Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.2026 Semi-Annual Report of
Zhejiang Dahua Technology Co. Ltd.August 15 2026
This document is a translated version of the Chinese version 2026 Semi-Annual Report (“2026 年半年度报告全文”) and the published annual report in the Chinese version shall prevail. 1
The complete published Chinese 2026 Semi-Annual Report may be obtained at http://www.cninfo.com.cn.Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.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 (Accounting Officer) hereby declare and warrant that the
financial statements in the semi-annual report are authentic accurate
and complete.All directors attended the meeting of the Board of Directors for
deliberation of this semiannual report.During the reporting period there was no significant change in the
risks faced by the Company. The Company has been trying to identify
all kinds of risks and actively take countermeasures to avoid and
reduce the risks.
(1) Risk of technological upgrading: The intelligent Internet of Things
(IoT) industry is a typical technology-intensive industry. With the rapid
development of AI the accelerated iteration of industry technologies
has become even more pronounced and customers' scenario-based
and personalized demands are evolving rapidly as well. If the
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Company fails to accurately grasp the development trends of industry
technologies lags in its insight into the demands of market segments
or invests insufficient resources in R&D it will face the risk of
insufficient capacity for sustained innovation and of the
competitiveness of its core products falling behind the market. The
Company continues to increase its investment in R&D resources and
further strengthens research on core technologies in fields such as
multi-dimensional perception AI large models cloud big data
network communication cybersecurity and machine vision while
expanding its reserve pool of core technical talent so as to
consolidate its long-term competitiveness across multiple dimensions
– technology reserves product pre-research management efficiency
improvement and talent support – fully adapt to the broad and diverse
market demands of the future and ensure the sustained and steady
development of the Company's business.
(2) Risk of business model transformation: With the development of
technologies such as IoT artificial intelligence big data cloud
computing and network communication and the upgrading of
application modes of intelligent terminals business models in the IoT
era may bring impacts on the development of traditional industries. If
the Company fails to seize the opportunities arising from business
model transformation in a timely manner it may face the risk of losing
its competitive advantages in the market and of the existing market
landscape being restructured. The Company continues to monitor and
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study major changes in the global macroeconomy the industry and
technology fields conducts in-depth analysis of the underlying logic
of industrial development and makes forward-looking judgments on
the evolution of the intelligent IoT industry the continuous integration
of video perception technology and AI technology and the
diversification and uncertainty of customer demands so as to
consolidate its existing advantageous markets actively explore and
pilot new businesses and new business models and advance its
business and technology deployment.
(3) Risk of local government fiscal payment pressure: At present the
resolution of local government debt in some regions is still ongoing
and the divergence in payment capacity continues which may slow
the pace of demand release in related industries and lengthen project
implementation cycles thereby giving rise to operational uncertainties
such as slowercollection of capital for enterprises and delayed
customer payments. The Company has further improved its
receivables credit management system. On the basis of prudently
screening government-related cooperation projects and completing
comprehensive project risk assessments in advance the Company
has strengthened dynamic risk early warning across the entire
delivery and payment collection chain and has put in place tiered
contingency plans covering cash flow security and project delay
response effectively reducing its credit risk exposure.
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(4) Risk of international operations: The global economy is still in a
stage of cyclical adjustment and the Company faces multiple
uncertainties in conducting its international business: the
development of different economies diverges markedly and variables
in the macroeconomic environment continue to increase; technology
controls and regional trade protectionism continue to escalate with
requirements for local manufacturing and forward-deployed supply
chains further tightening in some countries and regions; and
regulatory requirements on cross-border data compliance carbon
tariffs ESG etc. are being progressively refined imposing higher
demands on the Company's cross-border compliance capability
building and supporting resource investment. The Company continues
to improve its risk management and control system and compliance
capability building conducts multi-currency trade and supply chain
control and dynamically adjusts its market strategies for different
regions proactively preventing and controlling various operational
risks while seizing market opportunities and building a more resilient
global risk hedging system.
(5) Exchange rate risk: In the first half of 2026 volatility in the global
foreign exchange market increased significantly and the US dollar
showed periodic weakness profoundly affecting the pricing logic of
cross-border trade and the income structure of foreign exchange
receipts and payments. The Company's export sales are currently still
settled mainly in US dollars and the scale of its overseas business is
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growing steadily. Exchange rate fluctuations of different currencies
may have a direct impact on the Company's profitability for the current
period. The Company reduces the uncertainties arising from exchange
rate fluctuations through the centralized management of foreign
exchange funds and the hedging of procurement payments.
(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 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 risk: With the advancement of the Company's
globalization strategy and proprietary brand strategy coupled with the
increasingly stringent territorial intellectual property (IP) protection
rules across regions worldwide the Company may face IP risks in
areas such as IP protection and patent infringement which may in turn
bring risks such as fluctuations in business relationships and the
public opinion environment an increase in legal proceedings and
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rising expenses and costs. The Company attaches great importance to
technological innovation and has established protection and
management mechanisms for intangible assets such as innovation
achievements its own brands and trade secrets continuously
accumulating advantageous IP assets. Meanwhile the Company has
further upgraded its IP compliance risk control system dynamically
tracks IP laws and regulations as well as the administrative and
judicial environment in the regions where its business operates and
continuously strengthens its capability to assess and respond to the
IP environment in different regions.
(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 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.
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The profit distribution plan approved at this meeting of the Board of
Directors is as follows: based on the share capital of 3269262074
shares as at August 14 2026 a cash dividend of RMB 3.06 (tax
inclusive) per 10 shares shall be distributed to all shareholders with
0 bonus shares (tax inclusive) issued and no capitalization of capital
reserve into share capital.
8Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Table of Contents
Section I Important Notes Table of Contents and De....2
Section II Company Profile and Key Financial Indic...17
Section III Management Discussion and Analysis ..... 20
Section IV Company Governance Environment and Soci...35
Section V Significant Events ........................38
Section VI Changes in Shares and Information about...66
Section VII Bond-Related Information ................74
Section VIII Financial Report .......................75
9Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Documents Available for Reference
(I) Financial statements signed and sealed by the Company's person in charge the chief accountant and the person
in charge of accounting department (accounting officer).(II) The original of all the Company's documents publicly disclosed during the reporting period and the original of the
announcement.(III) The reference documents are available at the company's Securities Investment Department for investors to review.
10Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Definitions
Refers
Item of Definition Definitions
To
Refers
Reporting Period From January 1 2026 to June 30 2026
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 Investment Refers
Zhejiang Dahua Investment Management Co. Ltd.Management To
Refers
Guangxi Zhicheng Dahua Zhicheng Guangxi Dahua Zhicheng Co. Ltd.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
Guizhou Huayi Guizhou Huayi Shixin Technology Co. Ltd.To
Refers
Guangxi Huacheng Guangxi Huacheng Technology Co. Ltd.To
Refers
Meitan Dahua Technology Guizhou Meitan Dahua Information Technology Co. Ltd.To
Refers
Inner Mongolia Zhimeng Inner Mongolia Dahua Zhimeng Information Technology Co. Ltd.To
Tianjin Dahua Information Tianjin Refers
Tianjin Dahua Information Technology Co. Ltd.Dahua To
Refers
Hunan Dahua Zhilong Dahua Zhilong Hunan Dahua Zhilong Information Technology Co. Ltd.To
Refers
Huaxiao Technology Zhejiang Huaxiao Technology Co. Ltd.To
11Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
Beijing Huayue
To Co. Ltd.Refers Shanghai Huashang Chengyue Information Technology Service
Shanghai Huashang
To Co. 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 Dahua Zhishu Information Technology Service Co.Chengdu Zhishu
To Ltd.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
Henan Dahua Henan Dahua Zhilian Information Technology Co. Ltd.To
Refers
Huajian Technology Zhejiang Huajian Technology Co. Ltd.To
Refers
Zhengzhou Dahua Zhian Zhengzhou Dahua Zhian Information Technology 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
Zhejiang Pixfra Zhejiang Pixfra Technology Co. Ltd.To
Refers
Yiwu Huaxi Yiwu Huaxi Technology Co. Ltd.To
12Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
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 Qingdao Dahua Ruifa Intelligent Internet of Things Technology
Qingdao Ruifa
To Co. 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
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
Refers
Dahua Hong Kong Dahua (HK) Limited Dahua Technology (HK) Limited
To
Refers
Dahua Europe Dahua Europe B.V.To
Refers
Dahua International Dahua Technology International Pte. Ltd.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
13Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
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
14Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
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. DE C.V.To
Refers
Dahua Japan Dahua Technology Japan 合同会社
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
15Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
Hirige Technology MaLaysia Hirige Technology MaLaysia Sdn.Bhd.To
Refers
Dahua Egypt Dahua Technology Egypt LLC
To
Refers DAHUA TECHNOLOGYAUH FOR SECURITY &
DAHUAAbu Dhabi
To SURVEILLANCE – SOLE PROPRIETORSHIP L.L.C.Refers
PixFra Hong Kong PIXFRA (HONG KONG) CO. LIMITED
To
Zhejiang Huaxiao Technology Co. Ltd. Refers
Wisualarm Technology (HK) Limited
(Wisualarm Technology) Hong Kong To
16Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section II Company Profile and Key Financial Indicators
I. Company Overview
Stock Abbreviation Dahua Technology Stock Code 002236
Stock Exchange Shenzhen Stock Exchange
Company Name in浙江大华技术股份有限公司
Chinese
Company Abbreviation in大华股份
Chinese (If any)
Company Name in Foreign
Zhejiang Dahua Technology Co. Ltd.Language (If any)
Legal Representative Fu Liquan
II. Contact Person and Contact Information
Secretary of the Board Representative of Securities Affairs
Name Wu Jian Li Sirui
No. 1399 Binxing Road Binjiang No. 1399 Binxing Road Binjiang
Contact Address
District Hangzhou City District Hangzhou City
Phone 0571-28939522 0571-28939522
Fax 0571-28051737 0571-28051737
E-mail zqsw@dahuatech.com zqsw@dahuatech.com
III. Other Information
1. Company Contact Information
Whether the Company's registered address the Company's office address and its postal code the Company's website
e-mail address etc. have changed during the reporting period
□ Applicable □Not Applicable
The company's registered address office address postal code website and email have not changed during the
reporting period; for details please refer to the 2025 annual report.
2. Information Disclosure and Location
Whether the information disclosure and location have changed during the reporting period
□ Applicable □Not Applicable
The stock exchange website and media names and URLs where the company's semi-annual report is disclosed have
not changed during the reporting period. For details please refer to the 2025 annual report.
3. Other Related Information
Whether there is any change in other related information
□ Applicable □Not Applicable
17Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
IV. Key Accounting Data and Financial Indexes
Whether the Company needs retroactive adjustment or restatement of accounting data in prior years or not
□ Yes □No
Increase/decrease ratio
Current Reporting
Same Period of Last Year compared with the same
Period
period of last year
Operating Revenue (RMB) 16703694265.38 15181329651.13 10.03%
Net profit attributable to
shareholders of the listed 2382974277.66 2475566750.61 -3.74%
Company (RMB)
Net profit attributable to
shareholders of the listed
company after deducting non- 1944242113.86 1795933411.70 8.26%
recurring gains and losses
(RMB)
Net cash flow generated by
-1107268584.24639122979.11-273.25%
operational activities (RMB)
Basic Earnings per Share
0.730.76-3.95%
(RMB/Share)
Diluted Earnings per Share
0.730.76-3.95%
(RMB/Share)
Weighted Average ROE 6.15% 6.72% -0.57%
Increase/decrease at the
End of This Reporting At the End of the Previous end of the current reporting
Period Year period compared with the
end of the previous year
Total Assets (RMB) 55586682699.81 52558604784.24 5.76%
Net Assets Attributable to
Shareholders of the Listed 39097449734.21 37757140211.25 3.55%
Company (RMB)
V. Differences in Accounting Data Under Domestic and Overseas Accounting
Standards
1. Differences of net profits and net assets in the financial reports disclosed according to the
international accounting standards and Chinese accounting standards
□ Applicable □Not Applicable
During the reporting period of the company there is no difference between the net profits and net assets in the
financial reports disclosed according to international accounting standards and Chinese accounting standards.
2. Differences between the net profits and net assets disclosed in the financial reports
prepared under overseas accounting standards and under 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.
18Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
VI. Non-recurring Gains and Losses Items and Their Amounts
□Applicable □ Not Applicable
Unit: RMB
Item Amount Note
Profits or losses from disposal of non-current assets (including the write-
3094070.44
off 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 national policies received in accordance with 108952464.65
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
15271971.03
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
405662605.16
others
Reversal of the receivables depreciation reserves for separate
570266.20
impairment test
Profits and losses on debt restructuring -13393578.78
Non-operating revenue and expenses other than the above 1762364.46
Less: impact of income tax 75985509.95
Impact of minority equity (after tax) 7202489.41
Total 438732163.80
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.Explanation of the circumstances under which items of non-recurring gains and losses enumerated in the No. 1
Explanatory Announcement on Information Disclosure for Companies Issuing Their Securities to the Public — Non-
recurring Gains and Losses are classified 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.
19Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section III Management Discussion and Analysis
I. Main Businesses of the Company during the Reporting Period
There is no major change in the Company's main businesses during the reporting period. Refer to the
2025 Annual Report for details.
II. Core Competitiveness Analysis
There is no major change in areas of core competitiveness during the reporting period. Refer to the
2025 Annual Report for details.
III. Main Business Analysis
In the first half of 2026 the external global environment was marked by intertwined changes and
disruptions geopolitical conflicts continued to cause turbulence risks of trade protectionism and
supply chain fragmentation increased and the recovery of the world economy slowed. The domestic
economy however demonstrated strong resilience and maintained an overall stable and improving
trend. As the 15th Five-Year Plan is implemented at a faster pace in key areas the intelligent
upgrading of industries continues to unlock broad market space. Coupled with the explosive
development of AI technologies and application innovation the resonance of the in-depth evolution of
large models the multi-dimensional convergence of IoT perception and the value restructuring of
data elements will continue to accelerate the large-scale implementation of scenarios in the intelligent
IoT field. At the technological frontier the "world model" as a new technological approach to artificial
intelligence is becoming a focus of research and deployment across the industry and AI R&D and
application are moving from the digital domain into the real physical world at an accelerating pace.Underpinned by its foundational capabilities in full-domain perception hardware interconnection and
scenario implementation the intelligent IoT industry is well positioned to become an important vehicle
for bridging digital and physical spaces.Against a backdrop of shifting domestic and international conditions and an accelerating wave of AI
the Company has pursued in-depth insight a firm strategic direction and solid execution continuously
strengthening the foundations for high-quality development. In terms of R&D anchored on the main
track and the "Big Video" strategy the Company has made every effort to advance the deep coupling
of frontier technological innovation with product implementation. Centering on the core technology
foundation of intelligent IoT it has made deployments in fields including multi-dimensional perception
artificial intelligence intelligent computing data communication and image-data fusion and continues
to develop software and hardware products of exceptional competitiveness. In the domestic market
the city business centered on three main lines namely addressing weaknesses building the
ecosystem and pursuing dedicated initiatives refining insight into value scenarios and reinforcing its
business deployment in key cities. Meanwhile the Company built an AI business assistant and
established an online technical marketing management system covering the full process from lead to
closing for key customers further improving the efficiency of coordination between marketing and
R&D. In the enterprise business the Company continued to gain insight into industry scenarios and
refine industry solutions focusing on key operational milestones and strengthening process
management thereby achieving effective year-on-year growth in several major incremental initiatives.In the distribution business the Company continued to pursue its strategy of local operation and
20Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
expansion into districts and counties guiding agents to extend their reach effectively and working with
service provider partners to jointly create best-selling products thereby achieving simultaneous
growth in the number of contracts signed and the scale of terminal activation. In overseas markets
the Company continued to extend its channels and helped partners improve their operations jointly
building a complete sales system covering three tiers of customers; it also focused on breakthroughs
in key global industry scenarios and advanced the "Big Video" strategy and innovation in new value
businesses safeguarding the long-term stable growth of its overseas business through the dual
drivers of business mix adjustment and technological innovation. In innovative businesses the
Company focused on the main track further strengthened the integration and complementarity
between innovative businesses and the Group's principal operations and opened up new room for
growth through diversified paths continuing to inject strong new momentum into the Company's
development.During the reporting period notwithstanding numerous domestic and international factors the
Company adhered to its management philosophy of refined management and high-quality
development achieving operating revenue of RMB 16.704 billion up 10.03% year on year and net
profit attributable to shareholders of the listed Company after deducting non-recurring gains and
losses of RMB 1.944 billion up 8.26% year on year.
1. Gathering momentum to drive a further leap in 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.The Company remains committed to effective growth pursuing revenue that generates profit and
profit that generates cash flow. In the first half of the year multiple provinces and regions and multiple
industries in China achieved simultaneous growth in their indicators overseas operations grew
steadily overall and emerging businesses grew rapidly laying a foundation for high-quality
development. The Company continued to explore the needs of high-value customers in depth and
firmly implemented its ecosystem development strategy deepening diversified cooperation
ecosystems spanning distribution government and enterprise key accounts and ISVs. It focused on
core proprietary technologies cultivated high-value intelligent IoT software and hardware products
and solutions and created products of exceptional quality together with supporting services. Taking
customer satisfaction as its ultimate goal the Company strengthened its service capabilities through
closed-loop problem management established a reputation for high-quality service continuously
improved customer satisfaction consolidated customer stickiness and enhanced its market
competitiveness.
2. Deepening business deployment by focusing on segmented scenarios for cities and
enterprises
Supported by various government policies on digital transformation the Company centered on the key
development directions of the 15th Five-Year Plan and increased its deployment in new industry
scenarios such as the digitalization of transport infrastructure natural resources smart water
conservancy and smart agriculture continuously refining industry-leading products and solutions to
address the differentiated needs of each industry. At the same time the Company accelerated the
application of large models in industry scenarios such as public security smooth traffic flow urban
governance and natural resources effectively improving the response efficiency of urban management
providing scientific data support for governance decision-making at all levels and helping governments
across regions advance digital transformation to achieve the development goals of precise governance
and efficient public service.The enterprise business moved further into the core links of enterprise production and operation
continuing to deepen its presence in key industries such as power petrochemicals industrial
21Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
manufacturing finance education and culture and tourism. The Company firmly advanced its dual-
engine strategy of scenario cameras plus large models and continued to deepen its digital and
intelligent upgrading service capabilities building an integrated cloud-edge-device digital intelligence
foundation that covers full-domain intelligent data perception multimodal intelligent computing and
cognition and all-dimensional scientific decision-making support. It also worked with ecosystem
partners along the industry chain to launch lightweight implementable and replicable products and
solutions for various industries effectively improving the quality and efficiency of the digital
transformation of the real economy.
3. Deepening cloud-edge-device collaboration to accelerate the vertical implementation of
large models
AI large models are shifting from the building of general-purpose capabilities to in-depth empowerment
and large-scale implementation in vertical industries. The Company has established a new paradigm of
flexible cloud-edge-device collaboration using model distillation and quantization to push lightweight
intelligence down to the edge thereby achieving millisecond-level response and an optimal solution for
computing cost. Driven by both multimodal fusion and RAG technology the models not only possess
cross-sensory understanding but also apply strong verification against industry knowledge bases to
suppress "hallucinations" and ensure that decisions are reliable and compliant. At the application level
large models have made breakthroughs in core fields such as smart energy industrial manufacturing
and urban governance: industrial scenarios now support "zero-shot" adaptive maintenance while urban
governance has made the leap from passive alerts to proactive risk simulation. Meanwhile through an
open development platform the Company has worked with partners to build an intelligent ecosystem
completing the critical transition from technology validation to value creation and efficiently linking the
physical and digital worlds with highly available low-cost intelligent solutions thereby leading a new
chapter of intelligence in the industry.
4. Upgrading the autonomous decision-making capabilities of agents to drive closed-loop
scenario-based business value
Building on existing digital systems the Company has introduced industry agents with capabilities in
perception and understanding task planning tool invocation and controlled execution. These agents
give customers' management personnel business personnel and frontline personnel stronger
capabilities in perception assessment and collaboration and within controllable business boundaries
drive the upgrading of operations toward proactive detection assisted decision-making and closed-loop
handling thereby further supporting efficient urban governance and the safe operation of enterprises.On the one hand capabilities for urban governance and enterprise operation have been upgraded. In
urban scenarios agents can integrate video audio IoT data and industry knowledge to understand the
time location subjects and process of an event proactively generating leads linking contingency plans
and assisting in handling thereby helping customers achieve more efficient urban governance. In
enterprise scenarios agents can combine business rules with on-site data to continuously analyze
safety hazards operational anomalies and management issues helping customers shorten response
times and improve the quality of their safety management and business operation. On the other hand
the utilization value of existing digital assets has been upgraded. Customers do not need to start over:
agents can be progressively integrated into existing video IoT platform and business systems
understanding the context of specific tasks invoking existing capabilities coordinating relevant
personnel and driving task execution within a controllable scope so that previously scattered data and
functions form a closed business loop thereby building a set of intelligent capabilities that can enter
real workflows and continuously generate business value.
22Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
5. Continuously incubating innovative businesses and expanding new growth drivers
In innovative businesses drawing on its in-depth understanding and accumulated experience in the
intelligent IoT field the Company will continue to explore and incubate emerging businesses
including machine vision and mobile robots thermal imaging automotive electronics smart security
inspection and smart fire control so as to continuously build engines for its medium- and long-term
development.
6. Hand in hand with partners to grow together and create an ecological environment of co-
construction symbiosis and mutual benefit
For the diverse and fragmented intelligent IoT market the Company firmly pursues its ecosystem
development strategy continuing in-depth collaborative exploration with partners across the entire
chain to build a comprehensive mutually beneficial service platform integrating technology products
solutions operation service and business management consulting so as to genuinely help partners
enhance their capabilities in scenario innovation and market expansion and achieve shared prosperity.In China the Company advanced its approach of local operation and expansion into districts and
counties: horizontally it continued to densify service touchpoints across regional markets and expand
its coverage radius; vertically it deepened the penetration of technical response and on-site service
capabilities to the district and county level building a healthy channel ecosystem for sustainable
development. It strengthened service support for system integration customers through measures
such as empowerment with digital tools and the release of industry resources while also connecting
internal resources across product R&D solutions and market channels and refining its tiered
operation system for value customers so as to precisely match the differentiated business needs of
customers at different levels. Overseas the Company anchored on high-value agents to drive
continued business penetration while further increasing the allocation of resources to downstream
customers and through multiple supporting measures such as systematic training and certification
and a focus on channel resources further consolidating its full-chain customer service support
capabilities.YoY rates in key financial indicators
Unit: RMB
Year-on-year
Current Reporting Same Period of Last
Increase or Reasons for changes
Period Year
Decrease
Operating Revenue 16703694265.38 15181329651.13 10.03% No major changes
Operating Cost 9511447670.13 8864525518.69 7.30% No major changes
Sales Expenses 2262652089.31 2163482109.43 4.58% No major changes
Administration
615684670.67 554682203.57 11.00% No major changes
Expenses
Mainly due to the impact of
exchange rate fluctuations;
foreign exchange losses
Financial Expenses 234252396.24 -408285432.92 157.37%
increased compared to the
same period of the
previous year.Income Tax Expense 224132416.42 270570745.94 -17.16% No major changes
R&D Investment 1999174974.29 1984405423.10 0.74% No major changes
Net Cash Flow Mainly due to increased-1107268584.24 639122979.11 -273.25%
Generated by expenditure on
23Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Operating Activities procurement and inventory
buildup in the current
period compared to the
same period of the
previous year.Net Amount of Cash
Flow Generated by -1126004557.33 -1252180226.45 10.08% No major changes
Investment Activities
Mainly due to increased
cash received from
Net Cash Flow discounting of notes and
Generated by 1040577350.84 -2227681253.87 146.71% letters of credit in the
Financing Activities current period compared to
the same period of the
previous year.Mainly due to increased
Net Increase in Cash
cash inflows from financing
and Cash -1384206324.91 -2737708517.17 49.44%
activities in the current
Equivalents
period.There are major changes in the composition or sources of profit of the Company in the current period
□ Applicable □Not Applicable
There is no major change in the composition or sources of profit of the Company in the current period
Composition of operating revenue
Unit: RMB
Current Reporting Period Same Period of Last Year
Year-on-year
Proportion in Proportion in Increase or
Amount Operating Amount Operating Decrease (Note 1)
Revenue Revenue
Total Revenue 16703694265.38 100.00% 15181329651.13 100.00% 10.03%
By Industry
AIoT Industry 16703694265.38 100.00% 15181329651.13 100.00% 10.03%
ByProduct
AIoT Products
13935660093.2683.43%11740932998.5377.34%18.69%
and Solutions
Including:
Software 997915436.95 5.97% 767210890.41 5.05% 30.07%
Business
Innovative
Business (Note 2602098202.02 15.58% 3022964624.87 19.91% -13.92%
2)
Others 165935970.10 0.99% 417432027.73 2.75% -60.25%
By Region
Domestic 8627526794.09 51.65% 7553259609.99 49.75% 14.22%
Overseas 8076167471.29 48.35% 7628070041.14 50.25% 5.87%
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 thermal imaging automotive
electronics smart security inspection smart fire control and storage media and other relevant businesses; the same
as below.
24Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Domestic Sub-Business Segment
Unit: RMB
Current Reporting Period Same Period of Last Year
Proportion Proportion in Year-on-year
in Domestic Domestic Increase or
Amount Amount
Operating Operating Decrease
Revenue Revenue
To G 2310168469.44 26.78% 1850842299.81 24.50% 24.82%
To B 4890197265.20 56.68% 4219444435.31 55.87% 15.90%
Others 1427161059.45 16.54% 1482972874.87 19.63% -3.76%
Total 8627526794.09 100.00% 7553259609.99 100.00% 14.22%
Industry product or region accounting for more than 10% of the Company's operating revenue or profit
□Applicable □ Not Applicable
Unit: RMB
Increase or
Increase or
Decrease of Increase and
Decrease of
Operating Decrease of
Gross Profit
Operating Gross Revenue Operating
Operating Cost Compared with
Revenue Margin Compared with Cost over the
the Same
the Same Same Period
Period Of Last
Period of Last of Last Year
Year
Year
By Industry
AIoT
16703694265.389511447670.1343.06%10.03%7.30%1.45%
Industry
By product
AIoT
Products
13935660093.267725769457.2744.56%18.69%17.24%0.69%
and
Solutions
Including:
Software 997915436.95 345673503.38 65.36% 30.07% 37.01% -1.76%
Business
Innovative
2602098202.021675677072.2535.60%-13.92%-12.70%-0.90%
Businesses
By Region
Domestic 8627526794.09 5265993259.91 38.96% 14.22% 8.22% 3.38%
Overseas 8076167471.29 4245454410.22 47.43% 5.87% 6.18% -0.15%
Domestic
Sub-
Business
Segment
To G 2310168469.44 1264548252.46 45.26% 24.82% 16.06% 4.13%
To B 4890197265.20 2976494014.64 39.13% 15.90% 10.37% 3.04%
Others 1427161059.45 1024950992.81 28.18% -3.76% -5.08% 0.99%
Where the statistical basis for the Company's main business data has been adjusted during the reporting period the
main business data for the most recent period presented have been restated on the adjusted basis as at the end of the
reporting period.□ Applicable □Not Applicable
25Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
IV. Non-Main Business Analysis
□ Applicable □Not Applicable
V. Analysis of Assets and Liabilities
1. Significant Changes in Assets Composition
Unit: RMB
End of This Reporting Period End of the Previous Year Proportion
Statement on
Proportion Proportion Increase Significant
Amount To Total Amount To Total and Changes
Assets Assets Decrease
Mainly due to
dividend
Monetary
7246202075.29 13.04% 8655402920.75 16.47% -3.43% distribution in
Fund
the current
period.This was mainly
due to higher
Accounts
14954700010.17 26.90% 15474088183.37 29.44% -2.54% collections
Receivable
during the
period.Contract No major
85384768.030.15%63320727.970.12%0.03%
Assets Changes
Mainly due to
increased
inventory
Inventory 8567734705.98 15.41% 6090171290.38 11.59% 3.82%
preparation in
the current
period.Investment No major
127535376.300.23%128753117.160.24%-0.01%
Property Changes
Long-term
No major
Equity 763386971.25 1.37% 725578108.27 1.38% -0.01%
Changes
Investment
No major
Fixed Assets 5988770084.01 10.77% 6136201592.87 11.67% -0.90%
Changes
Construction No major
3449439.340.01%7264951.140.01%0.00%
in Progress Changes
Right-of-use No major
282306316.630.51%272401498.240.52%-0.01%
Assets Changes
Mainly due to
increased
Short-term discounting of
2278237639.234.10%203714311.580.39%3.71%
Loan notes and letters
of credit in the
current period.Contract No major
1279174860.122.30%1142677702.112.17%0.13%
Liabilities Changes
Lease No major
169637533.360.31%165399173.650.31%0.00%
Liabilities Changes
26Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Other non-
3225491318.405.80%7095917123.7113.50%-7.70%
current Assets
Non-current No major
Assets Due Changes
4604885001.488.28%468560399.630.89%7.39%
within One
Year
2. Major Overseas Assets
□ Applicable □Not Applicable
3. Assets and Liabilities Measured at Fair Value
□Applicable □ Not Applicable
Unit: RMB
Changes
in Fair
At the Impairme Purchase Sales
Value Cumulative At the End
Beginning nt Loss Amount of Amount of
Gains and Fair Value Other of the
Item of the of the The the
Losses in Changes in Variations Reporting
Reporting Reportin Reporting Reporting
the Equity Period
Period g Period Period Period
Current
Period
Financial
assets
1. Trading
Financial
Assets
(Derivative 3091578 6676988. 1511917 1561814 310845171.90 70 02.45 21.46 41.59
Financial
Assets
Excluded)
2. Other Non-
Current 1989086 3971279 6100000 - 2996008
Financial 297.12 26.96 00.00
206083.0
9 (Note 1) 140.99
Assets
3. 1102535 4129457Receivables 8.36 (Note 1143829
Financing 053.89 2) 632.25
Financial
Assets 3400779 4038049 7611917 1561814 4108849 4450682222.91 15.66 02.45 21.46 5.27 914.83
Subtotal
Total of the 3400779 4038049 7611917 1561814 4108849 4450682
above Items 222.91 15.66 02.45 21.46 5.27 914.83
Financial
Liabilities
Other Variations
Note 1: The principal of other non-current financial assets was recovered in the current period.Note 2: Changes in the balance of receivables financing are mainly due to the net increase or decrease in bank
acceptance drafts in the current period.Are there any significant changes in the measurement attributes of the company's main assets during the reporting
period
27Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
□ Yes □No
4. Restrictions on Asset Rights as of the End Of the Reporting Period
As of June 30 2026 the company's restricted asset situation is as follows:
Item Book Value at the End of thePeriod (RMB) Cause of Restrictions
Monetary Fund 64638388.96 Guarantee Letter Security Deposit andOther Restricted Funds
Pledged notes used for issuing banker's
Notes Receivable and Receivables 952816775.49 acceptance endorsed or discounted butFinancing not yet matured or terminated and
recognized
Accounts Receivable 7810723.52 Factoring of Accounts Receivable
Fixed Assets 27491280.97 Specialized equipment leased out underoperating leases
Total 1052757168.94
VI. Investment Analysis
1. Overview
□Applicable □ Not Applicable
Investment in the Reporting Period Investment for the same Period of
Rate of Change
(RMB) Last Year (RMB)
47049902.932965513.851486.57%
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
4. Financial Assets Investment
(1) Securities Investment
□Applicable □ Not Applicable
Unit: RMB
Chan
ges in Cum
Fair ulativ
Profits
Openi Value e Purchas Sales Book
Abbrev Accou and
Variety Code Initial ng Gains Fair e Amoun Value Accou Capita
iation nting Losses
of of Invest Balanc and Value Amount t of the at the nting l
of Measu in the
Securit Securit ment e on Losse Chan of The Reporti End of Accou Sourc
Securit rement Report
ies ies Cost Book s in ges Reportin ng the nts e
ies Model ing
Value the in g Period Period Period
Period
Curre Equit
nt y
Period
Domes 68821 SMAR 51781 Fair 57054 6718 151094 15608 15706 58781 Tradin Equity
28Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
tic and 3 TSEN 725.3 Value 000.0 853.0 109.45 5532. 581.0 430.0 g Fund
Overs S 6 Measu 0 2 46 1 1 Financi
eas rement al
Stocks Assets
Domes Tradin
Fair
tic and g
92019 JADE 1704. Value 1704. Equity
Overs 1704.00 Financi
3 CHEM 00 Measu 00 Fund
eas al
rement
Stocks Assets
Jinke
Domes Tradin
Proper Fair
tic and - - g Debt
00065 ty 83071 Value 81954 68171
Overs 1378 13782 Financi Restru
6 Group .56 Measu .09 .96
eas 2.13 .13 al cturing
Co. rement
Stocks Assets
Ltd.
51866571356705156081569258851
151095
Total 500.9 -- 954.0 070.8 5532. 798.8 305.9 -- --
813.45
2994687
(2) Derivatives Investment
□Applicable □ Not Applicable
1) Derivatives Investments for Hedging Purposes During the Reporting Period
□Applicable □ Not Applicable
Unit: Ten Thousand RMB
Change Proportion of
s in Fair Investment
Amount
Value Amount Amount in
Cumulative Purchase
Types of Initial Gains Sold the
Opening Fair Value d During Closing
Derivatives Investment and During the Company's
Balance Changes in the Balance
Investment Amount Losses Reporting Net Assets
Equity Reporting
in the Period at End of the
Period
Current Reporting
Period Period
Foreign
Exchange 61664.84 61664.84 0.00%
Contract
Total 61664.84 61664.84 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
significantly during the reporting
the 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.
29Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Description of actual profit and loss During the reporting period the actual earnings amounted to RMB 3.001
during the reporting period million.The Company carried out foreign exchange hedging business appropriately
Descriptions of the effect of hedging as 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 details of risk analysis and control measures please refer to the
positions during the reporting period "Announcement on Conducting Foreign Exchange Hedging Transactions"
(including but not limited to market (Announcement No. 2026-022) which was disclosed by the Company on
risk liquidity risk credit risk April 18 2026.operational risk legal risk etc.)
The Company recognized and measured its foreign exchange hedging
business in accordance with Accounting Standards for Business Enterprises
Changes in market prices or product
No. 22 - Recognition and Measurement of Financial Instruments Accounting
fair value of invested derivatives
Standards for Business Enterprises No. 37 - Presentation of Financial
during the reporting period and the
Instruments and other relevant provisions. The fair values of foreign
analysis of the fair value of derivatives
exchange forward contracts were basically measured and recognized by
should disclose the specific methods
referencing the different parameters of the financial institutions based on the
used and the setting of related
then market conditions as well as the remaining term and duration of the
assumptions and parameters.transaction. During the reporting period gains on changes in fair value of
foreign exchange contracts were RMB 0.Litigation involved (if applicable) None
Disclosure date of board of directors'
announcement on the approval of April 18 2026
derivatives investment (if any)
2) Derivatives Investments for Speculative Purposes During the Reporting Period
□ Applicable □Not Applicable
The Company had no derivatives investments for speculative purposes during the reporting period.
5. Utilization of Raised Funds
□ Applicable □Not Applicable
There was no use of raised funds during the reporting period.VII. Major Assets and Equity Sales
1. Major Assets Sales
□ Applicable □Not Applicable
No major assets were sold during the reporting period of the Company.
2. Major Equity Sales
□ Applicable □Not Applicable
30Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
VIII. Analysis of Major Subsidiaries and Associates
□Applicable □ Not Applicable
Major subsidiaries and joint-stock companies with a net profit impact of over 10%.Unit: RMB
Company Company Registered Total Net Operating Operating Net
Main businesses
Name Type Capital Asset Assets Revenue Profit Profit
Technology
development
services
consultation
and transfer;
manufacturing
sales and
system services
of computer
hardware and
software;
manufacturing
Zhejiang
and sales of
Dahua
security devices 27158 27380
Vision Subsidiary 1306810 12730277 66874842 52412
mechanical and 35493 44391.Technolo Company 000.00 046.97 .32 754.19
electrical 0.07 41
gy Co.devices and
Ltd.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
Zhejiang computer
6224717306
Dahua Subsidiary hardware and 1885800 2828492 39860997 32381
19595.56046.
Zhilian Company software; 000.00 803.47 .31 234.58
5981
Co. Ltd. development
manufacturing
and marketing of
electronic
products and
electronic
components
safety
31Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
equipment and
communication
devices; leasing
of self-owned
houses;
warehousing
services;
catering
services; import
and export of
goods
Acquisition and disposal of subsidiaries during the reporting period
□Applicable □ Not Applicable
Method of acquisition and
Impact on overall production
Company Name disposal of subsidiaries during
management and performance
the reporting period
No significant impact on overall
Tianjin Huajian Technology Co. Ltd. Cancellation production operation and
performance
No significant impact on overall
Chengdu Dahua Wisdom Information
Cancellation production operation and
Technology Co. Ltd.performance
No significant impact on overall
Zhejiang Shuhang Intelligent Technology
Cancellation production operation and
Co. Ltd.performance
No significant impact on overall
DAHUA EUROPE B.V - SUCURSAL EM
Cancellation production operation and
ANGOLA(SU) LDA
performance
IX. Structured Entity Controlled by the Company
□ Applicable □Not Applicable
X. Risks and Countermeasures
During the reporting period there was no significant change in the risks faced by the Company. The
Company has been trying to identify all kinds of risks and actively take countermeasures to avoid and
reduce the risks.
(1) Risk of technological upgrading: The intelligent Internet of Things (IoT) industry is a typical
technology-intensive industry. With the rapid development of AI the accelerated iteration of industry
technologies has become even more pronounced and customers' scenario-based and personalized
demands are evolving rapidly as well. If the Company fails to accurately grasp the development
trends of industry technologies lags in its insight into the demands of market segments or invests
insufficient resources in R&D it will face the risk of insufficient capacity for sustained innovation and
of the competitiveness of its core products falling behind the market. The Company continues to
increase its investment in R&D resources and further strengthens research on core technologies in
fields such as multi-dimensional perception AI large models cloud big data network communication
cybersecurity and machine vision while expanding its reserve pool of core technical talent so as to
consolidate its long-term competitiveness across multiple dimensions – technology reserves product
pre-research management efficiency improvement and talent support – fully adapt to the broad and
32Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
diverse market demands of the future and ensure the sustained and steady development of the
Company's business.
(2) Risk of business model transformation: With the development of technologies such as IoT
artificial intelligence big data cloud computing and network communication and the upgrading of
application modes of intelligent terminals business models in the IoT era may bring impacts on the
development of traditional industries. If the Company fails to seize the opportunities arising from
business model transformation in a timely manner it may face the risk of losing its competitive
advantages in the market and of the existing market landscape being restructured. The Company
continues to monitor and study major changes in the global macroeconomy the industry and
technology fields conducts in-depth analysis of the underlying logic of industrial development and
makes forward-looking judgments on the evolution of the intelligent IoT industry the continuous
integration of video perception technology and AI technology and the diversification and uncertainty
of customer demands so as to consolidate its existing advantageous markets actively explore and
pilot new businesses and new business models and advance its business and technology
deployment.
(3) Risk of local government fiscal payment pressure: At present the resolution of local government
debt in some regions is still ongoing and the divergence in payment capacity continues which may
slow the pace of demand release in related industries and lengthen project implementation cycles
thereby giving rise to operational uncertainties such as slowercollection of capital for enterprises and
delayed customer payments. The Company has further improved its receivables credit management
system. On the basis of prudently screening government-related cooperation projects and completing
comprehensive project risk assessments in advance the Company has strengthened dynamic risk
early warning across the entire delivery and payment collection chain and has put in place tiered
contingency plans covering cash flow security and project delay response effectively reducing its
credit risk exposure.
(4) Risk of international operations: The global economy is still in a stage of cyclical adjustment and
the Company faces multiple uncertainties in conducting its international business: the development of
different economies diverges markedly and variables in the macroeconomic environment continue to
increase; technology controls and regional trade protectionism continue to escalate with
requirements for local manufacturing and forward-deployed supply chains further tightening in some
countries and regions; and regulatory requirements on cross-border data compliance carbon tariffs
ESG etc. are being progressively refined imposing higher demands on the Company's cross-border
compliance capability building and supporting resource investment. The Company continues to
improve its risk management and control system and compliance capability building conducts multi-
currency trade and supply chain control and dynamically adjusts its market strategies for different
regions proactively preventing and controlling various operational risks while seizing market
opportunities and building a more resilient global risk hedging system.
(5) Exchange rate risk: In the first half of 2026 volatility in the global foreign exchange market
increased significantly and the US dollar showed periodic weakness profoundly affecting the pricing
logic of cross-border trade and the income structure of foreign exchange receipts and payments. The
Company's export sales are currently still settled mainly in US dollars and the scale of its overseas
business is growing steadily. Exchange rate fluctuations of different currencies may have a direct
impact on the Company's profitability for the current period. The Company reduces the uncertainties
arising from exchange rate fluctuations through the centralized management of foreign exchange
funds and the hedging of procurement payments.
(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 there may still be risks of denial-of-service
33Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 risk: With the advancement of the Company's globalization strategy and
proprietary brand strategy coupled with the increasingly stringent territorial intellectual property (IP)
protection rules across regions worldwide the Company may face IP risks in areas such as IP
protection and patent infringement which may in turn bring risks such as fluctuations in business
relationships and the public opinion environment an increase in legal proceedings and rising
expenses and costs. The Company attaches great importance to technological innovation and has
established protection and management mechanisms for intangible assets such as innovation
achievements its own brands and trade secrets continuously accumulating advantageous IP assets.Meanwhile the Company has further upgraded its IP compliance risk control system dynamically
tracks IP laws and regulations as well as the administrative and judicial environment in the regions
where its business operates and continuously strengthens its capability to assess and respond to the
IP environment in different regions.
(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 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.XI. Development and Implementation of Market Value Management System and
Valuation Enhancement Plan
Whether the Company has established a market value management system.□Yes □No
Whether the Company has disclosed its valuation enhancement plan.□ Yes □No
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.XII. Implementation Status of the "Increase in Both Quality and Returns" Action
Plan
Has the Company disclosed the announcement of the "Increase in Both Quality and Returns" action plan
□Yes □No
For details please refer to the Company's Announcement on the Progress of the "Quality and Returns Double
Enhancement" Action Plan.
34Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section IV Company Governance Environment and Society
I. 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
II. Profit Distribution and Capital Reserve 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
3.06
included)
Share capital base of the distribution plan (shares) 3269262074
Cash dividend amount (RMB) (tax included) 1000394194.64
Amount of cash dividends distributed in other ways (such
20832480.00
as share repurchase) (RMB)
Total cash dividend (including other methods) (RMB) 1021226674.64
Distributable Profit (RMB) 27104358010.70
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 the share capital of 3269262074 shares a cash dividend of RMB 3.06 (tax inclusive) per 10 shares shall
be distributed to all shareholders for a total cash dividend of RMB 1000394194.64 (tax inclusive). This distribution
does not involve capitalization of capital reserve into share capital or issuance of bonus shares and the remaining
retained earnings shall be carried forward for future distribution. If the share capital of the Company entitled to profit
distribution changes prior to the implementation of the distribution plan due to conversion of convertible bonds share
repurchase exercise of equity incentive listing of new shares from refinancing or other reasons the Company shall
adjust the total dividend amount accordingly on the principle that the dividend per share remains unchanged.III. Implementation of the Company's Equity Incentive Plan Employee Stock
Ownership Plan or Other Employee Incentive Measures
□Applicable □ Not Applicable
1. Equity Incentive
During the reporting period the Company had no equity incentive plans in implementation.
35Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2. Implementation of Employee Stock Ownership Plan
□Applicable □ Not Applicable
All Effective Employee Stock Ownership Plans during the Reporting Period
As a percentage
Scope of Number of Total number of of the listed Source of funds for
Changes
employees employees shares held company's total plan implementation
share capital
Core backbone
personnel who
Employees' lawful
play an important
compensation self-
role in the
1030 19819601 None 0.61% raised funds and other
Company's
means permitted by
overall
laws and regulations
performance and
development
Shareholdings of directors and senior management in the employee stock ownership plan during the reporting period
□ Applicable □Not Applicable
Changes in asset management institutions during the reporting period
□ Applicable □Not Applicable
Changes in equity arising from disposal of shares by holders and other reasons during the reporting period
□ Applicable □Not Applicable
Exercise of shareholder rights during the reporting period
None
Other relevant circumstances and explanations of the employee stock ownership plan during the reporting period
□ Applicable □Not Applicable
Changes in the management committee of the employee stock ownership plan
□ Applicable □Not Applicable
The financial impact of the employee stock ownership plan on the listed company during the reporting period and the
relevant accounting treatment
□Applicable □ Not Applicable
In accordance with Accounting Standards for Business Enterprises No. 11 – Share-based Payment on each balance
sheet date during the vesting period the Company revises the estimated number of shares under the ESOP based on
the latest information such as the number of participants in the plan and the achievement of performance targets and
recognizes the services obtained in the current period in relevant costs or expenses and in capital reserve at the fair
value on the grant date of the ESOP.Termination of the employee stock ownership plan during the reporting period
□ Applicable □Not Applicable
3. Other Employee Incentive Measures
□Applicable □ Not Applicable
Adhering to the core principle of being "striving for the goal" the Company has launched an employee follow-on
investment plan for 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.
36Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
IV. Environmental Information Disclosure
Whether the listed company and its principal subsidiaries are included in the list of enterprises required to disclose
environmental information according to law.□ Yes □No
V. Social Responsibilities
For details see the Company's 2025 Environmental Social and Governance Report published on the CNINFO
(www.cninfo.com.cn).
37Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section V Significant Events
I. Commitments that Have Been Fulfilled by the Company's Actual Controller(s)
Shareholders Related Parties Acquirers the Company and the Relevant Parties
during the Reporting Period and Those that Have Not Been Fulfilled by the End of
the Reporting Period
□Applicable □ Not Applicable
Party Making Commitment Commitment
Commitments Content Time Performance
Commitments Type Period
From the date of
completion of Dahua
Technology's share
issuance to specific
subscribers (i.e. the first
trading day of the newly
issued shares) and for a
period of 36 months
thereafter the Company
shall not in any manner
transfer the Dahua
Technology shares it
subscribed for in this
Commitments
issuance nor shall
Made during China Mobile Commitment April
Dahua Technology
Initial Public Communications on restricted 14 36 months Completed
conduct a share
Offerings or Group Co. Ltd. shares 2023
repurchase of that
Refinancing
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.Whether the commitment is fulfilled on time Yes
Where the commitment is overdue the specific
reasons for not completing the performance and the Not Applicable
following work plan shall be explained in detail
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.
38Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
III. Illegal External Guarantees
□ Applicable □Not Applicable
No illegal external guarantees during the reporting period.IV. Appointment and Dismissal of Accounting Firms
Whether the semi-annual financial report has been audited
□ Yes □No
The semi-annual financial report has not been audited.V. Explanation of the Board of Directors on the "Non-standard Audit Report"
Issued by the Accounting Firm for the Reporting Period
□ Applicable □Not Applicable
VI. Statement by the Board of Directors on the "Non-standard Audit Report" of the
Previous Year
□ Applicable □Not Applicable
VII. Bankruptcy and Restructuring
□ Applicable □Not Applicable
No bankruptcy or reorganization events occurred during the reporting period.VIII. Lawsuits
Major lawsuits and arbitrations
□ Applicable □Not Applicable
There is no major lawsuit or arbitration during this reporting period.Other lawsuits
□ Applicable □Not Applicable
IX. Penalties and Rectification
□ Applicable □Not Applicable
There were no penalties or rectification matters during the reporting period.X. Integrity of the Company Its Controlling Shareholders and Actual Controllers
□ Applicable □Not Applicable
39Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
XI. Significant Related-party Transactions
1. Related Transactions Relevant to Daily Operations
□ Applicable □Not Applicable
There were no significant related-party transactions relating to the Company's ordinary course of business during the
reporting period.
2. Related Transactions in Acquisition or Sale of Assets or Equities
□ Applicable □Not Applicable
There were no related-party transactions arising from the acquisition or disposal of assets or equity interests during the
reporting period.
3. Related-party Transactions Arising from Joint Investments in External Entities
□ Applicable □Not Applicable
No such case as connected transactions of joint foreign investment during the reporting period.
4. Related-party Creditor's Rights and Debts
□ Applicable □Not Applicable
No such case as related credits and debts during the reporting period.
5. Transactions with Related Financial Companies
□ Applicable □Not Applicable
No deposit loan credit or other financial business between the Company and the related financial company and the
related parties.
6. Transactions between the Financial Company Controlled by the Company and The Related
Parties
□ Applicable □Not Applicable
There were no deposit loan credit or other financial services between the financial company controlled by the
Company and its related parties during the reporting period.
7. Other Significant Related-party Transactions
□Applicable □ Not Applicable
The Company convened the 21st Meeting of the 8th Board of Directors on April 17 2026 and the 2025 Annual
General Meeting of Shareholders on May 15 2026 at which the "Proposal on the Estimated Amount of Routine
Related-Party Transactions for 2026" was deliberated and approved. Based on business development and routine
operational needs the Company and its subsidiaries estimate that the total amount of routine related-party
transactions with related parties in 2026 will be RMB 2367.75 million (tax exclusive).Website for disclosing the interim report on significant related-party transactions
Announcement Name Disclosure Date Website for the Disclosure
Announcement on the forecast of daily
April 18 2026 CNINFO http://www.cninfo.com.cn
related-party transactions for 2026
40Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
XII. Significant Contracts and Performance
1. Matters on Trusteeship Contracting and Leasehold
(1) Matters on Trusteeship
□ Applicable □Not Applicable
No such case as custody during the reporting period.
(2) Contracting
□ Applicable □Not Applicable
No such case as contracting during the reporting period.
(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.Projects that generated profit or loss accounting for more than 10% of the Company's total profit for the reporting
period
□ Applicable □Not Applicable
There were no lease projects that generated profit or loss accounting for more than 10% of the Company's total profit
for the reporting period.
2. Significant Guarantees
□Applicable □ Not Applicable
Unit: Ten Thousand RMB
External guarantees from the Company and its subsidiaries (excluding guarantees to the subsidiaries)
Announcem
ent date of Guarant
Guaranteed disclosure of Guarante Actual Actual Type of ee for
party the e amount occurren guarantee guarant
Term of Due or related
guarantee ce date amount ee
guarantee not parties
cap or not
Total external guarantee limit Total actual amount of
approved during the external guarantees
reporting period (A1) incurred during thereporting period (A2)
Total approved external Total actual outstanding
guarantee limit as at the end external guarantee
of the reporting period (A3) balance as at the end ofthe reporting period (A4)
Company's guarantees to subsidiaries
Announcem
ent date of Guarant
Guaranteed disclosure of Guarante Actual Actual Type of Term of Due or ee for
party the e amount occurren guarantee guarantce date amount ee guarantee not
related
guarantee parties
cap or not
41Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Two years
Joint after the
2017.10.
1322000.00
liability maturity of
guarant the debts in No No
ee the master
contract
Two years
Joint after the
2018.09. 27243.60(USD 40 liability maturity of21 million) guarant the debts in
No No
ee the master
contract
From the
date of
expiration of
the
performance
period of
each debt in
the master
Joint contract
2023.07. 40000.00 liability
until three
24 guarant years after No No
ee the date ofexpiration of
the
performance
period of the
last due
master debt
under all
Zhejiang master
Dahua Vision April 18 788850. contracts
Technology 2026 00 Three years
Co. Ltd. from theexpiration
Joint date of the
2023.09. liability debtor's
26 33000.00 guarant performance No No
ee period asagreed in
the master
claim
contract
Three years
from the
next day
Joint after the
2024.03. expiry date
01100000.00
liability
guarant of each type No No
ee of financingbusiness
under the
master
contract
Two years
from the
expiration
Joint date of the
2024.04. 53000.00 liability debtor's01 guarant performance No No
ee period as
agreed in
the master
contract
2024.07.
2549500.00
Joint Three years
liability from the No No
42Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
guarant expiration
ee date of the
debtor's
performance
period as
agreed in
each
specific
financing
contract
Three years
from the
expiration
Joint date of the
2024.12. liability debtor's
13 20000.00 guarant performance No No
ee 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
Credit
Agreement
or of the
Joint accounts
2025.06. 40000.00 liability receivable10 guarant claims Yes No
ee granted by
the
Hangzhou
Branch of
China
Merchants
Bank or
three years
after the
advance
date of each
advance
within the
credit
extension
period.The
guarantee
period is
from the
Joint effective
2025.07. liability date of the
21 50000.00 guarant Maximum No No
ee AmountGuarantee
Contract
until three
years from
the
43Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
expiration
date of the
performance
period of
each debt
under the
Credit
Business
Agreement.The
guarantee
period is
three years
from the
expiration
date of the
period for
performance
of the
Joint debtor's
2025.07. 20000.00 liability obligations22 guarant under the No No
ee master
contract
and the
guarantee
period under
each
specific
business
contract is
calculated
separately.From the
date of
signing the
contract for
a single
credit
transaction
until three
Joint years after
2025.09. 90000.00 liability the08 guarant expiration of No No
ee the period
for
performance
of the
debtor's
obligations
under the
master
contract
The
guarantee
period is
from the
effective
Joint date of the
2025.09. 80000.00 liability specific19 guarant business No No
ee credit
contract to
three years
after the
expiration of
the debt
44Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
performance
period
stipulated in
the specific
business
credit
contract
(including
early
maturity of
the debt).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
Joint accounts
2026.06.
1040000.00
liability receivable
guarant claims No No
ee granted by
the
Hangzhou
Branch of
China
Merchants
Bank or
three years
after the
advance
date of each
advance
within the
credit
extension
period.Two years
from the
expiration
Joint date of the
2024.03. 30000.00 liability debtor's29 guarant performance No No
ee period as
agreed in
the master
Zhejiang contract
Dahua April 18 230000. The
Zhilian Co. 2026 00 guarantee
Ltd. period starts
from the
Joint expiration
2024.07.
2560000.00
liability date of the
guarant performance No No
ee period of
each
principal
debt under
the master
45Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
contract and
ends three
years after
the
expiration
date of the
performance
period of the
last due
principal
debt under
all master
contracts.Three years
from the
expiration
date of the
Joint debtor's
2024.07.
2516500.00
liability performance
guarant period as No No
ee agreed in
each
specific
financing
contract
Three years
from the
expiration
Joint date of the
2024.09. 10000.00 liability debtor's26 guarant performance No No
ee period as
agreed in
the master
contract.From the
effective
date of the
commitment
letter to
three years
after the
maturity
date of each
loan or other
financing
under the
Joint Credit
2025.06. 16000.00 liability
Agreement
10 guarant or of the Yes No
ee creditor'srights
granted by
the
Hangzhou
Branch of
China
Merchants
Bank or
three years
after the
advance
date of each
advance.
2025.08. Joint
25 20000.00 liability
2025.08.25-
guarant 2026.1.29
Yes No
46Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
ee
The
guarantee
period is
from the
effective
date of the
specific
business
credit
contract to
Joint three years
2025.09. liability after the
19 15000.00 guarant expiration of No No
ee the debtperformance
period
stipulated in
the specific
business
credit
contract
(including
early
maturity of
the debt).Joint
2026.01. 20000.00 liability 2026.01.30-30 guarant 2026.05.14 Yes No
ee
Joint
2026.05. 20000.00 liability 2026.05.15-15 guarant 2030.8.24 No No
ee
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
Joint or of the
2026.06. liability accounts
10 16000.00 guarant receivable No No
ee claimsgranted by
the
Hangzhou
Branch of
China
Merchants
Bank or
three years
after the
advance
date of each
advance
within the
credit
extension
47Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
period.From the
effective
date of the
commitment
letter to
three years
after the
maturity
date of each
loan or other
financing
under the
Joint Credit
2025.06. 4000.00 liability
Agreement
10 guarant or of the Yes No
ee creditor'srights
granted by
the
Hangzhou
Branch of
China
Merchants
Bank or
three years
after the
advance
date of each
advance.The
Zhejiang guarantee
Dahua period is
System April 18 35000.0 from the
Engineering 2026 0 effective
Co. Ltd. date of theMaximum
Amount
Guarantee
Joint Contract
2025.07. liability until three
21 5000.00 guarant years from No No
ee the
expiration
date of the
performance
period of
each debt
under the
Credit
Business
Agreement.Joint
2025.08.
25500.00
liability 2025.08.25-
guarant 2026.1.29 Yes No
ee
Two years
from the
expiration
Joint date of the
2025.09. liability period for
08 2000.00 guarant performance No No
ee of thedebtor's
obligations
as stipulated
in the credit
48Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
agreement
From the
date of
signing the
master
contract for
a single
credit
Joint transaction
2025.11. 3000.00 liability
until three
11 guarant years after No No
ee DahuaSystem
Engineering'
s debt
performance
period under
the master
contract
expires
Joint
2026.01. 500.00 liability 2026.01.30-30 guarant 2026.05.14 Yes No
ee
Joint
2026.05. liability 2026.05.15-
15 500.00 guarant 2030.8.24 No No
ee
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
Joint accounts
2026.06. 4000.00 liability receivable10 guarant claims No No
ee granted by
the
Hangzhou
Branch of
China
Merchants
Bank or
three years
after the
advance
date of each
advance
within the
credit
extension
period.Joint
Dahua April 18 70000.0 2025.04.
2043.27
Technology 22 (USD 3
liability 2025.04.22-
guarant 2026.04.21 Yes No
(HK) Limited 2026 0 million) ee
2025.01. 13621.80 Joint 2025.01.15- Yes No
49Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
15 (USD 20 liability 2026.01.14
million) guarant
ee
Joint
2025.07. 1162.07(EUR 1.5 liability 2025.07.01-01 million) guarant 2026.07.01
No No
ee
Joint
2026.01. 13621.80(USD 20 liability 2026.01.15-14 million) guarant 2027.01.14
No No
ee
2026.06.121.60
Joint
(HKD 1.4 liability 2026.06.11-11 million) guarant 2027.07.01
No No
ee
DAHUA Joint
TECHNOLO April 18 681.092000.00 2025.10. (USD 1 liability 2025.10.31-GY MEXICO 2026 31 million) guarant 2026.10.30
No No
S.A. DE C.V ee
August 12
1045.68 Joint 2020 – date2020.08.
12 (GBP 1.16
liability of signing of No No
Dahua million) guarant the
Technology April 18 3300.00 ee termination
UK Limited 2026 notice
2025.03.681.09
Joint
liability 2025.03.04-
04 (USD 1million) guarant 2026.03.03
Yes No
ee
Zhejiang Joint
Huayixin April 18 2025.08. liability 2025.08.25-
Technology 2026 0.00 25 200.00 guarant 2026.1.29 Yes No
Co. Ltd. ee
Joint
2025.08.
2510000.00
liability 2025.08.25-
guarant 2026.1.29 Yes No
ee
The
guarantee
period is
from the
effective
date of the
specific
business
credit
contract to
Zhejiang Joint three years
Fengshi April 18 15000.0 2025.09. 1000.00 liability
after the
Technology 2026 0 19 guarant expiration of No No
Co. Ltd. ee the debtperformance
period
stipulated in
the specific
business
credit
contract
(including
early
maturity of
the debt).Joint From the
2025.10. 3000.00 liability effective09 guarant date of this No No
ee commitment
50Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.Joint
2026.01. 10000.00 liability 2026.01.30-30 guarant 2026.05.14 Yes No
ee
Joint
2026.05. 10000.00 liability 2026.05.15-15 guarant 2030.8.24 No No
ee
Two years
from the
expiry date
Joint of the
2025.06.
272000.00
liability debtor's
guarant performance No No
ee period as
stipulated in
the master
Zhejiang contract.Huaxiao April 18
Technology 2026 2200.00
Joint
2025.08. liability 2025.08.25-
Co. Ltd. 25 200.00 guarant 2026.1.29 Yes No
ee
Joint
2026.01. 200.00 liability 2026.01.30-30 guarant 2026.05.14 Yes No
ee
Joint
2026.05.
15200.00
liability 2026.05.15-
guarant 2030.8.24 No No
ee
Joint
2025.08. 10000.00 liability 2025.08.25-25 guarant 2026.1.29 Yes No
Xi'an Dahua ee
Zhilian April 18 15000.0 The
Technology 2026 0 Joint guarantee
Co. Ltd. 2025.09. liability period is
19 2000.00 guarant from the No No
ee effectivedate of the
specific
51Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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).Joint
2026.01. 10000.00 liability 2026.01.30-30 guarant 2026.05.14 Yes No
ee
Joint
2026.05. 10000.00 liability 2026.05.15-15 guarant 2030.8.24 No No
ee
Joint
2025.06.
105000.00
liability 2025.06.10-
guarant 2026.06.09 Yes No
ee
Joint
Zhengzhou 2025.08. 3000.00 liability 2025.08.25-
Dahua Zhian 25 guarant 2026.1.29
Yes No
Information April 18 10000.0 ee
Technology 2026 0 Joint
Co. Ltd. 2026.01. 3000.00 liability 2026.01.30-30 guarant 2026.05.14 Yes No
ee
Joint
2026.05. 3000.00 liability 2026.05.15-15 guarant 2030.8.24 No No
ee
Joint
Chengdu 2025.06. 10000.00 liability 2025.06.10-Dahua Zhian 10 guarant 2026.06.09 Yes No
Information April 18 12000.0 ee
Technology 2026 0 Joint
Service Co. 2026.06. 10000.00 liability 2026.06.10-Ltd. 10 guarant 2027.06.09 No No
ee
Joint
2025.08. 5000.00 liability 2025.08.25-25 guarant 2026.1.29 Yes No
ee
The
guarantee
Changsha period is
Dahua April 18
Technology 2026 8000.00
from the
Joint effective
Co. Ltd. 2025.09.
192000.00
liability date of the
guarant specific No No
ee business
credit
contract to
three years
after the
52Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
expiration of
the debt
performance
period
stipulated in
the specific
business
credit
contract
(including
early
maturity of
the debt).Joint
2026.01. 5000.00 liability 2026.01.30-30 guarant 2026.05.14 Yes No
ee
Joint
2026.05. 5000.00 liability 2026.05.15-15 guarant 2030.8.24 No No
ee
From the
effective
date of this
contract
until three
years after
Joint the
2025.02. 2000.00 liability expiration21 guarant date of the Yes No
ee debt
performance
period under
the specific
credit under
the master
contract.Joint
2025.08. 500.00 liability 2025.08.25-25 guarant 2026.1.29 Yes No
ee
Zhejiang Joint
Pixfra April 18
Technology 2026 6000.00
2026.01.
30500.00
liability 2026.01.30-
guarant 2026.05.14 Yes No
Co. Ltd. ee
From the
effective
date of this
contract
until three
years after
Joint the
2026.3.1 2000.00 liability expiration1 guarant date of the No No
ee debt
performance
period under
the specific
credit under
the master
contract.Joint
2026.05. 4000.00 liability 2026.05.15-15 guarant 2030.8.24 No No
ee
Zhejiang April 18 2500.00 2025.06. 1500.00 Joint Two years No No
53Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Huafei 2026 27 liability from the
Intelligent guarant expiry date
Technology ee of the
CO. LTD. debtor's
performance
period as
stipulated in
the master
contract.Joint
2025.08. 1000.00 liability 2025.08.25-25 guarant 2026.1.29 Yes No
ee
Joint
2026.01. 1000.00 liability 2026.01.30-30 guarant 2026.05.14 Yes No
ee
Joint
2026.05. 1000.00 liability 2026.05.15-15 guarant 2030.8.24 No No
ee
Joint
2025.08. 200.00 liability 2025.08.25-25 guarant 2026.1.29 Yes No
ee
Joint
2025.08. 3000.00 liability 2025.08.25-25 guarant 2028.08.24 No No
ee
Joint
2025.12. 96.37 liability 2025.12.19-19 guarant 2028.12.16 No No
ee
Joint
2025.12. 1204.63 liability 2025.12.19-19 guarant 2026.12.31 No No
ee
Zhejiang Joint
Huajian April 18 6650.00 2026.01.Technology 2026 30 200.00
liability 2026.01.30-
guarant 2026.05.14 Yes No
Co. Ltd. ee
Joint
2026.05.
15500.00
liability 2026.05.15-
guarant 2030.8.24 No No
ee
Three years
from the
date of
expiry of the
Joint debtor's
2026.06. 1650.00 liability performance10 guarant period No No
ee stipulated in
each
specific
financing
contract
Dahua April 18 113.16
Joint
Technology 350.00 2023.12. (EUR liability 2023.12.07-
France SAS 2026 07 145700) guarant 2029.08.31
No No
ee
DAHUA 1702.73 Joint
EUROPE April 18 13000.0 2025.03. (USD 2.5 liability 2025.03.04-
B.V. 2026 0 04 million) guarant 2026.03.03
Yes No
ee
Dahua April 18 2000.00 2025.03. 340.55 Joint 2025.03.04- Yes No
54Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Technology 2026 04 (USD liability 2026.03.03
Italy S.R.L. 500000) guarant
ee
Two years
from the
expiry date
Joint of the
2025.06. 1500.00 liability debtor's27 guarant performance No No
ee period as
stipulated in
the master
contract.Joint
2025.08. 200.00 liability 2025.08.25-25 guarant 2026.1.29 Yes No
ee
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
Joint accounts
Zhejiang 2026.01. 1000.00 liability receivableHuaruijie April 18 21 guarant claims No No
Technology 2026 7000.00 ee granted by
Co. Ltd. the
Hangzhou
Branch of
China
Merchants
Bank or
three years
after the
advance
date of each
advance
within the
credit
extension
period.Joint
2026.01. 200.00 liability 2026.01.30-30 guarant 2026.05.14 Yes No
ee
Joint
2026.05.
151500.00
liability 2026.05.15-
guarant 2030.8.24 No No
ee
Three years
from the
Joint date of
2026.06. 1100.00 liability expiry of the10 guarant debtor's No No
ee performance
period
stipulated in
55Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
each
specific
financing
contract
Dahua Joint
Technology April 18 200.00 2025.04. 86.37 (SGD liability 2025.04.30-Singapore 2026 30 164177.83) guarant 2028.01.30 No No
Pte.Ltd. ee
Hangzhou
Xiaohua April 18
Technology 2026 100.00 No such case during the reporting period
CO. LTD.Zhejiang
Dahua
Security
Network April 182026 100.00 No such case during the reporting periodOperation
Service Co.Ltd.Yibin Huahui
Information April 18
Technology 2026 700.00 No such case during the reporting period
Co. Ltd.Guangxi
Dahua
Information April 182026 100.00 No such case during the reporting periodTechnology
Co. Ltd.Guangxi
Dahua April 18
Technology 2026 100.00 No such case during the reporting period
Co. Ltd.Anhui Dahua
Zhilian
Information April 182026 100.00 No such case during the reporting periodTechnology
Co. Ltd.Chengdu
Dahua
Zhilian April 18
Information 2026 200.00 No such case during the reporting period
Technology
Co. Ltd.Chengdu
Dahua
Zhishu
Information April 182026 100.00 No such case during the reporting periodTechnology
Service Co.Ltd.Chengdu
Zhichuang
Yunshu April 182026 100.00 No such case during the reporting periodTechnology
Co. Ltd.Hangzhou
Fuyang
Hua'ao April 182026 100.00 No such case during the reporting periodTechnology
Co. Ltd.Henan
Dahua
Zhilian April 18
Information 2026 100.00 No such case during the reporting period
Technology
Co. Ltd.
56Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang
Huaqi
Intelligent April 182026 1000.00 No such case during the reporting periodTechnology
Co. Ltd.Tianjin
Dahua
Information April 182026 50.00 No such case during the reporting periodTechnology
Co. Ltd.Yiwu Huaxi
Technology April 182026 100.00 No such case during the reporting periodCo. Ltd.Zhejiang
Dahua
Intelligent IoT April 18
Operation 2026 200.00 No such case during the reporting period
Service Co.Ltd.Zhejiang
Huakong April 18
Software 2026 100.00 No such case during the reporting period
Co. Ltd.Dahua
Technology April 182026 100.00 No such case during the reporting periodJapan LLC
Dahua
Technology April 18
Poland 2026 100.00 No such case during the reporting period
Sp.Zo.O.Dahua
Technology April 182026 100.00 No such case during the reporting periodHungary Kft
Dahua
Technology April 18
India Private 2026 1000.00 No such case during the reporting period
Limited
DAHUA
TECHNOLO
GY BRASIL
COMéRCIO
E
SERVI?OS April 182026 500.00 No such case during the reporting periodEM
SEGURAN?
A
ELETR?NIC
A LTDA
Dahua
Technology April 18
Middle East 2026 500.00 No such case during the reporting period
FZE
Dahua
Technology April 182026 100.00 No such case during the reporting periodPerú S.A.C
Dahua
Technology April 18
Australia 2026 100.00 No such case during the reporting period
PTY LTD
Dahua
Technology
South Africa April 182026 100.00 No such case during the reporting periodProprietary
Limited
Dahua April 18
Technology 2026 100.00 No such case during the reporting period
57Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Canada INC.Dahua
Guvenlik
Teknolojileri April 182026 200.00 No such case during the reporting periodSanayive
Ticaret A.S.Dahua
Technology April 182026 100.00 No such case during the reporting periodSRB d.o.o.Dahua
Technology April 18
Bulgaria 2026 100.00 No such case during the reporting period
EOOD
Dahua Iberia April 18
S.L. 2026 100.00 No such case during the reporting period
Dahua
Security April 18
Malaysia 2026 100.00 No such case during the reporting period
SDN. BHD.Dahua
Technology April 18
Kazakhstan 2026 100.00 No such case during the reporting period
LLP
PT. Dahua
Vision April 18
Technology 2026 100.00 No such case during the reporting period
Indonesia
Dahua
Technology
Korea April 182026 100.00 No such case during the reporting periodCompany
Limited
Dahua
Technology April 182026 100.00 No such case during the reporting periodS.R.L.Dahua Vision April 18
LLC 2026 100.00 No such case during the reporting period
Dahua
Technology April 18
New Zealand 2026 100.00 No such case during the reporting period
Limited
Dahua
Technology April 182026 300.00 No such case during the reporting periodGmbH
Dahua
Technology April 18
Colombia 2026 100.00 No such case during the reporting period
S.A.S.Dahua
Technology April 18 100.00 No such case during the reporting period
Panama S.A. 2026
Dahua
Technology April 182026 100.00 No such case during the reporting periodChile SpA
Dahua
Technology
Tunisia April 18
Limited 2026 100.00 No such case during the reporting period
Liability
Company
Dahua
Technology April 18
Kenya 2026 100.00 No such case during the reporting period
Limited
Dahua April 18
Technology 2026 100.00 No such case during the reporting period
58Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Pakistan
(private)
Limited
Dahua
Technology April 18
Morocco 2026 100.00 No such case during the reporting period
SARL
Dahua
Argentina April 182026 100.00 No such case during the reporting periodS.A.Dahua
Technology April 182026 100.00 No such case during the reporting periodCzech s.r.o.Dahua
Technology April 18
Denmark 2026 100.00 No such case during the reporting period
ApS
Dahua
Technology April 18
(Thailand) 2026 100.00 No such case during the reporting period
Co.LTD.Luoyang
Dahua Zhiyu
Information April 18 100.00 No such case during the reporting period
Technology 2026
Co. Ltd.Dahua
Technology April 18
Belgium B.V. 2026
100.00 No such case during the reporting period
VISMEXTEC
H DHM April 18
SERVICIOS 2026 100.00 No such case during the reporting period
S.A. DEC.V.Dahua
Technology April 18
International 2026 1000.00 No such case during the reporting period
Pte. Ltd.Dahua
Technology
Regional April 182026 400.00 No such case during the reporting periodHeadquarter
s
Nanyang
Dahua
Intelligent April 18
Information 2026 100.00 No such case during the reporting period
Technology
Co. Ltd.YIHUA
SERVICES April 18
(HK) 2026 200.00 No such case during the reporting period
LIMITED
Total actual amount of
Total guarantee limit for guarantees for
subsidiaries approved during 1239600.00 subsidiaries incurred 195793.40
the reporting period (B1) during the reporting
period (B2)
Total approved guarantee Total actual outstanding
limit for subsidiaries as at the guarantee balance for
end of the reporting period 1239600.00 subsidiaries as at the 891829.36
(B3) end of the reportingperiod (B4)
Subsidiaries' guarantees to subsidiaries
Guaranteed Announcem Guarante Actual Actual Type of Guarant
party ent date of occurren guarantee guarant
Term of Due or ee for
disclosure of e amount ce date amount ee guarantee not related
59Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
the parties
guarantee or not
cap
The
guarantee
period is
until
HUARAY
KOREA has
fulfilled its
responsibiliti
151.21 Joint es and
2024.12. (KRW liability obligations
09 343432000 guarant under each Yes No
) ee businessagreement.The specific
guarantee
period under
each
business
contract is
calculated
separately.The
guarantee
period is
until
HUARAY
KOREA has
fulfilled its
responsibiliti
Huaray es and
Technology 2024.12. 64.72 (KRW
Joint
April 18 147000000 liability
obligations
Korea 4000.00 13 guarant under each Yes No
Company 2026 ) ee business
Limited agreement.The specific
guarantee
period under
each
business
contract is
calculated
separately.The
guarantee
period is
until
HUARAY
KOREA has
fulfilled its
responsibiliti
Joint es and No
2025.04. 54.61 (KRW liability obligations
11 124020000 guarant under each
(partially
complete No) ee businessagreement. d)
The specific
guarantee
period under
each
business
contract is
calculated
separately.
2025.05. 82.95 (KRW Joint The No No
60Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
07 188386400 liability guarantee (partially
) guarant period is complete
ee until d)
HUARAY
KOREA has
fulfilled its
responsibiliti
es 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
responsibiliti
186.65 Joint es and
2025.06. (KRW liability obligations
No
25 423926000 guarant under each
(partially
complete No
) ee businessagreement. d)
The specific
guarantee
period under
each
business
contract is
calculated
separately.The
guarantee
period is
until
HUARAY
KOREA has
fulfilled its
responsibiliti
Joint es and No
2025.07. 12.93 (KRW liability obligations (partially
10 29356000) guarant under each No
ee business
complete
agreement. d)
The specific
guarantee
period under
each
business
contract is
calculated
separately.
124.25 Joint The No
2025.12. (KRW liability guarantee (partially
01 282198400 guarant period is No
) ee until
complete
HUARAY d)
61Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
KOREA has
fulfilled its
responsibiliti
es 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
responsibiliti
Joint es and No
2026.04. 15.63 (KRW liability obligations
15 35496000) guarant under each
(partially No
ee business
complete
agreement. d)
The specific
guarantee
period under
each
business
contract is
calculated
separately.The
guarantee
period is
until
HUARAY
KOREA has
fulfilled its
responsibiliti
549.68 Joint es and
2026.05. (KRW liability obligations
15 12484372 guarant under each No No
00) ee businessagreement.
The specific
guarantee
period under
each
business
contract is
calculated
separately.The
guarantee
Joint period is
2026.06. 97.41 (KRW until
30221232400
liability
guarant HUARAY No No) ee KOREA hasfulfilled its
responsibiliti
es and
62Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
obligations
under each
business
agreement.The specific
guarantee
period under
each
business
contract is
calculated
separately.Huaray
technology April 182026 1000.00 No such case during the reporting periodGmbH
Huaray
Technology April 18
Singapore 2026 3000.00 No such case during the reporting period
Pte.Ltd
Total actual amount of
Total guarantee limit for guarantees for
subsidiaries approved during 8000.00 subsidiaries incurred 662.72
the reporting period (C1) during the reporting
period (C2)
Total approved guarantee Total actual outstanding
limit for subsidiaries as at the guarantee balance for
end of the reporting period 8000.00 subsidiaries as at the 760.55
(C3) end of the reportingperiod (C4)
Total amount of company guarantees (namely sum of the previous three major items)
Total guarantee limit Total actual amount of
approved during the 1247600.00 guarantees incurred
reporting period (A1+B1+C1) during the reporting
196456.12
period (A2+B2+C2)
Total approved guarantee Total actual outstanding
limit as at the end of the 1247600.00 guarantee balance as at
reporting period (A3+B3+C3) the end of the reporting
892589.91
period (A4+B4+C4)
Total actual guarantees (i.e. A4+B4+C4) as a
percentage of the Company's net assets 22.83%
Among them:
Outstanding balance of guarantees provided for
shareholders the actual controller and their related
parties (D)
Outstanding balance of debt guarantees provided
directly or indirectly for guaranteed parties with an 842329.36
asset-liability ratio exceeding 70% (E)
Amount of total guarantees in excess of 50% of net
assets (F)
Total of the above three guarantee amounts (D+E+F) 842329.36
Notes on unexpired guarantees for which guarantee
obligations have arisen or joint and several liabilities
may be incurred during the reporting period (if any)
Notes on providing external guarantees in violation of
specified procedures (if any)
3. Entrusted Financing
□Applicable □ Not Applicable
Unit: Ten Thousand RMB
Balance of entrusted
Overdue outstanding
Product category Risk characteristics wealth management during
amount
the reporting period
63Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Financial products of
R4 108000.00
securities companies
Trust wealth management
R4 25000.00
products
Trust wealth management
R3 63000.00
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
recovery
Name of Actual
Trustee of profits
trustee Risk profit and
organizatio and
organizat chara Product Starting Termination Investment loss during
n (or Amount losses
ion (or cterist type date date direction the
trustee) during
name of ics reporting
type the
trustee) period
reporting
period
February Private equity
Guosen Asset 100000. 10 2021 fund products
Securitie Securities R4 Manag
00 February fixed income
s co. Company ement 09 2031 assets equity 39501.10
Unexpire
Ltd. Plan 8000.00 May 7 assets public
d
2026 equity hybrid
funds
Asset
management
plans financial
Yunnan Collecti products trust
Dividend
s
Internatio Trust ve July 22 July 22 plans private received
nal Trust company R4 Fund 25000.0 equity fund 508.29
Co. Ltd. Trust 0
2025 2026 products money quarterly
Plan market not yet
instruments due
trust industry
protection fund
10000.0 December22 2025 Bank deposits0 interbank
5000.00 January 15 certificates of2026 deposit bond
Yunnan 3000.00 January 29 reverse
Internatio Trust Single- 2026 repurchase
nal Trust company R3 investor
December Unexpire
trust 5000.00
May 11 22 2045 listed company 556.87 d
Co. Ltd. 2026 stocks Beijing
May 21 Stock Exchange20000.0
02026
new-share
subscription
trust industry
20000.0 June 24
02026
protection fund
Total 196000.00 -- -- -- 40566.26 --
4. Other Significant Contracts
□ Applicable □Not Applicable
There were no other significant contracts during the reporting period.
64Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
XIII. Registration form for Reception of Research Communication Interviews and
Other Activities during The Reporting Period
□Applicable □ Not Applicable
Main Content of
Index of the
Reception the Discussion
Reception Reception Reception Basic
Target Reception Objects And The
Time Location Method Information of
Type Information
Research
Provided
86 institutions The Company's CNINFO
including Huatai operating "Investor
Company
April 18 Telephone Securities and performance in Relations
Meeting Others
2026 communication CITIC Securities 2025 and Activity Record
Room
and 7 individual development Form on April
investors outlook for 2026 18 2026"
18 institutions
The Company's AI CNINFO
including Springs
technology "Investor
Company Capital and CICC
May 8–15 Field applications and Relations
Meeting Others Asset
2026 Investigation current business Activity Record
Room Management and
operation Form on May
6 individual
strategies etc. 8–15 2026"
investors
XIV. Explanation of Other Significant Matters
□ Applicable □Not Applicable
No such case as other significant events that need to be explained during the reporting period.XV. Major Events of the Company's Subsidiaries
□Applicable □ Not Applicable
During the reporting period the Company's controlling subsidiary Zhejiang HuaRay Technology Co. Ltd. submitted
application materials for an initial public offering and listing on the Main Board of the Hong Kong Stock Exchange and
the related materials were published on the Hong Kong Stock Exchange website (www.hkexnews.hk).
65Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section VI Changes in Shares and Information about
Shareholders
I. Changes in Shares
1. Changes in Shares
Unit: Share
Before the change Increase or decrease in the change (+ -) After the change
Share Shares
Bonu
s converted
Proporti s Proportio
Quantity newly from Others Subtotal Quantity
on share n
issue capital
s
d reserves
I. Shares with - -
117080607
Limited Sales 35.62% 29268 29268351 878122559 26.86%
4
Condition 3515 5
1. Shares
00.00%00.00%
Held by State
2. Shares
--
Held by State-
2931034008.92%293102931034000.00%
owned Legal
34000
Persons
3. Other
41988
Domestic 877702674 26.70% 419885 878122559 26.86%
5
Shares
Shares held
by domestic 0 0.00% 0 0.00%
legal persons
Shares held
by domestic 41988
87770267426.70%41988587812255926.86%
natural 5
persons
4. Foreign
00.00%00.00%
Shares
Including:
Shares held
00.00%00.00%
by overseas
legal persons
Shares held
by foreign
00.00%00.00%
natural
persons
II. Shares
2115949502751927519001239113951
Without 64.38% 73.14%
0001555
Restrictions
1. RMB 211594950 64.38% 27519 27519001 239113951 73.14%
66Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Ordinary 0 0015 5 5
Shares
2. Foreign
Shares Listed 0 0.00% 0 0.00%
in China
3. Foreign
Shares Listed
00.00%00.00%
in Foreign
Countries
4. Other 0 0.00% 0 0.00%
-
III. Total 328675557 100.00 326926207
17493-17493500100.00%
Shares 4 % 4
500
Reasons for changes in shares
□Applicable □ Not Applicable
1. During the reporting period in accordance with the repurchase plan the Company canceled the 17493500 shares
of the Company cumulatively repurchased through the dedicated securities account for repurchase by means of
centralized bidding transactions.
2. During the reporting period the lock-up commitment made by China Mobile Communications Group Co. Ltd. a
shareholder of the Company expired and the 293103400 shares held by it were released from lock-up.
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
The Company convened the 12th Meeting of the 8th Board of Directors on April 8 2025 and the 2024 Annual General
Meeting of Shareholders on April 21 2025 at which the Proposal on the Plan to Repurchase Company Shares was
deliberated and approved approving the Company to use self-owned funds to repurchase part of the Company's
shares by means of centralized bidding transactions for cancellation in accordance with the law to reduce the
registered capital.Transfer for changes in shares
□ Applicable □Not Applicable
The progress on share repurchase
□Applicable □ Not Applicable
The Company convened the 12th Meeting of the 8th Board of Directors on April 8 2025 and the 2024 Annual General
Meeting of Shareholders on April 21 2025 at which the Proposal on the Plan to Repurchase Company Shares was
deliberated and approved approving the Company to use self-owned funds to repurchase part of the Company's
shares by means of centralized bidding transactions for cancellation in accordance with the law to reduce the
registered capital with a total repurchase fund of no less than RMB 300 million (inclusive) and no more than RMB 500
million (inclusive) and a repurchase price of no more than RMB 27.26 per share (inclusive). The share repurchase
implementation period shall be within 12 months from the date the general meeting of shareholders approves this
repurchase plan. For details please refer to the "Announcement on the Scheme for the Repurchase of Shares"
disclosed by the Company on the CNINFO (http://www.cninfo.com.cn) on April 9 2025.As at April 17 2026 the Company had completed the implementation of this repurchase plan. During the
implementation of this repurchase plan the Company cumulatively repurchased 17493500 shares of the Company
through the dedicated securities account for repurchase by means of centralized bidding transactions representing
0.53% of the Company's then total share capital with a highest transaction price of RMB 19.81 per share a lowest
transaction price of RMB 15.16 per share and a total transaction amount of RMB 309953187 (excluding transaction
fees).During the reporting period the Company repurchased 1132200 shares of the Company through the dedicated
securities account for repurchase by means of centralized bidding transactions with a transaction amount of RMB
20832480 (excluding transaction fees). The Company completed the cancellation procedures for the 17493500
repurchased shares at China Securities Depository and Clearing Corporation Limited (CSDC) Shenzhen Branch on
April 23 2026. The number of shares canceled the completion date and the cancellation deadline all comply with the
relevant laws and regulations on the cancellation of repurchased shares.
67Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The progress in reduction of re-purchase shares by means of centralized competitive bidding
□ Applicable □Not Applicable
Effects of changes in shares on the basic earnings per share ("EPS") diluted EPS net assets per share attributable to
common shareholders of the Company and other financial indexes over the last year and last period
□Applicable □ Not Applicable
During the reporting period the cancellation of repurchased shares resulted in changes in the Company's share capital.For the impact on financial indicators such as basic earnings per share and diluted earnings per share for the most
recent year and the most recent period and net assets per share attributable to ordinary shareholders of the Company
please refer to "Section II IV. Key Accounting Data and Financial Indexes".Other contents that the Company considers necessary or are required by the securities regulatory authorities to
disclose
□ Applicable □Not Applicable
2. Changes in Restricted Stocks
□Applicable □ Not Applicable
Unit: Share
Number Of Number of Number of Number of
Shares With unlocked increased 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
Locked-up provisions on
shares of the
Fu Liquan 767901735 767901735 directors and management
senior of shares held
management by directors
and senior
management
Issuance of
China Mobile
restricted
Communicatio
293103400 293103400 0 shares to April 14 2026
ns Group Co.specific
Ltd.objects
According to
the relevant
Locked-up provisions on
shares of the
Chen Ailing 53447110 53447110 directors and management
senior of shares held
management by directors
and senior
management
According to
the relevant
Locked-up
provisions on
shares of
the
Wu Jun 51879664 51879664 directors and
management
senior
of shares held
management
by directors
and senior
68Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
management
According to
the relevant
Locked-up provisions on
shares of the
Wu Jian 1027901 47700 1075601 directors and management
senior of shares held
management by directors
and senior
management
According to
the relevant
Locked-up provisions on
shares of the
Zhao Yuning 739650 61200 800850 directors and management
senior of shares held
management by directors
and senior
management
According to
the relevant
Locked-up provisions on
shares of the
Zhu Jiantang 616069 47700 663769 directors and management
senior of shares held
management by directors
and senior
management
According to
the relevant
Locked-up provisions on
shares of the
Li Zhijie 514650 47700 562350 directors and management
senior of shares held
management by directors
and senior
management
According to
the relevant
Locked-up provisions on
shares of the
Xu Zhicheng 471150 47700 518850 directors and management
senior of shares held
management by directors
and senior
management
In accordance
with the
relevant
Other (former) Locked-up
provisions on
senior shares of
shareholding
management 1104745 12550 180435 1272630 directors and
management
and former senior
of directors
supervisors management
supervisors
and senior
management
Total 1170806074 293115950 432435 878122559 -- --
69Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
II. Issuance and Listing of Securities
□ Applicable □Not Applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: Share
Total Number of Preferred Shareholders
Total number of common
(If Any) (Refer to Note 8) Whose Voting
shareholders at the end of the 173315 0
Rights have been Recovered at the End
reporting period
of the Reporting Period
Shareholding situation of shareholders holding over 5% of shares or the top 10 shareholders (excluding shares lent through
refinancing)
Number of Number of Number of Pledges Markings Or
Changes
Nature of Shareh shares held shares held shares held Freezing
Name of in the
Sharehold olding at the end of with limited without
Shareholder reporting
er Ratio the reporting sales limited sales State of
period Quantity
period conditions condition Shares
Domestic Not
10238689876790173
Fu Liquan Natural 31.32% 0 255967245 Applicabl 0
05
Person e
State-
China Mobile Not
owned
Communications 8.97% 293103400 0 0 293103400 Applicabl 0
Legal
Group Co. Ltd. e
Person
Domestic
-
Zhu Jiangming Natural 4.15% 135661060 0 135661060 Pledged 23950000
8059300
Person
Hong Kong Overseas Not
1114219
Securities Clearing Legal 3.85% 125969768 0 125969768 Applicabl 0
Co. Ltd. Person e
Domestic Not
Chen Ailing Natural 2.18% 71262813 0 53447110 17815703 Applicabl 0
Person e
Domestic Not
Wu Jun Natural 2.12% 69172886 0 51879664 17293222 Applicabl 0
Person e
Not
National Social 1400000
Others 1.16% 38000000 0 38000000 Applicabl 0
Security Fund 103 0
e
Industrial Bank Co.Ltd. - Huaxia CSI
- Not
Robotic Trading
Others 0.89% 29197217 3253085 0 29197217 Applicabl 0
Open Index
8 e
Securities
Investment Fund
National Social Not
2169008
Security Fund Others 0.66% 21690089 0 21690089 Applicabl 0
9
Portfolio 413 e
Zhejiang Dahua
Technology Co. Ltd. Not
1981960
- 2026 Employee Others 0.61% 19819601 0 19819601 Applicabl 0
1
Stock Ownership e
Plan
70Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Strategic investors or general legal
persons becoming shareholders of
the top 10 common shares as a Not Applicable
result of the placement of new
shares (if any) (see Note 3)
Description of the association
Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company is not aware of
relationship or concerted action of
whether other shareholders are associated with each other or are persons acting in concert.above-mentioned 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 special accounts
Not Applicable
among the top 10 shareholders (if
any) (see Note 11)
Shareholding of the top 10 unlimited sale condition shareholders (excluding shares lent through refinancing and lock-up shares for
senior management)
Number of shares held without limited Type of Shares
Name of Shareholder sales condition at the end of the
reporting period Type of Shares Quantity
29310340
China Mobile Communications Group Co. Ltd. 293103400.00 RMB Common Stock
0
25596724
Fu Liquan 255967245.00 RMB Common Stock
5
13566106
Zhu Jiangming 135661060.00 RMB Common Stock
0
12596976
Hong Kong Securities Clearing Co. Ltd. 125969768.00 RMB Common Stock
8
National Social Security Fund 103 38000000.00 RMB Common Stock 38000000
Industrial Bank Co. Ltd. - Huaxia CSI Robotic
29197217.00 RMB Common Stock 29197217
Trading Open Index Securities Investment Fund
National Social Security Fund Portfolio 413 21690089.00 RMB Common Stock 21690089
Zhejiang Dahua Technology Co. Ltd. - 2026
19819601.00 RMB Common Stock 19819601
Employee Stock Ownership Plan
Chen Ailing 17815703.00 RMB Common Stock 17815703
Wu Jun 17293222.00 RMB Common Stock 17293222
Explanation of the relationships or concerted
actions between the top 10 unrestricted Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company is not
shareholders as well as between the top 10 aware of whether other shareholders are associated with each other or are
unrestricted shareholders and the top 10 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
71Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
□ Yes □No
None of the Company's top ten common shareholders or top ten common shareholders without limited shares agreed
on repurchase in the reporting period.IV. Shareholding Changes of Directors and Senior Management
□ Applicable □Not Applicable
There were no changes in the shareholdings of the Company's directors and senior management during the reporting
period. For details please refer to the 2025 Annual Report.V. Particulars about the Change to the Controlling Shareholders and Actual
Controllers
If the Company has previously disclosed that its actual controller was planning a change of control which has not yet
been completed please explain the progress of the change of control.□ Applicable □Not Applicable
Change of the controlling shareholders in the reporting period
□ Applicable □Not Applicable
No change has happened to the controlling shareholder in the reporting period of the Company
Change of the actual controller in the reporting period
□ Applicable □Not Applicable
No change has happened to the actual controller in the reporting period
72Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
VI. Preferred Stock Related Information
□ Applicable □Not Applicable
There are no preferred shares in the reporting period.
73Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section VII Bond-Related Information
□ Applicable □Not Applicable
74Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section VIII Financial Report
I. Audit Reports
Whether the semi-annual report has been audited
□ Yes □No
The semi-annual report has not been audited.II. Financial Statements
Units of financial reports in the notes: RMB
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co. Ltd.June 30 2026
Unit: RMB
Item Closing balance Opening balance
Current Asset:
Monetary Fund 7246202075.29 8655402920.75
Deposit Reservation for Balance
Loans To Banks and Other Financial
Institutions
Trading Financial Assets 310845141.59 309157871.90
Derivative Financial Assets
Notes Receivable 723027130.58 781468637.01
Accounts Receivable 14954700010.17 15474088183.37
Receivables Financing 1143829632.25 1102535053.89
Prepayments 1438576447.99 452738445.83
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves
Receivable
Other Receivables 334692010.47 278640285.60
Including: Interest Receivable
Dividends Receivable
Purchased Resale Financial Assets
Inventory 8567734705.98 6090171290.38
Among Them: Data Resources
Contract Assets 85384768.03 63320727.97
Held-for-sale Assets
Non-current Assets Due within One
4604885001.48468560399.63
Year
75Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Other Current Assets 739372362.19 578508611.11
Total Current Assets 40149249286.02 34254592427.44
Non-current Asset:
Granting of Loans and Advances
Creditor's Right Investment
Other Creditor's Right Investments
Long-term Accounts Receivable 439669957.96 406038709.81
Long-term Equity Investment 763386971.25 725578108.27
Other Equity Instrument Investments
Other Non-current Financial Assets 2996008140.99 1989086297.12
Investment Property 127535376.30 128753117.16
Fixed Assets 5988770084.01 6136201592.87
Construction in Progress 3449439.34 7264951.14
Productive Biological Asset
Oil And Gas Assets
Right-of-use Assets 282306316.63 272401498.24
Intangible Asset 541537889.34 556559379.70
Among Them: Data Resources
Development Expenditure
Among Them: Data Resources
Goodwill 6615294.18 6615294.18
Long-term Deferred Expense 113824381.26 77865093.40
Deferred Income Tax Assets 948838244.13 901731191.20
Other non-current Assets 3225491318.40 7095917123.71
Total non-current assets 15437433413.79 18304012356.80
Total Assets 55586682699.81 52558604784.24
Current Liabilities:
Short-term Loan 2278237639.23 203714311.58
Borrowing from the Central Bank
Borrowings from Banks and Other
Financial Institutions
Trading Financial Liabilities
Derivative Financial Liabilities
Notes Payable 3617876380.59 3659798751.88
Accounts Payable 5055359709.47 5132662730.78
Advances from Customers
Contract Liabilities 1279174860.12 1142677702.11
Proceeds from the Sale and
Repurchase of Financial Assets
Deposit Taking and Interbank Deposit
Receiving from Vicariously Traded
Securities
Receiving from Vicariously Sold
76Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Securities
Employee Benefits Payable 1285953503.48 2012428897.92
Taxes Payable 482608940.14 396827917.38
Other Payables 522404933.34 470148655.21
Including: Interest Payable
Dividends PAYABLE
Payable Service Charges and
Commissions
Reinsurance Accounts Payable
Liabilities Held for Sale
Non-current Liabilities Due within
250884953.64246856805.30
One Year
Other Current Liabilities 206448196.61 167754385.11
Total Current Liabilities 14978949116.62 13432870157.27
Non-current Liabilities:
Insurance Contract Reserves
Long-term Loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities 169637533.36 165399173.65
Long-term Payables
Long-term Employee Benefits
Payable
Estimated Liabilities 141172134.27 205416324.68
Deferred Income 162972703.08 170075423.69
Deferred Income Tax Liabilities 104539693.30 58695790.95
Other non-current Liabilities 49560813.08 52027750.30
Total non-current Liabilities 627882877.09 651614463.27
Total Liabilities 15606831993.71 14084484620.54
Owner's Equity:
Share Capital 3269262074.00 3286755574.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 6743031119.49 7233189509.62
Less: Treasury Share 709079918.27
Other Comprehensive Income 81541134.39 123340202.22
Special Reserve
Surplus Reserves 1647814866.50 1647814866.50
General Risk Reserve
Undistributed Profits 27355800539.83 26175119977.18
Total Equity Attributable to the Parent
39097449734.2137757140211.25
Company's Shareholders
Minority Shareholders' Equity 882400971.89 716979952.45
Total Owners' Equity 39979850706.10 38474120163.70
Total Liabilities and Shareholders'
55586682699.8152558604784.24
Equity
77Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Legal representative: Fu Liquan Person in charge of accounting work: Xu Qiaofen
Person in charge of the accounting institution: Zhu Zhuling
2. Balance Sheet of the Parent Company
Unit: RMB
Item Closing balance Opening balance
Current Asset:
Monetary Fund 2530640312.25 3869028263.97
Trading Financial Assets 310845141.59 309157871.90
Derivative Financial Assets
Notes Receivable 472630181.27 34287312.73
Accounts Receivable 3396242689.92 4804032357.71
Receivables Financing 736969512.59 1028367050.09
Prepayments 9091024.37 7535881.46
Other Receivables 17301142770.55 14419762765.91
Including: Interest Receivable
Dividends Receivable
Inventory 255874632.94 274292584.81
Among Them: Data Resources
Contract Assets 11386820.78 10404926.63
Held-for-sale Assets
Non-current Assets Due within One
3106139917.60265686734.81
Year
Other Current Assets 172148992.32 52150488.33
Total Current Assets 28303111996.18 25074706238.35
Non-current Asset:
Creditor's Right Investment
Other Creditor's Right Investments
Long-term Accounts Receivable 13217990.47 16867520.16
Long-term Equity Investment 8078619531.17 8059152598.16
Other Equity Instrument Investments
Other Non-current Financial Assets 2929068140.99 1922146297.12
Investment Property 19410340.02 17601790.19
Fixed Assets 1591169673.59 1641975098.18
Construction in Progress 2759582.93 1881260.65
Productive Biological Asset
Oil And Gas Assets
Right-of-use Assets 51347972.92 67685894.76
Intangible Asset 234844604.06 123926707.86
Among Them: Data Resources
Development Expenditure
Among Them: Data Resources
Goodwill
78Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Long-term Deferred Expense 26868717.90 35014336.52
Deferred Income Tax Assets
Other non-current Assets 2460137402.07 5471914876.79
Total non-current assets 15407443956.12 17358166380.39
Total Assets 43710555952.30 42432872618.74
Current Liabilities:
Short-term Loan 441565103.50 1598602.00
Trading Financial Liabilities
Derivative Financial Liabilities
Notes Payable 733401100.40 604401336.52
Accounts Payable 970020914.81 1107265780.24
Advances from Customers
Contract Liabilities 98582613.74 149069472.22
Employee Benefits Payable 874599544.56 1176600774.89
Taxes Payable 244589768.28 200782347.92
Other Payables 1667153018.16 1616965525.04
Including: Interest Payable
Dividends PAYABLE
Liabilities Held for Sale
Non-current Liabilities Due within
20034689.9230155334.29
One Year
Other Current Liabilities 16646478.35 30510459.35
Total Current Liabilities 5066593231.72 4917349632.47
Non-current Liabilities:
Long-term Loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities 27243218.35 34103799.33
Long-term Payables
Long-term Employee Benefits
Payable
Estimated Liabilities 1539208.61 47960042.35
Deferred Income 27524431.23 28380113.01
Deferred Income Tax Liabilities 104185399.89 55988750.49
Other non-current Liabilities 1902825.57 2643146.35
Total non-current Liabilities 162395083.65 169075851.53
Total Liabilities 5228988315.37 5086425484.00
Owner's Equity:
Share Capital 3269262074.00 3286755574.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 6460132685.73 6959326804.35
Less: Treasury Share 709079918.27
79Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Other Comprehensive Income
Special Reserve
Surplus Reserves 1647814866.50 1647814866.50
Undistributed Profits 27104358010.70 26161629808.16
Total Owners' Equity 38481567636.93 37346447134.74
Total Liabilities and Shareholders'
43710555952.3042432872618.74
Equity
3. Consolidated Income Statement
Unit: RMB
Item 2026 Semi-Annual 2025 Semi-Annual
I. Total Operating Revenue 16703694265.38 15181329651.13
Among them: Operating Revenue 16703694265.38 15181329651.13
Interest Income
Earned Premiums
Service Charge and Commission
Income
II. Total Operating Cost 14752976955.90 13272648542.15
Including: Operating Cost 9511447670.13 8864525518.69
Interest Expense
Service Charge and Commission
Expenses
Surrender Value
Net Claims Paid
Extract Net Reserve for Insurance
Liabilities
Policyholder Dividend Expense
Reinsurance Cost
Taxes and Surcharges 129765155.26 113838720.28
Sales Expenses 2262652089.31 2163482109.43
Administration Expenses 615684670.67 554682203.57
Research and Development Expense 1999174974.29 1984405423.10
Financial Expenses 234252396.24 -408285432.92
Including: Interest Expenses 20692904.09 -15628113.44
Interest Income 172481527.64 153226904.60
Add: Other Income 560520136.17 518903075.93
Investment Income (Mark "-" for
35366361.66597805651.04
Loss)
Including: investment income from
30863231.2010798379.54
joint ventures and joint ventures
Profits from recognition termination of
-13452010.79-8048848.07
financial assets at amortized cost
Exchange Earnings (Mark "-" for
Loss)
Profit of Net Exposure Hedging (Mark
80Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
"-" for Loss)
Incomes from changes in fair value
403804915.6679576958.11
(Mark "-" for loss)
Credit Impairment Losses (Mark "-"
-211480023.18-194543132.31
for Loss)
Asset Impairment Losses (Mark "-"
-69654747.67-43153204.66
for Loss)
Asset Disposal Income (Mark "-" for
1712594.87581021.39
Loss)
III. Operating Profit (Mark "-" for
2670986546.992867851478.48
Loss)
Add: non-operating Revenue 7324999.42 6414632.11
Less: non-operating Expense 5246149.73 5010225.72
IV. Total Profit (Mark "-" for total Loss) 2673065396.68 2869255884.87
Less: Income Tax Expense 224132416.42 270570745.94
V. Net Profit (Mark "-" for Net Loss) 2448932980.26 2598685138.93
(I) Classified by Operation Continuity
1. Net Profit as a Going Concern
2448932980.262598685138.93
(Mark "-" for Net Loss)
2. Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
(II) Classified by the Attribution of
Ownership
1. Net Profit Attributable to
Shareholders of Parent Company 2382974277.66 2475566750.61
(Mark "-" for Net Loss)
2. Minority Shareholders' Profit and
65958702.60123118388.32
Loss (Mark "-" for Net Loss)
VI. Other Comprehensive Income
-41811043.2128285767.16
Net of Tax
Other comprehensive income net of
tax attributable to the parent -41799067.83 27346089.38
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
-41799067.8327346089.38
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
81Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
-41799067.8327346089.38
differences of financial statements
7. Others
Net amount of other comprehensive
incomes after tax attributable to -11975.38 939677.78
minority shareholders
VII. Total Comprehensive Income 2407121937.05 2626970906.09
Total comprehensive income
attributable to the parent company's 2341175209.83 2502912839.99
owners
Comprehensive income attributable
65946727.22124058066.10
to minority shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.73 0.76
(II) Diluted Earnings per Share 0.73 0.76
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 2026 Semi-Annual 2025 Semi-Annual
I. Operating Revenue 4809026589.43 4269391151.91
Less: Operating Cost 554272691.32 649206598.17
Taxes and Surcharges 71174976.46 64148103.97
Sales Expenses 1041688717.64 921125546.36
Administration Expenses 277140066.04 288423327.35
Research and Development Expense 1499107659.33 1375243343.50
Financial Expenses -79447941.19 -92690029.77
Including: Interest Expenses 21455173.38 1114149.99
Interest Income 124345476.24 98803243.31
Add: Other Income 469667453.28 406482206.25
Investment Income (Mark "-" for
3176288.21787748139.44
Loss)
Including: investment income from
-2787232.70-8941186.68
joint ventures and joint ventures
Profits from Derecognition of
Financial Assets at Amortized Cost -3952666.67 -1014593.28
(Mark "-" for Loss)
Profit of Net Exposure Hedging (Mark
"-" for Loss)
Incomes from changes in fair value
403804915.6679882653.25
(Mark "-" for loss)
Credit Impairment Losses (Mark "-" -36433488.49 -23757046.57
82Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
for Loss)
Asset Impairment Losses (Mark "-"
-4688203.33-1263528.38
for Loss)
Asset Disposal Income (Mark "-" for
663193.02151171.60
Loss)
II. Operating Profit (Mark "-" for Loss) 2281280578.18 2313177857.92
Add: non-operating Revenue 827281.52 1206726.23
Less: non-operating Expense 1970254.24 1583168.48
III. Total Profit (Mark "-" for Total
2280137605.462312801415.67
Loss)
Less: Income Tax Expense 135115687.91 172442830.94
IV. Net Profit (Mark "-" for Net Loss) 2145021917.55 2140358584.73
(I) Net Profit as a Going Concern
2145021917.552140358584.73
(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 2145021917.55 2140358584.73
VII. Earnings per Share:
(I) Basic Earnings per Share 0.66 0.66
(II) Diluted Earnings per Share 0.66 0.66
83Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2026 Semi-Annual 2025 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from sales of merchandise and
18941265301.0217413245510.57
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 520403898.03 507911753.41
Cash received from other operating
840286517.10766327743.24
activities
Subtotal of cash inflow from
20301955716.1518687485007.22
operating activities
Cash paid for goods and services 14743185673.97 11466540352.42
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 4568837950.35 4403786062.60
Taxes and fees paid 1106901165.07 1021650225.82
Cash paid for other operating
990299511.001156385387.27
activities
Total cash outflow from operating
21409224300.3918048362028.11
activities
Net cash flow generated by operating -1107268584.24 639122979.11
84Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
activities
II. Cash Flow from Investment
Activities:
Cash arising from disposal of
6020701653.788171035464.96
investments
Cash received from investment
9984825.458808463.02
income
Net cash recovered from disposal of
fixed assets intangible assets and 13232819.72 1203271.90
other long-term assets
Net cash received from disposal of
71683294.0011700743.16
subsidiaries and other business units
Cash received from other activities
3000972.124715470.28
related to investing
Total cash inflow from investing
6118603565.078197463413.32
activities
Cash paid for the acquisition and
construction of fixed assets
313707735.56338555957.22
intangible assets and other long-
term assets
Cash paid for investment activities 6930900386.84 9068102084.24
Net increase in pledge loans
Net cash paid for acquisition of
subsidiaries and other business units
Cash paid for other investment
42985598.31
activities
Total cash outflow from investing
7244608122.409449643639.77
activities
Net amount of cash flow generated
-1126004557.33-1252180226.45
by investment activities
III. Cash flow from Financing
Activities:
Cash Arising from Absorbing
277910783.98118096409.17
Investments
Among them: cash received by
subsidiaries from minority 88039006.40
shareholder investments
Cash arising from borrowings 2876735610.23 701579505.58
Other received cash related to
financing activities
Subtotal of cash inflow from financing
3154646394.21819675914.75
activities
Cash paid for debt repayment 802228107.58 1195000000.00
Cash paid for distribution of
dividends profits or interest 1213805886.27 1495537757.94
payments
Among them: dividends and profits
paid by subsidiaries to minority
shareholders
Cash paid for other financing
98035049.52356819410.68
activities
Total cash outflow from financing
2114069043.373047357168.62
activities
Net Cash Flow Generated by
1040577350.84-2227681253.87
Financing Activities
IV. Impact of Exchange Rate -191510534.18 103029984.04
85Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Fluctuations on Cash and Cash
Equivalents
V. Net Increase In Cash and Cash
-1384206324.91-2737708517.17
Equivalents
Add: beginning balance of cash and
8553198661.7211061530816.28
cash equivalents
VI. Ending Balance of Cash and
7168992336.818323822299.11
Cash Equivalents
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2026 Semi-Annual 2025 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from sales of merchandise and
6295958501.533329909556.66
provision of services
Tax refund
Cash received from other operating
567889744.11494557156.96
activities
Subtotal of cash inflow from
6863848245.643824466713.62
operating activities
Cash paid for goods and services 797235136.65 785693404.04
Cash paid to and for employees 2254840928.75 2281520569.72
Taxes and fees paid 592547616.41 483430857.73
Cash paid for other operating
506049673.05540659886.74
activities
Total cash outflow from operating
4150673354.864091304718.23
activities
Net cash flow generated by operating
2713174890.78-266838004.61
activities
II. Cash Flow from Investment
Activities:
Cash arising from disposal of
6230346324.488486620259.96
investments
Cash received from investment
15803970.05105126.25
income
Net cash recovered from disposal of
fixed assets intangible assets and 9705170.98 2626116.67
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other activities
212272.12
related to investing
Total cash inflow from investing
6256067737.638489351502.88
activities
Cash paid for the acquisition and
construction of fixed assets
75771652.6266633826.99
intangible assets and other long-
term assets
Cash paid for investment activities 6669809201.98 8756686741.78
Net cash paid for acquisition of
subsidiaries and other business units
Cash paid for other investment
activities
Total cash outflow from investing 6745580854.60 8823320568.77
86Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
activities
Net amount of cash flow generated
-489513116.97-333969065.89
by investment activities
III. Cash flow from Financing
Activities:
Cash Arising from Absorbing
189871777.58118096409.17
Investments
Cash arising from borrowings 841565103.50 100000000.00
Other received cash related to
309401473.80926336823.82
financing activities
Subtotal of cash inflow from financing
1340838354.881144433232.99
activities
Cash paid for debt repayment 401598602.00 100000000.00
Cash paid for distribution of
dividends profits or interest 1204413790.94 1493095774.05
payments
Cash paid for other financing
3275499694.80788250094.46
activities
Total cash outflow from financing
4881512087.742381345868.51
activities
Net Cash Flow Generated by
-3540673732.86-1236912635.52
Financing Activities
IV. Impact of Exchange Rate
Fluctuations on Cash and Cash -11824199.32 -4416908.93
Equivalents
V. Net Increase In Cash and Cash
-1328836158.37-1842136614.95
Equivalents
Add: beginning balance of cash and
3812327543.965843167456.41
cash equivalents
VI. Ending Balance of Cash and
2483491385.594001030841.46
Cash Equivalents
87Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
7. Consolidated Statement of Changes in Owners' Equity
Current period amount
Unit: RMB
2026 Semi-Annual
Equity attributable to the parent company owners
Other Equity
Instruments Minority
Item Other Total
Share Pref Per
Less: Special General Sharehol
Capital Compreh Surplus Undistribute Owners'
Treasury Reserv Risk Others Subtotal ders'
Capital erre pet Oth Reserves ensive Reserves d Profits Equity
d ual Share e Reserve
Equity
ers Income
Sto Bon
cks ds
I. Balance at the 3286755 7233189 709079 123340 1647814 261751199 37757140 716979 3847412
End of Last Year 574.00 509.62 918.27 202.22 866.50 77.18 211.25 952.45 0163.70
Add: Change in
accounting
policies
Correction of
Errors in the
Previous Period
Others
II. Balance at the 3286755 7233189 709079 123340 1647814 261751199 37757140 716979 3847412
Start of This Year 574.00 509.62 918.27 202.22 866.50 77.18 211.25 952.45 0163.70
III. Increases or
----
Decreases in This 118068056 1340309 165421 1505730
17493504901583709079417990
Period (Mark "-" 2.65 522.96 019.44 542.40
0.0090.13918.2767.83
for Decreases)
(I) Total -
23829742723411756594672407121
Comprehensive 417990
7.66209.8327.22937.05
Income 67.83
(II) Owner - - - 20157751 994742 3010518
Contributions and 1749350 4900088 709079 8.52 92.22 10.74
88Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Capital 0.00 99.75 918.27
Reductions
1. Common stock - - -
169037108803902570761
invested by the 1749350 5225493 709079
1.8406.4008.24
owner 0.00 16.43 918.27
2. Capital
Invested by
Holders of Other
Equity
Instruments
3. Amount of
Share-based
Payments 3254041 32540416 114352 4397570
Recorded into 6.68 .68 85.82 2.50
Shareholders'
Equity
4. Others
---
(III) Profit
12022937112022931202293
Distribution
5.01715.01715.01
1. Appropriation
of Surplus
Reserves
2. Appropriation
of General Risk
Reserves
3. Distribution to - - -
Owners (or 120229371 1202293 1202293
Shareholders) 5.01 715.01 715.01
4. Others
(IV) Internal
Carry-forward of
Shareholders'
Equity
1. Capital
Reserves
89Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
Comprehensive
Income Carried
Forward To
Retained
Earnings
6. Others
(V) Special
Reserves
1. Withdrawal in
This Period
2. Used in This
Period
--
-
(VI) Others 149490.3 149490.3
149490.38
88
IV. Balance at the
326926267430318154111647814273558005390974498824003997985
End of This
074.00119.4934.39866.5039.83734.21971.890706.10
Period
Amount of the previous year
90Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Unit: RMB
2025 Semi-Annual
Equity attributable to the parent company owners
Other Equity
Instruments Minority
Item Other TotalLess: Special General Sharehol
Share Pref Per Capital Compreh Surplus Undistribut Owners'
erre pet Treasury Reserv Risk Others Subtotal ders'Capital Oth Reserves ensive Reserves ed Profits Equity
d ual Share e Reserve Equity
ers Income
Sto Bon
cks ds
I. Balance at the 3295629 7156767 564654 104358 1647814 24388130 36028046 114616 3717420
End of Last Year 733.00 235.86 524.63 460.57 866.50 399.78 171.08 2659.53 8830.61
Add: Change in
accounting
policies
Correction of
Errors in the
Previous Period
Others
II. Balance at the 3295629 7156767 564654 104358 1647814 24388130 36028046 114616 3717420
Start of This Year 733.00 235.86 524.63 460.57 866.50 399.78 171.08 2659.53 8830.61
III. Increases or
Decreases in - - -
5339210.273460100598910671697061184
This Period 12787479 412822 361050
7189.38030.66061.1142.79
(Mark "-" for .00 09.36 618.32
Decreases)
(I) Total
273460247556625029121240582626970
Comprehensive
89.38750.61839.99066.10906.09
Income
(II) Owner
--
Contributions 3745032. 32239762 157364 4797620
12787479412822
and Capital 37 .73 40.75 3.48.0009.36
Reductions
-----
1. Common 12787479 36781785 412822 8287055. 8287055.
91Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
stock invested by .00 .77 09.36 41 41
the owner
2. Capital
Invested by
Holders of Other
Equity
Instruments
3. Amount of
Share-based
Payments 40526818 40526818 157364 5626325
Recorded into .14 .14 40.75 8.89
Shareholders'
Equity
4. Others
---
(III) Profit
146957714695771469577
Distribution
719.95719.95719.95
1. Appropriation
of Surplus
Reserves
2. Appropriation
of General Risk
Reserves
3. Distribution to - - -
Owners (or 1469577 1469577 1469577
Shareholders) 719.95 719.95 719.95
4. Others
(IV) Internal
Carry-forward of
Shareholders'
Equity
1. Capital
Reserves
Transferred into
Capital (or Share
Capital)
92Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
Comprehensive
Income Carried
Forward To
Retained
Earnings
6. Others
(V) Special
Reserves
1. Withdrawal in
This Period
2. Used in This
Period
--
1594178.1594178.
(VI) Others 500845 4992509
3434
125.1746.83
IV. Balance at
32828427162106523372131704164781425394119370952157851123788032
the End of This
254.00446.57315.27549.95866.50430.44232.19041.217273.40
Period
93Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
8. Statement of Changes in Owners' Equity of the Parent Company
Current period amount
Unit: RMB
2026 Semi-Annual
Other Equity Instruments Other
Speci
Item Perpe ComprPreferr Capital Less: Treasury al Surplus Undistributed Other Total Owners'Share Capital tual Other ehensiv
ed Reserves Share Reser Reserves Profits s Equity
Bond s e
Stocks ve
s Income
I. Balance at the 3286755574.0 6959326804.3 1647814866.5 26161629808.1 37346447134.7
709079918.27
End of Last Year 0 5 0 6 4
Add: Change in
accounting policies
Correction of Errors
in the Previous
Period
Others
II. Balance at the 3286755574.0 6959326804.3 1647814866.5 26161629808.1 37346447134.7
709079918.27
Start of This Year 0 5 0 6 4
III. Increases or
Decreases in This
-17493500.00-499194118.62-709079918.27942728202.541135120502.19
Period (Mark "-" for
Decreases)
(I) Total
Comprehensive 2145021917.55 2145021917.55
Income
(II) Owner
Contributions and -17493500.00 -499044628.24 -709079918.27 192541790.03
Capital Reductions
1. Common stock
invested by the -17493500.00 -522549316.43 -709079918.27 169037101.84
owner
2. Capital Invested
94Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
by Holders of Other
Equity Instruments
3. Amount of Share-
based Payments
Recorded into 23504688.19 23504688.19
Shareholders'
Equity
4. Others
(III) Profit
-1202293715.01-1202293715.01
Distribution
1. Appropriation of
Surplus Reserves
2. Distribution to
Owners (or -1202293715.01 -1202293715.01
Shareholders)
3. Others
(IV) Internal Carry-
forward of
Shareholders'
Equity
1. Capital Reserves
Transferred into
Capital (or Share
Capital)
2. Surplus Reserves
Transferred into
Capital (or Share
Capital)
3. Surplus Reserves
Covering Losses
4. Carry-forward
retained earnings of
the variation of the
defined benefit plan
5. Other
95Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Comprehensive
Income Carried
Forward To
Retained Earnings
6. Others
(V) Special
Reserves
1. Withdrawal in
This Period
2. Used in This
Period
(VI) Others -149490.38 -149490.38
IV. Balance at the 3269262074.0 6460132685.7 1647814866.5 27104358010.7 38481567636.9
End of This Period 0 3 0 0 3
Amount of the previous year
Unit: RMB
2025 Semi-Annual
Other Equity Instruments Other
Item SpecialPreferr Perpetu Capital Less: Treasury Compreh Surplus Undistributed Other Total Owners'Share Capital Other Reserv
ed al Reserves Share ensive Reserves Profits s Equity
s e
Stocks Bonds Income
I. Balance at the 3295629733.0 6888762462.2 564654524.6 1647814866.5 24156989231.1 35424541768.2
End of Last Year 0 2 3 0 5 4
Add: Change in
accounting policies
Correction of Errors
in the Previous
Period
Others
II. Balance at the 3295629733.0 6888762462.2 564654524.6 1647814866.5 24156989231.1 35424541768.2
Start of This Year 0 2 3 0 5 4
III. Increases or --12787479.00 -7718167.10 670780864.78 691557428.04
Decreases in This 41282209.36
96Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Period (Mark "-" for
Decreases)
(I) Total
Comprehensive 2140358584.73 2140358584.73
Income
(II) Owner
-
Contributions and -12787479.00 -9256636.82 19238093.54
41282209.36
Capital Reductions
1. Common stock
-
invested by the -12787479.00 -36781785.77 -8287055.41
41282209.36
owner
2. Capital Invested
by Holders of Other
Equity Instruments
3. Amount of Share-
based Payments
Recorded into 27525148.95 27525148.95
Shareholders'
Equity
4. Others
(III) Profit
-1469577719.95-1469577719.95
Distribution
1. Appropriation of
Surplus Reserves
2. Distribution to
Owners (or -1469577719.95 -1469577719.95
Shareholders)
3. Others
(IV) Internal Carry-
forward of
Shareholders'
Equity
1. Capital Reserves
Transferred into
Capital (or Share
97Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
Comprehensive
Income Carried
Forward To
Retained Earnings
6. Others
(V) Special
Reserves
1. Withdrawal in
This Period
2. Used in This
Period
(VI) Others 1538469.72 1538469.72
IV. Balance at the 3282842254.0 6881044295.1 523372315.2 1647814866.5 24827770095.9 36116099196.2
End of This Period 0 2 7 0 3 8
98Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
III. Basic Information about the Company
Zhejiang Dahua Technology Co. Ltd. (hereinafter referred to as the "Company" or "this Company") was established as
a joint-stock company in June 2002 with the approval of the Zhejiang Provincial People's Government Work Leading
Group for Enterprise Listing under document Zhe Listing [2002] No. 18. It was formed through the overall restructuring
of the original Hangzhou Dahua Information Technology Co. Ltd. jointly initiated by five natural persons: Fu Liquan
Chen Ailing Zhu Jiangming Liu Yunzhen and Chen Jianfeng.On April 22 2008 the Company issued 16.8 million shares of common stock in RMB to the general public for the first
time under the approval document No. 573 [2008] Securities Regulatory Issuance issued by China Securities
Regulatory Commission ("CSRC"). It was listed on Shenzhen Stock Exchange on May 20 2008 with a registered
capital of RMB 66.8 million and the change registration filed with Administration for Industry and Commerce was
completed on May 23 2008. The Company's unified social credit code is 91330000727215176K. The Company falls
within the intelligent Internet of Things industry.As of June 30 2026 the Company had a total of 3269262074 issued shares with a registered capital of RMB
3269262074.00. Its registered office is located at No. 1187 Bin'an Road Binjiang District Hangzhou and its
headquarters address is No. 1399 Bixing Road Binjiang District Hangzhou.The main business activities of the Company are: research and development production and sales of AIoT products
and provision of video-centric AIoT solutions and operational services.The actual controllers of the Company are Fu Liquan and Chen Ailing.The financial statements were authorized for issue by the Board of Directors on 14 August 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
The financial statements have 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.V. Significant Accounting Policies and Accounting Estimates
The Company follows the principle of materiality when preparing and disclosing the financial statements 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
The financial statements comply with the Accounting Standards for Business Enterprises issued by the Ministry of
Finance and truthfully and fairly present in all material respects the consolidated and parent company only financial
position of the Company as of June 30 2026 as well as the consolidated and parent company only operating results
and cash flows of the Company for the six months then ended.
2. Accounting Period
The fiscal year is from January 01 to December 31 of the Gregorian calendar.
99Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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. The financial statements are presented in RMB.
5. Determination Method and Selection Basis of Importance Standard
□Applicable □ Not Applicable
Item Importance standards
Accounts receivable with significant single
Individual accruals of 0.5% of total assets at the end of the period
provision for bad debt reserves
Significant amount of recovered or reversed
Bad debts recovered or reversed of the individual receivables in the
bad debt provision of accounts receivable in
period in excess of 0.5% of the total assets at the end of the period
this period
Write-off of individual receivables in excess of 0.5 per cent of total
Write-off of important accounts receivable
assets at the end of the period
Important Projects under Construction Project investment budget in excess of 0.5% of total assets
Significant prepayments aged over 1 year Prepayments over 1 year in excess of 0.1% of total assets
Significant accounts payable aged over 1
Payables over 1 year in excess of 0.5% of total assets
year
Other significant payable aged over 1 year Other payables over 1 year in excess of 0.5% of total assets
Significant contractual liabilities over 1 year Contractual liabilities over 1 year in excess of 0.5% of total assets
Cash Flow from Significant Investment
Projects with cash flow exceeding 5% of total assets
Activities
Overseas operating entities with one of their total assets/total
Significant overseas operating entities
revenues/total profits exceeding 15% of the Group's
Non-wholly owned subsidiaries with one of their total assets/total
Important non-wholly owned subsidiaries
revenues/total profits exceeding 15% of the Group's
Income from investments in joint ventures or associates exceeding
Important joint ventures or associates
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.
100Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
7. Judgment Criteria for Control and Preparation Method of Consolidated Financial Statements
(1) Judgment criteria for control
The scope of consolidation of the consolidated financial statements is based on controlling interests and includes the
Company and all the subsidiaries. Control means that the Company has the power with respect to the investee to
obtain variable returns by engaging in relevant activities of the investee and has the ability to influence the amount of
its returns by applying its power with respect to the investee.
(2) Preparation method of consolidated financial statements
The Company treats the enterprise group as a single accounting entity and prepares the consolidated financial
statements in accordance with the unified accounting policy to reflect the Group's overall financial position operating
results and cash flow. The influence from the internal transactions between the Company and the subsidiaries or
between different subsidiaries shall be eliminated. Internal transactions show that impairment loss of relevant assets
shall be recognized as such loss in full. In preparing the consolidated financial statements where the accounting
policies and the accounting periods are inconsistent between the Company and subsidiaries the financial statements
of subsidiaries are adjusted in accordance with the accounting policies and accounting period of the Company.The shares belonging to minority shareholders in owner's equity the net profit or loss and the comprehensive income
of the subsidiary of the current period are presented separately under the owners' equity in the consolidated balance
sheet the net profits and the total comprehensive income in the consolidated income statement respectively. Where
losses attributable to the minority shareholders of a subsidiary of the current period exceed the minority shareholders'
interest entitled in the shareholders' equity of the subsidiary at the beginning of the period the excess shall be offset
against the equity of minority shareholders.* Acquisition of Subsidiaries or Business
For acquisition of subsidiaries or business due to business combination involving entities under common control during
the reporting period the operating results and cash flow of such subsidiaries or business from the beginning to the end
of the reporting period when the merger occurs are included in the consolidated income statement; and the opening
balance and comparative figures of the consolidated financial statements should be adjusted simultaneously as if the
consolidated reporting entity has been in existence since the beginning of the control by the ultimate controlling party.In connection with imposing control over the investee under common control due to additional investment and other
reasons the equity investment held before gaining the control of the combined party is recognized as relevant profit or
loss other comprehensive income and changes in other net assets at the later of the date of acquisition of the original
equity and the date when the combining and the merged parties are under common control and shall be written down
to the opening balance retained earnings or current profit or loss in the comparative reporting period.Additional subsidiaries or business due to business combination involving entities not under common control during
the reporting period will be included in the consolidated financial statements as of the date of acquisition on the basis
of the fair value of the identifiable assets liabilities or contingent liabilities determined on the date of acquisition.In connection with imposing control over the investee not under common control due to additional investment and
other reasons the equity of acquiree held before acquisition date shall be remeasured at the fair value of such equity
on the acquisition date and the difference between fair value and book value shall be recognized as investment
income in current period. Other comprehensive income that may later be reclassified into profit or loss and changes in
other owner's equity accounted by equity method contained in the acquiree's equity held before the acquisition date
shall be transferred to current investment gains on the date of acquisition.* Disposal of Subsidiaries or Business
a. General Treatment
When losing control of the investee due to partial disposal of the equity investment or any other reasons the
remaining equity investment is remeasured at fair value at the date in which control is lost. The sum of consideration
received from disposal of equity investment and the fair value of the remaining equity investment net of the difference
between the sum of the Company's previous share of the subsidiary's net assets recorded from the acquisition date or
combination date and the sum of goodwill is recognized in investment income in the period in which control is lost.Other comprehensive income that may later be reclassified into profit or loss and changes in other owner's equity
accounted by equity method in connection with the equity investment of the original subsidiaries shall be transferred to
the current investment gains when the control is lost.b. Disposal of Subsidiary Achieved by Stages
When the equity investment of subsidiaries is disposed of through multiple transactions until the control is lost such
multiple transactions are generally treated as a package deal if the terms conditions and economic impact of the
transactions to dispose of the subsidiary's equity investment satisfy one or more of the following conditions:
*These transactions are achieved at the same time or the mutual effects on each other are considered;
*A complete set of commercial results can be achieved with reference to the series of transactions as a whole;
*Occurrence of a transaction depends on the occurrence of at least one of the other transactions;
*One transaction recognized separately is not economical but it is economical when considered together with other
transactions.If multiple transactions are recognized as a package deal these transactions shall be subject to accounting treatment
as a transaction to dispose of the subsidiaries and lose control. The differences between the price on each disposal
and disposal of investment on the subsidiary's net assets shall be recognized in other comprehensive income in the
consolidated financial statements and included in profit or loss for the period when the control is lost.
101Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
If the transactions are not a package deal accounting treatment for partial disposal of equity investments of the
subsidiary without losing control shall be applied before control is lost. When the control is lost general accounting
treatment for disposal of a subsidiary shall be used.* Acquisition of Minority Equity of Subsidiaries
The Company shall adjust the share premium in the capital reserve of the consolidated balance sheet with respect to
any difference between the long-term equity investment arising from the purchase of minority interest and the net
assets attributable to the parent company continuously calculated on the basis of the newly increased share proportion
as of the acquisition date or date of combination or adjust the retained earnings if the share premium in the capital
reserve is insufficient for write-down.* Partial Disposal of Equity Investment in Subsidiaries without Losing Control
The difference between the disposal consideration and the share of net assets in the subsidiaries calculated from
disposal of long-term equity investment as of the date of acquisition or combination date shall be adjusted to share
premium in the capital reserve in the consolidated balance sheet. Adjustments shall be made to retained earnings in
the event that the share premiums in the capital reserves are not sufficient for write-down.
8. Classification of Joint Venture Arrangement and Accounting Treatment Methods for Joint
Operation
Joint venture arrangement is classified into joint operation and joint venture.Joint operation means the joint venture arrangement in which the joint venture parties have the assets and assume the
liabilities related to such arrangement.The Company recognizes the following items related to the share of interests in the joint operation:
(1) The assets separately held by the Company and assets jointly held as recognized based on the Company's share;
(2) The liabilities separately assumed by the Company and liabilities jointly assumed as recognized based on the
Company's share;
(3) Income from selling the share of the Company in the output of the joint operation;
(4) Income from joint operation of the sold output as recognized by the share of the Company;
(5) The expenses separately incurred and expenses jointly incurred as recognized based on the Company's share;
The Company adopts the equity method for the investment of the joint venture. For details refer to this section
Financial Report - V. Significant Accounting Policies and Accounting Estimates - 20. Long-term Equity Investment.
9. Recognition Criteria of Cash and Cash Equivalents
Cash means the cash on hand and deposits that are available for payment at any time of the Company.Cash equivalents mean the investments held by the Company which are short-term highly liquid easy to be converted
into known amounts of cash and have little risk of value change.
10. Conversion of Transactions And Financial Statements Denominated in Foreign Currencies
(1) Foreign currency transactions
Foreign currency transactions are translated into function currency at the spot exchange rate on the day when the
transactions occurred or the exchange rate determined by a systematic and reasonable method that is similar to the
spot exchange rate (hereinafter referred to as the approximate exchange rate of the spot exchange rate).The 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
All assets and liabilities items in balance sheet are translated based on spot exchange rate on the balance sheet date;
owners' equity items other than "undistributed profit" are translated at a spot exchange rate when incurred. 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.On disposal of overseas operation the translation difference as stated in the foreign currency financial statements
relating to overseas operation is transferred from owners' equity items to profit or loss for the current period.
11. Financial Instruments
A financial asset financial liability or equity instrument is recognized when the Company becomes a party to the
financial instrument contract.
102Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) Classification of the financial instruments
According to the Company's business model for management of the financial assets and the contractual cash flow
features of the financial assets the financial assets when initially recognized are classified as: financial assets at
amortized cost financial assets at fair value through other comprehensive income (debt instruments) and financial
assets at fair value through profit or loss.The financial assets which satisfy the following conditions and are not designated as financial assets at fair value
through profit or loss will be classified by the Company as financial assets at amortized cost:
* The business model is designed to collect the contractual cash flow;
* The contractual cash flow is only used to pay the principal and the interests based on the outstanding principal
amount.The financial assets which satisfy the following conditions and are not designated as financial assets at fair value
through profit or loss will be classified by the Company as the financial assets (equity instruments) at fair value through
other comprehensive income:
* The business model is designed to both collect the contractual cash flow and sell the financial assets;
* The contractual cash flow is only used to pay the principal and the interests based on the outstanding principal
amount.For non-trading investments in equity instruments the Company may at the time of initial recognition irrevocably
designate them as financial assets (equity instruments) at fair value through other comprehensive income. Such
designation is based on the individual investments and relevant investments fall within the definition of the equity
instrument from the perspective of the issuer.Except for the financial assets at amortized cost and financial assets at fair value through other comprehensive
income all the remaining financial assets are classified as the financial assets at fair value through profit or loss. At the
time of initial recognition the financial assets which should have been classified as financial assets at amortized cost
or financial assets at fair value through other comprehensive income can be irrevocably designated by the Company
as financial assets at fair value through profit or loss if the accounting mismatch can be eliminated or significantly
reduced.The financial liabilities when initially recognized are classified as: financial liabilities at fair value through profit or loss
and financial liabilities at amortized cost.Financial liabilities which meet one of the following conditions will be when initially measured designated as financial
liabilities at fair value through profit or loss:
* Such designation may be able to eliminate or significantly reduce the accounting mismatch;
* The portfolio of financial liabilities or the portfolio of financial assets and financial liabilities shall be subject to
management and performance evaluation on the basis of fair value according to the enterprise risk management or
investment strategy contained in the formal documentations and a report shall be made to the key management
personnel within the enterprise on this basis;
* Such financial liabilities shall contain embedded derivatives to be split separately.
(2) Recognition and measurement of financial instruments
* Financial assets at amortized cost
Financial assets at amortized cost include notes receivable accounts receivable other receivables long-term
receivables and creditors investment which shall be initially measured at fair value and the relevant transaction
expenses should be initially capitalized; The accounts receivable that do not contain material financing compositions
and those for which the Company decides to not take into account the financing compositions of no more than one
year shall be initially measured at the contract transaction price.The interest calculated by effective interest method during the holding period is recorded into the current profit and
loss.At the time of recovery or disposal the difference between the price obtained and the book value shall be included in
the current profit or loss.* Financial assets measured at fair value and whose changes are included in other comprehensive income (debt
instruments)
Financial assets measured at fair value with changes included in other comprehensive income (debt instruments)
include receivables financing and investments in other creditor's rights. They are initially measured at fair value and
the relevant transaction expenses are included in the initial carrying amount. These financial assets are subsequently
measured at fair value and the change in fair value other than the interest the impairment loss or profit and the profit
or loss on foreign exchange shall be included in other comprehensive income.Upon derecognition the cumulative profits or losses previously included in other comprehensive income shall be
removed from other comprehensive income and included in the profit or loss for the period.* Financial assets measured at fair value and whose changes are included in other comprehensive income (equity
instruments)
Financial assets at fair value through other comprehensive income (equity instruments) include investment in other
equity instruments. They are initially measured at fair value and the transaction expenses shall be initially capitalized.These financial assets are subsequently measured at fair value and the change in fair value shall be included in other
comprehensive income. The dividends obtained shall be included in the profit or loss for the period.Upon derecognition the cumulative profits or losses previously included in other comprehensive income shall be
removed from other comprehensive income and included in the carry-forward retained earnings.* Financial assets measured at fair value through profit or loss
103Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Financial assets at fair value through profit or loss include financial assets held for trading derivative financial assets
and other non-current financial assets. They are initially measured at fair value and the transaction expenses related
to them are included in the current profit or loss. These financial assets are subsequently measured at fair value and
the change in fair value shall be included in the profit or loss for the period.* Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and derivative financial
liabilities. They are initially measured at fair value and the transaction expenses related to them are included in the
profit or loss for the period. These financial liabilities are subsequently measured at fair value and the change in fair
value shall be included in the profit or loss for the period.Upon derecognition the difference between their book value and the consideration paid is included in the profit or loss
for the period.* Financial liabilities at amortized cost
Financial liabilities at amortized cost include short-term loans notes payable accounts payable other payables long-
term loans bonds payable and long-term payables. They are initially measured at fair value and the transaction
expenses shall be initially capitalized.The interest calculated by effective interest method during the holding period is recorded into the current profit and
loss.Upon derecognition the difference between the consideration paid and the book value of these financial liabilities is
included in the current profit or loss.
(3) Derecognition and transfer of financial assets
When one of the following conditions is met financial assets are derecognized by the Company:
* The contractual right to receive cash flows from financial assets is terminated;
* The financial assets have been transferred and nearly all the risks and rewards related to the ownership of the
financial assets have been transferred to the transferee;
The financial assets have been transferred and although the Company neither transfers nor retains all the risks and
rewards of ownership of the financial assets the Company retains no control of the financial assets;
If the Company modifies or renegotiates the contract with the counterparty which constitutes a substantial modification
the original financial assets will be derecognised and a new financial asset will be recognized according to the
modified terms.The financial assets when transferred will not be derecognized if the Company has retained nearly all the risks and
rewards related to the ownership of the financial assets.The substance-over-form principle shall be adopted while making judgment on whether the transfer of financial assets
satisfies the above conditions for termination of recognition.The transfer of financial assets can be classified into entire transfer and partial transfer. If the transfer of an entire
financial asset satisfies the conditions for termination of recognition the difference between the two amounts below
shall be recorded into profit or loss for the period:
* The book value of the financial asset transferred;
* The consideration received as a result of the transfer plus the accumulative amount of the change in fair value
previously recorded into the owners' equity (in cases where the transferred financial assets are financial assets
measured at fair value and whose changes are included in other comprehensive income (debt instruments)).If the partial transfer of financial assets satisfies the conditions for termination of recognition the overall book value of
the transferred financial asset shall be apportioned according to their respective relative fair value between the
recognition terminated part and the remaining part and the difference between the two amounts below shall be
recorded in profit or loss for the current period:
* The book value of the recognition terminated portion;
* The sum of consideration of the derecognised portion and the corresponding portion of accumulated change in fair
value previously recorded into owners' equity (in cases where the transferred financial assets are financial assets
measured at fair value and whose changes are included in other comprehensive income (debt instruments)).Financial assets will still be recognized if they fail to satisfy the conditions for termination of recognition with the
consideration received recognized as a financial liability.
(4) Derecognition of financial liabilities
When the current obligation under a financial liability is completely or partially discharged the recognition of the whole
or relevant portion of the liability is terminated; if the Company enters into an agreement with a creditor to replace the
existing financial liabilities with new financial liabilities and the terms of the new financial liabilities are substantially
different from those of the existing financial liabilities the existing financial liabilities are derecognized and the new
financial liabilities are 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.
104Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(5) Method of determining the fair values of financial assets and liabilities
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active
market. The fair value of a financial instrument that is not traded in an active market is determined by using a valuation
technique. The Company uses valuation techniques that are applicable under current conditions and supported by
sufficient available data and other information selects inputs that are consistent with the characteristics of the asset or
liability as considered by market participants in transactions involving such asset or liability and prioritizes the use of
relevant observable inputs. Unobservable inputs are used under the circumstances that the relevant observable inputs
cannot be obtained or are not practicable to obtain.
(6) Test method and accounting treatment for impairment of financial assets
The Company uses impairment accounting for the financial assets at amortized cost the financial assets at fair value
through other comprehensive income (debt instruments) and the financial guarantee contracts on the basis of the
expected credit loss.Taking into the reasonable and well-grounded information including past matters current situation and prediction of
future economic conditions the Company calculates the possibly weighted amount of the present value of the
difference between the cash flows receivable under the contract and the cash flows expected to be received taking
the risk of default as the weight and recognizes the expected credit loss.The Company will always measure the loss provision for the accounts receivable and contract assets arising from the
transactions regulated by "Accounting Standard for Business Enterprises No.14 — Revenue" whether they contain
material financing compositions or not by the amount of the expected credit loss throughout the duration.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 considers that the credit
risk of the financial instrument has significantly increased unless there is conclusive evidence that the credit risk of the
financial instrument has not significantly increased since initial recognition.If the financial instrument carries low credit risk at the balance sheet date the Company believes that the credit risk of
this financial instrument is not significantly increased upon initial recognition.If the credit risk of this financial instrument has been significantly increased upon initial recognition the Company
measures its loss provision in accordance with the amount equivalent to the expected credit loss of the financial
instrument throughout the duration; if the credit risk of this financial instrument is not significantly increased upon initial
recognition the Company will measure the loss provision of this financial instrument by the amount of its expected
credit loss in the 12 months to come. The increased or reversed amount of the loss provision resulting therefrom is
included in the current profit or loss as the impairment loss or profit. For financial assets (debt instruments) at fair value
through other comprehensive income the loss provision is recognized in other comprehensive income and the
impairment loss or gain is included in current profits or losses without reduction in the book value of the financial asset
as stated in the balance sheet.If there are objective evidences showing that a certain receivable has been subject to credit impairment the Company
will accrue impairment provision for the receivable on the individual asset basis.Except for the above-mentioned accounts receivable for which an individual provision for bad debts has been made
the Company divides other financial instruments into several combinations based on their credit risk characteristics
and determines expected credit losses on the basis of the combinations. The Company's combination categories and
determination basis of expected credit losses for notes receivable accounts receivable accounts receivable financing
other receivables contract assets (including contract assets presented in other non-current assets) and long-term
receivables (including current portion of long-term receivables presented in current portion of non-current assets) 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
Type of Notes the entire extension based on historical credit loss
Receivables Financing experience in combination with current conditions
and predictions of future economic conditions.The expected credit loss is calculated by default
risk exposure and the expected credit loss rate for
Accounts receivable other receivables Aging combination the entire extension based on historical credit loss
experience in combination with current conditions
and predictions of future economic conditions.The expected credit loss is calculated by default
Accounts receivable other receivables Affiliated combined risk exposure and the expected credit loss rate forthe entire extension based on historical credit loss
experience in combination with current conditions
105Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
and predictions of future economic conditions.The expected credit loss is calculated by default
Contract assets (including contract risk exposure and the expected credit loss rate for
assets presented in other non-current Nature of the funds the entire extension based on historical credit loss
assets) experience in combination with current conditions
and predictions of future economic conditions.Long-term receivables (including The expected credit loss is calculated by default
current portion of long-term receivables risk exposure and the expected credit loss rate for
presented in current portion of non- Nature of the funds the entire extension based on historical credit loss
current assets) experience in combination with current conditionsand predictions of future economic conditions.
12. Notes Receivable
Refer to this section Financial Report - V. Significant Accounting Policies and Accounting Estimates - 11. Financial
Instruments
13. Accounts Receivable
Refer to this section Financial Report - V. Significant Accounting Policies and Accounting Estimates - 11. Financial
Instruments
14. Receivables Financing
Refer to this section Financial Report - V. Significant Accounting Policies and Accounting Estimates - 11. Financial
Instruments
15. Other Receivables
Refer to this section Financial Report - V. Significant Accounting Policies and Accounting Estimates - 11. Financial
Instruments
16. Contract Assets
(1) Recognition method and criteria of contract assets
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between
performance obligations and customer payments. Considerations that the Company has the right to collect for
commodities transferred or services provided to customers (and such right depends on other factors than passing of
time) are presented as contract assets. The contract assets and contract liabilities under the same contract are
presented in net amount. The Company separately presents the right possessed to collect consideration from
customers unconditionally (only depending on the passing of time) as accounts receivable.
(2) Determination method and accounting treatment method for the expected credit loss of contract assets
Refer to this section Financial Report - V. Significant Accounting Policies and Accounting Estimates - 11. Financial
Instruments
17. Inventory
(1) Category of inventory
Inventories are classified as raw materials work-in-progress commodity stocks contract performance cost and
materials commissioned for processing.The inventories are initially measured at cost which comprises the cost of purchase cost of conversion and other
expenditure incurred in bringing the inventories to their present location and condition.
(2) Determination of cost
Cost of inventories is determined using the weighted average method.
(3) Basis for the determination of net realizable value and different type of inventories
At the balance sheet date inventories are measured at the lower of cost and net realizable value. When the cost of
inventories is higher than their net realizable value reserve for stock depreciation shall be accrued. The net realizable
value means the amount after deducting the estimated cost of completion estimated selling expenses and relevant
taxes from the estimated selling price of inventories in the daily activities.
106Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Net realizable value of held-for-sale commodity stocks such as finished goods goods-in-stock and held-for-sale raw
materials during the normal course of production and operation shall be determined by their estimated sales less the
related selling expenses and taxes; the net realizable value of material inventories which need to be processed
during the normal course of production and operation shall be determined by the amount after deducting the
estimated cost of completion estimated selling expenses and relevant taxes from the estimated selling price of
finished goods; the net realizable value of inventories held for execution of sales contracts or labor contracts shall be
calculated on the ground of the contracted price. If an enterprise holds more inventories than the quantity stipulated in
the sales contract the net realizable value of the exceeding part shall be calculated on the ground of general selling
price.If the Company accrues the provision for impairment of inventories on a combination basis the combination categories
and determination basis as well as the basis for determination of the net realizable value of different types of inventory
are as follows:
Combination Categories of Determination Basis for Combination Basis for the Determination of Net
Inventories Realizable Value
Raw materials Categories of Inventories Estimated selling price of inventories -
Work-in-progress Categories of Inventories Estimated costs until completion -
Finished goods Categories of Inventories Estimated selling expenses - Related
Contract Performance Costs Categories of Inventories taxes
If the factors influencing the write-down of the inventory value have disappeared resulting in higher net realizable
value of inventories than their book value after the reserve for stock depreciation is accrued a reversal shall apply in
the amount of reserve for stock depreciation previously accrued and the reserved amount shall be included in the
current profit or loss.
(4) Inventory system
The perpetual inventory system is adopted.
(5) Amortization of low-value consumables and packaging materials
* Low-value consumables are amortized using the immediate write-off method;
* Packaging materials are amortized using the immediate write-off method.
18. Holding Assets for Sale
(1) Recognition criteria and accounting treatment
An asset of which the book value is recovered mainly through sale (including exchange of non-monetary asset of a
commercial nature) rather than non-continuous use of a non-current asset or disposal group is classified as a holding
asset for sale.A non-current asset or disposed group is classified by the Company as holding for sale if it meets the following criteria
at the same time:
* Immediate sale could be made under the current circumstances in accordance with the convention of selling such
kind of assets or disposal groups in similar transactions;
* Selling is highly likely to occur i.e. the Company has made a resolution on a sales plan and obtained confirmed
purchase commitments and the sales is predicted to be completed within 1 year. If required by relevant provisions that
the disposal shall only be made after approval by the relevant competent authority or supervisory department of the
Company such approval has been obtained.If the book value of the non-current assets (excluding financial assets deferred income tax assets and assets to
constitute payroll payable) or disposal groups classified as holding for-sale assets is higher than the net amount after
deducting the selling expenses from the book value the book value will be written down to the net amount after
deducting the selling expenses from the fair value and the amount written down will be recognized as the impairment
loss of assets and included in the current profit or loss. At the same time the impairment provision for holding for-sale
assets will be accrued.
(2) Recognition criteria and presentation of discontinued operations
Termination of business is a separately distinguishable constituent part that satisfies one of the following conditions
and that has been disposed of or classified by the Company as held for sale:
* This constituent part represents an independent primary business or a separate principal operating area;
* This constituent part is part of an associated plan to dispose an independent primary business or a separate
principal operating area;
* This constituent part is a subsidiary acquired for resale.The profit or loss from going concern and the profit or loss from discontinued operation will be separately presented in
the income statement. The operating profit or loss and the profit or loss from disposal including impairment loss and
reversed amount from discontinued operation will be presented as the profit or loss from discontinued operation. For
the discontinued operation presented in the current period the Company will present the information previously
presented as the profit or loss from going concern as the profit or loss from discontinued operation during the
comparable accounting period.
107Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
19. Long-term Receivables
Refer to this section Financial Report - V. Significant Accounting Policies and Accounting Estimates - 11. Financial
Instruments
20. Long-term Equity Investments
(1) Joint control or significant influence criterion
Joint control is the contractually agreed sharing of control of an arrangement and exists only when requiring the
unanimous consent of the parties sharing control before making decisions about the relevant activities of the
arrangement. Where the Company together with other joint venture parties exercises joint control over the investee
and is entitled to the net assets of the investee the investee is a joint venture of the Company.Significant influence refers to the power to participate in making decisions on the financial and operating policies of an
enterprise but not the power to control or jointly control the formulation of such policies with other parties. Where the
Company can exercise significant influence over the investee the investee is an associate of the Company.
(2) Determination of initial investment cost
* Long-term equity investments formed through business combination
For the long-term equity investment in subsidiaries arising from business combinations involving entities under
common control the initial investment cost of the long-term equity investment is determined as the share of the book
value of the shareholders' equity of the acquired party in the consolidated financial statements of the ultimate
controlling party on the date of combination. The share premium in the capital reserves 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 reserves is insufficient to offset the retained earnings shall be
adjusted. In connection with imposing control over the investee under common control as a result of additional
investment and other reasons the share premium shall be adjusted according to the difference between the initial
investment cost of the long-term equity investment as recognized by the above principle and the carrying value of the
long-term equity investment before combination and the sum of carrying value of newly paid consideration for
additional shares acquired on the date of combination. If the share premium is insufficient for write-down the retained
earnings shall be offset.For the long-term equity investment in the subsidiaries arising from business combinations involving entities not under
common control the cost of the combination ascertained on the date of acquisition shall be taken as the initial
investment cost of the long-term equity investment. In connection with imposing control over the investee not under
common control as a result of additional investment and other reasons the initial investment cost shall be the sum of
the book value of the equity investment originally held and the newly increased initial investment cost.* Long-term equity investments acquired by the means other than business combination
The initial cost of a long-term equity investment obtained by cash payment shall be the purchase costs actually paid.The initial cost of investment of a long-term equity investment obtained by means of issuance of equity securities shall
be the fair value of the equity securities issued.
(3) Subsequent measurement and recognition of profit or loss
* Long-term equity investment calculated by cost method
Long-term equity investment in subsidiaries of the Company is calculated by cost method unless the investment
meets the conditions for holding for sale. Except for the actual consideration paid for the acquisition of investment or
the declared but not yet distributed cash dividends or profits which are included in such consideration investment
gains are recognized as the Company's share of the cash dividends or profits declared by the investee.* Long-term equity investment accounted for by equity method
Long-term equity investments of associates and jointly controlled entities are calculated using equity method. Where
the initial investment cost of the long-term equity investment exceeds the investor's interest in the fair value of the
investee's identifiable net assets at the acquisition date no adjustment shall be made to the initial investment cost;
where the initial investment cost is less than the investor's interest in the fair value of the investee's identifiable net
assets at the acquisition date the difference shall be charged to the profit or loss for the current period. At the same
time the cost of the long-term equity investment shall be adjusted.The Company recognizes investment income and other comprehensive income based on its share of the net profit or
loss and other comprehensive income realized by the investee and simultaneously adjusts the carrying amount of the
long-term equity investment; the carrying amount of the long-term equity investment is reduced by the Company's
share of the profit or cash dividends declared by the investee; in respect of other changes in the owner's equity of the
investee other than net profit or loss other comprehensive income and profit distributions (hereinafter referred to as
"Other Changes in Owner's Equity") the carrying amount of the long-term equity investment is adjusted and
recognized in owner's equity.When determining the amount of its share of net profit or loss other comprehensive income and other changes in the
owner's equity of the investee to which it is entitled the fair value of the identifiable net assets of the investee at the
date of investment is used as the basis and adjustments are made to the net profit and other comprehensive income
of the investee in accordance with the Company's accounting policies and accounting periods.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
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be recognized except for those assets invested or sold constituting a business. Any unrealized losses resulting from
transactions with the investee which are attributable to impairment of assets shall be fully recognized.The net loss incurred by the Company to the joint ventures or affiliates is capped when the carrying amount of long-
term equity investment and the long-term equity that substantially constitutes the net investment in the joint ventures or
affiliates have been written down to zero except to the extent that the Company has an additional loss obligation. If
the joint ventures or affiliates later realize net profit the Company will resume recognition of the income share after the
income share makes up the unrecognized loss share.* Disposal of long-term equity investments
For disposal of long-term equity investment the difference between the book value and the consideration actually
received shall be included in the current profit or loss.If the remaining equity is still subject to the equity method in partial disposal of the long-term equity investment under
the equity method other comprehensive income recognized in the original equity investment shall be carried forward
at the appropriate proportion on the same basis used by the investee for direct disposal of relevant assets or liabilities
and other changes in the owner's equity shall be carried forward into the current profit or loss at the appropriate
proportion.When losing the control or material influence over the investee due to disposal of the equity investment and other
reasons other comprehensive income recognized in the original equity investment due to adoption of the equity
method shall be subject to accounting treatment on the same basis used by the investee for direct disposal of relevant
assets or liabilities when ceasing to use the equity method and other changes in the owner's equity shall be carried
forward into the current profit or loss in full when ceasing to use the equity method.If the control over the investee is lost due to partial disposal of the equity investment and other reasons and if the
remaining equities can exercise common control or significant influence over the investee in preparing the individual
financial statements the remaining equities shall be accounted for under the equity method and shall be adjusted as if
such remaining equities have been accounted for under the equity method since acquisition. 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 owners' 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 significant 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 and the other comprehensive income and other changes in owners' equity
recognized before the control over the investee is obtained shall be carried forward in full.When disposing of equity investments in a subsidiary step by step through multiple transactions until control is lost if
these constitute a package deal all transactions shall be accounted for as a single disposal of the equity investment in
the subsidiary resulting in loss of control; before the loss of control the difference between the disposal proceeds of
each transaction and the book value of the corresponding long-term equity investment shall in the individual financial
statement first be recognized as other comprehensive income and then transferred in full to the current profit or loss
upon loss of control. If it is not a package deal each transaction shall be subject to accounting treatment.
21. Investment Properties
Investment property refers to the real estate held to generate rental income or capital appreciation or both including
leased land use rights land use rights held for transfer after appreciation and leased buildings (including buildings that
are leased after completion of self-construction or development activities and buildings in construction or development
that are used for rental in the future).The Company adopts the cost mode to measure the existing investment property. The subsequent expenditure related
to the investment property will be included in the cost of the investment property when relevant economic benefits are
likely to flow in and costs can be measured reliably or otherwise be included in the current profit or loss when
occurred. Investment property measured at cost - buildings held for leasing shall adopt the same depreciation policy
for fixed assets of the company land use rights held for leasing shall adopt the same amortization policy for the
intangible assets.
22. Fixed Assets
(1) Conditions of Recognition
Fixed assets are tangible assets that are held for use in the production or supply of goods or services for rental to
others or for administrative purposes; and have a service life of more than one fiscal year. Fixed asset is recognized
when it meets the following conditions: * It is probable that the economic benefits associated with the fixed asset will
flow to the enterprise; * Its cost can be reliably measured.The fixed assets are initially measured at cost (with the impact of predicted discard expense taken into account).The subsequent expenditure related to the fixed assets will be included in the cost of the fixed assets when the
economic benefits in connection therewith are likely to flow in and costs can be measured reliably; the book value of
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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 retirement
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:
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 commissioning 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) Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to the acquisition construction or production
of assets qualified for capitalization the costs will be capitalized and included in the costs of the related assets. Other
borrowing costs shall be recognized as expense in the period in which they are incurred and included in profit or loss
for the current period.Assets qualified for capitalization are assets (fixed assets investment property inventories etc.) that necessarily take
a substantial period of time for acquisition construction or production to get ready for their intended use or sale.
(2) Capitalization period of borrowing costs
The capitalization period shall refer to the period between the commencement and the cessation of capitalization of
borrowing costs excluding the period in which capitalization of borrowing costs is temporarily suspended.Borrowing costs begin to be capitalized when the following conditions are met simultaneously:
* Asset expenditures (including cash paid non-cash assets transferred or interest-bearing debt incurred for the
acquisition construction or production of assets qualified for capitalization) have occurred;
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* Borrowing costs have been incurred;
* Acquisition construction or production necessary to enable the asset to reach its intended state of serviceability or
marketability have commenced.Capitalization of borrowing costs ceases when the qualifying asset being acquired constructed or produced reaches
its intended usable or saleable condition.
(3) Suspension of capitalization period
Capitalization of borrowing costs shall be suspended during periods in which the acquisition construction or
production of a qualifying asset is interrupted abnormally when the interruption is for a continuous period of more than
3 months; if the interruption is a necessary step for making the qualifying asset under acquisition and construction or
production ready for the intended use or sale the capitalization of the borrowing costs shall continue. The borrowing
costs incurred during such period shall be recognized as profits and losses of the current period. When the acquisition
and construction or production of the asset resumes the capitalization of borrowing costs commences.
(4) Calculation of capitalization rate and amount of borrowing costs
For specific borrowings incurred for the acquisition construction or production of assets qualified for capitalization the
amount of borrowing costs to be capitalized shall be determined as the borrowing costs actually incurred on the
specific borrowings during the current period less the interest income earned from depositing the unused borrowings
in the bank or the investment income earned from temporary investments of such unused borrowings.For general borrowings used for the acquisition construction or production of assets qualified for capitalization the
amount of borrowing costs to be capitalized on general borrowings shall be calculated and determined by multiplying
the weighted average of the excess of accumulated asset disbursements over specific borrowings by the capitalization
rate of the general borrowings used. The capitalization rate shall be calculated and determined according to the
weighted average interest rate of the general borrowing.During the capitalization the difference between the principal and interest of special borrowings in foreign currency
shall be capitalized and included in the cost of assets qualified for capitalization. The difference between the principal
and interest of the borrowings in foreign currency other than the special borrowings in foreign currency shall be
included in the current profit or loss.
25. Intangible Assets
(1) Service Life Determination Basis Estimation Amortization Method or Review Procedures
* Valuation method of intangible assets
a. Intangible assets are initially measured at cost upon acquisition
The costs of an externally purchased intangible asset include the purchase price relevant taxes and expenses paid
and other expenditures directly attributable to putting the asset into condition for its intended use.b. Subsequent measurement
The service life of intangible assets shall be analyzed and judged upon acquisition.As for intangible assets with a finite service life they are amortized using the straight-line method over the term in
which economic benefits are brought to the firm; If the term in which economic benefits are brought to the firm by an
intangible asset cannot be estimated the intangible asset shall be taken as an intangible asset with indefinite service
life and shall not be amortized.* Estimation of service life of the intangible assets with limited service life
Item Estimated useful lives Basis
Land use rights 40 or 50 years Land use certificate
Non-patented technology 5-10 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 the useful lives and amortization methods of intangible assets as at the end of the current year are the
same as those of the previous estimates.* The basis for the judgment of intangible assets with uncertain service life and the procedure for reviewing their
service life
As at the balance sheet date the Company has no intangible assets with uncertain service life.
(2) The scope of R&D Expenditure Collection and Related Accounting Treatment Methods
* The scope of R&D expenditure collection
Expenditures incurred by the Company in research and development include the compensation of the employees
engaged in research and development activities consumable materials depreciation and amortization expenses and
other related expenditures.
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* Specific criteria for the division of research phase and development phase
The expenses for internal research and development projects of the Company are divided into expenses in the
research phase and expenses in the development phase.Research phase: Scheduled innovative investigations and research activities to obtain and understand scientific or
technological knowledge.Development phase: Apply the research outcomes or other knowledge to a plan or design prior to a commercial
production or use in order to produce new or essentially-improved materials devices products etc.* Specific condition for capitalizing expenditure during the development phase
Expenses in the research phase are recorded into the profits and losses for the current period when they occur. The
expenses in the development phase are recognized as intangible assets if the following conditions are fulfilled and are
included in the current profit or loss if following conditions are not fulfilled:
a. Complete such intangible asset to make it technically feasible for use or for sale;
b. There is intention to complete the intangible asset for use or sale;
c. The ways in which the intangible asset generates economic benefits including evidence that the products produced
using the intangible asset have a market or that the intangible asset itself has a market; if the intangible asset is to be
used internally evidence that it is useful;
d. There is sufficient support in terms of technology financial resources and other resources in order to complete the
development of the intangible asset and there is capability to use or sell the intangible asset;
e. The expenses attributable to the development stage of the intangible asset can be measured reliably.If the expenses in the research phase and expenses in the development phase cannot be distinguished all the
expenses incurred for R&D are included in the current profit or loss.
26. Impairment of Long-Term Assets
Long-term assets such as long-term equity investment investment properties that are measured at cost fixed assets
construction in progress intangible assets with limited service life and oil and gas assets are tested for impairment if
there is any indication that an asset may be impaired at the balance sheet date. If the result of the impairment test
indicates that the recoverable amount of the asset is less than its book value a provision for impairment and an
impairment loss are recognized for the amount by which the asset's book value exceeds its recoverable amount. The
recoverable amount is the higher of an asset's fair value less costs to sell and the present value of the future cash
flows expected to be derived from the asset. Provision for asset impairment is determined and recognized on an
individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset the recoverable
amount of the asset group to which the asset belongs 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 carries out impairment testing on goodwill the Company shall from the acquisition date allocate
the carrying amount of goodwill arising from business combinations to the relevant asset groups on a reasonable basis;
if it is difficult to allocate to relevant asset groups it shall allocate the goodwill to the sets of asset groups. Relevant
asset groups or sets of asset groups are those that can benefit from the synergies of the business combination.For the purpose of impairment test on the relevant asset groups or the sets of asset groups containing goodwill if any
evidence shows that the impairment of asset groups or sets of asset groups related to goodwill is possible an
impairment test will be made first on the asset groups or sets of asset groups not containing goodwill thus calculating
the recoverable amount and comparing it with the relevant book value so as to recognize the corresponding
impairment loss. An impairment test will be made on the asset groups or sets of asset groups containing goodwill to
compare the book value of these asset groups or sets of asset groups with the recoverable amount. Where the
recoverable amount is lower than the book value the amount of impairment loss shall set off and be apportioned to the
book value of the goodwill in the asset groups or sets of asset groups and then set off the book value of other assets
pro rata according to the proportion of the book value of other assets other than the goodwill in the asset groups or
sets of asset groups.Once the above asset impairment loss is recognized it will not be reversed in the subsequent accounting periods.
27. Long-Term Deferred Expenses
Long-term deferred expenses are expenses which have occurred but will benefit over 1 year and shall be amortized
over the current period and subsequent periods.The amortization period and amortization method of various expenses are:
Item Amortization method Amortization period
Improvement expenditure on fixed assets Straight-line method By period of benefit
leased under operating leases
Renovation Cost Straight-line method By period of benefit
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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 employees provide services to the Company the Company recognizes the short-
term remuneration actually incurred as liabilities and recognizes them in current profit or loss or as 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
* Defined contribution plan
The Company will pay basic pension insurance and unemployment insurance in accordance with the relevant
provisions of the local government for the staff. During the accounting period when the staff provides service the
Company will calculate the amount payable in accordance with the local stipulated basis and proportions which will be
recognized as liabilities and the liabilities would be charged into current profits and loss or costs of assets.* Defined benefit plan
The welfare responsibilities generated from defined benefit plan based on the formula determined by projected unit
credit method would be vested to the service period of the staff and charged into current profits and loss or costs of
assets.
(3) Accountant Treatment of Dismissal Welfare
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: when the
Company cannot unilaterally withdraw the dismissal welfare provided due to the termination of labor relations plan or
layoff proposal; when the Company determines the costs or expenses associated with the restructuring involving the
payment of dismissal welfare.
30. Estimated Liabilities
The Company shall recognize the obligations related to contingencies as estimated liabilities when all of the following
conditions are satisfied:
(1) The obligation is a present obligation of the Company;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities shall be initially measured at the best estimate of the expenditure required to settle the related
present obligation.Factors pertaining to a contingency such as risk uncertainties and time value of money shall be taken into account as
a whole in reaching the best estimate. Where the effect of the time value of money is material the best estimate shall
be determined by discounting the related future cash outflow.The expenses required have a successive range in which the possibilities of occurrence of each result are the same
and the best estimate should be determined as the middle value for the range; in other circumstances the best
estimate will be handled as follows respectively:
(1) For the contingencies involving a single item it will be determined according to the amount most likely to occur;
(2) For the contingencies involving several items it will be determined according to the possible results and the
relevant possibilities.
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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 equity instruments are granted or liabilities are
undertaken based on equity instruments in exchange for services received from employees or other parties. The
Company's share-based payment is equity-settled.As to an equity-settled share-based payment in return for services of employees calculation will be based on the fair
value of the equity instrument granted to the employees. The share-based payment transactions vested immediately
after the date of grant will be included in the relevant cost or expense based on the fair value of the equity instrument
on the date of grant and the capital reserve will be increased accordingly. For the services within the waiting period or
the share-based payment transactions that may only be vested when the specified performance conditions are met
after the date of grant the Company will include the services obtained in the current period in relevant cost or expense
and increase the capital reserve at the fair value on the date of grant according to the best estimate of the number of
the exercisable equity instruments on each balance sheet date in the waiting period.If the terms of the equity-settled share-based payment are amended the Company shall recognize the services
received at least based on the situation before the amendment was made. In addition any amendment resulting in the
increase of the fair value of the equity instrument granted or changes that are beneficial to the staff on the amendment
date will be recognized as an increase in the service received.If the equity instruments vested are canceled during the waiting period the Company will take the vested equity
instruments canceled as accelerated exercise and immediately include the amount to be recognized during the
waiting period in the current profit or loss. At the same time the capital reserve will be recognized. However if new
equity instruments are vested and they are verified at the vesting date of new equity instrument as alternatives vested
to canceled equity instruments the treatment on the new equity instrument is in conformity with the modified treatment
on disposal of equity instrument.
32. Income
(1) Accounting policies for revenue recognition and measurement
The Company recognizes revenue when it satisfies the performance obligations in the contract i.e. when the
customer obtains control of the relevant 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 determines the transaction price that includes
variable consideration at an amount not exceeding the amount for which it is highly probable that a significant reversal
of cumulative recognized revenue will not occur when the related uncertainty is subsequently resolved. If there are
major financing components in the contract the Company shall determine the transaction price according to the
amount due assumed to be paid in cash when the customer acquires the control over the commodities or services
and shall amortize the difference between such transaction price and the contract consideration using the effective
interest rate method during the contract period.When one of the following conditions is met it belongs to the performance obligation within a certain period of time or
otherwise it belongs to the performance obligation at a certain point of time:
* The customer acquires and consumes the economic benefits arising from the Company's performance while the
company performs the contract;
* The customer can control the commodities in progress during the Company's performance;
* The goods produced by the Company during its performance have no alternative use and the Company has an
enforceable right to payment for the performance completed to date 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
114Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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. In determining whether the customer
has obtained control of the goods or services the Company considers the following indicators:
* The Company has a present right to payment for the goods or services that is the customer has a present
obligation to pay for such goods or services;
* The Company has transferred the legal title of such commodities to the customer that is the customer already has
the legal title of such commodities;
* The Company has transferred the physical commodities to the customer that is the customer has possessed the
physical commodities.* The Company has transferred the major risks and rewards of the commodity title to the customer that is the
customer has acquired the major risks and rewards of the commodity title.* The customer has accepted such commodities or services.The Company determines whether it is a principal or agent when engaging in transactions based on its control over
the goods or services before transferring them to the customer. The Company is a principal and recognizes its revenue
based on the total amount of consideration received or receivable if it can control the goods or services before
transferring them to the customer; otherwise the Company is an agent and recognizes its revenue based on the
amount of commissions or fees it expects to be entitled to.
(2) Recognition and measurement methods of specific revenue disclosure by type of business
* Domestic sales of standard products: The Company sells standard products through a combination of direct sales
and distribution. Under the terms of the sales contracts goods are either delivered to customers or collected by
customers at the Company's premises. Revenue is recognized after the customer receives the goods;
* Export sales of standard products: For domestic companies that export directly the main terms used are FOB and
CIF and sales revenue is recognized after the products have cleared customs for export. If a foreign subsidiary sells
the goods abroad the goods will be sent to the customer or the customer will collect the goods according to the
delivery method agreed with the customer and the Company will recognize revenue after the customers receive the
goods;
* System integration sales: The Company's sales of system integration products include the provision of supporting
services such as solution design ancillary products installation commissioning and system trial operation. Revenue is
recognized upon successful acceptance by customers;
* Rendering of services: Revenue is recognized when the services are rendered.
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.Assets related to contract costs are amortized on the same basis as the revenue recognition of the goods or services
to which such assets relate; however if the amortization period of the costs to obtain a contract does not exceed one
year the Company recognizes such costs in current profit or loss when incurred.In case that the book value of assets related to contract costs is higher than the difference between the two items
below the Company will accrue the impairment provision for the extra part and recognize that part as impairment loss:
(1) Estimated residual consideration to be obtained from transfer of commodities or services related to the assets;
(2) Estimated costs incurred from transfer of relevant commodities or services.
If the factors for impairment in the previous periods are subsequently changed making the aforesaid difference higher
than the book value of the assets the Company will reverse the accrued impairment provision and include it in the
current profit or loss provided that the book value of the reversed assets does not exceed the book value of the assets
without impairment provision accrued on such date of reversal.
34. Government Grants
(1) Type
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Government grants are monetary assets and non-monetary assets acquired by the Company from the government
free of charge. Government grants are classified into government grants related to assets and government grants
related to revenue.Government grants related to assets refer to government grants acquired by the Company for the purpose of
purchasing or constructing or otherwise forming long-term assets. Government grants related to revenue refer to the
government grants other than those related to assets.
(2) Confirmation of time point
Government grants are recognized when the Company is able to meet the conditions attached to them and is able to
receive them.
(3) Accounting treatment
Government grants related to assets shall write off the book value of relevant assets or be recognized as deferred
income. When recognized as deferred income the government grant related to assets will be period by period credited
to the profits and losses of the current period in a reasonable and systematic manner within the service life of relevant
assets (those related to the Company's daily activities shall be recognized as other income; those unrelated to the
Company's daily activities shall be recognized as non-operating income).The revenue-related government grants shall be recognized as deferred income if they are used to compensate
relevant expenses or losses in subsequent periods and they shall be included in profit and loss of the current period
(those related to Company's routine activities shall be included in other income; those unrelated to the Company's
routine activities shall be included in non-operating income) or used to offset relevant expenses or losses during the
recognition of related expenses or losses; the grants used to compensate related expenses or losses incurred shall be
included in profit and loss of the current period (those related to Company's routine activities shall be included in other
income; those unrelated to the Company's routine activities shall be included in non-operating income) or used to
offset relevant expenses or losses.The policy-oriented concessional loan discount interests obtained by the Company will be subject to accounting
treatment in the following two circumstances:
* Where the finance allocates the discount interest funds to the lending bank and the lending bank provides loans to
the Company at the policy preferential interest rate the Company will take the actually received loan amount as the
entry value of the loan and the relevant borrowing costs shall be calculated according to the loan principal and the
policy preferential interest rate;
* If the finance directly allocates the discount interest funds to the Company the Company shall set off the
corresponding discount interest against the relevant borrowing costs.
35. Deferred Income Tax Assets/Deferred Income Tax Liabilities
Income tax comprises current income tax and deferred income tax. Except for the income taxes arising from the
business combination and the transactions or matters that are directly included in the owner's equity (including other
comprehensive income) the Company will include the current income tax and deferred income tax into the current
profit or loss.Deferred income tax assets and deferred income tax liabilities will be calculated and recognized according to the
difference (temporary difference) between the tax basis and the book value of assets and liabilities.Deferred income tax assets are recognized to the extent that it is probable that future taxable income will be available
against which deductible temporary differences can be utilized. For deductible losses and tax credits that can be
reversed in the future period deferred income tax assets shall be recognized to the extent that it is probable that
taxable income will be available in the future to offset the deductible losses and tax credits.Except as otherwise provided deferred income tax liabilities shall be recognized for taxable temporary differences.The exceptions where deferred income tax assets and liabilities are not recognized include:
(1) Initial recognition of the goodwill;
(2) Transactions or events that are neither business combinations nor affect profit and taxable income (or deductible
loss) when occurring.Taxable temporary difference related to investment in the subsidiaries affiliates and joint ventures will be recognized
as deferred income tax liabilities unless the Company can control the time to reverse such temporary difference and
such temporary difference is much more unlikely to be reversed in the predictable future. Deductible temporary
difference related to investment in the subsidiaries affiliates and joint ventures will be recognized as deferred income
tax assets when such temporary difference is much more likely to be reversed in the predictable future and is much
more likely to be obtained to deduct the taxable income of the deductible temporary difference.On the balance sheet date the deferred income tax assets and the deferred income tax liabilities will be measured at
the tax rate applicable during the recovery of relevant assets or payment of relevant liabilities as expected according to
the provisions of the tax law.On the balance sheet date the Company will review the book value of the deferred income tax assets. If no sufficient
taxable income is likely to be obtained to offset the benefits of deferred income tax assets in the future the book value
of deferred income tax assets shall be written down. The amount written down shall be reversed when it is probable
that sufficient taxable income will be obtained.When the Company has a legally enforceable right to settle on a net basis and intends to settle on a net basis or to
realize assets and settle liabilities simultaneously current income tax assets and current income tax liabilities are
presented on a net basis after offset.
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On the balance sheet date the deferred income tax assets and the deferred income tax liabilities will be presented by
the net amount after offsetting when the following conditions are fulfilled:
(1) The taxpayer is granted the legal rights to settle current income tax assets and current income tax liabilities on a
net basis;
(2) Deferred income tax assets and deferred income tax liabilities relate to income tax levied by the same tax authority
on the same taxable entity or relate to different taxable entities but in each future period in which significant deferred
income tax assets and liabilities are expected to be reversed the taxable entities involved intend to settle current
income tax assets and liabilities on a net basis or to realize assets and settle liabilities simultaneously.
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. At the inception of the contract the Company assesses whether the contract is a lease or
contains a 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 contract contains both lease and non-lease the lessee and the lessor will split
the lease and non-lease parts.If all the following conditions are met the Company will simplify all the lease options without assessing whether the
lease is changed or reassessing the lease classification:
(1) The lease consideration after reduction is less or remains substantially the same compared with the lease
consideration before reduction and the lease consideration may either be undiscounted or discounted by the discount
rate before reduction;
(2) Other terms and conditions of lease are identified without significant change after taking the qualitative and
quantitative factors into full account.
(1) Accounting Treatment of Leases as a Lessee
* Right-of-use assets
The Company recognizes the right-to-use assets for the lease other than short-term lease and low-value asset lease
on the commencement of the lease term. The right-to-use assets are initially measured at cost. which includes:
a. Initial measurement amount of lease liabilities;
b. The lease payment paid on or before the commencement of the lease term; if there are lease incentives the
relevant amount of lease incentives enjoyed shall be deducted;
c. Initial direct cost incurred by the Company;
d. The estimated costs incurred by the Company for dismantling and removing the leased asset restoring the site
where the leased asset is located or restoring the leased asset to the state agreed in the lease terms but excluding
the cost incurred to produce the inventory.The Company will depreciate the right-to-use assets through the straight-line method. If it can be reasonably
recognized that the title of the leased asset is acquired at the expiration of the lease term the Company shall accrue
depreciation within the remaining service life of the leased asset; or otherwise the leased asset shall be depreciated
within the shorter of the lease term and the remaining service life of the leased asset.The Company will determine whether the right-of-use assets are impaired and conduct accounting treatment over the
identified impairment loss according to the principles set out in this section Financial Report - V. Significant Accounting
Policies and Accounting Estimates - 26. Impairment of Long-term Assets.* Lease liabilities
The Company recognizes the lease liabilities for the lease other than short-term lease and low-value asset lease on
the commencement of the lease term. Lease liabilities shall be initially measured at the present value of the unpaid
lease payments. Lease payments include:
a. Fixed payment (including actual fixed payment) and if there are lease incentives the relevant amount of lease
incentives shall be deducted;
b. Variable lease payment depending on the index or ratio;
c. Predicted payment on the basis of the guaranteed residual value provided by the Company;
d. Exercise price of the call option provided that the Company will exercise such option as reasonably determined;
e. Payment for exercise of the lease termination option provided that the lease term reflects the Company’s future
exercise of the lease termination option.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.
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If any of the following circumstances happens on commencement of the lease term the Company will remeasure the
lease liabilities and adjust the corresponding right-of-use assets and if the book value of the right-of-use assets has
been reduced to zero but the lease liabilities still need to be further reduced the difference shall be included in the
current profit or loss:
a. When the assessment result of the call option renewal option or termination option is changed or the actual
exercise of the aforesaid option is inconsistent with the original assessment result and the Company remeasures the
lease liabilities at the present value worked out according to the changed lease payment and the revised discount rate;
b. When there are changes in the actual fixed payment the estimated payable amount of guaranteed residual value
or the index or ratio applied to determine the amount of lease payments the Company remeasures the lease liabilities
at the present value worked out according to the changed lease payment and the original discount rate. If the change
in the lease payment originates from the change in the floating interest rate the present value will be calculated using
the revised discount rate.* Short-term lease and low-value asset lease
The Company chooses not to recognize the right-of-use assets and lease liabilities for the short-term lease and low-
value asset lease and records relevant lease payment into the current profit or loss or relevant asset cost according to
the straight-line method in each period of the lease term. Short-term lease means the lease of no more than 12
months and excluding the call option on the commencement of the lease term. Low-value asset lease means a lease
of lower value when the single leased asset is brand-new. If the Company sublets or is expected to sublet the leased
assets the original lease is not a low-value asset lease.* Lease change
If the lease is changed and meets all of the following conditions the Company will conduct accounting treatment with
respect to such lease change as a single lease:
a. Such lease change has expanded the scope of lease by adding the right to use one or more leased assets;
b. The increased consideration and the separate consideration for the expanded part of the scope of lease shall be
equivalent to the amount adjusted according to this contract.If the lease change is not taken as a separate lease for accounting treatment on the effective date of the lease change
the Company will re-apportion the consideration of the changed contract re-determine the lease term and remeasure
the lease liabilities at the present value worked out according to the changed lease payment and the revised discount
rate.If the lease change results in narrower scope of lease or shorter lease term the Company will reduce the book value
of the right-of-use assets accordingly and will include relevant gain or loss from partial or full termination of the lease
in the current profit or loss. If other lease changes result in re-measurement of the lease liabilities the Company will
adjust the book value of the right-to-use assets accordingly.
(2) Accounting Treatment of Leases as a Lessor
On commencement of the lease term the Company will divide the lease into financial lease and operating lease.Financial lease means the lease that has substantially transferred almost all the risks and rewards related to the title of
the leased assets whether or not the title will be finally transferred. Operating lease means any lease other than
financial lease. When the Company serves as a lessor of the sublease the sublease will be classified on the basis of
the right-to-use assets resulting from the original lease.* Accountant treatment of operating lease
The lease receipts for the operating lease will be recognized as the rental income according to the straight-line method
during each period of the lease term. The initial direct fee related to the operating lease to be incurred by the Company
will be capitalized and will be apportioned and included in the current profit or loss on the same basis as that for
recognition of the rental income in the lease term. The variable lease payments that are not included in the lease
receipts shall be included in the current profit or loss when they actually occur. In case of a change to the operating
lease the Company will conduct accounting treatment with respect to the changed operating lease as a new lease as
of the effective date of the change and the lease payments received in advance or receivable with respect to the lease
before the change will be taken as the lease receipts for the new lease.* Accounting treatment of financial lease
On the commencement of the lease term the Company will recognize the financial lease receivables for the financial
lease and derecognize the financial lease assets. The Company will take the net lease investment as the entry value
of the financial lease receivables when initially measuring the financial lease receivables. The net lease investment is
the sum of the unguaranteed residual value and the present value of the unreceived lease receipts discounted
according to the interest rate implicit in lease on the commencement of the lease term.The Company will calculate and recognize the interest income during each period of the lease term at a fixed periodic
interest rate. The derecognition and impairment of the financial lease receivables will be subject to accounting
treatment according to this section Financial Report - V. Significant Accounting Policies and Accounting Estimates - 11.Financial Instruments.The variable lease payments that are not included in the measurement of the net lease investment shall be included in
the current profit or loss when they actually occur.If the financial lease is changed and meets all of the following conditions the Company will conduct accounting
treatment with respect to such change as a single lease:
a. Such change has expanded the scope of lease by increasing the right to use one or more leased assets;
118Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
b. The increased consideration and the separate consideration for the expanded part of the scope of lease shall be
equivalent to the amount adjusted according to this contract.If the change in the financial lease is not subject to accounting treatment as a single lease the Company will treat the
changed lease in the following circumstances:
a. If the change takes effect on commencement of the lease term and the lease is classified as operating lease the
Company will conduct accounting treatment with respect to such lease as a new lease as of the effective date of the
lease change and will take the net lease investment before the effective date of the lease change as the book value of
the leased asset;
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 Policies 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 Policies and
Accounting Estimates - 32. Income.* Acting as a lessee
If the asset transfer in the sale and leaseback transaction is a sale the Company as the lessee shall measure the
right-of-use asset arising from the sale and leaseback according to the part related to the right of use acquired from
the leaseback in the original book value of the asset and only recognize relevant gain or loss on the rights transferred
to the lessor; if the asset transfer in the sale and leaseback transaction is not a sale the Company as the lessee shall
continue to recognize the transferred asset and recognize a financial liability equal to the transfer income. For
accounting treatment of the financial liabilities refer to this section Financial Report - V. Significant Accounting Policies
and Accounting Estimates - 11. Financial Instruments.* Acting as a lessor
If the asset transfer in the sale and leaseback transaction is a sale the Company as the lessee shall conduct
accounting treatment with respect to the asset purchase and conduct accounting treatment with respect to the asset
lease according to the policy in the foregoing "(2) Accounting treatment of leases as a lessor"; if the asset transfer in
the sale and leaseback transaction is not a sale the Company as the lessor shall derecognize the transferred asset
but recognize a financial asset equal to the transfer income. For accounting treatment of the financial assets refer to
this section Financial Report - V. Significant Accounting Policies and Accounting Estimates - 11. Financial Instruments.
37. Other Significant Accounting Policies and Accounting Estimates
(1) Repurchase of the Company's shares
The Company's shares repurchased by the Company for reducing the registered capital or rewarding employees shall
be treated as the treasury shares based on the actual amount paid and shall be checked and registered at the same
time. If the repurchased shares are canceled the difference between the 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 being the creditor
The Company derecognizes creditor’s rights when the contractual right to receive cash flows terminates. In case of
debt restructuring by paying off the debt with assets or converting into equity instruments the Company will recognize
relevant assets when they meet their definition and conditions of recognition.In case of debt restructuring by paying off the debt with assets the Company initially recognizes the transferred non-
financial asset at cost. The cost of inventory includes the fair value of the relinquished claim as well as taxes
transportation fees handling fees and insurance fees and other costs directly attributed to the asset that occur to bring
the asset to its current location and condition. The cost of investment in an associate or joint venture includes the fair
value of relinquished claim and taxes and other costs directly attributed to the asset. The cost of investment property
includes the fair value of relinquished claim and other costs directly attributed to the asset. The cost of fixed assets
includes the fair value of relinquished claim as well as taxes transportation fees handling fees installation fees
service fees for professionals and other costs directly attributed to the asset that occur to bring the asset to its
intended usable condition. The cost of biological assets includes the fair value of relinquished claim as well as taxes
transportation fees insurance fees and other costs directly attributed to the asset. The cost of intangible assets
includes the fair value of relinquished rights and taxes and other costs that are incurred to bring the asset to its
intended use. In case that the debt restructuring by converting debt into equity instruments results in the creditor
119Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 Policies and Accounting Estimates - 11.Financial Instruments
In case of debt restructuring by means of settlement with multiple assets or a combination thereof the Company shall
first recognize and measure the acquired financial assets and restructured creditor's rights in accordance with "Section
V. Significant Accounting Policies and Accounting Estimates - 11. Recognition and Measurement of Financial
Instruments" of this chapter's financial reports and then allocate the net amount after deducting the recognized
amounts of the acquired financial assets and restructured creditor's rights from the fair value of the relinquished
creditor's rights in proportion to the fair values of the respective assets other than the acquired financial assets and
on this basis determine the cost of each asset separately in accordance with the foregoing method. The difference
between the fair value of relinquished claim and the book value shall be included in the current profit or loss.* The Company as a debtor
The Company derecognizes debts when the present obligation for the liability is discharged.In the case of debt restructuring by paying off debts with assets the Company derecognizes the relevant assets and
the debts when they meet the conditions for derecognition and the difference between the book value of the debts
paid off and that of the transferred assets is included in the current profits and losses.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 terms the Company recognizes and measures the restructured debt in
accordance with "Section V. Significant Accounting Policies and Accounting Estimates - 11. Recognition and
Measurement of Financial Instruments" of this chapter's financial reports.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) Adjustments to the financial statements at 1 January 2026 upon initial application of the new accounting
standards
□ 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 13% 9% 6% simple collection rate
VAT on the basis of the income by selling of 5% simple collection rate of 3%
goods and taxable services. After 0% and tax-free
deducting the input tax that is
120Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
allowed to be deducted from the
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%
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 Huajian Technology Co. Ltd. 15%
Zhejiang Pixfra Technology Co. Ltd. 15%
Guangxi Dahua Zhicheng Co. Ltd. 15%
Guangxi Huacheng Technology Co. Ltd. 15%
Dahua Technology (HK) Limited 16.50%
Jiangsu Huaruipin Technology Co. Ltd. 20%
Inner Mongolia Dahua Zhimeng Information Technology
20%
Co. Ltd.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%
Hangzhou Xiaohua Technology CO. LTD. 20%
Chengdu Zhichuang Yunshu Technology Co. Ltd. 20%
Chengdu Huishan Smart Network Technology Co. Ltd. 20%
Guizhou Huayi Shixin Technology Co. Ltd. 20%
Zhejiang Zhoushan Digital Development Operation Co.
20%
Ltd.Tianjin Dahua Information Technology Co. Ltd. 20%
Chengdu Huazhiwei Technology Co. Ltd. 20%
Chengdu Dahua Wisdom Information Technology Co.
20%
Ltd.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%
121Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Shuhang Intelligent Technology Co. Ltd. 20%
Jilin Dahua Zhilian Technology Co. Ltd. 20%
Zhengzhou Airport Economy Zone Huaao Technology
20%
Co. Ltd.Hainan Dahua Huizhi Technology Co. Ltd. 20%
Other domestic companies 25%
Other overseas companies Applicable local tax rate
2. Preferential Tax Rate
(1) 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 Company was recognized as a high-tech firm with a validity
period of three years. Accordingly the Company's corporate income tax for the year was calculated at a reduced tax
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 subsidiaries Zhejiang HuaRay Technology Co. Ltd. and
Zhejiang Huaxiao Technology Co. Ltd. were recognized as high-tech firms with a valid period of three years.Accordingly their corporate income tax for the year was calculated 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 Recording of High-tech Enterprises Recognized and Reported by the
Certification Authorities in Zhejiang Province 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 Announcement on Preferential Income Tax Policies for Small Low-Profit Enterprises and
Individual Industrial and Commercial Households (MoF and STA Announcement 2023 No. 12) and the Announcement
on Preferential Income Tax Policies for Small and Micro Businesses and Individual Businesses (MoF and STA
Announcement [2023] No. 6) subsidiaries Zhejiang Dahua Ju'an Technology Co. Ltd. Guangxi Dahua Technology
Co. Ltd. Zhejiang Huakong Software Co. Ltd. Hangzhou Xiaohua Technology Co. Ltd. Chengdu Zhichuang
Yunshu Technology Co. Ltd. Chengdu Huishan Smart Network Technology Co. Ltd. Guizhou Huayi Shixin
Technology Co. Ltd. Zhejiang Zhoushan Digital Development Operation Co. Ltd. Tianjin Dahua Information
Technology Co. Ltd. Chengdu Huazhiwei Technology Co. Ltd. Chengdu Dahua Wisdom Information Technology
Co. Ltd. Luoyang Dahua Zhiyu Information Technology Co. Ltd. Nanyang Dahua Intelligent Information Technology
Co. Ltd. Guangdong 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 HJ Technology Co. Ltd.Zhejiang Shuhang Intelligent Technology Co. Ltd. Jilin Dahua Zhilian Technology Co. Ltd. Zhengzhou Airport Zone
Huaao Technology Co. Ltd. Jiangsu Huaruipin Technology Co. Ltd. and Inner Mongolia Dahua Zhimeng Information
Technology Co. Ltd. are entitled to the tax incentive that the portion of annual taxable income not exceeding RMB 3
million shall be reduced to 25% of the taxable income and shall be subject to corporate income tax at a tax rate of
20%.
(6) In accordance with 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 Development Strategy
(Cai Shui [2011] No. 58) and the Announcement of the Ministry of Finance the State Administration of Taxation and
the National Development and Reform Commission on Continuing the Corporate Income Tax Policy for the Western
Development Strategy (Announcement of the Ministry of Finance the State Administration of Taxation and the
National Development and Reform Commission [2020] No. 23) the subsidiaries Guangxi Dahua Zhicheng Co. Ltd.and Guangxi Huacheng Technology Co. Ltd. are eligible for the tax incentives under the Western Development
Strategy from 2011 to 2030. Accordingly their corporate income tax for the current year is calculated at the reduced
tax rate of 15%.
(7) 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
122Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Co. Ltd. Zhejiang Huaxiao Technology Co. Ltd. Zhejiang PixFra Technology Co. Ltd. Zhejiang HuaRay Technology
Co. Ltd. are subject to VAT on sales of self-developed software products at a rate of 13%. The portion of the effective
tax burden exceeding 3% is refunded following review and approval by the competent tax authorities.
(8) Pursuant to the Announcement on the Additional Value-Added Tax (“VAT”) Credit Policy for Advanced
Manufacturing Enterprises (Announcement of the Ministry of Finance and the State Taxation Administration No. 43 of
2023) from January 01 2023 to December 31 2027 advanced manufacturing enterprises are allowed to claim an
additional 5% deduction on deductible input VAT against their VAT payable. Zhejiang HuaRay Technology Co. Ltd. is
eligible for such policy and has applied the additional VAT deduction for the period in which it qualified as an advanced
manufacturing enterprise.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 116738.89 2726.44
Bank Balance 7088150489.92 8547853566.50
Other Cash and Bank Balances 157934846.48 107546627.81
Total 7246202075.29 8655402920.75
Including: Total Amount Deposited in 1594518839.35 1687221554.15
Overseas Banks
Funds held overseas with restrictions
on remittance. 3900671.31 4128151.49
2. Trading Financial Assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through
310845141.59309157871.90
profit or loss
Among them:
Financial products 251993835.62 252021917.81
Equity instruments held for trading 58851305.97 57135954.09
Total 310845141.59 309157871.90
3. Notes Receivable
(1) Disclosure of Notes Receivable
Unit: RMB
Item Closing balance Opening balance
Bank Acceptance Notes 601046310.86 663138917.20
Commercial Acceptance Notes 121980819.72 118329719.81
Total 723027130.58 781468637.01
(2) Disclosure by Bad Debt Provision Method
Unit: RMB
123Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Closing balance Opening balance
Bad debt Bad debt
Book balance Book balance
Categor provision provision
y Book BookAccr value AccrPropo Propo value
Amount Amount ued Amount Amount ued
rtion rtion
Ratio Ratio
Notes
Receiva
ble with
the Bad
Debt
Provisio 7384081 100.0 153810 2.08 7230271 8012244 100.0 197558 2.47 7814686
n 91.13 0% 60.55 % 30.58 76.91 0% 39.90 % 37.01
Accrued
Based
on
Combin
ations
Among
them:
Bank
Accepta 6075477 82.28 650142 1.07 6010463 6710913 83.76 795245 1.19 6631389
nce 39.73 % 8.87 % 10.86 74.94 % 7.74 % 17.20
Notes
Comme
rcial
130860417.728879636.791219808130133116.241180339.071183297
Accepta
51.40%1.68%19.7201.97%82.16%19.81
nce
Notes
7384081100.015381072302718012244100.01975587814686
Total
91.130%60.5530.5876.910%39.9037.01
Bad debts on bank and commercial acceptance bills by portfolio
Unit: RMB
Closing Balance
Name
Book Balance Bad Debt Provision Accrued Ratio
Bank Acceptance Notes 607547739.73 6501428.87 1.07%
Commercial Acceptance
130860451.408879631.686.79%
Notes
Total 738408191.13 15381060.55
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 7952457.74 1451028.87 6501428.87
124Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Acceptance
Notes
Commercial
Acceptance 11803382.16 2923750.48 8879631.68
Notes
Total 19755839.90 4374779.35 15381060.55
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 354252657.01
Total 354252657.01
(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 Not Derecognised Amount at the End
Item
of Period of Period
Bank Acceptance Notes 44103049.97
Total 44103049.97
4. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 13117120500.96 13663038886.36
1 to 2 years 1647652708.72 1645640085.55
2 to 3 years 879935722.86 912562556.60
3 years or above 2666360034.17 2439645289.02
3 to 4 years 657393660.58 627675903.47
4 to 5 years 550980024.06 459609172.31
5 years or above 1457986349.53 1352360213.24
Total 18311068966.71 18660886817.53
(2) Disclosure by Bad Debt Provision Method
Unit: RMB
Closing balance Opening balance
Category Book balance Bad debt provision Book Book balance Bad debt provision Book
Amou Proporti Amount Accrued value Amount Proporti Amount Accrued value
125Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
nt on Ratio on Ratio
Accounts
receivabl
es with
the bad
2026
debt 197073 55409 174409 167513 68958
14041.11%97.27%0.93%96.05%
provision 120.73 27.37 741.39 847.33 94.06
8.10
accrued
based on
single
item
Among
them:
Accounts
receivabl
e with
insignific
ant single
amount 2026
1970735540917440916751368958
but 1404 1.11% 97.27% 0.93% 96.05%
120.7327.37741.39847.3394.06
accrued 8.10
for
separate
provision
of bad
debt
Accounts
receivabl
es with
the bad 1810
3159214949184863019215467
debt 8454
98.89%95835.17.45%15908247707699.07%84786.16.33%192289
provision 918.6
81.80.1483.31
accrued 1
based on
combinati
ons
Among
them:
1810
Aging 31592 14949 18486 30192 15467
8454
Analysis 98.89% 95835. 17.45% 159082 477076 99.07% 84786. 16.33% 192289
918.6
Portfolio 81 .80 .14 83 .31
1
183113356314954186603186715474
100.00100.00
Total 0689 68956. 700010 886817 98634. 088183
%%
66.7154.17.5316.37
By category of provision for bad debts on an individual basis: accounts receivable with individually accrued bad debt
provisions where the individual amount is not material
Unit: RMB
Opening balance Closing balance
Name Reason forBad debt Bad debt
Book balance Book balance Accrued Ratio making bad
provision provision
debt provision
Expected to
Customer 1 48810663.55 48810663.55 48810663.55 48810663.55 100.00%
be unable to
126Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
recover
Expected to
Customer 2 20596426.50 20596426.50 20596426.50 20596426.50 100.00% be unable to
recover
Expected to
Customer 3 17364187.02 17364187.02 17364187.02 17364187.02 100.00% be unable to
recover
Expected to
Customer 4 14869091.58 14869091.58 14869091.58 14869091.58 100.00% be unable to
recover
Expected to
Customer 5 9567678.70 2671784.64 8401517.20 3120135.33 37.14% be partially
unrecoverable
Other Expected to
sporadic 63201694.04 63201694.04 92572162.25 92312616.75 99.72% be partially
customers unrecoverable
174409741.3167513847.3202614048.1197073120.7
Total
9303
Provision for bad debts by category name based on combination: aging analysis method combination
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrued Ratio
Within 1 year (including 1
13113932248.35655675078.425.00%
year)
1 to 2 years 1642621919.34 164262191.93 10.00%
2 to 3 years 853998352.49 256199505.75 30.00%
3 to 4 years 620409070.02 310204535.01 50.00%
4 to 5 years 522694018.56 418155214.85 80.00%
5 years or above 1354799309.85 1354799309.85 100.00%
Total 18108454918.61 3159295835.81
If the bad debt provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable □Not Applicable
(3) Provision for Bad Debts Accrued Recovered Or Reversed in This Period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category
Balance Recovered orAccrued Written Off Others Balance
Reversed
Bad debt 3186798634 215915628.1 - 3356368956
570266.2033999183.56
provision .16 6 11775856.02 .54
3186798634215915628.1-3356368956
Total 570266.20 33999183.56.16611775856.02.54
Significant amount of recovered or reversed bad debt provision in this period:
None
(4) Accounts Receivable Actually Written Off in This Period
Unit: RMB
127Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Item Write-off amount
Accounts receivable actually written off 33999183.56
Write-off of important accounts receivable:
None
(5) Accounts Receivable and Contract Assets of the Top Five Closing Balances Collected by
Debtors
Unit: RMB
Closing balance
As a percentage of provision for
Closing balance
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
1162955865.71162955865.7
Customer 1 6.30% 58148360.20
44
Customer 2 418578174.23 2731479.77 421309654.00 2.28% 174142446.20
Customer 3 331533107.03 19920107.00 351453214.03 1.90% 221125539.55
Customer 4 333464240.81 333464240.81 1.81% 16673212.04
Customer 5 303741927.60 5007425.01 308749352.61 1.67% 167878400.56
2550273315.42577932327.1
Total 27659011.78 13.96% 637967958.55
19
5. Contract Assets
(1) Contract Assets
Unit: RMB
Closing Balance Opening Balance
Item Bad Debt Bad Debt
Book Balance Book Value Book Balance Book Value
Provision Provision
Completed
but unsettled 11015854.97 112845.61 10903009.36 15041352.56 152441.81 14888910.75
assets
O&M service 26872111.51 276859.49 26595252.02 6997228.51 69972.29 6927256.22
Quality
guarantee 56365684.64 8479177.99 47886506.65 48526974.86 7022413.86 41504561.00
deposit
Total 94253651.12 8868883.09 85384768.03 70565555.93 7244827.96 63320727.97
(2) Disclosure by Bad Debt Provision Method
Unit: RMB
Closing balance Opening balance
Bad Debt Bad Debt
Categor Book Balance Book Balance
Provision Book Provisiony Book
Proporti Accrued Value Proporti Accrued Value
Amount Amount Amount Amount
on Ratio on Ratio
128Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Provisio
n of bad
debts
94253100.00886888538470565100.007244863320
based 9.41% 10.27%
651.12%83.09768.03555.93%27.96727.97
on
combin
ation
Among them:
Combin
ation of
94253100.00886888538470565100.007244863320
nature 9.41% 10.27%
651.12%83.09768.03555.93%27.96727.97
of the
funds
94253100.00886888538470565100.007244863320
Total 9.41% 10.27%
651.12%83.09768.03555.93%27.96727.97
Provision for bad debts by category based on combination: nature of payment combination
Unit: RMB
Closing Balance
Name
Book Balance Bad Debt Provision Accrued Ratio
Combination of nature of
94253651.128868883.099.41%
the funds
Total 94253651.12 8868883.09
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
Recovered or
Provisions of this Write-off in this
Item reversed during Others Causes
period period
the period
Completed but
unsettled assets 39596.20
O&M service 206887.20
Quality guarantee
deposit 1456827.34 -63.21
Total 1663714.54 39596.20 -63.21 ——
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 1143829632.25 1102535053.89
Total 1143829632.25 1102535053.89
129Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(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 558596970.35
Total 558596970.35
(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 126287033.74
Total 126287033.74
7. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Other Receivables 334692010.47 278640285.60
Total 334692010.47 278640285.60
(1) Other Receivables
1) Other Receivables Categorized by the Nature of the Funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Deposits 123168189.60 128012257.88
Prepaid or advance expense 111440642.36 93857582.93
Equity Transfer Fund 13535580.14 85651915.72
Employee home loan 54449771.00 63390368.00
Others 384199.64 380286.52
Export tax rebate 123685046.05
Total 426663428.79 371292411.05
2) Disclosure by Aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 271844259.73 211656636.96
1 to 2 years 43654977.73 39709164.90
2 to 3 years 23707776.87 23092584.92
3 years or above 87456414.46 96834024.27
3 to 4 years 34944526.85 40476195.33
4 to 5 years 15413882.70 27126624.82
130Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
5 years or above 37098004.91 29231204.12
Total 426663428.79 371292411.05
3) Disclosure by Bad Debt Provision Method
□Applicable □ Not Applicable
Unit: RMB
Closing Balance Opening Balance
Bad Debt Bad Debt
Categor Book Balance Book Balance
Provision
y Book
Provision Book
Proporti Accrued value Proporti Accrued Value
Amount Amount Amount Amount
on Ratio on Ratio
Provisio
n of bad
debts
426663100.0091971334692371292100.0092652278640
based 21.56% 24.95%
428.79%418.32010.47411.05%125.45285.60
on
combin
ation
Among them:
Aging
Analysi
426663100.0091971334692371292100.0092652278640
s 21.56% 24.95%
428.79%418.32010.47411.05%125.45285.60
Portfoli
o
426663100.0091971334692371292100.0092652278640
Total
428.79%418.32010.47411.05%125.45285.60
Provision for bad debts by category name based on combination: aging analysis method combination
Unit: RMB
Closing Balance
Name
Book Balance Bad Debt Provision Accrued Ratio
Within 1 year (including 1
271844259.7313592212.995.00%
year)
1 to 2 years 43654977.73 4365497.77 10.00%
2 to 3 years 23707776.87 7112333.06 30.00%
3 to 4 years 34944526.85 17472263.43 50.00%
4 to 5 years 15413882.70 12331106.16 80.00%
5 years or above 37098004.91 37098004.91 100.00%
Total 426663428.79 91971418.32
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
38787429.0753425641.96439054.4292652125.45
January 01 2026
Balance as of
January 01 2026 in
this period
131Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
--Transfer to phase
-682360.85682360.85
two
--Transfer to phase
-130363.26-10786.46141149.72
three
Provisions of this
3885835.70-3232928.28-180761.96472145.46
period
Write off in this
106243.9514962.504890.00126096.45
period
Other Variations -1026756.14 -1026756.14
Balance as of June
40727540.5750849325.57394552.1891971418.32
302026
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
92652125.45472145.46126096.45-1026756.1491971418.32
provision
Total 92652125.45 472145.46 126096.45 -1026756.14 91971418.32
Significant amount of reversed or recovered 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 126096.45
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
Tax Bureau Export tax rebate 123685046.05 Within 1 year 28.99% 6184252.30
Equity Transfer
Lorex Holdings 13535580.14 3 to 4 years 3.17% 6767790.07
Fund
Longquanyi
Deposits 11832000.00 5 years or above 2.77% 11832000.00
District Finance
132Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Bureau
Chengdu
Hangzhou
Fuyang China Security deposits
4212434.55 Within 1 year 0.99% 210621.73
Resources Gas and advances
Co. Ltd.RMB 400000.00
Daozhen aged 2-3 years
Autonomous and RMB
Deposits 3450000.00 0.81% 3170000.00
County Public 3050000.00
Security Bureau aged over 5
years
Total 156715060.74 36.73% 28164664.10
8. Prepayments
(1) Aging Analysis of Prepayments is as Follows
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 1399903352.25 97.31% 416743268.21 92.05%
1 to 2 years 25250622.29 1.76% 25351403.65 5.60%
2 to 3 years 6442446.95 0.45% 3103159.09 0.68%
3 years or above 6980026.50 0.48% 7540614.88 1.67%
Total 1438576447.99 452738445.83
(2) Advance Payment of the Top Five Closing Balances by Prepayment Parties
Prepayments to the top five prepayment counterparties aggregated RMB 1112609683.19 or 77.34% of the total
prepayment balance.
9. Inventory
Does the company need to comply with disclosure requirements in the real estate industry
No
(1) Categories of Inventories
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Impairment of Impairment of
Item Inventories or Inventories or
Book balance Provision for Book value Book balance Provision for Book value
Impairment of Impairment of
Performance Performance
Cost Cost
3693508105108008674.5358549943021050521082011324330
Raw materials 93727777.62.473.94.29.67
Work-in- 1121604958 13765608.14 1107839349 625385790.4 11118787.84 614267002.6
133Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
progress .08 .94 9 5
Finished 2942558571 121728283.0 2820830288 2500547098 102099530.1 2398447568
goods .19 4 .15 .63 8 .45
Contract
883195532.1848511655.5932642222.5909276895.3
Performance 34683876.52 23365327.20
1955
Costs
Outsourced
205053981.3205053981.3156855493.2156855493.2
work-in-
6666
progress
8845921148278186442.285677347056320482713230311422.86090171290
Total.213.98.224.38
(2) Provision for Impairment of Inventories and Provision for Impairment of Contract
Performance Cost
Unit: RMB
Increase amount for this period Decreased in the current period
Opening Closing
Item
balance Reversals orAccrued Others Others balance
write-offs
108008674.5
Raw materials 93727777.62 26220298.89 12275625.03 -336223.05
3
Work-in-
11118787.841835132.58741827.82-1553515.5413765608.14
progress
Finished 102099530.1 121728283.0
26738572.074441568.112668251.10
goods 8 4
Contract
Performance 23365327.20 13872861.69 2554312.37 34683876.52
Costs
230311422.8278186442.2
Total 68666865.23 20013333.33 778512.51
43
10. Non-current Assets Due within 1 Year
Unit: RMB
Item Closing balance Opening balance
Long-term accounts receivables due
185915256.43209488927.52
within 1 year
Large-denomination certificates of
4418969745.05259071472.11
deposit maturing within one year
Total 4604885001.48 468560399.63
11. Other Current Assets
Unit: RMB
Item Closing balance Opening balance
Contract Acquisition Costs 520580.19
Return cost receivable 17269997.74 10440716.33
Not deducted input tax 507166141.66 459100592.23
Prepaid enterprise income tax 45694002.76 41218310.03
Government bond reverse
34796034.8119110391.10
repurchase
Short-term large-denomination 130716000.00 46572294.52
134Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
certificates of deposit
Issue expenses 3209605.03 2066306.90
Total 739372362.19 578508611.11
12. Long-term Receivables
(1) Long-term Receivables
Unit: RMB
Closing balance Opening balance Range of
Item Book Bad debt Book Bad debt Book discount
Book value
balance provision balance provision value rate
Installment
Payment for 44439373 439669 4105477 4060387
Selling 4.38 4723776.42 957.96 02.13 4508992.32 09.81
Products
Including:
Unrealized 27983907. 27983 4035152 4035152 3.69%-
Financing 20 907.20 9.69 9.69 5.88%
Income
Total 44439373 4723776.42 439669 41054774.38 957.96 02.13 4508992.32
4060387
09.81
(2) Disclosure by Bad Debt Provision Method
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Accrued Proportio Accrued
Amount Proportion Amount value Amount Amount value
Ratio n Ratio
Provision
of bad
debts 4723776 47237 4676538 4508992 4508992 4463902
100.00%1.00%100.00%1.00%
based on 41.58 76.42 65.16 31.82 .32 39.50
combinati
on
Among them:
Combinati
on of 4723776 47237 4676538 4508992 4508992 4463902
100.00%1.00%100.00%1.00%
nature of 41.58 76.42 65.16 31.82 .32 39.50
the funds
4723776472374676538450899245089924463902
Total 100.00% 1.00% 100.00% 1.00%
41.5876.4265.1631.82.3239.50
Provision for bad debts by category based on combination: nature of payment combination
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrued Ratio
Combination of nature of
472377641.584723776.421.00%
the funds
Total 472377641.58 4723776.42
135Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(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
4508992.32219414.05-4629.954723776.42
provision
Total 4508992.32 219414.05 -4629.95 4723776.42
Significant amount of reversed or recovered bad debt provision in this period:
None
13. Long-term Equity Investments
Unit: RMB
Decrease/Increase in the current period
Investm
Opening ent Cash Closing
balance
Opening profit Adjustm dividend Provis
balance
Closing
of
The invested balance Investm Investm and loss ent on s or ion for
of
balance
provisio Otherents ent recogniz other profit impair provisioentity (book
n for changes Others
(book
value) increase decreas ed compre declare ment
n for
in equity value)impairm d ed under hensive d to accru decline
ent the income distribut ed in value
equity e
method
I. Joint Ventures
II. Joint Ventures
-
52217232773542685
Intelbras S.A. 1226115
687.10650.61185.40
2.31
Ruicity Digital
2478719886194284421519886
Technology
307.19629.20219.60526.79629.20
Co. Ltd.Guangdong
-
Zhishi Digital 177727.1
177727
Technology 9.19
Co. Ltd.Ningbo Huayan
Chuangxi
Venture Capital -
7734022873577419
Investment 149490
174.56.40419.58
Partnership .38
(Limited
Partnership)
Dezhou Shuzhi
-
Information 34034 33024
100945
Technology 01.19 55.37.82
Co. Ltd.Guangxi FTZ
69841149433.747845
Huaqin.8338.21
Wisdom Park
136Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Technology
Research
Institute Co.Ltd.Ningbo Cida
Yongshun -
344668
Intelligent 344668.2.29
Technology 9
Co. Ltd.Zhejiang
Huachuang -
8761684701
Vision 29150
866.89844.61
Technology 22.28
Co. Ltd.Huahongchang
Intelligent -
Technology 94995. 94995.97
(Jiangsu) Co. 97
Ltd.Shenzhen
Aohua Urban -
1539214200
Operation and 119188
03.1014.53
Development .57
Co. Ltd.Rudong
Jintianhua -
926674910940
Security 15733..01.53
Technology 48
Co. Ltd.Bozhou Boda
Yongshun 76938. 7965.1 84904.Technology 88 3 01
Co. Ltd.Zhejiang
Gaohua AIoT 70164 882391 78988
Technology 43.52 .70 35.22
Co. Ltd.--
72557819886194283086376338619886
Subtotal 149490 1233309
108.27629.20219.60231.20971.25629.20.387.44
--
72557819886194283086376338619886
Total 149490 1233309
108.27629.20219.60231.20971.25629.20.387.44
14. Other Non-current Financial Assets
Unit: RMB
Item Closing balance Opening balance
Investment in equity instruments 76905772.45 80563656.86
Investment in financial products 2919102368.54 1908522640.26
Total 2996008140.99 1989086297.12
137Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
15. Investment Properties
(1) Investment Properties Measured by Cost Method
□Applicable □ Not Applicable
Unit: RMB
Item Buildings and constructions Total
I. Original Book Value
1. Opening Balance 232764091.02 232764091.02
2. Increased in the Current Period 14374441.39 14374441.39
(1) Purchase
(2) Transfer of Fixed Assets/Intangible Assets 14374441.39 14374441.39
(3) Increase due to business combinations
3. Decreased in the Current Period 3350673.72 3350673.72
(1) Disposal 3350673.72 3350673.72
(2) Transfer to Fixed Assets/Intangible Assets
(3) Other Transfer-out
4. Closing Balance 243787858.69 243787858.69
II. Accumulated Depreciation and
Accumulated Amortization
1. Opening Balance 75514180.24 75514180.24
2. Increased in the Current Period 12396244.52 12396244.52
(1) Accrual or Amortization 4458562.32 4458562.32
(2) Transfer of Fixed Assets/Intangible Assets 7937682.20 7937682.20
(3) Increase due to business combinations
3. Decreased in the Current Period 154735.99 154735.99
(1) Disposal 154735.99 154735.99
(2) Transfer to Fixed Assets/Intangible Assets
(3) Other Transfer-out
4. Closing Balance 87755688.77 87755688.77
III. Impairment Provision
1. Opening Balance 28496793.62 28496793.62
2. Increased in the Current Period
(1) Accrual
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 127535376.30 127535376.30
2. Opening Balance on Book Value 128753117.16 128753117.16
138Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(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 6607771.60 Processing
16. Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Fixed Assets 5988770084.01 6136201592.87
Total 5988770084.01 6136201592.87
(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 6304417901.3
6 727436482.40 30823288.32 2063703345.19 9126381017.27Balance
2. Increased in
the Current 741315.37 8938736.20 5858037.89 164614606.20 180152695.66
Period
(1) Purchase 8938736.20 5858037.89 164614606.20 179411380.29
(2) Transferred
From 741315.37 741315.37
Construction in
Progress
(3) Increase due
to business
combinations
(4) Transfer of
Investment
Properties
3. Decreased in
the Current 14478594.41 1060778.25 757173.33 26388419.15 42684965.14
Period
(1) Disposal or 104153.02 1060778.25 757173.33 26388419.15 28310523.75
Scrapping
(2) Transfer to
Investment Real 14374441.39 14374441.39
Estate
(3) Disposal of
139Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Subsidiaries
4. Currency
Translation -224298.02 -117070.70 -260817.74 -2530964.01 -3133150.47
Difference
5. Closing 6290456324.3
0 735197369.65 35663335.14 2199398568.23 9260715597.32Balance
II. Accumulated
Depreciation
1. Opening 1220755974.2
2 317919268.37 24729786.20 1426774395.61 2990179424.40Balance
2. Increased in
the Current 150069783.90 33727473.55 1203698.94 132165517.35 317166473.74
Period
(1) Accrual 150069783.90 33727473.55 1203698.94 132165517.35 317166473.74
(2) Transfer of
Investment
Properties
3. Decreased in
the Current 7945679.58 507192.34 725050.30 24185236.09 33363158.31
Period
(1) Disposal or 7997.38 507192.34 725050.30 24185236.09 25425476.11
Scrapping
(2) Transfer to
Investment Real 7937682.20 7937682.20
Estate
(3) Disposal of
Subsidiaries
4. Currency
Translation -81831.23 -114509.70 -193982.93 -1646902.66 -2037226.52
Difference
5. Closing 1362798247.3
1 351025039.88 25014451.91 1533107774.21 3271945513.31Balance
III. Impairment
Provision
1. Opening
Balance
2. Increased in
the Current
Period
(1) Accrual
3. Decreased in
the Current
Period
(1) Disposal or
Scrapping
4. Closing
Balance
IV. book value
1. Closing
Balance on Book 4927658076.99 384172329.77 10648883.23 666290794.02 5988770084.01
Value
140Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2. Opening
Balance on Book 5083661927.14 409517214.03 6093502.12 636928949.58 6136201592.87
Value
(2) Fixed Assets Rented out under Operating Leases
Unit: RMB
Item Book Value at the End of the Period
Buildings and constructions 1290445538.71
Electronic and other equipment 28230168.40
(3) Fixed Assets with Certificates of Title Not Granted
Unit: RMB
Reasons for certificates of title not
Item Book value
obtained
In the process of obtaining the real
Wuzhou Building in Guangxi 34603594.44
estate certificates
17. Construction in Progress
Unit: RMB
Item Closing balance Opening balance
Construction in Progress 3449439.34 7264951.14
Total 3449439.34 7264951.14
(1) Construction in Progress
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Others 3449439.34 3449439.34 7264951.14 7264951.14
Total 3449439.34 3449439.34 7264951.14 7264951.14
(2) Impairment Test of Construction in Progress
□ Applicable □Not Applicable
18. Right-of-use Assets
(1) Right-of-use Assets
Unit: RMB
Item Buildings and constructions Machinery and equipment Total
I. Original Book Value
1. Opening Balance 481046924.45 8665358.74 489712283.19
2. Increased in the Current 76103024.05 76103024.05
141Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Period
(1) Leased during the Year 76103024.05 76103024.05
(2) Increase due to
business combinations
3. Decreased in the Current 37194620.34 111961.08 37306581.42
Period
(1) Expiration or Early
Termination of Lease 37194620.34 111961.08 37306581.42
Contracts
(2) Disposal of Subsidiaries
(3) Other decreases
4. Currency Translation -9111200.92 -9111200.92
Difference
5. Closing Balance 510844127.24 8553397.66 519397524.90
II. Accumulated
Depreciation
1. Opening Balance 213519110.57 3791674.38 217310784.95
2. Increased in the Current 58192855.93 406140.26 58598996.19
Period
(1) Accrual 58192855.93 406140.26 58598996.19
(2) Increase due to
business combinations
3. Decreased in the Current 34494184.06 111961.08 34606145.14
Period
(1) Expiration or Early
Termination of Lease 34494184.06 111961.08 34606145.14
Contracts
(2) Disposal of
Subsidiaries
4. Currency Translation -4212427.73 -4212427.73
Difference
5. Closing Balance 233005354.71 4085853.56 237091208.27
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 277838772.53 4467544.10 282306316.63
Value
2. Opening Balance on 267527813.88 4873684.36 272401498.24
Book Value
142Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Impairment Test of Right-to-use Assets
□ Applicable □Not Applicable
19. Intangible Assets
(1) Details of Intangible Assets
Unit: RMB
Non-patented Software
Item Land use rights Software Total
technology copyright
I. Original Book Value
1. Opening Balance 630113324.75 72195530.88 199369095.68 4000000.00 905677951.31
2. Increased in the Current 58416.00 4921464.46 4979880.46
Period
(1) Purchase 3129011.63 3129011.63
(2) Internal Research And
Development
(3) Increase due to business
combinations
(4) Construction in Progress 1792452.83 1792452.83
Transferred in
(5) Others 58416.00 58416.00
3. Decreased in the Current 38631.08 1862115.56 1900746.64
Period
(1) Disposal 38631.08 1862115.56 1900746.64
(2) Transfer to Investment
Real Estate
(3) Disposal of Subsidiaries
4. Currency Translation -23420.00 -36860.43 -60280.43
Difference
5. Closing Balance 630109689.67 72195530.88 202391584.15 4000000.00 908696804.70
II. Cumulative Amortization
1. Opening Balance 98793918.89 63901632.34 182423020.38 4000000.00 349118571.61
2. Increased in the Current 7034439.67 1586776.79 11139128.81 19760345.27
Period
(1) Accrual 7034439.67 1586776.79 11139128.81 19760345.27
(2) Transfer of Investment
Properties
3. Decreased in the Current 5150.77 1676579.38 1681730.15
Period
(1) Disposal 5150.77 1676579.38 1681730.15
(2) Transfer to Investment
Real Estate
(3) Disposal of Subsidiaries
4. Currency Translation -38271.37 -38271.37
Difference
5. Closing Balance 105823207.79 65488409.13 191847298.44 4000000.00 367158915.36
143Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
524286481.88 6707121.75 10544285.71Value 541537889.34
2. Opening Balance on Book
531319405.86 8293898.54 16946075.30Value 556559379.70
(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
Increased in the current Decreased in the
The invested entity or period current period
Opening Closing
matters which formed
balance Generated from
goodwill Dispos
balance
business
al
combination
Dahua Technology
6615294.186615294.18
Italy S.R.L.Total 6615294.18 6615294.18
(2) Impairment Provision for Goodwill
Unit: RMB
The invested entity Increased in the current
Opening Decreased in the current period Closing
or matters which period
balance balance
formed goodwill Accrued Disposal
Dahua Technology
0.000.00
Italy S.R.L.Total 0.00 0.00
(3) Information about the Asset Group Or Asset Group Combination Where the Goodwill Is
Located
Is it consistent
Composition and basis of the
Name Operational subsection and basis with the
asset group or its combination
previous year
144Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The asset group related to the
goodwill arising from the
Recognition is based on whether
acquisition of Dahua Technology
Dahua Technology Italy the main cash inflow generated is
Italy S.R.L. represents its long- Yes
S.R.L. independent of other asset groups
term assets as of June 30 2026
or their combinations.including fixed assets and
intangible assets.
(4) Determination Method of Recoverable Amount
The recoverable amount is determined as the net of fair value less costs of disposal.□ Applicable □Not Applicable
The recoverable amount is determined as the present value of the expected future cash flows.□Applicable □ Not Applicable
Unit: RMB
Determinati
Number on basis of
Key Key
of years key
Recoverabl Impairme parameters of parameters of
Item Book value of the parameters
e amount nt amount the forecast the steady
forecast in the
period period
period steady
period
Predict
Revenue Revenue
cautiously
growth rate of growth rate of
as the
Dahua 7%-9% over 0% over the
14049460 19635499 2026– income will
Technology 0.00 the forecast steady
0.08 0.99 2030 not increase
Italy S.R.L. period; period;
in the
discount rate discount rate
steady
of 15.60% of 15.60%
period.
1404946019635499
Total 0.00
0.080.99
21. Long-term Deferred Expenses
Unit: RMB
Amortization
Increase amount Other Amounts
Item Opening balance Expense for the Closing balance
for this period Decreased
Current Period
Improvement
expenditure on
fixed assets 41231666.72 23644261.15 13082589.83 419046.16 51374291.88
leased under
operating leases
Renovation Cost 36633426.68 41528773.70 15712111.00 62450089.38
Total 77865093.40 65173034.85 28794700.83 419046.16 113824381.26
22. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Not Written Off
Unit: RMB
145Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Closing balance Opening balance
Item Deductible temporary Deferred Income Tax Deductible temporary Deferred Income Tax
difference Assets difference Assets
Provision for
2923518104.88542848858.182804515864.11520366877.00
Impairment of Assets
Unrealized Profit
from Internal 810367251.90 164789106.17 640351975.11 134358284.38
Transactions
Deductible Losses 550717655.05 97293079.15 523267541.35 92650683.58
Equity incentive
6517803.571169611.08
expense
Estimated Liabilities 208367044.99 43296648.66 288239468.47 54998023.73
Employee Benefits
240482742.6739405980.60241829839.9139682411.41
Payable
Costs from Tax
Increase Due to 472137540.17 91886695.90 426348718.14 83239280.17
Absence of Invoice
Book-tax difference
124344780.2525289158.74166556488.5731294834.36
of lease liabilities
Investments in non-
385820123.3957873018.51412737806.4261910670.96
monetary assets
Others 122455684.86 21038536.20 130123763.46 22755216.95
Total 5844728731.73 1084890693.19 5633971465.54 1041256282.54
(2) Non-offset Deferred Income Tax Liabilities
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Deferred Income Tax Taxable temporary Deferred Income Tax
difference Liabilities difference Liabilities
The gross profit of
40023545.647086616.4945047427.137643637.83
sales by installments
Gain or loss on
1206930191.80181039528.77812175389.67121826308.45
changes in fair value
Book-tax difference
120552007.5224537979.32161709026.5330386416.87
of right-of-use assets
Investments in non-
161558249.0824233737.36215410998.7832311649.82
monetary assets
Others 22960841.42 3694280.42 26366901.59 6052869.32
Total 1552024835.46 240592142.36 1260709743.70 198220882.29
(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
136052449.06948838244.13139525091.34901731191.20
Assets
Deferred Income Tax 136052449.06 104539693.30 139525091.34 58695790.95
146Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Liabilities
(4) Details of Unrecognized Deferred Tax Assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 910184168.71 800065765.51
Deductible Losses 3098732587.08 2991708946.76
Total 4008916755.79 3791774712.27
(5) Details of Unrecognized Deferred Tax Assets in Respect of Deductible Losses Expiring in
The Following Years
Unit: RMB
Year Closing Balance Opening Balance Notes
2026284183807.43344395503.51
2027403080761.37403418350.40
2028381330397.93382931671.61
202993640020.7293880949.56
2030141076731.65220812835.13
The year 2031 and beyond 1795420867.98 1546269636.55
Total 3098732587.08 2991708946.76
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 6733872.94 6733872.94 7301643.57 7301643.57
Costs
Contract
55087771.337558677.6847529093.6560266927.205769879.0354497048.17
Assets
Large-
denomination
310263365831026336586989749581.6989749581
certificates of.92.9288.88
deposit from
banks
Prepayments
for purchase
50612722.1750612722.1730118385.7630118385.76
of engineering
equipment
Prepayments
for acquisition 17417740.27 17417740.27 14071551.00 14071551.00
of real estate
Others 564230.45 564230.45 178913.33 178913.33
323304999632254913187101687002.7095917123
Total 7558677.68 5769879.03.08.4074.71
147Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
24. Assets with restricted ownership or rights of use
Unit: RMB
Book Value at Opening
Item the End of the Balance on Type of Restriction Restrictions
Period Book Value
Guarantee Letter Security Deposit and
Monetary Fund 64638388.96 87133250.44 Restricted use
Other Restricted Funds
Specialized equipment leased out under
Fixed Assets 27491280.97 14728089.20 Restricted use
operating leases
Notes Pledged notes used for issuing banker's
Receivable and acceptance endorsed or discounted but
952816775.49 952005844.59 Restricted use
Receivables not yet matured or terminated and
Financing recognized
Accounts
7810723.52 3528596.00 Factoring of Accounts Receivable Restricted use
Receivable
1052757168.91057395780.2
Total
43
25. Short-term Loans
(1) Categories of Short-term Loan
Unit: RMB
Item Closing balance Opening balance
Pledged loans 2240000000.00 200000000.00
Fiduciary loans 30000000.00
Factoring loans in the supply chain
8221814.233714311.58
finance
Interest payable for short-term loan 15825.00
Total 2278237639.23 203714311.58
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) As at the end of the reporting period the Group had no overdue short-term loans.
26. Notes payable
Unit: RMB
Types Closing balance Opening balance
Commercial acceptance bill 2006847243.38 2158881943.09
Banker's Acceptance 1611029137.21 1500916808.79
Total 3617876380.59 3659798751.88
27. Accounts Payable
(1) Breakdown of Accounts Payable
Unit: RMB
148Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Item Closing balance Opening balance
Payment for purchase of materials 4870720188.79 4830006948.39
Payment for engineering equipments 184639520.68 302655782.39
Total 5055359709.47 5132662730.78
(2) Significant Accounts Payable Aged Over 1 Year or Overdue
No significant accounts payable aged over 1 year or overdue.
28. Other Payables
Unit: RMB
Item Closing balance Opening balance
Other Payables 522404933.34 470148655.21
Total 522404933.34 470148655.21
(1) Other payables
1) Other Payables Listed by Nature Of Funds
Unit: RMB
Item Closing balance Opening balance
Temporarily borrowed and advance
364930000.12326933622.05
payments
Deposits 141848727.32 127017737.92
Others 15626205.90 16197295.24
Total 522404933.34 470148655.21
2) Other significant accounts payable aged over 1 year or overdue
No significant other payables aged over 1 year or overdue
29. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Payments for sales of goods 603042797.52 486271439.35
Pre-payments from construction
656877259.01629106483.73
projects
Sales of points 19146174.47 27200670.29
Service expense collected in
108629.1299108.74
advance
Total 1279174860.12 1142677702.11
30. Payroll Payable
(1) Breakdown of employee benefits payable
Unit: RMB
149Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
I. Short-term
1989900126.543479404866.804200798285.091268506708.25
employee benefits
II. Post-employment
benefits – defined 16225150.57 306725117.15 305525503.00 17424764.72
contribution plans
III. Dismissal Welfare 6303620.81 56232571.96 62514162.26 22030.51
Total 2012428897.92 3842362555.91 4568837950.35 1285953503.48
(2) Breakdown of short-term employee benefits
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
1. Wages bonuses
allowances and 1697723901.56 2983729141.56 3740666819.15 940786223.97
subsidies
2. Staff benefits
60089457.9460089457.94
expenses
3. Social Insurance
3111186.62169872623.85169412877.093570933.38
Contributions
Including: medical
2506261.26161473856.77160940438.453039679.58
insurance
Work injury insurance
530297.907661928.037663938.83528287.10
premium
Maternity insurance 74627.46 736839.05 808499.81 2966.70
4. Housing Funds 155096.06 211926407.80 211928502.84 153001.02
5. Labor Union and
288909942.3053787235.6518700628.07323996549.88
Education Funds
Total 1989900126.54 3479404866.80 4200798285.09 1268506708.25
(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
15008548.50292271563.19291198665.6116081446.08
Insurance
2. Unemployment
1216602.0714453553.9614326837.391343318.64
Insurance
Total 16225150.57 306725117.15 305525503.00 17424764.72
31. Taxes and Fees Payable
Unit: RMB
Item Closing balance Opening balance
VAT 190700031.46 209342805.30
150Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Enterprise Income Tax 203185685.64 86080351.68
Personal income tax 20281644.36 29727426.88
Urban Maintenance and Construction
12348072.3313112366.70
Tax
Education surcharges (including local
8832158.659383151.61
education surcharges)
Stamp duty 6848597.33 7563794.73
Property tax 21477084.58 33767374.83
Others 18935665.79 7850645.65
Total 482608940.14 396827917.38
32. Current Portion of Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
Lease liabilities due within 1 year 105806277.63 103124582.64
Provisions – current portion 145078676.01 143732222.66
Total 250884953.64 246856805.30
33. Other Current Liabilities
Unit: RMB
Item Closing balance Opening balance
To-be-transferred sales taxes in 21065067.91 25278160.33
installments
To-be-transferred sales taxes of 141280078.73 113045980.31
contract liabilities
Notes not derecognised 44103049.97 29430244.47
Total 206448196.61 167754385.11
34. Lease Liabilities
Unit: RMB
Item Closing balance Opening balance
Lease payments 290080960.31 284143141.96
Less: Unrecognized financing costs 14637149.32 15619385.67
Less: Lease liabilities due within 1
year 105806277.63 103124582.64
Total 169637533.36 165399173.65
151Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
35. Estimated Liabilities
Unit: RMB
Item Closing balance Opening balance Causes
Pending litigation 26582816.42 75104167.89 Pending litigation
Others 1425412.39 2264406.23 Loss-making contract
Expected after-sales After-sales maintenance
113163905.46128047750.56
maintenance cost costs
Total 141172134.27 205416324.68
36. Deferred Income
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance Causes
current period current period
Received
Government government
170075423.697102720.61162972703.08
grants grants related to
assets
Total 170075423.69 7102720.61 162972703.08
37. Other Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
To-be-transferred sales taxes in
48291408.4350758345.65
installments
Others 1269404.65 1269404.65
Total 49560813.08 52027750.30
38. Share Capital
Unit: RMB
Changes during the period
Shares
Opening Shares converted
Bonus Closing balancebalance newly from Others Subtotal
shares
issued capital
reserves
Total 3286755574.0 -
-17493500.003269262074.00
shares 0 17493500.00
Other notes:
In accordance with the Rules for Share Repurchase of Listed Companies and other applicable regulations the
Company cancelled 17493500 repurchased shares during the period reducing share capital by RMB 17493500.00;
the share capital after the change was RMB 3269262074.00.
152Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
39. Capital Reserves
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
Capital premium
(capital share 6945023251.90 522549316.43 6422473935.47
premium)
Other capital
288166257.7243826212.1211435285.82320557184.02
reserves
Total 7233189509.62 43826212.12 533984602.25 6743031119.49
Other notes including increases or decreases in this period and their reasons:
(1) During the current period the Company recognized employee services settled by equity instruments in the amount
of RMB 43862022.48 which increased capital reserves (other capital reserves) by RMB 43862022.48; the portion
attributable to minority shareholders arising from share-based payments amounted to RMB 11435285.82 which
decreased capital reserves (other capital reserves) by RMB 11435285.82.
(2) In accordance with the 2026 Employee Stock Ownership Plan (Draft) the 2025 AGM resolution and the resolution
of the 21st meeting of the eighth Board of Directors the Company established an employee stock ownership plan
using shares repurchased in 2023. 1030 incentive participants subscribed for 19819601 shares under the plan; the
Company actually received subscription proceeds of RMB 189871777.58 from the incentive participants and offset
capital reserves (share premium) by RMB 230087433.69.
(3) In accordance with the Rules for Share Repurchase of Listed Companies and other applicable regulations the
Company cancelled 17493500 repurchased shares during the period reducing share capital by RMB 17493500.00
and reducing capital reserves (share premium) by RMB 292459687.00.
(4) The Company's share of changes in other owners' equity of its associates under the equity method during the
period resulted in an increase in capital reserves (other capital reserves) by RMB -149490.38.
(5) Some employees of the company indirectly acquired part of the equity interest in Zhejiang Huanuokang
Technology Co. Ltd. which is controlled by the actual controller involving share-based payment arrangements. Such
share-based payment expenses were recognized as capital investment and included in capital reserves (other capital
reserves) in the amount of RMB 113680.02.
(6) Transaction costs related to the Company's share repurchases during the period amounted to RMB 2195.74
reducing capital reserves (share premium) by RMB 2195.74.
40. Treasury Share
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
Share repurchase 709079918.27 20832480.00 729912398.27
Total 709079918.27 20832480.00 729912398.27
Other notes including increases or decreases in this period and their reasons:
(1) During the period the Company repurchased 1132200 shares at RMB 20834675.74 (including transaction costs
of RMB 2195.74) increasing treasury shares by RMB 20832480.00.
(2) During the period the Company established an employee stock ownership plan using shares repurchased in 2023
with 1030 incentive participants subscribing to 19819601 shares of the plan reducing treasury shares by RMB
419959211.27.
(3) In accordance with the Rules for Share Repurchase of Listed Companies and other applicable regulations the
Company cancelled 17493500 repurchased shares during the period decreasing treasury shares by RMB
309953187.00.
41. Other Comprehensive Income
Unit: RMB
Opening Amount Occurred in the Current Period Closing
Item
balance Before tax Less: Less: Less: Attributable to Attributabl balance
153Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
balance in recorded Recorded Incom the Company e to the
this period into other into other e Tax after tax minority
comprehe comprehe Expen sharehold
nsive nsive se ers after
incomes incomes tax
in in
previous previous
period and period and
transferre transferre
d to P/L in d to
current retained
period income in
current
period
Other
Comprehe
nsive
Income -
1233402-8154113
That Will 4181104 -11975.38
02.2241799067.834.39
Be 3.21
Reclassifi
ed into
P/L
Including:
Foreign
currency -
1233402-8154113
financial 4181104 -11975.38
02.2241799067.834.39
statement 3.21
translation
difference
Total other
-
comprehe 1233402 - 8154113
4181104-11975.38
nsive 02.22 41799067.83 4.39
3.21
income
42. Surplus reserve
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
43. Undistributed Profits
Unit: RMB
Item Current Period Previous Period
Undistributed Profit before
Adjustment at the End of Previous 26175119977.18 24388130399.78
Period
Undistributed Profit after Adjustment
26175119977.1824388130399.78
at the Start of the Period
154Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Add: net profit attributable to parent
2382974277.662475566750.61
company's owner in current period
Less: Payable Dividends on Ordinary
1202293715.011492529280.19
Shares
Add: Common stock dividends
corresponding to repurchase and 22951560.24
cancellation of restricted stocks
Undistributed Profit at the End of the
27355800539.8325394119430.44
Period
44. 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
Revenue Cost Revenue Cost
Principal operations 16568231185.79 9424633447.83 14968260816.53 8715558661.71
Other operations 135463079.59 86814222.30 213068834.60 148966856.98
Total 16703694265.38 9511447670.13 15181329651.13 8864525518.69
(2) Information Related to Operating Revenue and Operating Cost (by product)
Unit: RMB
Amount Occurred in the Current Period
Item
Revenue Cost
AIoT Products and Solutions 13935660093.26 7725769457.27
Including: Software Business 997915436.95 345673503.38
Innovative Businesses 2602098202.02 1675677072.25
Others 165935970.10 110001140.61
Total 16703694265.38 9511447670.13
(3) Information Related to Operating Revenue and Operating Cost (by Region)
Unit: RMB
Amount Occurred in the Current Period
Item
Revenue Cost
Domestic 8627526794.09 5265993259.91
Overseas 8076167471.29 4245454410.22
Total 16703694265.38 9511447670.13
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.
155Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The Company recognizes income from the sales of goods when control of the goods passes i.e. when the goods are
delivered to the counterparty's designated location or to the counterparty's designated carrier or when they are
delivered to the counterparty for acceptance.The Company identifies part of the business as a performance obligation to be fulfilled within a certain period of time
according to the nature of the business. The Company shall recognize the income according to the performance
progress within that period of time except where the performance progress cannot be reasonably recognized. The
Company employs the output method or input method to determine the performance progress. If the performance
progress cannot be reasonably recognized and the costs incurred are expected to be compensated the income shall
be recognized according to the amount of costs incurred until the performance progress can be reasonably recognized.
45. Taxes and Surcharges
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Urban Maintenance and Construction
47312389.3041025980.71
Tax
Property tax 29621505.50 26572371.68
Land usage tax 4213305.44 4019420.15
Vehicle and vessel use tax 13469.13 17981.42
Stamp duty 13049718.87 10981169.68
Others 1738309.30 1962755.18
Education surcharges (including local
33816457.7229259041.46
education surcharges)
Total 129765155.26 113838720.28
46. Administrative Expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor costs 415008970.21 361296116.54
Depreciation cost and asset
93312204.6672114240.90
amortization
Administrative and office expenses 37322382.82 38716283.75
Consumables and service fees 23482407.77 24460467.30
Knowledge resource fees 26146644.03 33019620.16
Traveling expense 5536935.05 5974900.96
Entertainment expenses 6330201.77 8020335.93
Others 8544924.36 11080238.03
Total 615684670.67 554682203.57
47. Selling expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor costs 1569398377.50 1377377320.10
After-sales service expenses 90295906.33 113720833.10
Freight and vehicle expenses 25471029.27 23888020.91
Marketing expenses 115833995.23 194071106.82
Administrative and office expenses 84202569.71 86075868.80
156Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Traveling expense 123174324.69 122407779.64
Entertainment expenses 89789108.94 84748855.54
Taxation and insurance expense 24729946.31 19954025.51
Communication expense 13225612.99 14296073.07
Knowledge resource fees 21021808.25 21281671.69
Depreciation cost and asset
87389985.9886258462.48
amortization
Others 18119424.11 19402091.77
Total 2262652089.31 2163482109.43
48. Research and development expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor costs 1751570624.16 1733489686.05
Research consumables and service
112900848.91116180926.88
fees
Depreciation cost and asset
88469497.4682602799.06
amortization
Traveling expense 19855840.64 23404093.89
Administrative and office expenses 19301987.31 20292959.24
Others 7076175.81 8434957.98
Total 1999174974.29 1984405423.10
49. Financial Expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Interest expense 20692904.09 -15628113.44
Including: Interest expense on lease
4378437.825334929.02
liabilities
Less: interest income 172481527.64 153226904.60
Foreign exchange gains and losses 378517418.09 -251654553.85
Others 7523601.70 12224138.97
Total 234252396.24 -408285432.92
50. Other income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Sources of other incomes
Period Period
Government grants 550966973.05 506967550.43
Additional input VAT deduction 31474.63 1175207.66
Personal income tax withholding
7834288.498875210.60
commission
Others 1687400.00 1885107.24
Total 560520136.17 518903075.93
157Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
51. Gains on Changes in Fair Value
Unit: RMB
Source of the gains on changes in Amount Occurred in the Current Amount Occurred in the Previous
fair value Period Period
Trading Financial Assets 6676988.70 -106293552.37
Trading Financial Liabilities 471146.84
Other Non-current Financial Assets 397127926.96 185399363.64
Total 403804915.66 79576958.11
52. Investment Income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Investment income from long-term
equity investments accounted for 30863231.20 10798379.54
using the equity method
Gains on disposal of long-term equity
767048.71484487619.90
investments
Investment income from financial
assets held for trading during the 5438319.07 45000.00
holding period
Gains on disposal of financial assets
11852894.58109943346.54
held for trading
Gain on debt restructuring -13393578.78 -7664077.54
Investment income of other non-
current financial assets during the 25472.14 -49372.45
holding period
Investment income from reverse
350545.941203179.63
repurchase of treasury bonds
Gains on derecognition of financial
-537571.20-958424.58
assets
Total 35366361.66 597805651.04
53. Credit Impairment Losses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Bad debt losses on notes receivable 4374779.35 -20499558.74
Bad debt losses on accounts
-215345361.96-155091122.96
receivable
Bad debt losses on other receivables -472145.46 -20180642.01
Bad debt losses on long-term
-37295.111228191.40
receivables
Total -211480023.18 -194543132.31
158Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
54. Asset Impairment Losses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Inventory write-down and impairment
-66241830.68-45787863.18
losses on contract fulfillment costs
Impairment losses on contract assets -3412916.99 2634658.52
Total -69654747.67 -43153204.66
55. Gains on disposal of assets
Unit: RMB
Sources of gains on disposal of Amount Occurred in the Current Amount Occurred in the Previous
assets Period Period
Gains on disposal of property
electronic equipment and other fixed 1040833.97 -188828.42
assets
Gains on disposal of right-of-use
671760.90769849.81
assets
Total 1712594.87 581021.39
56. Non-operating Revenue
Unit: RMB
Amount Occurred in the Amount Occurred in the Amount included in non-
Item
Current Period Previous Period recurring gains and losses
Gains/Losses on
retirement of non-current 2647510.59 1218663.35 2647510.59
assets
Others 4677488.83 5195968.76 4677488.83
Total 7324999.42 6414632.11 7324999.42
57. Non-operating Expenses
Unit: RMB
Amount Occurred in the Amount Occurred in the Amount included in non-
Item
Current Period Previous Period recurring gains and losses
Donations 607256.99 1617531.25 607256.99
Water conservancy fund 297941.63 297125.47
Gains/Losses on
retirement of non-current 2033083.73 922191.16 2033083.73
assets
Others 2307867.38 2173377.84 2307867.38
Total 5246149.73 5010225.72 4948208.10
159Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
58. Income Tax Expense
(1) Income Tax Expense
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Current income tax expense 230082269.02 156792890.96
Deferred income tax expense -5949852.60 113777854.98
Total 224132416.42 270570745.94
(2) Reconciliation of accounting profit and income tax expense
Unit: RMB
Item Amount Occurred in the Current Period
Total Profit 2673065396.68
Income tax expense calculated at statutory/applicable tax
400959809.50
rate
Impact by applying different tax rates to subsidiaries 44651593.29
Impact of adjustments to income tax in respect of prior
-559416.03
periods
Impact of the non-deductible costs expenses and losses 11015098.11
Impact of Deductible Losses from Unrecognized Deferred
-31867154.76
Income Tax Assets in the Previous Period
Impact of Deductible Temporary Difference or Deductible
Losses from Unrecognized Deferred Income Tax Assets 61581873.49
in the Current Period
Impact of additional deduction of the research and
-268771377.08
development expenses
Others 7121989.90
Income Tax Expense 224132416.42
59. Other Comprehensive Income
See Note 41 for details.
60. Cash Flow Statement Items
(1) Cash Flows 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 84293618.33 69481743.35
Government grants 543864252.44 522070630.37
Deposits 51620666.00 92407811.47
Intercompany receivables/payables 81082112.87 33070002.00
160Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
and advances
Rental income 57461879.94 34020762.37
Others 21963987.52 15276793.68
Total 840286517.10 766327743.24
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 966185678.69 1039152634.60
Deposits 17580786.56 103892122.95
Intercompany receivables/payables
2773648.899496891.77
and advances
Others 3759396.86 3843737.95
Total 990299511.00 1156385387.27
(2) Cash Flows 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
Cash received from forward
3000972.124715470.28
exchange contracts
Total 3000972.12 4715470.28
Significant cash receipts relating to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Proceeds from reverse repurchase of
5571882162.317933731678.76
treasury bonds
Total 5571882162.31 7933731678.76
Other cash payments related to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Cash paid for forward exchange
11985885.00
contracts
Net cash received from disposal of
30999713.31
subsidiaries
Total 42985598.31
Significant cash payments related to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Investment in reverse repurchase of
5587567806.027466430095.92
treasury bonds
Total 5587567806.02 7466430095.92
161Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Cash Flows 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 payments 76057075.65 85662950.34
Repurchase of restricted shares 167646873.60
Repurchase of outstanding shares 20834675.74 103424006.73
Listing expenses 1143298.13 79829.52
Others 5750.49
Total 98035049.52 356819410.68
Changes in liabilities arising from financing activities
□Applicable □ Not Applicable
Unit: RMB
Increased in the current period Decreased in the current period
Opening Closing
Item
balance Changes in Non-cash Changes in Non-cash balance
cash changes cash changes
Short-term 203714311.5 2876735610 802323057.5 2278237639
110775.00
Loan 8 .23 8 .23
Dividends 1202293715 1202293715
PAYABLE .01 .01
Lease liability
(including
268523756.2275443810.9
lease liabilities 79281818.87 72361764.17
99
due within one
year)
472238067.82876735610128168630820769785362553681450
Total
7.23.88.76.22
61. Supplementary information about the cash flow statement
(1) Supplementary Information about the Cash Flow Statement
Unit: RMB
Supplementary information Current period amount Prior period amount
1. Adjustments to reconcile net profit
to cash flows from operational
activities:
Net Profit 2448932980.26 2598685138.93
Add: Impairment provisions 281134770.85 237696336.97
Depreciation of fixed assets oil and
gas assets productive biological 321625036.06 308245671.30
assets
Depreciation of right-of-use assets 58598996.19 74826089.28
Amortization of intangible assets 19760345.27 18991796.01
162Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Amortization of long-term deferred
28794700.8333606718.97
expenses
Losses on disposal of fixed assets
intangible assets and other long-term -1712594.87 -581021.39
assets (gain indicated by "-")
Losses on retirement of fixed assets
-614426.86-296472.19
(gain indicated by "-")
Losses on changes in fair value (gain
-403804915.66-79576958.11
indicated by "-")
Finance costs (gain indicated by "-") 399210322.18 -240948767.29
Losses on investments (gain
-49297511.64-606428153.16
indicated by "-")
Decrease in deferred tax assets
-45937441.85128041774.22
(increase indicated by "-")
Increase in deferred tax liabilities
45843902.35-19162.22
(decrease indicated by "-")
Decrease in inventories (increase
-2525438434.99-364950839.30
indicated by "-")
Decrease in operating receivables
-864020866.961225697765.19
(increase indicated by "-")
Increase in operating payables
-864319147.90-2750130196.99
(decrease indicated by "-")
Others 43975702.50 56263258.89
Net cash flow generated by operating
-1107268584.24639122979.11
activities
2. Major investing and financing
activities not involving 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 7168992336.81 8323822299.11
Less: opening balance of cash 8553198661.72 11061530816.28
Add: closing balance of cash
equivalents
Less: opening balance of cash
equivalents
Net Increase in Cash and Cash
-1384206324.91-2737708517.17
Equivalents
(2) Net Cash Paid for Disposal of Subsidiaries in the Current Period
Unit: RMB
Amount
Add: Cash or cash equivalents received in the current 71683294.00
163Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
period from disposal of subsidiaries in prior periods
Among them:
Hangzhou Huacheng Network Technology Co. Ltd. and
71683294.00
its controlled subsidiaries
Net cash received from disposal of subsidiaries 71683294.00
(3) Composition of Cash and Cash Equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 7168992336.81 8553198661.72
Including: cash on hand 116738.89 2726.44
Bank deposits readily available for
7072248956.068525976684.96
payment
Other monetary funds readily
96626641.8627219250.32
available for payment
II. Balance of Cash and Cash
7168992336.818553198661.72
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 Current period amount Prior period amount
and cash equivalents
Unexpired bank deposit
Bank Balance 12571349.52 14219237.31 interest is shown in
monetary funds
Frozen funds restricted
Bank Balance 3330184.34 33722034.78
use
Performance guarantee
Other Cash and Bank
61308204.62 74221016.50 security deposit usage
Balances
restricted
Total 77209738.48 122162288.59
62. Monetary Items in Foreign Currencies
(1) Monetary Items in Foreign Currencies
Unit: RMB
Closing balance in foreign Closing Balance Converted
Item Exchange rate
currencies into RMB
Monetary Fund
Including: USD 283268504.40 6.8109 1929313456.62
EUR 81291961.92 7.7671 631402797.43
HKD 129417680.32 0.8686 112406135.74
AED 54948766.53 1.8511 101713463.77
AUD 20305721.86 4.6804 95038900.59
INR 1196350473.35 0.0720 86183518.08
Total amount of other 466369580.80
164Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
currencies
Accounts Receivable
Including: USD 496282539.62 6.8109 3380130749.10
EUR 109336992.50 7.7671 849231354.45
HKD 2856104.41 0.8686 2480678.52
AED 153892446.12 1.8511 284864151.31
AUD 29266599.56 4.6804 136979392.58
PLN 71119520.97 1.8121 128877106.34
Total amount of other
459894556.53
currencies
Long-term Loan
Including: USD
EUR
HKD
Accounts Payable
Including: USD 186366828.50 6.8109 1269325832.23
EUR 919212.74 7.7671 7139617.27
HUF 150094158.82 0.0220 3296244.39
Indonesian rupiah 6461636560.67 0.0004 2460844.61
AUD 405082.18 4.6804 1895946.64
BRL 1436800.41 1.3165 1891605.21
Total amount of other
6124758.74
currencies
(2) The nature and financial impact of the lack of convertibility of currencies the spot
exchange rates used and the estimation process thereof and the risks faced by the Company
due to such lack of convertibility
□ Applicable □Not Applicable
(3) Description of foreign operations including that for significant foreign operations their
principal places of operation functional currencies and the basis for their selection and if
there is any change in the functional currency the reasons for such change shall also be
disclosed.□Applicable □ Not Applicable
Among the company's foreign operations Dahua Technology (HK) Limited and PIXFRA (HONG KONG) CO. LIMITED
are extensions of the Company's operating activities and constitute part of the Company's operations with RMB as
their functional currency; Other foreign operations determine their respective functional currencies based on the
currency of the primary economic environment in which they operate.
(4) Information on the lack of convertibility between the functional currencies of foreign
operations and the Company's presentation currency
□ Applicable □Not Applicable
63. Lease
(1) The Company as a Lessee
□Applicable □ Not Applicable
165Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Variable lease payments not included in the measurement of lease liabilities
□ Applicable □Not Applicable
Simplified rental expenses for short-term leases or low-value asset leases
□Applicable □ Not Applicable
Unit: RMB
Item Current period amount Prior period amount
Interest expenses on lease liabilities 4378437.82 5334929.02
Simplified rental expenses for short-term leases or
low-value asset leases included in the cost of related 34775081.48 37252067.33
assets or current profit or loss
Total cash outflows relating to leases 110832157.13 122915017.67
Sale and leaseback transaction
None
(2) The Company as the Lessor
As the lessor in operating leases
□Applicable □ Not Applicable
Unit: RMB
Income from the variable lease
Item Rental income payments that are not included in the
lease receivables.House leasing 64244325.45
Equipment leasing 22774823.23
Total 87019148.68
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
VIII. R&D Expenditures
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor costs 1751570624.16 1733489686.05
Research consumables and service
112900848.91116180926.88
fees
Depreciation cost and asset
88469497.4682602799.06
amortization
Traveling expense 19855840.64 23404093.89
166Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Administrative and office expenses 19301987.31 20292959.24
Others 7076175.81 8434957.98
Total 1999174974.29 1984405423.10
Including: Expenses for R&D
1999174974.291984405423.10
expenditures
IX. Changes in the Scope of Consolidation
1. No business combinations not under common control in the current period.
2. No Business Consolidation Under Common Control During this Period
3. No reverse purchases during the current period
4. No disposal of subsidiaries during the current period
5. Changes in the scope of consolidation due to 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:
The Company's subsidiaries Tianjin Huajian Technology Co. Ltd. Chengdu Dahua Wisdom Information Technology
Co. Ltd. Zhejiang Shuhang Intelligent Technology Co. Ltd. and DAHUA EUROPE B.V - SUCURSAL EM
ANGOLA(SU) LDA were deregistered during the period and have been deconsolidated from the date of dissolution.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 million District District and 100.00%
Establish
Engineering 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 District District and 100.00% Establish
Network million Hangzhou Hangzhou information ment
RMB 10 Binjiang Binjiang ElectronicsDahua Ju'an Establishmillion District District and 51.00%Hangzhou Hangzhou information ment
Guangxi
Dahua RMB 66.80
Youjiang Youjiang Electronics
District District and 100.00% Establish
Information million Baise Baise information ment
Guangxi RMB 20 Qingxiu Qingxiu
Yunlian million District District Service 100.00%
Establish
Nanning Nanning ment
Hangzhou RMB 10 Binjiang Binjiang Electronics Establish
Xiaohua million District District and 78.00%Hangzhou Hangzhou information ment
Dahua Zhilian RMB Fuyang Fuyang Electronics 100.00% Establish
167Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
1885.80 District District and ment
million Hangzhou Hangzhou information
Investment
Dahua
investment RMB 300
Fuyang Fuyang &
million District District investment 100.00%
Establish
management Hangzhou Hangzhou manageme ment
nt
Guangxi RMB Youjiang Youjiang Electronics109.5429 District District and 65.00% EstablishZhicheng million Baise Baise information ment
Sci-tech
RMB Binjiang Binjiang popularizatiHuaRay
Technology 78.264756 District District
on and 32.58% Establish
million Hangzhou Hangzhou application (Note) mentservices
industry
Fuyang RMB 10 Fuyang Fuyang Electronics
Hua'ao million District District and 51.00%
Establish
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
New District New District
Inner RMB 20 Bai County Bai County ElectronicsMongolia Establish
Zhimeng million
Chahar Chahar and 95.00%
Right Wing Right Wing information ment
Back Banner Back Banner
RMB 36 Hexi District Hexi District ElectronicsTianjin Dahua Establishmillion Tianjin Tianjin and 100.00%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%
Zhejiang Zhejiang information
ment
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 Jiangsu Jiangsu and 100.00% Establishmillion 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 Electronics Establish
Huashang million District District and 100.00% ment
168Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Shanghai Shanghai information
Wucheng Wucheng
RMB 10 District District ElectronicsDahua Jinzhi million Jinhua City Jinhua City and 100.00%
Establish
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
million Zhuang Zhuang and 100.00%
Establish
Technology Autonomous Autonomous information ment
Region Region
RMB 80 Binjiang Binjiang ElectronicsHuayixin million District District and 62.60%
Establish
Hangzhou Hangzhou information ment
Hirige RMB 156
Binjiang Binjiang
million District District
Automotive 49.04% Establish
Hangzhou Hangzhou Electronics (Note) ment
Chengdu RMB 600 Longquanyi Longquanyi Electronics Establish
Zhilian million District District and 100.00%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
Zhishu million District District and 100.00%
Establish
Chengdu Chengdu information ment
Chengdu RMB 15 Longquanyi Longquanyi ElectronicsDistrict District and 100.00% EstablishZhichuang million 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
Henan Dahua RMB 30 Zhengzhou Zhengzhou
Electronics
million Henan Henan and 100.00%
Establish
information ment
Huajian RMB 50 Binjiang Binjiang Electronics 45.00% Establish
Technology million District District andHangzhou Hangzhou information (Note) 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
Anhui Zhilian RMB 30
Electronics
Hefei Anhui Hefei Anhui and 100.00% Establishmillion information ment
Electronics
Anhui Zhishu RMB 30 Establishmillion Hefei Anhui Hefei Anhui and 100.00%information ment
Changsha RMB 100 Changsha Changsha Electronics Establish
Dahua million Hunan Hunan and 100.00%information ment
Zhejiang RMB Xiaoshan Xiaoshan Electronics
Pixfra 442.14044 District District and 75.11%
Establish
8 million Hangzhou Hangzhou information ment
RMB 10 Yiwu City Yiwu City ElectronicsYiwu Huaxi million Zhejiang Zhejiang and 100.00%
Establish
Province Province information ment
169Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 20 Sichuan Sichuan and 100.00% Establishmillion Province Province information ment
Mianyang RMB 10 Mianyang Mianyang Electronics
Huacheng million Sichuan Sichuan and 100.00%
Establish
Province Province information ment
Luoyang RMB 10 Luoyang Luoyang ElectronicsCity Henan City Henan and 100.00% EstablishZhiyu million Province Province information ment
Huaqi RMB 100 Binjiang Binjiang Electronics
Intelligence million District District and 100.00%
Establish
Hangzhou Hangzhou information ment
Business
Binjiang Binjiang Electronics combinatHJ RMB 20
Technology million District District and 100.00%
ion not
Hangzhou Hangzhou information undercommon
control
RMB 10 Haizhu Haizhu ElectronicsHuaxiyue 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 and 100.00% Establishmillion Shandong Shandong information ment
Shandong RMB 10 Jinan Jinan ElectronicsDigital Establish
Intelligence million Shandong Shandong
and 100.00%
information ment
Fujian RMB 10 Qingliu Qingliu ElectronicsCounty County and 100.00% EstablishQingchuang million Fujian Fujian information ment
Changchun Changchun Electronics
Jilin Zhilian RMB 10million Jilin Jilin and 100.00%
Establish
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 Electronics Establish
Ruihai million Shandong Shandong and 100.00%information ment
Dahua (HK) RMB Electronics
Limited 669.68734 Hong Kong Hong Kong and 100.00%
Establish
7 million information ment
Dahua Europe EUR
Electronics
200000 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
Dahua Mexico MXN 90
Electronics
million Mexico Mexico and 100.00%
Establish
information ment
CLP Electronics
Dahua Chile 3276704 Chile Chile and 100.00% Establish
593.00 information ment
170Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Dahua COP Electronics
Colombia 4616.7090 Columbia Columbia and 100.00%
Establish
16 million information ment
Dahua AUD ElectronicsAustralia Australia and 100.00% EstablishAustralia 150000 information ment
Dahua USD ElectronicsSingapore Singapore and 100.00% EstablishSingapore 220000 information ment
Dahua South ZAR 5 Electronics Establish
Africa million South Africa South Africa and 100.00%information ment
Electronics
Dahua Peru PEN 2.2 Peru Peru and 100.00% Establishmillion information ment
BRL Electronics
Dahua Brazil 41.334811 Brazil Brazil and 100.00% Establish
million information ment
Dahua Russia RUB 30
Electronics Establish
million Russia Russia and 100.00%information ment
Dahua CAD Electronics Establish
Canada 250000 Canada Canada and 100.00%information ment
Dahua USD Electronics
Panama 10000 Panama Panama and 100.00%
Establish
information ment
Dahua HUF 303 Electronics
Hungary million Hungary Hungary and 100.00%
Establish
information ment
Electronics
Dahua Poland PLN 2.2million Poland Poland and 100.00%
Establish
information ment
Dahua Tunisia USD
Electronics
304000.00 Tunisia Tunisia and 100.00%
Establish
information ment
Electronics
Dahua Kenya KES 15 Kenya Kenya and 100.00% Establishmillion information ment
Dahua UK GBP
Electronics
100000 UK UK and 100.00%
Establish
information ment
Dahua BGN Electronics
Bulgaria 350000 Bulgaria Bulgaria and 100.00%
Establish
information ment
Dahua Serbia RSD 23
Electronics
million Serbia Serbia and 100.00%
Establish
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 India India and 100.00% Establishmillion information ment
Electronics
Dahua Turkey TRY840000 Turkey Turkey and 100.00%
Establish
information ment
171Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
CZK 5.4 Czech Czech ElectronicsDahua Czech and 100.00% Establishmillion Republic Republic information ment
Dahua ARS Electronics Establish
Argentina 49.686361 Argentina Argentina and 100.00%million information ment
Electronics
Dahua Spain EUR150000 Spain Spain and 100.00%
Establish
information ment
Dahua KZT 23 Electronics Establish
Kazakhstan million Kazakhstan Kazakhstan and 100.00%information ment
Dahua DKK 1.5 Electronics
Denmark million Denmark Denmark and 100.00%
Establish
information ment
Electronics
Dahua France EUR Establish100000 France France and 100.00%information ment
Hong Kong HKD Electronics
Yihua 500000 Hong Kong Hong Kong and 100.00%
Establish
information ment
Dahua AED Electronics
Morocco 5500000. Morocco Morocco and 100.00%
Establish
00 information ment
Business
combinat
Dahua Italy EUR
Electronics
12000 Italy Italy and 100.00%
ion not
information undercommon
control
Dahua UZS Electronics10559825 Uzbekistan Uzbekistan and 100.00% EstablishUzbekistan 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 Electronicsand 100.00% EstablishZealand 300000 Zealand Zealand 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
Electronics
Dahua Nigeria NGN 100 Nigeria Nigeria and 100.00% Establishmillion information ment
USD ElectronicsDahua Israel 300000 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
172Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Electronics
Dahua Pacific USD10000 Panama Panama and 100.00%
Establish
information ment
Dahua Saudi SAR Electronics
Arabia 500000 Saudi Arabia Saudi Arabia and 100.00%
Establish
information ment
BDT Electronics
Dahua Bengal 10000000 Bangladesh Bangladesh and 100.00% Establish.00 information ment
HuaRay USD Electronics
Singapore 100000 Singapore Singapore and 100.00%
Establish
information ment
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 Electronics Establish
Arabia Co. 750000 Saudi Arabia Saudi Arabia and 100.00%information ment
Dahua USD Electronics
Argentina Co. 200000 Azerbaijan Azerbaijan and 100.00%
Establish
information ment
Dahua VND Electronics
Vietnam Co. 2363.6 Vietnam Vietnam and 100.00% Establish
Ltd. million information ment
Hirige Electronics
Technology MYR Establish
MaLaysia 2000.00
Malaysia Malaysia and 100.00%
information ment
Dahua Egypt USD
Electronics Establish
100000 Egypt Egypt and 100.00%information ment
DAHUAAbu AED Electronics
Dhabi 100000 Abu Dhabi Abu Dhabi and 100.00%
Establish
information ment
PixFra Hong HKD 1 Electronics Establish
Kong million Hong Kong Hong Kong and 100.00%information ment
Zhejiang
Huaxiao
Technology HKD 5 ElectronicsCo. Ltd. Establish
(Wisualarm million
Hong Kong Hong Kong and 100.00%
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:
The Company directly holds a 45% equity interest in Huajian Technology and as agreed Chen Ailing has granted the
Company the right to exercise 35% of the voting rights held by her. The Company actually holds 80% of the voting
rights in Huajian Technology thereby exercising de facto control and consolidating it within the scope of consolidation.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:
(1) As of June 30 2026 the Company held 32.5817% shares in Zhejiang HuaRay Technology Co. Ltd. The Company
is the largest shareholder of HuaRay Technology with the remaining shareholders holding relatively low and widely
dispersed equity interests. Therefore HuaRay Technology remains the Company's controlled subsidiary and is
included in the Company's scope of consolidation.
(2) As of June 30 2026 the Company held 49.0385% equity in Zhejiang Huaruijie Technology Co. Ltd. Through the
articles of association arrangements by the Board of Directors and other measures the Company is able to
173Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
determine Hirige's financial and operating policies and to obtain the primary benefits therefrom thereby effectively
exercising control over Huaruijie and including it in the Company's scope of consolidation.
2. Equity in Joint Ventures or Joint Ventures
(1) Aggregate financial information of individually immaterial joint ventures and associates
Unit: RMB
Closing balance / current period Opening balance / amount occurred
amount in the previous period
Joint ventures:
Aggregate amounts calculated based
on shareholding ratios
Associates:
Aggregate carrying amount of
763386971.25725578108.27
investments
Aggregate amounts calculated based
on shareholding ratios
--Net profit 30863231.20 10798379.54
--Other comprehensive income -12261152.31 21639388.06
--Total comprehensive income 18602078.89 32437767.60
(2) Excess losses incurred by joint ventures or associates
Unit: RMB
Unrecognized loss in the
Accumulated unrecognized
Names of Joint Ventures or Accumulated unrecognized current period (or net profit
losses at the end of the
Affiliates losses from prior periods shared in the current
current period
period)
Ningbo Cida Yongshun
Intelligent Technology Co. -561415.52 -561415.52
Ltd.XI. Government Grants
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 Grants
□Applicable □ Not Applicable
Unit: RMB
Accounting Opening The amount Amount Amount Other Closing Related to
Accounts balance of new transferred transferred changes in balance assets/earni
174Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
subsidies in to non- to other the current ngs
this period operating income in period
income in the current
the current period
period
Deferred 17007542 7102720.6 16297270 Related to
Income 3.69 1 3.08 assets
3. Government Subsidies Recorded Into Current Profits and Losses
□Applicable □ Not Applicable
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Accounting Accounts
Period Period
VAT refunds (immediate refunds) 442014508.40 339011008.11
Special grants 108952464.65 194290442.32
XII. Risks Relating to Financial Instruments
1. Various Risks Arising from Financial Instruments
The company faces various financial risks in its operations: credit risk liquidity risk and market risk (including
exchange rate risk interest rate risk and other price risks).The overall objective of the Company's risk management is to formulate risk management policies that can minimize
risks without affecting the Company's competitiveness and adaptability to changes too much.(I) Credit Risk
The credit risk refers to the risk of financial loss to the Company as a result of a counterparty's failure to fulfill its
contractual obligations. The Company is mainly exposed to customer credit risk arising from sales on account. Before
signing a new contract the Company assesses the new customer's credit risk including external credit ratings and in
certain circumstances bank reference letters (where 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 of a shortage of funds when an enterprise fulfills its obligation of settlement by cash or
other financial assets.The Company's policy is to ensure that there is sufficient cash to repay the liabilities due. The liquidity risk is under the
concentrated control of the Company's Financial Department. By monitoring cash balances marketable securities that
are readily convertible to cash and rolling cash flow forecasts for the next 12 months the Financial Department
ensures that the Company has sufficient funds to repay its debts under all reasonably foreseeable scenarios.The financial liabilities of the Company are presented by maturity as follows based on undiscounted contractual cash
flows.June 30 2026
Item
Within 1 year 1 year or above Total
Short-term Loan 2278237639.23 2278237639.23
Notes Payable 3617876380.59 3617876380.59
Accounts Payable 5029028770.07 26330939.40 5055359709.47
Other Payables 522404933.34 522404933.34
175Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Non-current Liabilities Due within
One Year 257790057.57 257790057.57
Lease Liabilities 177369578.75 177369578.75
Total 11705337780.80 203700518.15 11909038298.95
December 31 2025
Item
Within 1 year 1 year 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
(III) Market Risk
The market risk of financial instruments refers to the risk of fluctuation in the fair value or future cash flows of financial
instruments due to changes in market prices including exchange rate risk interest rate risk and other price risk.
1. Interest rate risk
The interest rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes due
to the change of market interest rate. The interest rate risk faced by the Company mainly arises from bank loans. The
Company's assets and liabilities relating to interest rate are respectively bank deposits and short-term loans whose
interest rate risk is low.
2. Exchange rate risk
The exchange rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes due
to the change of foreign exchange rate. The Company will try its best to match the revenues with the expenses in
foreign currency to lower the exchange rate risk. In addition the Company may also sign forward foreign exchange
contracts or currency swap contracts to avoid exchange rate risks.The exchange rate risk faced by the Company mainly arises from financial assets and liabilities denominated in USD.The amounts of foreign currency financial assets and liabilities translated into RMB are set out as follows:
Closing balance Opening balance
Item
USD Other foreign Total USD Other foreigncurrencies currencies Total
Monetary 1929313456.62 149311439 3422427853. 2433515025. 1423578813. 3857093839.Fund 6.41 03 25 82 07
Accounts 3380130749.10 186232723 5242457988. 3345872887. 2354147824. 5700020711.Receivable 9.73 83 48 12 60
Accounts 1269325832.23 22809016.8 1292134849. 872579698.2Payable 6 09 7 57277804.90
929857503.1
7
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
58851305.97251993835.62310845141.59
Assets
1. Financial assets at 58851305.97 251993835.62 310845141.59
176Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
fair value through
profit or loss in this
period
(1) Investment in
58851305.9758851305.97
Equity Instruments
(2) Others 251993835.62 251993835.62
(II) Receivables
Financing 1143829632.25 1143829632.25
(III) Other Non-
current Financial 2919102368.54 76905772.45 2996008140.99
Assets
1. Financial assets at
fair value through
profit or loss in this 2919102368.54 76905772.45 2996008140.99
period
(1) Investment in
Equity Instruments 76905772.45 76905772.45
(2) Others 2919102368.54 2919102368.54
Total assets
constantly measured 58851305.97 4314925836.41 76905772.45 4450682914.83
at fair value
2. Basis for determining the market value of continuous and non-continuous first-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 measured and recognized at fair value with reference to
different parameters adopted by financial institutions based on prevailing market conditions as well as the remaining
term and duration of the transactions.Fair value measurement and recognition.Receivables financing is carried at face value as its fair value as the remaining maturity is short and the carrying
amount approximates fair value.Other non-current financial assets are valued on the basis of quotations provided by financial institutions.Financial assets held for trading are valued through indirect estimation based on product specifications.
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
Based on the valuation using the income approach and the asset-based approach as well as the net book value of
assets.
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.
177Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
Fu Liquan shareholder 31.32% 31.32%
actual controller
Chen Ailing Actual controller 2.18% 2.18%
The final controllers of the Company are Mr. Fu Liquan and Ms. Chen Ailing.
2. Information about the Company's Subsidiaries
For details of subsidiaries of the Company see Note X. 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.Other joint ventures and associates that had related-party transactions with the Company during the current period or
had balances arising from related-party transactions with the Company in prior periods are as follows:
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
Bozhou Boda Yongshun 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
An entity controlled by the actual controller
subsidiaries
Huayan Capital (Hangzhou) Private Equity Fund
An entity controlled by the actual controller
Management Co. Ltd.Zhejiang Huayuxin Technology Co. Ltd. An entity controlled by the actual controller
Ningbo Huaying Venture Capital Partnership (Limited
An entity controlled by the actual controller
Partnership)
Hangzhou Xianmai Technology Co. Ltd. An entity controlled by relatives of the actual controller
178Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
An entity where the actual controller has significant
Zhejiang Lancable Technology Co. Ltd.influence
An entity 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
An entity controlled by a relative of a director of the
Hangzhou Changchang Culture & Entertainment Co. Ltd.Company.An entity where the Company's former supervisors serve
Beijing Saimu Technology Co. Ltd.as directors
Company A and other companies under its control Related parties
Hangzhou Huacheng Network Technology Co. Ltd. and
Note 1
its subsidiaries
Other information
Note 1: Hangzhou Huacheng Network Technology Co. Ltd. and its subsidiaries were previously related parties of the
Company; as of 2026-06-30 such related-party relationship had ended.
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
Whether the
Amount Amount
Approved transaction limit
Related parties Description Occurred in the Occurred in the
transaction limit is exceeded or
Current Period Previous Period
not
Company A and
Purchase of
other companies 77903362.12 No 117414040.94
materials
under its control
Hangzhou
Huacheng
Network Acceptance of
72732524.46 No
Technology Co. services
Ltd. and its
subsidiaries
China Mobile Material
Communications procurement
39740681.51 No 44743923.39
Group Co. Ltd. acceptance of
and its affiliates services
Zhejiang
Huachuang
Purchase of
Vision 9534823.42 No 19463649.53
materials
Technology Co.Ltd.Zhejiang
Leapmotor
Purchase of
Technology Co. 7087895.82 No 8328138.03
materials
Ltd. and its
affiliates
Zhejiang
Lancable Acceptance of
15089.34 No 15938.19
Technology Co. services
Ltd.
179Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang
Huanuokang
Purchase of
Technology Co. 4070.80 No 540088.56
materials
Ltd. and its
subsidiaries
Statement of Sales of Merchandise and Provision of Services
Unit: RMB
Amount Occurred in the Amount Occurred in the
Related parties Description
Current Period Previous Period
Intelbras S.A. Sales of merchandise 322860996.45 434956295.51
Zhejiang Leapmotor
Sales of goods and
Technology Co. Ltd. and 316959834.92 251054040.14
provision of services
its affiliates
China Mobile
Sales of goods and
Communications Group 191495142.59 135432781.93
provision of services
Co. Ltd. and its affiliates
Zhejiang Huayuxin Sales of goods and
13427516.941754519.64
Technology Co. Ltd. provision of services
Zhejiang Gaohua AIoT
Sales of merchandise 8536509.30
Technology Co. Ltd.Guangdong Zhishi Digital
Sales of merchandise 1626678.19 1005860.55
Technology Co. Ltd.Rudong Jintianhua
Security Technology Co. Sales of merchandise 1129258.42 2633161.97
Ltd.Zhejiang Huanuokang
Technology Co. Ltd. and Sales of merchandise 1053970.92 1641592.68
its subsidiaries
Hangzhou Huacheng
Sales of goods and
Network Technology Co. 634253.02
provision of services
Ltd. and its subsidiaries
Bozhou Boda Yongshun
Sales of merchandise 395263.51
Technology Co. Ltd.Dezhou Shuzhi Information
Sales of merchandise 355008.81 1998783.61
Technology Co. Ltd.Ruicity Digital Technology
Co. Ltd. And its Sales of merchandise 319601.77 -101145.95
subsidiaries
Ningbo Cida Yongshun
Intelligent Technology Co. Sales of merchandise 243989.41 2048545.54
Ltd.Guangxi FTZ Huaqin
Wisdom Park Technology Sales of merchandise 146973.45 26.55
Research Institute Co. Ltd.Zhejiang Huachuang Sales of goods and
131402.65304646.93
Vision Technology Co. Ltd. provision of services
Beijing Saimu Technology
Sales of merchandise 47787.61
Co. Ltd.Hangzhou Changchang
Culture & Entertainment Sales of merchandise 7079.65
Co. Ltd.Huahongchang Intelligent
Technology (Jiangsu) Co. Sales of merchandise 10442.48
Ltd.Hangzhou Xianmai Sales of merchandise 4335.40
180Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Technology Co. Ltd.
(2) Related Leasing
The Company as the lessor:
Unit: RMB
Rental income confirmed in Rental income confirmed in
Name of the lessee Type of the leased assets
this period the previous period
Hangzhou Huacheng
Network Technology Co. Buildings and constructions 8059020.27
Ltd. and its subsidiaries
Zhejiang Huayuxin
Buildings and constructions 2125468.81 1486256.16
Technology Co. Ltd.Zhejiang Huanuokang
Technology Co. Ltd. and Buildings and constructions 1103375.51 896278.64
its subsidiaries
Zhejiang Leapmotor
Technology Co. Ltd. and Buildings and constructions 1766563.54 70716.55
its affiliates
Huayan Capital
(Hangzhou) Private Equity
Buildings and constructions 46744.80 46744.80
Fund Management Co.Ltd.Zhejiang Gaohua AIoT
Buildings and constructions 166206.20
Technology Co. Ltd.Zhejiang Huachuang
Buildings and constructions 10045.86 10045.86
Vision Technology Co. Ltd.Zhejiang Leapmotor
Technology Co. Ltd. and Device 61373.45
its affiliates
The Company as the lessee:
Unit: RMB
Simplified rental Variable lease
expenses for payments not
Interest expense
short-term leases included in the Increased right-of-
Rent paid on lease liabilities
and low-value measurement of use assets
Type of borne
Name of asset leases (if lease liabilities (if
the
the applicable) applicable)
leased
lessor
assets Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
Occurre Occurre Occurre Occurre Occurre Occurre Occurre Occurre Occurre Occurre
d in the d in the d in the d in the d in the d in the d in the d in the d in the d in the
Current Previou Current Previou Current Previou Current Previou Current Previou
Period s Period Period s Period Period s Period Period s Period Period s Period
Zhejian
g
Leapmo
Machine
tor
ry and 87324. 95943.Technol
equipm 59 04
ogy Co.ent
Ltd. and
its
affiliates
181Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Related Guarantee
The Company as the guarantor:
Unit: RMB
Whether
the
guarantee
Guarantee
Secured parties Starting date Maturity date has been
amount
fully
performed
or not
Zhejiang Dahua Vision 2017-10-13 Two years after the maturity of theTechnology Co. Ltd. 220000000.00 debts in the master contract No
Zhejiang Dahua Vision
Technology Co. Ltd. 40000000.00 2018-09-21 Two years after the maturity of the(guaranteed currency: debts in the master contract No
USD)
From the date of expiration of the
performance period of each debt
Zhejiang Dahua Vision in the master contract until three
Technology Co. Ltd. 400000000.00 July 24 2023 years after the date of expiration Noof the performance period of the
last due master debt under all
master contracts
Three years from the expiration
Zhejiang Dahua Vision September 26 2023 date of the debtor's performanceTechnology Co. Ltd. 330000000.00 period as agreed in the master No
claim contract
Three years from the next day
Zhejiang Dahua Vision
Technology Co. Ltd. 1000000000. March 01 2024
after the expiry date of each type
00 of financing business under the
No
master contract
Zhejiang Dahua Vision Two years from the expiration date
Technology Co. Ltd. 530000000.00 April 01 2024 of the debtor's performance period Noas agreed in the master contract
Three years from the expiration
Zhejiang Dahua Vision
Technology Co. Ltd. 495000000.00 July 25 2024
date of the debtor's performance
period as agreed in each specific No
financing contract
Three years from the expiration
Zhejiang Dahua Vision December 13 2024 date of the debtor's performanceTechnology Co. Ltd. 200000000.00 period as agreed in the master No
contract.From the effective date of the
Commitment Letter to three years
after the maturity date of each
loan or other financing under the
Zhejiang Dahua Vision Credit Agreement or of the
Technology Co. Ltd. 400000000.00 June 10 2025 accounts receivable claims Yesgranted by the Hangzhou Branch
of China Merchants Bank or three
years after the advance date of
each advance within the credit
extension period.The guarantee period is from the
effective date of the Maximum
Zhejiang Dahua Vision Amount Guarantee Contract until
Technology Co. Ltd. 500000000.00 July 21 2025 three years from the expiration Nodate of the performance period of
each debt under the Credit
Business Agreement.Zhejiang Dahua Vision
Technology Co. Ltd. 200000000.00 July 22 2025
The guarantee period is three
years from the expiration date of No
182Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
the period for performance of the
debtor's obligations under the
master contract and the
guarantee period under each
specific business contract is
calculated separately.From the date of signing the
contract for a single credit
Zhejiang Dahua Vision transaction until three years after
Technology Co. Ltd. 900000000.00 September 08 2025 the expiration of the period for Noperformance 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
Zhejiang Dahua Vision September 19 2025 years after the expiration of theTechnology Co. Ltd. 800000000.00 debt performance period No
stipulated in the specific business
credit contract (including early
maturity of the debt).From the effective date of the
Commitment Letter to three years
after the maturity date of each
loan or other financing under the
Zhejiang Dahua Vision Credit Agreement or of the
Technology Co. Ltd. 400000000.00 June 10 2026 accounts receivable claims Nogranted by the Hangzhou Branch
of China Merchants Bank or three
years after the advance date of
each advance within the credit
extension period.Zhejiang Dahua Zhilian Two years from the expiration date
Co. Ltd. 300000000.00 March 29 2024 of the debtor's performance period Noas agreed in the master contract
The guarantee period starts from
the expiration date of the
performance period of each
Zhejiang Dahua Zhilian principal debt under the master
Co. Ltd. 600000000.00 July 25 2024 contract and ends three years Noafter the expiration date of the
performance period of the last due
principal debt under all master
contracts.Three years from the expiration
Zhejiang Dahua Zhilian date of the debtor's performance
Co. Ltd. 165000000.00 July 25 2024 period as agreed in each specific No
financing contract
Three years from the expiration
Zhejiang Dahua Zhilian date of the debtor's performance
Co. Ltd. 100000000.00 September 26 2024 period as agreed in the master No
contract.From the effective date of the
commitment letter to three years
after the maturity date of each
loan or other financing under the
Zhejiang Dahua Zhilian June 10 2025 Credit Agreement or of theCo. Ltd. 160000000.00 creditor's rights granted by the Yes
Hangzhou Branch of China
Merchants Bank or three years
after the advance date of each
advance.Zhejiang Dahua Zhilian
Co. Ltd. 200000000.00 August 25 2025 January 29 2026 Yes
Zhejiang Dahua Zhilian The guarantee period is from the
Co. Ltd. 150000000.00 September 19 2025 effective date of the specific Nobusiness credit contract to three
183Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
years after the expiration of the
debt performance period
stipulated in the specific business
credit contract (including early
maturity of the debt).Zhejiang Dahua Zhilian
Co. Ltd. 200000000.00 January 30 2026 May 14 2026 Yes
Zhejiang Dahua Zhilian
Co. Ltd. 200000000.00 May 15 2026 August 24 2030 No
From the effective date of the
Commitment Letter to three years
after the maturity date of each
loan or other financing under the
Zhejiang Dahua Zhilian Credit Agreement or of the
Co. Ltd. 160000000.00 June 10 2026 accounts receivable claims Nogranted by the Hangzhou Branch
of China Merchants Bank or three
years after the advance date of
each advance within the credit
extension period.From the effective date of the
commitment letter to three years
after the maturity date of each
loan or other financing under the
Zhejiang Dahua System 40000000.00 June 10 2025 Credit Agreement or of theEngineering Co. Ltd. creditor's rights granted by the Yes
Hangzhou Branch of China
Merchants Bank or three years
after the advance date of each
advance.The guarantee period is from the
effective date of the Maximum
Zhejiang Dahua System Amount Guarantee Contract until
Engineering Co. Ltd. 50000000.00 July 21 2025 three years from the expiration Nodate of the performance period of
each debt under the Credit
Business Agreement.Zhejiang Dahua System
Engineering Co. Ltd. 5000000.00 August 25 2025 January 29 2026 Yes
Two years from the expiration date
Zhejiang Dahua System
Engineering Co. Ltd. 20000000.00 September 08 2025
of the period for performance of
the debtor's obligations as No
stipulated in the credit agreement
From the date of signing the
master contract for a single credit
Zhejiang Dahua System 30000000.00 November 11 2025 transaction until three years afterEngineering Co. Ltd. Dahua System Engineering's debt No
performance period under the
master contract expires
Zhejiang Dahua System
Engineering Co. Ltd. 5000000.00 January 30 2026 May 14 2026 Yes
Zhejiang Dahua System
Engineering Co. Ltd. 5000000.00 May 15 2026 August 24 2030 No
From the effective date of the
Commitment Letter to three years
after the maturity date of each
loan or other financing under the
Zhejiang Dahua System Credit Agreement or of the
Engineering Co. Ltd. 40000000.00 June 10 2026 accounts receivable claims Nogranted by the Hangzhou Branch
of China Merchants Bank or three
years after the advance date of
each advance within the credit
extension period.Dahua Technology (HK)
Limited (guaranteed 3000000.00 April 22 2025 April 21 2026 Yes
currency: USD)
184Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Dahua Technology (HK)
Limited (guaranteed 20000000.00 January 15 2025 January 14 2026 Yes
currency: USD)
Dahua Technology (HK)
Limited (guarantee 1500000.00 July 01 2025 July 01 2026 No
currency: EUR)
Dahua Technology (HK)
Limited (guaranteed 20000000.00 January 14 2026 January 14 2027 No
currency: USD)
Dahua Technology (HK)
Limited (guarantee 1400000.00 June 11 2026 July 01 2027 No
currency: HKD)
DAHUA TECHNOLOGY
MEXICO S.A. DE C.V
(guaranteed currency: 1000000.00 October 31 2025 October 30 2026 No
USD)
Dahua Technology UK
Limited (guaranteed 1160000.00 August 12 2020 Upon execution of a termination No
currency: GBP) notice
Dahua Technology UK
Limited (guaranteed 1000000.00 March 04 2025 March 03 2026 Yes
currency: USD)
Zhejiang Huayixin
Technology Co. Ltd. 2000000.00 August 25 2025 January 29 2026 Yes
Zhejiang Fengshi
Technology Co. Ltd. 100000000.00 August 25 2025 January 29 2026 Yes
The guarantee period is from the
effective date of the specific
business credit contract to three
Zhejiang Fengshi years after the expiration of the
Technology Co. Ltd. 10000000.00 September 19 2025 debt performance period No
stipulated in the specific 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 other
financing under the Credit
Zhejiang Fengshi 30000000.00 October 09 2025 Agreement or the maturity date ofTechnology Co. Ltd. the accounts receivable creditor's No
right assigned to China Merchants
Bank Hangzhou Branch or three
years after the date of each
advance.Zhejiang Fengshi
Technology Co. Ltd. 100000000.00 January 30 2026 May 14 2026 Yes
Zhejiang Fengshi
Technology Co. Ltd. 100000000.00 May 15 2026 August 24 2030 No
Two years from the expiry date of
Zhejiang Huaxiao 20000000.00 June 27 2025 the debtor's performance periodTechnology Co. Ltd. as stipulated in the master No
contract.Zhejiang Huaxiao
Technology Co. Ltd. 2000000.00 August 25 2025 January 29 2026 Yes
Zhejiang Huaxiao
Technology Co. Ltd. 2000000.00 January 30 2026 May 14 2026 Yes
Zhejiang Huaxiao
Technology Co. Ltd. 2000000.00 May 15 2026 August 24 2030 No
Xi'an Dahua Zhilian
Technology Co. Ltd. 100000000.00 August 25 2025 January 29 2026 Yes
The guarantee period is from the
effective date of the specific
Xi'an Dahua Zhilian 20000000.00 September 19 2025 business credit contract to threeTechnology Co. Ltd. years after the expiration of the No
debt performance period
stipulated in the specific business
185Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
credit contract (including early
maturity of the debt).Xi'an Dahua Zhilian
Technology Co. Ltd. 100000000.00 January 30 2026 May 14 2026 Yes
Xi'an Dahua Zhilian
Technology Co. Ltd. 100000000.00 May 15 2026 August 24 2030 No
Zhengzhou Dahua Zhian
Information Technology 50000000.00 June 10 2025 June 09 2026 Yes
Co. Ltd.Zhengzhou Dahua Zhian
Information Technology 30000000.00 August 25 2025 January 29 2026 Yes
Co. Ltd.Zhengzhou Dahua Zhian
Information Technology 30000000.00 January 30 2026 May 14 2026 Yes
Co. Ltd.Zhengzhou Dahua Zhian
Information Technology 30000000.00 May 15 2026 August 24 2030 No
Co. Ltd.Chengdu Dahua Zhian
Information Technology 100000000.00 June 10 2025 June 09 2026 YesService Co. Ltd.Chengdu Dahua Zhian
Information Technology 100000000.00 June 10 2026 June 09 2027 NoService Co. Ltd.Changsha Dahua
Technology Co. Ltd. 50000000.00 August 25 2025 January 29 2026 Yes
The guarantee period is from the
effective date of the specific
business credit contract to three
Changsha Dahua
Technology Co. Ltd. 20000000.00 September 19 2025
years after the expiration of the
debt performance period No
stipulated in the specific business
credit contract (including early
maturity of the debt).Changsha Dahua
Technology Co. Ltd. 50000000.00 January 30 2026 May 14 2026 Yes
Changsha Dahua
Technology Co. Ltd. 50000000.00 May 15 2026 August 24 2030 No
From the effective date of this
contract until three years after the
Zhejiang Pixfra Technology 20000000.00 February 21 2025 expiration date of the debtCo. Ltd. performance period under the Yes
specific credit under the master
contract.Zhejiang Pixfra Technology
Co. Ltd. 5000000.00 August 25 2025 January 29 2026 Yes
Zhejiang Pixfra Technology
Co. Ltd. 5000000.00 January 30 2026 May 14 2026 Yes
From the effective date of this
contract until three years after the
Zhejiang Pixfra Technology
Co. Ltd. 20000000.00 March 11 2026
expiration date of the debt
performance period under the No
specific credit under the master
contract.Zhejiang Pixfra Technology
Co. Ltd. 40000000.00 May 15 2026 August 24 2030 No
Two years from the expiry date of
Zhejiang Huafei Intelligent 15000000.00 June 27 2025 the debtor's performance periodTechnology CO. LTD. as stipulated in the master No
contract.Zhejiang Huafei Intelligent
Technology CO. LTD. 10000000.00 August 25 2025 January 29 2026 Yes
Zhejiang Huafei Intelligent
Technology CO. LTD. 10000000.00 January 30 2026 May 14 2026 Yes
Zhejiang Huafei Intelligent
Technology CO. LTD. 10000000.00 May 15 2026 August 24 2030 No
186Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Huajian
Technology Co. Ltd. 2000000.00 August 25 2025 January 29 2026 Yes
Zhejiang Huajian
Technology Co. Ltd. 30000000.00 August 25 2025 August 24 2028 No
Zhejiang Huajian
Technology Co. Ltd. 963702.40 December 19 2025 December 16 2028 No
Zhejiang Huajian
Technology Co. Ltd. 12046280.00 December 19 2025 December 31 2026 No
Zhejiang Huajian
Technology Co. Ltd. 2000000.00 January 30 2026 May 14 2026 Yes
Zhejiang Huajian
Technology Co. Ltd. 5000000.00 May 15 2026 August 24 2030 No
Three years from the date of
Zhejiang Huajian expiry of the debtor's performance
Technology Co. Ltd. 16500000.00 June 10 2026 period stipulated in each specific No
financing contract
Dahua Technology France
SAS (guarantee currency: 145690.20 December 07 2023 August 31 2029 No
EUR)
DAHUA EUROPE B.V.(guaranteed currency: 2500000.00 March 04 2025 March 03 2026 Yes
USD)
Dahua Technology Italy
S.R.L. (guaranteed 500000.00 March 04 2025 March 03 2026 Yes
currency: USD)
Two years from the expiry date of
Zhejiang Huaruijie
Technology Co. Ltd. 15000000.00 June 27 2025
the debtor's performance period
as stipulated in the master No
contract.Zhejiang Huaruijie
Technology Co. Ltd. 2000000.00 August 25 2025 January 29 2026 Yes
From the effective date of the
Commitment Letter to three years
after the maturity date of each
loan or other financing under the
Zhejiang Huaruijie Credit Agreement or of the
Technology Co. Ltd. 10000000.00 January 21 2026 accounts receivable claims Nogranted by the Hangzhou Branch
of China Merchants Bank or three
years after the advance date of
each advance within the credit
extension period.Zhejiang Huaruijie
Technology Co. Ltd. 2000000.00 January 30 2026 May 14 2026 Yes
Zhejiang Huaruijie
Technology Co. Ltd. 15000000.00 May 15 2026 August 24 2030 No
Three years from the date of
Zhejiang Huaruijie expiry of the debtor's performance
Technology Co. Ltd. 11000000.00 June 10 2026 period stipulated in each specific No
financing contract
Dahua Technology
Singapore Pte. Ltd. 164177.83 April 30 2025 January 30 2028 No
(guarantee currency: SGD)
(4) Asset Transfer and Debt Restructuring of Related Parties
Unit: RMB
Amount Occurred in the Amount Occurred in the
Related parties Description
Current Period Previous Period
Zhejiang Leapmotor
Procurement of fixed
Technology Co. Ltd. and 9054356.40 149912.39
assets
its affiliates
Hangzhou Huacheng Procurement of fixed 88371.49
187Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Network Technology Co. assets
Ltd. and its subsidiaries
Zhejiang Huachuang Procurement of fixed
22212.39
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 8366851.49 8260691.89
(6) Other Related-party Transactions
None
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. 333464240.81 16673212.04 565687976.12 28284398.81
Receivable
Zhejiang Leapmotor
Accounts
Technology Co. Ltd. 259562155.76 13048017.57 243469945.87 12324275.05
Receivable
and its affiliates
China Mobile
Accounts Communications
222846923.0124588650.85173723159.4122141300.67
Receivable Group Co. Ltd. and
its affiliates
Accounts Zhejiang Huayuxin
23783115.961233053.417191816.06364839.65
Receivable Technology Co. Ltd.Zhejiang Gaohua
Accounts
AIoT Technology Co. 9109531.84 455476.59 1063799.06 53189.95
Receivable
Ltd.Ningbo Cida
Accounts
Yongshun Intelligent 3434950.01 372049.75 3439910.01 191774.60
Receivable
Technology Co. Ltd.Guangdong Zhishi
Accounts
Digital Technology 1799933.84 91694.80 3439407.34 210046.12
Receivable
Co. Ltd.Zhejiang
Accounts Huanuokang
1440458.1672022.91593647.8429682.39
Receivable Technology Co. Ltd.and its subsidiaries
Rudong Jintianhua
Accounts
Security Technology 696608.00 34830.40 1682416.30 84120.82
Receivable
Co. Ltd.Zhejiang Huachuang
Accounts
Vision Technology 582441.20 42980.51 2183552.25 359414.32
Receivable
Co. Ltd.
188Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Ruicity Digital
Accounts
Technology Co. Ltd. 531600.00 132900.02 17805860.20 3880447.61
Receivable
And its subsidiaries
Bozhou Boda
Accounts
Yongshun 446647.75 22332.39
Receivable
Technology Co. Ltd.Dezhou Shuzhi
Accounts
Information 356677.99 17833.90 578356.99 28917.85
Receivable
Technology Co. Ltd.Accounts Beijing Saimu
270960.0013548.00361600.0018080.00
Receivable Technology Co. Ltd.Guangxi FTZ Huaqin
Wisdom Park
Accounts
Technology 586250.00 29312.50
Receivable
Research Institute
Co. Ltd.Company A and
Prepayments other companies 118580.39 118580.39
under its control
China Mobile
Communications
Prepayments 52321.37 86914.16
Group Co. Ltd. and
its affiliates
Zhejiang Leapmotor
Prepayments Technology Co. Ltd. 4274499.53
and its affiliates
Contract assets
China Mobile
(including the
Communications
portion included 5073650.03 1046519.90 4665386.88 1140507.11
Group Co. Ltd. and
in other non-
its affiliates
current assets)
Contract assets
(including the Zhejiang Leapmotor
portion included Technology Co. Ltd. 825388.00 41269.40 258828.00 12941.40
in other non- and its affiliates
current assets)
Contract assets
(including the Zhejiang Gaohua
portion included AIoT Technology Co. 282346.05 14117.30 37816.45 1890.82
in other non- Ltd.current assets)
China Mobile
Other Communications
2642098.44459942.692564089.07457039.70
Receivables Group Co. Ltd. and
its affiliates
Zhejiang Leapmotor
Other
Technology Co. Ltd. 44850.00 13455.00 44850.00 13455.00
Receivables
and its affiliates
(2) Payables
Unit: RMB
Item Name Related parties Closing balance Opening balance
China Mobile
Accounts Payable Communications Group 23188123.05 24800225.13
Co. Ltd. and its affiliates
189Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Leapmotor
Accounts Payable Technology Co. Ltd. and 4461353.02 2483997.04
its affiliates
Zhejiang Huachuang
Accounts Payable 2373214.80 6152886.04
Vision Technology Co. Ltd.Ruicity Digital Technology
Accounts Payable Co. Ltd. And its 315937.12 315937.12
subsidiaries
Company A and other
Accounts Payable companies under its 62600.00 216602.02
control
Zhejiang Huanuokang
Accounts Payable Technology Co. Ltd. and 4600.00
its subsidiaries
China Mobile
Contract Liabilities Communications Group 11960331.53 12657755.06
Co. Ltd. and its affiliates
Zhejiang Leapmotor
Contract Liabilities Technology Co. Ltd. and 7498732.79 5268695.73
its affiliates
Contract Liabilities Intelbras S.A. 384132.96 242409.47
Beijing Saimu Technology
Contract Liabilities 282123.89
Co. Ltd.Ruicity Digital Technology
Contract Liabilities Co. Ltd. And its 21.24 13274.34
subsidiaries
Zhejiang Gaohua AIoT
Contract Liabilities 153325.22
Technology Co. Ltd.China Mobile
Other Payables Communications Group 13006408.21 12105552.27
Co. Ltd. and its affiliates
Ningbo Huaying Venture
Other Payables Capital Partnership 10926042.47 10926042.47
(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 50000.00
its affiliates
Lease liability (including Zhejiang Leapmotor
lease liabilities due within Technology Co. Ltd. and 6445454.86 6358130.27
one year) its affiliates
XV. Share-based Payments
1. Overview of Share-based Payments
□Applicable □ Not Applicable
Unit: RMB
Category Granted in the current Exercised in the Vested in the current Forfeited in the current
of period current period period period
grantees Quantity Amount Quant Amount Quantity Amount Quantity Amount
190Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
ity
Core
1981960140917363.1
employee
11
s
1981960140917363.1
Total
11
Stock options or other equity instruments outstanding at the end of the period
□Applicable □ Not Applicable
Stock options outstanding at the end of the Other equity instruments outstanding at the
period end of the period
Category of grantees
Range of exercise Remaining term of Range of exercise Remaining term of
prices contract prices contract
Core employees RMB 9.58 per share 11-35 months
2. Situation of Equity-settled Share-based Payment
□Applicable □ Not Applicable
Unit: RMB
Determined based on the share price on the grant date
Method for determining the fair value of equity and the grant cost of the shares the most recent external
instruments at the grant date investor subscription price on the grant date or by
valuation using the income approach
Basis for determining the number of exercisable equity Estimated according to equity instruments attributable to
instruments employees currently in service
Reasons for significant differences between current
None
period estimates and prior period estimates
Cumulative amount of equity-settled share-based
255169666.84
payments recognized in the capital reserves
Total expense recognized for equity?settled share?based
43862022.48
payments in the current period
3. Situation of Cash-settled Share-based Payment
□ Applicable □Not Applicable
4. Share-Based Payment Expenses in the Current Period
□Applicable □ Not Applicable
Unit: RMB
Expenses for equity-settled share- Expenses for cash-settled share-
Category of grantees
based payments based payments
Core employees 43862022.48
Total 43862022.48
191Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
XVI. Commitments and Contingencies
1. Significant Commitments
Important commitments on the balance sheet day
As at June 30 2026 the Company had the following outstanding pledges:
(1) On June 03 2026 the Company renewed the Guarantee Contract for Pledge of Asset Pool (No. 33100000)
Zheshang Asset Pool Pledge (2026) No. 08351 with Zheshang Bank Co. Ltd. Hangzhou Branch (valid from June 3
2026 to May 31 2027) whereby to provide guarantees for the Asset Pool Business Cooperation Agreement jointly
entered into by the Company and its subsidiaries Zhejiang Dahua Vision Technology Co. Ltd. Zhejiang Dahua
System Engineering Co. Ltd. Zhejiang Fengshi Technology Co. Ltd. Zhejiang Dahua Zhilian Co. Ltd. and
Zheshang Bank Co. Ltd. Hangzhou Branch with a maximum financing facility of RMB 2 billion for the pledged asset
pool.Under this note-pool arrangement as of 2026-06-30 the Company had RMB 14369573.46 of notes receivable not
yet due subsidiary Zhejiang Dahua Vision Technology Co. Ltd. had RMB 476381445.00 of notes receivable not yet
due subsidiary Zhejiang Dahua System Engineering Co. Ltd. had RMB 5692140.71 of notes receivable not yet due
subsidiary Zhejiang Dahua Zhilian Co. Ltd. had RMB 124020308.90 of notes receivable not yet due and subsidiary
Zhejiang Fengshi Technology Co. Ltd. had RMB 1792816.62 of notes receivable not yet due.Under this pledge the amount of banker’s acceptances issued by the Company was RMB 3602765.26 and the
amount of banker’s acceptances issued by subsidiary Zhejiang Dahua Vision Technology Co. Ltd. was RMB
65982749.32 the amount of banker’s acceptances issued by subsidiary Zhejiang Dahua System Engineering Co.
Ltd. was RMB 702945.07 the amount of banker’s acceptances issued by subsidiary Zhejiang Dahua Zhilian Co. Ltd.was RMB 270470311.52 and the amount of banker’s acceptances issued by subsidiary Zhejiang Fengshi
Technology Co. Ltd. was RMB 230321469.93.
(2) On March 18 2025 the Company entered into the Credit Agreement for Notes Pool Business No.
571XY250318T000009 (valid from March 19 2025 to March 18 2028) with China Merchants Bank Co. Ltd. Hangzhou
Branch whereby to establish a note pool facility of RMB 1.5 billion and allocate the facility simultaneously to its
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 arrangement as of 2026-06-30 the Company had RMB 153593609.20 of notes receivable not
yet due (of which RMB 151000000.00 were related-party notes included within the scope of consolidation) subsidiary
Zhejiang Dahua Vision Technology Co. Ltd. had RMB 17460111.12 of notes receivable not yet due and subsidiary
Zhejiang Fengshi Technology Co. Ltd. had RMB 771364.00 of notes receivable not yet due.Under this pledge the Company had not yet issued any banker’s acceptances; subsidiary Zhejiang Dahua System
Engineering Co. Ltd. issued banker’s acceptances of RMB 696613.61 subsidiary Zhejiang Dahua Zhilian Co. Ltd.issued RMB 42119768.29 subsidiary Zhejiang Fengshi Technology Co. Ltd. issued RMB 39006080.77 subsidiary
Zhejiang Huajian Technology Co. Ltd. issued RMB 8067353.68 and subsidiary Zhejiang Huaxiao Technology Co.Ltd. issued RMB 97854.06.
(3) On May 17 2024 the subsidiary Zhejiang Dahua 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
the "Pledge Contract for Maximum Amount of Individual Asset Management" to May 16 2027 agreeing to provide a
guarantee for the "Asset Management Service Agreement" jointly entered into by the subsidiary Zhejiang Dahua
Technology Co. Ltd. and Bank of Hangzhou Co. Ltd. The credit limit of the notes pool shall not exceed RMB 200
million.Under this notes pool arrangement as of June 30 2026 outstanding notes receivable of RMB 36927217.42 from the
subsidiary Zhejiang Dahua Vision Technology Co. Ltd. were pledged for the issuance of acceptance bills.Under this pledge subsidiary Zhejiang Dahua Vision Technology Co. Ltd. has not yet issued any banker's
acceptances.
(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 (valid from August 20 2025 to August 19 2026) whereby to
provide a special note pool credit facility of RMB 1.5 billion and allocate the facility simultaneously to its subsidiaries
Zhejiang Dahua Vision Technology Co. Ltd. Zhejiang PixFra Technology Co. Ltd. and Changsha Dahua Technology
Co. Ltd.Under this note pool arrangement as at June 30 2026 the Company had outstanding notes receivable of RMB
310154429.31 not yet due (of which RMB 286000000.00 were notes receivable from related parties within the
consolidation scope); its subsidiary Zhejiang Dahua Vision Technology Co. Ltd. had outstanding notes receivable of
RMB 528049968.69 not yet due (of which RMB 405000000.00 were notes receivable from related parties within the
consolidation scope); its subsidiary Changsha Dahua Technology Co. Ltd. had outstanding notes receivable of RMB
2553293.71 not yet due; and its subsidiary Zhejiang PixFra Technology Co. Ltd.. had outstanding notes receivable of
RMB 2400766.00 not yet due which were pledged for the issuance of bank acceptance bills.Under this pledge arrangement the Company had not issued any bank acceptance bills; its subsidiary Zhejiang Dahua
Vision Technology Co. Ltd. issued bank acceptance bills amounting to RMB 524448429.53; its subsidiary Zhejiang
192Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
PixFra Technology Co. Ltd. issued bank acceptance bills amounting to RMB 13517758.66; and its subsidiary
Changsha Dahua Technology Co. Ltd. issued bank acceptance bills amounting to RMB 8536974.45.
(5) On February 11 2026 the Company signed the Asset Pool Business Cooperation Agreement with CITIC Bank
Hangzhou Branch with contract number 2026 CITIC Bank Hangzhou Credit No. 010581 (valid from February 11 2026
to January 19 2028) whereby to provide a special note-pool credit facility of RMB 700 million and allocating the
facility simultaneously to its subsidiaries Zhejiang Dahua Vision Technology Co. Ltd. and Zhejiang Dahua Zhilian Co.Ltd.Under this note-pool arrangement as of June 30 2026 the company had RMB 58000000.00 of notes receivable not
yet due (of which RMB 58000000.00 were notes receivable from related parties within the scope of consolidation)
subsidiary Zhejiang Dahua Vision Technology Co. Ltd. had RMB 14591218.27 of notes receivable not yet due and
subsidiary Zhejiang Dahua Zhilian Co. Ltd. had RMB 12488290.88 of notes receivable not yet due pledged for
issuance of banker's acceptances.Under this pledge arrangement the Company had not issued any bank acceptance bills; its subsidiary Zhejiang Dahua
Zhilian Co. Ltd. issued bank acceptance bills amounting to RMB 79259899.89.
(6) On January 22 2026 the Bill Pool Business Cooperation Agreement (Contract No. CIB Binjiang Branch Note Pool
[2026] No. 1) with Industrial Bank Co. Ltd. Hangzhou Branch (valid from January 22 2026 to January 21 2029)
whereby to provide a note pool facility of RMB 300 million and allocate the facility simultaneously to its subsidiaries
Zhejiang Dahua Vision Technology Co. Ltd. and Zhejiang Huajian Technology Co. Ltd.Under this note-pool arrangement as of June 30 2026 the Company had no notes receivable not yet due; subsidiary
Zhejiang Dahua Vision Technology Co. Ltd. had RMB 172025672.76 of notes receivable not yet due (of which RMB
145500000.00 were notes receivable from related parties within the scope of consolidation) used to issue banker's
acceptances.Under this pledge the Company had not yet issued banker's acceptances; subsidiary Zhejiang Dahua Vision
Technology Co. Ltd. had issued banker's acceptances in the amount of RMB 78818605.25 and subsidiary Zhejiang
Huajian Technology Co. Ltd. had issued banker's acceptances in the amount of RMB 13867778.77.
(7) Zhejiang HuaRay Technology Co. Ltd. entered into the Credit Agreement for Notes Pool Business with the
Hangzhou Branch of China Merchants Bank Co. Ltd. whereby to provide a note pool facility of RMB 200 million.Under this notes pool arrangement as of June 30 2026 Zhejiang HuaRay Technology Co. Ltd. has RMB
27077401.31 of notes receivable not yet matured pledged for issuing acceptance bills. Under this pledge the
subsidiary Zhejiang HuaRay Technology Co. Ltd. issued a banker's acceptance in the amount of RMB 26524480.37.
2. Contingencies
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) 3.06
Based on the share capital of 3269262074 shares as of
2026-08-14 a cash dividend of RMB 3.06 (inclusive of
tax) will be distributed to all shareholders for every 10
Profit distribution plan shares. This distribution will not implement the
capitalization of capital reserves into share capital nor
issue bonus shares; the remaining undistributed profit will
be reserved for future distribution.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.
193Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Financial Information of the Reporting Subsection
Regional subsection
Unit: RMB
Item Operating Revenue Operating Cost
Domestic 8627526794.09 5265993259.91
Overseas 8076167471.29 4245454410.22
Total 16703694265.38 9511447670.13
Product subsection
Unit: RMB
Item Operating Revenue Operating Cost
AIoT Products and Solutions 13935660093.26 7725769457.27
Including: Software Business 997915436.95 345673503.38
Innovative Businesses 2602098202.02 1675677072.25
Others 165935970.10 110001140.61
Total 16703694265.38 9511447670.13
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) 2801063842.71 4288801180.60
1 to 2 years 322193850.28 235657039.00
2 to 3 years 163123668.41 197513351.01
3 years or above 348632835.17 281616864.64
3 to 4 years 113972480.07 79638981.41
4 to 5 years 105660107.08 88006193.53
5 years or above 129000248.02 113971689.70
Total 3635014196.57 5003588435.25
(2) Disclosure by Bad Debt Provision Method
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Amou Proporti Accrued value Proporti AccruedAmount Amount Amount value
nt on Ratio on Ratio
Accounts
receivabl
es with
the bad 7145 71456 100.00 68818 68818 100.00
debt 669.9 0.20% 0.14%69.96 % 00.94 00.94 %
provision 6
accrued
based on
single
194Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
item
Among
them:
Accounts
receivabl
e with
insignific
ant single
amount 7145
71456100.006881868818100.00
but 669.9 0.20% 0.14%
69.96%00.9400.94%
accrued 6
for
separate
provision
of bad
debt
Accounts
receivabl
es with
the bad
3627339624996748040
debt 231625 192674
868599.80%6.38%42689.06634.99.86%3.86%32357.
provision 836.69 276.60
26.61923171
accrued
based on
combinati
ons
Among
them:
Portfolio
1:
Consolid 2454 24547 37796 37796
ated 7941 67.53% 94161. 19861. 75.54% 19861.Related 61.11 11 37 37
Parties
Portfolio
Portfolio
2: Aging 1173 12170 10244
231625941448192674
Analysis 0743 32.27% 19.75% 86772. 24.32% 15.83% 12496.
836.69528.81276.60
Method 65.50 94 34
Portfolio
3635339625003548040
100.00238771100.00199556
Total 0141 42689. 88435. 32357.%506.65%077.54
96.57922571
By category of provision for bad debts on an individual basis: accounts receivable with individually accrued bad debt
provisions where the individual amount is not material
Unit: RMB
Opening balance Closing balance
Name Reason forBad debt Bad debt
Book balance Book balance Accrued Ratio making bad
provision provision
debt provision
Expected to
Customer 1 5409849.60 5409849.60 5409849.60 5409849.60 100.00% be unable to
recover
Other 1471951.34 1471951.34 1735820.36 1735820.36 100.00% Expected to
195Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
sporadic be unable to
customers recover
Total 6881800.94 6881800.94 7145669.96 7145669.96
Provision for bad debts by category name based on combination: aging analysis method combination
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrued Ratio
Within 1 year (including 1
672367037.8633618351.905.00%
year)
1 to 2 years 199038483.90 19903848.39 10.00%
2 to 3 years 87143478.35 26143043.51 30.00%
3 to 4 years 98286122.97 49143061.48 50.00%
4 to 5 years 67108555.06 53686844.05 80.00%
5 years or above 49130687.36 49130687.36 100.00%
Total 1173074365.50 231625836.69
If the bad debt provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable □Not Applicable
(3) Provision for Bad Debts Accrued Recovered Or Reversed in This Period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category
balance Recovered orAccrued Written Off Others balance
Reversed
Bad debt 199556077.5 238771506.6
42303366.363087937.25
provision 4 5
199556077.5238771506.6
Total 42303366.36 3087937.25
45
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 3087937.25
Write-off of important accounts receivable:
None
(5) Accounts Receivable and Contract Assets of the Top Five Closing Balances Collected by
Debtors
Unit: RMB
Name of Unit Accounts Closing balance Closing balance As a percentage Closing balance
receivable of contract of accounts of accounts of provision for
196Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
closing balance assets receivable and receivables and bad debts on
contract assets total ending accounts
balance receivable and
impairment of
contract assets
1684806807.31684806807.3
Customer 1 45.80%
33
Customer 2 283995835.40 283995835.40 7.72%
Customer 3 180813427.85 180813427.85 4.92%
Customer 4 158984435.32 2731479.77 161715915.09 4.40% 65880114.87
Customer 5 120889466.01 3232625.78 124122091.79 3.37% 14025830.96
2429489971.92435454077.4
Total 5964105.55 66.21% 79905945.83
16
2. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Other Receivables 17301142770.55 14419762765.91
Total 17301142770.55 14419762765.91
(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 17218500453.46 14267847401.84
Equity Transfer Fund 71683294.00
Deposits 40041285.19 41920742.52
Employee home loan 33557572.00 38932850.00
Prepaid or advance expense 36177659.85 32314147.46
Others 352217.13 352417.13
Total 17328629187.63 14453050852.95
2) Disclosure by Aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 16470855303.17 13693636091.28
1 to 2 years 252650142.55 372767334.00
2 to 3 years 274807384.11 80860324.04
3 years or above 330316357.80 305787103.63
3 to 4 years 56671412.06 46473845.99
4 to 5 years 41765376.28 33231067.76
5 years or above 231879569.46 226082189.88
Total 17328629187.63 14453050852.95
197Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
3) Disclosure by Bad Debt Provision Method
Unit: RMB
Closing balance Opening balance
Categor Book balance Bad debt provision Book balance Bad debt provision
y Book BookProporti Accrued value Proporti AccruedAmount Amount Amount Amount value
on Ratio on Ratio
Provisio
n of bad
debts 17328 17301 14453 14419
100.0027486100.0033288
based 629187 0.16% 142770 050852 0.23% 762765
%417.08%087.04
on .63 .55 .95 .91
combin
ation
Among
them:
Portfoli
o 1:
Consoli
17218172181426714267
dated
50045399.36%50045384740198.72%847401
Related.46.46.84.84
Parties
Portfoli
o
Portfoli
o 2:
Aging
110128274868264218520333288151915
Analysi 0.64% 24.96% 1.28% 17.97%
734.17417.08317.09451.11087.04364.07
s
Portfoli
o
17328173011445314419
100.0027486100.0033288
Total 629187 142770 050852 762765
%417.08%087.04.63.55.95.91
Provision for bad debts by category name based on combination: aging analysis method combination
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrued Ratio
Within 1 year (including 1
54289936.312714496.825.00%
year)
1 to 2 years 19039391.14 1903939.11 10.00%
2 to 3 years 12224338.40 3667301.52 30.00%
3 to 4 years 8145920.26 4072960.13 50.00%
4 to 5 years 6507142.82 5205714.26 80.00%
5 years or above 9922005.24 9922005.24 100.00%
Total 110128734.17 27486417.08
Provision for bad debts based on general model of expected credit losses:
Unit: RMB
Phase One Phase Two Phase Three
Bad debt provision Expected credit Expected credit Expected credit Total
losses in the next 12 losses for the entire losses for the entire
months extension (without extension (with credit
198Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
credit impairment) impairment)
Balance as of
19510706.8013629310.93148069.3133288087.04
January 01 2026
Balance as of
January 01 2026 in
this period
--Transfer to phase
-350381.04350381.04
two
--Transfer to phase
-65282.3565282.35
three
Provisions of this
-4728520.41-949924.21-114335.34-5792779.96
period
Write off in this
4000.004890.008890.00
period
Balance as of June
14362523.0013029767.7694126.3227486417.08
302026
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
33288087.04-5792779.968890.0027486417.08
provision
Total 33288087.04 -5792779.96 8890.00 27486417.08
Significant amount of reversed or recovered 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 8890.00
Write-off of other important receivables:
None
6) Other Receivables of the Top Five Closing Balances Collected by Debtors
Unit: RMB
As a percentage Bad debt
Nature of of total other provision
Name of Unit Closing balance Aging
the funds receivables at the at the
end of the period end of
the
199Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
period
Within 1 year RMB
12458301725.681-2
Zhejiang Dahua
Incomings years
Vision 12458692671.8
and RMB 12420.44 2-3 years 71.90%
Technology Co. 9
outgoings RMB 8464.90 3-4 years
Ltd.RMB 200.00 4-5 years RMB
369860.87
Incomings
Zhejiang Dahua
and 2489213382.33 Within 1 year 14.36%
Zhilian Co. Ltd.outgoings
Zhejiang Huaqi
Incomings
Intelligent
and 954181476.00 Within 1 year 5.51%
Technology Co.outgoings
Ltd.Chengdu Dahua
Within 1 year RMB
Zhian Incomings
133135820.01 1-2 years
Information and 428110629.39 2.47%
RMB 137142753.82 2-3
Technology outgoings
years RMB 157832055.56
Service Co. Ltd.Within 1 year RMB
234271809.95 1-2 years
Zhejiang Dahua RMB 246535.39 2-3 years
Incomings
System RMB 393307.72 3-4 years
and 282360467.66 1.63%
Engineering Co. RMB 2900000.00 4-5
outgoings
Ltd. years RMB 4700400.00
over 5 years RMB
39848414.60
16612558627.2
Total 95.87%
7
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 7926431385 7926431385 7923455949 7923455949
subsidiaries .75 .75 .26 .26
Investment in
172074774.6152188145.4155583278.1135696648.9
affiliates and 19886629.20 19886629.20
2200
joint ventures
8098506160807861953180790392278059152598
Total 19886629.20 19886629.20.37.17.36.16
(1) Investment in Subsidiaries
Unit: RMB
Opening Decrease/Increase in the current period Closing
balance
Invest Provisi balance ofThe invested Opening balance of on for Closing balanceInvestments ment Oth provisionentity (book value) provision (book value)
for increased decre
impair ers for decline
ased ment in valueimpairme accrue
200Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
nt d
Zhejiang Dahua
System
540661946.58220330.06540882276.64
Engineering Co.Ltd.Zhejiang Dahua
Security Network
102204947.57102204947.57
Operation Service
Co. Ltd.Zhejiang Dahua
Ju'an Technology 5100000.00 5100000.00
Co. Ltd.Guangxi Dahua
Information
6202355.686202355.68
Technology Co.Ltd.Dahua Technology
669687347.00669687347.00
(HK) Limited
Zhejiang Dahua
1300743888.61302636353.
Vision Technology 1892464.75
338
Co. Ltd.Guangxi Dahua
Yunlian
Information 20002580.76 20002580.76
Technology Co.Ltd.Hangzhou
Xiaohua
9318750.139318750.13
Technology CO.LTD.Zhejiang Dahua 1888395709.2 1888447084.
51375.68
Zhilian Co. Ltd. 1 89
Zhejiang Dahua
Investment
85284000.0085284000.00
Management Co.Ltd.Guangxi Dahua
71316248.9071316248.90
Zhicheng Co. Ltd.Zhejiang HuaRay
Technology Co. 40849216.39 160635.68 41009852.07
Ltd.Hangzhou Fuyang
Hua'ao
5124669.785124669.78
Technology Co.Ltd.Zhejiang Huafei
Intelligent
2731123.9418486.002749609.94
Technology CO.LTD.Guizhou Huayi
Shixin Technology 1800000.00 1800000.00
Co. Ltd.Zhejiang Fengshi
Technology Co. 9060723.93 8087.63 9068811.56
Ltd.YIHUA
405100.00405100.00
SERVICES
201Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(HK) LIMITED
Zhejiang Huaxiao
Technology Co. 39108952.26 106795.20 39215747.46
Ltd.Xi'an Dahua
Zhilian Technology 991047555.55 114767.27 991162322.82
Co. Ltd.Jiangsu Huaruipin
Technology Co. 18020674.13 18020674.13
Ltd.Beijing Huayue
Shangcheng
Information 10874903.02 38319.95 10913222.97
Technology
Service Co. Ltd.Zhejiang Dahua
Jinzhi Technology 10000000.00 10000000.00
Co. Ltd.Shanghai
Huashang
Chengyue
2381088.2732350.512413438.78
Information
Technology
Service Co. Ltd.Zhejiang
Zhoushan Digital
18679176.0018679176.00
Development
Operation Co. Ltd.Guangxi Dahua
Technology Co. 30000000.00 30000000.00
Ltd.Zhejiang Huayixin
Technology Co. 44312281.89 44312281.89
Ltd.Zhejiang Huaruijie
Technology Co. 53826622.38 129055.40 53955677.78
Ltd.Chengdu Dahua
Zhilian Information
600690562.5162390.26600752952.77
Technology Co.Ltd.Chengdu Dahua
Zhian Information
554700000.00554700000.00
Technology
Service Co. Ltd.Chengdu Huishan
Smart Network
5800000.005800000.00
Technology Co.Ltd.Zhejiang Huajian
Technology Co. 24718313.82 35739.59 24754053.41
Ltd.Guangxi
Huacheng
162313.737702.50170016.23
Technology Co.Ltd.Dahua Technology 72864.00 72864.00
202Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Canada Inc.Chengdu Dahua
Zhishu Information
10000000.0010000000.00
Technology
Service Co. Ltd.Zhengzhou Dahua
Zhian Information
30000000.0030000000.00
Technology Co.Ltd.Dahua Technology
International Pte. 1000000.00 1000000.00
Ltd.Changsha Dahua
Technology Co. 100023115.80 100023115.80
Ltd.Zhejiang Pixfra
Technology Co. 592904907.42 73905.53 592978812.95
Ltd.Zhejiang Dahua
Intelligent IoT
15869118.5315869118.53
Operation Service
Co. Ltd.Henan Dahua
Zhilian Information
127933.888280.19136214.07
Technology Co.Ltd.Yibin Huahui
Information
23018.817124.8130143.62
Technology Co.Ltd.Luoyang Dahua
Zhiyu Information
10000000.0010000000.00
Technology Co.Ltd.Guangdong
Huaxiyue
Intelligent 221883.68 221883.68
Technology Co.Ltd.Zhejiang Huaqi
Intelligent
7625.487625.48
Technology Co.Ltd.Total amount of
2055.082055.08
other companies
7923455949.27926431385.
Total 2975436.49
675
(2) Investment in Affiliates and Joint Ventures
Unit: RMB
Openi Openi Decrease/Increase in the current period Closing Closing
The invested ng ng Invest Invest Invest Adjust Other Cash Provis balance balanceOt
entity balan balan ments ment ment ment chang divide ion for (book of
ce ce of heincrea decre profit on es in nds or impair value) provision
(book provisi rssed ased and other equity profit ment for
203Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
value) on for loss compr declar accru decline
impair recog ehens ed to ed in value
ment nized ive distrib
under incom ute
the e
equity
metho
d
I. Joint Ventures
II. Joint Ventures
Ruicity Digital 2478 1988 1942
4421552198866
Technology 7307. 6629. 8219.
6.7929.20
Co. Ltd. 19 20 60
Ningbo
Huayan
Chuangxi
7734-
Venture Capital 2287 7741941
0174.1494
Investment 35.40 9.58
5690.38
Partnership
(Limited
Partnership)
Dezhou Shuzhi
3403-
Information 3302455
401.11009
Technology .37
945.82
Co. Ltd.Zhejiang
-
Huachuang 3016
29152725074
Vision 5765.
022.23.68
Technology 96
8
Co. Ltd.-
135619881942-
27871521881198866
Subtotal 9664 6629. 8219. 1494
232.745.4229.20
8.90206090.38
0
-
135619881942-
27871521881198866
Total 9664 6629. 8219. 1494
232.745.4229.20
8.90206090.38
0
4. Operating Revenue and Operating Cost
Unit: RMB
Amount Occurred in the Current Period Amount Occurred in the Previous Period
Item
Revenue Cost Revenue Cost
Principal operations 4774356213.95 538950184.05 4231497910.03 630547896.06
Other operations 34670375.48 15322507.27 37893241.88 18658702.11
Total 4809026589.43 554272691.32 4269391151.91 649206598.17
5. Investment Income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
204Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Investment income from long-term
equity investments accounted for -2787232.70 -8941186.68
using the equity method
Gains on disposal of long-term equity
680790600.98
investments
Investment income from financial
assets held for trading during the 5438319.07 45000.00
holding period
Gains on disposal of financial assets
9064194.58117213761.26
held for trading
Investment income on other non-
current financial assets 25472.14 -49372.45
during the holding period
Investment income from reverse
350545.941203179.63
repurchase of treasury bonds
Gains on derecognition of financial
-8915010.82-2513843.30
assets
Total 3176288.21 787748139.44
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 3094070.44
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 108952464.65
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
15271971.03
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
405662605.16
others
Reversal of the receivables depreciation reserves for separate
570266.20
impairment test
Profits and losses on debt restructuring -13393578.78
Non-operating revenue and expenses other than the above 1762364.46
Less: impact of income tax 75985509.95
Impact of minority equity (after tax) 7202489.41
Total 438732163.80 --
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.
205Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Explanation of the circumstances under which items of non-recurring gains and losses enumerated in the No. 1
Explanatory Announcement on Information Disclosure for Companies Issuing Their Securities to the Public — Non-
recurring Gains and Losses are classified as recurring gains and losses.□ Applicable □Not Applicable
2. Return on Net Assets and Earnings Per Share
Earnings per share
Profit for the reporting period Weighted Average ROE Basic Earnings per Share Diluted Earnings per Share
(RMB/Share) (RMB/Share)
Net profit attributable to
common shareholders of the 6.15% 0.73 0.73
Company
Net profit attributable to
common shareholders of the
Company after deducting 5.02% 0.60 0.60
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 the explanation of differences in accounting data between domestic and overseas
accounting standards if the data audited by an overseas audit firm has been adjusted for
such differences the name of such overseas firm shall be disclosed.□ Applicable □Not Applicable
Zhejiang Dahua Technology Co. Ltd.Legal representative: Fu Liquan
August 15 2026
206
沪公网安备31011802005267号
