SECURITIES CODE:002236.SZ SECURITIES ABBREVIATION:DAHUA PUBLIC ANNOUNCEMENT: No.2019-004 ZHEJIANG DAHUA TECHNOLOGY CO., LTD. PRELIMINARY FINANCIAL DATA FOR THE YEAR OF 2018 Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as the “Company”) and all members of the Board of Directors hereby guarantee that the contents of this announcement shall be true, accurate and complete without any false records, misleading statements or material omissions therefrom. Important: The 2018 annual financial data provided in this announcement are only preliminary accounting data and have been audited by internal audit department of the Company, but have not been audited by the certified public accountants. There may be discrepancies between the financial data published in this announcement and the final data disclosed in the 2018 annual report. Investors are advised to take note of the investment risks. I. KEY ACCOUNTING DATA AND FINANCIAL INDICATORS FOR THE YEAR OF 2018 (in RMB, except per share data) The current The corresponding Increase/ Item Name reporting period period of last year Decrease Total operating revenue 23,665,688,106.22 18,844,458,053.78 25.58% Operating Profit 2,696,619,590.13 2,632,265,210.05 2.44% Total Profit 2,772,184,869.69 2,642,207,856.14 4.92% Net profits attributable to 2,531,526,444.05 2,378,726,820.22 6.42% shareholders of the Company Basic earnings per share (RMB) 0.87 0.82 6.10% Weighted average ROE 22.21% 25.47% -3.26% At the end of the At the beginning of Increase/ current reporting the current reporting Decrease period period Total assets 26,350,159,781.59 21,333,478,563.97 23.52% Owners’ equity attributable to 12,620,598,242.22 10,466,434,375.19 20.58% shareholders of the Company Share Capital 2,997,621,930.00 2,898,756,130.00 3.41% Net asset per share attributable 4.21 3.61 16.62% to shareholders of the Company Note:The above figures are at consolidated level of the Company. II. INFORMATION ABOUT OPERATING RESULTS AND FINANCIAL POSITION 1. During the reporting period, the Company achieved operating revenue of RMB23,665,688,106.22, representing an increase of 25.58% as compared to the corresponding period of last year. Operating Profit amounted to RMB 2,696,619,590.13, representing an increase of 2.44% as compared to the corresponding period of last year. The Company achieved total Profit of RMB 2,772,184,869.69, representing an increase of 4.92% as compared to the corresponding period of last year. Net profits attributable to shareholders of the Company amounted to RMB 2,531,526,444.05, representing an increase 6.42% as compared to the corresponding period of last year. During the reporting period, the company strengthened the precise investment in R&D, continuously improved its video-centric smart IOT solution capabilities,grasped the development trend of the market and industry, and realized the continuous growth of the company's performance. 2. During the reporting period, the Company’ total asset increased by 23.52% and net asset increased by 20.58%, mainly due to the expansion of the business scale and the increase of the profit. III. EXPLANATION FOR DISCREPANCIES FROM PREVIOUS OPERATING RESULTS EXPECTATION The business performance disclosed in this announcement is in line with the 2018 operational results expectation disclosed in the third quarter report of 2018. IV. DOCUMENTS AVAILABLE FOR INSPECTION 1. The comparative balance sheet and income statement that signed and sealed by the person in charge of the Company, the responsible person in charge of accounting work, and the person in charge of accounting organization. 2. The internal audit report signed by the person in charge of the internal audit department. Board of Directors ZHEJIANG DAHUA TECHNOLOGY CO., LTD. 27 February 2019