquisition of 12269004.98 subsidiaries and other business units Cash paid for other investment 12033035.006618141.94 activities Total cash outflow from investing 17320883976.5520439774518.31 activities Net amount of cash flow generated -3094792116.24-4832085622.73 by investment activities III. Cash flow from Financing Activities: Cash Arising from Absorbing 176854909.2050992358.19 Investments Among them: cash received by subsidiaries from minority shareholder investments Cash arising from borrowings 904664311.58 2314437200.00 Other received cash related to financing activities Subtotal of cash inflow from financing 1081519220.782365429558.19 activities Cash paid for debt repayment 1695950000.00 3061814753.64 Cash paid for distribution of dividends profits or interest 2097667033.56 1891030117.80 payments Among them: dividends and profits paid by subsidiaries to minority 7978707.94 shareholders 2522025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Cash paid for other financing 646552332.90216004106.63 activities Total cash outflow from financing 4440169366.465168848978.07 activities Net Cash Flow Generated by -3358650145.68-2803419419.88 Financing Activities IV. Impact of Exchange Rate Fluctuations on Cash and Cash 37311942.08 106138654.64 Equivalents V. Net Increase In Cash and Cash -2508332154.56-4819128778.67 Equivalents Add: beginning balance of cash and 11061530816.2815880659594.95 cash equivalents VI. Ending Balance of Cash and 8553198661.7211061530816.28 Cash Equivalents 6. Cash Flow Statement of the Parent Company Unit: RMB Item Fiscal Year 2025 Fiscal Year 2024 I. Cash Flow Generated by Operational Activities: Cash from sales of merchandise and 9297340598.3710850756525.93 provision of services Tax refund Cash received from other operating 1066120545.031125632790.31 activities Subtotal of cash inflow from 10363461143.4011976389316.24 operating activities Cash paid for goods and services 1489200982.06 968711350.46 Cash paid to and for employees 3910630166.64 4402936109.00 Taxes and fees paid 1134208667.99 1449599709.32 Other paid cash related to 1213951590.381358974968.97 operational activities Total cash outflow from operating 7747991407.078180222137.75 activities Net cash flow generated by operating 2615469736.333796167178.49 activities II. Cash Flow from Investment Activities: Cash arising from disposal of 14551566767.4115426645123.37 investments Cash received from investment 2773105.5410967181.79 income Net cash recovered from disposal of fixed assets intangible assets and 10123593.02 13649372.37 other long-term assets Net cash received from disposal of subsidiaries and other business units Cash received from other activities 14600.0012992141.32 related to investing Total cash inflow from investing 14564478065.9715464253818.85 activities Cash paid for the acquisition and 127171773.68205035322.18 construction of fixed assets 2532025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text intangible assets and other long- term assets Cash paid for investment activities 15989274984.65 18381974779.81 Net cash paid for acquisition of subsidiaries and other business units Cash paid for other investment 2000.00 activities Total cash outflow from investing 16116448758.3318587010101.99 activities Net amount of cash flow generated -1551970692.36-3122756283.14 by investment activities III. Cash flow from Financing Activities: Cash Arising from Absorbing 176854909.2050992358.19 Investments Cash arising from borrowings 101598602.00 Other received cash related to 1434643442.541290399680.88 financing activities Subtotal of cash inflow from financing 1713096953.741341392039.07 activities Cash paid for debt repayment 100000000.00 1350000000.00 Cash paid for distribution of dividends profits or interest 2094630120.40 1862686225.19 payments Cash paid for other financing 2601228591.312597195502.26 activities Total cash outflow from financing 4795858711.715809881727.45 activities Net Cash Flow Generated by -3082761757.97-4468489688.38 Financing Activities IV. Impact of Exchange Rate Fluctuations on Cash and Cash -11577198.45 56956344.12 Equivalents V. Net Increase In Cash and Cash -2030839912.45-3738122448.91 Equivalents Add: beginning balance of cash and 5843167456.419581289905.32 cash equivalents VI. Ending Balance of Cash and 3812327543.965843167456.41 Cash Equivalents 2542025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 7. Consolidated Statement of Changes in Owners' Equity Amount of This Period Unit: RMB Fiscal Year 2025 Equity Attributable to the Parent Company Owners Other Equity Instruments Other Minority Item Speci Genera Total Perpe Less: Compr ShareholCapital al Surplus l Risk Undistribut Owners' Share Capital Preferred tual Oth Treasur ehensiv Others Subtotal ders'Reserves Reser Reserves Reserv ed Profits y Share e Equity Equity Stocks Bond ers ve e s Income I. Balance at 56465 10435 360280 371742 3295629733.71567616478124388130114616 the End of Last 4524.6 8460.5 46171.0 08830.6 007235.864866.50399.782659.53 Year 3 7 8 1 Add: Change in accounting policies Correction of Errors in the Previous Period Others II. Balance at 56465 10435 360280 371742 3295629733.71567616478124388130114616 the Start of This 4524.6 8460.5 46171.0 08830.6 007235.864866.50399.782659.53 Year 3 7 8 1 III. Increases or Decreases in 14442 - 7642221898117869891729091299911 This Period -8874159.00 5393.6 429182 73.76741.65577.404040.17333.09 (Mark "-" for 4 707.08 Decreases) (I) Total 18981 3857923 387690 244915 390139 2552025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Comprehensive 741.65 611.86 5353.51 58.16 6911.67 Income (II) Owner 14442-- Contributions 862285 306442 -8874159.005393.6670709364267 and Capital 99.70 38.72 452.9414.22 Reductions 1. Common 14442 - - 180376 stock invested -8874159.00 5393.6 135261 135261 10.94 by the owner 4 941.70 941.70 2. Capital Invested by Holders of Other Equity Instruments 3. Amount of Share-based Payments 681909 681909 306442 988352 Recorded into 88.76 88.76 38.72 27.48 Shareholders' Equity 4. Others --- (III) Profit 2070934207093207093 Distribution 034.464034.464034.46 1. Appropriation of Surplus Reserves 2. Appropriation of General Risk Reserves 3. Distribution - - - to Owners (or 2070934 207093 207093 Shareholders) 034.46 4034.46 4034.46 2562025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 2572025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (V) Special Reserves 1. Withdrawal in This Period 2. Used in This Period ---- (VI) Others 980632 980632 484318 494124 5.945.94503.96829.90 IV. Balance at 70907 12334 377571 384741 3286755574.72331816478126175119716979 the End of This 9918.2 0202.2 40211.2 20163.7 009509.624866.50977.18952.45 Period 7 2 5 0 Amount of Previous Period Unit: RMB Fiscal Year 2024 Equity Attributable to the Parent Company Owners Other Equity Instruments Other Minority Item Speci TotalLess: Compr General Sharehol Preferr Perpetu Capital al Surplus Undistribut Other Owners'Share Capital Other Treasury ehensiv Risk Subtotal ders' ed al Reserves Reser Reserves ed Profits s Equity s Share e Reserve Equity Stocks Bonds veIncome I. Balance at 347191 32944689971241274669965993164723233340511164923588409 the End of Last 73825.4 0.005996.49863.45020.834495.00186.550573.584399.00 Year 2 Add: Change in accounting policies Correction of Errors in the Previous Period Others 2582025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text II. Balance at 347191 32944689971241274669965993164723233340511164923588409 the Start of 73825.4 0.005996.49863.45020.834495.00186.550573.584399.00 This Year 2 III. Increases or Decreases - - 32641238365580371.10540791308871290114 in This Period 1160743.00 182045 187579 39.37439.7450213.232345.66431.61 (Mark "-" for 338.82 14.05 Decreases) (I) Total 3836529057282944091275742956851 Comprehensiv 439.74684.034123.7774.21597.98 e Income (II) Owner - Contributions 311330 214339 267935 2411326 1160743.00182045 and Capital 00.42 082.24 87.40 69.64 338.82 Reductions 1. Common - 3241262156182156187 stock invested 1160743.00 182045 26.39708.2108.21 by the owner 338.82 2. Capital Invested by Holders of Other Equity Instruments 3. Amount of Share-based -- Payments 267935 2551396 127962127962 Recorded into 87.40 1.43 5.975.97 Shareholders' Equity 4. Others ---- (III) Profit 580371. 18516491851067978701859047 Distribution 50 470.809099.307.94807.24 2592025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 1. Appropriation 580371. - of Surplus 50 580371.50 Reserves 2. Appropriation of General Risk Reserves 3. Distribution - - - - to Owners (or 1851069 185106 797870 1859047 Shareholders) 099.30 9099.30 7.94 807.24 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 2602025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text retained earnings of the variation of the defined benefit plan 5. Other Carry- forward Retained Earnings of the Comprehensiv e Income 6. Others (V) Special Reserves 1. Withdrawal in This Period 2. Used in This Period -- 150823150823 (VI) Others 503302 4882202 8.958.95 67.728.77 IV. Balance at 10435 360280 329562973715676564654164781243881301146163717420 the End of This 8460.5 46171.0 3.007235.86524.634866.50399.782659.538830.61 Period 7 8 2612025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 8. Statement of Changes in Owners' Equity of the Parent Company Amount of This Period Unit: RMB Fiscal Year 2025 Other Equity Instruments Other Item Compr Special TotalLess: Treasury Surplus Share Capital Preferred Perpetual Othe Capital Reserves ehensiv Reserv Undistributed Profits Others Owners'Share Reserves Stocks Bonds rs e e Equity Income 354245 I. Balance at the 3295629733. 1647814 6888762462.22564654524.6324156989231.1541768.2 End of Last Year 00 866.50 4 Add: Change in accounting policies Correction of Errors in the Previous Period Others II. Balance at the 354245 3295629733.1647814 Start of This 6888762462.22 564654524.63 24156989231.15 41768.2 00866.50 Year 4 III. Increases or Decreases in 192190 This Period -8874159.00 70564342.13 144425393.64 2004640577.01 5366.50 (Mark "-" for Decreases) (I) Total 407557 Comprehensive 4075574611.47 4611.47 Income (II) Owner -8874159.00 61381923.26 144425393.64 - 2622025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Contributions 919176 and Capital 29.38 Reductions 1. Common - stock invested -8874159.00 18037610.94 144425393.64 135261 by the owner 941.70 2. Capital Invested by Holders of Other Equity Instruments 3. Amount of Share-based Payments 433443 43344312.32 Recorded into 12.32 Shareholders' Equity 4. Others - (III) Profit -2070934034.46207093 Distribution 4034.46 1. Appropriation of Surplus Reserves 2. Distribution to - Owners (or -2070934034.46 207093 Shareholders) 4034.46 3. Others (IV) Internal Carry-forward of Shareholders' Equity 1. Capital 2632025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 918241 (VI) Others 9182418.87 8.87 2642025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text IV. Balance at 373464 3286755574.1647814 the End of This 6959326804.35 709079918.27 26161629808.16 47134.7 00866.50 Period 4 Amount of Previous Period Unit: RMB Fiscal Year 2024 Other Equity Instruments Other Speci Item Ot TotalLess: Treasury Comprehe al Surplus Undistribut Share Capital Preferred Perpetual Other Capital Reserves he Owners'Share nsive Reser Reserves ed Profits Stocks Bonds s rs EquityIncome ve I. Balance at the 746699863.4 1647234 24448835 355254026 3294468990.006881563679.88 End of Last Year 5 495.00 337.15 38.58 Add: Change in accounting policies Correction of Errors in the Previous Period Others II. Balance at the 746699863.4164723424448835355254026 Start of This 3294468990.00 6881563679.88 5495.00337.1538.58 Year III. Increases or Decreases in - - - This Period 1160743.00 7198782.34 182045338.8 580371.50 29184610 100860870.(Mark "-" for 2 6.00 34 Decreases) (I) Total 1559803155980336 Comprehensive 364.804.80 Income (II) Owner - 187063223.1160743.00 3857141.61 Contributions 182045338.8 43 2652025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text and Capital 2 Reductions 1. Common - 215618708. stock invested 1160743.00 32412626.39 182045338.8 21 by the owner 2 2. Capital Invested by Holders of Other Equity Instruments 3. Amount of Share-based - Payments -28555484.7828555484.7 Recorded into 8 Shareholders' Equity 4. Others -- (III) Profit 580371.501851649185106909 Distribution 470.809.30 1. Appropriation - of Surplus 580371.50 580371.50 Reserves 2. Distribution to - - Owners (or 1851069 185106909 Shareholders) 099.30 9.30 3. Others (IV) Internal Carry-forward of Shareholders' Equity 1. Capital Reserves 2662025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 3341640.73 3341640.73 IV. Balance at 564654524.6164781424156989354245417 the End of This 3295629733.00 6888762462.22 3866.50231.1568.24 Period 2672025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 December 31 2025 the Company has cumulatively issued a total of 3286755574 shares with registered capital of RMB 3286755574.00. The registered address is No. 1187 Bin'an Road Binjiang District Hangzhou and the headquarters address is No. 1399 Binxing Road Binjiang District Hangzhou.The main business activities of the Company are: research and development production and sales of AIoT products and provision of video-centric AIoT solutions and operational services.The actual controllers of the Company are Fu Liquan and Chen Ailing.This financial statement has been approved by the Board of Directors on April 17 2026.IV. Basis for Preparing the Financial Statements 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. 2682025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 December 31 2025 as well as the consolidated and parent company operating result and cash flow for the year 2025. 2. Accounting Period The fiscal year is from January 01 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 the overseas entities Dahua Technology (HK) Limited and PIXFRA (HONG KONG) CO. LIMITED use Renminbi as their 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 provision for Individual accruals of 0.5% of total assets at the end of bad debt reserves the period Bad debts recovered or reversed of the individual Significant amount of recovered or reversed bad debt receivables in the period in excess of 0.5% of the total provision of accounts receivable in this period assets at the end of the period Write-off of individual receivables in excess of 0.5 per Write-off of important accounts receivable cent of total assets at the end of the period Project investment budget in excess of 0.5% of total Important Projects under Construction assets 2692025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Prepayments over 1 year in excess of 0.1% of total Significant prepayments aged over 1 year assets Significant accounts payable aged over 1 year Payables over 1 year in excess of 0.5% of total assets Other significant payable aged over 1 year Receivables over 1 year in excess of 0.5% of total assets Contractual liabilities over 1 year in excess of 0.5% of Significant contractual liabilities over 1 year total assets Cash Flow from Significant Investment Activities Projects with cash flow exceeding 5% of total assets Overseas operating entities with one of their total Significant overseas operating entities assets/total revenues/total profits exceeding 15% of the Group's Non-wholly owned subsidiaries with one of their total Important non-wholly owned subsidiaries assets/total revenues/total profits exceeding 15% of the Group's Income from investments in joint ventures or associates Important joint ventures or associates exceeding 10% of the latest audited net profit of the listed company 6. The accounting treatment of business combinations involving enterprises under common control and business combinations not involving enterprises under common control Business combinations under the same control: The assets and liabilities acquired by the merging party in a business combination (including goodwill incurred in the acquisition of the merged party by the ultimate controlling party) shall be measured at the book value of the assets and liabilities of the merged party in the consolidated financial statement of the ultimate controlling party on the date of combination. The difference between the book value of the net assets obtained and the book value of the consideration paid for the combination (or total nominal value of the issued shares) is adjusted to capital premium in capital reserve. Adjustments shall be made to retained earnings in the event that the share premiums in the capital reserves are not sufficient for write-down.Business combinations not involving enterprises under common control: The cost of combination is the fair value of the assets paid the liabilities incurred or assumed and the equity securities issued by the acquirer to acquire the control of the acquiree on the acquisition date. Where the cost of combination is higher than the fair value of the identifiable net assets acquired from the merging party in business combination such difference shall be recognized as goodwill; where the cost of combination is less than the fair value of the identifiable net assets acquired from the merging party in business combination such difference shall be charged to the profit or loss for the period. The identifiable assets liabilities and contingent liabilities of the acquiree obtained in the combination that satisfy the recognition criteria 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 Statements 2702025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text The Company regards the entire corporate group as a single accounting entity and prepares the consolidated financial statements in accordance with uniform accounting policies to reflect the overall financial position operating results and cash flows 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.* 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 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 2712025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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.* 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 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; 2722025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (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 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: 2732025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text * 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.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 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 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. 2742025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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. (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 2752025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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. (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. 2762025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (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.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. 2772025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Except for the above-mentioned accounts receivable for which an individual provision for bad debts has been made the Company divides other financial instruments into several combinations based on their credit risk characteristics and determines expected credit losses on the basis of the combinations. The Company's combination categories and determination basis of expected credit losses for notes receivable accounts receivable accounts receivable financing other receivables contract assets (including contract assets presented in other non-current assets) and long-term receivables (including long-term receivables due within one year presented in non-current assets due within one year) are as follows: Item Combination Determination Basis Categories Notes Receivable The expected credit loss is calculated by default risk exposure and the expected credit loss rate for the Receivables Financing Type of Notes 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 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 exposure and the expected credit loss rate for the Accounts receivable other receivables Affiliatedcombined 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 exposure and the expected credit loss rate for the assets presented in other non-current Nature of thefunds 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 2782025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 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 2792025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text calculated on the ground of the contracted price. If an enterprise holds more inventories than the quantity stipulated in the sales contract the net realizable value of the exceeding part shall be calculated on the ground of general selling price.If the Company accrues the provision for impairment of inventories on a combination basis the combination categories and determination basis as well as the basis for determination of the net realizable value of different types of inventory are as follows: Combination Categories of Determination Basis for Combination Basis for the Determination of Net Inventories Realizable Value Raw materials Categories of Inventories Estimated selling price of inventories - Work-in-progress Categories of Inventories Estimated costs until completion - Finished goods Categories of Inventories Estimated selling expenses - Related Contract Performance Costs Categories of Inventories taxes 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. (2) Criteria for the Recognition and Reporting Method of Discontinued Operation 2802025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 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 2812025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 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 2822025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 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. 2832025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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.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; those transferred into intangible assets will begin amortization from the current month. The standards and time points for converting the Company's projects under construction into fixed assets and intangible assets are as follows: 2842025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Category The standards and time points for converting into fixed asset and intangible asset Housing and building The main construction works and supporting works have been substantially completed and have reached the intended usable state.Device The equipment installation and debugging is completed and is ready for use.Software Software development and testing have been completed and it can be used normally. 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.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. 2852025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 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 10 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.Research phase: Scheduled innovative investigations and research activities to obtain and understand scientific or 2862025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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.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 2872025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 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 2882025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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.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 2892025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 (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. 2902025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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.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 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 products are 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; 2912025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text * Principles for recognizing revenue from labor services: revenue is recognized at the time the labor service is provided. 33. Contract Costs The contract costs comprise the contract performance cost and the cost to obtain a contract.The costs incurred by the Company for contract performance which fall outside the scope of the enterprise accounting standards such as inventories fixed assets or intangible assets will be identified as an asset of the contract performance costs upon satisfying all of the following conditions: (1) The costs are directly related to one existing contract or one contract that is expected to be obtained; (2) The costs enrich the Company's resources for future contract performance; (3) The costs are estimated to be recovered. The incremental costs which are incurred by the Company to obtain the contract and are expected to be recovered will be identified as an asset of the costs to obtain a contract.The assets related to the contract costs will be amortized on the same basis for recognition of the income from commodities or services related to the assets; but if the amortization period of the costs to obtain the contract is no more than 1 year the Company will include such costs in the current profit or loss once occurred.In case that the book value of assets related to contract costs is higher than the difference between the two items below the Company will accrue the impairment provision for the extra part and recognize that part as impairment loss: (1) 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. (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 2922025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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: (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 2932025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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.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 will depreciate the right-to-use assets through the straight-line method. If it can be reasonably 2942025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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; 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 2952025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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; 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.The variable lease payments that are not included in the measurement of the net lease investment shall be included in 2962025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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.* 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 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 2972025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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.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 2982025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 (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 services. After 13% 9% 6% simple collection rate VAT deducting the input tax that is of 5% simple collection rate of 3% allowed to be deducted from the 0% and tax-free sales tax in the current period the difference shall be the value added tax Urban Maintenance and Construction Actually paid turnover tax 7% 5% Tax Enterprise Income Tax Taxable income 15% 16.5% 20% 25% 2992025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 Huaruijie Technology Co. Ltd. 15% Zhejiang Huayixin Technology Co. Ltd. 15% Zhejiang Huajian Technology 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.Tianjin Dahua Information Technology Co. Ltd. 20% Mianyang Huacheng Zhiyuan Technology Co. Ltd. 20% Chengdu Dahua Wisdom Information Technology Co. 20% Ltd.Luoyang Dahua Zhiyu Information Technology Co. Ltd. 20% Nanyang Dahua Intelligent Information Technology Co. 20% Ltd.Guangdong Huaxiyue Intelligent Technology Co. Ltd. 20% Guangxi Dahua Yunlian Information Technology Co. Ltd. 20% Zhejiang Huajie New Energy Operation Service Co. Ltd. 20% Beijing Huayue Shangcheng Information Technology 20% Service Co. Ltd.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% 3002025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 Recording of High-tech Enterprises Recognized and Reported by the Certification Authorities 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. and Zhejiang Huayixin Technology 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 rate of 15%. (3) According to the "Announcement on the Recording of High-tech Enterprises Recognized and Reported by the Certification Authorities in Zhejiang Province in 2023" issued by the Office for the Administration of the Certification of National High-tech Enterprises on December 28 2023 the subsidiary Zhejiang PixFra Technology Co. Ltd. was recognized as a high-tech enterprise with a validity period of 3 years. The corporate income tax for this year is calculated and paid at a reduced rate of 15%. (4) According to the "Announcement on the Filing for Record of High-tech Enterprises Recognized by Zhejiang Province's Recognizing Authorities in 2025" issued by the Office for the Administration of the Certification of National High-tech Enterprises on January 09 2026 the subsidiaries Zhejiang Huaruijie Technology Co. Ltd. Zhejiang Huajian Technology Co. Ltd. and Zhejiang Dahua System Engineering Co. Ltd. have been recognized as high-tech enterprises. The validity period of the recognition is three years and corporate income tax for the year is to be 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 04 2024 our subsidiaries Jiangsu Huaruipin Technology Co. Ltd. was certified as high-tech enterprises with validity for 3 years. The corporate income tax for this year was paid at a reduced rate of 15%. (6) According to the Announcement on Further Supporting Tax and Fee Policies for the Development of Small Low- Profit Enterprises and Individual Industrial and Commercial Households (Ministry of Finance State Taxation Administration Announcement 2023 No. 12) and the Ministry of Finance and State Taxation Administration's Announcement on Preferential Income Tax Policies for Small Low-Profit Enterprises and Individual Industrial and Commercial Households (Ministry of Finance 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. Mianyang Huacheng Zhiyuan Technology Co. Ltd. Chengdu Dahua Wisdom Information Technology Co. Ltd. Luoyang Dahua Zhiyu Information Technology Co. Ltd. Nanyang Dahua Intelligent Information Technology Co. Ltd. Guangdong 3012025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Huaxiyue Intelligent Technology Co. Ltd. Guangxi Dahua Yunlian Information Technology Co. Ltd. Zhejiang Huajie New Energy Operation Service Co. Ltd. Beijing Huayue Shangcheng Information Technology 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 Huajian Technology Co. Ltd. Zhejiang Shuhang Intelligent Technology Co. Ltd. Jilin Dahua Zhilian Technology Co. Ltd. Zhengzhou Airport New Town Huaao Technology Co. Ltd. and Hainan Dahua Huizhi Technology Co. Ltd. are entitled to include 25% of the portion of annual taxable income not exceeding RMB 3 million in their taxable income and pay corporate income tax at a 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 (Cai Shui [2011] No.100) issued by the Ministry of Finance and the State Administration of Taxation Zhejiang Dahua Technology Co. Ltd. Zhejiang Dahua System Engineering Co. Ltd. Hangzhou Xiaohua Technology Co. Ltd. Zhejiang Huafei Intelligent Technology Co.Ltd. Jiangsu Huaruipin Technology Co. Ltd. Zhejiang Huaruijie Technology Co. Ltd. Zhejiang Huajian Technology Co. Ltd. Zhejiang Huaxiao Technology Co. Ltd. Zhejiang PixFra Technology Co. Ltd. Zhejiang HuaRay Technology Co. Ltd. shall first calculate and pay value-added tax at a tax rate of 13% on the sales of self-developed software products and the portion of the actual tax burden exceeding 3% shall be refunded after review by the competent tax authority. (9) Pursuant to the "Announcement on the VAT Additional Deduction Policy for Advanced Manufacturing Enterprises" (Announcement on the Additional Value-Added Tax ("VAT") Credit Policy for Advanced Manufacturing Enterprises) of the Ministry of Finance and the State Taxation Administration from January 01 2023 to December 31 2027 advanced manufacturing enterprises are allowed to reduce their VAT payable by an additional 5% of the deductible input VAT for the current period. Zhejiang HuaRay Technology Co. Ltd. has enjoyed the preferential tax treatment under the VAT Additional Deduction Policy for advanced manufacturing enterprises for the periods in which it meets the policy requirements.VII. Notes to the Items in the Consolidated Financial Statement 1. Cash and Bank Balances Unit: RMB Item Closing Balance Opening Balance Cash on Hand 2726.44 2584.78 Bank Balance 8547853566.50 10946929688.16 3022025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Other Cash and Bank Balances 107546627.81 234871150.89 Total 8655402920.75 11181803423.83 Including: Total Amount Deposited in 1687221554.151423057560.40 Overseas Banks Funds held overseas with restrictions 4128151.492657263.82 on remittance. 2. Trading Financial Assets Unit: RMB Item Closing Balance Opening Balance Financial assets at fair value through 309157871.90229927529.28 profit or loss in this period Among them: Financial products 252021917.81 80200959.64 Investment in equity instruments 57135954.09 149726569.64 Total 309157871.90 229927529.28 3. Notes Receivable (1) Disclosure of Notes Receivable Unit: RMB Item Closing Balance Opening Balance Bank Acceptance Notes 663138917.20 636567044.09 Commercial Acceptance Notes 118329719.81 141183216.00 Total 781468637.01 777750260.09 (2) Disclosure by Bad Debt Provision Method Unit: RMB Closing Balance Opening Balance Bad Debt Book Balance Book Balance Bad debt Provision Category Provision Book Book Amou Proporti Accrued value Proporti Accrued Value Amount Amount Amount nt on Ratio on Ratio Notes Receiva ble with the Bad Debt 80122 100.0019755781468797002100.0019251777750 Provision 4476. 2.47% 2.42% %839.90637.01021.69%761.60260.09 Accrued 91 Based on Combina tions 3032025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Among them: Bank 67109 Accepta 79524 663138 643969 74029 636567 1374.83.76%1.19%80.80%1.15% nce 57.74 917.20 978.30 34.21 044.09 94 Notes Commer cial 13013 1180311832915303211848141183 Accepta 3101. 16.24% 9.07% 19.20% 7.74% 382.16719.81043.39827.39216.00 nce 97 Notes 80122 100.0019755781468797002100.0019251777750 Total 4476.%839.90637.01021.69%761.60260.09 91 Bad debt provision on a portfolio basis: RMB 19755839.90 Unit: RMB Closing Balance Name Book Balance Bad Debt Provision Accrued Ratio Bank Acceptance Notes 671091374.94 7952457.74 1.19% Commercial Acceptance 130133101.9711803382.169.07% Notes Total 801224476.91 19755839.90 If the bad debt provisions of notes receivable are made according to the general model of expected credit losses: □ Applicable □Not Applicable (3) Provision for Bad Debts Accrued Recovered Or Reversed in This Period Provision for bad debts in the current period: Unit: RMB Amount of Changes in the Current Period Opening Closing Category Balance Recovered orAccrued Written Off Others Balance Reversed Bank Acceptance 7402934.21 555892.73 -6369.20 7952457.74 Notes Commercial Acceptance 11848827.39 45445.23 11803382.16 Notes Total 19251761.60 555892.73 45445.23 -6369.20 19755839.90 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 412362305.64 Total 412362305.64 3042025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (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 29430244.47 Total 29430244.47 4. Accounts Receivable (1) Disclosure by Aging Unit: RMB Aging Closing Balance Opening Balance Within 1 year (including 1 year) 13663038886.36 15089860120.54 1 to 2 years 1645640085.55 1830327585.83 2 to 3 years 912562556.60 934561606.86 3 years or above 2439645289.02 2452808503.88 3 to 4 years 627675903.47 646840898.86 4 to 5 years 459609172.31 507603962.50 5 years or above 1352360213.24 1298363642.52 Total 18660886817.53 20307557817.11 (2) Disclosure by Bad Debt Provision Method Unit: RMB Closing Balance Opening Balance Bad Debt Book Balance Book Balance Bad debt provision Category Provision Book Book Amou Proporti Accrued value Proporti Accrued Value Amount Amount Amount nt on Ratio on Ratio Accounts receivabl es with the bad 1744 debt 167513 68958 180133 169137 10995 09740.93%96.05%0.89%93.90% provision 847.33 94.06 348.24 414.11 934.13 1.39 accrued based on single item Among them: Accounts 1744 1675136895818013316913710995 receivabl 0974 0.93% 96.05% 0.89% 93.90% 847.3394.06348.24414.11934.13 e with 1.39 3052025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text insignifica nt single amount but accrued for separate provision of bad debt Accounts receivabl es with the bad 1848 3019215467201273092317035 debt 6477 99.07%84786.16.33%19228942446899.11%25884.15.36%098584 provision 076. 83.31.8721.66 accrued 14 based on combinati ons Among them: 1848 Aging 30192 15467 20127 30923 17035 6477 Analysis 99.07% 84786. 16.33% 192289 424468 99.11% 25884. 15.36% 098584 076. Portfolio 83 .31 .87 21 .66 14 1866 3186715474203073261417046 0886100.00100.00 Total 98634. 088183 557817 63298. 094518 817.%% 16.37.1132.79 53 Bad debt provision on an individual basis: RMB 167513847.33 Unit: RMB Opening Balance Closing Balance Name Reason forBad Debt Bad Debt Accrued Book Balance Book Balance making bad Provision Provision Ratio debt provision Expected to Customer 1 49001963.55 49001963.55 48810663.55 48810663.55 100.00% be unable to recover Expected to Customer 2 36676477.42 36676477.42 be unable to recover Expected to Customer 3 20596426.50 20596426.50 20596426.50 20596426.50 100.00% be unable to recover Expected to Customer 4 17364187.02 17364187.02 100.00% be unable to recover Expected to Customer 5 14869091.58 14869091.58 100.00% be unable to recover Other Expected to 73858480.7762862546.6472769372.7465873478.6890.52% sporadic be partially 3062025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text customers unrecoverable Total 180133348.24 169137414.11 174409741.39 167513847.33 Bad debt provision based on combinations RMB 3019284786.83 Unit: RMB Closing Balance Name Book Balance Bad Debt Provision Accrued Ratio Within 1 year (including 1 13662302508.87683115386.645.00% year) 1 to 2 years 1631278923.30 163127892.33 10.00% 2 to 3 years 896487409.47 268946222.84 30.00% 3 to 4 years 605509769.50 302754884.75 50.00% 4 to 5 years 447790323.62 358232258.89 80.00% 5 years or above 1243108141.38 1243108141.38 100.00% Total 18486477076.14 3019284786.83 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 Closing Category Opening Balance Recovered or Accrued Written Off Others Balance Reversed Bad debt 345253529. 3186798 3261463298.32340157789.304496227.70-65072696.55 provision 21 634.16 345253529.3186798 Total 3261463298.32 340157789.30 4496227.70 -65072696.55 21634.16 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 345253529.21 Write-off of important accounts receivable: None 3072025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (5) Accounts Receivable and Contract Assets of the Top Five Closing Balances Collected by Debtors Unit: RMB Closing balance As a percentage of provision for Closing balance Accounts Closing balance of accounts bad debts on of accounts Name of Unit receivable of contract receivables and accounts receivable and closing balance assets total ending receivable and contract assets balance impairment of contract assets Customer 1 872613963.61 872613963.61 4.64% 43630698.18 Customer 2 565687976.12 565687976.12 3.01% 28284398.81 Customer 3 413575783.00 3049705.42 416625488.42 2.22% 125732860.77 Customer 4 333533107.03 333533107.03 1.77% 203804282.32 Customer 5 291257184.55 291257184.55 1.55% 17833873.74 2476668014.32479717719.7 Total 3049705.42 13.19% 419286113.82 13 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 15041352.56 152441.81 14888910.75 25290931.34 361398.92 24929532.42 assets O&M service 6997228.51 69972.29 6927256.22 7456278.33 75407.79 7380870.54 Quality guarantee 48526974.86 7022413.86 41504561.00 66497257.70 11410143.57 55087114.13 deposit Total 70565555.93 7244827.96 63320727.97 99244467.37 11846950.28 87397517.09 (2) Disclosure by Bad Debt Provision Method Unit: RMB Closing Balance Opening Balance Bad Debt Bad Debt Book Balance Book Balance Category Provision Book Provision Book Amou Proporti Accrued value Proporti Accrued Value Amount Amount Amount nt on Ratio on Ratio Provision of bad 7056 debts 100.00 72448 63320 99244 100.00 11846 87397 5555.10.27%11.94% based on % 27.96 727.97 467.37 % 950.28 517.09 93 combinati on 3082025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Among them: Combinat 7056 ion of 100.00 72448 63320 99244 100.00 11846 87397 5555.10.27%11.94% nature of % 27.96 727.97 467.37 % 950.28 517.09 93 the funds 7056 100.00724486332099244100.001184687397 Total 5555. 10.27% 11.94% %27.96727.97467.37%950.28517.09 93 Bad debt provision on a portfolio basis: RMB 7244827.96 Unit: RMB Closing Balance Name Book Balance Bad Debt Provision Accrued Ratio Combination of nature of 70565555.937244827.9610.27% the funds Total 70565555.93 7244827.96 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 Recovered or reversed Write-off in this Item Others Causes this period during the period period Completed but unsettled assets 208957.11 O&M service 5435.50 Quality guarantee deposit 4383496.51 -4233.20 Total 4597889.12 -4233.20 —— 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 1102535053.89 841815267.43 Total 1102535053.89 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 515418549.93 Total 515418549.93 3092025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (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 183761542.74 Total 183761542.74 7. Other Receivables Unit: RMB Item Closing Balance Opening Balance Other Receivables 278640285.60 293728850.42 Total 278640285.60 293728850.42 (1) Other Receivables 1) Other Receivables Categorized by the Nature of the Funds Unit: RMB Nature of the Funds Closing Balance Opening Balance Deposits 128012257.88 151154514.69 Prepaid or advance expense 93857582.93 122639225.03 Equity transfer fund 85651915.72 31149666.32 Employee home loan 63390368.00 78949911.00 Others 380286.52 6034131.37 Export tax rebate 106247.36 Total 371292411.05 390033695.77 2) Disclosure by Aging Unit: RMB Aging Closing Balance Opening Balance Within 1 year (including 1 year) 211656636.96 191651180.73 1 to 2 years 39709164.90 41084974.35 2 to 3 years 23092584.92 72462850.86 3 years or above 96834024.27 84834689.83 3 to 4 years 40476195.33 39666543.22 4 to 5 years 27126624.82 20632422.94 5 years or above 29231204.12 24535723.67 Total 371292411.05 390033695.77 3102025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3) Disclosure by Bad Debt Provision Method □Applicable □ Not Applicable Unit: RMB Closing Balance Opening Balance Bad Debt Bad debt Book Balance Book Balance Provision provision Category Book Book Accrue Amou Proportio Value Proporti Amoun Accrued Value Amount d Amount nt n on t Ratio Ratio Provision of bad 3712 debts 92652 24.95 278640 390033 96304 293728 9241100.00%100.00%24.69% based on 125.45 % 285.60 695.77 845.35 850.42 1.05 combinati on Among them: Aging 3712 9265224.9527864039003396304293728 Analysis 9241 100.00% 100.00% 24.69% 125.45%285.60695.77845.35850.42 Portfolio 1.05 3712 9265227864039003396304293728 Total 9241 100.00% 100.00% 125.45285.60695.77845.35850.42 1.05 Bad debt provision accrued on a portfolio basis: RMB 92652125.45 Unit: RMB Closing Balance Name Book Balance Bad Debt Provision Accrued Ratio Within 1 year (including 1 211656636.9610582831.845.00% year) 1 to 2 years 39709164.90 3970916.49 10.00% 2 to 3 years 23092584.92 6927775.48 30.00% 3 to 4 years 40476195.33 20238097.67 50.00% 4 to 5 years 27126624.82 21701299.85 80.00% 5 years or above 29231204.12 29231204.12 100.00% Total 371292411.05 92652125.45 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 44105647.9544799045.687400151.7296304845.35 January 01 2025 Balance as of January 01 2025 in this period --Transfer to phase -2254183.692254183.69 two 3112025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text --Transfer to phase -41478.39-212810.66254289.05 three Provisions of this 11644016.29 619028.22 260743.1612523787.67 period Write off in this 994333.023434841.497791414.5712220589.08 period Other Variations -2288966.94 -1623951.55 -43000.00 -3955918.49 Balance as of 38787429.0753425641.96439054.4292652125.45 December 31 2025 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 96304845.3512523787.6712220589.08-3955918.4992652125.45 provision Total 96304845.35 12523787.67 12220589.08 -3955918.49 92652125.45 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 12220589.08 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 Shanghai Zhicheng Equity Transfer 71683294.00 Within 1 year 19.31% 3584164.70 Technology Co. Fund Ltd. 3122025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Equity Transfer Lorex Holdings 13968621.72 3 to 4 years 3.76% 6984310.86 Fund Longquanyi District Finance Deposits 11832000.00 4 to 5 years 3.19% 9465600.00 Bureau Chengdu Shaoxing Municipal Public Deposits 4355930.00 5 years or above 1.17% 4355930.00 Security Bureau Daozhen Gelao 1–2 years RMB and Miao 400000.00 over Autonomous Deposits 3600000.00 0.97% 3240000.00 5 years RMB County Public 3200000.00 Security Bureau Total 105439845.72 28.40% 27630005.56 8. Prepayments (1) Aging Analysis of Prepayments is as Follows Unit: RMB Closing Balance Opening Balance Aging Amount Proportion Amount Proportion Within 1 year 416743268.21 92.05% 276949733.43 89.17% 1 to 2 years 25351403.65 5.60% 15277764.29 4.92% 2 to 3 years 3103159.09 0.68% 9380618.43 3.02% 3 years or above 7540614.88 1.67% 8966750.94 2.89% Total 452738445.83 310574867.09 (2) Advance Payment of the Top Five Closing Balances by Prepayment Parties The aggregate closing balance of the top five prepayments by counterparty concentration amounted to RMB 319757204.21 representing 70.63% of the total closing balance of prepayments. 9. Inventory Does the company need to comply with disclosure requirements in the real estate industry No 3132025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (1) Categories of Inventories Unit: RMB Closing Balance Opening Balance Provision for Provision for Impairment of Impairment of Item Inventories or Inventories orBook Provision for Book Value Book balance Provision for Book Value Balance Impairment of Impairment of Performance Performance Cost Cost 2105052120113241775556159.170049976 Raw materials 93727777.62 75056394.19 08.29330.67225.03 Work-in- 625385790 61426700 449547613. 11118787.84460827771.3111280157.80 progress .49 2.65 51 Finished 25005470 2398447 2309288663. 223128763 102099530.1878001025.54 goods 98.63 568.45 59 8.05 Contract 93264222290927689603747149. Performance 23365327.20 623434238.29 19687088.95.555.3534 Costs Outsourced 15685549315685549218478605. work-in- 218478605.32.263.2632 progress 6320482760901715387585437.520356077 Total 230311422.84 184024666.48 13.22290.38731.25 (2) Provision for Impairment of Inventories and Provision for Impairment of Contract Performance Cost Unit: RMB Decreased in the Current Increase amount for this period Opening Period Closing Item Balance Reversals or Balance Accrued Others Others write-offs Raw materials 75056394.19 50302855.25 28519423.33 3112048.49 93727777.62 Work-in- 11280157.806552723.445406230.511307862.8911118787.84 progress Finished 102099530.1 78001025.5460960614.6030815637.406046472.56 goods 8 Contract Performance 19687088.95 16384889.79 12706651.54 23365327.20 Costs 184024666.4134201083.0230311422.8 Total 77447942.78 10466383.94 884 3142025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 10. Non-current Assets Due within 1 Year Unit: RMB Item Closing Balance Opening Balance Long-term accounts receivables due 209488927.52237608641.30 within 1 year Large-denomination certificates of 259071472.11 deposit maturing within one year Total 468560399.63 237608641.30 11. Other Current Assets Unit: RMB Item Closing Balance Opening Balance Not deducted input tax 459100592.23 404856368.72 Prepaid enterprise income tax 41218310.03 36722593.44 Return cost receivable 10440716.33 12991543.19 Government bond reverse 19110391.10530974219.56 repurchase Short-term large-denomination 46572294.5250257291.67 certificates of deposit Issue expenses 2066306.90 Total 578508611.11 1035802016.58 12. Long-term Receivables (1) Long-term Receivables Unit: RMB Closing Balance Opening Balance Range of Item Bad Debt Bad Debt DiscouBook Balance Provision Book Value Book Balance Provision Book Value nt Rate Installme nt Payment 410547702.1 4508992.3 406038709.8 752811851.8 8399299.8 744412552.for Selling 3 2 1 0 0 00 Products Including: Unrealize d 40351529.69 40351529.69 87118128.29 87118128.29 3.69%- Financing 5.88% Income Total 410547702.1 4508992.3 406038709.8 752811851.8 8399299.8 744412552.3 2 1 0 0 00 3152025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (2) Disclosure by Bad Debt Provision Method Unit: RMB Closing Balance Opening Balance Bad Debt Categor Book Balance Book Balance Bad Debt Provision Provision y Book Book Am Accrued value Accrued Value Amount Proportion Amount Proportion Amount ount Ratio Ratio Provisio n of bad debts 450 8315 45089944639083992983992 based 100.00% 899 1.00% 100.00% 1.00% 3068 231.82239.50980.0999.80 on 2.32 0.29 combin ation Among them: Combin ation of 450 8315 45089944639083992983992 nature 100.00% 899 1.00% 100.00% 1.00% 3068 231.82239.50980.0999.80 of the 2.32 0.29 funds 4508315 45089944639083992983992 Total 100.00% 899 1.00% 100.00% 1.00% 3068 231.82239.50980.0999.80 2.320.29 Bad debt provision on a portfolio basis: RMB 4508992.32 Unit: RMB Closing Balance Name Book Balance Bad Debt Provision Accrued Ratio Combination of nature of 450899231.824508992.321.00% the funds Total 450899231.82 4508992.32 (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 8399299.803890307.484508992.32 provision Total 8399299.80 3890307.48 4508992.32 Significant amount of recovered or reversed bad debt provision in this period: None 3162025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 13. Long-term Equity Investments Unit: RMB Decrease/Increase in the current period Invest Openi ment Closin Adjust Openi ng profit Cash g ment Closin balan ng balan and divide Provison g ce of The invested balan ce of Invest Invest loss Other nds or ion forother balan entity ce provisi ments ment recog chang profit impair Other provisi compr ce on for (book on for increa decre nized es in declar ment sehens (book value) impair sed ased under equity ed to accru declin ive value) ment the distrib ed e in incom equity ute value e metho d I. Joint Ventures II. Joint Venture 50694309448517015221 Intelbras S.A. 2140 4162. 2959. 0077. 7268 6.572606337.10 - Ruicity Digital 5280 1988 2478 1988 8129 Technology 3494. 6629. 7307. 6629. 557.9 Co. Ltd. 38 20 19 20 9 Guangdong - Zhishi Digital 6196 6196 Technology 5.38 5.38 Co. Ltd.Ningbo Huayan Chuangxi 676297137734 Venture Capital 6764.409.90174. Investment 60656 Partnership (Limited Partnership) Dezhou Shuzhi Information 959.61955401.1 Technology 758.489 Co. Ltd.Sichuan Hengji Anhua Internet - 96026346 of Things 3255 55.0768.33 Technology 86.74 Co. Ltd.Guangxi FTZ Huaqin Wisdom Park 6890263217006984 Technology 82.819.020.0011.83 Research Institute Co.Ltd. 3172025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Ningbo Cida - Yongshun 1139 1269 2409 Intelligent 404.7 668.2 073.0 Technology 9 9 8 Co. Ltd.Zhejiang - Huachuang 8850 9182 8761 1006 Vision 2200. 418.8 6866. 7752. Technology 68 7 89 66 Co. Ltd.Huahongchang Intelligent - 2978 Technology 2978 76.17 (Jiangsu) Co. 76.17 Ltd.Shenzhen Aohua Urban 1700 - 1539 Operation and 000.0 1607 -82.18 203.1 Development 0 14.72 0 Co. Ltd.Rudong Jintianhua 900026679266 Security 00.004.0174.01 Technology Co. Ltd.Bozhou Boda - Yongshun 1000 7693 2306 Technology 00.00 8.88 1.12 Co. Ltd.Zhejiang 68007016 Gaohua AIoT 2164 000.0443.5 Technology 43.52 02 Co. Ltd. 722295003140918244861988186372551988 6346 Subtotal 4156 000.0 5872. 418.8 9959. 6629. 9504. 7810 6629. 68.33 8.5704370620998.2720 722295003140918244861988186372551988 6346 Total 4156 000.0 5872. 418.8 9959. 6629. 9504. 7810 6629. 68.33 8.5704370620998.2720 14. Other Non-current Financial Assets Unit: RMB Item Closing Balance Opening Balance Investment in equity instruments 80563656.86 42303530.71 Investment in financial products 1908522640.26 1232393960.16 Total 1989086297.12 1274697490.87 15. Investment Properties (1) Investment Properties Measured by Cost Method □Applicable □ Not Applicable 3182025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Unit: RMB Buildings and Item Total Constructions Ⅰ. Original Book Value 1. Opening Balance 193163818.23 193163818.23 2. Increased in the Current Period 41423446.67 41423446.67 (1) Purchase 10389993.94 10389993.94 (2) Transfer of Fixed Assets\Intangible Assets 31033452.73 31033452.73 (3) Acquisition 3. Decreased in the Current Period 1823173.88 1823173.88 (1) Disposal (2) Transfer to Fixed Assets/Intangible Assets 1823173.88 1823173.88 (3) Other Transfer-out 4. Closing Balance 232764091.02 232764091.02 II. Accumulated Depreciation and Accumulated Amortization 1. Opening Balance 53883231.97 53883231.97 2. Increased in the Current Period 22683057.68 22683057.68 (1) Accrual or Amortization 9923171.62 9923171.62 (2) Transfer of Fixed Assets\Intangible Assets 12759886.06 12759886.06 (3) Acquisition 3. Decreased in the Current Period 1052109.41 1052109.41 (1) Disposal (2) Transfer to Fixed Assets/Intangible Assets 1052109.41 1052109.41 (3) Other Transfer-out 4. Closing Balance 75514180.24 75514180.24 III. Impairment Provision 1. Opening Balance 2. Increased in the Current Period 28496793.62 28496793.62 (1) Accrual 28496793.62 28496793.62 3. Decreased in the Current Period (1) Disposal (2) Other Transfer-Out 4. Closing Balance 28496793.62 28496793.62 IV. book value 1. Closing Balance on Book Value 128753117.16 128753117.16 2. Opening Balance on Book Value 139280586.26 139280586.26 The recoverable amount is determined as the net of fair value less costs of disposal.□Applicable □ Not Applicable 3192025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Unit: RMB Determination Basis for Recoverable Impairment of fair value Key determining Item Book Value Amount Amount and disposal Parameters key costs parameters Nanning Market prices Jiuzhou 79905000. Market 108401793.62 28496793.62 of comparable Market inquiry International 00 approach transactions Office Building 79905000. Total 108401793.62 28496793.62 00 The recoverable amount is determined as the present value of the expected future cash flows.□ Applicable □Not Applicable (2) Investment Properties Measured at Fair Value □ Applicable □Not Applicable (3) Investment Property With Certificate of Title Not Yet Completed Unit: RMB Reasons for Certificates of Title not Item Book Value Granted Donghe Xingcheng Commercial 10031052.01 Processing 16. Fixed Assets Unit: RMB Item Closing Balance Opening Balance Fixed Assets 6136201592.87 4973953628.05 Fixed asset disposal Total 6136201592.87 4973953628.05 (1) Fixed Assets Unit: RMB Housing and Machinery and Means of Electronic and Item Total Building Equipment Transport Other Equipment Ⅰ. Original Book Value: 1. Opening 4803607377.1 9 642845153.13 30163801.91 2363589952.65 7840206284.88Balance 2. Increased in the Current 1589922061.48 112685260.16 2975659.01 193063231.62 1898646212.27 Period (1) Purchase 6515027.76 81729507.95 2975659.01 190665489.99 281885684.71 3202025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (2) Transferred From 1581583859.8 4 30955752.21 2397741.63 1614937353.68Construction in Progress (3) Acquisition (4) Transfer of Investment 1823173.88 1823173.88 Properties 3. Decreased in the Current 89451432.14 28267294.23 2666694.19 496018924.94 616404345.50 Period (1) Disposal or 1567020.06 10852578.39 2574149.37 461613294.24 476607042.06 Scrapping (2) Transfer to Investment Real 31033452.73 31033452.73 Estate (3) Disposal of 56850959.35 17414715.84 92544.82 34405630.70 108763850.71 Subsidiaries 4. Currency Translation 339894.83 173363.34 350521.59 3069085.86 3932865.62 Difference 5. Closing 6304417901.3 6 727436482.40 30823288.32 2063703345.19 9126381017.27Balance II. Accumulated Depreciation 1. Opening 968032057.78 262293553.77 23251818.41 1612675226.87 2866252656.83 Balance 2. Increased in the Current 269124991.52 65223275.16 3247928.71 286413431.75 624009627.14 Period (1) Accrual 268072882.11 65223275.16 3247928.71 286413431.75 622957517.73 (2) Transfer of Investment 1052109.41 1052109.41 Properties 3. Decreased in the Current 16501535.50 9770719.74 2065363.44 474603752.26 502941370.94 Period (1) Disposal or 12018.11 8329589.89 2045215.62 454707488.83 465094312.45 Scrapping (2) Transfer to Investment Real 12759886.06 12759886.06 Estate (3) Disposal of 3729631.33 1441129.85 20147.82 19896263.43 25087172.43 Subsidiaries 4. Currency Translation 100460.42 173159.18 295402.52 2289489.25 2858511.37 Difference 5. Closing 1220755974.2 2 317919268.37 24729786.20 1426774395.61 2990179424.40Balance III. Impairment Provision 3212025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 5083661927.14 409517214.03 6093502.12 636928949.58 6136201592.87 Value 2. Opening Balance on Book 3835575319.41 380551599.36 6911983.50 750914725.78 4973953628.05 Value (2) Fixed assets Rent Out Under Operating Leases Unit: RMB Item Book Value at the End of the Period Buildings and constructions 940182329.88 Electronic and other equipment 19157569.79 (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 Wuzhou Building in Guangxi 35488477.74 estate certificates 17. Construction in Progress Unit: RMB Item Closing Balance Opening Balance Construction in Progress 7264951.14 1254554187.36 Total 7264951.14 1254554187.36 3222025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (1) Construction in Progress Unit: RMB Closing Balance Opening Balance Impair Item Impairment ment Book Balance Book Value Book Balance Book Value Provision Provis ion New project of Southwest R&D Center 322402380.64 322402380.64 of Dahua Co.Ltd.New projects of Southwestern China 386439622.10 386439622.10 Operation Center of Dahua Henan AIoT base of 168946600.69 168946600.69 Dahua Construction project of Dahua intelligent 341740284.37 341740284.37 products manufacturing base Others 7264951.14 7264951.14 35025299.56 35025299.56 Total 7264951.14 7264951.14 1254554187.36 1254554187.36 (2) Changes in Significant Construction in Progress Unit: RMB Capit Other Project alizati Accu Includin Incre Amount amou accumu on mulat g: ase of fixed nts lative rate ed capitali Openi amo assets decre Closi investm Proje of the capita zed Bud ng unt transfer ased ng ent as ct intere Capital Item Name lized interest get Balanc for red in in balan a Progr st in Source intere amount e this the curre ce percent ess the st in the perio current nt age of curre amou current d period perio the nt nt period d budget perio d New project of RM Southwest B R&D 395 32240 359 35830 100.0 Equity Center of milli 2380. 075 9953.7 98.20% 0% funds/rais73.0 ed funds Dahua Co. on 64 9 3 Ltd. 3232025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text New projects of RM Southwest B 399 ern China 462 38643 865 42642 100.63 100.0 Equity Operation milli 9622. 65.8 6187.9 % 0% Fund Center of on 10 7 7 Dahua Constructio n project of RM Dahua B 204 intelligent 600 34174 241 54598 99.19% 100.0 Equity products milli 0284. 290. 1575.3 0% Fund manufactur on 37 93 0 ing base 1050 280Total 135 1330758228 7.11429. 17717. 8900 (3) Impairment Test of Construction in Progress □ Applicable □Not Applicable 18. Right-of-use Assets (1) Right-of-use Assets Unit: RMB Buildings and Item Machinery and Equipment Total Constructions Ⅰ. Original Book Value 1. Opening Balance 515887254.07 8996601.81 524883855.88 2. Increased in the Current 196966140.91 196966140.91 Period (1) Leased during the Year 196966140.91 196966140.91 (2) Acquisition 3. Decreased in the Current 240699784.53 331243.07 241031027.60 Period (1) Expiration or Early Termination of Lease 229835034.99 229835034.99 Contracts (2) Disposal of Subsidiaries 10864749.54 10864749.54 3. Other decreases 331243.07 331243.07 4. Currency Translation 8893314.00 8893314.00 Difference 5. Closing Balance 481046924.45 8665358.74 489712283.19 II. Accumulated Depreciation 1. Opening Balance 289890128.13 2869449.89 292759578.02 2. Increased in the Current 138903063.13 922224.49 139825287.62 3242025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Period (1) Accrual 138903063.13 922224.49 139825287.62 (2) Acquisition 3. Decreased in the Current 218776489.98 218776489.98 Period (1) Expiration or Early Termination of Lease 210728461.46 210728461.46 Contracts (2) Disposal of Subsidiaries 8048028.52 8048028.52 4. Currency Translation 3502409.29 3502409.29 Difference 5. Closing Balance 213519110.57 3791674.38 217310784.95 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 267527813.88 4873684.36 272401498.24 Value 2. Opening Balance on 225997125.94 6127151.92 232124277.86 Book Value 19. Intangible Assets (1) Details of Intangible Assets Unit: RMB Land Use Non-patented Software Item Software Total Rights Technology Copyright Ⅰ. Original Book Value 1. Opening Balance 629977655.56 68560225.68 191930081.04 4000000.00 894467962.28 2. Increased in the Current 100179.19 3875305.20 16231227.45 20206711.84 Period (1) Purchase 100179.19 3875305.20 7873707.69 11849192.08 (2) Internal Research And Development (3) Acquisition (4) Construction in Progress 8357519.76 8357519.76 Transferred in (5) Transfer of Investment Properties 3252025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3. Decreased in the Current 240000.00 8850841.37 9090841.37 Period (1) Disposal 240000.00 2863498.91 3103498.91 (2) Transfer to Investment Real Estate (3) Disposal of Subsidiaries 5987342.46 5987342.46 4. Currency Translation 35490.00 58628.56 94118.56 Difference 5. Closing Balance 630113324.75 72195530.88 199369095.68 4000000.00 905677951.31 II. Cumulative Amortization 1. Opening Balance 84725147.08 62737857.37 164969519.24 4000000.00 316432523.69 2. Increased in the Current 14068771.81 1253236.53 22452576.49 37774584.83 Period (1) Accrual 14068771.81 1253236.53 22452576.49 37774584.83 (2) Transfer of Investment Properties 3. Decreased in the Current 89461.56 5059679.48 5149141.04 Period (1) Disposal 89461.56 2859652.76 2949114.32 (2) Transfer to Investment Real Estate (3) Disposal of Subsidiaries 2200026.72 2200026.72 4. Currency Translation 60604.13 60604.13 Difference 5. Closing Balance 98793918.89 63901632.34 182423020.38 4000000.00 349118571.61 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 531319405.86 8293898.5416946075.30556559379.70 2. Opening Balance on Book Value 545252508.48 5822368.3126960561.80578035438.59 3262025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (2) No Land Use Right Without the Certificate of Title at the End of the Period 20. Goodwill (1) Original Book Value of Goodwill Unit: RMB The invested Increased in the current period Decreased in the current period entity or Opening Generated Closingmatters which Balance formed from business Disposal Balance goodwill combination Dahua Technology 6615294.18 6615294.18 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 Opening Closing matters which Balance formed Accrued Disposal Balance goodwill Dahua Technology 0.00 0.00 Italy S.R.L.Total 0.00 0.00 (3) Information about the Asset Group Or Asset Group Combination Where the Goodwill Is Located Composition and basis of the asset Operational subsection Is it consistent with the Name group or its combination and basis previous year The asset group relating to the goodwill Recognition is based on generated for the acquisition of the whether the main cash Dahua Dahua Technology Italy S.R.L. that is inflow generated is Technology the long-term asset group including Yes independent of other Italy S.R.L. fixed assets and intangible assets asset groups or their formed for Dahua Technology Italy combinations.S.R.L. on December 31 2025. (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 3272025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Unit: RMB Determinati Key Key on basis of Number of Impairme parameters parameters key Recoverable years of the Item Book value nt of the of the parameters amount forecast amount forecast steady in the period period period steady period Revenue Revenue Predict growth rate growth rate cautiously of 7%-9% of 0% over as the Dahua over the 145317771. 196354990. the steady income will TechnologyI 0.00 2026–2030 forecast 61 99 period; not increase talyS.R.L. period; discount in the discount rate of steady rate of 15.60% period. 15.60% 145317771.196354990. Total 0.00 6199 (5) Completion of performance commitment and corresponding goodwill impairment situation There is a performance commitment when goodwill is formed and the reporting period or the previous reporting period falls within the performance commitment period.□ Applicable √ Not applicable 21. Long-term Deferred Expenses Unit: RMB Prepaid Opening Increase amount Other Amounts Item Expenses in This Closing Balance Balance for this period Decreased Period Improvement expenditure of fixed 45238803.0727161268.5232588249.21-1419844.3441231666.72 assets leased by operating lease Renovation Cost 54171602.35 6343104.78 23858382.09 22898.36 36633426.68 Total 99410405.42 33504373.30 56446631.30 -1396945.98 77865093.40 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 2804515864.11520366877.003025825450.60562296401.85 Impairment of Assets 3282025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Unrealized Profit from Internal 640351975.11 134358284.38 541607785.16 111639987.98 Transactions Deductible Losses 523267541.35 92650683.58 1920226766.23 291618935.89 Expected Liabilities 288239468.47 54998023.73 213777948.61 36535893.26 Employee Benefits 241829839.9139682411.41252223316.9141492918.94 Payable Costs from Tax Increase Due to 426348718.14 83239280.17 583649029.08 112966247.86 Absence of Invoice Changes in fair value 3733125.73559968.86 gains and losses Book-tax difference 166556488.5731294834.36144796421.8827085343.71 of lease liabilities Investments in non- 412737806.4261910670.96466573172.4869985975.87 monetary assets Others 130123763.46 22755216.95 113506566.35 18209927.86 Total 5633971465.54 1041256282.54 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 45047427.137643637.8352101542.998882673.02 by installments Changes in fair value 812175389.67121826308.45335149352.8050272402.92 gains and losses Book-tax difference of 161709026.5330386416.87139677335.2326194630.77 right-of-use assets Investments in non- 215410998.7832311649.82323116498.2048467474.73 monetary assets Others 26366901.59 6052869.32 12316682.73 1847502.41 Total 1260709743.70 198220882.29 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 139525091.34901731191.20135645521.631136746080.45 Assets Deferred Income Tax 139525091.3458695790.95135645521.6319162.22 Liabilities 3292025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (4) Deferred Income Tax Assets Or Liabilities Listed by Net Amount After Offset Unit: RMB Item Closing Balance Opening Balance Deductible temporary difference 800065765.51 601482814.06 Deductible Losses 2991708946.76 2023883256.99 Total 3791774712.27 2625366071.05 (5) Details of Unrecognized Deferred Income Tax Assets Unit: RMB Year Closing Balance Opening Balance Notes 2025213836146.31 2026344395503.51348424975.65 2027403418350.40498989378.85 2028382931671.61449525076.81 202993880949.56116634608.22 The year 2030 and beyond 1767082471.68 396473071.15 Total 2991708946.76 2023883256.99 23. Other Non-current Assets Unit: RMB Closing Balance Opening Balance Item Impairment Impairment Book balance Book value Book balance Book value provision provision Contract Acquisition 7301643.57 7301643.57 7585925.51 7585925.51 Costs 60266927.2 Contract Assets 5769879.03 54497048.17 83145926.80 5446542.16 77699384.64 0 Large- denomination 698974958698974958142031787614203178761 certificates of 1.88.88.72.72 deposit from banks Prepayments for purchase of 30118385.7 30118385.7637521356.4837521356.48 engineering 6 equipments Prepayments 14071551.0 for acquisition of 14071551.00 1791480.71 1791480.71 0 real estate Others 178913.33 178913.33 710168700709591712343332234514327776909 Total 5769879.03 5446542.16 2.74.71.22.06 3302025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 24. Assets whose Ownership or Rights to Use is Restricted Unit: RMB Book Value at the Opening Balance on Item Type of Restriction Restrictions End of the Period Book Value Guarantee Letter Security Deposit Monetary Fund 87133250.44 107576703.27 Restricted use and Other Restricted Funds Fixed Assets Rented out under Fixed Assets 959339899.67 787890801.32 Restricted use Operating Leases Notes Pledged notes used for issuing Receivable and banker's acceptance endorsed or 952005844.59 987102426.21 Restricted use Receivables discounted but not yet matured or Financing terminated and recognized Accounts 3528596.00 Factoring of Accounts Receivable Restricted use Receivable Total 2002007590.70 1882569930.80 25. Short-term Loans (1) Categories of Short-term Loan Unit: RMB Item Closing Balance Opening Balance Pledged loans 200000000.00 995000000.00 Factoring loans in the supply chain 3714311.58 finance Total 203714311.58 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) No unpaid short-term loans that have been overdue at the end of this period. 26. Trading Financial Liabilities Unit: RMB Item Closing Balance Opening Balance Trading Financial Liabilities 4268603.52 Among them: Derivative Financial Liabilities 1058039.73 Contingent consideration 3210563.79 Total 4268603.52 27. Notes Payable Unit: RMB Types Closing Balance Opening Balance Commercial acceptance bill 2158881943.09 2189843859.93 3312025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Banker's Acceptance 1500916808.79 1410130382.09 Total 3659798751.88 3599974242.02 28. Accounts Payable (1) Details of Accounts Payable Unit: RMB Item Closing Balance Opening Balance Payment for purchase of materials 4830006948.39 5514821691.83 Payment for engineering equipments 302655782.39 363155169.30 Total 5132662730.78 5877976861.13 (2) Significant Accounts Payable Aged Over 1 Year Or Overdue No significant accounts payable aged over 1 year or overdue. (3) Are there any overdue payments to SMEs that remain unpaid Is it a large enterprise □Yes □No Are there any overdue unpaid payments to SMEs □Yes □No there is no situation of a large enterprise unreasonably delaying payments to an SME. 29. Other Payables Unit: RMB Item Closing Balance Opening Balance Dividends PAYABLE 22951560.23 Other Payables 470148655.21 614061999.82 Total 470148655.21 637013560.05 (1) Dividends Payable Unit: RMB Item Closing Balance Opening Balance Equity Incentive Restricted Stock 22951560.23 Dividend Total 22951560.23 3322025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (2) Other Payables 1) Other Payables Listed by Nature Of Funds Unit: RMB Item Closing Balance Opening Balance Temporarily borrowed and advance 326933622.05316774319.18 payments Deposits 127017737.92 130208683.89 Others 16197295.24 22383683.39 Restricted share repurchase 144695313.36 obligations Total 470148655.21 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 486271439.35 367888058.92 Pre-payments from construction 629106483.73512577027.01 projects Sales of points 27200670.29 29975336.23 Service expense collected in 99108.74371763926.59 advance Total 1142677702.11 1282204348.75 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 1801465071.647445019772.677256584717.771989900126.54 Remuneration II. Post-Employment Benefits – 7193487.63561301834.29552270171.3516225150.57 Establishment of Contribution Plan III. Dismissal Welfare 2394649.65 76133743.03 72224771.87 6303620.81 Total 1811053208.92 8082455349.99 7881079660.99 2012428897.92 3332025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (2) Details of Short-term Remuneration Unit: RMB Opening Increased in the Decreased in the Item Closing Balance Balance current period current period 1. Wages or Salaries 1504317660.9 Bonuses Allowances and 6468224971.00 6274818730.38 1697723901.56 Subsidies 2. Staff Welfare 121629828.76 121629828.76 3. Social Insurance 2268494.56308444987.60307602295.543111186.62 Contributions Including: medical 2144762.22292996636.63292635137.592506261.26 insurance Work injury insurance 111462.7213909631.8313490796.65530297.90 premium Maternity insurance fee 12269.62 1538719.14 1476361.30 74627.46 4. Housing Funds 1681808.82 433571996.23 435098708.99 155096.06 5. Labor Union and 293197107.32113147989.08117435154.10288909942.30 Education Funds 1801465071.6 Total 7445019772.67 7256584717.77 1989900126.54 4 (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 6511573.90537676009.59529179034.9915008548.50 Insurance 2. Unemployment 681913.7323625824.7023091136.361216602.07 Insurance Total 7193487.63 561301834.29 552270171.35 16225150.57 32. Taxes and Fees Payable Unit: RMB Item Closing Balance Opening Balance VAT 209342805.30 196774063.10 Enterprise Income Tax 86080351.68 108441794.06 Personal income tax 29727426.88 37096806.99 Urban Maintenance and Construction 13112366.7012215258.91 Tax Education surcharges (including local 9383151.618733186.86 education surcharges) Stamp duty 7563794.73 6307924.45 Property tax 33767374.83 30548302.26 Others 7850645.65 5742985.00 Total 396827917.38 405860321.63 3342025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 33. Non-current Liabilities Due Within One Year Unit: RMB Item Closing Balance Opening Balance Lease liabilities due within 1 year 103124582.64 117227812.08 Estimated liability due within one 143732222.66 year Total 246856805.30 117227812.08 34. Other Current Liabilities Unit: RMB Item Closing Balance Opening Balance To-be-transferred sales taxes in 25278160.3328016863.95 installments To-be-transferred sales taxes of 113045980.3190175362.12 contract liabilities Notes not derecognised 29430244.47 41959304.16 Total 167754385.11 160151530.23 35. Lease Liabilities Unit: RMB Item Closing Balance Opening Balance Lease payments 284143141.96 245019254.27 Less: Unrecognized financing costs 15619385.67 13477634.78 Less: Lease liabilities due within 1 103124582.64 117227812.08 year Total 165399173.65 114313807.41 36. Estimated Liabilities Unit: RMB Item Closing Balance Opening Balance Causes Pending litigation 75104167.89 64828324.97 Pending litigation Others 2264406.23 2674923.66 Loss-making contract Expected after-sales 128047750.56 180635396.82 After-sales maintenance maintenance cost Expected return amount 20056045.79 Expected sales return after the period Total 205416324.68 268194691.24 3352025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 37. Deferred Income Unit: RMB Increased in the Decreased in the Item Opening Balance Closing Balance Causes current period current period Received Government government 181225246.295275166.0016424988.60170075423.69 subsidies subsidies related to assets Received Government government 4955766.701371100.006326866.70 subsidies subsidies related to income Total 186181012.99 6646266.00 22751855.30 170075423.69 -- 38. Other Non-current Liabilities Unit: RMB Item Closing Balance Opening Balance To-be-transferred sales taxes in 50758345.6588891691.43 installments Others 1269404.65 13372397.59 Total 52027750.30 102264089.02 39. Share Capital Unit: RMB Increased or decreased amount in this period (+/-) Shares Opening Bonu converted Shares s Closing BalanceBalance from Others Subtotal newly issued share capital s reserves Total 3295629733.0 11670801.0 - - 3286755574.0 shares 0 0 20544960.00 8874159.00 0 Other notes: (1) According to the resolution of the 11th meeting of the 8th Board of Directors of the Company and the amended Articles of Association and authorized by the Company's 2024 Annual General Meeting of Shareholders the Company applied to repurchase and cancel 20544960 restricted RMB ordinary shares (A shares) that had been granted to 3837 equity incentive recipients but not yet unlocked reducing the registered capital by RMB 20544960.00. The registered capital after the change was 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) Pursuant to the resolution approved at the 44th meeting of the seventh Board of Directors on June 16 2023 the Company approved the "Proposal on the 2022 Stock Option and Restricted Share Incentive Plan (Revised Draft) and 3362025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Its Summary" and the "Proposal on the Implementation Assessment Management Measures of the 2022 Stock Option and Restricted Share Incentive Plan (Revised Draft)." The exercise conditions for the second exercise period of the Company's 2022 stock option and restricted share incentive plan were met. Stock options were granted to 3798 incentive recipients with 20184927 exercisable options. In 2025 options for a total of 11670801 shares were exercised increasing registered capital by RMB 11670801.00. The Company completed the industrial and commercial registration change in December 2025. 40. Capital Reserve Unit: RMB Increased in the Decreased in the Item Opening Balance Closing Balance current period current period Capital premium (capital share 6929139615.49 188543021.58 172659385.17 6945023251.90 premium) Other capital 227627620.37108017646.3547479009.00288166257.72 reserves Total 7156767235.86 296560667.93 220138394.17 7233189509.62 Other notes including increases or decreases in this period and their reasons: (1) 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 reserves (stock premium) by RMB 147101913.60. (2) The exercise conditions for the second exercise period of the Company's 2022 stock option and restricted share incentive plan were met. In 2025 employees voluntarily exercised options for a total of 11670801 shares increasing capital reserves (share premium) by RMB 165184108.20. (3) The total capital reserves (stock premium) decreased by RMB 18988744.81 in this period due to the purchase and disposal of minority shareholders' equity in subsidiaries the reduction of capital by minority shareholders of subsidiaries and the increase of capital by minority shareholders of subsidiaries. (4) The Company recognized employee service amounts of RMB 98607867.44 in this period through share-based payment increasing capital reserves (other capital reserves) by RMB 98607867.44. The portion of equity-settled share-based payment attributable to minority shareholders was RMB 30644238.72 which decreased capital reserves (other capital reserves) by RMB 24120095.62 and decreased capital reserves (share premium) by RMB 6524143.10. (5) 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 reserves (other capital reserves) to capital reserves (stock premium). (6) During this period under the equity method the Company's share of changes in other owners' equity of associates increased capital reserves (other capital reserves) by RMB 9182418.87. (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 reserves (other capital reserves) in the amount of RMB 227360.04. 3372025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (8) Transaction costs of RMB 44583.66 related to the Company's share repurchases and employee option exercises during the period decreasing capital reserves (stock premium) by RMB 44583.66. 41. Treasury Share Unit: RMB Increased in the Decreased in the Item Opening Balance Closing Balance current period current period Restricted shares 144695313.36 32361151.92 177056465.28 Share repurchase 419959211.27 289120707.00 709079918.27 Total 564654524.63 321481858.92 177056465.28 709079918.27 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) The cash dividends distributed during the period to restricted share shareholders reduced treasury stock by RMB 9409591.68. (3) During the reporting period the Company repurchased granted but not yet unlocked restricted shares. The escrowed cash dividends corresponding to the portion not yet unlocked were recovered increasing treasury stock by RMB 32361151.92. (4) The company repurchased 16361300 shares during this period with a total repurchase cost of RMB 289151183.25 (including transaction fees of RMB 30476.25) increasing treasury stock by RMB 289120707.00. 42. Other Comprehensive Incomes Unit: RMB Amount Occurred in the Current Period Less: Recorde d into Less: other recorded compreh into other ensive comprehen Attributabl incomes Opening sive Less: Attributabl e to theBefore tax in ClosingItem Balance incomes in Income e to the minoritybalance in previous Balance previous Tax Company sharehold this period period period and Expense after tax ers after and transferred tax transferr to P/L in ed to current retained period income in current period Other 1043584 1856418 - 1898174 157479.3 1233402 Comprehe 60.57 8.70 575032.31 1.65 6 02.22 nsive 3382025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Income That Will Be Reclassifi ed into P/L Including: Foreign currency 10435841856418-1898174157479.31233402 financial 60.578.70575032.311.65602.22 statement translation difference Total other comprehe 1043584 1856418 - 1898174 157479.3 1233402 nsive 60.57 8.70 575032.31 1.65 6 02.22 income 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 3857923611.862905728684.03 company's owner in current period Less: withdrawal for statutory surplus 580371.50 reserve Dividends payable on common stock 2103295186.38 1853061050.97 Add: Common stock dividends corresponding to repurchase and 32361151.92 1991951.67 cancellation of restricted stocks Undistributed Profit at the End of the 26175119977.1824388130399.78 Period 3392025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 45. Operating Revenue and Operating Cost (1) Operating Revenue and Operating Cost Unit: RMB Amount Occurred in the Current Period Amount Occurred in the Previous Period Item Income Cost Income Cost Main Business 32285785767.66 19131475203.02 31733745338.87 19369796361.49 Other businesses 457997576.14 311080619.75 447186488.30 311890243.02 Total 32743783343.80 19442555822.77 32180931827.17 19681686604.51 During the reporting period the lowest of audited total profit net profit and net profit after deducting non-recurring gains or losses is negative.□ Yes □No (2) Information Related to Operating Revenue and Operating Cost (by product) Unit: RMB Amount Occurred in the Current Period Item Income Cost AIoT Products and Solutions 26408997437.86 15201037475.03 Including: Software Business 1832591919.52 635354985.52 Innovative Businesses 5670492055.81 3692117185.29 Others 664293850.13 549401162.45 Total 32743783343.80 19442555822.77 (3) Information Related to Operating Revenue and Operating Cost (by Region) Unit: RMB Amount Occurred in the Current Period Item Income Cost Domestic 16752032126.82 10894153685.79 Overseas 15991751216.98 8548402136.98 Total 32743783343.80 19442555822.77 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. 3402025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text The Company identifies part of the business as a performance obligation to be fulfilled within a certain period of time according to the nature of the business. The Company shall recognize the income according to the performance progress within that period of time except where the performance progress cannot be reasonably recognized. The Company employs the output method or input method to determine the performance progress. If the performance progress cannot be reasonably recognized and the costs incurred are expected to be compensated the income shall be recognized according to the amount of costs incurred until the performance progress can be reasonably recognized. 46. Taxes and Surcharges Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Urban Maintenance and Construction 95393937.0080739976.26 Tax Education surcharges (including local 68168759.7857688592.35 education surcharges) Property tax 58120576.06 48344533.53 Land usage tax 8039183.53 8011191.78 Vehicle and vessel use tax 41944.87 41456.25 Stamp duty 27440538.09 21492876.32 Others 4128953.44 4998144.98 Total 261333892.77 221316771.47 47. Administrative Expenses Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Labor cost 820036881.23 695667184.18 Depreciation cost and asset 153112194.48143209091.42 amortization Administrative expenses 86421117.13 92194684.99 Consumables and service fees 76906717.06 72024189.22 Knowledge resource fee 106891256.31 82606146.49 Traveling expense 12356515.76 11840135.09 Business entertainment 15240521.97 15791767.91 Others 24567898.44 28074987.33 Total 1295533102.38 1141408186.63 48. Sales Expenses Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Labor cost 3377687100.95 3201553137.07 After-sales service expense 248937243.54 317453694.36 Transportation and vehicle expenses 52840128.71 52881241.84 3412025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Marketing expense 404022824.72 527292675.53 Administrative expenses 178343866.37 172778528.19 Traveling expense 293597637.20 295323610.34 Business entertainment 212667291.67 250886259.63 Taxation and insurance expense 45769878.59 51716229.07 Communication expense 28788165.26 24597267.10 Knowledge resource fee 49349724.75 49818336.36 Depreciation cost and asset 173737235.53173793863.72 amortization Others 47374110.14 48638494.74 Total 5113115207.43 5166733337.95 49. R&D Expenses Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Labor cost 3747981113.52 3679962388.01 Research consumables and service 300521482.59 259199018.43 fees Depreciation cost and asset 169628732.90155396412.58 amortization Traveling expense 51970294.14 57484535.70 Administrative expenses 43978636.37 42126496.50 Others 21936723.24 19086714.51 Total 4336016982.76 4213255565.73 50. Financial Expenses Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Interest expense -21982366.93 45574086.20 Including: Interest expenses on lease liability 9606058.59 12307800.57 Less: interest income 281626532.36 420512502.16 Foreign exchange gains and losses -71844241.18 -36740087.01 Others 19078399.39 21787522.36 Total -356374741.08 -389890980.61 51. Other Incomes Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Sources of Other Incomes Period Period Government subsidies 1114243722.83 987842683.73 Input tax credits 4817640.67 8314696.17 Handling fee for withholding tax of 6662878.146894163.10 personal income Others 2835407.25 4059150.00 Total 1128559648.89 1007110693.00 3422025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 -118077090.83 -206254198.57 Trading Financial Liabilities 890014.68 -1194709.59 Other Non-current Financial Assets 573428414.43 164033503.88 Total 456241338.28 -43415404.28 53. Investment Income Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Long-term equity investment income 31405872.4314958434.46 measured by equity method Investment income from disposal of 501470729.99106248112.69 long-term equity investment Investment income from trading financial assets during the holding 2667979.29 1243275.00 period Investment income from disposal of 131402165.72335321351.24 trading financial assets Gain on debt restructuring -32512136.39 -394660.00 Investment income of other non- current financial assets during the -49372.45 6235327.82 holding period Investment income from government 1743563.912275761.53 bond reverse repurchase Profits from recognition termination of -1601478.30-1068904.15 financial assets Total 634527324.20 464818698.59 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 -510447.50 2507175.29 Bad debt losses of accounts -335661561.60-476978994.38 receivable Bad debt losses of other receivables -12523787.67 -16657632.76 Bad debt losses of long-term 4177618.943144266.49 receivables Total -344518177.83 -487985185.36 3432025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 -126052747.63 -111546305.16 Performance Cost II. Impairment Losses on Long-Term -19886629.20 Equity Investments III. Impairment Losses on Investment -28496793.62 Property IV. Impairment Losses on Contract 4265477.183786866.34 Assets Total -170170693.27 -107759438.82 56. Asset Disposal Income Unit: RMB Sources of the Asset Disposal Amount Occurred in the Current Amount Occurred in the Previous Income Period Period Income from disposal of fixed assets -494918.89 750706.46 Income from the disposal of right-of- 1414202.5154978.20 use assets Total 919283.62 805684.66 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 Government subsidies 1853252.75 1853252.75 Gains and losses of non- 3027558.991909799.813027558.99 current asset retirement Others 15217986.45 17119047.45 15217986.45 Total 20098798.19 19028847.26 20098798.19 58. Non-operating Expenditures Unit: RMB Amount recorded into non- Amount Occurred in the Amount Occurred in the Item recurring profit and loss in Current Period Previous Period current period Donations 2217531.25 602799.95 2217531.25 Water conservancy fund 809917.27 643752.02 Gains and losses of non- 6096355.994615137.706096355.99 current asset retirement 3442025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Others 5542980.40 3694992.23 5542980.40 Total 14666784.91 9556681.90 13856867.64 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 201836414.99 -63939616.18 Deferred income tax expense 278499708.29 134236898.79 Total 480336123.28 70297282.61 (2) Adjustment Process of Accounting Profit and Income Tax Expenses Unit: RMB Item Amount Occurred in the Current Period Total Profit 4362593813.94 Income tax expense calculated at statutory/applicable tax 654389072.09 rate Impact by applying different tax rates to subsidiaries 39726387.87 Impact of income tax before adjustment in this period 88393652.43 Impact of Non-taxable Revenue -4991178.82 Impact of the non-deductible costs expenses and losses 15091582.10 Impact of Deductible Losses from Unrecognized Deferred -7404715.65 Income Tax Assets in the Previous Period Impact of Deductible Temporary Difference or Deductible Losses from Unrecognized Deferred Income Tax Assets 232093685.93 in the Current Period Impact of additional deduction of the research and -539908408.28 development expenses Others 2946045.61 Income Tax Expense 480336123.28 60. Other Comprehensive Incomes See Note 42 for details. 3452025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 138073964.66 311169510.84 Government subsidies 1137712253.53 1007312023.68 Tender and performance guarantee 105242632.4138622713.36 deposit Incomings and outgoings and 41093002.0032317680.72 advances House rent 90921676.84 84103431.19 Others 46427472.08 20250244.29 Total 1559471001.52 1493775604.08 Other cash payments relating to operating activities Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Cash paid for expenses 2222348274.35 2385562005.78 Tender and performance guarantee 112949426.0183206276.39 deposit Incomings and outgoings and 6997092.1038804513.85 advances Others 5449329.06 2650271.26 Total 2347744121.52 2510223067.28 (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 8503556.4722337798.22 exchange contracts Recovered frozen funds relating to 10407241.34 the investment Net cash paid for acquisition of 1900504.147763130.61 subsidiaries Receipts of loans from non-financial 4683641.32 institutions Total 10404060.61 45191811.49 3462025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Significant cash receipts relating to investing activities Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Maturity of government bond reverse 13493842007.5414884041418.30 repurchase investments Total 13493842007.54 14884041418.30 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 12033035.001451036.60 contracts Paid frozen funds relating to the 5167105.34 investment Total 12033035.00 6618141.94 Significant cash payments related to investing activities Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Purchase of large-denomination 3116534763.074330850703.38 certificates of deposit Investment income from government 12979996428.0315154408876.40 bond reverse repurchase Total 16096531191.10 19485259579.78 (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 156926608.41 158146419.17 Cash paid for purchasing minority 6061549.3540436077.68 equity Equity repurchase cash paid 456798056.85 17418988.80 Cash paid for capital reduction of 25750435.51 subsidiaries Others 1015682.78 2620.98 Total 646552332.90 216004106.63 Changes in liabilities arising from financing activities □Applicable □ Not Applicable 3472025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Unit: RMB Increased in the current period Decreased in the current period Opening Closing Item Balance Changes in Non-cash Changes in Non-cash Balance cash changes cash changes Short-term 99500000 1695950000 203714311.5 904664311.58 Loan 0.00 .00 8 Dividends 22951560. 2093885594 2093885594 22951560.23 PAYABLE 23 .70 .70 Lease 11431380 186503679.4 103124582.6 165399173.6 32293730.56 Liabilities 7.41 4 4 5 Non-current Liabilities Due 11722781 246856805.3 117227812.0 246856805.3 within One 2.08 0 8 0 Year Other payables (restricted 14469531 167646873.6 22951560.24 share 3.36 0 repurchase obligations) 13941884904664311.5825501976394107004010126076142.8615970290.5 Total 93.08.68.9473 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 operational activity cash flow Net Profit 3882257690.66 2919172272.03 Add: provision for impairment of 514688871.10595744624.18 assets Depreciation of fixed assets oil and gas assets productive biological 632880689.35 611795984.29 assets Depreciation of Right-of-use Assets 139825287.62 144045931.05 Amortization of Intangible Assets 37774584.83 39185300.46 Long-term deferred expense 56446631.3066984132.00 amortization Losses on disposal of fixed assets intangible assets and other long-term -919283.62 -805684.66 assets (mark "-" for incomes) Losses on scrapping of fixed assets 3068797.002705337.89 (mark "-" for incomes) Losses on fair value changes (mark -456241338.2843415404.28 "-" for incomes) 3482025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Financial expenses (mark "-" for -54252488.118833999.19 incomes) Losses on investment (mark "-" for -668640938.89-466282262.74 incomes) Decrease on deferred income tax 219823079.56166676397.92 assets (mark "-" for increases) Increase on deferred income tax 58676628.73-31911987.74 liabilities (mark "-" for decreases) Decrease on inventories (mark "-" for -1311828270.13-24264745.21 increases) Decrease on operational receivables 600352082.44-889965851.98 (mark "-" for increases) Increase on operational payables 155050914.24-507711956.51 (mark "-" for decreases) Others 98835227.48 32620714.85 Net cash flow generated by operating 3907798165.282710237609.30 activities 2. Major investing and financing activities that do not involve cash receipts and payments 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 8553198661.72 11061530816.28 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 -2508332154.56-4819128778.67 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 645149638.00 in the current period Among them: Hangzhou Huacheng Network Technology Co. Ltd. and 645149638.00 its controlled subsidiaries 3492025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Less: Cash and cash equivalents held by subsidiaries on 396584508.31 the day of loss of control Among them: Hangzhou Huacheng Network Technology Co. Ltd. and 396584508.31 its controlled subsidiaries Add: Cash or cash equivalents received from disposal of 25360420.43 subsidiaries in previous periods in this period Among them: Lorex corporation Lorex Technology UK Limited Lorex 11700743.16 Technology Inc.Dahua Technology USA Inc. 13659677.27 Net cash paid for disposal of subsidiaries 273925550.12 (3) Composition of Cash and Cash Equivalents Unit: RMB Item Closing Balance Opening Balance Ⅰ. Cash 8553198661.72 11061530816.28 Including: cash on hand 2726.44 2584.78 Bank deposit for payment at any time 8525976684.96 10902292934.60 Other monetary funds available for 27219250.32159235296.90 payment at any time II. Balance of Cash and Cash 8553198661.7211061530816.28 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 Unexpired bank deposit Bank Balance 15071008.59 12695904.28 interest is shown in monetary funds Frozen funds restricted Bank Balance 6805872.95 31940849.28 use Performance guarantee Other Cash and Bank 80327377.49 75635853.99 security deposit usage Balances restricted Total 102204259.03 120272607.55 3502025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 Monetary Fund Including: USD 346220553.33 7.0288 2433515025.25 EUR 81100252.66 8.2355 667901130.78 HKD 142159670.54 0.9032 128401454.67 INR 1208529778.43 0.0783 94625303.87 AED 48038028.40 1.9071 91612843.58 GBP 7006421.72 9.4346 66102786.36 Total amount of other 374935294.56 currencies Accounts Receivable Including: USD 476023345.02 7.0288 3345872887.48 EUR 117528557.93 8.2355 967906438.83 HKD 5779179.92 0.9032 5219870.77 AED 225230618.41 1.9071 429535060.06 PLN 79427435.25 1.9497 154862847.60 INR 1829644845.71 0.0783 143257288.80 Total amount of other 653366318.06 currencies Long-term Loan Including: USD EUR HKD Accounts Payable Including: USD 124143480.86 7.0288 872579698.27 EUR 2342335.60 8.2355 19290304.83 Indonesian rupiah 15237976471.24 0.0004 6360393.56 INR 62406588.46 0.0783 4886302.76 HKD 3538592.47 0.9032 3196127.42 AED 1615858.32 1.9071 3081587.24 Total amount of other 20463089.09 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 and PIXFRA (HONG KONG) CO.LIMITED are an extension of the Company's operating activities and constitute a component of the enterprise's 3512025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text business operations with RMB as the functional currency. HuaRay Singapore primarily settles transactions with counterparties in USD. To more objectively and fairly reflect the relevant financial position and operating results and taking into account HuaRay Singapore's actual operating conditions and future development plans the functional currency was 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 Item Amount of This Period Amount of Previous Period Interest expenses on lease liabilities 9606058.59 12307800.57 Simplified rental expenses for short-term leases or low-value asset leases included in the cost of related 72793593.44 73151916.01 assets or current profit or loss Total cash outflows relating to leases 229720201.85 231298335.18 (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 107977482.91 Equipment leasing 47292600.63 Total 155270083.54 As the lessor in financial leases □ Applicable □Not Applicable Undiscounted lease receipts for each of the next five years □ Applicable □Not Applicable (3) Recognition of Profits and Losses On Sales Under Finance Leases as A Manufacturer Or Distributor □ Applicable □Not Applicable 3522025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text VIII. R&D Expenditures Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Labor cost 3747981113.52 3679962388.01 Research consumables and service 300521482.59 259199018.43 fees Depreciation cost and asset 169628732.90155396412.58 amortization Traveling expense 51970294.14 57484535.70 Administrative expenses 43978636.37 42126496.50 Others 21936723.24 19086714.51 Total 4336016982.76 4213255565.73 Including: Expenses for R&D 4336016982.764213255565.73 expenditures IX. Changes in the Scope of Consolidation 1. There were no business combinations not under common control during the current period. 2. There were no business combinations under common control during the current period. 3. No reverse purchases during the period 4. Disposal of Subsidiaries Are there any transactions or events that lose control of subsidiaries in the current period □Yes □No Unit: RMB The The The Deter The differe book fair minati amou nce value value on nt of betwe of the of Gain metho other remai remai Propo Basis en the The or d and compr Dispo Dispo dispos ning ningrtion for propor loss main ehens sal sal equity equity of deter al tion of from assu ive price metho Time price at the at theName dispos minin remai re- mptio incom at d at point consol consol of als at g the and ning meas ns of e time time of loss the idated idatedSubsi time time equity ureme the relate point point of share financi financidiarie point point on the nt of fair d to of loss of loss contro al al s of loss of loss of the day residu value equity of of l net state stateof of contro al of invest contro contro assets ment mentcontro contro l is equity remai ments l l level level l l of the lost at fair ning in subsid on the on the value equity subsid iary day of day of at the iary enjoy loss of loss of consol comp ed at contro contro idated anies the l l financi and 3532025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text consol al transf idated state erred financi ment to al level invest state on the ment ment day of profit level loss of or corres contro loss pondi l or ng to retain the ed dispos earnin al of gs invest ment Signe Hangz d the hou equity Huach transf eng er Netwo agree rk ment 7168 Equity June 4851 - Techn 32.73 and 3293 transf 20 2062 0.00% 0.00 0.00 0.00 5750 ology 21% compl 2.00 er 2025 3.52 32.31 Co. eted Ltd. the and proper its ty subsid rights iaries delive ry 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 5. Changes in the Scope of Consolidation for Other Reasons Explanations on the changes in the scope of consolidation caused by other reasons (for example newly established subsidiaries subsidiaries clearing etc.) and relevant information: (1) During the reporting period the Company established four new domestic and overseas subsidiaries through direct investment: Qingdao Dahua Ruihai New Energy Operation Co. Ltd. PIXFRA (HONG KONG) CO. LIMITED Wisualarm Technology (HK) Limited and DaHua Opera. All four entities were included in the scope of consolidation for the reporting period. (2) 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. 3542025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text X. Equity in Other Entities 1. Equity in Subsidiaries (1) Composition of the Enterprise Group Name of Registered Main Place Registered Business Shareholding Ratio Acquisiti Subsidiaries Capital of Business Address Nature Direct Indirect onMethod Dahua RMB 500 Binjiang Binjiang ElectronicsSystem District District and 100.00% Establish Engineering million Hangzhou Hangzhou information ment Dahua Vision RMB Binjiang Binjiang Electronics Technology 1306.81 District District and 100.00% Establish million Hangzhou Hangzhou information ment Dahua RMB 100 Binjiang Binjiang ElectronicsSecurity million District District and 100.00% Establish Network Hangzhou Hangzhou information ment RMB 10 Binjiang Binjiang ElectronicsDahua Ju'an million District District and 51.00% Establish Hangzhou Hangzhou information ment Guangxi Dahua RMB 66.80 Youjiang Youjiang Electronics million District District and 100.00% Establish Information Baise Baise information ment Guangxi RMB 20 Qingxiu Qingxiu Establish Yunlian million District District Service 100.00%Nanning Nanning ment Hangzhou RMB 10 Binjiang Binjiang ElectronicsDistrict District and 78.00% EstablishXiaohua million Hangzhou Hangzhou information ment RMB Fuyang Fuyang Electronics Dahua Zhilian 1885.80 District District and 100.00% Establish million Hangzhou Hangzhou information ment Investment Dahua investment RMB 300 Fuyang Fuyang & million District District investment 100.00% Establish management Hangzhou Hangzhou manageme ment nt Guangxi RMB Youjiang Youjiang Electronics Zhicheng 109.5429 District District and 65.00% Establish million Baise Baise information ment Sci-tech RMB Binjiang Binjiang popularizatiHuaRay 78.264756 District District on and 32.58% EstablishTechnology million Hangzhou Hangzhou application (Note) mentservices industry Fuyang RMB 10 Fuyang Fuyang Electronics Establish Hua'ao million District District and 51.00%Hangzhou Hangzhou information ment Huafei RMB 50 Binjiang Binjiang Electronics Intelligent million District District and 100.00% Establish Hangzhou Hangzhou information ment Guizhou RMB 22.5 Guanshanhu Guanshanhu Electronics Huayi million District District and 100.00% Establish Guiyang Guiyang information ment Guangxi RMB 35.80 Wuzhou Wuzhou Electronics Establish Huacheng million Guangxi Guangxi and 90.00%information ment Meitan Dahua RMB 10 Zunyi Zunyi Electronics Technology million Guizhou Guizhou and 100.00% Establish information ment 3552025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text New District New District Inner RMB 20 Bai County Bai County ElectronicsMongolia Chahar Chahar and 95.00% Establish Zhimeng million Right Wing Right Wing information ment Back Banner Back Banner RMB 36 Hexi District Hexi District ElectronicsTianjin Dahua million Tianjin Tianjin and 100.00% Establish information ment Shuangpai Shuangpai Dahua RMB 39.48 County County Electronics Establish Zhilong million Yongzhou Yongzhou and 90.00% City City information ment Fuyang Fuyang District District Vision RMB 10 Hangzhou Hangzhou Electronics Establish Technology million City City and 100.00% ment Zhejiang Zhejiang information Province Province Fuyang Fuyang District District Huaxiao RMB 70 Hangzhou Hangzhou Electronics Establish Technology million City City and 51.00% ment Zhejiang Zhejiang information Province Province RMB Xi'an City Xi'an City Electronics Xi'an Dahua 989.60 Shaanxi Shaanxi and 100.00% Establish million Province Province information ment RMB 25.5 Wuxi City Wuxi City ElectronicsHuaruipin million Jiangsu Jiangsu and 100.00% Establish Province Province information ment Beijing RMB 10 Fengtai Fengtai Electronics Huayue million District District and 100.00% Establish Beijing Beijing information ment Shanghai RMB 1 Putuo Putuo ElectronicsDistrict District and 100.00% EstablishHuashang million Shanghai Shanghai information ment Wucheng Wucheng RMB 10 District District ElectronicsDahua Jinzhi Jinhua City Jinhua City and 100.00% Establishmillion Zhejiang Zhejiang information ment Province Province Zhoushan Zhoushan Zhoushan RMB 100 City City Electronics Establish Operation million Zhejiang Zhejiang and 62.40% ment Province Province information Liuzhou City Liuzhou City Guangxi Dahua RMB 100 Guangxi Guangxi Electronics Zhuang Zhuang and 100.00% Establish Technology million Autonomous Autonomous information ment Region Region Binjiang Binjiang Electronics Huayixin RMB 80million District District and 62.60% Establish Hangzhou Hangzhou information ment Binjiang Binjiang Hirige RMB 156 District District Automotive 49.04% Establishmillion Hangzhou Hangzhou Electronics (Note) ment Chengdu RMB 600 Longquanyi Longquanyi Electronics Zhilian million District District and 100.00% Establish Chengdu Chengdu information ment Chengdu RMB Longquanyi Longquanyi Electronics Zhian 554.70 District District and 100.00% Establish million Chengdu Chengdu information ment Chengdu RMB 50 Longquanyi Longquanyi Electronics Establish Zhishu million District District and 100.00% ment 3562025 Annual Report of Zhejiang Dahua Technology Co. 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Full Text Chengdu Chengdu information Chengdu RMB 15 Longquanyi Longquanyi Electronics Zhichuang million District District and 100.00% Establish Chengdu Chengdu information ment Chengdu RMB 50 Dayi County Dayi County ElectronicsSmart and 90.00% Establish Network million Chengdu Chengdu information ment Huakong RMB 50 Wuyi County Wuyi County Electronics Establish Software million Jinhua City Jinhua City and 100.00%information ment RMB 30 Zhengzhou Zhengzhou ElectronicsHenan Dahua million Henan Henan and 100.00% Establish information ment Huajian RMB 50 Binjiang Binjiang Electronics Technology million District District and 45.00%(No Establish Hangzhou Hangzhou information te) ment Zhengzhou RMB 30 Zhengzhou Zhengzhou Electronics Establish Dahua Zhian million Henan Henan and 100.00%information ment Dahua RMB 1 Electronics International million Singapore Singapore and 100.00% Establish information ment Electronics Anhui Zhilian RMB 30million Hefei Anhui Hefei Anhui and 100.00% Establish information ment Electronics Anhui Zhishu RMB 30million Hefei Anhui Hefei Anhui and 100.00% Establish information ment Changsha RMB 100 Changsha Changsha Electronicsand 100.00% EstablishDahua million Hunan Hunan information ment Tianjin RMB 30 Hexi District Hexi District Electronics Establish Huajian million Tianjin Tianjin and 100.00%information ment Zhejiang RMB Xiaoshan Xiaoshan Electronics442.14044 District District and 75.11% EstablishPixfra 8 million Hangzhou Hangzhou information ment Yiwu City Yiwu City Electronics Yiwu Huaxi RMB 10 Establishmillion Zhejiang Zhejiang and 100.00%Province Province information ment Dahua RMB 100 Xiaoshan Xiaoshan Electronics Operation million District District and 100.00% Establish Hangzhou Hangzhou information ment Nanyang RMB 10 Nanyang Nanyang Electronics Intelligent million City Henan City Henan and 100.00% Establish Province Province information ment Yibin City Yibin City Electronics Yibin Huahui RMB 20million Sichuan Sichuan and 100.00% Establish Province Province information ment Mianyang RMB 10 Chengdu Chengdu Electronics Huacheng million City Sichuan City Sichuan and 100.00% Establish Province Province information ment Luoyang RMB 10 Luoyang Luoyang Electronics Zhiyu million City Henan City Henan and 100.00% Establish Province Province information ment Huaqi RMB 100 Binjiang Binjiang Electronics Establish Intelligence million District District and 100.00%Hangzhou Hangzhou information ment Chongzhou Chongzhou Chengdu RMB 20 City City Electronics Establish Information million Chengdu Chengdu and 100.00% ment City City information HJ RMB 20 Binjiang Binjiang Electronics Business Technology million District District and 100.00% combinat 3572025 Annual Report of Zhejiang Dahua Technology Co. 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Full Text Hangzhou Hangzhou information ion not under common control Shuhang RMB 10 Xiaoshan Xiaoshan Electronics Establish Intelligent million District District and 100.00%Hangzhou Hangzhou information ment Huaxiyue RMB 10 Haizhu Haizhu Electronics million District District and 100.00% Establish Guangzhou Guangzhou information ment Huajie RMB 50 Xiaoshan Xiaoshan New Operation million District District energy 100.00% Establish Hangzhou Hangzhou operations ment Electronics Qingdao Ruifa RMB 7 Qingdao Qingdao Establishmillion Shandong Shandong and 100.00%information ment Shandong RMB 10 Jinan Jinan ElectronicsDigital million Shandong Shandong and 100.00% Establish Intelligence information ment Fujian RMB 10 Qingliu Qingliu ElectronicsCounty County and 100.00% EstablishQingchuang million Fujian Fujian information ment RMB 10 Changchun Changchun ElectronicsJilin Zhilian Jilin Jilin and 100.00% Establishmillion Province Province information ment Zhengzhou RMB 10 Zhengzhou Zhengzhou Electronics Establish Huaao million Henan Henan and 100.00%information ment Hainan Huizhi RMB 10 Hainan Hainan Electronics Establish million Province Province and 100.00%information ment Qingdao RMB 5 Qingdao Qingdao Electronicsand 100.00% EstablishRuihai million Shandong Shandong information ment Dahua (HK) RMB Electronics Limited 669.68734 Hong Kong Hong Kong and 100.00% Establish 7 million information ment Electronics Dahua Europe EUR200000 Netherlands Netherlands and 100.00% Establish information ment Dahua Middle AED 1 United Arab United Arab Electronics Establish East million Emirates Emirates and 100.00%information ment Electronics Dahua Mexico MXN 90million Mexico Mexico and 100.00% Establish information ment CLP 360 ElectronicsDahua Chile million Chile Chile and 100.00% Establish information ment Dahua COP Electronics Colombia 4616.7090 Columbia Columbia and 100.00% Establish 16 million information ment Dahua AUD Electronics Australia 150000 Australia Australia and 100.00% Establish information ment Dahua USD Electronics Singapore 220000 Singapore Singapore and 100.00% Establish information ment Dahua South ZAR 5 Electronics Establish Africa million South Africa South Africa and 100.00%information ment Dahua Peru PEN 2.2 Electronics million Peru Peru and 100.00% Establish information ment 3582025 Annual Report of Zhejiang Dahua Technology Co. 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Full Text BRL Electronics Dahua Brazil 41.334811 Brazil Brazil and 100.00% Establish million information ment Electronics Dahua Russia RUB 30 Russia Russia and 100.00% Establishmillion information ment Dahua CAD Electronics Canada 250000 Canada Canada and 100.00% Establish information ment Dahua USD ElectronicsPanama Panama and 100.00% EstablishPanama 10000 information ment Dahua HUF 303 Electronics Hungary million Hungary Hungary and 100.00% Establish information ment Dahua Poland PLN 2.2 Electronics Poland Poland and 100.00% Establishmillion information ment Electronics Dahua Tunisia USD89000 Tunisia Tunisia and 100.00% Establish information ment KES 15 ElectronicsDahua Kenya million Kenya Kenya and 100.00% Establish information ment GBP ElectronicsDahua UK UK UK and 100.00% Establish100000 information ment Dahua BGN Electronics Bulgaria 350000 Bulgaria Bulgaria and 100.00% Establish information ment Electronics Dahua Serbia RSD 23 Serbia Serbia and 100.00% Establishmillion information ment Dahua EUR Electronics Germany 150000 Germany Germany and 100.00% Establish information ment Dahua MYR Electronics Malaysia 1000000 Malaysia Malaysia and 100.00% Establish information ment KRW Electronics Dahua Korea 1500 South Korea South Korea and 100.00% Establish million information ment Dahua IDR 10 Electronics Indonesia billion Indonesia Indonesia and 100.00% Establish information ment INR 234 ElectronicsDahua India million India India and 100.00% Establish information ment Electronics Dahua Turkey TRY Establish840000 Turkey Turkey and 100.00%information ment CZK 5.4 Czech Czech ElectronicsDahua Czech and 100.00% Establishmillion Republic Republic information ment Dahua ARS Electronics49.686361 Argentina Argentina and 100.00% EstablishArgentina million information ment Dahua Spain EUR Electronics 150000 Spain Spain and 100.00% Establish information ment Dahua KZT 23 Electronics Kazakhstan million Kazakhstan Kazakhstan and 100.00% Establish information ment Dahua DKK 1.5 Denmark Denmark Electronics 100.00% Establish 3592025 Annual Report of Zhejiang Dahua Technology Co. 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Full Text Denmark million and ment information Electronics Dahua France EUR100000 France France and 100.00% Establish information ment Hong Kong HKD Electronics Establish Yihua 500000 Hong Kong Hong Kong and 100.00%information ment Dahua AED Electronics Morocco 500000 Morocco Morocco and 100.00% Establish information ment Business EUR Electronics combinat Dahua Italy 12000 Italy Italy and 100.00% ion not information undercommon control Dahua UZS Electronics Establish Uzbekistan 10559825 Uzbekistan Uzbekistan and 100.00%239 information ment Dahua EUR Electronics Netherlands 10000 Netherlands Netherlands and 100.00% Establish information ment Dahua Sri LKR 48 Electronics Lanka million Sri Lanka Sri Lanka and 100.00% Establish information ment Dahua PKR 100 Electronics Pakistan million Pakistan Pakistan and 100.00% Establish information ment Dahua New NZD New New Electronics Establish Zealand 300000 Zealand Zealand and 100.00%information ment Dahua THB 25 Electronics Thailand million Thailand Thailand and 99.98% Establish information ment Dahua RON 1 Electronics Establish Romania million Romania Romania and 100.00%information ment NGN 100 ElectronicsDahua Nigeria million Nigeria Nigeria and 100.00% Establish information ment Electronics Dahua Israel USD300000 Israel Israel and 100.00% Establish information ment Dahua Mexico 1000.00 Electronics Service Mexican Mexico Mexico and 100.00% Establish pesos information ment JPY 6 ElectronicsDahua Japan Japan Japan and 100.00% Establishmillion information ment Electronics Dahua Qatar QAR 2.184million Qatar Qatar and 100.00% Establish information ment USD ElectronicsDahua Pacific 10000 Panama Panama and 100.00% Establish information ment Dahua Saudi SAR Electronics Establish Arabia 500000 Saudi Arabia Saudi Arabia and 100.00%information ment Dahua Bengal BDT 5 Electronics million Bangladesh Bangladesh and 100.00% Establish information ment HuaRay USD Electronics Establish Singapore 100000 Singapore Singapore and 100.00% ment 3602025 Annual Report of Zhejiang Dahua Technology Co. 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Full Text information HuaRay KRW 100 Electronics Korea million South Korea South Korea and 100.00% Establish information ment HuaRay EUR Electronics Germany 25000 Germany Germany and 100.00% Establish information ment Dahua EUR Electronics Belgium Co. 100000 Belgium Belgium and 100.00% Establish information ment Dahua Saudi SAR ElectronicsSaudi Arabia Saudi Arabia and 100.00% EstablishArabia Co. 750000 information ment Dahua USD ElectronicsAzerbaijan Azerbaijan and 100.00% EstablishArgentina Co. 200000 information ment Dahua VND Electronics Vietnam Co. 2363.6 Vietnam Vietnam and 100.00% Establish Ltd. million information ment AOA Electronics Dahua Angola 176.303 Angola Angola and 100.00% Establish million information ment Hirige Technology MYR Automotive Establish MaLaysia 2000.00 Malaysia Malaysia Electronics 100.00% ment USD ElectronicsDahua Egypt Egypt Egypt and 100.00% Establish100000 information ment DAHUAAbu AED Electronics Dhabi 100000 Abu Dhabi Abu Dhabi and 100.00% Establish information ment PixFra Hong HKD 1 Electronics Kong million Hong Kong Hong Kong and 100.00% Establish information ment Zhejiang Huaxiao Technology Co. Ltd. HKD 5 Electronics Hong Kong Hong Kong and 100.00% Establish (Wisualarm million information ment Technology) Hong Kong Explanations on the fact that the proportion of the shares held by a subsidiary differs from that of voting rights: In May 2025 Ningbo Hualing Venture Capital Investment 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 December 31 2025 the company holds 32.5817% equity 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 controlling subsidiary and is included within the company's consolidated scope. (2) As of December 31 2025 the Company held 49.0385% equity in Zhejiang Huaruijie Technology Co. Ltd. and 3612025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text through provisions in the articles of association arrangements by the Board of Directors and other measures was able to determine Hirige's financial and operating policies and obtain the primary benefits thereof which in substance constituted control over Hirige and brought it within the Company's scope of consolidation. 2. The transactions that lead to changes in the shareholder's equity in the subsidiaries while still has working control over the subsidiary (1) Explanation of the Changes in the Shareholder's Equity in the Subsidiaries 1) In June 2025 Jiangsu Huaruipin Technology Co. Ltd. reduced its registered capital; its shareholders Zhejiang Huashi Investment Management Co. Ltd. Hangzhou Ruipin Enterprise Management Partnership (Limited Partnership) and Shen Huiliang withdrew their investments. After the withdrawal the company's shareholding ratio in Jiangsu Huaruipin Technology Co. Ltd. increased from 51% to 100%. 2) In December 2025 the company acquired 8.10% equity in Zhejiang Huayixin Technology Co. Ltd. held by Ningbo Huagu Enterprise Management Partnership (Limited Partnership) for a consideration of RMB 1580000.00 and acquired 3.50% equity in Zhejiang Huayixin Technology Co. Ltd. held by Zhou Ling for a consideration of RMB 1680000.00. After the equity acquisitions the company's shareholding ratio in Zhejiang Huayixin Technology Co. Ltd. increased from 51% to 62.60%. 3) In July 2025 the minority shareholder of the subsidiary Zhejiang Huaruijie Technology Co. Ltd. made a capital contribution; after the capital increase the company's shareholding ratio in Zhejiang Huaruijie Technology Co. Ltd.decreased from 51% to 49.0385%. (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 Zhejiang Huayixin Zhejiang Huaruijie Technology Co. Ltd. Technology Co. Ltd. Technology Co. Ltd.Purchase cost/Disposal 25750435.513260000.00 consideration -- Cash 25750435.51 3260000.00 -- Fair value of non-cash assets Purchase cost/ Total 25750435.513260000.00 disposal consideration Less: the share of net assets of the subsidiary calculated based on the 25806144.13 -15848365.16 63911.73 ratio of equity obtained/disposed Difference -55708.62 19108365.16 -63911.73 Among them: adjust the 55708.62-19108365.1663911.73 capital reserve Adjusted surplus reserve Adjusted undistributed profits 3622025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 725578108.27 722241568.57 The total count of the following items based on the shareholding ratios --Net profit 31405872.43 14958434.46 --Other comprehensive income 17010077.33 -7514266.44 --Total comprehensive income 48415949.76 7444168.02 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 2. Projects Related to Government Subsidies □Applicable □ Not Applicable Unit: RMB Amount Amounts The amount recorded as transferred Other Related to Accounting Opening of new non- to other changes in Closing assets/earni Accounts Balance subsidies in operating gains in the the current Balance ngs this period revenue in current period this period period Deferred 18122524 5275166.0 16424988. 17007542 Related to Income 6.29 0 60 3.69 assets Deferred 4955766.7 1371100.0 6326866.7 Related to Income 0 0 0 income 3632025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 817125550.47738177005.43 collection Special grants 338545545.11 249665678.30 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 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. 3642025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text The financial liabilities of the Company are listed as follows based on the undiscounted contractual cash flow: Unit: RMB Item December 31 2025Within 1 year 1 years or above Total Short-term Loan 203714311.58 203714311.58 Notes Payable 3659798751.88 3659798751.88 Accounts Payable 5132662730.78 5132662730.78 Other Payables 470148655.21 470148655.21 Non-current Liabilities Due within One Year 254018259.03 254018259.03 Lease Liabilities 173857105.59 173857105.59 Total 9720342708.48 173857105.59 9894199814.07 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 124348757.02 124348757.02 One Year Lease Liabilities 120670497.25 120670497.25 Total 11234313420.22 120670497.25 11354983917.47 (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. 3652025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 Monetary 2433515025. 1423578813. 3857093839. 2177690323. 1222643014. 3400333337.Fund 25 82 07 36 06 42 Accounts Receivabl 3345872887. 2354147824. 5700020711. 4082571616. 2667735918. 6750307535.e 48 12 60 81 53 34 Accounts Payable 872579698.27 57277804.90 929857503.17 831712779.40 276142582.65 1107855362. 05 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 57135954.09 252021917.81 309157871.90 Assets 1. Financial assets at fair value through 57135954.09 252021917.81 309157871.90 profit or loss in this period (1) Investment in 57135954.09 57135954.09 Equity Instruments (2) Others 252021917.81 252021917.81 (II) Receivables Financing 1102535053.89 1102535053.89 (III) Other Non- current Financial 1908522640.26 80563656.86 1989086297.12 Assets 1. Financial assets at fair value through profit or loss in this 1908522640.26 80563656.86 1989086297.12 period (1) Investment in Equity Instruments 80563656.86 80563656.86 (2) Others 1908522640.26 1908522640.26 Total assets constantly measured 57135954.09 3263079611.96 80563656.86 3400779222.91 at fair value (IV) Transactional Financial Liabilities 3662025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Derivative Financial Liabilities Others Total amount of liabilities constantly 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 of financial institutions 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. 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. 3672025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 31.15% 31.50% 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) Zhejiang Gaohua AIoT Technology Co. Ltd. Affiliate 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) Ningbo Huaqi Enterprise Management Partnership Enterprise controlled by the actual controller (Limited Partnership) 3682025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Ningbo Huagu Enterprise Management Partnership Enterprise controlled by the actual controller (Limited Partnership) Jiaxing Huayan Chuangrui Venture Capital Investment Enterprise controlled by the actual controller Partnership (Limited Partnership) 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 Enterprises where the actual controller has significant Zhejiang Leapmotor Technology Co. Ltd. and its affiliates influence China Mobile Communications Group Co. Ltd. and its Shareholders holding more than 5% of the shares affiliates Enterprises where the Company's former supervisors Beijing Haitian Ruisheng Science Technology Ltd.serve as directors Enterprises where the Company's former supervisors Beijing Saimu Technology Co. Ltd.serve as directors Company A and other companies under its control Related parties Hangzhou Huacheng Network Technology Co. Ltd. and Subsidiaries controlled during the past 12 months (Note its subsidiaries 1) Other notes: Note 1: 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. 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 237852190.75 No 251120672.03 materials under its control China Mobile Material Communications procurement 90760664.03 No 69439293.57 Group Co. Ltd. acceptance of and its affiliates services Hangzhou Huacheng Material Network procurement 81816453.59 No Technology Co. acceptance of Ltd. and its services subsidiaries Zhejiang Huachuang Purchase of Vision 41540010.38 No 41355588.69 materials Technology Co.Ltd. 3692025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Zhejiang Material Leapmotor procurement Technology Co. 13793419.08 No 5890244.00 acceptance of Ltd. and its services affiliates Zhejiang Material Huanuokang procurement Technology Co. 593723.96 No 1753437.75 acceptance of Ltd. and its services subsidiaries Zhejiang Lancable Acceptance of 15938.19 No Technology Co. services Ltd.Ruicity Digital Technology Co. Purchase of No 8517077.21 Ltd. And its materials subsidiaries Purchase of Intelbras S.A. No 135122.60 materials Beijing Haitian Ruisheng Acceptance of No 130230.19 Science services Technology Ltd.Zhejiang Lancable Purchase of No 2548.68 Technology Co. materials Ltd.Sales of merchandise and provision of services Unit: RMB Content of the Related - Amount Occurred in the Amount Occurred in the Related Parties Party Transaction Current Period Previous Period Intelbras S.A. Sales of merchandise 957130675.30 1272280696.42 Zhejiang Leapmotor Sales of goods and Technology Co. Ltd. and 617697412.32 405417599.67 provision of services its affiliates China Mobile Sales of goods and Communications Group 360716570.05 189924499.42 provision of services Co. Ltd. and its affiliates Zhejiang Hyxi Technology Sales of goods and 5207082.842383310.22 Co. Ltd. provision of services Rudong Jintianhua Security Technology Co. Sales of merchandise 3432491.14 Ltd.Dezhou Shuzhi Information Sales of merchandise 3223988.88 9665438.58 Technology Co. Ltd.Zhejiang Huanuokang Technology Co. Ltd. and Sales of merchandise 2734959.16 1628266.86 its subsidiaries Ningbo Cida Yongshun Intelligent Technology Co. Sales of merchandise 2727791.22 2786571.83 Ltd.Hangzhou Huacheng Sales of goods and 2696175.20 Network Technology Co. provision of services 3702025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Ltd. and its subsidiaries Guangdong Zhishi Digital Sales of merchandise 2407327.91 5696670.05 Technology Co. Ltd.Guangxi FTZ Huaqin Wisdom Park Technology Sales of merchandise 1611955.74 414132.75 Research Institute Co. Ltd.Zhejiang Gaohua AIoT Sales of merchandise 1061803.02 Technology Co. Ltd.Beijing Saimu Technology Sales of merchandise 541592.92 Co. Ltd.Zhejiang Huachuang Sales of goods and 428408.98996525.68 Vision Technology Co. Ltd. provision of services Huahongchang Intelligent Technology (Jiangsu) Co. Sales of merchandise 10442.48 Ltd.Hangzhou Xianmai Sales of merchandise 4335.40 Technology Co. Ltd.Ruicity Digital Technology Co. Ltd. And its Sales of merchandise -46757.87 6370044.11 subsidiaries Zhejiang Lancable Sales of merchandise -9204.38 Technology Co. Ltd. (2) Related Leasing The Company being the lessor: Unit: RMB Rental Income Confirmed Rental Income Confirmed Name of the Lessee Type of the Leased Assets in This Period in the Previous Period Hangzhou Huacheng Network Technology Co. Buildings and constructions 7931219.68 Ltd. and its subsidiaries Zhejiang Hyxi Technology Buildings and constructions 2964645.61 2231731.00 Co. Ltd.Zhejiang Huanuokang Technology Co. Ltd. and Buildings and constructions 1791391.45 1773201.45 its subsidiaries Zhejiang Leapmotor Technology Co. Ltd. and Buildings and constructions 237981.70 268976.15 its affiliates Huayan Capital (Hangzhou) Private Equity Buildings and constructions 93489.60 93212.07 Fund Management Co.Ltd.Zhejiang Gaohua AIoT Buildings and constructions 31906.82 Technology Co. Ltd.Zhejiang Huachuang Buildings and constructions 20091.72 20091.72 Vision Technology Co. Ltd.Zhejiang Leapmotor Technology Co. Ltd. and Device 153433.61 its affiliates 3712025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Huayan Capital (Hangzhou) Private Equity Transport Device 14115.04 Fund Management Co.Ltd.The Company being the lessee: Unit: RMB Simplified rental Variable lease expenses for payments not Interest expense short-term leases included in the Increased right- Rent paid on lease and low-value measurement of of-use assets liabilities borne Typ asset leases (if lease liabilities (if e of applicable) applicable) Name the Amou Amou Amou of the leas AmouAmount nt nt Amount nt lessor ed Amount ntOccurr Amount Amount Occur Occur Occurr Amount Occur asse Occurr Occured in Occurre Occurre red in red in ed in Occurre red in ts ed in red inthe d in the d in the the the the d in the the the the Previou Current Previou Curre Previ Previou Current Previo Current Curre s Period s Period nt ous s Period us Period nt Period Perio Perio Period Perio Period d d d Zhejian g Mac Leapmo hine tor ry 1034 200421484 Technol and 915. 33.972.27 ogy Co. equi 00 Ltd. and pme its nt affiliates (3) Related Guarantee The Company being the guarantor: Unit: RMB Guarantee Secured Parties Guarantee Amount Startingdate Maturity Date Fulfilled Completely or Not Zhejiang Dahua Vision Technology 220000000.00 October Two years after the maturity of the debts in Co. Ltd. 13 2017 the master contract No Zhejiang Dahua Vision Technology Co. Ltd. (guaranteed 40000000.00 September Two years after the maturity of the debts in 21 2018 the master contract No currency: USD) Zhejiang Dahua Vision Technology 300000000.00 September Five years upon expiration of debt period of Co. Ltd. 01 2020 master contract Yes Zhejiang Dahua Vision Technology 200000000.00 July 22 Three years after the maturity of the debts in2022 the master contract YesCo. Ltd.Zhejiang Dahua From the date of expiration of the Vision Technology 400000000.00 July 242023 performance period of each debt in the NoCo. Ltd. master contract until three years after the 3722025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text date of expiration of the performance period of the last due master debt under all master contracts Zhejiang Dahua From the date of signing the master contract Vision Technology 900000000.00 September for a single credit transaction until three years26 2023 after the debtor's debt performance period YesCo. Ltd. under the master contract expires Zhejiang Dahua Vision Technology 330000000.00 September Three years from the expiration date of the 26 2023 debtor's performance period as agreed in the NoCo. Ltd. master claim contract Zhejiang Dahua March 01 Three years from the next day after the expiryVision Technology 1000000000.00 2024 date of each type of financing business under NoCo. Ltd. the master contract Zhejiang Dahua April 01 Two years from the expiration date of theVision Technology 530000000.00 2024 debtor's performance period as agreed in the NoCo. Ltd. master contract From the effective date of the Commitment Letter to three years after the maturity date of Zhejiang Dahua each loan or other financing under the Credit Vision Technology 400000000.00 June 07 Agreement or of the accounts receivable Co. Ltd. 2024 claims granted by the Hangzhou Branch of Yes China Merchants Bank or the advance date of each advance within the credit extension period Zhejiang Dahua July 25 Three years from the expiration date of theVision Technology 495000000.00 2024 debtor's performance period as agreed in NoCo. Ltd. each specific financing contract The guarantee period is three years from the Zhejiang Dahua August 16 effective date of the Maximum AmountVision Technology 500000000.00 2024 Guarantee Contract until the expiration date YesCo. Ltd. of the performance period of each debt under the Credit Business Agreement.The guarantee period is from the effective Zhejiang Dahua date of the specific business credit contract to Vision Technology 680000000.00 September three years after the expiration of the debt Co. Ltd. 19 2024 performance period stipulated in the specific Yes business credit contract (including early maturity of the debt).Zhejiang Dahua Three years from the expiration date of the Vision Technology 200000000.00 December Co. Ltd. 13 2024 debtor's performance period as agreed in the No master contract.From the effective date of the Commitment Letter to three years after the maturity date of Zhejiang Dahua each loan or other financing under the Credit Vision Technology 400000000.00 June 10 Agreement or of the accounts receivable Co. Ltd. 2025 claims granted by the Hangzhou Branch of No China Merchants Bank or the advance date of each advance within the credit extension period The guarantee period is from the effective Zhejiang Dahua date of the Maximum Amount Guarantee Vision Technology 500000000.00 July 212025 Contract until three years from the expiration NoCo. Ltd. date of the performance period of each debt under the Credit Business Agreement.The guarantee period is three years from the Zhejiang Dahua expiration date of the period for performance Vision Technology 200000000.00 July 22 of the debtor's obligations under the master Co. Ltd. 2025 contract and the guarantee period under No each specific business contract is calculated separately.Zhejiang Dahua From the date of signing the contract for a Vision Technology 900000000.00 September single credit transaction until three years after Co. Ltd. 08 2025 the expiration of the period for performance of No the debtor's obligations under the master 3732025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text contract The guarantee period is from the effective Zhejiang Dahua date of the specific business credit contract to Vision Technology 800000000.00 September three years after the expiration of the debt Co. Ltd. 19 2025 performance period stipulated in the specific No business credit contract (including early maturity of the debt).Zhejiang Dahua Zhilian Co. Ltd. 200000000.00 September 26 2024 May 08 2025 Yes Zhejiang Dahua Two years from the expiration date of the Zhilian Co. Ltd. 300000000.00 March 29 2024 debtor's performance period as agreed in the Nomaster 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 160000000.00 June 07 Agreement or of the accounts receivableZhilian Co. Ltd. 2024 claims granted by the Hangzhou Branch of Yes 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 Zhejiang Dahua 600000000.00 July 25 each principal debt under the master contractZhilian Co. Ltd. 2024 and ends three years after the expiration date No of the performance period of the last due principal debt under all master contracts.Zhejiang Dahua Three years from the expiration date of the Zhilian Co. Ltd. 165000000.00 July 25 2024 debtor's performance period as agreed in Noeach specific financing contract The guarantee period is from the effective date of the specific business credit contract to Zhejiang Dahua 150000000.00 September three years after the expiration of the debtZhilian Co. Ltd. 19 2024 performance period stipulated in the specific Yes business credit contract (including early maturity of the debt).Zhejiang Dahua September Three years from the expiration date of the Zhilian Co. Ltd. 100000000.00 26 2024 debtor's performance period as agreed in the Nomaster contract.From the effective date of the commitment letter to three years after the maturity date of Zhejiang Dahua 160000000.00 June 10 each loan or other financing under the CreditZhilian Co. Ltd. 2025 Agreement or of the creditor's rights granted No by the Hangzhou Branch of China Merchants Bank or the advance date of each advance.Zhejiang Dahua January One year commencing upon the expiration of Zhilian Co. Ltd. 10000000.00 02 2025 Zhejiang Dahua Zhilian Co. Ltd.'s debt Yesperformance period.Zhejiang Dahua May 09 Zhilian Co. Ltd. 200000000.00 2025 August 24 2025 Yes Zhejiang Dahua August 25 Zhilian Co. Ltd. 200000000.00 2025 August 24 2030 No The guarantee period is from the effective date of the specific business credit contract to Zhejiang Dahua 150000000.00 September three years after the expiration of the debtZhilian Co. Ltd. 19 2025 performance period stipulated in the specific No business credit contract (including early maturity of the debt).Zhejiang Dahua System Engineering 5000000.00 September Co. Ltd. 26 2024 May 08 2025 Yes Zhejiang Dahua From the effective date of the Commitment System Engineering 40000000.00 June 10 Letter to three years after the maturity date of Co. Ltd. 2024 each loan or other financing under the Credit Yes Agreement or of the accounts receivable 3742025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period The guarantee period is three years from the Zhejiang Dahua August 16 effective date of the Maximum AmountSystem Engineering 50000000.00 2024 Guarantee Contract until the expiration date YesCo. Ltd. of the performance period of each debt under the Credit Business Agreement.Zhejiang Dahua The guarantee period is two years from the System Engineering 10000000.00 September expiration date of the period for performance Co. Ltd. 03 2024 of the debtor's obligations as stipulated in the Yes master contract.From the effective date of the commitment Zhejiang Dahua letter to three years after the maturity date of System Engineering 40000000.00 June 10 each loan or other financing under the Credit Co. Ltd. 2025 Agreement or of the creditor's rights granted No by the Hangzhou Branch of China Merchants Bank or the advance date of each advance.Zhejiang Dahua System Engineering 5000000.00 May 092025 August 24 2025 YesCo. Ltd.The guarantee period is from the effective Zhejiang Dahua date of the Maximum Amount Guarantee System Engineering 50000000.00 July 21 Co. Ltd. 2025 Contract until three years from the expiration No date of the performance period of each debt under the Credit Business Agreement.Zhejiang Dahua System Engineering 5000000.00 August 25 Co. Ltd. 2025 August 24 2030 No Zhejiang Dahua Two years from the expiration date of the System Engineering 20000000.00 September period for performance of the debtor's Co. Ltd. 08 2025 obligations as stipulated in the credit No agreement From the date of signing the master contract Zhejiang Dahua for a single credit transaction until three years System Engineering 30000000.00 November11 2025 after Dahua System Engineering's debt NoCo. Ltd. performance period under the master contract expires Dahua Technology (HK) April 22 Limited(guarantee 3000000.00 2024 April 21 2025 Yes currency: USD) Dahua Technology (HK) April 22 Limited(guarantee 3000000.00 2025 April 21 2026 No currency: USD) Dahua Technology (HK) January Limited(guarantee 20000000.00 15 2025 January 14 2026 No currency: USD) Dahua Technology (HK) July 01 Limited(guarantee 1500000.00 2025 July 01 2026 No currency: EUR) Dahua Technology Mexico S.A. DE C.V October (guaranteed currency: 1000000.00 18 2024 October 17 2025 Yes USD) Dahua Technology Mexico S.A. DE C.V 2000000.00 January Three years commencing from the day (guaranteed currency: 15 2025 following the expiration of the loan term under Yes USD) the main agreement.Dahua Technology 1000000.00 October October 30 2026 No 3752025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Mexico S.A. DE C.V 31 2025 (guaranteed currency: USD) Dahua Technology UK Limited (guaranteed 1160000.00 August 122020 Sign the Termination Notice Letter Nocurrency: GBP) Dahua Technology UK Limited (guarantee 1000000.00 March 042024 March 03 2025 Yescurrency: USD) Dahua Technology UK Limited (guarantee 1000000.00 March 04 March 03 2026 No currency: USD) 2025 Zhejiang Huayixin 10000000.00 April 29 Three years after the maturity of the debts inTechnology Co. Ltd. 2022 the master contract Yes Zhejiang Huayixin Technology Co. Ltd. 2000000.00 September 26 2024 May 08 2025 Yes From the effective date of the commitment letter to three years after the maturity date of Zhejiang Huayixin 10000000.00 September each loan or other financing under the CreditTechnology Co. Ltd. 26 2024 Agreement or of the creditor's rights granted Yes by the Hangzhou Branch of China Merchants Bank or the advance date of each advance.The guarantee period shall be three years Zhejiang Huayixin 10000000.00 May 09 starting from the day after the expiration ofTechnology Co. Ltd. 2025 the debtor's performance period as stipulated Yes in each specific financing contract.Zhejiang Huayixin May 09 Technology Co. Ltd. 2000000.00 2025 August 24 2025 Yes Zhejiang Huayixin August 25 Technology Co. Ltd. 2000000.00 2025 August 24 2030 No Zhejiang Fengshi Technology Co. Ltd. 100000000.00 September 26 2024 May 08 2025 Yes From the effective date of the commitment letter to three years after the maturity date of Zhejiang Fengshi 30000000.00 September each loan or other financing under the CreditTechnology Co. Ltd. 03 2024 Agreement or of the creditor's rights granted Yes 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 Zhejiang Fengshi 15000000.00 September three years after the expiration of the debtTechnology Co. Ltd. 19 2024 performance period stipulated in the specific Yes business credit contract (including early maturity of the debt).Zhejiang Fengshi May 09 Technology Co. Ltd. 100000000.00 2025 August 24 2025 Yes Zhejiang Fengshi August 25 Technology Co. Ltd. 100000000.00 2025 August 24 2030 No The guarantee period is from the effective date of the specific business credit contract to Zhejiang Fengshi September three years after the expiration of the debt Technology Co. Ltd. 10000000.00 19 2025 performance period stipulated in the specific No business credit contract (including early maturity of the debt).From the effective date of this commitment letter until the maturity date of each loan or Zhejiang Fengshi October other financing under the Credit Agreement Technology Co. Ltd. 30000000.00 09 2025 or the 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.Jiangsu Huaruipin September Technology Co. Ltd. 8000000.00 26 2024 May 08 2025 Yes Jiangsu Huaruipin 15000000.00 September The guarantee period is from the effective Yes 3762025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Technology Co. Ltd. 19 2024 date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).Jiangsu Huaruipin 8000000.00 May 09Technology Co. Ltd. 2025 August 24 2025 Yes Zhejiang Huaxiao September Technology Co. Ltd. 2000000.00 26 2024 May 08 2025 Yes Zhejiang Huaxiao 20000000.00 June 27 The debtor's debt performance period Technology Co. Ltd. 2025 stipulated in the master contract shall expire Notwo years from the due date.Zhejiang Huaxiao May 09 Technology Co. Ltd. 2000000.00 2025 August 24 2025 Yes Zhejiang Huaxiao August 25 Technology Co. Ltd. 2000000.00 2025 August 24 2030 No The guarantee period is from the effective date of the specific business credit contract to Xi'an Dahua Zhilian 20000000.00 September three years after the expiration of the debtTechnology Co. Ltd. 19 2024 performance period stipulated in the specific Yes business credit contract (including early maturity of the debt).Xi'an Dahua Zhilian 100000000.00 SeptemberTechnology Co. Ltd. 26 2024 May 08 2025 Yes From the effective date of the commitment letter to three years after the maturity date of Xi'an Dahua Zhilian December each loan or other financing under the Credit Technology Co. Ltd. 30000000.00 06 2024 Agreement or of the creditor's rights granted Yesby the Xi'an Branch of China Merchants Bank or the advance date of each advance within the credit extension period; Xi'an Dahua Zhilian 100000000.00 May 09Technology Co. Ltd. 2025 August 24 2025 Yes Xi'an Dahua Zhilian August 25 Technology Co. Ltd. 100000000.00 2025 August 24 2030 No The guarantee period is from the effective date of the specific business credit contract to Xi'an Dahua Zhilian September three years after the expiration of the debt Technology Co. Ltd. 20000000.00 19 2025 performance period stipulated in the specific No business credit contract (including early maturity of the debt).Zhengzhou Dahua Zhian Information 30000000.00 September Technology Co. Ltd. 26 2024 May 08 2025 Yes Zhengzhou Dahua Zhian Information 50000000.00 July 16 Technology Co. Ltd. 2024 February 19 2025 Yes Zhengzhou Dahua Zhian Information 30000000.00 May 092025 August 24 2025 YesTechnology Co. Ltd.Zhengzhou Dahua Zhian Information 50000000.00 February20 2025 June 09 2025 YesTechnology Co. Ltd.Zhengzhou Dahua Zhian Information 50000000.00 June 102025 June 09 2026 NoTechnology Co. Ltd.Zhengzhou Dahua Zhian Information 30000000.00 August 252025 August 24 2030 NoTechnology Co. Ltd.Chengdu Dahua Zhian Information July 16 Technology Service 80000000.00 2024 February 19 2025 Yes Co. Ltd.Chengdu Dahua 100000000.00 February June 09 2025 Yes 3772025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Zhian Information 20 2025 Technology Service Co. Ltd.Chengdu Dahua Zhian Information June 10 Technology Service 100000000.00 2025 June 09 2026 No Co. Ltd.Changsha Dahua Technology Co. Ltd. 50000000.00 September 26 2024 May 08 2025 Yes The guarantee period is from the effective date of the specific business credit contract to Changsha Dahua September three years after the expiration of the debt Technology Co. Ltd. 20000000.00 19 2024 performance period stipulated in the specific Yes business credit contract (including early maturity of the debt).Changsha Dahua May 09 Technology Co. Ltd. 50000000.00 2025 August 24 2025 Yes Changsha Dahua Technology Co. Ltd. 50000000.00 August 25 2025 August 24 2030 No The guarantee period is from the effective date of the specific business credit contract to Changsha Dahua 20000000.00 September three years after the expiration of the debtTechnology Co. Ltd. 19 2025 performance period stipulated in the specific No business credit contract (including early maturity of the debt).Zhejiang Pixfra Technology Co. Ltd. 5000000.00 September 26 2024 May 08 2025 Yes From the effective date of this contract until Zhejiang Pixfra February three years after the expiration date of the Technology Co. Ltd. 20000000.00 21 2025 debt performance period under the specific No credit under the master contract.Zhejiang Pixfra May 09 Technology Co. Ltd. 5000000.00 2025 August 24 2025 Yes Zhejiang Pixfra August 25 Technology Co. Ltd. 5000000.00 2025 August 24 2030 No Zhejiang Huafei Intelligent Technology 2000000.00 September CO. LTD. 26 2024 May 08 2025 Yes Zhejiang Huafei Intelligent Technology 10000000.00 May 092025 August 24 2025 YesCO. LTD.Zhejiang Huafei The debtor's debt performance period Intelligent Technology 15000000.00 June 272025 stipulated in the master contract shall expire NoCO. LTD. two years from the due date.Zhejiang Huafei Intelligent Technology 10000000.00 August 252025 August 24 2030 NoCO. LTD.Zhejiang Huajian September Technology Co. Ltd. 2000000.00 26 2024 May 08 2025 Yes Zhejiang Huajian Technology Co. Ltd. 2000000.00 May 09 2025 August 24 2025 Yes Zhejiang Huajian August 25 Technology Co. Ltd. 2000000.00 2025 August 24 2030 No Zhejiang Huajian August 25 Technology Co. Ltd. 30000000.00 2025 August 24 2028 No Zhejiang Huajian 963702.40 DecemberTechnology Co. Ltd. 19 2025 December 16 2028 No Zhejiang Huajian December Technology Co. Ltd. 12046280.00 19 2025 December 31 2026 No Hangzhou Xiaohua September Technology CO. LTD. 2000000.00 26 2024 May 08 2025 Yes Hangzhou Xiaohua Technology CO. LTD. 2000000.00 May 09 2025 August 24 2025 Yes Zhejiang Dahua 5000000.00 September May 08 2025 Yes 3782025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Security Network 26 2024 Operation Service Co. Ltd.Zhejiang Dahua Security Network May 09 Operation Service 5000000.00 2025 August 24 2025 Yes Co. Ltd.Dahua Technology France SAS 145690.20 December(guarantee currency: 07 2023 August 31 2029 No EUR) Dahua Europe B.V.(guarantee currency: 1500000.00 March 04 USD) 2024 March 03 2025 Yes Dahua Europe B.V.(guarantee currency: 2500000.00 March 042025 March 03 2026 NoUSD) Dahua Technology Italy S.R.L. March 04 (guarantee currency: 500000.00 2024 March 03 2025 Yes USD) Dahua Technology Italy S.R.L.(guarantee currency: 500000.00 March 04 2025 March 03 2026 No USD) Zhejiang Huaruijie May 09 Technology Co. Ltd. 2000000.00 2025 August 24 2025 Yes Zhejiang Huaruijie June 27 The debtor's debt performance period Technology Co. Ltd. 15000000.00 2025 stipulated in the master contract shall expire Notwo years from the due date.From the effective date of the commitment letter until the maturity date of each loan or Zhejiang Huaruijie June 27 other financing under the Credit Agreement Technology Co. Ltd. 10000000.00 2025 or the maturity date of the accounts Yesreceivable creditor's right assigned to China Merchants Bank Hangzhou Branch or three years after the date of each advance.Zhejiang Huaruijie August 25 Technology Co. Ltd. 2000000.00 2025 August 24 2030 No Yibin Huahui Information 4754237.19 January02 2025 December 31 2025 YesTechnology Co. Ltd.Dahua Technology Singapore Pte. Ltd. April 30 (guarantee currency: 164177.83 2025 January 30 2028 No SGD) (4) Asset Transfer and Debt Restructuring of Related Parties Unit: RMB Content of the Related - Amount Occurred in the Amount Occurred in the Related Parties Party Transaction Current Period Previous Period Zhejiang Leapmotor Procurement of fixed Technology Co. Ltd. and 2041170.69 assets its affiliates Hangzhou Huacheng Procurement of fixed Network Technology Co. 93649.38 assets Ltd. and its subsidiaries Zhejiang Hyxi Technology Procurement of fixed 61946.77 Co. Ltd. assets 3792025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Zhejiang Huachuang Procurement of fixed 25424.7833671.84 Vision Technology 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 34761340.55 32004911.06 (6) Other Related-party Transactions (1) In April 2025 the Company held the 13th meeting of the eighth Board of Directors and reviewed and approved the "Proposal on the Company's Waiver of the Pre-emptive Right in Respect of the Equity Transfer of Certain Controlling Subsidiaries and Related-Party Transactions." Other shareholders of the Company's controlling subsidiaries Huayixin Hirige and Huajian Technology intended to transfer their equity in the aforementioned companies among entities under common control. Specifically Ningbo Hualing Venture Capital Investment Partnership (Limited Partnership) (hereinafter referred to as "Ningbo Hualing") would transfer its 37.40% equity in Huayixin (paid-in capital of RMB 29.92 million) to the executive partner Ms. Chen Ailing at a price of RMB 29.92 million; Ningbo Hualing would transfer its 14.00% equity in Hirige (paid-in capital of RMB 14.00 million) to the executive partner Ms. Chen Ailing at a price of RMB 15.93 million; and Ningbo Hualing would transfer its 35.00% equity in Huajian Technology (paid-in capital of RMB 17.50 million) to the executive partner Ms. Chen Ailing at a price of RMB 17.50 million. The Board of Directors agreed to waive the pre-emptive right regarding the equity transfer matters. Following the aforementioned equity transfer the Company's proportional ownership interest in the controlling subsidiary will not decrease and there will be no change to the scope of consolidation. (2) During the reporting period pursuant to a resolution of the General Meeting of Shareholders of the controlling subsidiary Huaruipin Huaruipin's registered capital was reduced from RMB 50000000 to RMB 25500000 of which the shareholder and related party Zhejiang Huashi Investment Management Co. Ltd. reduced its subscribed capital by RMB 17000000 and Hangzhou Ruipin Enterprise Management Partnership (Limited Partnership) reduced its subscribed capital by RMB 5750000. Post-reduction Huaruipin became a wholly-owned subsidiary of the Company. (3) During the reporting period the company acquired 8.10% equity of Huayixin held by related party Ningbo Huagu Enterprise Management Partnership (Limited Partnership) for a consideration of RMB 1.58 million and acquired 3.50% equity of Huayixin held by other original shareholders for a consideration of RMB 1.68 million. After the equity acquisitions the company's shareholding ratio in Huayixin increased from 51% to 62.60%. (4) During the reporting period the shareholder of the subsidiary Hirige Ningbo Huaqi Enterprise Management Partnership (Limited Partnership) increased Hirige's capital by RMB 6000000 at a price of RMB 1 per unit of registered capital and the Company waived its pro rata capital increase rights. After the capital increase the company's equity in Hirige decreased from 51% to 49.04%. (5) During the reporting period the subsidiary Zhejiang Dahua Investment Management Co. Ltd. together with related party Jiaxing Huayan Chuangrui Venture Capital Partnership (Limited Partnership) and other third?party investors made a capital injection in Shenzhen Xinzhan Su Technology Development Co. Ltd. After the capital increase Zhejiang Dahua Investment Management Co. Ltd. holds a 9.99% equity stake in Shenzhen Xinzhan Su Technology Development Co. Ltd. (corresponding registered capital of RMB 700000). 3802025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 6. Receivables and Payables of the Related Parties (1) Receivables Unit: RMB Closing Balance Opening Balance Item Name Related Parties Bad Debt Bad Debt Book Balance Book Balance Provision Provision Accounts Intelbras S.A. 565687976.12 28284398.81 591354065.58 29567703.28 Receivable Zhejiang Leapmotor Accounts Technology Co. 243469945.87 12324275.05 264675710.56 13357368.51 Receivable Ltd. and its affiliates China Mobile Accounts Communications 173723159.4122141300.67153789928.6821308153.74 Receivable Group Co. Ltd.and its affiliates Ruicity Digital Accounts Technology Co. 17805860.203880447.6117669453.041408576.57 Receivable Ltd. And its subsidiaries Zhejiang Hyxi Accounts Technology Co. 7191816.06 364839.65 2049201.90 102460.10 Receivable Ltd.Hangzhou Huacheng Accounts Network 6667394.03333369.70 Receivable Technology Co.Ltd. and its subsidiaries Ningbo Cida Yongshun Accounts Intelligent 3439910.01 191774.60 2642556.01 132127.80 Receivable Technology Co.Ltd.Guangdong Accounts Zhishi Digital 3439407.34210046.127550832.132958999.91 Receivable Technology Co.Ltd.Zhejiang Huachuang Accounts Vision 2183552.25 359414.32 2602776.37 201453.69 Receivable Technology Co.Ltd.Rudong Jintianhua Accounts Security 1682416.30 84120.82 Receivable Technology Co.Ltd.Zhejiang Gaohua Accounts AIoT Technology 1063799.06 53189.95 Receivable Co. Ltd. 3812025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Zhejiang Huanuokang Accounts Technology Co. 593647.84 29682.39 291210.78 14560.54 Receivable Ltd. and its subsidiaries Guangxi FTZ Huaqin Wisdom Accounts Park Technology 586250.00 29312.50 31170.00 1558.50 Receivable Research Institute Co. Ltd.Dezhou Shuzhi Accounts Information 578356.9928917.856231962.01311598.10 Receivable Technology Co.Ltd.Beijing Saimu Accounts Technology Co. 361600.00 18080.00 Receivable Ltd.Company A and Accounts other companies 315750.18 252847.40 Receivable under its control Zhejiang Leapmotor Prepayments Technology Co. 4274499.53 Ltd. and its affiliates Company A and Prepayments other companies 118580.39 747840.52 under its control China Mobile Communications Prepayments 86914.16 376505.05 Group Co. Ltd.and its affiliates China Mobile Communications Contract Assets 4665386.88 1140507.11 5745492.32 747625.61 Group Co. Ltd.and its affiliates Zhejiang Leapmotor Contract Assets Technology Co. 258828.00 12941.40 Ltd. and its affiliates Zhejiang Gaohua Contract Assets AIoT Technology 37816.45 1890.82 Co. Ltd.Ruicity Digital Technology Co.Contract Assets 155050.00 44122.80 Ltd. And its subsidiaries Zhejiang Hyxi Contract Assets Technology Co. 90160.20 4508.01 Ltd.China Mobile Other Communications 2564089.07457039.703199859.09573371.54 Receivables Group Co. Ltd.and its affiliates 3822025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Zhejiang Leapmotor Other Technology Co. 44850.00 13455.00 244850.00 14485.00 Receivables Ltd. and its affiliates (2) Payables Unit: RMB Item Name Related Parties Closing Balance Opening Balance Hangzhou Huacheng Accounts Payable Network Technology Co. 82757252.69 Ltd. and its subsidiaries China Mobile Accounts Payable Communications Group 24800225.13 36039551.28 Co. Ltd. and its affiliates Zhejiang Huachuang Accounts Payable 6152886.04 9010272.07 Vision Technology Co. Ltd.Zhejiang Leapmotor Accounts Payable Technology Co. Ltd. and 2483997.04 1735191.79 its affiliates Ruicity Digital Technology Accounts Payable Co. Ltd. And its 315937.12 2324793.29 subsidiaries Company A and other Accounts Payable companies under its 216602.02 control Zhejiang Huanuokang Accounts Payable Technology Co. Ltd. and 107500.00 its subsidiaries China Mobile Contract Liabilities Communications Group 12657755.06 9457312.09 Co. Ltd. and its affiliates Zhejiang Leapmotor Contract Liabilities Technology Co. Ltd. and 5268695.73 2375139.56 its affiliates Hangzhou Huacheng Contract Liabilities Network Technology Co. 460176.99 Ltd. and its subsidiaries Contract Liabilities Intelbras S.A. 242409.47 3033496.96 Zhejiang Gaohua AIoT Contract Liabilities 153325.22 Technology Co. Ltd.Ruicity Digital Technology Contract Liabilities Co. Ltd. And its 13274.34 subsidiaries Huayan Capital (Hangzhou) Private Equity Contract Liabilities 107.09 Fund Management Co.Ltd.China Mobile Other Payables Communications Group 12105552.27 10647937.20 Co. Ltd. and its affiliates Ningbo Hualing Venture Other Payables 10926042.47 13727591.82 Capital Investment 3832025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Partnership (Limited Partnership) Ningbo Huayan Chuangxi Venture Capital Investment Other Payables 4683641.32 4683641.32 Partnership (Limited Partnership) Zhejiang Leapmotor Other Payables Technology Co. Ltd. and 50000.00 300000.00 its affiliates Zhejiang Huachuang Other Payables 200816.89 Vision Technology Co. Ltd.Zhejiang Huanuokang Other Payables Technology Co. Ltd. and 63070.00 its subsidiaries Zhejiang Leapmotor Lease Liabilities Technology Co. Ltd. and 6358130.27 6550386.06 its affiliates XV. Share-based Payment 1. Overview of Share-based Payment □Applicable □ Not Applicable Unit: RMB Category Granted in the Current Exercising in the Unlocked in the Current Lapsed in the Current of Granted Period Current Period Period Period Recipients Quantity Amount Quantity Amount Quantity Amount Quantity Amount Senior managem ent other managem 1167080 2275806 4624097 2350908 ent and 1.00 1.95 0.00 39.30 key business personnel 1167080227580646240972350908 Total 1.001.950.0039.30 Stock options or other equity instruments outstanding at the end of the period □ Applicable □Not Applicable Other notes: (1) The company and its subsidiaries' employees hold equity in the subsidiary HuaRay Technology through capital increase or direct or indirect equity transfer. Share-based payment expenses of RMB 68503483.47 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. Share-based payment expenses of RMB 10838268.39 were recognized in this period. 3842025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (3) The company and its subsidiaries' employees hold equity in the subsidiary Pixfra Technology through capital increase or direct or indirect equity transfer. Share-based payment expenses of RMB 19266115.58 were recognized in this period. 2. Situation of Equity-settled Share-based Payment □Applicable □ Not Applicable Unit: RMB Determined based on the most recent external investor's The method for determining the fair value of equity investment price on the grant date or assessed using the instruments on the day of granting income method.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 252640515.69 payment counted into the capital reserve Amount of equity-settled share-based payment confirmed 98607867.44 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 Equity-settled Share-based Category of Granted Recipients Cash-settled Share-based Payments Payments Senior management other management and key business 98607867.44 personnel Total 98607867.44 XVI. Commitments and Contingencies 1. Significant Commitments Important commitments on the balance sheet day As of December 31 2025 the pledge information of the Company was 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 Agreement jointly signed by the company and its subsidiaries Zhejiang Dahua Vision Technology Co. Ltd. Zhejiang 3852025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 note pool arrangement as of December 31 2025 the Company had RMB 109369831.10 in outstanding notes receivable (of which RMB 100000000.00 were notes receivable from related parties within the scope of consolidation); the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. had RMB 673351555.09 in outstanding notes receivable (of which RMB 102076460.14 were notes receivable from related parties within the scope of consolidation); the subsidiary Zhejiang Dahua System Engineering Co. Ltd. had RMB 2809404.00 in outstanding notes receivable; the subsidiary Zhejiang Dahua Zhilian Co. Ltd. had RMB 141813204.72 in outstanding notes receivable; and the subsidiary Zhejiang Fengshi Technology Co. Ltd. had RMB 780281.75 in outstanding notes receivable.Under the pledge the Company issued the banker's acceptances in the amount of RMB 6545364.68 the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. issued the banker's acceptances in the amount of RMB 444599325.97 and the subsidiary Zhejiang Dahua Zhilian Co. Ltd. issued the banker's acceptances in the amount of RMB 266731498.85. (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 note-pool business as of December 31 2025 the company had RMB 128554577.22 notes receivable not yet due (of which RMB 118000000.00 were related?party notes included within the scope of consolidation) the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. had RMB 251914591.17 notes receivable not yet due (of which RMB 200000000.00 were related?party notes included within the scope of consolidation) the subsidiary Zhejiang Dahua System Engineering Co. Ltd. had RMB 2402178.00 notes receivable not yet due the subsidiary Zhejiang Dahua Zhilian Co. Ltd. had RMB 14258316.44 notes receivable not yet due and the subsidiary Zhejiang Fengshi Technology Co. Ltd. had RMB 323667.96 notes receivable not yet due.Under the pledge the company issued banker's acceptances in the amount of RMB 2874964.52; the subsidiary Zhejiang Dahua System Engineering Co. Ltd. issued banker's acceptances in the amount of RMB 3630422.57; the subsidiary Zhejiang Dahua Zhilian Co. Ltd. issued banker's acceptances in the amount of RMB 20004209.53; the subsidiary Zhejiang Fengshi Technology Co. Ltd. issued banker's acceptances in the amount of RMB 271358027.24; the subsidiary Zhejiang Huajian Technology Co. Ltd. issued banker's acceptances in the amount of RMB 7324376.01; the subsidiary Zhejiang Huaxiao Technology Co. Ltd. issued banker's acceptances in the amount of RMB 438025.43; and the subsidiary Zhejiang Huayixin Technology Co. Ltd. issued banker's acceptances in the amount of RMB 39437.00. (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. 3862025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Under this notes pool business as of December 31 2025 the subsidiary Zhejiang Dahua Vision Technology Co. Ltd.has RMB 34536755.50 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) On August 20 2025 the Company entered into the Asset Pool Charge-off Agreement No. PYHZSZCZ 20250726 No. 001 with Ping An Bank Co. Ltd. Hangzhou Branch (contract term: August 20 2025 to August 19 2026) which provides a special note pool credit facility of RMB 1.5 billion. The facility was also allocated to the subsidiary Zhejiang Dahua Vision 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 December 31 2025 the company has RMB 206234683.55 of notes receivable not yet matured (of which RMB 200000000.00 are notes from related parties within the consolidated scope). The subsidiary Zhejiang Dahua Vision Technology Co. Ltd. has RMB 267207255.14 of notes receivable not yet matured (of which RMB 220000000.00 are notes from related parties within the consolidated scope). The subsidiary Changsha Dahua Technology Co. Ltd. has RMB 3580196.00 of notes receivable not yet matured and the subsidiary Zhejiang PixFra Technology Co. Ltd. has RMB 2290491.40 of notes receivable not yet matured pledged for issuing banker's acceptance.Under this pledge arrangement the Company issued banker's acceptance notes totaling RMB 2174246.45; the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. issued banker's acceptance notes totaling RMB 264572450.48; the subsidiary Zhejiang PixFra Technology Co. Ltd. issued banker's acceptance notes totaling RMB 2031834.87; and the subsidiary Changsha Dahua Technology Co. Ltd. issued banker's acceptance notes totaling RMB 6742355.59. (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 December 31 2025 the subsidiary Zhejiang HuaRay Technology Co. Ltd. has RMB 28430326.67 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 22271836.45. 2. Contingencies (1) Important contingent matters on the balance sheet day None (2) Description required even if no important contingent matter is to be disclosed by the Company No important contingent matter to be disclosed by the Company.XVII. Events after the Balance Sheet Date 1. Profit Distribution Proposed dividend per 10 shares (RMB) 3.70 3872025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Proposed dividend per 10 shares (shares) 0 Proposed number of shares transferred for per 10 shares 0 (shares) Based on the share capital of 3249442473 shares after deducting the Company's repurchased shares as of April 17 2026 the Company will distribute a cash dividend of RMB 3.70 per 10 shares (tax inclusive) to all Profit distribution plan shareholders. This distribution will not convert capital reserves into share capital or distribute bonus shares and the remaining undistributed profits will be retained for subsequent distribution. 2. Explanation of Other Events after the Balance Sheet Date (1) In November 2025 following review by the 18th meeting of the company's eighth Board of Directors and the 2025 First Extraordinary General Meeting of Shareholders the company proposes to spin off its subsidiary Zhejiang HuaRay Technology Co. Ltd. for listing on the Main Board of the Stock Exchange of Hong Kong Limited. On January 19 2026 Zhejiang HuaRay Technology Co. Ltd. submitted application materials to the Hong Kong Stock Exchange for an initial public offering and listing on the Main Board of the Hong Kong Stock Exchange. The related matters are proceeding as planned. (2) On April 17 2026 the 8th Board of Directors' 21st meeting reviewed and approved the proposal "Regarding the <2026 Employee Stock Ownership Plan (Draft)> and Its Summary." The company plans to grant employee stock ownership plan shares to the company's core backbone personnel (no more than 1030 persons) at a consideration of RMB 9.58 per share. The planned fundraising scale is expected to not exceed RMB 189.8718 million and the specific number of participants and final subscription status will be determined based on the actual payment by employees.This proposal has been reviewed and approved by the Board of Directors' Remuneration and Assessment Committee and still needs to be submitted to the company's General Meeting of Shareholders for review.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 16752032126.82 10894153685.79 Overseas 15991751216.98 8548402136.98 3882025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Total 32743783343.80 19442555822.77 Product subsection Unit: RMB Item Operating Revenue Operating Cost AIoT Products and Solutions 26408997437.86 15201037475.03 Including: Software Business 1832591919.52 635354985.52 Innovative Businesses 5670492055.81 3692117185.29 Others 664293850.13 549401162.45 Total 32743783343.80 19442555822.77 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) 4288801180.60 3626113282.05 1 to 2 years 235657039.00 278227149.44 2 to 3 years 197513351.01 118907668.74 3 years or above 281616864.64 327790735.16 3 to 4 years 79638981.41 156150890.29 4 to 5 years 88006193.53 104733137.94 5 years or above 113971689.70 66906706.93 Total 5003588435.25 4351038835.39 (2) Disclosure by Bad Debt Provision Method Unit: RMB Closing Balance Opening Balance Bad Debt Bad Debt Book Balance Book Balance Category Provision Book Provision Book Amou Proporti Accrued value Proporti Accrued Value Amount Amount Amount nt on Ratio on Ratio Accounts receivabl es with the bad 6881 debt 68818 100.00 37472 37472 100.00 800.90.14%0.86% provision 00.94 % 879.25 879.25 % 4 accrued based on single item 3892025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Among them: Accounts receivabl e with insignific ant single amount 6881 68818100.003747237472100.00 but 800.9 0.14% 0.86% 00.94%879.25879.25% accrued 4 for separate provision of bad debt Accounts receivabl es with the bad 4996480404313541394 debt 192674 174068 706699.86%3.86%32357.65956.99.14%4.04%97263. provision 276.60 692.58 34.31711456 accrued based on combinati ons Among them: Portfolio 1: Consolid 3779 37796 31370 31370 ated 6198 75.54% 19861. 38601. 72.10% 38601.Related 61.37 37 58 58 Parties Portfolio Portfolio 2: Aging 1217 10244 11765 10024 192674174068 Analysis 0867 24.32% 15.83% 12496. 27354. 27.04% 14.80% 58661. 276.60692.58 Method 72.94 34 56 98 Portfolio 5003480404351041394 100.00199556100.00211541 Total 5884 32357. 38835. 97263.%077.54%571.83 35.25713956 Bad debt provision on an individual basis: RMB 6881800.94 Unit: RMB Opening Balance Closing Balance Reason for Name Bad Debt Bad Debt Making Bad Book Balance Book Balance Accrued Ratio Provision Provision Debt Provision Expected to Customer 1 36675477.42 36675477.42 be unable to recover Expected to Customer 2 5409849.60 5409849.60 100.00% be unable to 3902025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text recover Other Expected to sporadic 797401.83 797401.83 1471951.34 1471951.34 100.00% be unable to customers recover Total 37472879.25 37472879.25 6881800.94 6881800.94 Bad debt provision on a portfolio basis: RMB 192674276.60 Unit: RMB Closing Balance Name Book Balance Bad Debt Provision Accrued Ratio Within 1 Year 821146179.58 41057308.97 5.00% 1 to 2 years 140429770.97 14042977.10 10.00% 2 to 3 years 109000058.21 32700017.46 30.00% 3 to 4 years 64131019.67 32065509.84 50.00% 4 to 5 years 47856406.40 38285125.12 80.00% 5 years or above 34523338.11 34523338.11 100.00% Total 1217086772.94 192674276.60 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 Closing Balance Accrued or Written Off Others Balance Reversed Bad debt 41150552 211541571.8330755963.94133071.56-1457834.08199556077.54 provision .59 41150552 Total 211541571.83 30755963.94 133071.56 -1457834.08 199556077.54.59 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 41150552.59 Write-off of important accounts receivable: None 3912025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (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 percentage of Accounts Closing balance bad debts on of 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 3093806028.45 3093806028.45 61.33% Customer 2 212000532.86 212000532.86 4.20% Customer 3 158545408.98 3049705.42 161595114.40 3.20% 35451793.84 Customer 4 158550251.51 158550251.51 3.14% Customer 5 114302456.38 2888126.31 117190582.69 2.32% 13489991.28 Total 3737204678.18 5937831.73 3743142509.91 74.19% 48941785.12 2. Other Receivables Unit: RMB Item Closing Balance Opening Balance Other Receivables 14419762765.91 13384626871.41 Total 14419762765.91 13384626871.41 (1) 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 14267847401.84 13273651357.52 Equity Transfer Fund 71683294.00 Deposits 41920742.52 45415624.12 Employee home loan 38932850.00 50462191.00 Prepaid or advance expense 32314147.46 47488662.92 Others 352417.13 5892194.26 Total 14453050852.95 13422910029.82 2) Disclosure by Aging Unit: RMB Aging Closing Balance Opening Balance Within 1 year (including 1 year) 13693636091.28 12984563624.75 1 to 2 years 372767334.00 97135520.98 2 to 3 years 80860324.04 57731188.49 3 years or above 305787103.63 283479695.60 3922025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 3 to 4 years 46473845.99 40037678.96 4 to 5 years 33231067.76 63092431.82 5 years or above 226082189.88 180349584.82 Total 14453050852.95 13422910029.82 3) Disclosure by Bad Debt Provision Method Unit: RMB Closing Balance Opening Balance Bad Debt Bad Debt Book Balance Book Balance Category Provision Book Provision Book Amou Proporti Accrued value Proporti Accrued Value Amount Amount Amount nt on Ratio on Ratio Provision of bad 14453144191342213384 debts 100.00 33288 100.00 38283 05080.23%7627659100290.29%626871 based on % 087.04 % 158.41 52.95.91.82.41 combinat ion Among them: Portfolio 1:14267142671327313273 Related 8474 98.72% 847401 651357 98.89% 651357 Parties 01.84 .84 .52 .52 Portfolio Portfolio 18520 2: Aging 33288 151915 149258 38283 110975 3451.1.28%17.97%1.11%25.65% Analysis 087.04 364.07 672.30 158.41 513.89 11 Portfolio 14453144191342213384 100.0033288100.0038283 Total 0508 762765 910029 626871 %087.04%158.41 52.95.91.82.41 Bad debt provision on a portfolio basis: RMB 33288087.04 Unit: RMB Closing Balance Name Book Balance Bad Debt Provision Accrued Ratio Within 1 year (including 1 128265724.606413286.235.00% year) 1 to 2 years 16282507.41 1628250.74 10.00% 2 to 3 years 11884825.19 3565447.56 30.00% 3 to 4 years 12085614.00 6042807.00 50.00% 4 to 5 years 5232422.01 4185937.61 80.00% 5 years or above 11452357.90 11452357.90 100.00% Total 185203451.11 33288087.04 3932025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 20520608.0314459717.893302832.4938283158.41 January 01 2025 Balance as of January 01 2025 in this period --Transfer to phase -922929.25922929.25 two --Transfer to phase -25081.64-20905.6245987.26 three Provisions of this 1251206.51 4350958.56 615825.616217990.68 period Write off in this 677715.952983637.107551709.0011213062.05 period Balance as of 19510706.8013629310.93148069.3133288087.04 December 31 2025 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 38283158.416217990.6811213062.0533288087.04 provision Total 38283158.41 6217990.68 11213062.05 33288087.04 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 11213062.05 Write-off of other important receivables: None 3942025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 6) Other Receivables of the Top Five Closing Balances Collected by Debtors Unit: RMB As a percentage of total Bad debt Nature of the other provision at Name of Unit Closing Balance Aging Funds receivables the end of at the end the period of the period Within 1 year: RMB Zhejiang Dahua 9862793021.26; Vision Incomings and 1–2 years: RMB 5989.87; 9863183031.9768.24% Technology Co. outgoings 2–3 years: RMB 8232.26; Ltd. 3–4 years: RMB 375788.58 Zhejiang Dahua Incomings and 2573728313.58 Within 1 year 17.81% Zhilian Co. Ltd. outgoings Zhejiang Huaqi Intelligent Incomings and 504667310.06 Within 1 year 3.49% Technology Co. outgoings Ltd.Within 1 year: RMB 345428151.81 1–2 years: RMB 50.00 Zhejiang Dahua 2–3 years: RMB System Incomings and 1293307.72 3–4 years: 393270324.132.72% Engineering Co. outgoings RMB 4400100.00 Ltd. 4–5 years: RMB 5100400.00 over 5 years: RMB 37048314.60 Chengdu Dahua The amount within 1 year Zhian is RMB 143123935.34 Incomings and Information 385232950.12 and the amount in 2.67% outgoings Technology 1–2 years is RMB Service Co. Ltd. 242109014.78.Total 13720081929.86 94.93% 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 7923455949 7923455949 8006238280 8006238280 subsidiaries .26 .26 .28 .28 Investment in 155583278.1135696648.9156040573.4156040573.4 affiliates and 19886629.20 0077 joint ventures 8079039227805915259881622788538162278853 Total 19886629.20.36.16.75.75 3952025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text (1) Investment in Subsidiaries Unit: RMB Openi Decrease/Increase in the current period ng Closing balan balance Opening ce of ProvisionInvestm Investm Closing of The invested entity balance (book provis forents ent balance (book provisio value) ion impairme Othersincreas decrea value) n for for nted sed decline impair accrued in value ment Zhejiang Dahua System 540661946.5 540661946.5 Engineering Co. Ltd. 8 8 Zhejiang Dahua Security 102204947.5102204947.5 Network Operation Service 77 Co. Ltd.Zhejiang Dahua Ju'an 5100000.005100000.00 Technology Co. Ltd.Guangxi Dahua Information Technology 6202355.68 6202355.68 Co. Ltd.Dahua Technology 669687347.0 669687347.0 (HK) Limited 0 0 Zhejiang Dahua Vision 1300743888 1300743888 Technology Co. Ltd. .63 .63 Guangxi Dahua Yunlian Information Technology 20002580.76 20002580.76 Co. Ltd.Hangzhou Xiaohua 9318750.139318750.13 Technology CO. LTD.Zhejiang Dahua Zhilian 1888395709 1888395709 Co. Ltd. .21 .21 Zhejiang Dahua Investment Management 85284000.00 85284000.00 Co. Ltd.Guangxi Dahua Zhicheng 71316248.9071316248.90 Co. Ltd.Hangzhou Huacheng 32361 Network Technology Co. 32361160.53 160.53 Ltd.Zhejiang HuaRay 40849216.3940849216.39 Technology Co. Ltd.Hangzhou Fuyang Hua'ao 5124669.785124669.78 Technology Co. Ltd.Zhejiang Huafei Intelligent 2731123.942731123.94 Technology CO. LTD.Guizhou Huayi Shixin 1800000.001800000.00 Technology Co. Ltd.Zhejiang Fengshi 9060723.939060723.93 Technology Co. Ltd.YIHUA SERVICES 405100.00405100.00 (HK) LIMITED Zhejiang Huaxiao 39108952.26 39108952.26 3962025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Technology Co. Ltd.Xi'an Dahua Zhilian 991047555.5 991047555.5 Technology Co. Ltd. 5 5 Jiangsu Huaruipin 18020674.1318020674.13 Technology Co. Ltd.Beijing Huayue Shangcheng Information 10874903.0210874903.02 Technology Service Co.Ltd.Zhejiang Dahua Jinzhi 50000 60000000.0010000000.00 Technology Co. Ltd. 000.00 Shanghai Huashang Chengyue Information 2381088.272381088.27 Technology Service Co.Ltd.Zhejiang Zhoushan Digital Development Operation 18679176.00 18679176.00 Co. Ltd.Guangxi Dahua 30000000.0030000000.00 Technology Co. Ltd.Zhejiang Huayixin 32600 41052281.8944312281.89 Technology Co. Ltd. 00.00 Zhejiang Huaruijie 53826622.3853826622.38 Technology Co. Ltd.Chengdu Dahua Zhilian 600690562.5600690562.5 Information Technology 11 Co. Ltd.Chengdu Dahua Zhian 554700000.0554700000.0 Information Technology 00 Service Co. Ltd.Chengdu Huishan Smart Network Technology Co. 5800000.00 5800000.00 Ltd.Zhejiang Huajian 24718313.8224718313.82 Technology Co. Ltd.Guangxi Huacheng 162313.73162313.73 Technology Co. Ltd.Hangzhou Huacheng 36431 3643145.79 Software Co. Ltd. 45.79 Dahua Technology 72864.0072864.00 Canada Inc.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. 1000000.00 1000000.00 Ltd.Changsha Dahua 100023115.8 100023115.8 Technology Co. Ltd. 0 0 Zhejiang Pixfra Technology 592904907.4 592904907.4 Co. Ltd. 2 2 Zhejiang Dahua Intelligent 15869118.53 15869118.53 3972025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text IoT Operation Service Co.Ltd.Henan Dahua Zhilian Information Technology 127933.88 127933.88 Co. Ltd.Yibin Huahui Information 23018.8123018.81 Technology Co. Ltd.Luoyang Dahua Zhiyu Information Technology 10000000.00 10000000.00 Co. Ltd.Xi'an IMOU Zhilian 38024. 38024.70 Technology Co. Ltd. 70 Guangdong Huaxiyue Intelligent Technology Co. 221883.68 221883.68 Ltd.Total amount of other 2055.082055.08 companies 800623828032600860427923455949 Total.2800.00331.02.26 (2) Investment in Affiliates and Joint Ventures Unit: RMB Decrease/Increase in the current period Invest Closi Openi ment Adjust ng ng profit Cashment Closin balanOpenin balan and divide Provison g ce ofg The invested ce of Invest Invest loss Other nds or ion forother balanc provibalanc entity provisi ments ment recog chang profit impair e sion e (book compr Others on for increa decre nized es in declar ment value) ehens (book for impair sed ased under equity ed to accruive value) decli ment the distrib edincom ne in equity ute e value metho d I. Joint Ventures II. Joint Venture - Ruicity Digital 1988 2478 1988 528038129 Technology 6629. 7307. 6629 494.38557.9 Co. Ltd. 20 19 .20 9 Ningbo Huayan Chuangxi Venture 9713 7734 67626 Capital 409.9 0174. 764.60 Investment 6 56 Partnership (Limited Partnership) Dezhou 35989 - 3403 Shuzhi 59.67 1955 401.1 3982025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Information 58.48 9 Technology Co. Ltd.Sichuan Hengji Anhua - Internet of 96025 6346 3255 Things 5.07 68.33 86.74 Technology Co. Ltd.Zhejiang - Huachuang 9182 3016 310511006 Vision 418.8 5765. 099.757752. Technology 7 96 66 Co. Ltd.- 156049182198813561988 63469005 Subtotal 0573.4 418.8 6629. 9664 6629 68.33045.9 77208.90.20 1 - 156049182198813561988 63469005 Total 0573.4 418.8 6629. 9664 6629 68.33045.9 77208.90.20 1 4. Operating Revenue and Operating Cost Unit: RMB Amount Occurred in the Current Period Amount Occurred in the Previous Period Item Income Cost Income Cost Main Business 9821281286.65 1486927492.50 7449795751.08 1430946858.40 Other businesses 73864656.88 35285082.45 68395291.00 34191111.71 Total 9895145943.53 1522212574.95 7518191042.08 1465137970.11 5. Investment Income Unit: RMB Amount Occurred in the Current Amount Occurred in the Previous Item Period Period Long-term equity investment income 8304369.49 calculated by cost method Long-term equity investment income -9005045.91-34908353.35 measured by equity method Investment income from disposal of 694701692.306812806.50 long-term equity investment Investment income from trading financial assets during the holding 2667979.29 1243275.00 period Investment income from disposal of 134944244.25322743089.62 trading financial assets 3992025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text Investment income of other non- current financial assets during the -49372.45 6235327.82 holding period Investment income from government 1743563.912275761.53 bond reverse repurchase Profits from recognition termination of -3081940.11-10557467.86 financial assets Gain on debt restructuring -1679317.03 Total 820241804.25 302148808.75 XX. Supplementary Information 1. Breakdown of Non-recurring Gains and Losses for This Period □Applicable □ Not Applicable Unit: RMB Item Amount Note Gains and losses on disposal of non-current assets 499321216.61 Government grants recognized in profit or loss for the period (excluding government grants closely related to the Company's ordinary course of business in line with national policies received in accordance with 338545545.11 established standards and having a continuing impact on the Company's profit or loss) Profits and losses resulting from the changes in fair value for financial assets and financial liabilities held by non-financial enterprises and from 7539283.69 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 582864912.76 others Reversal of the receivables depreciation reserves for separate 4496227.70 impairment test Profits and losses on debt restructuring -32512136.39 Non-operating revenue and expenses other than the above 7457474.80 Other gains and losses items that fit the definition of non-recurring gains -7787445.32 and losses Less: impact of income tax 253249486.05 Impact of minority equity (after tax) 18332688.54 Total 1128342904.37 -- 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 4002025 Annual Report of Zhejiang Dahua Technology Co. Ltd. Full Text 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 10.42% 1.18 1.18 the Company Net profit attributable to common shareholders of the Company after 7.37% 0.84 0.84 deducting non-recurring gains and losses 3. Differences in Accounting Data Between Domestic and Overseas Accounting Standards (1) Differences of net profits and net assets in the financial reports disclosed according to the international accounting standards and Chinese accounting standards □ Applicable □Not Applicable (2) Differences of net profits and net assets in the financial reports disclosed according to the overseas accounting standards and Chinese accounting standards □ Applicable □Not Applicable (3) For explanation of differences in accounting data between domestic and overseas accounting standards the name of the overseas accounting firm shall be indicated if the audited data by an overseas accounting firm has been adjusted for difference.□ Applicable □Not Applicable Zhejiang Dahua Technology Co. Ltd.Legal representative: Fu Liquan April 18 2026 401