2021
Environmental, Social
and Governance Report
DAHUA
TECHNOLOGY
Table of Contents
01. About This Report /01 10. Employee Care and Common Growth
/40
02. Performance Summary 2021 /02 n Organizational Structure n Employment Overview
n Human Rights n Employee Recruitment
Management
03. Statement from the Chairman /03 n Performance
n Compensation and Management
Welfare
n Employee Care
04. About Dahua /04 n Employee Growth
n Employee Health and
n About Dahua n Global Network Safety Management
n History n Brand Strategy
11. Moving Forward Together in
05. Building an Efficient and Harmony /44
Transparent Governance System n Supplier Management n Exploration of the Market
/10 n High-quality Development Segment and Transparent
and Continuous Stable Procurement
Procurement n Shared Prosperity and
06. Adhering to Compliance, Integrity n Regional Coordination
Harmonious Procurement
and Honesty in Operation /11 and Local Presence n Responsible Mineral
Procurement
n Growth of Suppliers
n Ethics and Integrity n Data Protection n Supply Chain
n Growth of Distributors Management
n Trade Compliance n Tax Compliance
n Open Ecosystem
n Product Compliance n Fair Competition
n Risk Management
12. Carbon Reduction and Green
Development /50
07. ESG Management /15
n Innovation-driven n Environmental
n Sustainable n Interested Party Approach to Green Compliance Management
Development Strategies Participation Development System
n Focus on Substantive n Green Product n Environmental Protection
Issues Management Platform Assurance and
(GPM) Certification for Products
n Packaging Material n Energy Management
08. Empowerment by Digital Management
n Emission Management
Intelligence for Greatness /20 n Water Management
n Hazardous Chemicals
n Solid Waste Management
n Empowerment by n Public Welfare Activities
Digital Intelligence Management n Security Practices
n Clean Technology and
n Upgraded Green
Applications Consciousness
09. Exploration of the Market Segment n Safety Management
Monitoring System
for High-Quality Development /27
n Innovation and n Cyber Security
Research 13. Appendix /60
n Professional Service
n Building a Secure and Delivery for Global n Appendix 1: Enterprise Honor
and Reliable IT Customers
n Appendix 2: Sustainability Reporting Guidelines
Architecture (GRI Standards) Index
About This Report
01
About This Report
This report describes the actual practice of Zhejiang Dahua Technology Co., Ltd. (hereinafter
referred to as the Company or Dahua) in fulfilling its social responsibilities while achieving its
development in 2021. It also details the Company's efforts at corporate governance, integrity
management, the protection of shareholders' rights and interests, technological innovation,
environmental protection, and public welfare activities, so as to strengthen the communica-
tion and connection between interested parties and the Company.
Basis of Preparation
This report is made according to the Sustainability Reporting Guidelines issued by the Global
Reporting Initiative (GRI) and the Guidance on Social Responsibility (GB/T 36000), and the
Company’s actual situations.
Time Scope
The reporting period is January 1, 2021, through December 31, 2021, and some information
may be beyond this scope. The report covers the information of Zhejiang Dahua Technology
Co., Ltd. and its major subsidiaries.
Data Source
Information and cases disclosed in this report are mainly from the official documents, reports
and relevant open data of Dahua and its major subsidiaries. The Company's board of direc-
tors is responsible for the authenticity, accuracy, and completeness of this report.
Data Description
The Company's financial statements of this year, the related documents, and the company's
statistics. Zhejiang Dahua Technology Co., Ltd. reserves the right to interpret this report.
Release Method
This report can be downloaded from the designated information disclosure website (www.
cninfo.com.cn) and the website of Dahua (www.dahuatech.com). For more information be-
yond this report, refer to the Company's annual report or visit the Company's website.
This document is a translated version of the Chinese version 2021 Environmental, Social and
Governance Report (“2021年大华股份环境、社会及管治报告”), and the published ESG report
in the Chinese version shall prevail.
The complete published Chinese 2021 Environmental, Social and Governance Report may be
obtained at http://www.cninfo.com.cn.
01
Performance Summary 2021
02
Performance Summary 2021
During the reporting period, the Company continued to increase the investment in R&D with customer demand
as the guide and technological innovation as the drive, to provide the foundation for the long-term sustainable
and steady development of the Company. The Company continued to promote management reform, balance the
improvement of profitability while maintaining steady growth of scale, further realize value creation and win-win
results for multiple sides, and constantly create returns for interested parties.
Direct Economic Value Cash Dividends Tax Revenue
Total amount: Total amount: Total amount:
RMB 32.835 billion RMB 809 million RMB 1.204 billion
Growth: 24.07% Cash dividends rate: 23.93%
R&D investment during the Number of new patents and software
RMB 3.452 Billion reporting period 1133 pcs copyrights during the reporting period
Growth rate of new intellectual Cumulative number of patents and
52.6 % 4472 pcs
property in the reporting period software copyrights Innovation
and Research
Number of employees Increase in number of Total staff training
22000+ People worldwide 32.5 % employees worldwide 975000 hours
hours
Average staff training Safety education Dealer training
42.6 hours 100 % 1230 dealers
hours coverage coverage
Employee Growth
and Partnership Coverage rate of new suppliers screened
2600+ Total dealer training hours 95
Ecosystem hours %
by environmental standards
Number of products with China
446 Ton Recyclable wastes 126 pcs
Energy Conservation Certification
Growth rate of products with China Number of materials with RoHS
39 %
Energy Conservation Certification
95520 pcs
certification reports Green
Operation
100 % Coverage of material REACH SVHC information declaration confirmation
Direct Energy Indirect Energy Total Greenhouse
1529810.89 TCE Consumption 8910583.55 TCE 53488.55 Tons of CO2
Consumption Gas Emissions
Number of accidents involving excessive Legal transfer rate of hazardous
0 100 %
emissions and chemical spills waste
Number of accidents involving Number of accidents Controlled rate of
0 excessive emissions of waste 0 100 %
water, waste gas and noise involving chemical spills hazardous wastes
Safe
Production
02
Statement from the Chairman
03
Statement from the Chairman
2021 marks the 20th anniversary of Dahua’s entry into the video
industry. The past 20 years is a period of rapid compound growth
for Dahua. We have established a global network for sales and
service to quickly deliver end-to-end video-centric smart IoT solu-
tions, products and services for 180 countries and regions. We
have continued to integrate social responsibility into Dahua's long-
term development, actively fulfilled our social responsibility and
vigorously innovated green technology, and strived for sustainable,
green and high-quality economic and social development.
In the past year, in the face of a complex external environment in-
cluding the global pandemic, short supply of key components such
as chips, and sharp fluctuations in commodity prices and exchange
rates, we have been committed to the mission of "Enabling a safer
society and smarter living", fulfilled our duties and made continu-
ous efforts. With key information technologies such as software,
big data, artificial intelligence and AIOT, we helped prevent and
control the global pandemic, reduce urban traffic accidents and
personal and property losses, protect the ecological environment,
and improve the efficiency of green energy such as photovoltaic
power and wind power. We assisted in prevention of forest fire,
prohibition of straw burning in rural areas, pollution management of high-emission organizations, prohibition of
fishing in the Yangtze River and other environmental protection actions, thus helping achieve the goals of carbon
peak and carbon neutrality through smart power solutions. We provided more effective products and solutions for
urban digital innovation and enterprise digital intelligence transformation, so as to offer Dahua solutions for a bet-
ter life.
In the past year, we have devoted to efficient innovation and high-quality development, and released the strategy
of “Dahua Think #Internet of Things for a Future of Digital Intelligence”. By positioning ourselves as the video-cen-
tric smart IoT solution and service provider, and exploring the two major technical directions of AIOT and the IoT
digital intelligence platforms, we aim to empower countless industries and drive the digital intelligence transforma-
tion of cities, enterprises and families. We strengthened collaborations with partners in the global industrial chain,
and optimized our global business planning of sales, service and supply chain to forge more comprehensive and
open ecological partnerships.
In the past year, Dahua continuously optimized the system and capabilities of corporate governance. We adhered
to keeping compliance with the integrity operation, improved the internal system, and fully integrated compliance
management into all aspects of Dahua's planning, operation and management. We have adopted a people-orient-
ed approach, taken care of our employees, and embarked on a journey towards shared prosperity, thus promoting
the construction of an ecosystem featuring common development of all employees through our continuous efforts
in the fulfillment of career development, income growth, welfare and job satisfaction improvement, and social
responsibility practice for all employees. We have adhered to the responsibility of protecting the environment, ad-
vocated green intelligent IoT, led the innovative development of environmental protection, applied environmental
protection requirements in R&D, manufacturing and IoT solutions, and practiced green manufacturing and green
development.
In 2022, we will transform ourselves through digital intelligence, lead the sustainable development of the industry,
increase investment in R&D, and strengthen the "5 Full" capabilities including Full Sensing, Full Intelligence, Full
Connection, Full Computing, and Full Ecosystem. We will use digital technology to empower numerous industries,
create great value for customers, partners and society, and strive to make more contributions to social and eco-
nomic development as well as environmental protection.
We must spare no effort and make every moment count as we embark on a new journey and aim for a greater fu-
ture with our practical efforts. We look forward to a better year of 2022.
Chairman and President:
03
About Dahua
04
About Dahua
Zhejiang Dahua Technology Co., Ltd. is a world-leading vid-
eo-centric smart IoT solutions and service provider. Being
committed to technological innovation, Dahua focuses on two
core businesses of cities and enterprises. By constantly im-
proving its capabilities in AIOT and the IoT digital intelligence
platform, Dahua promotes the upgrade of cities and enterpris-
es in an all-round way through digital intelligence based on
customer needs, and provides one-stop smart IoT services
and solutions for cities, enterprises and families.
The Company has more than 22,000 employees, over 50% of
which are engaged in R&D. Around 10% of its sales revenue
is invested in R&D each year. It has been making continu-
ous efforts in technological innovation. Currently, Dahua has
established the Advanced Technology Research Institute,
Big Data Institute, Central Institute, Cyber Security Research
Institute, and Smart City Institute. Based on the insight into
the smart IoT and the relevant planning, Dahua continuously
explores new business opportunities, extending its business
scope to machine vision, robots, collaboration through videos,
smart fire protection, automotive electronics, smart storage,
smart security check, smart display control, and smart control,
among others.
* Data source: The 2021 Global Intelligent Video Surveillance Market Information
Service Report released by OMDIA, a market research organization
57
domestic and overseas branches
22000
200
About Dahua
employees
domestic offices
NO.2 *
global market share
180
countries and regions
6400
patents
04
04
Global Network
About Dahua
Dahua has a global marketing and service network with 57 domestic and overseas branches in Asia, North Ameri-
ca, South America, Europe, Africa and Oceania, and more than 200 offices in China to provide fast and high-qual-
ity services to customers. Dahua products are available in over 180 countries and regions around the world. They
are widely applied to multiple fields such as traffic, manufacturing, education, energy, finance and environment
protection to enable a safer society and smarter living.
Manufacturing and supply center Research center
4 manufacturing and supply centers 6 continents covered
Global Network
Hangzhou (China), Changsha (China), Asia, Europe, Africa, North America,
India, Vietnam South America, Oceania
5 research centers 28 global service outlets
Hangzhou (China), Xi'an (China), Hangzhou (China), Hong Kong (China),
Chengdu (China), Poland, Mexico Russia, Poland, Dubai, India, Indonesia,
South Africa, the United States, Brazil,
Mexico, etc.
05
04
History
About Dahua
Introduced the IT common cloud technology
Set up the Imou (formerly Lechange)
brand to enter the civilian video
surveillance market
Established the first overseas branch
in the United States
Launched the technology of
"Hardware-like Software Platforms",
making large-scale deployment
and maintenance easy
2014
Introduced the independently
Invented the 8-channel audio-video developed HDCVI technology, which
synchronization embedded DVR and
created the No.1 brand of embedded DVR
2013 was subsequently adopted by the
HDCCTV Alliance and became the
first international standard in the
domestic security industry
Launched the intelligent all-in-one
Established Zhejiang transportation solution,
Dahua Technology Co., Ltd. the records of which
became the de facto standard
2012
and entered the video
surveillance industry adopted by China's electronic police
Expanded overseas businesses
2010
2008
History
2007
2003
2002
Introduced the CMOS technology
and launched the high-definition
2001 high-magnification camera
Established the first post-doctoral
mobile station in China's security
industry
Established Zhejiang Dahua Security
Network Operation Service Co., Ltd.
Listed on the Shenzhen Stock Exchange
on May 20
06
04
Provide video-centric smart IoT solutions and
About Dahua
Obtained the CMMI5 certification, services to facilitate digital innovation of cities
thus establishing the company's global and digital intelligence transformation of enterprises
leading position in software development
Released the AIOT and SDTV strategies
Launched the GAIA big data platform
FUTURE
2021
2020
2019
2018
2017
2016
Launched Dahua Heart of City, Internet of Things
a new smart city architecture for a Future of Digital Intelligence
Launched the European Supply Center Released the brand-new
Dahua Think# Strategy
The ultra-high precision thermal imaging body
temperature measurement solution was launched
in a week to facilitate pandemic prevention and control.
Built 8 domestic regional software development centers
History
to accelerate regional application of software
Dahua Intelligence (IoT) Industrial Park
was put into use
07
04
Strategy
BrandInternet of Things for a Future of Digital Intelligence
About Dahua
Internet of Things for a Future of Digital Intelligence
2021年10月，公司全新升级发布Dahua Think#战略，
In October 2021, Dahua released the brand-new Dahua Think#依托大华股份20年的技术积累与行业沉淀，坚持以视频为核心的智
strategy. With 20 years of experience in technology and persistence in the in-
has adhered to its strategic positioning as a 聚焦城市、企业两大业务战略， and service provider, and focused on
dustry, Dahua慧物联解決方案提供商与运营服务商战略定位，video-centric smart IoT solution坚定AIOT、物联数智平台两大技术战略， the strategies
for two major businesses of cities and enterprises and the two major technical areas of AIOT and the IoT digital intelligence platform. It has
夯实全感知、the foundation of its "5 Full" capabilities that include Full Sensing, Full Intelligence, 打造共建、共赢、
continuously consolidated全智能、全连接、全计算、全生态“五全”数智能力基座，释放智慧物联价值，聚联合作伙伴，Full Connection,共Full Computing,
and Full Ecosystem to provide the value of smart IoT. Together with its partners, Dahua aims to create a collaborative and mutually beneficial
生的智慧物联生态共同体，enabling digital innovation of cities and digital intelligence transformation of enterprises, Dahua has also
smart IoT ecosystem community. While赋能城市数字化创新与企业数智化转型，助力经济社会可持续、绿色、高质量发展。
promoted the sustainable, green, and high-quality economic and social development.
Innovated Businesses Full Ecosystem
Machine Vision
Service
and Robots
Ecosystem
Smart Living IoT Digital Intelligence Platform
Business
Ecosystem
Enterprise
Collaboration
through videos
City
Software
Smart Fire Ecosystem
Protection
Smart Storage AloT Algorithm
Ecosystem
Automotive
electronics
Hardware
Ecosystem
Smart Security
Check
…… ……
Full Sensing Full Intelligence Full Connection Full Computing
聚焦城市、企业两大业务战略Strategies of Two
Focusing on
Businesses of Cities and Enterprises
City
Empowered by digital intelligence to build a new ecosystem of "unity, compatibility,
sharing and openness" and to promote digital transformation
Brand Strategy
5000+ scenarios, 200+ industry solutions, 800+ business components
...
Urban Traffic Environment Agriculture Water
Governance Transportation Port Emergency Community Railway Aviation Control Protection and Rural Area Conservancy
Public Security Governance Efficiency Orderly Urban Management Green Development
Improvement for the Benefit of People
Disaster Prevention
Efficient Management Prevention Environment Protection Public service ...
and Relief
08
Enterprise
...
Urban Traffic Environment Agriculture Water
Governance Transportation Port Emergency Community Railway Aviation Control Protection and Rural Area Conservancy
Public Security Governance Efficiency Orderly Urban Management Green Development
Improvement for the Benefit of People
04
Brand Strategy
Disaster Prevention Efficient Management Prevention Environment Protection Public service ...
and Relief
About Dahua
Focusing on Strategies of Two
Businesses of Cities and Enterprises
Enterprise
Explore the market segment, enable business innovation,
and facilitate the digital intelligence transformation of enterprises
3000+ business scenarios, 300+ industry solutions, 1000+ business components
...
Culture &
Building Manufacturing Agriculture Logistics Finance Electricity Steel Petrochemistry Coal Healthcare Education Tourism Retail
Security System Optimization Production Efficiency Improvement Operation Management Facilitation
Internet of Things for a Future of Digital Intelligence
Energy Saving and Cost Reduction and Epidemic Regulation and
Safety Operation ...
Efficiency Improvement Production Increase Prevention Management
坚定AIOT、物联数智平台两大技术战略
Adhering to Two Technical Strategies of AIOT and the IoT
Digital Intelligence Platform
City Enterprise
IOT DIGITAL
INTELLIGENCE Business
Online Data Smart Monitoring Smart Data Empowerment
PLATFORM
Intelli-
Heteroge- Full-pro- Coopera-
Accumulate the core Collection
Sensing Dispatch Algorithm Training One-stop neous cess
Modular- gence
tion &
as Video IoT ization Transfor-
technologies and industry access Center Library Engine Engine Data Intelli- Open-
required mation
paradigms of video IoT to Fusion gence ness
Brand Strategy
empower thousands of
industries to realize digital
intelligence transformation
Computing Power
Task Coordination Data Coordination Business Coordination
Coordination
Multidimensional Multi-end Control
Awareness Connection Smart Computing Interactions
AIOT
Sensing Environ- Cashless
Multidi- Remote
Build leading capabilities of Dimen- ment Channel Security Edge High-density Toll Precise
mension- Interac-
sensing, connection, edge sion Adapta-
al Fusion
Upgrade Reinforcement Computing Storage Collec-
tion
Reach
Upgrade tion tion
computing and control
interactions to create a world
of digital intelligence
09
05
Build an Efficient and Transparent Governance System
Build an Efficient and Transparent Governance System
Corporate Governance
Dahua strictly follows the Company Law of the People's Republic sociation and the Rules of Procedure of the Board of Directors;
of China, the Securities Law of the People's Republic of China, the all the directors are able to perform their due duties and consci-
Code of Corporate Governance for Listed Companies in China, entiously attend the Board meetings and shareholders' meetings
the Rules Governing the Listing of Shares on Shenzhen Stock to safeguard the legitimate rights and interests of the Company
Exchange and other relevant laws and regulations and regulatory and shareholders.
documents of regulatory authorities to establish a mutually inde-
pendent governance structure with checks and balances featuring Supervisors and the board of supervisors: The Company cur-
shareholders’ meeting, board of directors, board of supervisors rently has three supervisors, including two employee supervisors.
and management. Each party fulfills its obligation and shoulders The number and composition of the board of supervisors meet
its responsibility to ensure the regulated operation of Dahua. the requirements of relevant laws and regulations and the Arti-
cles of Association. The board of supervisors convenes supervi-
The board of directors has four professional committees to assist sor meetings in strict accordance with the Articles of Association
the board of directors in performing decision-making and monitor- and the Rules of Procedure of the Board of Supervisors. All the
ing functions in terms of strategic decision-making, nomination, supervisors perform their duties conscientiously, and effectively
compensation and assessment, and audit. Dahua has also em- supervise and express independent opinions on the legitimacy
ployed independent directors to participate in decision-making and and compliance of the performance of the corporate finance,
supervision, reinforcing the objective and scientific decision-mak- directors and senior managers in an integral, diligent and consci-
ing by the board of directors. entious manner, to safeguard the legitimate rights and interests
of the Company and shareholders.
Shareholders
Meeting Audit Specific members of the committees under the board of di-
Committee rectors:
Strategy Audit Committee: Liu Hanlin (convener), Cao Yanlong, and
Committee Chen Ailing; mainly responsible for communication, supervision
Board of Board of and verification of internal and external audits of the Company.
Supervisors Directors Nomination
Committee Nomination Committee: Cao Yanlong (convener), Liu Hanlin,
Senior Remuneration and Fu Liquan; mainly responsible for selecting and making sug-
Management and Appraisal gestions on candidates, selection criteria and procedures for the
Committee board directors and managers of the Company.
Shareholdersandshareholdersmeeting: TheCompanystan- Remuneration and Appraisal Committee: Zhang Yuli (con-
dardizesthecalling,convening,andvotingproceduresin accor- vener), Liu Hanlin, and Zhang Xingming; mainly responsible for
dance withtheregulationsandrequirementsofthe Regulatory studying and reviewing the remuneration policies and plans of
Opinions for the General Assemblies of Shareholders of Listed the board directors and management of the Company, as well as
Companies,theArticlesofAssociationandtheRulesofProce- formulating remuneration policies with regard to the establish-
duresoftheShareholdersGeneralMeeting.Associatedshare- ment of formal and transparent procedures.
holdersshallavoidvotingwhenrelevantissuesarebeingdis-
cussedduringthesemeetings,andconnectedtransactionsare Strategy Committee: Fu Liquan (convener), Zhang Yuli, Wu
ensured to befairandrationalwithoutharmingtheinter- Jun, and Zhang Xingming; mainly responsible for conducting
estsofshareholders. Treat all shareholders equally to ensure that research and making suggestions on the Company’s long-term
shareholders, especially minority shareholders, can fully exercise development strategy and major investment decisions.
their rights. The general meetings of shareholders are convened by
the Company’s board of directors and witnessed by the lawyer. During the report period, the Company adopts a variety of meet-
ing forms to ensure the smooth convening of the three important
Company and controlling shareholders: TheCompanyisin- meetings, and actively encourage its directors, supervisors and
Corporate Governance
dependentfromits controllingshareholdersintermsofbusi- senior managers to fully perform their duties. In 2021, the Com-
ness,personnel,assets,financeandorganizations.The pany organized 18 board meetings, 11 supervisors meetings and
Company'sboardofdirectors,boardofsupervisorsandotherin- 4 shareholders meetings to strengthen the awareness of internal
ternalinstitutionsoperateindependently. The controlling share- information disclosure compliance, with focus on matters such
holders of the Company are able to strictly regulate their behaviors, as foreign investment, related transactions, external guarantees,
without any behavior that directly or indirectly interfere with the and external financial assistance, among others
Company's decision-making and business activities beyond their
general meetings, or any non-operational behavior of appropriation During the report period, the independent directors of the Com-
of the capital of listed Companies. pany look closely at corporate operations and perform their duties
independently in accordance with relevant rules, laws and reg-
Directors and board of directors: The Company currently has ulations, proposing many professional opinions on the improve-
seven directors, including three independent directors, all of ment of the corporate system and daily operation decisions, and
whom are experts in fields such as corporate management and thus playing their due role in perfecting the corporate supervisory
financial accounting. The number and composition of the board mechanism and safeguarding the interests of the Company and
of directors meet the requirements of relevant laws and regu- shareholders, especially those of public stocks.
lations and the Articles of Association. The Board of Directors
convenes board meetings and implements the resolutions of the For more information pertaining corporate governance, see the
shareholders' meeting in strict accordance with the Articles of As- "Corporate Governance" section of the 2021 Annual Report.
10
06
Adhere to Compliant Integrity Operation
As a global commercial entity, Dahua Technology has always practiced legal and compliant operations with strict adherence to the Code
of Conduct, market discipline and international rules In order to further enhance the Company's competitiveness in the global business
Build an Efficient and Transparent Governance System
expansion, the Company continues to guarantee the high-quality and steady growth of the Company’s performance. the Ethics Compli-
ance Management Organization is composed of the Ethics Compliance Management Committee and the Ethics Compliance Operation
Management Executive Body. The Executive Body consists of the Special Compliance Group and Business Compliance Group.
Responsibilities of the Ethics Compliance 2. Business Compliance Group
Management Committee: 1) Formulate the overall objectives and work plans of the business sec-
1. Formulate the overall requirements, management strat- tor, and promote the implementation of the business compliance work of
egies and organizational forms of the Company's corpo- the sector;
rate ethics compliance management; 2) Cooperate with each Special Compliance Group to achieve objectives
2. Review the operation plans of each Ethical Compliance in the business sector, so as to ensure the effective implementation of
Management Executive Body based on the Company's various compliance plans and measures;
overall requirements for ethics compliance management, 3) Collect and solve business compliance issues in the business sector
and periodically review the implementation of these plans; in a timely manner; For any problem that defies solutions, cooperate with
3. Other major decisions concerning the Company’s cor- each Special Compliance Group to push for solutions. For any problem
porate ethics compliance. that still cannot be addressed, report it to the Company's Ethics Com-
pliance Management Committee for decision-making after making clear
Responsibilities of the Ethics Compliance suggestions on the problem.
Operation Management Executive Body:
Operation Mechanism of Ethics Compliance Manage-
1. Special Compliance Group ment Organization:
1). Formulate operation plans for corresponding modules 1. Convene quarterly meeting of the Ethics Compliance Management
based on the Company's ethics compliance management Committee to review the periodic plan and implementation of ethics com-
requirements, and submit them to the Ethics Compliance pliance operation management, and make decisions on major issues of
Management Committee for review; ethics compliance operation management; in the case of urgent or sud-
2) Work towards the ethics compliance operation objectives den problems, convene special meetings as needed;
of the corresponding module, recruit professionals and 2. Each group of the Ethics Compliance Operation Management Execu-
improve capabilities in the field, establish systematic man- tive Body shall hold monthly operation meetings to manage the periodic
agement and regulation standards, coordinate the efforts plan and implementation of each module’s ethics compliance operation
of different executive departments and compliance groups, management work; if problems are beyond the scope of authority or defy
refine the plan and promote the implementation of the plan; judgments, and thus it is impossible to make decisions, submit relevant
3) Regularly carry out special audits in the field and pro- matters to the Ethics Compliance Management Committee for delibera-
mote the improvement of the auditing work; tion and decision-making in a timely manner as needed.
4) Regularly report progress to the Ethics Compliance Dahua requires all employees to be fully aware of compliance, ensures
Management Committee; that employees at all levels are well informed of and adhere to compli-
5) Collect and solve compliance problems in this module ance requirements through publicity and training, and sign the corre-
in a timely manner. For any problem that defies solutions, sponding commitment documents. The Company regularly reviews the
report it to the Company's Ethics Compliance Manage- compliance status of its internal staff, and shall seriously handle any
ment Committee for decision-making after making clear violations in accordance with the regulations.
suggestions on the problem.
Ethics and Integrity
Dahua adheres to the principle of “honesty for success” and is
committed to strict business code of conduct and ethics rules,
Ethics and Integrity
aiming at building a transparent, fair, equal, honest and trust-
worthy business cooperation environment for our employees,
suppliers and customers. Dahua believes that corruption is the
most serious injustice to hardworking employees. Therefore, Da-
hua attaches great importance to the enrichment of employees’
spiritual well-being while actively leading employees at all levels
to improve their material well-being. Since 2017, Dahua has reg-
ularly carried out honesty and integrity training for new employ-
ees and employees at key positions every month. In addition,
Dahua joined the Trust and Integrity Enterprise Alliance in 2019
to jointly resist corruption with other members of the Alliance.
In 2021, Dahua further strengthened the development of clean
administration, launching the first Clean Administration Month
campaign with the theme of “Understanding responsibility, tak-
ing responsibility and performing responsibility”. The campaign
included commitment signature on the wall, clean administra-
Honest Dahua: Clean Administration Month
tion case study seminars and quizzes, which have been widely
praised by employees from all regions and levels.
11
06
Before major public holidays, Dahua sends a “Integrity Festival” the Company cannot tolerate. The Company will never be soft on
reminder and relevant management rules to all employees, and corruption at any time, and it will continue to improve the policies
clearly informs the official reporting channel and complaint chan- and processes while building an internal accountability system,
nel for corruption; also, following the publication of the Anti-Cor- and work with all employees to defend honesty, transparency and
ruption Case Compilation, in 2021 Dahua released the "Clean integrity which consists of the cornerstone of the Company. The
Administration Comic" which has a wide audience to make em- notice explicitly encourages embezzlement reporting:
ployees unwilling to be corrupted in daily work. (1) If the complaint information is incorrect, the Company will
Build an Efficient and Transparent Governance System
clarify the issue and will not hold any party responsible;
(2) In the case of real-name reporting, if the complaint informa-
tion is proved true after investigation, and thus plays an important
role in cracking the case, helps recovering or reducing the Com-
pany’s economic losses, or makes other substantial contributions
to the Company, the Company will give rewards according to the
Notice on Rewards for Real-Name Reporting.
In 2021, Dahua set up an official WeChat account reporting
channel in addition to the reporting mailbox and hotline, to make
it more convenient for interest impaired parties to file complaints
and safeguard the Company's reputation of “Honest Dahua” with
all sectors of society.
Honesty Reminder & Comic
Complaint and Reporting Channel:
To create an environment where it is impossible for employees
Official WeChat Account: Fanghua Society - Honest Dahua -
to be corrupted, the Company has periodically revised normative
Complaint and Reporting Channel
guidelines including the Eight Provisions on the Work Style of
Email: jbrx@dahuatech.com
Dahua Cadres, the Code of Conduct, the Anti-Fraud System, the
Tel: 86-0571-28816326
Administrative Measures for Reporting Corrupt Practices, the Ad-
Under no circumstances will Dahua allow any retaliation against
ministrative Measures for Employees' Acceptance of Gifts, Gratu-
any reporter who, in good faith, believes that certain actions
ities, and Other Coupons (Cards), the Administrative Measures for
may violate applicable laws, rules and regulations. Any superior
Rewards and Punishments, the Administrative Measures for Con-
or other employee who threatens or impose sanctions on any
fidentiality, and the Employee Handbook. In 2021, Dahua updated
reporter will be subject to penalties including disciplinary action
and re-published the Notice on Rewards for Real-Name Report-
and even dismissal.
ing, which reiterated that corruption is the bottom-line mistake that
Data Protection
The Company pays great attention to data security and privacy protection and takes it as one of our
guiding principles. Since the promulgation of the Cyber Security Law of the People's Republic of China,
the GB/T 35273 Information Security Technology - Personal Information Security Specification, the EU’s
General Data Protection Regulation (GDPR), and other laws and regulations, the Company has made
active responses by setting up a special cyber security and data protection team to pay close attention
to the global data protection laws and regulations, formulating pragmatic compliance strategies, conduct-
ing comprehensive compliance audits, and strictly following the requirements of laws and regulations. In
addition, the Company has collaborated with third-party authorities to introduce external evaluation and
certification, and has passed the German TV Rheinland privacy protection certification for IoT products,
IoT service privacy protection certification, ISO27701 privacy information management system certification
and ISO27018 cloud privacy protection certification.
During the reporting period, with the effective of the Data Security Law of the People's Republic of China
and the Personal Information Protection Law of the People's Republic of China, in order to further improve
the data protection of products and services and better help customers achieve compliance, the Special
Compliance Group has updated the Personal Data and Privacy Protection Code according to product priva-
cy requirements, privacy design principles, and the latest laws and regulations. The Company introduces a
privacy baseline in the product requirement validation and design phase, adopts business-friendly protection
measures throughout the entire life cycle of the product including data collection, transmission, storage, use
Data Protection/Trade Compliance
and deletion, and continues to practice the principles of Privacy by Design and Privacy by Default by taking
into account the user experience features such as privacy policies and privacy-friendly settings.
In July 2021, Cloud Dahua passed the Trusted Cloud Service (TRUCS) certification with its continuous
efforts in the development of data security protection and security management throughout the entire life
cycle of data, which represents that Cloud Dahua has met all certification requirements including data
security, service continuity and user rights protection. This is an important basis for customers to choose
Cloud Dahua as their provider of secure and trusted cloud services.
Trade Compliance
The Company complies with relevant laws and regulations of China, the United Nations, the United States and the European Union. A
Trade Compliance Group has been set up under the Ethics Compliance Management Committee to formulate the overall strategy of the
Company's trade compliance, as well as establish and improve the compliance policies and processes. Through early risk management
and management compliance, the Company promotes the implementation of trade compliance requirements in various business areas
to ensure the all-round implementation of trade compliance policies and control processes in the Company.
12
06
During the reporting period, we continued to improve the Com- and service to ensure information security and automatic control.
pany's trade compliance system, and follow up on the trade During the reporting period, through regular inspection by the
compliance regulations, policies, and law enforcement cases of trade compliance team, self-inspection by each business de-
various countries. Under the guidance of relevant professional partment and annual audit by the internal audit department, we
organizations and other external resources, we have released ensured the implementation of the Company's trade compliance
the updated Dahua Export Control Compliance Manual 2.0 and governance requirements and compliance control points, and
the export control compliance operation guidelines for business performed targeted optimization and update of internal policies
Build an Efficient and Transparent Governance System
departments such as R&D, supply chain and sales, integrating to promote the continuous improvement of the trade compliance
compliance management requirements into every stage of the system.
Company's production and operation management. At the same time, we have actively carried out compliance
Based on the factors such as items, end users, destination coun- training and strengthened employees' compliance awareness
tries/regions, and end purposes, the Company has set up com- through training for all employees and targeted training of rele-
pliance control points in the business process for implementation vant departments. We have enabled compliance personnel in
through informatization and digitization, and optimized the identifi- each department to be familiar with compliance policies and re-
cation and management of trade compliance risks in all stages of quirements, as well as control measures and operations to carry
the business process including R&D, procurement, sales, delivery out compliance work more effectively.
Tax Compliance
Tax compliance refers to the conformity of operation and man- tem, reconciliation system, and invoicing system, to ensure the
agement behaviors of enterprises and their employees to the tax process implementation and continuous update are in place
laws, regulations and regulations on taxation. The Company’s according to regulations. Meanwhile, by establishing and improv-
tax department focuses on establishing a standardized global ing our electronic file management system, the Company has
tax compliance system for the Company's global business op- effectively managed tax compliance-related documents to meet
erations, and on the overall management of tax risks. In order compliance requirements. In addition, the Company regularly ex-
to effectively achieve compliance with tax requirements, the amines tax risks and continuously follows up on their resolution.
Company has carried out corresponding process development, The Company effectively responds to and manages all kinds of
including the standardization and formation of a fixed process tax disputes that may occur globally. In response to the complex-
of tax calculation templates, and the documentation of daily tax ity and distinctiveness of compliance in each country and region,
work operation manuals and procedures. The relevant informa- the Company has set up a special team to build the top-level
tion system construction is also being continuously optimized, compliance framework in a dedicated form so as to gradually
including the global tax platform, related transaction pricing sys- realize the improvement of the global tax compliance system.
Product Compliance
Product compliance management is coordinated and managed dance with product compliance requirements; when the product
by the Product Compliance Unit, which is responsible for for- or the standard is changed after the product is certified, product
mulating the overall product compliance strategy, establishing testing reports and certifications, among other qualifications,
and improving product compliance mechanisms and process- are updated as required in accordance with compliance require-
es, building an internal cross-department product compliance ments to ensure the consistency of mass-produced products
management platform, promoting the implementation of product and certified products, as well as the validity of testing reports
compliance requirements in various business lines, and realizing and certifications. In the process of product sales, the Company
Tax Compliance/Product Compliance/Fair Competition
visual and controllable product compliance management. Prod- sells products in strict compliance with national laws and regula-
uct compliance requirements run through the entire product life tions. Dahua not only pays attention to the product compliance
cycle. The requirements of product compliance are met in every of its own brand, but also attends to the product compliance
stage from the initial stage of product demand validation; in the of its suppliers and customers, with corresponding certification
product design, testing and verification stage, product compli- processes and specifications issued to achieve all-round product
ance standards and laws and regulations are introduced, and compliance control. The implementation of these key measures
product compliance requirements are integrated into business has provided strong guarantee for the compliance of Dahua's
processes and specifications; in the stage of product manufac- product sales in the global market.
turing, inspection and testing are strictly conducted in accor-
Fair Competition
Advocating fair competition and fair trade, Dahua always seeks ment projects, compliance review obligations are performed in
fair and honest competition, and persists in developing its com- strict accordance with local laws and regulations. The Company
petitive edge through quality products and services rather than continues to introduce high-quality external law firm resources at
unethical or illegal business practices. The Company continues home and abroad, and organizes various departments to carry
to pay attention to the developments of the legislation, law out compliance training on anti-monopoly and anti-unfair com-
enforcement and administration of justice related to monopoly petition according to the opinions and guidance of professional
and unfair competition in the jurisdictions where it operates its lawyers, so as to keep improving employees’ awareness of
business. In addition, Dahua regularly reviews and evaluates fairness and honest competition, create a stronger compliance
the compliance of its own competition behavior and business culture featuring opposition to monopoly and unfair competition,
operations, and actively formulates and updates enterprise com- and continue to strengthen the organization's systematic ability
pliance policies including the Code of Conduct. In foreign invest- to prevent and handle relevant compliance risks.
13
06
Risk Management
Based on the COSO-ERM framework and BCM business Risk Management
continuity management system, the Company has estab- Cultural System
Build an Efficient and Transparent Governance System
lished a "risk-oriented, system-based, process-bonded,
control-enabled, and IT-supported" risk management
Foundation
system framework (see the figure on the right) to provide Building
excellent support for the realization of corporate strategies.
Through identifying risks and evaluating their levels in terms Reporting
The first line of defense
Risk Identi-
of severity, likelihood and effectiveness of existing mea- Risk Management Mechanism Risk Manage-
The second line of defense fication
sures, we improve the hierarchical decision-making autho- Monitoring The third line of defense
ment Function
rization system according to the acceptable level of risks, Appraisal System Architecture
Enterprise
establish or optimize systems and processes, promote the Development System
IT-supported processes and other control activities, and es- Strategic
Target
tablish process systems (see the table below) such as the
Risk Risk
Risk Assessment Management Procedures, the Operation-
Monitoring Assessment
al Guidelines for the Company's External Guarantees, the
Internal Operational Guidelines for the Company's External
Financial Assistance, the Contract Management Measures, Risk
the Risk Management Process, and the Response Mecha- Risk Management Response Internal Control
nism for Handling Major Accidents, to comprehensively ad- Information System Systems
dress the internal and external risks that may be foreseen
in production and operation activities. Figure Risk Management Framework
Table Risk Management Process
Management Main Content
Process
Foundation The Company has set up risk control groups such as the Strategic Decision-making Committee, the Audit Committee, the Information Security Committee, the
Safety Production Committee, the Compliance Committee, and the Corporate Pandemic Containment Team;
building
The Company has set up a model of three lines of defense against risks (business department, internal control department, and internal audit department) to
build a risk-oriented internal control framework;
The main business functions at the corporate level and branches and subsidiaries designate department-level contact persons for internal control.
Risk identifi- Identify and review risks at the corporate level, branches and subsidiaries through interviews, special reports on internal audits, special surveys on related is-
sues, reviews of major issues and special surveys on key control points in various fields, among others. Build and continuously enrich the risk database of each
cation business segment and department in line with the actual situation, and chart the risk map.Meanwhile, constantly and dynamically identify the dynamic changes
of risks according to the latest business adjustments and planning.
Risk Based on the risk database, through the introduction of various sources of risk information such as regulatory tips, industry risks, research, audit findings, and
feedback from managers, evaluate the likelihood of risk events, the degree of impact caused, and the vulnerability of countermeasures in terms of risk level, and
assessment
then conduct an overall evaluation by combining the major risk categories to achieve comprehensive risk analysis and evaluation.
Risk Determine response strategies to risks based on risk assessment results, including risk reporting, risk undertaking, risk avoidance, risk mitigation, and risk
transfer strategies, specifically:
response
Risk response compliance: Consolidate internal control management support in accordance with the internal control requirements for companies listed on the
Shenzhen Stock Exchange;
Scenario-based risk response: Conduct in-depth assessment of processes and internal controls in high-risk areas such as marketing, delivery, and procure-
ment, and adopt different risk management models for different business scenarios;
Risk response by levels: Promote the review of high-risk matters in various fields, and gradually establish a hierarchical and graded authorization mechanism,
with clear authorized details at each level, and clear approval and authorization procedures for each matter, to achieve the matching of authority and responsibili-
ty, reduce ambiguity, optimize the distribution of power, enable senior management to direct energy on the management capability development of the Company,
and balance operational risks and development efficiency;
Risk response specialization: For high-risk business, establish company-level and department-level internal control specialization to closely and effectively
integrate internal control with business processes to avoid or reduce the occurrence of risks.
Risk Management
Risk A risk monitoring mechanism is established to routinely monitor and check the response to risks and ensure that the outcomes of risk response are guaranteed
both in the design of response plans and in their implementation.For example, the risk response is monitored through the review of matters such as large receiv-
monitoring
ables, large inventory losses, and large returns.
Reporting Regular training on risk awareness and capability: Strengthen the awareness of internal risk control through the sharing of classic cases, special training, and
the establishment of internal control risk mailboxes to form an atmosphere of consistent emphasis on internal control, so that every employee understands and
mechanism
consciously participates in internal control;
Reporting mechanism: In order to better manage risks, a risk reporting mechanism is established in the form of regular routine reports, special risk reports, and
major risk/emergency risk reports, to reflect the substantive risk status faced by the operation and management of each branch, subsidiary, and department in a
comprehensive, timely, and objective manner during the reporting period.
The Company emphasizes the cultivation of risk awareness and regularly organizes risk management training for all departments, so as
to strengthen the Company's risk warning and handling capabilities and develop the risk control awareness among all staff.
14
ESG Management
07
ESG Management
Sustainable Development Strategies
As a world-leading video-centric smart IoT solutions and service provider, Dahua is committed to bringing excellent technical services to
every corner of the world and to building a green, Eco-friendly, safe, and smart world. It aims to create greater value for customers and
play a greater role in the sustainable development of society. These are captured by our mission of “Enabling a safer society and smarter
living" that it advocates and makes great effort to realize.
Dahua fully integrates sustainable development into its overall development strategy. In September 2015, world leaders adopted the
2030 Agenda for Sustainable Development at the United Nations Summit. The agenda includes 17 sustainable development goals,
which came into effect on January 1, 2016. According to its sustainable development strategies, Dahua has developed detailed action
plans based on the 17 goals, making sure that the sustainable management goals are fully implemented. The Company's sustainable
development management committee reviews the performance.
Sustainable De- Dahua's Actions
velopment Goals
No poverty Establish a social security system for employees to improve their welfare. Advocate public welfare activities to alleviate poverty, carry out charitable
activities to help needy students, and donate clothes and books every year.
On September 27, 2021, Dahua Huayu Public Welfare Development Center joined hands with the Zhejiang Lions Clubs Yuanmeng Service Team to
organize a public welfare project with the theme of “Clothes for love. Books for warmth”, during which 475 pieces of clothes and more than 200 books
were collected.
Zero hunger Provide a variety of healthy and safe meal options for employees.
Sponsor public welfare causes, carry out flood relief activities in Zhengzhou, Henan Province, and send presents to families in need and families with
children with disabilities during the Spring Festival.
Dahua continues to improve the full-process digital intelligence management of food and make use of the IoT sensing and digital applications to protect
the healthy growth of crops. The Company ensures food storage safety through comprehensive management, and guarantee food safety by using see-
through kitchens where the entire cooking process is visible.
Dahua has launched a full-process regulatory solution for food production, transportation, storage, and sales to supervise the entire process, making
use of AI to ensure food safety.The Company has promoted the implementation of the "Zhejiang Food Chain" and "Wuhua Smart Market" in Zhejiang, the
smart cold chain project in Shandong, and many other projects such as Transparent Kitchens in Henan and Hubei.
Dahua has helped Empresa Panamena de Alimentos (EPA), Panama's leading food processing enterprise, apply video surveillance solutions to enable
record management on an integrated platform, strengthen food safety, and prevent and control the pandemic in the post-pandemic era.
Good health Dahua has launched a smart elderly care solutions of "Internet+" and "AI+" that include different elderly care models such as home-based care, commu-
nity care, and institutional care, providing more comprehensive and smarter safety measures for the elderly and promoting smart, convenient elderly care
and well-being
services.At present, Dahua has facilitated the implementation of projects in Guangzhou, Shenzhen, Huzhou and other regions in the country.
In the Sixth People's Hospital of Shanghai, Dahua adopts smart approaches such as integrated gate and access control to divide the physical space
inside the hospital, and assists the hospital's operation and management through digital means to offer a new direction for hospital management in the
new era.
Dahua has created a good working environment, set up staff physiotherapy rooms, carried out EAP psychological assistance program for employees,
conducted EHS management system training, and reduced casualties.
Dahua regularly commissions third-party institutions to conduct checks on all occupational disease hazards, equips relevant employees with labor
protection supplies and organizes regular occupational health checks.
Dahua has introduced and established the environmental and occupational health management system and the hazardous substances process man-
agement system to protect employees' health and the environment.
High-quality Dahua has joined hands with Shaoxing City on the "Smart Safe Campus" campaign to maintain the safety of more than 1190 campuses in the city and
create a safe and harmonious environment for 742000 teachers and students in the city.
education
To support the education development of Binjiang District, Hangzhou City, Dahua has donated one million RMB to fund the living and study of students
with financial difficulty.
Dahua has developed a good training system, set up a special committee and built a training base to guide employees to improve their abilities.The
Company has carried out the dual empowerment mode of "external training" + "internal training", established an independent internal training system and
carried out relevant training at the same time on the ELearning platform.
Carry out university-enterprise cooperation by building technological innovation platforms, joint training bases, innovation practice centers to promote
Sustainable Development Strategies
the integration of higher education and industrial development and enable technology to empower industrial development.
Gender equality Increase the proportions of female managers and female employees.
Provide equal training sessions and resources to male and female employees.
Clean water Provide smart ecological solutions, and build a comprehensive "air and earth integration" intelligent monitoring and sensing system to realize the flat,
intelligent and refined business integration application of ecological monitoring and protection.
and sanitation
Provide Dahua's river visualization monitoring system solution, implement river monitoring and water quality monitoring, and ensure the availability of
facilities safe drinking water and sanitation facilities to reduce water pollution and conduct water resource management.Employ the intelligent management system
of drinking water sources, which can monitor, visualize and control the water condition, to detect and make warnings about water quality, water level,
floating objects, and illegal mining, aiming to protect the safety of water sources.
Improve the utilization rate of recycled water.
Affordable clean Embrace the development of clean energy and help achieve the goals of carbon peak and carbon neutrality.At photovoltaic power stations, the thermal
imaging processing algorithm and the photogrammetry technology are used to improve the inspection efficiency and ensure the stable, efficient operation
energy of photovoltaic power stations.
15
07
Sustainable De- Dahua's Actions
velopment Goals
Affordable clean At wind farms, Dahua develops the wind farm video management system for wind power operation enterprises, and sets up video monitoring sys-
energy tems across the entire wind farms to facilitate safe production and to realize less manpower at wind farms and intelligent operation and maintenance
of wind farms.
At hydropower stations, Dahua provides video monitoring of dam construction quality in every step and process for Wudongde Hydropower Station
on Jinsha River, which is the seventh largest hydropower station in the world. Dahua has adopted thermal imaging and black body technology to
ESG Management
facilitate intelligent construction, and used AI-based intelligent video analysis algorithms to realize intelligent, visualized control of the entire construc-
tion cycle.
Decent work and Provide high-quality jobs and increase investments in job creation. Protect labor rights and interests.
economic growth
Industry, innovation, Promote smart manufacturing Promote the digital transformation of villages in many parts of the country, promote the revitalization of rural
industries, and boost rural modernization. Release Dahua Think Strategy with the theme #Internet of Things for a Future of Digital Intelligence#
and infrastructure
to create an ecosystem community for the Internet of Things.
Reduce inequality Democratic managementHuman rights governance
Sustainable cities Dahua’s smart city scheme is employed to enable the Company to continuously improve the modern digital system solution of urban governance
with the help of multidimensional awareness, artificial intelligence, cloud computing, big data and other technologies, so as to modernize the govern-
and communities
ment's governance system and capacity.
Provide smart community and business park solutionsRealize the intelligent upgrades of the security and office applications in business parks to
and improve the security and office productivity of enterprises. Facilitate the digital transformation of enterprises in every aspect to improve safety,
enhance work efficiency and reduce management costs.
Focus on people's livelihood, provide solutions for smart farmers markets, smart tea gardens, smart communities and rural traffic management
through digital intelligence technology innovation and information services, aiming to upgrade and transform farmers' markets and old communities,
and improve the safety of roads in villages.
Dahua’s digital solution to control traffic congestion helps quickly handle traffic accidents and clear the traffic, boost the intelligent management of
traffic congestion, and make residents’ traveling more convenient.
Dahua joins hands with Xixi Management Committee of West Lake to build a comprehensive intelligent control platform and a vehicle reservation
and management platform for the pain points in the management of West Lake scenic spot by using advanced video analysis algorithms, realizing a
change in the management mode from post-accident handling to pre-accident warning,helping tourists improve their travel experience, and achieving
the intelligent management and control of West Lake scenic spot.
Responsible Strengthen waste recycling in production
Advocate the green policy, establish the green mechanism, and set up the green product management platform (GPM) to make green production
consumption and
and hazardous substance management intelligent and informationized.Integrate environmental protection requirements into product R&D, production
production and manufacturing, and smart IoT solutions, promote the R&D of green technology, produce green products, and minimize the impact of production
on the environment.
Working towards the goals of carbon peak and carbon neutrality, Dahua adopts in its headquarters park intelligent transformation measures such
as “park intelligent brain”, smart adjustment of central air conditioning and lighting system with automatic turning off. The power saving rate exceeds
20%. The conference rooms are equipped with electronic whiteboards to realize paperless office, multi-screen sharing and remote collaboration,
creating a low-carbon office environment.
Dahua’s smart power consumption scheme empowers energy saving and emission reduction in various industries, and facilitates the achievement
of carbon peak and carbon neutrality.
Action on cli- Dahua’s intelligent monitoring solution for air quality is applied to multiple scenarios such as open outdoor burning, “black-smoke” vehicles, and
reduction of emission from moving sources to continuously boost the ability of air pollution prevention and control, and effectively improve air quality.
mate change
Reduce carbon emission Dahua’s intelligent forest fire monitoring system facilitates the monitoring, protection and recovery of forest and
grass resources in Tibet, Yunnan, Hebei and other provinces. It promotes the use of information technology in the management of forest and grass,
improves governance efficiency, protects forest with digital intelligence, and facilitates the achievement of goals of carbon peak and carbon neutrality.
Underwater crea- Provide the smart ecosystem solutions.
Dahua’s deep-sea camera unveils the secret at 10000 meters underwater. It adopts digital technology in ocean-related activities, provides an
tures
ocean scenario-based intelligent solution, and facilitates the exploration of the vast, deep blue world.
Intelligent fishing ban solution for Yangtze River creates an all-round supervision system for fishing ban to achieve refined management of the
areas that prohibits fishing. It empowers the management of fishing ban in water areas through digital intelligence, to greatly improve the efficiency of
inspection and protect the water ecological environment.
Dahua's solution for fishing ban driven by digital intelligence guards the beauty of Dongting Lake with technology, protects the water ecosystem,
and facilitates the intelligent fishery administration.
Terrestrial crea- For the protection of rare and endangered animals and plants in the protected area, Dahua has built an intelligent monitoring and early warning
system covering the whole area, to carry out comprehensive accurate observation, research and evaluation of wildlife, ecological types and biodiver-
tures
sity in the protected area, protect the balance between the species and the general ecological environment, and provide data for the development of
ecological civilization.
Protect wild animals on land, realize intelligent detection, analysis and counting of wild animals in conservation areas, and facilitate the close
Sustainable Development Strategies
observation and study of the migration of rare wild animals. Dahua participated in the development of intelligent ecological protection system in
Qinghai's "ecological window" program.
Dahua 5G digital ecological intelligence monitoring system is used to protect biodiversity, and conduct comprehensive precision observation and
research and evaluation of 62 national protected animal species such as Yunnan snub-nosed monkey, as well as ecological types and ecological
diversification, in Yunnan Baima Snow Mountain National Nature Reserve, protecting the species and ecological balance.
Peace, just and Provide smart policing, traffic control, transportation, judicature, emergency solutions. Issue human rights policies and manifestos, and ask
upper-stream supply chain partners to implement them.
strong institutions
Partnerships Establish a comprehensive all-channel partner management system, and focus on the operation of the key advisory committee.
At the same time, provide livestreaming courses on the Dahua cloud business platform for distributors and partners. The courses cover products,
that promote the
solutions, technologies, and industry insights, among others.In 2021, the Dahua cloud business platform conducted 116 livestreaming courses and
achievement of online courses, with a total of 224000 viewers.
goals Optimize the industrial ecology, industrial solutions partner ecosystems.
16
07
Sustainable Development Policy by the management system and guidelines, Dahua's quality,
Respect the value of the Company, partners, and employees, and health, safety and environmental management are implemented
comply with regulations, international standards, and internal rules in an orderly manner.
and regulations. Strive to create value in corporate governance,
social issue handling, environmental protection, talent develop- Duties and Operations of the Sustainable Develop-
ment, and public welfare investment. ment Management Committee
To ensure the realization of the sustainable development strate-
ESG Management
Sustainable Development Management System gies of the Company, Dahua has built the management mecha-
In order to promote sustainable development of the Company's nism and system for sustainable development. The Company's
strategy execution and target achievement, Dahua introduced a Sustainable Development Management Committee, as the execu-
sustainable development management system. Based on internal tive body of sustainable development management, promotes fair
and external environments, Dahua pays close attention to the trade, the establishment of a supply chain ecosystem, corporate
needs of interested parties to realize the closed loop management security and health protection, labor management, environmental
of the sustainable development goals and improve the satisfaction management, and social contributions, among others.
of all interested parties in the five aspects of planning, organiza-
tion, process operation, performance evaluation and continuous The Sustainable Development Management Committee is com-
improvement. posed of more than 10 leaders from the operation management
center, R&D center, administration center, human resources
Guidelines regarding sustainable development management sys- center and other departments. The director of the committee is
tem stipulate the overall framework structure of the system, clarify Dahua's president. The executive team under the committee is
the responsibilities and rights of the management level and all de- mainly responsible for the implementation and coordination of the
partments as well as the relations among them, and standardize committee's daily work and the realization of the objectives listed
all kinds of operation procedures and record management. Driven in the sustainable development strategy.
Duties of Sustainable Development Management Responsibilities of the Working Group
Committee Release the decision-making mechanism of the com-
Formulate the Company's sustainable development mittee.
strategy, objectives, policies and systems, and super- Responsible for the implementation, coordination and
vise the implementation. follow-up of daily work.
Coordinate the establishment, implementation and
continuous improvement of the sustainable develop-
ment management system to ensure that Dahua's sus-
tainable development management complies with rele-
vant laws and regulations and customer requirements.
Guide the establishment, operation and improvement
of the Company's EHS management system, and be
responsible for handling major EHS issues.
Sustainable Development Management Committee
Director: Executive President
Members: Members of the management committee
Working Group
Sustainable Development Strategies
Securities Investment Department
Department of Public Affairs
Operation Management Center
HR Center
Research center
Domestic Marketing Center
Overseas Marketing Center
Delivery and Service Center
Supply Chain Management Center
Procurement Management Center
Quality Management Center
Process IT Center
Administration Center
Finance Center
Internal Audit Department
Legal Department
Branding Department
Figure Sustainable Development Management Committee
17
07
Risks and Opportunities in Sustainable Development
We have integrated sustainable development risk management into the Company's scope of business management, adopted compre-
hensive risk and opportunity management measures, enhanced risk resistance capacity, and provided operational guidance for the in-
corporation and application of these measures in the quality and environmental management system as well as for the evaluation of the
effectiveness of these measures. It is important to identify all potential sustainable development risks and opportunities as reference for
strategic planning development, which drives us to formulate specific goals and annual work plans.
The major opportunities and challenges in the external environment at present are the differences in technology application capabilities
ESG Management
of different countries and regions in the world, which is not conducive to the synchronous and balanced development; personalized and
scenario-based intelligent applications are required for industry segments and specific groups. Dahua has seized opportunities and faced
up to challenges by actively participating in the global strategic cooperation, completing the planning and design together, providing cus-
tomized services and application solutions for customers, jointly developing an application development platform which is easy to use,
and striving to bring Dahua's extraordinary technologies and services to every corner of the world.
Interested Party Participation
Interested Party Information and Communication
Dahua has always been adhering to the core concepts of “Customer-oriented, employee-based” and practicing the mission of “Enabling
a safer society and smarter living”. It fully considers and responds to interest-related concerns and demands, jointly promotes economic
and social development with interested parties, and shares development achievements.
The main interested parties of Dahua include customers, partners, employees, governments, and investors. The trust and support of
stakeholders are the basis for the survival and development of the Company. We have established communication mechanisms with
interested parties. Understanding interested parties' expectations of the Company and the major ESG issues of concern can help the
Company plan for its long-term sustainable development. We actively work on building the bridge of communication with interested par-
ties, as well as identify and respond to the expectations of interested parties in multiple dimensions and through multiple channels.
Interested Main Communication and
Interested Party Expectations Enterprise Response
Party Participation Mechanisms
Increase of market value and profit of
Shareholders’ meeting, infor-
the Company
mation disclosure, the Company’s
Shareholder Sustainable Operation Information transparency and timely disclosure
website
/ Information Disclosure Efforts to improve performance, profit, and environmental and
Investor meetings, field research,
Investor Continuous improvement of the social responsibility management
strategy meetings, investor presen-
Company's performance in fulfilling its
tations, etc.
environmental and social responsibility
Insist on customer-centric, quality-backed craftsman spirit that
seeks opportunities from customer demands and boost the success
Product safety and service quality of customers
400 customer service Hotlines
Customer health and safety Establish a strict product safety control mechanism, implement
Customer satisfaction survey
Cyber security and user privacy strict product safety standards, and provide consumers with safe and
Customer Customer meeting
protection reliable products and services
Customer evaluation, research
R&D and innovation Integrate sustainability requirements into the whole life cycle of
and cooperation projects
Scenario-based customer solutions products and advocate circular economy
Regard cyber security and user privacy protection as an important
guiding principle for the Company
Employee representative commu- Establish sound management and safeguard systems for employee
nication meeting health and safety
Employee survey Adhere to the striver-awarded principle, encourage all kinds of
Health and safety at work
Manager feedback talents to make the greatest contribution at the best time at the best
Compensation and welfare
Employee Dahua Staff electronic magazine position, and ensure they get the biggest returns
Career development
Complaints, suggestions, reports Establish a sound training system and a clear path for career
Humanistic care
and complaints development
for receiving complaints, sugges- Pay attention to diversification, establish good work conditions, and
tions, reports and complaints create a healthy work atmosphere
Interested Party Participation
Adhere to ethical and transparent procurement and zero tolerance
Win-Win Cooperation Field Investigation
for bribery and corruption
Training and Empowerment Supplier Conference
Conduct supplier training and coaching and carry out supplier
Partner Integrity and Trustworthiness Supplier Training
development program
Supplier Management Channel conference
Adhere to the sinking strategy, continuously empower partners and
Sustainable Development Cloud business platform
achieve co-construction and sharing
Abide by business ethics, international conventions and relevant
Compliance with Law Policy consultation laws and regulations of various countries
Employment and Wealth Creation Governmental Meetings Engage local labor force in employment process and local suppli-
Governments
Safe Production Compliance management ers in procurement process, and pay taxes in accordance with laws
and Regula-
Green Production Fill in various forms as required Step up campaigns on production safety and strengthen oversight
tors
Tax Payment According to Law and attend related trainings and Make effort to reduce total emissions of industrial pollution
Environmental Protection meetings Reduce carbon emissions, advocate circular economy and in-
crease the use of renewable energy
Community activities
Communication with Communities Community Activities
Community Waste classification in the park
Environmental Protection Interviews and investigations
Rectification and treatment of sewage discharge
18
07
Protection of Rights and Interests of All Relevant forms a reasonable and effective division of responsibilities and a
Parties - Return on Investment mechanism that balances powers to ensure the authenticity, accu-
racy, completeness, timeliness and fairness of information disclo-
During the reporting period, the Company has actively given back sure. In 2021, the Company released 216 information disclosure
to shareholders, continuously improved the governance struc- announcements, and the information disclosure work was rated as
ture, strictly fulfilled the obligation of information disclosure, and excellent by Shenzhen Stock Exchange for 11 consecutive years.
strengthened the management of investor relations, striving to ful-
ESG Management
fill its obligations and raise awareness of protecting the rights and 2. Positive investor relations management
interests of shareholders. Dahua has always been committed to being a truthful, compliant
and transparent listed company for investors, actively setting up
Protection of the Rights and Interests of Share- a good communication mechanism with investors and fully pro-
holders and Creditors tecting investors' right to know. After the release of the periodic
report, the Company will hold a meeting on business performance
as soon as possible, to ensure that investors have access to the
1. Regulated and transparent information disclosure Company's interpretation of its periodic reports truthfully, accu-
Dahua has formulated relevant rules and regulations centering rately, completely and timely as early as possible. During the
on the improvement of corporate governance according to laws report period, more than 80 groups of delegations, with a total of
and regulations such as Company Law, Code of Corporate Gov- more than 2000 people, were received on site. The Company par-
ernance for Listed Companies in China, and Guidelines of Articles ticipated in 48 external broker strategy meetings, and organized
of Association for Listed Companies. It continuously promotes and 1 investor communication event, interacting with more than 1000
strengthens the development of the Company's internal control domestic and foreign investors. In addition, more than 400 hotline
management system, clarifies the responsibilities and authority in calls were answered and 250 questions on the Hudongyi platform
decision-making, execution, supervision and other aspects, and of the Shenzhen Stock Exchange were answered.
Focus on Substantive Issues
Through media study and engaging interested parties in surveys, Dahua combines the opinions and expectations of interested parties
with its own management and development needs to evaluate and analyze the importance of such issues, providing basis for formulating
the long-term ESG strategy.
High
High
Product Safety and Quality
Innovation and Research
Public Welfare and Community Contribution Environmental Management
23. Smart manufacturing
Importance to Interested Parties
Cyber Security A Future of Digital Intelligence
Construction of Global Service Ecosystem Solution of Social Issues
Clean Technology and Applications Green and Innovation-driven Development
Importance to Interested Parties
Manufacturing Digitalization
Anti-corruption and Anti-commercial Bribery Sustainable Economic Growth
Reduction of Power Consumption and Carbon Emission
People Orientation
Fair Business Practices Win-Win Cooperation Sustainable Development
Local Economic Impact Compliance with Law
Customer Data and Privacy Protection
Occupational Health and Safety Management
Waste Management
Reduction of Greenhouse Gases Gas emissions Chemicals Management
Focus on Substantive Issues
Diversity and Inclusiveness
Sustainable Development Management System
Hazardous Substance Management
Community Issues
Climate Change
Water Management Environment Issues
Employee Benefits
Respect for Human and Labor Rights
Noise Management
Low
Low Importance sustainable development enterprises
Importance totothethesustainable development ofofenterprises High
High
19
Empowerment by Digital Intelligence for Greatness
08
Empowerment by Digital Intelligence
Empowerment by Digital Intelligence for Greatness
Practicing the social responsibility to achieve goals of Enabling vision to be a source of productivity and
carbon peak and carbon neutrality, and empowering promoting the green development of steel industry
enterprises to save energy and reduce consumption In iron and steel production, heating furnace and sintering furnace
In order to realize the national goals of carbon neutrality and carbon are important smelting equipment, and the conditions inside the fur-
peak, energy saving and emission reduction is an indispensable task naces need to be checked in real time during production. Dahua has
for every enterprise during production and operation. Based on the collaborated with New Tianjin Steel Group to launch a furnace flame
demand of enterprise electricity management, Dahua has launched the monitoring system, which adopts 24/7 HD monitoring, thermal imag-
comprehensive energy efficiency management solution for enterprises ing temperature measurement, flame status trend analysis and other
which focuses on energy saving, consumption reduction, and electricity technologies to meet the demanding requirement of monitoring at
safety. By adopting innovative sensing and detection technology, the 2000℃ inside the furnace, to realize real-time measurement of furnace
solution detects various potential electricity hazards in electrical lines in temperature, real-time generation of temperature curve and real-time
real time to ensure the safety of electricity consumption. The solution analysis of combustion status, and help operators to make timely
can identify high energy consumption points or risky points according to adjustment of parameters such as feeding speed and combustion
the electricity consumption habits of the enterprise, and provide accurate air volume, which ensures the safety of operation personnel, makes
big data risk assessment for safe electricity use by enterprises. Through the furnace control system more intelligent, improves the operation
advanced technologies such as Internet of Things, big data and 5G, as efficiency of the furnace, reduces energy consumption, lowers the pro-
well as the unified management of the platform and the unified imple- duction cost of the enterprise, and realizes the green and sustainable
mentation of strategies, Dahua ensures electricity safety, energy saving development of the enterprise.
and consumption reduction of the buildings and parks of enterprises to
help the country achieve the goals of carbon peak and carbon neutrality.
Embracing clean energy and build a “green home” Using AI to safeguard coal mine production safety
At photovoltaic power stations, the thermal imaging analysis technology and facilitate smart mining
and the photogrammetry technology are used to make accurate analysis Based on the characteristics of coal mining scenario, Dahua has de-
and judgment of the type and grade of hot spots on photovoltaic panels, veloped a solution adapting to the production process of coal. It has
and identify the positions of the defects to improve the inspection effi- made full use of its advantage in algorithms and integrated equipment
ciency and ensure the stable, efficient operation of photovoltaic power to develop a solution where faults such as belt deviation, blocking,
stations. At wind farms, Dahua develops the wind farm video manage- foreign matter and fire can be automatically detected. While facilitating
ment system for wind power operation enterprises. By covering the on-site inspection personnel to understand the running status of the
entire wind farms with video monitoring systems, the system monitors belt machine and reducing the workload of inspection personnel, this
in real time the station and wind turbine equipment as well as the sur- solution improves the efficiency of handling malfunctions and reduces
rounding environment of the wind farm, records the entire work process accident losses. In addition, videos applied in industrial production are
of operation personnel, and provides easy-to-read data for risk control used to monitor the safety of personnel, supervise equipment and in-
in advance and operation management, facilitating safe production and spect the production through visualization, and regulate and control vi-
realizing less manpower at wind farms and intelligent operation and olation behaviors, so as to further make the coal mining process more
Empowerment by Digital Intelligence
maintenance of wind farms. In terms of hydropower stations, Dahua has intelligent, reduce costs, and increase efficiency while ensuring safety.
developed a hydropower engineering machine vision intelligent moni-
toring platform for Wudongde Hydropower Station on Jinsha River, the
seventh largest hydropower station in the world. It uses ultra-distance
thermal imaging temperature measurement technology to conduct
real-time accurate temperature measurement and over-limit warning
for concrete. It can accurately control the temperature during the entire
cycle from preparation in the mixing tower to setting out and leveling,
and to pouring. The qualified rate is improved and cracks in the dam are
prevented. At the same time, based on AI intelligent analysis of concrete
production, transportation, pouring and maintenance, it can conduct all-
round tracking on problems such as large aggregate concentration and
water secretion and accurately control the quality of important steps
such as thermal insulation covering and polyurethane spraying. Through
the digital assets formed during dam construction, dam construction can
be visualized and standardized, and information technology and smart
technology are adopted to the construction.
20
08
Smart healthcare to help hospitals operate efficiently Smart security check to help relieve the logistics
To deal with hospital access management during the pandemic, Dahua pressure around the "Double 11" Festival
has launched an intelligent hospital space order management scheme The traditional manual security check of mails and parcels takes lots of
to facilitate the access management of hospital personnel, smart ver- time and effort, and errors and omissions are likely to occur due to long
ification of health codes, and management of inpatient care providers time of work. Dahua takes advantage of its technical advantages in the
and visitors. Using advanced technologies such as AI, big data, and video field, and has independently developed a security inspection ma-
IoT, the scheme can achieve more efficient hospital admission screen-
Empowerment by Digital Intelligence for Greatness
chine for the logistics industry to meet its needs of logistics and express
ing, orderly registration, easy management of inpatient care providers, transportation scenarios. In the mail and parcel distribution scenario, this
and control of key areas to ensure the safety of medical care, keep machine can sort mails and parcels at an ultra-fast speed, up to 3 m/
the hospital environment clean and improve patients’ medical experi- s, which can meet the needs of logistics enterprises for quick security
ence. In the Sixth People's Hospital of Shanghai, Dahua adopts smart screening and distribution of more than 5000 pieces/hour, greatly short-
approaches such as integrated gate and access control to divide the ening the sorting time and improving the security check efficiency.
physical space inside the hospital, realizes the security screening and
verification of hospital admissions, and assists the hospital's operation
and management through digital means to offer a new direction for
hospital management in the new era.
Empowerment by digital intelligence for invigorat-
ed agriculture
Dahua has joined hands with a pig farm in Guangxi to build a digital
intelligence pig farm. Through the intelligent pig management platform,
the farm realizes an efficient closed loop of pig counting, quarantine
inspection and temperature measurement and effectively improves
the production efficiency of live pigs sold to Hong Kong. This has
saved labor costs, improved the monitoring capability, and provided an
important basis for the farm to further broaden the sales channels of
Using technology to empower smart travel and cre- live pigs and increase the added value of live pigs. Dahua has helped
enterprises meet the high standards of the entire process of live pig
ate a new landscape procurement set by Hong Kong Food and Environmental Department
Dahua has joined hands with Xixi Management Committee of West and other departments. At the same time, Dahua has helped the pig
Lake to build a comprehensive intelligent control platform and a vehicle farm become one of the first batch of farms free of African swine fever
reservation and management platform for the pain points in the man- in Guangxi. In addition, Dahua makes use of digital intelligence to
agement of West Lake scenic spot by using advanced video analysis invigorate the agricultural industry and designs schemes for the entire
algorithms. The platform can be used to serve as a remote megaphone industry chains of the planting sector and the breeding sector. In terms
to call out to illegal parking vehicles on the road, persuade tourists of specific business areas, Dahua has provided service to fields such
from trampling on the lawn, set off alarm when uncertified guides are as well-facilitated farmland, protected agriculture, pigs, cows, beef
trying to deceive tourists, and quickly approve the admission of vehi- cattle, freshwater and mariculture, and poultry farming. The entire pro-
cles on holidays if the drivers have booked a place for their vehicles. It cess of agriculture has involved many stages such as planting, raising,
has been applied in multiple actual management scenarios to realize slaughtering, further processing, storage, transportation and sale.
a change in the management mode from post-accident handling to
pre-accident warning,
Since the launch of the platform, during the national day, the number
of illegal parking at the Yanggong Causeway section of the West Lake
has decreased by more than half compared with the same period in
previous years. The intelligent reminder system for trampling on the
lawn has set off alarm more than 300 times. The driving time from
Jiulisong tourist center to the entrance of Lingyin Temple and Feilai
Peak has been shortened from 25 minutes to 3 minutes, which has ef-
fectively improved tourists’ experience and made the management and
Empowerment by Digital Intelligence
control of the West Lake scenic spot more intelligent.
Smart and safe use of electricity to help numerous
stores in different cities build a "firewall"
Dahua applies its smart power solutions to various types of stores,
monitors electricity loads such as voltage and current of power lines
in real time through the smart air switch, and adopts the dual security
mechanism of warning and alarm to prevent fire.
Dahua has helped a famous convenience store franchise chain in China,
which has a total of more than 4000 stores in China , realize cloud-based
equipment management, transform to asset-light business model, and
reduce burden on the enterprise through Dahua’s smart power solution.
The headquarter of the franchise company detects the online and offline
status of electrical equipment in stores in real time. The platform can
receive the alarm of the equipment and monitor the operation status
21
08
of electrical equipment in all stores nationwide in real time. When the available to eliminate potential risks and ensure the stable operation
power line of an electrical equipment malfunctions, the platform will send of the device. Data fusion technology is adopted to complete the inter-
an alarm message to the management staff APP at the earliest time for connection of multiple systems, realizing the efficient flow of personnel
timely handling to eliminate dangers and avoid fire. While ensuring safe- and logistics, and safeguarding the safe daily operation of the park.
ty, the platform can analyze the current/voltage/power data of different In the upstream of petroleum and chemical industry, Dahua has provided
stores, at different time and of different equipment to help the franchise safety upgrading construction with the theme of "Promote new produc-
company identify high energy consumption points or unfavorable elec- tion and practice new safety" for industry giants such as China National
Empowerment by Digital Intelligence for Greatness
tricity use habits through comparative analysis. By formulating scientific Petroleum Corporation (CNPC) and China National Offshore Oil Corpo-
and reasonable power consumption strategies, Dahua helps stores save ration (CNOOC). Dahua has provided safety protection for tens of thou-
electricity as much as possible and reduce operating costs. sands of drilling wells through AI optical technology and thermal imaging
technology to make oil and gas exploitation and exploration safer and
assure the society the safe use of oil and gas. Dahua has empowered
hazardous chemical production with science and technology, guarded
energy security and production safety with actions, and contributed to
the stable operation of petroleum and chemical enterprises.
Non-contact temperature measurement and health
code verification to continuously support pandemic
prevention and control
In 2021, China entered the stage of regular prevention and control
mechanism of the COVID-19 pandemic. Dahua's products, including
thermal imaging temperature measurement and temperature measure-
ment security door, continue to serve key places such as subway sta- Intelligent water conservancy to support targeted
tions, hospitals, and railway stations to help with pandemic prevention
and control through accurate temperature measurement. The all-in-one
control of water
health code intelligent verification machine performs verification in mul- Water conservancy is closely related to people's livelihood. Dahua has
tiple ways including personnel identification, ID card, and health code, constantly met the rapidly changing development needs of water con-
playing an important role in schools, hospitals, enterprises, stations, servancy by focusing on technical advantages such as video IoT, AI and
and supermarkets, among others. Meanwhile, Dahua has actively re- data fusion, to continuously make innovations and breakthroughs in the
sponded to the customized needs of pandemic prevention in various field of intelligent water conservancy application and built an intelligent
regions, completed the alignment with big data platform systems of 24 system for the whole process of water conservancy. In addition, the
provinces/cities, and realized the rapid verification of health codes of Company has taken practical actions to support the protection of Yang-
personnel in and out of premises, thus continuously contributing "Da- tze River, the South-to-North Water Diversion and the flood control of
hua strength" to pandemic prevention and control. Yellow River, so as to improve the efficiency of water area management
empowered by science and technology.
The refined management system of Yangtze River embankment in a
city in Jiangsu Province, in which Dahua is deeply engaged, has passed
the final acceptance. This system has functions of real-time monitoring
and playback, intelligent analysis, automatic alarm, remote call, and
classified management and control, among others. Relying on the 129
monitoring points along Yangtze River, it has established a three-dimen-
sional monitoring grid of the river surface and embankment, and realized
all-weather, full coverage and all-round supervision and protection of the
entire 216 kilometers of Yangtze River in the city.
Dahua signed a strategic cooperation agreement with Shanxi Water
Conservancy Management Center of Wenzhou. The two parties have
jointly built a R&D base of intelligent water conservancy to help achieve
innovative applications in water conservancy, such as automatic identifi-
cation of floating objects, monitoring of illegal excavation and illegal con-
struction along rivers, AR panoramic monitoring, platform networking,
and emergency law enforcement, thus accelerating its digital upgrading
and providing valuable experience for the digital transformation of water
Risk identification through dangers to help with the conservancy industry in Wenzhou city and even Zhejiang province.
Empowerment by Digital Intelligence
safety of chemical industry
Petroleum and chemical industry is an important basic and pillar industry Intelligent lighting to protect the eye health of pri-
in China. Dahua adheres to providing digital intelligence services for all mary and secondary school students
scenarios of the industry to promote new production and practice new safe- Binjiang District of Hangzhou is a pioneer in the development of smart
ty. In the park scenario, Dahua is committed to simplifying management, city. In order to further reduce the myopia rate of primary and sec-
facilitating office work and optimizing energy consumption by integrating ondary school students in compulsory education in the whole district,
various systems. In the production scenario, Dahua is committed to building Dahua has helped Binjiang Education Bureau to take the lead in the
an intelligent scenario of full sensing and full connection by developing mul- citywide informatization and intelligent transformation of classroom
tidimensional awareness products that fit with practical needs. In the safety lighting in primary and secondary schools. Focusing on the develop-
production scenario, based on optical Al, Dahua is committed to realizing ment concept of "Green eye protection, energy conservation and en-
the prediction and early warning of environmental abnormalities, instrument vironmental protection, and intelligent IoT", Dahua has completed the
status, equipment inspection, construction elements, personnel compliance, renovation of intelligent lighting environment in more than 1000 class-
operation process, storage and transportation specifications by integrating a rooms of 16 primary and secondary schools and built a district-level
variety of sensors, so as to make the management more intelligent. intelligent lighting management platform in the Education Bureau. The
Dahua has joined hands with Wanhua Chemical Group Co., Ltd., the project has realized the interconnection, intelligent control, real-time
national leader in fine chemical industry, to empower the intelligent up- monitoring and big data analysis of the educational lighting equipment
grading and construction of its major bases with science and technolo- in the whole district, thus making school lighting more intelligent. In
gy. Through AI optical technology, remote intelligent supervision on the addition, the system can make timely identification of problems, further
violation of personnel behaviors in the production area is implemented optimizing the allocation of school education management resources,
22 to ensure the safe operation of personnel. Based on thermal imaging and realizing the full coverage of "Bright Classroom", which is one of
AI technology, sensitive alarm to the leakage in the device area is the "New top ten heart-warming action projects" in Binjiang District.
08
Digital intelligence fire prevention to guard the Digital intelligence countryside to make life better
"Happy Green" with science and technology Focusing on the requirements of industrial prosperity, pleasant living
In view of the pain points of large forest area, low monitoring efficiency environment, effective management of rural customs and civilization,
and slow incident response, Dahua has built a full-coverage, all-intel- and affluent life, Dahua has actively responded to the rural revitaliza-
ligence and whole-process intelligent monitoring system for forest fire tion strategy, deeply explored the application of digital technology in
prevention, which has realized automatic fire warning, real-time master rural revitalization, empowered the new development model of "agri-
culture, rural areas and farmers", and promoted the modernization of
Empowerment by Digital Intelligence for Greatness
of fire situation and closed-loop handling process through digital intel-
ligence science and technology, thus improving the forest fire preven- agriculture and rural areas.
tion monitoring and incident response capability. Smart agriculture with full-chain digital services
Dahua has innovatively created an intelligent monitoring system for for- Dahua has used modern information technologies such as IoT sens-
est fire prevention based on the characteristics of forest area of Rizhao ing, remote sensing, video visualization and video live broadcasting to
in Shandong. Through AI algorithm and thermal imaging technology, improve the efficiency of agricultural management, assist agricultural
the system can greatly shorten the time to discover fire, immediately scientific decision-making and improve the brand benefits of local char-
determine the fire location, fire intensity and the situation around the acteristic products.
fire, and synchronously send the information to mobile phones, so as Digital tourism to bring prosperity to the village
to transfer them to staff for handling within five minutes and strive for Through the power of digital science and technology, Dahua has
the "golden time" to put out fire as soon as possible, thus securing suc- helped improve the digital management and operation of rural scenic
cessful fire prevention. In addition, based on the capability of big data, spots in tourism services, traffic management and environmental gov-
a "map" of fire prevention management has been created to provide a ernance, and boost the revitalization of rural industries.
visual view of fire prevention, ignition situation and fire situation, which Safety governance to improve rural happiness
provides real-time decision-making basis for timely dispatching of fire Dahua has set up a map of rural safety management to effectively
prevention and patrol forces to achieve the closed-loop management provide comprehensive security guarantees. Three-dimensional mon-
of fire prevention from discovery, assignment, handling to feedback. itoring of rural environment helps with rural ecological protection. Da-
After half a year's operation, the system has discovered more than 30 hua helps with intelligent supervision of rural refuse classification and
real mountain fires, and effectively controlled the occurrence of fires, farmers' markets to improve rural life order and service quality.
thus achieving the "early, timely and thorough" prevention of forest fire. Innovation in people's livelihood service to facilitate rural life
Meanwhile, the average number of fires discovered every day during Dahua helps build an innovative government service system to provide
the fire prevention period decreased by 80% compared with the initial one-stop and user-friendly services for people's livelihood. An early
period. Illegal fire use has been effectively controlled, villagers' aware- warning mechanism for abnormal situations has been established to
ness of fire prevention has been improved, and 1400 square kilome- ensure the safety of specific groups.
ters of forest resources in the city have been safeguarded.
Digital intelligence monitoring to protect biodiversity Digital intelligence fishing ban to protect "the
For the rare and endangered animals and plants in the reserve, Dahua beauty of clear water and nice fish" with science
has built an intelligent monitoring and early-warning system covering
the whole area, to carry out all-round accurate observation, research
and technology
Aiming at the pain points of frequent illegal fishing at night, and small
and evaluation on wild animals and plants, ecological types and
boat fishing difficult to be discovered and difficult to be dealt with by
biodiversity in the reserve, protect species resources and ecological
law enforcement in time, Dahua has built a fishery administration su-
balance, and provide data support for the construction of ecological
pervision system based on the perception ability of IoT and applied
civilization.
digital intelligence high-tech power to curb illegal fishing so as to real-
In order to protect the rare and endangered wild animal and plant
ize automatic prevention of illegal fishing, intelligent early warning of
species like the Yunnan snub-nosed monkey, alpine blue sheep, black
Empowerment by Digital Intelligence
illegal vessels and closed-loop business of process handling, improve
bear, and Himalayan yew, Dahua has built a 5G digital ecological in-
the response and handling efficiency of illegal incidents, and help fish-
telligent monitoring system that conforms to the characteristics of high
ery administration law enforcement departments to carry out intelligent
altitude. The system automatically identifies and gives warnings on
and refined fishing ban.
illegal behaviors such as poaching, unlawful felling tree, overgrazing,
In order to help Dongting Lake achieve a complete ban on fishing, Da-
and collecting undergrowth resources under tree crowns in and around
hua has built a fishery administration supervision system for Dongting
conservation areas to eliminates the influence of human activities and
Lake. Through the empowerment of intelligent thermal imaging tech-
protect the gradual growth of wild populations. It has also developed
nology, the discovery time is greatly shortened. Even in the dark night,
the environmental big data capability of conservation areas and built
it can immediately determine the real-time position of illegal fishing, the
"one map" management of ecological protection to assist scientific
direction of ships and surrounding conditions, so as to realize accurate
decision-making and biodiversity research, and help with the intelligent
prediction and early warning. Remote patrol coverage of the lake with
and refined ecological protection work of management departments,
the help of high-altitude trinocular thermal imaging can reduce the
which has realized the continuous monitoring, intelligent statistics of
hardships of law enforcement personnel. In virtue of Dahua Fishery
population quantity, intelligent analysis of activity patterns and living
Administration Supervision Platform, real-time perception of the be-
habits of 62 kinds of national key protected wild animals in the reserve,
havior of important points and waters is available to enable timely dis-
including Yunnan snub-nosed monkey, reduced human intervention
covery of boats along the lake and illegal fishing behaviors and quick
and better helped with the protection of wild animals.
processing, so as to improve the efficiency of law enforcement. In the
nine months since the operation of the system, more than 150 illegal
fishing behaviors have been found, effectively protecting the safety of
fishery resources and water ecological environment, and ensuring the 23
aquatic ecological security of Dongting Lake and Yangtze River.
08
Green technology innovation to protect the bal- implementation of schools' "See-through Kitchens", strengthening the
supervision upgrade required by the surge of online ordering due to
ance of ecological environment. the pandemic, enhancing the food safety supervision of take-out mer-
Protect the ecological environment with digital intelligence technology
chants, realizing the intelligent visual supervision of food safety with
and practice the social responsibility of enterprises. All along, Dahua
full-scenario coverage, whole-process tracking, full-link connection and
has been vigorously promoting green technology innovation in the field
Empowerment by Digital Intelligence for Greatness
the participation of the whole society, further improving the food safety
of hazardous solid wastes and fixed pollution sources of the ecological
supervision system of risk analysis and supply chain management,
environment, aiming to improve the ecological environment monitoring
and improving the intelligence and informatization level of supervision.
system, enhance the modernization of monitoring capacity, and pro-
At present, Dahua has promoted the implementation of the "Zhejiang
mote the development of a beautiful China!
Food Chain" and "Wuhua Smart Market" in Zhejiang, the smart cold
chain project in Shandong, and many other projects such as Transpar-
Whole-process supervision of hazardous solid wastes ent Kitchens in Henan and Hubei. The IoT sensing application tech-
By comprehensively strengthening the whole process and visual su- nology can help achieve the intelligent monitoring and early warning
pervision of solid wastes, the environmental risks can be effectively of various scenarios, especially that of the sewage outlets, prevent the
prevented and controlled. Advanced technologies such as big data, occurrence of various incidents such as illegal discharge, excessive
IoT, video analysis are integrated to realize the modernized, refined, in- discharge and human interference on online monitoring, improve the
telligent, and real-time closed-loop management of the whole process intelligent application level of prevention and regulation of fixed pollu-
of hazardous waste generation, transfer and disposal. tion sources, accelerate the transformation of pollution prevention from
post-event processing to proactive early warning and prevention, and
Supervision of fixed pollution sources improve the monitoring system.
Through the integration of video AI and IoT sensing application tech-
nology, achieve the intelligent monitoring and early warning of various
scenarios, especially that of sewage outlets, prevent the occurrence
Intelligence to bring benefits to people's livelihood, and
of various incidents such as illegal discharge, excessive discharge AI to promote peace and health care for the elderly.
and human interference on online monitoring, improve the intelligent As China has gradually entered the aging society, the central govern-
application level of prevention and regulation of fixed pollution sources, ment and local governments have attached more importance to the
accelerate the transformation of pollution prevention from post-event deepening deployment and development of the elderly care. In view
processing to proactive early warning and prevention, and improve the of the characteristics of China's elderly care, Dahua has launched
monitoring system. "Internet+" and "AI+" smart elderly care solutions that include different
care models including home-based care, community care and institu-
tional care, covering different scenarios including living rooms, activity
rooms, canteens, and community activity centers, so as to realize re-
al-time monitoring and early warning of activity tracks, physical health
conditions and abnormal emergencies, and solve a series of problems
like the shortage of nursing staff, lack of intelligent IoT equipment,
under-developed management methods and lagging professional
services. More comprehensive and intelligent safety care measures
have been provided to help the responsible institutions and govern-
ment departments improve management efficiency, promote the rapid
development of intelligent elderly health care industry in many aspects,
improve the standard system of elderly care services and speed up
the implementation, and promote intelligent and convenient elderly
care services. At present, Dahua has facilitated the implementation of
projects in Guangzhou, Shenzhen, Huzhou and other regions in the
country.
Prohibiting straw burning, and building a security
"firewall" with digital intelligence
Aiming at the pain points and difficulties of the falling behind supervision, Helping EPA, Panama's leading food processing
and low efficiency and difficult law enforcement of straw burning, Dahua enterprise, strengthen food safety.
takes the prevention of straw burning as the starting point, and has In the post-pandemic era, life and health have become key words.
established a monitoring and early warning system of straw burning pro- Mankind has to guard against not only the rising non-traditional secu-
hibition through intelligent image recognition technology, GIS geographic rity risks, but also the huge crisis caused by the overlapping and inter-
information technology, integrated communication technology, thermal weaving of non-traditional security risks and traditional security risks.
imaging and other advanced technologies under the policy guidance of Dahua has helped Empresa Paname de Alimentos (EPA), Panama's
the Outline of the 14th Five-Year Plan (2021-2025) for National Econom- leading food processing enterprise, deploy a set of video surveillance
ic and Social Development and Vision for 2035 of the People's Republic solutions, which has been applied in temperature monitoring, access
of China, so as to carry out real-time monitoring and efficient supervi- control, attendance management, perimeter protection and Automatic
sion of straw burning prohibition. The prohibition of straw burning has Number Plate Reader (ANPR) in the post-pandemic era, and enabled
changed from "people on guard" to "technology and people on guard", record management on an integrated platform for all equipment, event
Empowerment by Digital Intelligence
which has improved the efficiency and effectiveness of burning ban and alarm and user reports, so as to strengthen food safety and pandemic
reduced unnecessary social losses. At present, the system has been prevention and control. In addition to Empresa Panamena de Alimen-
built in Zhangjiakou and Xiong'an New Area of Hebei, Shandong, Hubei, tos (EPA), Dahua has also helped many retail enterprises around the
Sichuan, Shanxi, Liaoning, Guangxi, Anhui and other provinces. world operate safely and contributed to food safety and pandemic pre-
vention and control in various countries.
Full-link food supervision with AI guarding the
safety of food
In combination with the national plan to deepen reform and strengthen
food safety, Dahua has launched a full-link supervision solution for
food production, circulation, storage, and trading, involving multiple
links and scenarios such as sunshine factory, smart cold chain, smart
farmers market and see-through kitchens, so as to create a food safety
information platform for big data analysis, focus on promoting the ap-
plication of big data, IoT, artificial intelligence and other technologies
in the field of food safety supervision, and implement intelligent super-
vision. The solution puts emphasis on promoting the comprehensive
24
08
Empowering the smart retail logistics center
Dahua has helped Pets Corner, the second largest pet chain in the UK, open
an updated and more environmentally friendly smart retail distribution center in
Handcross, West Sussex County, serving its 150 stores. Dahua has designed and
deployed a 64-camera video surveillance system for employees, vehicles and
warehouse management in the logistics center of Pets Corner, which has effec-
tively simplified their operation.
Empowerment by Digital Intelligence for Greatness
"Dahua's support for us throughout the project has been remarkable, and we
are deeply impressed by the excellent manufacturing quality of the equipment,"
said Andy Lloyd, director of Pets Corner's urban security system. Graham Denny,
Logistics Director of Pets Corner, also praised, "Dahua has provided us with ex-
cellent video images, and the software can be easily used on my laptop, desktop
computer and mobile phone at the same time. Therefore, I highly recommend
Dahua CCTV system to any group with similar needs."
With the help of the outstanding performance of the video surveillance system of
Dahua, Pets Corner can focus more on what they do best and help their custom-
ers.
Helping a time-honored real estate management company
realize smart parking
MTS is a leading real estate management company with a history of 20 years. It
has 600 employees and experts in real estate management, real estate consult-
ing, market research and owner representatives. As the world's leading intelligent
IoT solution and service provider with video as its core, Dahua has customized
an integrated parking solution for MTS to help manage Santillana building more
intelligently. Through a variety of innovative products and advanced technologies,
Dahua has realized the real-time monitoring of parking spaces, license plate rec-
ognition, and the display of parking space status with different indicator colors, so
as to help the building manage parking and respond to incidents more efficiently,
quickly and easily. At the same time, the LED screen of each parking floor dis-
plays the automatically calculated number of available parking spaces, which
helps drivers find parking spaces quickly. Drivers can also locate their own vehi-
cles through the reverse car finder. In the future, Dahua will also help enterprises
and operators around the world upgrade their parking management systems,
achieve efficient parking management, and enable people to get a more conve-
nient parking experience.
Public Welfare Activities
Dahua Huayu Public Welfare Development Center
Established on September 24, 2021, Dahua Huayu Public Welfare Development Center is a social organization dedicated to social service and
Public Welfare Activities
public welfare activities. With the aim of "Dedicate love. Help others. Serve the society", it has cultivated Dahua people to establish a social style
of unity, fraternity, willingness to help others, and being courageous and selfless. With the leadership of the Company and the help of the society, it
has become a social organization focusing on teamwork and full of spirit for voluntary service, and a practical organization with strong will power.
Delivering the light of life with love - Blood dona-
tion activities in public welfare season
In order to fully demonstrate the warm-hearted love of Dahua people,
the Party committee of Dahua launched blood donation activities in
Dahua 1199 Park, 1181 Park and Fuyang Base on July 5, 2021. A to-
tal of 528 people signed up to participate, and 402 people successfully
donated blood, with a cumulative blood donation of 119240 ml. Dahua
people have actively promoted the spirit of voluntary blood donation
and supported public welfare activities with practical actions. Every
blood donation is a relay of life. Every beat is a spark of hope.
25
08
"Clothes for love. Books for warmth" - Clothing do- Signing strategic cooperation with the education
nation activities in public welfare season center
On September 27, 2021, Dahua Huayu Public Welfare Development On September 7, 2021, Zhejiang Dahua Technology Co., Ltd. donated
Center joined hands with Zhejiang Lions Clubs Yuanmeng Service one million RMB to Hangzhou Binjiang District People's Education
Team to organize a public welfare project with the theme of "Clothes Foundation.
for love. Books for warmth". This activity was held simultaneously in
1199 Park, 1181 Park and Fuyang base, lasting for 2 days, during
Empowerment by Digital Intelligence for Greatness
which 475 pieces of clothes and 200 books were collected.
Love warms the children and their New Year - Con-
dolence activity held with Service Center for the
Rushing to Henan for emergency relief Disabled
In July, 2021, rare extreme rainstorms broke out in many places in In order to further support the family security of disabled children with
Henan, resulting in serious waterlogging in Zhengzhou and other cit- difficulties, ensure that disabled children spend a warm and happy
ies. The grim flood condition was felt by people all over the country, Spring Festival and promote the traditional virtues of the Chinese na-
and rescue was imminent. tion to help the weak and the disabled, Zhejiang Dahua Technology
On July 21, Dahua decided to donate five million RMB to Zhengzhou Co., Ltd. and the Municipal Comprehensive Service Center for the Dis-
Red Cross Society for flood relief, protection of affected people and abled visited 20 families of disabled children with difficulties in our city
post-disaster recovery in Henan. on December 30, 2022, sending warmth and care to them.
As soon as the flood occurred, Dahua Henan related regions respond-
ed quickly, set up an emergency support team, organized employees
to participate in the rescue while ensuring their own safety, assist
Zhengzhou, Kaifeng, Jiaozuo, Zhoukou and other places to provide
7×24-hour on-site technical support and protection services, fully co-
operating with local authorities in emergency flood control, strictly pre-
venting secondary disasters and minimizing people's life and property
losses.
Public Welfare Activities
26
Hard Work for High-quality Development
09
Hard Work for High-quality Development
Innovation and Research
In the process of rapid enterprise development, Dahua insists on scientific and technological innovation as the strategic support for high-quality
enterprise development, and about 10% of the Company's annual sales revenue is invested in research and development. With Hangzhou head-
quarters as its center, the Company has established R&D sub-centers in Xi'an and Chengdu of China, Poland and Mexico, deployed global R&D
forces, met the growing business needs, and made continuous breakthrough contributions to lead the industry development with persistent innova-
tion capability.
R&D Innovation System
In 2021, the Company continued to increase effective and high-quality with R&D in AIOT product and software platform, so as to deepen the
investment in R&D. Based on Dahua Think# strategy, it adheres to "5 Full" digital intelligence capability of full sensing, full intelligence, full
the two technical strategies of AIOT and IoT Digital Intelligence Plat- connection, full computing, and full ecosystem, empower a variety of
form with five research institutes of advanced technology, big data, industries and support the sustainable, green and high-quality devel-
central, cyber security and smart city as the underlying support, and opment of economy and society.
promotes implementation of urban solutions and enterprise solutions
Innovative Talent Strategy
Adhering to the talent strategy, the Company is commit-
ted to building a diversified innovation culture and culti-
vating a high-performance R&D team with the courage
to break through and innovate. Dahua has been vigor-
ously developing innovative method empowerment and
practice activities represented by TRIZ, and gradually
integrating the application of innovation methods into
the technological development process. At present, the
achievements of Dahua's outstanding practice project
Innovation and Research
have won the first prize of Zhejiang Innovation Methods
Competition for five consecutive years and won the first
prize of National Innovation Methods Competition for
many times. Dahua has launched the leading plan to
strengthen the development of expert team which cov-
ers various industries and fields, and focused on core
technology breakthroughs, so as to further enhance
the Company's industry competitiveness and leading
position through the superb technology, products and
scenarios of application. A large reward is offered for
holding internal competitions such as R&D innovation
conference, software OJ league, and field technology
contest, which has created a favorable atmosphere of
daring to break through and innovate, and constantly
stimulated the innovation vitality of talents, so as to
provide talent guarantee for the Company's high-quality
development.
27
09
Technology Ecosystem as energy digitization and integrated simulation were extended,
Adhering to the concept of full ecology and flexible technology frame- boosting the ecological development of technological innovation.
work, the "Technology Ecosystem" has been developed to realize the During the reporting period, Dahua Industrial Design Center, based
full-link technology open system including open software platforms, on the Engineering Experiment Center, was successfully awarded the
open industry solutions, open AI platforms, and open DHOP. A total of "National Industrial Design Center" by virtue of its leading design inno-
1000+ technology partners have been developed, integrating indus- vation capability in the field of intelligent IoT. Currently, Dahua Indus-
tries and collaborating on innovation, to drive the ecosystem with tech- trial Design Center has formed a professional hierarchical structure,
Hard Work for High-quality Development
nology and accelerate the construction of an ecosystem of new digital taking basic research and innovative design as its core, continuously
intelligence industry cooperation. strengthening its industrial design capabilities, improving its industrial
design innovation system, and actively promoting the process of in-
depth empowerment of industrial development with industrial design.
Technology
Ecosystem
1000+
Open Software Platforms, Standard Development and Intellectual Property
Open Industry Solutions Rights
Open AI platforms, Open DHOP...
Dahua has actively participated in the development of standards,
leading and participating in the preparation of 28 standards in 2021,
and winning the first prize of the Science and Technology Award of
the China Communications Standards Association. The Company is
committed to green technology innovation for the protection of ecolog-
Industry-University-Research Cooperation ical balance, including the approval of the international standard Re-
The Company continues to strengthen cooperation and exchange with quirements and Reference functional model of IoT-based smart forest
national well-known universities to jointly promote new technological firefighting system, compiled under its leadership, and the publication
revolution. In 2021, the Company signed a university-enterprise stra- of the first green packaging group standard for the security industry T/
tegic cooperation agreement with the College of Information Science ZJAF 9-2021 Technical Specifications for Green Packaging of Elec-
& Electronic Engineering of Zhejiang University for in-depth cooper- tronical Security Products.
ation in talent training and joint innovation, so as to push forward the
high-quality development of "industry-university-research-application"
collectively. It also joined hands with Hangzhou Dianzi University to
establish the Intelligent Information Processing Engineering Research
Center, thereby deepening the all-round technical and engineering
research cooperation in the fields of AI technology and AI development
framework. In addition, the Company teamed up with a number of
universities, including Zhejiang University, Sichuan University, Xidian
University and Xi'an Jiaotong University, to set up the University Dahua
Scholarship, thus making due contribution to the talent cultivation of
Chinese universities.
In the era of knowledge-driven economy, the market competition
among enterprises has shifted to high value-added technology and
brand competition. Innovation is the primary driving force in leading
high-quality development, and the protection of intellectual property
equals to the protection of innovation. The Company attaches great
importance to the protection of intellectual property, and has selected
and commended teams and individuals with outstanding contribu-
tions to technological innovation for 10 consecutive years, providing
effective incentives for innovation; it has continuously improved its
intellectual property management mechanism and actively carried out
the application and maintenance of patents, software copyrights and
Innovation and Research
trademarks; through strategic patent layout for core technologies and
high-quality patent incubation, it has accumulated high-value patent
assets to provide strong support for its market competitiveness. During
the reporting period, 975 patents were granted, of which 498 patents
were for inventions, accounting for 51%, up by 114.6% year-on-year.
Engineering Experiment Center
Driven by innovation and prioritized on quality, the basic research Patent for Utility mod- Design Software
invention el patent patent copyright Trademark
and engineering experiment capability of Dahua Engineering Ex-
periment Center provides strong support for technological innova-
tion. In 2021, more than 30 new instruments and equipment were
New New New New New
installed to increase the number of research and testing capability 498 pcs 289 pcs 188 pcs 122 pcs 130 pcs
items by more than 40. In particular, the newly acquired high-end
instruments and equipment such as x-ray and scanning electron
microscope enhanced the level of technical research in material
microscopy. In line with the Company's development direction Accumulated Accumulated Accumulated Accumulated Accumulated
1234 pcs 1338 pcs 885 pcs 977 pcs 804 pcs
of reducing energy and resource consumption, new areas such
28
09
Artificial Intelligence Ecological Cooperation
As the AI industrialization at scale represents a field with considerable Meanwhile, for various partners with solution development capabilities,
opportunity, the Company should work together with its partners and including integrators, the Company provides more than 300 commer-
customers to build an AI industrial ecosystem. The Company provides cial algorithm solutions for typical scenarios so as to help customers
targeted empowerment tools for partners with different levels of de- quickly complete the transformation of AI industrialization.
mand, thus accelerating the process of AI industrialization. With so many AI chip manufacturers and different chip capabilities,
For customers with insufficient AI development capability, the Com- algorithm deployment can be time-consuming and laborious. The
Hard Work for High-quality Development
pany provides Jinn AI open platform, enabling customers to use their Company provides Jinn NNX, an algorithm deployment tool, as a one-
own data to train scenario-based private algorithms. Simply through click optimization deployment solution for algorithm manufacturers with
the four steps of labeling, training, verification and deployment, private certain algorithm development capabilities. Jinn NNX now covers more
scenario-based algorithms can be customized to meet business needs, than 70 types of network structures and over 40 kinds of chips, and
reducing the threshold and cost of AI development, which has been has been delivered to dozens of domestic and international manufac-
implemented in Dahua Cloud public cloud and corporate privatization turers, facilitating the rapid productization of customers' self-developed
solutions. algorithms.
Label Training Verification Deployment
Online labeling tools GPU training clusters Online verification of End-edge-cloud support
Semi-automated labeling Automatic optimization model effect Multi-platform deployment
services of parameters and Continuous iteration
networks and optimization
Artificial Intelligence Global Ranking
During the reporting period, Dahua was ranked first in multiple global rankings in AI field.
Artificial Intelligence Global Ranking
First in Text Recognition
ICDAR 2019 ReCTS (Reading Chinese Text on Signboard), Character Recognition and Text Line Recognition
First in Gait Recognition
CASIA-B Gait Dataset
First in Segmentation
Cityscapes Dataset - Instance-Level Semantic Labeling Task Instance Segmentation Task
COCO Detection Challenge (Segmentation Mask, Test-dev) Instance Segmentation Task
Inria Remote Sensing Image Urban Building Segmentation Dataset
Weakly Supervised Semantic Segmentation for Lung Adenocarcinoma
First in Target Detection
MSCOCO Dataset - CoCo Detection Challenge (Bounding Box), Comprehensive Performance Ranking in Target Detection
Innovation and Research
First in Target Search
VERI-Wild Vehicle Image Search Dataset
Competition
Giga Detection: Object Detection Meets Gigapixel Videography (ICIP 2021 Workshop), First in Comprehensive Performance
Giga Tracking: When Multi-Object Tracking Meets Gigapixel Videography (ACM MM 2021 Workshop), First in Comprehensive
Performance
ICCV DeeperAction Challenge - FineAction Track on Temporal Action Localization, First in Video Motion Detection Competition
29
09
Cyber Security
The integrated development of such technologies as cloud comput-
Hard Work for High-quality Development
ing, big data, IoT, AI and 5G, pushes human society into the era of Security
Cyber Security Man- Privacy Protection
AIOT. While emerging technologies are driving human progress, Manage-
agement System Management System
ment
the open and heterogeneous network architecture also poses new
threats and challenges. In order to cope with cyber security threats
and challenges, Dahua has established the Cyber Security Research
Institute, which focuses on the continuous development of core secu- Security
Core Security Tech- Emerging Privacy
rity technologies, emerging privacy technologies, security engineering Technolo-
nology Technology
gy
capabilities, and security ecological cooperation, and is committed to
providing customers with more secure products and solutions, and
rapid security emergency services.
Security
Engineer- Security Engineering Capability
Security Organization and Structure ing
Dahua has established a systematic professional security team to
secure cyber security in all execution units through the hierarchical or-
ganization structure, covering R&D, market, supply chain, and delivery Security
and service. Service Incident Response Security Ecology
Cyber Security
Research Center
Committee
Cyber Security
DPO
Research Institute
Research Center
Domestic Marketing Center
Overseas Marketing Center
Supply Chain Management Center
Legal Department
Securities Investment Department
Delivery and Service Center
Security Engineering Group
Front Product Line
Security Engineering Group
Storage Product Line
Engineering Group
Software Platform Security
Engineering Group
Big Data Security
...
...
Cyber Security
As a supreme decision-making organization of cyber security, our The Cyber Security Research Institute, as an entity organization,
cyber security committee is the leadership decision-making institution undertakes research on key security and privacy technologies, security
of cyber security under the leadership of the Board of Directors and is engineering capacity building, and security ecology construction, re-
responsible for overall planning, coordinating, guiding and monitoring sponsible for the implementation of security and privacy requirements,
cyber security work at a strategic level. security and privacy risk assessment, security and privacy design,
penetration testing, vulnerability management, and incident response,
As a joint executive team across business, the cyber security ex- as well as the development of security process systems and security
ecution group is responsible for leading discussion and formulating compliance systems.
mechanisms and strategies relevant to cyber security at a tactical
level, and for developing, tracking and processing daily cyber security A cyber security engineering group is set up for every product line
at an executive level.It covers research, market, supply chain, delivery to closely interact with the Cyber Security Research Institute, so as
and service, and legal service, and quickly implements Dahua's cyber to achieve the rapid implementation of security standards and regula-
security resolutions in every of its business systems. tions, security and privacy technologies, and vulnerability repair and
handling across all products.
30
09
Security Engineering Capability Building
With introduction of the best security practices in the industry, Dahua has established a full set of sSDLC security software development process-
es, and fully implemented them in the R&D center. Through efforts of the professional security team, the capabilities on the whole process of secu-
rity management covering the security and privacy demand, assessment, design, coding and testing of products and solutions are realized and the
security strategies are implemented, to ensure that all products are developed in compliance with high-standard security requirements and pass
rigorous offensive and defensive testing and verification.
Hard Work for High-quality Development
Security Governance (Cyber Security Committee)
Policy and Compliance Strategy and Measurement
sSDLC (Security Software Development Life Cycle)
Charter PDR ADR LDR
CDP Launch Concept Design and Planning Development and Test Verification and Release Life Cycle
Secure Products and Solutions
TR1 TR2 TR3 TR4B TR4 TR5 TR6
Security Security
Security Demand
Design Security Test Release
Realization Penetration Preparation
Test Security
Incident
Configuration Management (Security, Consistency, End-to-end Traceability) Response
Security Training
Security Capability Supports
Security Standards and Security Technology and
Specifications Capability Library Security Tools
Basic Security Support
Network Layer Security Devices Application Layer Security Devices
Continuously Evolved and Comprehensive Security Baseline
Since the launch of the "Security Baseline" plan in 2016, Dahua has been adhering to the core principles of "Security by Design" and "Security by
Default", digging deep into product security technologies, and dedicating to providing comprehensive security guarantee for users.
With the Security Baseline based on and practicing the design principle centering on security and privacy, Dahua has constructed a product secu-
rity layout of "AAA+CIA+P", forming a systematic security framework covering physical security, system security, application security, data security,
cyber security and privacy protection.
The "AAA+CIA+P" security elements are laid out as follows:
- AAA: Authentication, Authorization, Audit
- CIA: Confidentiality, Integrity, Availability
- P: Privacy Protection
To ensure the adequacy of the Security Baseline, the Company has carried out a series of activities such as "Compliance with Laws and Regula-
tions", "Standards and Specifications Study", "Tracking Industry Dynamics", "Threat Modeling Analysis", "Key Technology Pre-research", and "Se-
Cyber Security
curity Demand Survey", to continuously output effective and high-value security demands for the Security Baseline.
As one of the important corporate standards of Dahua, the Security Baseline has been an integral part of Dahua's life-cycle management process
of security software development, and deeply integrated into the product quality assurance system to make sure default security technology guar-
antee for the full series of products.
During the reporting period, the Security Baseline was iterated to V2.2.
31
09
Continuously Upgraded Security Baseline
Authentication Authorization Audit Confidentiality Integrity Availability Privacy Protection
Security Baseline Security Baseline V1.1 Security Baseline Security Baseline Security Baseline V2.0 Security Baseline Security Baseline
V1.0 V1.2 V1.3 V2.1 V2.2
Hard Work for High-quality Development
+ Anti-Brute Force + Secure Start
Security Authentication + Session Protection + No Default + Privacy Protection + Firmware Encryption + Wireless Security + AI Feature Protection
Strong Password Account + Encryption Func-
+ Service Minimizing + Stream Encryption for
Strategy Strategy + Built-in Firewall Transmission tion Optimization
Restricted/Trusted List + Custom Permission + Security Shell + Secure Alarm Linkage
Digital Envelope Management + Reliable Upgrade + Open-source Software
+ Sensitive Data + Reliable Operating Control + ……
+ …… Encryption and Storage Environment + …… + ……
+ …… + ……
v1.0 v1.1 v1.2 v1.3 v2.0 v2.1 v2.2
Security Awareness Promotion and Talent Cultiva-
tion
During the reporting period, Dahua actively responded to the national Dahua attaches great importance to the cultivation of cyber security
call and held the Dahua Cyber Security Promotion Month in Septem- talents and continues to step up investment in cyber security develop-
ber 2021 with the theme of "Cyber Security for the People, Cyber ment. In the 2021 Hangzhou Regional Cyber and Information Security
Security by the People, and Dahua Security by Everyone". This Cyber Administrator (Cyber Security Administrator) Vocational Skills Com-
Security Promotion Month adopted both online and offline posters and petition, three colleagues from the Cyber Security Research Institute
on-site interactions to convey global cyber security laws and regula- swept the top three. The first prize winner was awarded the Technician
tions, standards and policies to all employees of the Company, and Vocational Qualification Certificates of Cyber and Information Security
to enhance their awareness and vision of cyber security through Q&A Administrator (Cyber Security Administrator) after the qualification
and suggestion collection activities. verification, as well as the title of "Hangzhou Technical Expert" by the
Municipal Bureau of Human Resources and Social Security.
Professional Product Security Incident Response Team
Dahua Product Security Incident Response Team (PSIRT) is responsible for the management of the security environment and product vulnera-
bilities in accordance with the industry practices. We offer 7*24 service to respond to global security issues and timely provide security notice and
reinforcement services. Ensure that security issues reported to Dahua through official channels can be responded to within 24 hours, or 48 hours
at the latest.
Cyber Security
Vulnerability Security Analysis, Verifica-
Disclosure
Customer Collection Evaluation tion and Repair
Internal
Customer
Vulnerability PDT Dahua CERT or Other
Dahua PSIRT
Library LMT PSIRT Interested
Supplier Parties
Dahua PSIRT Authorization Retention Clear
Security Team
https://www.dahuatech.com/service/network.html
32
09
As for the management of security issues, Dahua PSIRT adopts SN the Forum of Incident Response and Security Teams (FIRST), interna-
(Security Notice) and SA (Security Advisory) for customer communica- tional CVE Numbering Authorities (CNAs), China National Vulnerability
tion to make sure that customers are properly informed of such issues Database of Information Security (CNNVD), China National Vulner-
at different stages. ability Database (CNVD), China Cyber Threat Governance Alliance
Dahua PSIRT constructs disclosure processes for security vulnerabil- (CCTGA), Industrial Information Security Incident Services Support
ity, security advisory and security notice for all the products in accor- Unit, and other information security organizations, Dahua plays its full
dance with ISO/IEC 30111:2013 Vulnerability Handling Processes, and role as a member in promoting intelligence sharing and handling coor-
ISO/IEC 29147:2018 Vulnerability Disclosure, among other standards, dination in dealing with cyber security threats.
Hard Work for High-quality Development
and encourages end customers, partners, suppliers, government bod- In 2021, the Company was awarded the honor of "Outstanding Con-
ies, industry organizations and independent researchers who find any tributor to Vulnerability Handling" by the National Computer Network
potential risk/vulnerability to take the initiative to report the security Emergency Response Technical Team/Coordination Center of Chi-
vulnerability to us. na (known as CNCERT/CC)/China National Vulnerability Database
Dahua PSIRT actively participates in various industry and public ac- (CNVD) for our outstanding contributions to vulnerability detection and
tivities, and keeps a positive and open attitude towards exchange and handling; in addition, the Company was shortlisted as a technical sup-
communication with government CERT, customer CERT/PSIRT, other port unit for the China National APP Vulnerability Database (CAPPVD)
suppliers, researchers, and third-party coordination units. By joining of the Ministry of Industry and Information Technology.
Building a Secure and Reliable IT Architecture
Equipped with Information Systems Compatible low). The Company selects premium software and hardware suppliers
and their products, and builds information systems that meet industry
with the Strategy characteristics and business needs. By working closely with suppliers,
Hardware Network System training software and hardware maintenance personnel, and engaging
In order to build a safe, stable and sustainable information system information system users, the Company ensures the reliability, security,
environment, Dahua has now established multiple data centers: Hang- and ease of use of information system software and hardware.
zhou Headquarters Data Center, Xiaoshan Telecom Data Center,
Hangzhou Iron and Steel Group Company Mobile Data Center, and Table
AWS Data Center with multiple nodes on overseas clouds (Singapore, Reliability, Security and Ease of Use of Information Systems
Germany, Brazil) and multiple availability regions. With dedicated net-
work links, dedicated POP points and Internet links, accelerated by
SDWAN, redundancy deployment of the ring network globalization has Category Description
been achieved, to ensure the reliability of the data center networks. In The Company adopts the dual outlets of Telecom and
terms of network core and convergence, dual redundancy has been Unicom for its Internet outlets, and has established a main
adopted to guarantee the speed and stability of the intranet. server room and a backup server room. The entrance is
Based on the design of links and hardware redundancy architecture, connected to the redundant link from AliCloud through a
automatic switching of failed single link to standby link is realized, dedicated dual server room link, with entrance from AliCloud
enabling backbone services to be fully online and no perception of au- to ensure the security and reliability of link access. The
tomatic switching by users; based on the deployment of the software server rooms are equipped with dual utility power and highly
management system, full coverage of business scenarios is realized; reliable UPS system power supply to ensure the stability
based on the construction of data lake and data warehouse, full con- of the Company's network infrastructure and business
nection of data and timely access to information is achieved; through Reliability systems;
the ITSM hotline service, 7*24 services and self-service for internal All key business systems are designed with disaster
users are provided, and through applications such as the portal/App, response solutions to ensure stable operation of informa-
information inquiry self-service is provided for external customers, sup- tion systems and data security at any time and under any
pliers and partners. The Company keeps increasing its investment in circumstances. In case of a disaster, information systems
hardware to support the framework of global business operation. can be quickly migrated or recovered;
A reliable data backup and recovery plan is adopted for
Software Management System non-critical business systems, with all data kept with remote
storage backups; regular drills are performed to check the
Currently and for a long time to come, the IT architecture of Dahua will
recoverability of backups.
follow a hybrid architecture model: traditional holistic architecture + mi-
Based on the four major components of the Security
croservice mid-platform architecture + cloud computing base + AI/IoT
Baseline for terminal access detection by access devices,
applications. In terms of the application system, the Company recon-
namely, antivirus software, DLP, access system, and wa-
structs and connects various "chimney" systems through the business
Building a Secure and Reliable IT Architecture
termarking system, the security requirements of terminals
mid-platform to establish various shared service centers and realize
accessing the internal network of enterprises are fulfilled;
the digital accumulation of business capabilities; through the construc-
virtual desktop systems are deployed for key positions; and
tion of data mid-platform and data lake, the Company builds the data
the deployment of data backup systems are strengthened;
sharing platform for the group, realizing the centralized management
The data centers have deployed blacklist and whitelist,
of at-most-once data extraction and improving the reuse rate of data,
and port minimization policies, and so forth. Meanwhile,
to effectively avoid data isolation and provide digital basis for manage-
security devices, firewalls and WAFs, among others, are
ment decisions. The technical architecture of the data mid-platform
deployed at data center boundaries, to shield high-risk
adopts a convergence structure to realize the unified management and
ports, and turn on security modules such as IPS, AV, and
implementation of data standards, data governance and data directory,
WAF to guarantee secure and controllable business.
while providing data services in the form of microservices to ensure the
Due to its global development strategy and the fierce
data consistency of each application system. Security
market competition demand, Dahua was awarded ISO/
IEC27701 Privacy Information Management System
Certification, ISO27017 Cloud Security Certification and
Ensuring the Reliability, Security and Ease of Use ISO27018 Public Cloud Personal Information Protection
of Software and Hardware Certification by the British Standards Institution (BSI);
The Company has formulated relevant regulation documents such as The accreditation of these three certifications signifies
DH IS 009 Information Asset Confidentiality Management System, DH that Dahua products have been recognized by international
IS 017 Anti-virus and Malware Management Regulations and DH IS 022 authorities in terms of security, accuracy and transparency
Data Backup Management Regulations to well manage data, informa- in handling personal information;
tion, software and hardware, and improve the reliability, security and The Company also possesses the ability to operate and
ease of use of data and information management software and hard- manage public cloud business. Dahua is the first company
ware, thus ensuring that the information system infrastructure meets in the security industry to obtain such certifications, which
the Company's strategic development requirements (see the table be- fully demonstrates its foresight and continuous practice in
data security and privacy protection. 33
09
Reliability: By building such infrastructure as redundancy, high availability, and backup recovery, ensure the high availability of perfor-
mance, and smooth and reliable continuous operation of data centers, network links, and computing storage of system applications (see
the table below).
Table Reliability - Data Centers, Network Links, Computing Storage
Data Center + Cloud Network and Link Computing and Storage
Hard Work for High-quality Development
Plan the construction of data centers and Build a network architecture that matches By planning and integrating server com-
clouds in a unified manner to improve the distribution of application systems puting resources and storage resourc-
the physical environment for stable and data centers; realize the redundancy es, realize shareable, easily scalable
operation of information systems and of globalized networks and data center and flexible back-end resources that
enhance reliability. backbone; improve the load balancing correspond to application system deploy-
capability of network flows; and enhance ment, and enhance high availability and
security and network reliability. reliability of business.
Security: By building an information security system architecture, defend against external risks, prevent internal vulnerabilities, and sus-
tain security operations, so as to ensure the security and solidity of Dahua's business (see the figure below).
Figure Security - Information Security System Architecture
General policy of information security: Strengthen internal and external security risk management to meet the requirements
of rapid corporate development; enable continuous improvement to ensure solid business operation.
Information
Third-Party Audits & Compliance Testing
Security Awareness of Staff
Information Security Organizations by
Security Capability Supports
Security Promotion, Implemen- Risk Assessment Safety Inspection
Institutional Process tation and Training
Organization
Department
Technical Systems Operating System
Physical Security Cyber Security External Threat Defense Business Continuity
Internal Vulnerability
System Security Data Security Disaster Drill
Management
Incident and Incident Access Control
Terminal Security Application Security
Response Management
Preventing Internal Defending Against External Risks Consolidating Platform Stability and Compliance
Vulnerabilities
The information security Defend against external attacks and com- Improve the information security management system to support
technology defense safe- petitors' stealing of secrets, and enhance business continuity; build an information security audit and mon-
guards information assets security strength in the industry; fulfill audit itoring system, strengthen promotion and implementation among
and maintains competitive requirements and comply with laws and reg- all staff, enhance staff awareness of information security, prevent
edges. ulations, full of social credibility. internal leakage of secrets and ensure staff behavior compliance.
Security Operations Examples of Continued En- Normalized/Ongoing
Function
Module Key Activities hancement in 2020 Operation in 2019
Establish regulations on information security to ensure
Management Systems/ that security works are guided on a legal basis. Management of Key Positions System Revision and Release Information Security Organization Appoint-
ments
Technical Standards Clearly define responsibilities and establish a top-down
Development/Organization promotion mechanism.
Cyber Security
Confidentiality Agreement Signing Intensive Asset Management
Building Populate laws and regulations and advocate law-abiding
to form sound security awareness.
Identify and dispose of security risks. DLP Operation Vulnerability Scanning Account/Permission Management
Risk Assessment/ Apply information security technologies flexibly
Process Monitoring Monitor behavioral trends to perceive risks and give BYOD Control Project Risk Assessment
alerts timely.
Sword Action ISO270001 Audit Classified Protection/Security Inspection
Discover non-compliance of actual operations and
Security Inspection/
propose corrections in time to promote the implementation,
Compliance Audit Resignation and Job Transfer Audit Special Audit of Key Positions
improvement and upgrade of security policies.
Security Incident Handling Daily Non-compliance Notification Security Report
Enhance the awareness of security responsibility and
Security Assessment and
level of attention to security responsibilities.
Accountability Promotion and Alert Security Performance
Promote the implementation of security works.
Executive/Management Interviews Security Week/Thematic Promotion Staff Training
Security Culture/
Shape a sound corporate security culture.
Awareness Promotion Online Exam
34
09
Professional Service and Delivery for Global Customers
With the customer-oriented service concept, Dahua has been gradually building four service systems covering the whole market and the
Hard Work for High-quality Development
full business, including the integrated delivery system, technical support system, operation and maintenance management system, and
training and certification system; meanwhile, by integrating its corporate resources and pooling the power of the ecology, Dahua provides
full life-cycle services of products and solutions to the market. Our vision is to build a world-class efficient and professional delivery plat-
form and become a superb service value creator.
Training and
Integrated delivery Technical support O&M management certification
Certification management
operation and maintenance
Consultation and design
Major incident coverage
Operation Management
Resource management
Training management
Routing inspection for
Talent Development
University-enterprise
Incident Response
Plan management
Technical support
Troubleshooting
Problem solving
Quality control
O&M solutions
Customer care
Fault handling
Client training
Spare parts
cooperation
Integrated delivery Service organization construction
Provincial
Framework Competence Training Service National Regional Headquarters Scheduling
Network layout and municipal
design standards certification supervision organizations organizations organizations operation
organizations
Service Network Coverage Digital tools installed: A complete delivery and service digital
Dahua has formed a three-tier service network to provide techni- platform has been built around project delivery management,
cal services to customers worldwide, with 57 branches worldwide customer service and service ecology construction, which realizes
and a service network covering 180 countries. It has 4 spare parts the whole process management and standardization of project
distribution centers and 140 spare parts stations (46 spare parts delivery through the ISDP system. A system for hierarchical and
stations in China), with 4000+ project managers and technical graded service ecology, standardized management and capacity
service personnel (including certified personnel), and over 1000 enhancement has been jointly built through the ecological man-
service partners, offering efficient service support for customers agement and training certification platform.
and markets.
In China, we have more than 200 offices, with a service network Service Quality Improvement
covering 100% of all provinces, municipalities, autonomous re- Through a sound technical training, assessment and induction
Professional Service and Delivery for Global Customers
gions and prefecture-level cities. management mechanism, the technical service capacity is empow-
ered to guarantee the technical capacity service business stan-
Service Capacity Building dards. By means of a grid-based staff skills information and staffing
Technical support integration: Build a large service mid-platform management platform, the consistency and standardization of ser-
with the integration of ITR, 400, project technical support and han- vice capacity across the network is ensured, while service quality
dling of customer quality issues, so as to provide rapid response is monitored through systematic monitoring, and automated testing
to front-line business and connect all service links to ensure a is realized following the repair of hardware products, requiring
closed-loop of service guarantee without breakpoints and improve compliance with factory standards. In addition, the service quality
service efficiency and customer satisfaction. of the whole process from customer to customer is supervised, sys-
Training system empowerment: In addition to a scenario-based tematic problems are summarized and improved, and maintenance
field training facility at the headquarters, Dahua has established quality is monitored. The logistics evaluation system comprehen-
field training centers in 32 Chinese provinces and 5 overseas sively evaluates and incorporates logistics providers that meet
regions to create a "doorstep" field training setting for customers, customer needs, and monitors logistics timeliness and abnormality
facilitating training and certification. By combining theories with through the TMS system, so as to realize end-to-end systematized
practice, Dahua provides the best solution for talent training and monitoring of the full-process logistics information, and improve
continuously improves its own service capacity as well as that of transportation timeliness based on systematic transportation mode
its partners and customers. of automatically allocating reworked products and spare parts. Reg-
ular return visits on logistics to customers ensure that the quality of
logistics services meets customer requirements.
35
Caring For Employees, Shaping Common
10
Development
Caring For Employees, Shaping Common Development
Organizational Structure
In the process of rapid enterprise development, Dahua insists on scientific and technological innovation as the strategic support for high-quality
enterprise development, and about 10% of the Company's annual sales revenue is invested in research and development. With Hangzhou head-
quarters as its center, the Company has established R&D sub-centers in Xi'an and Chengdu of China, Poland and Mexico, deployed global R&D
forces, met the growing business needs, and made continuous breakthrough contributions to lead the industry development with persistent innova-
tion capability.
HR Service Center
A Business-Oriented Three-Pillar Model
Modeled on the Three-Pillar Model from the HRM master David Ul-
rich, Dahua has designed the structure of COE, HRBP and SSC,
Focus:
which emphasizes the concept of satisfactory business and customer
Operation
demand orientation. During the daily operation, business customers
are classified into different kinds of objects, and the "Three-Pillar" Effectiveness
Delivery Design
working operation mode is formed by combining the standardized
personnel service and HR system with the characteristic requirements Excellent talent
of business departments, so as to better support the business. More Leadership
attention is paid to the import of customer demands and the speed of Focus: Focus:
achieving and responding to customer demands, which is in line with
Customer Value
the requirements for HR in the VUCA era.
Closeness
Human
Resources Identification HR
Partner COE
The overall responsibilities of Dahua's Human Resources Center include:
Formulating and implementing various strategic plans for HR, medium and long-term HR development plans;
Establishing and improving HR-related policies, systems and processes;
Deepening core HR imperatives such as organizational management, job qualification management, talent pipeline construction, cadre manage-
ment, recruitment management, corporate culture of performance management, employee care, and training management.
Promoting organizational transformation and innovation to boost organizational performance.
Other corporate HR-related special tasks.
Based on the Three-Pillar Model and overall responsibilities, Dahua's Human Resources Center is divided into seven divisions according to func-
tions: HRBP Management Division, SSC Shared Services Division, Organization and Cadre Division, Talent Management Division, Employee Re-
lations Division, Recruitment Division, and Compensation and Performance Division, to undertake corresponding responsibilities.
Workforce Structure/Employment Profile/Human Rights Management
Employment Overview
Dahua always believes that employees are one of the most valuable assets, respects and pays attention to the hard work of every employee, pro-
tects their rights and interests, clarifies the goal and vision, and strives to create a comfortable and inviting working environment for employees so
that they can grow together with Dahua.
Human Rights Management
In business practice, Dahua values principles of human rights as stipulated in Universal Declaration of Human Rights, International Conven-
tions on Economic, Social, and Cultural Rights, International Conventions on Civil and Political Rights, and United Nations Guiding Principles for
Business and Human Rights. The internal Social Responsibility Management Manual is developed according to policies and objectives listed in
SA8000 International Standard and Social Accountability, and efforts are made to incorporate these regulations into daily workflow and policies,
so as to improve the value of Dahua's overall business activities. The company respects employees' rights of freedom of association and collec-
tive bargaining that are in accordance with national laws and under voluntary conditions, protects employees' personal information and privacy,
and clearly prohibits all possible illegal employment practices such as employment of child labor, forced labor, and restraint of freedom. In order
to maintain the harmonious and stable development and protect the rights and interests of employees, Dahua has established the Dahua Labor
Union, to actively organize activities to motivate the employees, and to act as a bridge between Dahua and the employees, to listen to their opin-
ions and protect their rights and interests. As of December 31, 2021, Dahua had a total of 20,000+ employees worldwide.
36
10
Employee Recruitment
With its commitment to "Customer-oriented, Employee-based" principle, Dahua has been actively attracting external talents, so as to provide stra-
Caring For Employees, Shaping Common Development
tegic support for its development.
In 2021, Dahua launched the Starburst Program for doctoral candidates, established the Dahua Scholarship in many universities, and organized a
series of activities themed as Coming from Campus and Going to Campus, including the National University-Enterprise Forum, Open Day event,
and Dahua Experts into Campus.
Dahua Scholarship University-Enterprise Forum Alumni and Experts into Campus
Dahua has joined hands with several universi- Dahua's University-Enterprise Forum invites In order to enable students to understand the
ties to set up the Dahua Scholarship and carry teachers from various universities to the Com- prospects and trends of enterprises and indus-
out in-depth cooperation in talent cultivation, pany for in-depth communications, so as to tries earlier, and also to better clarify their ca-
scientific research cooperation, joint project promote its cooperation with universities and to reer choices, Dahua regularly organizes alumni
filing, student competitions and experts into boost their "collaborative innovation". and experts into campus for communications
campus, so as to nurture talents together. with students.
Open Day StarForce (Global Campus Recruitment)
Dahua Open Day is open to students and teaching staff worldwide. In 2021, Dahua's campus recruitment footprint spread across the globe,
Through in-depth visits and communications in Dahua, visitors can get with 189 offline presentations and 14 online presentations, reaching
hands-on experience of Dahua's first-class high-tech atmosphere, com- 5w+ students from 1977 colleges and universities.
fortable working environment and dynamic corporate culture.
Under the requirements of pandemic prevention and control, the Company carried out large-scale and standardized cloud campus recruitment ac-
tivities, adopting a full contactless process from cloud presentation, cloud written test, to cloud interview and cloud offer, ensuring the efficient and
orderly progress of the overall recruitment process. During the campus recruitment for students who will graduate in 2022, we attracted more than
80,000 students from nearly 2,000 universities around the world, with over 50% of them having master's or doctoral degrees.
Dahua actively provides an excellent career development platform and career choice plans for all job seekers, and won the hon-
ors of Zhejiang Extraordinary Employer of the Year (awarded by Liepin, a recruitment platform), Most Influential Employer (awarded
Employee Recruitment
by Haitou.com, a job-hunting platform), and King's Ark Employer with the Most Love for Talents (awarded by BOSS Direct Re-
cruitment) in 2021, realizing a virtuous cycle of talent management of the Company while reaching a win-win situation between
the Company and the employees.
King's Ark Employer with Most Influential Employer Zhejiang Extraordinary Employer of
the Most Love for Talents Haitou.com the Year
BOSS Direct Recruitment Liepin
37
10
Compensation and Welfare
Dahua always dedicates itself to constant improvement of the compre- through interest-free loan for house purchase, annual health check-
Caring For Employees, Shaping Common Development
hensive incentive system that takes full consideration of employees' up, meal allowance, high temperature allowance and communication
material and spiritual needs, as well as short-term and long-term allowance. To solve the problem of difficult parking for employees, the
needs, providing them with competitive salaries and comprehensive Company has funded the construction of a parking building, which can
welfare guarantees. Dahua advocates "strivers-orientation", and en- accommodate nearly 1,000 employee vehicles. The Company has
courages resources to be directed to strivers. Some of the outstanding allocated special funds for team building and set up commemorative
key employees are also entitled to stock option incentives and innova- awards for employees according to their time of joining the Company.
tive business follow-on investment plans. In accordance with relevant The headquarters zone has opened leisure facilities such as physical
national and local laws and regulations, Dahua pays employees' labor therapy rooms, coffee bars and gymnasiums, and regularly holds var-
compensation in full and on time, and provides them with legal bene- ious featured activities and club activities to enrich the spare time of
fits such as "five social insurances and one housing fund", as well as employees.
additional work benefits including supplementary holidays, supplemen-
tary medical insurance, meals, communications, and interest-free loan
for house purchase. In terms of talent incentive, we strive to share the
fruits of the Company's development with employees who grow with
and continue to contribute to the Company by creating a continuous
material incentive system through stock option incentives, year-end
bonus and venture capital platform. For employees with excellent
performance, the Star of Endeavor award is also set up for them, to-
gether with written publicity and experience sharing, to continuously
create a motivated and upbeat organizational atmosphere. In addition,
the Company continues to improve the quality of life of its employees Physiotherapy room Cafeteria
Performance Management
The Company has established a reasonable and comprehensive performance management system, which closely integrates strategic planning
with performance management and forms a closed virtuous cycle system through several processes, such as assessment plan formulation, pro-
cess counseling, performance evaluation, assessment result application, and performance improvement cycle. Through scientific management
methods, the individual performance of employees and the overall performance of the Company are organically combined to closely follow Da-
hua's strategic development direction.
Performance breakdown process
0 - Company strategy map
Financial
Customer Operation
Personnel
Company 1.2 - Corporate strate-
1.1 - Company quantitative
objective + gic initiatives
Company level KPI (Finance+Operation+-
Key Performance breakdown (strategic
Indicator (KPI) Customer)
events)
Organi-
zation
Perfor-
Breakdown Undertake Breakdown Undertake mance
Compensation & Benefits/Performance Management
2.1 - Department quantita- 1.2 - Department
Operational business level Department objective KPI
tive KPI (Finance+Opera- + strategic initiatives
Indicators breakdown (strategic
tion+Customer)
events)
Breakdown Undertake Breakdown Undertake Breakdown
Staff objective 3.1 - KPI 3.2 - Personnel 3.3 - Individual
Staff level Key Performance Indicator + Personal performance management goal development
(KPI)
Individ-
contribution objective ual
Perfor-
mance
The Company carries out performance appraisal based on the principles of fairness, openness, impartiality, scientification, clarity and objectivity,
and evaluates the actual achievement of the performance target of the appraised based on key results and performance by a combination of ab-
solute and relative evaluation. The absolute evaluation is the "ratio to targets", scored by direct superiors and project managers, while the relative
evaluation is the "ratio to others", in which employees of the same position and rank are compared and ranked together on the basis of the abso-
lute evaluation, to generate a certain proportion of normal distribution and evaluate the performance level, so as to inspire employees to catch up
with each other and strive to become best performers.
38
10
Employee Growth
Dahua regards talent as valuable assets. Talent strategy is an integral Employee Career Development Guidance
Caring For Employees, Shaping Common Development
part of the Company's strategy, and also a key cornerstone and guar- The Company conducts career development planning and design for
antee for the long-term development of the Company. "Breaking the employees, jointly formulates career development goals and action
boundary of ability and cultivating more talent" is the main keynote of plans for employees, and provides corresponding support, such as
staff training and development in Dahua. The development of Dahua is performance guidance and open competition.
inseparable from the efforts and contributions of all Dahua employees.
While growing, Dahua strives to improve the platform and mechanism Training
for talent development, so that employees can develop faster and cre- In terms of the career development of employees, the Company pro-
ate more values for Dahua and also for themselves, achieving a state vides dual channels of management and expertise, and constantly
where stars gather and talents emerge. develops a qualification system with "ability" as the core, a job ap-
pointment and removal procedure with "responsibility" as the core, and
Career Development a job matching procedure with "contribution" as the core. Dahua also
The company has established a sophisticated mechanism for talent provides timely incentives through the salary system, so as to fully
training and development, a qualification management system, guiding enable employees to develop their abilities, undertake responsibilities
employees on career planning. Employees can grow, both in the man- and realize values, and obtain continuous improvement.
agement channel and in the technology channel. In addition, the Com- The Company continues to enhance the build-up of professional at-
pany offers multiple talent development solutions to help employees mosphere. Through the establishment and operation of Professional
with their career development, such as: Leaders Program, Reserve Committee/Technical Committee, the Company plans for the develop-
Cadre Pool Project, Starburst Program (High Potential), Dandelion ment of its professional/technical system, precipitates its knowledge
Program, and Internal Talent Market. and experience, and provides employees with clear professional com-
petence standards and learning resources, so as to continuously and
Give Full Play to Employees' Potential and Initiatives comprehensively improve the professional/technical competence of
In order to establish itself as a learning-based organization, the employees, and lay a solid foundation for them to undertake "respon-
Company has built an employee qualification mechanism to prompt sibility" and continue to "contribute" on their posts.
employees to continuously learn and take the initiative to exert their The Company also attaches great importance to the cultivation and in-
strengths. With explicit job responsibilities and full authorization, em- centive of the expert team, defining experts as an important guarantee
ployees are guided to work creatively and independently to give full for the sustainable development of the business. Leading experts in
play to their potential. each professional field are encouraged to break the boundaries, focus
on core technology breakthroughs, and guide more excellent profes-
sionals through subject research, practice, and knowledge and expe-
Establish a Multi-Channel Talent Training Sys- rience accumulation. In addition, external training, expert allowance,
tem to Provide Employees with Opportunities for subject bonus, expert conference, and exclusive car parking incentive
Learning and Development plan are provided to them for their development and incentives.
According to the different abilities, hobbies and characteristics of var- During the reporting period, the Company launched the Dandelion
ious positions of employees, Dahua provides two channels for their Plan for the mobility of technical staff. The Dandelion Plan fully re-
career development: the channel of technology, and the channel of spects the will of employees and adopts a voluntary application model,
management, so as to get them fully motivated. Based on the dual with the encouragement and support of established regulations on the
channels of development, Dahua sets up posting standards and learn- company level.
ing resources to enhance the competence of employees. Meanwhile, During the reporting period, the Company launched a number of differ-
the Company adopts the mode of separated evaluation and employ- entiated development programs for different employees to fully cover
ment, and provides development opportunities for employees on the their development needs. For example, the "Dandelion Plan", based
basis of their abilities shown through job performance, in the form of on the will of employees, aims at the mobility and rotation practice of
organizational nomination, competitive recruitment, internal recruit- technical staff; the "Leader Plan", supporting the breakthrough devel-
ment, and various resource pools. opment of experts in various fields; the "Cadre Reserve Plan", aiming
at the development and training of excellent managers; the "Starburst
Program", aiming at high-potential employees; and the HTTP Program,
targeted at the training of fresh graduates.
Professional technology The Company emphasizes staff training and practice, and has set
Management channel
channel up hands-on training bases for employees. It upholds the "business
success-oriented, organization development-centered, and personal
growth-based" training concept, with managers at all levels actively
participating in the development and teaching of training sessions, to
Senior manager Senior expert "cultivate better people with the best people". Employee Growth
Middle and senior
Experts
managers
Leadership and Man- Business Scenario
Learning Section for
Professional Qualifi-
agement Training Training
cation Study
Junior and middle
Leaders
Backbone staff
managers The Spark Project Youth Training System
Junior staff New Employee Training
Course Library Question Bank Case Library Lecturer Pool Mentor Pool
Platform
Training
Beginner
Operation Implementation
E-learning Platform
Specification and Operation
Employee Career Development Channel
39
10
The Company employs a combination of "learning, training, practice and examination" to develop employees' ability and experience in a multi-di-
mensional manner. Based on the qualification system and business development, the Company shares learning resources through learning plat-
forms to achieve 555,000 hours of independent learning during the reporting period, 107,000 hours of learning through live streaming on online
learning platforms (considering the pandemic situation and employees' diversified learning demands), and 313,000 hours of learning through of-
fline intensive training. During the reporting period, the total training hours of Dahua employees reached 975,000 hours, and the total direct training
cost was RMB 3.614 million. Additional costs were generated from instructor fees, tutor fees, and qualification exam incentives, totaling RMB 2.322
million, making a total training cost of RMB 5.936 million.
Caring For Employees, Shaping Common Development
Employee Care
With concern for the physical and mental health of every employee, Dahua creates a good working environment for its employees, respects them,
encourages them to actively participate in all aspects of Dahua's operation, maintains good communication channels, and inspires them to recog-
nize the mission and value of work. The company continues to innovate format of democratic management, provide employees with relevant in-
formation through more channels, and enable immediate interactions and feedbacks. When setting up rules and regulations related to attendance
appraisal, performance appraisal, employee rewards and punishments, salary payment, social insurance, welfare treatment, labor contract, and
safety production, the company will seek inputs from labor union and employee representatives by making information public on company office
system or in written format.
An employee forum has been launched, enabling employees to ex- In 2021, the Company continued to hold activities of the "Health
press their views, and participate in online communications and dis- Season - Striving Season" series, and started the "Dahua People -
cussions. And also the company culture are promoted to employees Happiness Star" series. This will draw more attention of employees to
in ways that are welcomed by them. The Company has also launched healthy life and work, becoming a healthy and happy Dahua member.
the project of "Reporting Once at Most", set up a suggestion box for Every Saturday, professional organizations are invited to the Park to
employees, and opened a message board in its WeChat public ac- provide free tutoring services for employees' children, primarily home-
count "FangHua Club" to listen to employees' suggestions. work tutoring and interest cultivation.
Greetings were sent to family members of expatriate employees and Diversified clubs including soccer club, basketball club, badminton
employees staying in their posts during the Spring Festival, and letters club, running club, singing and dancing club, Tai Chi club, and music
were addressed to the families of outstanding employees. club have been set up, and various sports and cultural activities are
held from time to time to enrich the spare time of employees.
Figure Condolences to employees in difficulty
For employees having joined the company for one, three, five or ten
years, commemorative gifts were awarded to them, to enhance their
sense of belonging and strengthen their adhesion to the Company.
Employee Care
Figure Anniversary care
Dahua is dedicated to building its cultural atmosphere, and keeps
experimenting with more diversified platforms and innovative media
interactions. The employee culture system ranging from offline to on-
line, headquarters to regions, and local to global, has been gradually
established, enabling more Dahua fellows to feel and practice the
"customer-centered and striver-oriented" corporate culture.
40
10
Employee Health and Safety Management
With its constant focus on employees' occupational health and safety, Dahua has strictly complied with the Work Safety Law of the People's
Caring For Employees, Shaping Common Development
Republic of China, the Law of the People's Republic of China on the Prevention and Treatment of Occupational Diseases, and the Management
Measures of Occupational Health Inspection, among other national and local laws and regulations on occupational health in its operations. Dahua
has built a top-down systematic prevention management mechanism to minimize the occurrence of accidents in production, environmental pollu-
tion and occupational diseases. The Company has established and passed ISO45001 Occupational Health and Safety Management Systems, and
ISO14001 Environmental Management Systems, among other system certifications, and conducts internal and external audits on a regular basis,
to effectively control the risk factors to the occupational health & safety and the environment as well as running activities relating thereto, so as to
effectively utilize resources and energy, fundamentally eliminate or lower the risks to the occupational health & safety and the environment, and
ensure compliance with the policies and objectives for the management of the occupational health & safety and the environment.
Director of Safety Production Committee
Tier-1 Organization
Director of the Security Commit-
tee: Xu Zhicheng (general) Secretariat: Security
Members: Vice President and De- Management Department
partments & Persons in Charge
Committee Member
Dorm Management
Catering Committee
Emergency Committee
Park Security Guards
Domestic Marketing Center
Management Branch of
Overseas Sales Center
Management Branch of
Administrative Center
Management Branch of
Management Branch
Delivery and Service Center
Engineering Co., Ltd.
Zhejiang Dahua System
Management Branch of
Co., Ltd.
Zhejiang Dahua Zhilian
Management Branch of
Subsidiaries
Other Departments and
Management Branch of
Research Center
Management Branch of
Tier-2 Organization
Organizational Structure for Occupational Health nifies that it has established a standard system with reasonable
and Safety Management structure, clear hierarchy, comprehensive system and good secu-
Dahua has a Safety Production Management Committee that strict- rity, and boasts a set of standardized management mode suitable
ly observes the relevant provisions of national and local laws and for its own development characteristics, with strict implementation
regulations, to strengthen occupational health, safety and environ- of standardized management.
mental management, consistently improve the management mech-
anism, and protect employees' safety and Company's property. The Occupational Health
company strictly follows relevant regulations, and has formulated According to relevant laws and regulations as well as system Employee Health and Safety Management
corresponding rules and regulations such as DH QP 020 Envi- standards, Dahua regularly commissions third-party institutions to
ronmental Health Operation Management Procedures", "Safety conduct checks on all places with occupational disease hazards,
Production Management System", "DH-BPR-BS-463-S01 Com- equips relevant employees with labor protection supplies and
pany Safety Management System", and "DH-BPR-BS-463-G01 organizes regular occupational health checks. Through publicity
Safety Management And Prevention Guidance, which have clear and education, Dahua has actively taken a number of occupa-
requirements, as well as distinct reward and punishment standards, tional health prevention and protection measures, carried out
consistently improving the ability of safety production and environ- corresponding operation guidance for all employees exposed to
mental management. By consistently improving the management and using chemicals, and posted occupational hazard and safety
organization, all staff have signed the responsibility statement of notification cards, and hanging safety instruction signs at produc-
safety production at different levels, with clear safety objectives and tion sites to clarify the protection requirements and emergency
responsibilities detailed to individuals. Annual assessment is con- handling requirements; the coverage percentage of safety educa-
ducted accordingly. In addition, the company increases surveillance tion for Dahua's on-the-job personnel, the percentage of special
on high-risk sites through reinforced management of technical operators holding certificates and the percentage of occupational
safety measures at production site. As a result, safety production is hazard factor detection have all reached 100%. During the re-
in sound condition and under continuous improvement. No safety porting period, no cases of occupational accidents were reported
production accidents have occurred in the past three years. in Dahua. In addition, we continued to optimize the production
Moreover, the Company is among the first batch of 5A-certified processes and reduce or avoid employees' direct exposure to oc-
enterprises for Good Standardizing Practice in China, which sig- cupational disease hazards through intelligent transformation.
41
10
Occupational Health Protection
Occupational Health Examination and Hazard Occupational Hazard Factor Testing
Communication Process During the reporting period, the Company commissioned
During the reporting period, the DH-BPR-BS-1066-S01 qualified third-party testing organizations to conduct com-
Occupational Health Management Guidelines were es- prehensive testing of all exposure points to occupational
Caring For Employees, Shaping Common Development
tablished to clarify the process of occupational health hazards, with all testing results being "Pass".
examination and notification of occupational hazards.
Occupational Health Management for Solder- Occupational Health Examination
ing Operations During the reporting period, occupational health examina-
Solder work instructions were developed to guide sol- tion was arranged for employees exposed to occupation-
dering workers in individual protection and hazardous al hazards, with all the examination results being good
waste collection and disposal, so as to strengthen the and no cases of occupational diseases.
standardization of occupational health and environmental
management of soldering operations in the Company.
Safety Production System Construction The Company passed the initial assessment of Level 2 Enterprise of
Dahua strictly abides by the Law of the People's Republic of China Safety Production Standardization in 2017 and completed the second
on Work Safety, the Regulations on Work Injury Insurance and other assessment in 2021. The production base, as a densely populated
related laws and regulations, focuses on the management of work place, also passed the Level 2 Assessment of Safety Production Stan-
safety, and always implements the production safety policy of "safety dardization, thus realizing the standardization of management, sites
first, prevention oriented, and comprehensive management". It firmly and operations. These achievements are continuously consolidated.
implements the production safety responsibility system, comprehen-
sively carries out the investigation and treatment of hidden dangers in Safety Management and Prevention
production safety, and extends the safety technology from production With great emphasis on safety production, the company has
sites to the whole process of R&D, procurement and product life cycle stepped up investment in management resources, regularly carried
management. out relevant activities for employees, such as occupational safety edu-
The Company obtained OHSAS18001 Occupational Health and cation and training, emergency drills, joint defense between the police
Safety Management System certification in 2010 and upgraded it to and enterprises, fire drills, safety activities, knowledge communication,
ISO45001 international standard in 2019, forming the basis for ensur- and hazard identification, to advocate early hazard identification and
ing the effective operation of the system, and controlling or eliminating prevention, as well as effective hazard management.
potential environmental impacts and occupational health and safety June 2021 marked the 20th "Safety Production Month" in China. Da-
hazards. On one hand, a series of policies, such as Safety Production hua's labor union, together with safety committee of Dahua Fuyang
Management System, Production Operation Specification, Equipment Park, organized a series of activities for 2021 "Safety Production
Safety Management System, and Hazardous Chemicals Management Month" in the Fuyang production base. Under the theme of "Defining
System, have been developed as detailed safety standards and work Safety Responsibility and Promoting Safety Development", various
specifications to guide employee for standardized operations. On the activities were organized, such as safety knowledge contest, fire
other hand, the matrix organizational management model is adopted, emergency drills, safety knowledge promotion, all-staff safety knowl-
so that the safety management committee of the base implement var- edge tests, and work meetings of the safety committee. The safety
ious of safety-related working responsibilities specific to each post, to awareness and emergency incident response capability of employees
organize regular safety meetings, regular safety inspections, fire drills, were further enhanced, and the initiative of all staff to participate in
and other safety themed activities. safety management was continuously improved, thus enhancing the
During the reporting period, Dahua's system operated smoothly and the safety environment in and around our parks on an ongoing basis, and
overall safety risks were under control. Dahua continuously strength- boosting the level of safety production and continuous stability of safe-
ened safety publicity and training, and organized a series of diversified ty production in the parks.
emergency drills to enhance the safety awareness of employees.
Organizational Structure for Occupational Health and Safety Management
Safety Knowledge Contest
Employees participated in the question and answer session
by scanning the QR code, together with the lucky draw. They
actively searched and raised questions for the production
safety laws and regulations requirements and general knowl-
edge of safety protection and emergency rescue. The front-
line employees were motivated to participate in safety man-
agement.
Fire Emergency Drill
Firefighting knowledge training, early warning, personnel es-
cape and evacuation, and hands-on use of fire extinguishers
drills were carried out to improve the fire safety awareness
and self-rescue ability of all staff through professional guid-
ance.
42
10
All-Staff Safety Learning and Test
Together with the Human Resources and Legal Affairs departments, we prepared test questions on safety for all staff and distributed the
link to the safety test (mandatory) on the Company's learning platform. Dahua employees actively participated in the test, with more than
10,000 of them participating in the online test.
Caring For Employees, Shaping Common Development
Safety Promotion
Safety banners and posters were displayed at the main en-
trances and exits, and relevant requirements of Safety Month
and fire safety knowledge were played on electronic screens
on a rolling basis to promote general knowledge of produc-
tion safety and create a safe production atmosphere.
Vehicle People Material Management
Entrance and exit vehicle Automatic visitor control RFID warehouse access man- Electronic inspection sys-
management Automatic control of agement tem
Parking lot vehicle man- production station and Machine room environment Control center dispatch
agement environment monitoring (temperature and (stereoscopic management
Automatic dispatch of Intelligent access control humidity, UPS, etc.) and control)
warehouse vehicles and and consumption man- Automatic control of hazardous Park and production data
goods agement goods warehouse control
Safety Management Monitoring System
The safety management system is an important branch of safety governance. Based on the "five elements" of people, machine, material, environ-
ment, and management, a safety management system is established in compliance with such requirements as safety standardization and EHS,
offering real-time, highly integrated, and classified management and enabling timely warning of dangers to quickly locate the exception and reduc-
tion the scope and level of dangers.
In 2021, in the face of the pandemic, the Park Safety Committee formulated detailed preventive measures according to relevant government pol-
icies. By establishing multi-channel, rapid and effective information communication channels and leveraging technological innovation, systems
such as itinerary registration, health reporting, telecommuting and park passes were introduced promptly for timely and accurate collection of all
staff information. Meanwhile, WeChat groups were formed in each department to ensure consistent communication and implementation of an-
ti-pandemic policies. For suspected and confirmed cases at home and abroad, we promptly arranged local medical resources for them and closely
monitored their conditions on a daily basis.
In addition, the cafeteria adopted separate tables and batches of dining to avoid unnecessary risks when dining; employees on trips and those
living outside of the parks needed to show green health codes, measure body temperatures, and report their itinerary daily at work; during the
pandemic, dormitories, cafeteria, public areas and production workshops were disinfected once a day, stocked with anti-pandemic supplies such
as disinfectants, hand sanitizers, independent quarantine rooms, masks, and tents; when employees had fever, cough, and other abnormalities,
special vehicles were arranged to send them to hospitals.
Organizational Structure for Occupational Health and Safety Management
Face Recognition and Temperature Network Identification of Health Code
Dining in Different Tables at Different Times
Measurement and Attendance
43
Forging Ahead Hand in Hand, and Living in
11
Harmony
Forging Ahead Hand in Hand, and Living in Harmony
Supplier Management
Following the principle of "win-win cooperation, transparency and compliance", Dahua has established and continuously maintained good partner-
ships with suppliers, banks and other stakeholders by adopting a contract-based business model. It insists on standardizing and continuously opti-
mizing the supplier incorporation process system, with the establishment of a perfect contract system to ensure the stable and efficient operation of
the supply system. By the end of 2021, the Company had included 1,665 suppliers worldwide in its qualified supplier resources pool and rigorously
required suppliers to sign key agreements such as the Material Procurement Framework Agreement, Supplier Social Responsibility Agreement,
Supplier Compliance Commitment Letter and Supplier Commitment Letter on Environmental Protection to ensure the sound and sustainable de-
velopment both Dahua and suppliers.
Exploration of the Market Segment and Transparent Procurement
As an international listed company, Dahua has been adhering to the concept of "Fostering, Accompanying, Growing" in the management and cul-
tivation of suppliers, realizing the online visual management of the whole business in the whole process management of suppliers, making great
efforts in the incorporation, collaboration, performance and support of suppliers, completing the formulation of business standards and rules, and
effectively transferring information and data through the upstream and downstream system connections.
Open and transparent incorporation process Business collaboration and information
Customize supplier development strategies by category, sharing
establish a hierarchical management mechanism based on cat- Get involved in the early development of new components
egory, and define the incorporation threshold standard, with the throughout the supplier process
red line one vote veto The supplier collaboration platform supports supplier incor-
Clarify environmental protection qualifications, social respon- poration and order tracking, to improve the fulfillment rate of
sibility, integrity, and confidentiality requirements, and sign envi- delivery requirements
ronmental protection, integrity, and confidentiality agreements Support the key process parameters, production, delivery,
Establish the collective on-site review mechanism of three Supplier Supplier
and quality data of suppliers' components
develop- collabo-
parties of technology, quality, and procurement, to incorporate The IT system supports the building of a cost model to achieve
ment ration
suppliers in the IT system monitoring of the whole process cost coordination between the supplier side and the buyer side
Supplier Management/Intensive Efforts and Sunshine Procurement/Quality Development and Sustainable Procurement
Supplier Supplier
support perfor-
Lean guidance for continuous improvement mance Fair data performance management
Support suppliers in capacity layout and automation of pro- Establish suppliers' risk profiles in an all-round way, give early
duction lines warning of abnormal risks, and systematically track risky deci-
Provide lean guidance for suppliers with poor performance, sion-making plans
and incentives for those with good performance, to motivate Establish suppliers' performance ratings and implement
suppliers and achieve win-win results associated order quota adjustment to ensure fair treatment of
Implement a strict supplier exit mechanism, that replaces or multiple parties
phases out in time suppliers who violate the red line or remain Combine regular routine audits, surprise checks and QBR,
incompetent after guidance.The AVL library and potential suppli- and develop restricted and trusted lists to motivate suppliers
er library guarantee the supplies of the resource pool
High-quality Development and Continuous Stable Procurement
In the face of the turbulent world economy and the complex and changing pandemic conditions, it has been the Company's primary strategic policy
to resolve the uncertainty in its supply chain and ensure the security of supply. Through continuous practice and exploration, the Company has es-
tablished a complete system and process mechanism to deal with various uncertainties. The many unexpected events in the supply chain in recent
years never halted the production, product development or sales of the Company, but rather have made its business even more robust, maintain-
ing more rapid and steady vigorous development. This is precisely supported by the rapid response of the Company's supply chain system and its
strong R&D strength.
Build a supply secu- Optimize the ecological Enhance the anti-risk Enforce strategies
rity platform layout of strategic collab- capability of supplies against risks
oration
Establish risk assessment pro- Identify strategic suppliers based Establish a basic database of Prepare stocks and develop
grams and specific judging rules, on supplier profiles, and develop material costs, process capacity alternatives for risky materials and
and build an electronic platform for and implement targeted strategies and production line automation ca- suppliers
management and action plans pability for each material category Provide risk warning and risk
Establish a supplier risk data- Sort out key suppliers according Establish a control system for avoidance for new product material
base and market risk collection to material categories, and formu- secondary materials such as bulk selection
system late and implement a management commodities
Establish a management system plan for risky suppliers Promote the layout of localiza-
for risky materials and suppliers tion, automation and information-
ization in a scientific way
Supply Security
44
11
Shared Prosperity and Harmonious Procurement
As a socially responsible enterprise, Dahua has been responding to the national call and advocating the harmonious development within the human
group and between human and nature. In terms of the environment, Dahua requires all the incorporated suppliers to follow the requirements of the
Forging Ahead Hand in Hand, and Living in Harmony
ISO14000 environment management system and strictly implement RoHS2.0 for all the materials, including process production. All the suppliers shall
sign the Commitment Letter on Environmental Protection. A red threshold is set for suppliers with no system management or not satisfying the basic
terms on environmental protection. Training for improvement is also provided to help our partners improve their source allocation capacity.
In terms of humanity and social responsibility, Dahua emphasizes equality among different people and races. Handicapped persons have the prior-
ity for humanistic care and suitable jobs to give play to their social value. While being self-disciplined, we also require all the partners to fulfill their
responsibilities and sign the Supplier Social Responsibility Agreement. Taking safety as the starting point, Dahua requires all the partners to carry
out safe production and operations, and sign an EHS commitment, avoid intentional delay of salary payment, avoid harsh working environment,
and take the lead to build a safe and stable social business environment.
Supplier development and qualification Agreement signing and effective-
review ness management
Review the environmental system, operating All suppliers are required to sign the Com-
personnel and production process documents mitment Letter on Environmental Protection
Conduct three-party review of manufacturing All suppliers are required to sign the Sup-
suppliers and secondary suppliers, with a focus plier Social Responsibility Agreement
on compliance of environmental, health and Regularly update the environmental RoHS
safety management with national requirements, report through the system and audit the va-
in addition to their manufacturing capabilities lidity of the environmental RoHS report
Regular and unannounced inspection
Perform sampling inspection on materials pro-
vided by suppliers to see whether they meet the
environmental requirements Summary and improvement
Build the Dahua RoHS testing lab and meet the Social responsibility Solve identified problems which can be
EU directive; develop a materials lab testing plan Harmonious improved
to expand the coverage of RoHS testing procurement Corresponding changes shall be made to
Perform unannounced inspections on suppliers the agreement if it is found to be incomplete
Proactive and Harmonized Procurement/Regional Linkage and Local Penetration/Responsible Mineral Procurement
from time to time to see whether the working en- In case of serious non-compliance, the
vironment and on-site management of personnel supplier shall be punished accordingly
meet the requirements of agreements
Regional Coordination and Local Presence
As a forerunner for the concept of a world economic community, Dahua enhanced cooperation with worldwide material suppliers and processing
plants. The Company implemented traceability label management for the purchased materials, classified and graded different materials and the
capacity of different regions, reasonably allocate resources and supplies in different places, so as to promote the coordinated development of the
whole economy. Moreover, as a leading technology enterprise in Hangzhou, Dahua is also committed to promoting the local and surrounding eco-
nomic ecosystem, giving full play to the features of the local economy, obtaining local materials for processing and production, and reducing waste
caused by the allocation of resources from far places. In this way, the surrounding ecosystem can realize the maximization of economic benefits
for resources and the highest use ratio of energy. For example: Major suppliers for packing materials, injection-molded materials, and die casting
components should be within the 4-hour supply cycle and the Just-in-time (JIT) mode is effectively implemented.
Responsible Mineral Procurement
Dahua holds and maintains that it is our corporate social responsibility not to procure and use conflict minerals. Even if we are not regulated by the
SEC, we still make our best efforts to ensure the procurement and use of conflict-free minerals in our supply chain to the extent commercially rea-
sonable.
Dahua supports initiatives related to responsible minerals, and conducts continuous and comprehensive due diligence management of possible
risks in the supply chain to jointly practice our corporate social responsibility. All relevant suppliers of Dahua shall have a management policy/
program to respond to conflict minerals requirements and shall not directly or indirectly use materials such as gold, tantalum, tungsten, tin and
cobalt that originate from areas of armed conflict. The latest version of the Conflict Minerals Reporting Template (CMRT&CRT) is used to disclose
information on the use of conflict minerals and smelter sources to Dahua annually for suppliers and their supply chains, and all smelters must be
included in the Responsible Minerals Assurance Process (RMAP).
With the resources provided by the Responsible Minerals Initiative, including the Responsible Minerals Plan, Dahua will develop a conflict minerals
control framework to assist suppliers in sourcing and using conflict-free minerals, continuously ensure the supply of smelters not affected by con-
flicts, and effectively eliminate the use of any conflict minerals in the supply chain.
45
11
Conflict minerals management framework
General provisions:
In consideration of the possible compliance risks or influence brought by conflict minerals, Dahua has included conflict minerals
in the centralized management of the Product Compliance Committee, formulated control strategies, and monitors the opera-
tional risks. Meanwhile, conflict metals are included in Dahua's general hazardous substance control requirements. Identify and
follow up the dynamic updates of conflict minerals initiatives and review internal control requirements regularly.
Forging Ahead Hand in Hand, and Living in Harmony
Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas - Organiza-
tion for Economic Cooperation and Development (OECD)
Dodd-Frank Wall Street Reform and Consumer Protection Act (Section 1502: Conflict Minerals) - Securities and Exchange
Commission (SEC)
Supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from
conflict-affected and high-risk areas (entering into force on January 1, 2021) - European Union (EU) 2017/821
Responsible Minerals Initiative (RMI) - Responsible Business Alliance (RBA)
Supplier import:
Key Conflict minerals control is included in the Supplier Incorporation Management Process as one of the baselines for supplier im-
port, requiring all manufacturing suppliers to sign and comply with the "Declaration of Conflict-Free Metals" in the Procurement
control
Framework Agreement to ensure that products supplied to Dahua and its affiliates do not contain conflict minerals or metals.
elements
for conflict Due diligence for the supply chain:
minerals Dahua conducts due diligence on conflict minerals in its supply chain through its supplier portal on an annual basis, and requires
its lower-level suppliers to effectively disclose information about the country of origin of the minerals, the smelters and refineries
used and their downstream supply chains in accordance with the reporting template of the Responsible Minerals Plan - [Conflict
Minerals (Cobalt) Reporting Template (CRT)] [Conflict Minerals (Gold, Tantalum, Tungsten and Tin) Reporting Template (CMRT)].
Supply chain collaboration:
We have established an environmental interface in the supplier portal, and further raise awareness of conflict minerals regu-
lations through training and advocacy for the supply chain. In addition, we assist suppliers in completing the conflict minerals
due diligence promptly, and support their development of internal procurement policies for conflict minerals and sub-level due
diligence programs to jointly practice corporate social responsibility.
Supplier review:
During the supplier import review and regular annual quality audit, the source or procurement channel of relevant raw minerals are
verified and confirmed. If the information provided by suppliers cannot be verified or if the suppliers do not take effective measures
to comply with the conflict minerals policy of Dahua, Dahua reserves the right to terminate cooperation with such suppliers.
To handle the possible risks of conflict minerals, Dahua has formulated the corresponding emergency plans and defined the
response mechanism and handling processes for issues in connection with conflict minerals to further improve the emergency
handling capacity for risks of conflict minerals. Dahua has fully identified the risks of conflict minerals in the supply chain and
continuously shares the results of supply chain due diligence with customers when necessary.
Risk warning in advance
Interpret relevant regulations on conflict minerals for each supplier in advance, and publicize the impacts of using con-
flict minerals. If a supplier is found to have illegal use, immediately carry out the suspension investigation of its products
and identify and warn early potential risks resulted.
Emergency
Emergency settlement in the middle of an event
plan
1. Stop using current materials of non-compliant suppliers, make rectifications, and adjust the quota of its new products;
2. The illegal products shall be destroyed from the market and replaced by reliable products;
3. In case of serious impacts on the Company or customers, suppliers should be held legally accountable.
Summary and improvement afterwards
Summarize the reasons and fundamental problems of illegal use of conflict minerals, and make adjustment to the rele-
Responsible Mineral Procurement
vant product design standards or supplier management regulations to avoid similar risks during new material selection
or supplier selection in the future.
**Conflict minerals/metals (3TG): The term refers to tin (Sn), tungsten (W), tantalum (Ta), gold (Au), and other minerals derived from the Demo-
cratic Republic of Congo (DRC) and surrounding countries. The mining and sales of such minerals often go with severe human rights abuses and
environmental crises, and may provide financial support to persistent illegal armed groups and regional armed conflicts in these countries.
In the report period, the governance achievements of conflict minerals are as follows:
1. The signing rate of Declaration of Conflict Minerals-Free by new suppliers is 100%;
2. The reply rate of production suppliers is 100%;
3. Complaint about violations of conflict minerals is 0;
Dahua added due diligence for cobalt for the first time and has made significant progress. At the same time, we will continue to focus on seeking
alternative technologies for cobalt materials in lithium batteries. In addition, Dahua has issued an updated Declaration of Metal Conflict-Free (for
more information, please visit: https://www.dahuasecurity.com/newsEvents/DahuaNotice/847)
46
11
Growth of Suppliers
Dahua focuses on growing together with its partners. In the report period, it has carried out the QCC Activity and Quality Empowerment
Training Camp to share the Company's excellent management experience with suppliers to improve their problem-solving ability.
Forging Ahead Hand in Hand, and Living in Harmony
QCC Activity and Quality Empowerment Training Camp supplier training program
May 15th July 17th
Training arrangement Business and
(quality tool training) system training
Mid-term coaching of Coaching of project
project improvement improvement
January 7th
April 17th Online improvement
of project Results
Supplier registration
reporting
and selection
Training course
research
Preparation of
invitation letter
QC project training
Improvement of
projects submission
A total of 34 suppliers participated the supplier training camp, with 47 trainees regis-
tered and 14 courses taught.
With the effort and guidance of each SQE, the online review of 33 projects of the 2021
supplier empowerment training camp was completed; 29 qualified projects were regarded as
qualified (including 1 outstanding project, 14 excellent projects and 14 qualified projects).
Supply Chain Management
Dahua’s supply chain is committed to building an efficient, intelligent and reliable supply system for the global market, adhering to the
"customer-centered" service philosophy, taking globalization, diversification, integration and digital intelligence as the main line for devel-
opment, mitigating the adverse impact of uncertain and complex supply environment on supply chain operation, and continuously and
stably providing high-quality products for the society; Take ingenious manufacturing and green manufacturing as the development goal,
actively make efforts in the construction of intelligent manufacturing and green manufacturing, utilize digital technology and information to
enable industrial transformation and upgrading, jointly carry out green and low-carbon production together with the upstream and down-
stream of the supply chain, and promote the action of carbon peak in the whole chain.
Continuously optimizing the layout of global supply industries and promoting sustainable social development.
Supplier Growth/Supply Chain Management
In the process of global supply network layout, Dahua adheres to the openness and cooperation of the supply chain, gives full play to its
own advantages, strengthens the operation coordination of the global industrial chain, and actively explores the green and low-carbon
supply ecological chain with professional material suppliers, OEM manufacturers, and warehousing and logistics service providers, so as
to drive more partners to practice the concept of harmony and win-win, and take the road of sustainable development.
In the report period, based on different business scenarios and business models, Dahua's supply chain matched digital solutions to form
a 1 + 2 + 4 + n global multi-level supply network layout centered on the Fuyang Base of Hangzhou Headquarters, so as to meet the di-
versified needs of global customers quickly, flexibly, and efficiently.
Hangzhou Headquarters as the center: As the core intelligent manufacturing and distribution center, Dahua Smart (IOT) Industrial
Park has a 670,000 ㎡ -security industry base, covering an area of 510 acres.The park is equipped with dormitories, canteens, basketball
courts, training center, cinema, supermarket, medical room, entertainment centers, ATMs and other facilities, which greatly improves the
quality of life and well-being of employees, reduces safety risks, and provides a solid guarantee for stable product supply.
The second manufacturing base in China: To expand the security industry layout in Central China, Dahua signed a cooperation
framework agreement with Changsha Municipal People's government in 2021. The two sides will carry out in-depth cooperation in the
fields of artificial intelligence, big data application, smart city, smart education, smart fire protection, intelligent transportation and smart
security, so as to help the construction of smart city in China.
Overseas supply network: Dahua has established two light asset manufacturing and supply centers in India and Vietnam, four HUB
warehouses in core regions such as Hungary and Panama, and national sub warehouses in core overseas countries, so as to create
more local employment opportunities while serving overseas customers more efficiently and contributing to local economic development.
47
11
Global Supply Chain Network 1 + 2 + 4 + n order to delivery has been realized, and the early warning management
of local business has been realized through core data collection and big
data analysis. Facing the adverse factors, such as the complexity and
diversity of customer demands and the continuous increase of uncer-
tainty in the supply chain environment, Dahua enhanced its risk man-
agement ability over order delivery and improved customer satisfaction.
Efficient digital intelligent transportation manage-
Forging Ahead Hand in Hand, and Living in Harmony
ment system
As a practitioner of enterprise intelligence and digitization, Dahua con-
tinues to promote the construction of digital intelligent transportation
management system by adhering to the principles of giving priority
to timeliness and service over everything else, as well as continuous
innovation. In the report period, the Company made multiple achieve-
ments in the construction of digital intelligent logistics and digital intel-
Promote digital intelligence of manufacturing and ligent customs capacity, leading the sustainable development of the
improve business performance logistics industry.
Dahua has deepened reform, actively promoted the digitalization
transformation of "Internet Plus manufacturing", insisted on the in- Digital intelligent logistics scheduling platform: Through the
telligent manufacturing strategy, continuously improved the level of data interaction of EBS, MES, SCP, WMS, ICC and TMS systems,
production automation, and achieved the maximum labor intensity re- the online management of sales and delivery plan, production plan,
duction, labor cost reduction, productivity improvement, product quality logistics resource information, real time inventory information, trans-
enhancement and ecological environment for production by using in- portation scheme planning, task execution, tracking and expense
dustrial robots and flexible automation equipment, as well as data link settlement are put through. As the visualization of delivery nodes and
communication and information interaction among systems. the traceability of logistics process are supported, the management of
logistics suppliers has been improved and the logistics services have
Breakthroughs in automatic assembly: Dahua continues to pro- been continuously perfected through data analysis and the monitoring
mote the application and networking of automatic production equip- of logistics timeliness and abnormalities.At the same time, Dahua has
ment and facilities. In 2021, focusing on the needs of high-precision constructed domestic warehouses (CDC/RDC/PDC) and cooperated
assembly and relying on our deep technical accumulation in the fields with logistics suppliers through agreement to realize the pre-allocation
of video and AI algorithm, Dahua developed a new intelligent visual of warehouses and improve the logistics timeliness, with 12 - 24h
screw driver to reduce the repeated mechanical actions of employees; delivery guaranteed in Tier-1 cities and 24 - 48h delivery guaranteed
At the same time, through data acquisition, operational analysis and in tier-2 and tier-3 cities. Through continuous optimization of overseas
feedback adjustment, the qualification rate of screw assembly was in- logistics network, Dahua has expanded the multi-modal transport and
creased from 90% to more than 99%, achieving the goal of improving new mode of direct signing by shipping companies, improving the
efficiency and quality. timeliness of logistics from 85% to 90%.
Intelligent development of automated testing: Dahua continues Digital intelligent customs management platform: By establish-
to develop and upgrade its automated testing platform, constantly ing cooperation with suppliers and Hangzhou Customs and building
breaks through the bottlenecks of industry testing technology, and the its own bonded warehouse, Dahua managed to realize the intelligent
coverage of fully automatic testing technology of core products has monitoring of customs and the automation of material warehousing
reached 86%. logistics and remote customs declaration, thus improving its emergen-
1. The self-developed MTF (modulation transfer function) has changed cy response ability, reducing supply risk and capital occupation, and
the subjective judgment of images to quantitative objective automatic improving material turnover rate and logistics timeliness.
judgment, and the coverage of MTF standard has reached 73%. Through the digital intelligent customs service and tariff platform, the
2. The application of new high-precision focusing technology has full coverage of import, export, overseas and local tariff in 44 countries
turned manual focusing into fully automatic focusing, increasing the was put through, and the overall full link compliance control was re-
first pass yield from 80% to 95%. alized. As a national pioneering project, the digital intelligent customs
3. The innovative SD card function of products makes it possible to service management platform has been included in the 2022 "Trail-
avoid the starting of the cold test scheme, reducing the working hours blazer" and "Leading Wild Goose" key research projects of the provin-
from 35S to 7S for each set, improving the efficiency by 80%. cial Science and Technology Department (Project No. 2022C03139),
which was submitted by Hangzhou Customs Data Center and popular-
Intelligent logistics: ized in Zhejiang as Dahua digital intelligent customs service solution,
1. By adopting AGV, machine vision, robot, big data and other tech- which has enhanced the brand influence of Dahua and facilitated its
nologies independently developed by Dahua, we managed to promote market promotion.
the automation of on-site logistics (warehousing, sorting, transmission,
batching to the line and shipment) step by step, improving the level of
logistics automation.
2. Coupled with the improvement of logistics automation efficiency,
Dahua promoted the application of internal and external turnover box-
es in the supply chain, realizing the utilization of unified packaging and
logistics vehicles from material manufacturing, transportation, storage,
Supply Chain Management
turnover to product manufacturing by Dahua and its suppliers. At the
same time, with the application of disposable packaging materials
reduced, this measure has reduced consumption and enhanced envi-
ronmental protection, while reducing employees' box changing actions
and improving their work efficiency.
Digital platform management:
1. The independently developed IOT TPM platform has realized the
online management of equipment maintenance plan and implemen-
tation, equipment safety operation and maintenance management,
core equipment fault diagnosis and maintenance through the comput- In 2021, Dahua Zhilian obtained the AEO advanced certification. At
er-computer, human-computer and computer-system interconnections present, three companies of Dahua have been AEO-certified, which
of key equipment. At the same time, early warning and closed-loop reduces the customs inspection rate and improves the timeliness and
management have been realized for equipment operation and process convenience of customs clearance. At the same time, through the AEO
data acquisition and application, thus improving the safety and utiliza- certification process, the Company systematically sorts out and im-
tion of equipment. proves the weak points of internal control of Customs affairs, making it
2. Through the integration of SCP, APS, MES, WMS, WCS and other possible for the comprehensive promotion of preferential policy imple-
systems, the digital and visual management of the whole process from mentation and ensuring the efficient operation of import and export.
48
11
Glories of the supply chain
In terms of social welfare, in 2021, Dahua Zhilian participated in the "Construct with One Heart"
First Aid Training in Jiangzhou Village, Xintong Township jointly organized by Fuyang District
Grass-roots Committee, Xintong Township People's Government and Fuyang District First Peo-
ple's Hospital to assist the "Rush for Construction and Time to Increase Production and Benefit"
activities by Xintong Township. And the Company was awarded the honorary certificate of "Enter-
prise Contributing to 'Rush for Construction and Time to Increase Production and Benefit'".
Forging Ahead Hand in Hand, and Living in Harmony
Growth of Distributors
The Company takes "joint construction and sharing" as the concept for the cooperation with distributors and always takes mutual growth with dis-
tributors as a strategic focus.
In the aspects of vocational and technical certification, operation and management, Dahua has established a perfect empowering mechanism for
distributor partners. In terms of vocational and technical certification, relying on 32 training centers across the country, Dahua managed to accom-
plish training and certification for a total of 7726 man-times in 2021, covering 1230 distributors. Meanwhile, relying on the Dahua Cloud Business
Platform, live-stream open courses, covering all aspects such as products, solutions, technology and industry insight, are offered to distributor part-
ners. 116 live-stream broadcasts and online courses were offered on Dahua cloud business platform in 2021, with a total of 224,000 participants.
In the aspect of operation and management, Dahua regularly organizes core distributor partners to conduct intensive training and discussion on
themes from financial management, contract business management to sales management, and carries out practical empowerment related to oper-
ation and management relying on the co-construction system between Dahua and its distributor partners.
Through the construction of multi-dimensional distributor empowerment system, Dahua has contributed to improve the overall ability of distributor
partners.
In terms of distributor product and solution capacity building, 40,000+ training sessions were completed in 1,600+ large and medium-sized cities
worldwide in 2021, covering 1,700+ primary distributor customers, 8,600+ secondary distributors and 17,000+ small and medium-sized engineer-
ing companies. Relying on the distributor conferences, promotional meetings, workshops, exhibitions vehicles, Internet live-stream broadcasts and
other methods, the course contents covered products, SMB solutions, technology empowerment, technology certification, delivery, after-sales and
other aspects. A total of 100+ courses were developed in 2021, with a total of more than 73,000 people participating in the training. In terms of joint
operation and common development, the Company actively carried out five empowering systems of strategic benchmarking, organization bench-
marking, purchase, sales and inventory benchmarking, resource investment benchmarking and product structure benchmarking, so as to jointly
build the cooperation ecology with suppliers and achieve a sustainable, high-quality and steady development.
Open Ecosystem
Under the tide of digital intelligence, open and integration have
become a new business format for the development of smart IOT
industry. Facing the trillion-level smart IOT market, the empow- Technology Ecosystem Business Ecosystem Service Ecosystem
ering industry needs the joint participation and efforts of multiple
ecological forces to realize digital intelligence upgrading. Adher-
ing to the concept of "Full Ecosystem" and the flexible technical 1000+ 15,000+ 2,100+
architecture, Dahua has constructed a complete open ecosystem Open software platform Supply chain integration Training and empowerment
and built comprehensive opening capacity from technology, busi- Industry solution devel- Industry summit Professional certification
opment Mutual-guidance of traffic Training room construction
ness to service. It is committed to allowing more partners to join Open AI platform Channel, customer and Delivery, operation and
the ecological development system of Dahua, seeking common DHOP development business opportunity maintenance
... sharing ...
development, joint innovation and two-way empowerment with ...
the whole industry, and jointly realizing the industrial vision of "In-
Growth of Distributors/Open Ecology
ternet of Things for a Future of Digital Intelligence". Co-construction, win-win and symbiosis. Build a smart IOT ecological community.
The establishment of a global service ecosystem
Establish a global service ecosystem centering on the To SMB/To B business strategy to realize local delivery, support the transformation of the
Company's solutions, and realize the reform from "equipment sales" to "the sales of equipment and service schemes". Comprehensively establish
a service ecosystem from actions such as the import of the ecosystem, certification, contract-signing, authorization, order assignment, settlement,
to realize the coverage of nationwide cities and the grid-based deployment of the ecosystem abroad. Effectively support the local delivery of proj-
ects, improve the delivery efficiency and timeliness, reduce the delivery cost, relieve the labor shortage of the company, and set the technical and
delivery personnel from a large amount of small and medium projects.
Currently, more than 600 domestic companies have signed a contract for the ecosystem and more than 200 overseas service providers have
signed a contract. The ecosystem has realized 100% coverage of cities in China and grid-based deployment abroad. More than 5000 orders have
been assigned from the service ecosystem, which effectively supported the delivery of and services for more than 1000 projects. The ordinary
response time of the business process based on the service ecosystem is within 24 hours, which can effectively ensure the timely and efficient de-
livery of businesses.
49
Environmental Protection, Carbon Emission
12
Reduction and Green Development
Environmental Protection, Carbon Emission Reduction and Green Development
Innovation-driven Approach to Green Development
Innovative development and global layout based Continue to meet customer demands and under-
on environmental protection take global social responsibility with courage
As the global industry leader, Dahua is committed to improving the Attach great importance to the sustainable co-development of human and
overall competitiveness of the enterprise through continuous invest- environment. In the process of global market expansion and business
ment and cultivation of technological innovation power. While focusing upgrade, observe strictly with various national and regional environmental
on technological innovation, Dahua takes environmental compliance laws and regulations, international conventions, and diversified customer
as one of the five major compliance baselines of products and also demands for environmental protection, improve customer's comprehen-
the important foundation for business operation. The Company makes sive service ability, and ensure product compliance. Minimize the adverse
unremitting efforts to satisfy customer demands with high-quality impacts on environment and human health while making profits to be
products and services. In the process of active exploration of the accountable to shareholders and assuming legal responsibility.
overseas market, Dahua continues with its global layout by utilizing its
comprehensive advantages in technology research and development, Explore the green value system and improve the
project design, service support, and green operation, further realizing
its green expansion and business upgrade in the global market.
efficiency of environmental compliance
Dahua is always committed to environmental protection and produc-
tion of green products. While focusing on providing quality products
Environmental Guideline and services, Dahua introduced and established environmental and
Advocate green intelligent Internet of Things and occupational health management system, and hazardous substances
lead the innovative development of environmental process management system, to safeguard employee health, protect
environment, produce green products, and minimize the adverse
protection impacts on environment from production activities, fully assuming
Advocate green policy and set up green mechanism to comprehen-
its social responsibility of green and sustainable development. In
sively improve the environmental awareness of employees and sup-
the meantime, Dahua actively explores and experiments in effective
pliers. Incorporate environmental protection requirements into product
environmental control schemes, as well as set up green product man-
research and development, design, manufacturing, and intelligent
agement platform (GPM) to make green production and hazardous
Internet of Things solutions, promoting research and development of
substance management intelligent and informatized, so as to improve
green technologies, and ensuring the continuous and effective opera-
environmental compliance efficiency on the premise of meeting the
tion of the hazardous substances process management system during
needs of environmental risk management and control Dahua thorough-
full range industry penetration and expansion, so as to practice green
ly identifies relevant laws and regulations of environmental protection
manufacturing and lead green development.
at home and abroad, and actively promotes environmental protection
education covering all employees and the whole supply chain.
Environmental Compliance Management System
Green Innovation Consciousness/Environmental Compliance Management System
By establishing the Hazardous Substances Process Management System (HSPM) and the green certification scheme, Dahua has strictly followed
the requirements of QC080000 the Hazardous Substances Process Management System Standards and made active approach to offer sufficient
response to the regulations of the use of hazardous substances in electrical and electronic products required by customers in the global market
represented by the European Union and other environment protection related regulations, fully implementing the end-to-end environmental compli-
ance business requirements. The operation of the system adheres to the practical and realistic principle, and the management and control proce-
dure is systematic and standardized in coordination with Green Product Management (GPM) platform, enabling the upstream and downstream to
be synchronous, transparent, and efficient.
Training and
Supplier Approval Raw Material Manufacturing Finished Product
Contract review Document Exception Handling
Input Management
Management Quality Process Monitoring Quality
Output
Supported
Internal Operation
stance Restriction Requirements
Audit
Dahua General Hazardous Sub-
Internal Audit
Project set-up PDR ADR LDR
CDP
(Launch)
Concept Design and Planning Development and Test Verification and Release Life Cycle Management
Management Review
Review TR1 TR2 TR3 TR4B TR4 TR5 TR6
First Batch Small Batch +
Market Demand Overall Design and Prototype Engineering Life
Analyze Import Design Planning Machine Demo Machine
Trial
Production
Mass Production
Release
Cycle Data Analysis
Data Analysis
Leadership Performance
Planning
Function Evaluation
Internal Audit
Management Continuous Management
Planning improvement Review
Data Analysis
Improvement
50
12
The environmental compliance management team of Dahua is a cross departmental organization led by senior manag-
ers, and is responsible for dealing with environmental protection issues in business activities and formulating sustain-
able environmental policies and medium and long-term reduction objectives.
Environmental Compliance Group: Responsible for following up the interpretation, update, process transformation,
management and implementation of all environmental regulations and requirements, as well as regularly reviewing the
Environmental com- suitability of environmental compliance management policies and making timely adjustments when necessary.
pliance manage-
Procurement, supply chain and other departments: Responsible for the formulation and implementation of the overall
Environmental Protection, Carbon Emission Reduction and Green Development
ment organization
requirements for environmental compliance of suppliers, carrying out relevant business activities in strict accordance
with the requirements, and identifying environmental protection risks in time.
In addition, Dahua has established a unified business interchange window for environmental compliance to connect
with external environmental compliance requirements, suppliers' technical support, and internal process management
consulting as the supplement to the compliance management system.
According to the identified domestic and overseas regulations and standards, including RoHS, REACH, CA65, PAHs
and other representative environmental protection requirements, DH QP 055 Dahua General Hazardous Substances
Restriction Requirements have been formulated. These requirements are synchronized internally and externally in the
Green design of Suppliers' Portals and supplier quality agreements.
products
In the early stage of product design and production, relevant regulatory requirements should be fully identified. Also, as
one of the input requirements for the design and production of Dahua's own products, it is necessary to meet relevant
requirements, such as the limit of hazardous substances.
Each material in the material management system has its independent environmental protection property/ label (includ-
ing finished products). In addition to providing the necessary RoHS inspection report and completing REACH sub-
Environmental stance declaration requirements, material introduction shall carry out sampling inspection by the third party according
protection proper- to the environmental protection risk level.
ties of materials and The environmental protection label of finished products is convoluted by the material BOM and bound to the sales area and
products target customers in the CRM sales system. Ordering of products that do not meet the environmental protection requirements
is restricted by the system to ensure compliance with the relevant policy requirements of the company's product compliance
and trade compliance, and ensure the smooth global delivery of products in terms of environmental compliance.
Supplier environmental protection requirements: In order to be included as official suppliers, all suppliers shall be
inspected by SQE, procurement, and R&D on the site for supplier environmental protection review and sign EHS and
Environmental Protection Commitment when being introduced into the supply chain. The on-site inspection includes
Supply chain intro- but is not limited to whether environmental protection management requirements of raw materials, and consumable
duction materials applied in the manufacturing process and key technologies meet the environmental protection requirements,
and environmental and the implementation of other internal environmental protection management process of the supplier.
protection risk iden-
tification Supplier introduction: The review group, composed of Procurement, R&D, SQE, and other departments, shall grade the
assessment requirements, including environmental compliance requirements, according to the classification of suppli-
ers, which can be included in the supplier system after passing the review. All suppliers are required to sign and comply
with the relevant provisions of EHS and Environmental Protection Commitment in the Supplier Quality Agreement.
The Company independently developed the Green Product Management Platform (GPM), an environmental protection
Environmental pro-
system, forming an environmental compliance management mechanism from the material source. Trigger the update
tection information
mechanism: Update the environmental protection information of the materials which are still in mass production and
update
delivery every two years. Compliance declaration mechanism: Establish compliance declaration procedure based on
and self-declaration
different regulations to complete the collection and confirmation of substance information and compliance status.
In 2018, Dahua founded a professional chemical analysis laboratory and put it into use to undertake the detection of
components in hazardous substances and other testing and analysis for the environmental protection of internal products,
as well as the verification of the environmental compliance for incoming material after mass production and delivery.
Chemical analysis Testing capability coverage: The chemical analysis laboratory conducts physical testing and chemical testing, which
laboratory is mainly composed of XRF (X-ray fluorescence spectrometry), GC-MS (gas chromatography-mass spectrometer),
and other core devices. The experiment operators can only operate after receiving a series of training in standards,
operation, and safety awareness, and passing the examination. Meanwhile, in order to ensure the continued accuracy
and effectiveness of internal test results, it is required to tighten internally the standard limit requirements, increase the
quality control samples, and irregularly carry out the blind sample comparison tests in third-party laboratories.
Environmental
protection sampling
On the premise of full assessment of the environmental protection risks of materials, Dahua has developed an efficient Environmental Compliance Management System
sampling inspection mechanism for incoming materials. Meanwhile, Dahua has conducted environmental compliance
inspection and
monitoring of the processes of high risk and relevant consumables in the production process to eliminate environmental
control of critical
compliance risks of mass production to the greatest extent.
process (CCP)
Internal and external environmental compliance standard libraries have been established respectively, trainings on
Improvement of
management requirements have been carried out for relevant employees in the environmental compliance manage-
environmental com-
ment system, and the education on external suppliers has been reinforced, so as to jointly enhance internal and exter-
pliance awareness
nal environmental compliance awareness.
Dahua will review the environmental protection objectives set every year, including material introduction, signing of
environmental protection agreement by suppliers, achievement rate of sampling inspection, qualification rate of envi-
ronmental protection quality, customer satisfaction, reduction achievement progress and other environmental indica-
tors, which will be included in the performance appraisal, and has established the HSPM management system review
mechanism.
HSPM management system review mechanism: By combining the Hazardous Substances Process Management
Green sustainable System with the Quality Management System, Dahua formulates its annual internal audit plan, conducts cross-depart-
management mental audit by professionally trained auditors, and fully verifies the effectiveness of the system operation.
Internal auditor team: In strict accordance with the Environmental Compliance Management System QC080000:2017,
the internal auditors conduct internal review and regular management review every year according to the review plan
and correct the non-conformance items and items to be improved. At present, Dahua has more than 40 qualified inter-
nal auditors in the field of environmental protection with certificates, and they are distributed in horizontal departments
at all levels. 51
12
Green Product Management Platform (GPM platform)
The Green Product Management Platform (GPM) is a cross-platform IT system independently developed by Dahua Technology, dedicated to more
Environmental Protection, Carbon Emission Reduction and Green Development
effectively and comprehensively managing the green pro-environment features of products. This tool has fully realized the transition from the pre-
vious passive, manual and fragmented environmental protection management to an intelligent and open environmental management platform fully
integrated with existing business processes, greatly promoting the standardization and systematic process of environmental protection design,
avoiding negligence caused by manual operations, improving the efficiency of green product management, reducing the risk of excessive harmful
substances in products, lowering management costs, and enhancing customer satisfaction.
Product
Develop- Business Opportunity Design, Development and Verification of Designs Manufacturing Product Life Cycle (PLC)
ment
Environmental Quality
Demand Management Visualized Data Integration Customer Support
GPM Green Product Management Platform
Management
Data interaction
Component BOM convo- Change Supplier approval Customer environmental
Collection of regulations Material
identification lution management management protection agreement review
import
Diversified customer demands Sampling Regular sampling inspection Online environmental
for environmental protection Regulation inspection of chemical substances protection declaration
trend PLM for incoming materials
update Basic
Industry-specific environmental Compliance information
requirements database Disposal process for output
Online abnormal incoming environ-
substance mental goods
Compliance infor- Reports and
Dynamic tracking declaration Technical documentation
mation update statistics
delivery
EBS
SCP
Substance declara-
Data update process
Environmental
Data interaction OA
tion process knowledge base
In the report period, Dahua established a new green manufacturer identification procedure to further refine the hierarchical management of sup-
pliers, which improved the maintenance efficiency of environmental protection data by 20%. At the same time, the second phase optimization and
reconstruction of the supplier portal of Green Product Management (GPM) platform was carried out to realize the fully automatic triggering of the
substance declaration process, efficiently collect the information of all substances, and convolute, summarize and connect with the external decla-
ration system, so as to meet the requirements of REACH regulation and SCIP notification.
Green Product Management (GPM) Platform/Product Environmental Protection Quality Assurance and Certification
Environmental Protection Assurance and Certification
for Products
Dahua adheres to comprehensive management of hazardous substances from the source of upstream materials. Based on the comprehensive
assessment of environmental protection risks of manufacturing process and raw materials, Dahua continuously updates and optimizes basic environ-
mental protection and hazardous substance information combined with internal whole-process environmental protection management based on life
cycle. Meanwhile, Dahua horizontally expands environmental certification requirements in order to achieve overall environmental compliance of prod-
ucts. Hereby transfer the uncertain environmental protection risks from the single result demonstration to process management to improve the man-
agement capabilities of all environmental protection processes to the greatest extent, and continuously reduce the environmental compliance risks.
In the report period, more than 40,000 kinds of raw materials used by Dahua were provided with RoHS data. Data beyond the validity period of Dahua
have been continuously updated, with more than 8,000 copies updated in 2021. The RoHS sampling inspection pass rate of self-developed products
exceeds 99%, and the REACH declaration coverage of various material types reaches 100%. At present, the SCIP declaration for thousands of prod-
uct models sold in Europe has been completed. The overall recovery rate of WEEE (Waste Electrical & Electronic Equipment of European Union)
products has reached 80%, exceeding the standard requirements by more than 10%. According to 2021 internal audit, the Hazardous Substances
Process Management System (HSPM) has been running well. There are no major non-conformance items, all relevant processes and management
measures have been operated effectively, and there are no recalls or customer complaints caused by abnormal product environmental compliance. In
terms of environmental compliance management, Dahua has received IECQ QC080000: 2017 Hazardous Substances Process Management System
Certification. Moreover, it has also received green product certifications, such as Five Star Certificate of Green Supply Chain Assessment, China Envi-
ronmental Labeling Certification (Type I), and the title of "China Environmental Labeling Outstanding Enterprise".
In the report period, Dahua China newly obtained China Environmental Labeling Certification (Type I) for 452 monitors, 80 high-performance com-
puter products and 536 server products, and passed QC080000 third-party supervision and audit again with zero inconformity.
QC080000 Green Supply Chain Green Factory Type I Type II China Certifica-
Certification Five Star Certificate Certification China Environmental China Environ- tion of Environ-
52
Labeling Certifica- mental Labeling mental Products
tion Certification CCEP
12
Packaging Material Management
Following the principles of lightweight, recyclable and sustainable, all packaging materials used by Dahua including paper, plastic, wood and met-
Environmental Protection, Carbon Emission Reduction and Green Development
al, as well as auxiliary materials such as packing straps and tapes, are regulated for hazardous substances according to the requirements of the
EU94/62/EC Packaging and Waste Packaging Directives to ensure that the total content of lead, mercury, cadmium, and hexavalent chromium
therein does not exceed 0.01% (100 ppm). Carton products shall strictly follow the relevant requirements of GBT 39084-2020 Green Product As-
sessment-Packings for Express Service.
Material Recovery Recovery classification (2021) Unit Quantity
Dahua implements the concept of "green development", vigorously
develops reverse logistics. By setting up the management department Stainless steel KG 23470
for returned products, the Company has formulated Scrap Process, Sell
Off Process, Management Specifications for Selling off Scrap Materials Board without components (includ-
and Material Recovery Management Process to carry out centralized KG 23098
ing offcut and cross-board)
processing of returned products, so as to promote the recycling and re-
use of materials and improve the utilization value of scrapped materials Wave soldering slag KG 19196.35
through scheme evaluation, renovation, processing and selling off.
Cable KG 18431.3
In 2021, in order to strengthen the business compliance operation
and improve the recovery efficiency, Dahua developed the returned Steel mesh KG 11593.4
products management platform. The business development mode
was thus transformed from the traditional mode to digital information Power supply KG 6221.1
management. With the online management of material return, material
receiving, treatment scheme evaluation and implementation, the visual Copper clad plate
KG 4610
traceability of the whole process was realized. At the same time, by (without components)
digging deep into data, the Company managed to reduce returned
Motor KG 3843
products from the source, further reducing environmental pollution,
waste generation and operating costs. The recovery rate of returned
Manual solder slag KG 2191.07
products reached 37% in 2021.
Copper wire KG 1928
Display screen larger than 30 inches Piece 1151
Electroless Au plated board
KG 1099
(without components)
Returning of material Battery KG 1072.2
While reviewing the return request
Review the return schemes
PCBA with component KG 1040
Fan KG 489
Display screen smaller than 30
Piece 370
inches
Data informatization Material receipt Chip KG 280
The whole process of return, receiving, Receive, count and record accord-
scheme evaluation and material pro- ing to the Receiving Process of
cessing is managed on the platform, Returned Products Waste solder paste tank KG 239.85
making the business process transpar-
ent, compliant and traceable.
Green Packaging Design
The packaging design of Dahua adheres to the principles of normal-
ization, lightweight, green and recyclability. Dahua promotes energy
conservation and consumption reduction in the upstream and down-
stream of the packaging industry chain, realizes standardized and
intelligent packaging design, reduces the use of packaging materials
Packaging Material Management
Solution implementation Solution evaluation and the proportion of plastic applications, and improves the utilization
According to the treatment solution, According to the Returned Prod- of storage and transportation space through technological innovation
materials are recycled and handed ucts Treatment Process, profes- and design innovation.
over in strict accordance with the Man- sional evaluation and specific
agement Specifications for Selling off treatment solutions are provided
Scrap Materials, so as to realize the for returned materials from the Standardized design of packaging
traceability of the process. perspectives of product quality, life Based on product characteristics and packaging requirements, Dahua
cycle, and demand, among others. makes full use of the effective capacity and loading weight of logistics
transportation tools and storage space to promote the design of stan-
Production material recovery list: dard packaging box. Based on the size of logistics module, 30,000
standard packaging specification data are designed and divided.
Combined with the actual product application requirements, about
600 specifications of outer packaging boxes previously used are uni-
Recovery classification (2021) Unit Quantity fied and designed into about 90 specifications of standard logistics
packaging boxes, reducing the specification types of outer packaging
Iron KG 227442.1
boxes by 85%, promoting the concentration and standardization of
Waste tray KG 140501 production processing, improving the reuse rate of outer packaging
boxes and reducing the loss caused by dull packaging boxes with cus-
Aluminum KG 87460 tomized specifications. At the same time, since the standard boxes are
suitable for pallets, shelves, containers, etc., the utilization of storage
Plastics KG 71938.6
and transportation space has been greatly improved, making the box- 53
es also suitable for mechanized and automatic loading and unloading.
12
Design of EHS ecological pallet with paper re-
placing plastic
The self-developed EHS ecological pallet with paper replacing plas-
tic is a light-weight, high-strength, moisture-proof, impact resistant,
environment-friendly paper tray created through combining the de-
Environmental Protection, Carbon Emission Reduction and Green Development
velopment of high-strength paper foot pier, new material composite
technology, coating infiltration moisture-proof technology and other
technologies. For the products delivered by one-time pallet, the use
of paper to replace plastic and wood (pallet) has been realized, which
improves the recycling and degradability of packaging, reduces weight
by more than 50%, and lowers energy consumption in production.
Development and application of new film com-
posite packaging technology
The innovative self-developed new film composite packaging technolo-
gy has applied the combined structure of high-strength new material film
and paperboard to the packaging of electronic products. By utilizing the
100% recyclable green environment-friendly materials, a new packaging
business format as well as an automatic production technology have
been created. The technology can provide products with green and
sustainable overall packaging solutions with high protection, high reuse, Design of reusable turnover box/pallet
high environment-friendliness, easy processing packaging easily fit into Durable turnover boxes are used for the turnover of materials (parts)
containers, which can partially replace the traditional inner buffer pack- from suppliers and materials in the park, and recycled at the suppli-
aging. The reduced structure design can reduce the use of packaging er's end and in the park. The turnover boxes come in five standard
materials by 40%, increase production capacity by 30% and improve specifications. When the empty boxes are recycled, their space sizes
the utilization of storage and transportation space by 50%. Dahua is are fully used for nesting and stacking, so as to improve the utilization
committed to practicing the low-carbon concept through technological rate of storage and transportation space and reduce the loss of paper
innovation. The innovation has solved the problems of normalization boxes. The finished materials in the production park are transported
and lightweight in the packaging industry to a certain extent, greatly and stacked with plastic pallets. The plastic pallets are light, impact re-
improves the environment and safety of packaging production, and sistant, recyclable and convenient for container loading and unit trans-
plays a positive role in promoting energy conservation and consumption portation. There are about 80,000 plastic pallets in the park. Replacing
reduction in the packaging industry chain, reducing resource consump- paper pallets with them can save about 128 tons of paper every year.
tion, promoting the green transformation and upgrading of the traditional
packaging industry, and improving the level of intelligent manufacturing.
Energy Management
Packaging Material Management/Energy Management
Dahua takes energy saving and consumption reduction, and maximization of benefits as its core objectives, adheres to the sustainable devel-
opment concept of low energy consumption, low emission, and recycling, comprehensively plans and implements energy saving and emission
reduction from a strategic perspective of long-term development. Through the improvement of management, technology progress, and industrial
structure adjustment, Dahua has achieved continuous and reasonable reduction of overall energy consumption, provided comprehensive benefits
of energy saving and emission reduction, and recycling economy, and maintained continuous improvement. Dahua has established a favorable
social image of observing laws and disciplines and became the benchmark of energy consumption. The Company is dedicated to making greater
contribution to promote the development of the enterprise and the common development of local economy. During the reporting period, Dahua has
always insisted on the sustainable development concept, and energy saving and consumption reduction to promote intelligent production aiming
to build the green and intelligent factory. In order to enable the Company to follow the principle of continuous improvement of energy performance
and the systematization of energy management system, Dahua has established an energy management system and formulated Energy Review
Management Procedure. All departments shall compile Identification Table of Energy Management Factors according to the actual situation, im-
plement the responsibility system for energy consumption reduction, and regularly invite qualified third party to identify and check energy manage-
ment factors. We propose to post energy saving and consumption reduction signs in the park, advocating "Achieve multiple use of water to reduce
waste from the source", "Save energy by turning off lights to reduce residential electricity consumption", "Promote double-sided printing to reduce
waste from the source", and "We are in action for low carbon service". In addition, the Company also proposes to carry out multiple energy saving
and consumption reduction projects, aiming to build a green and intelligent park.
Dahua Technology has adopted a series of energy management measures to define energy-saving controls over the entire consumption of energy
such as electricity and natural gas in the main production process, supporting production process and auxiliary production process. A decision sys-
tem based on objective data is established to comprehensively and meticulously improve energy efficiency from the macro to the micro, manage-
ment to implementation. Refined energy management is practiced to further enhance energy management and reduce production and operation
energy consumption.
54
12
Energy Reservation and Consumption Reduction suggestions to gradually carry out the renovation, which has made
outstanding achievements.
Power and Environment Supervision System
In addition to the basic functions of electricity and gas consumption me-
1. Intelligent power transformation of air conditioning: Based on the
tering, billing, and statement analysis, the system also provides online
national strategy of "carbon peak and carbon neutrality", the energy ef-
real-time monitoring of energy consumption, energy consumption diag-
Environmental Protection, Carbon Emission Reduction and Green Development
ficiency improvement solution was implemented in the Intelligent Park.
nosis and analysis, and other functions to offer comprehensive energy
An intelligent air conditioning energy-saving system was established
consumption management to managers, improve the efficiency and
by utilizing the air conditioning network management and intelligent
level of energy consumption management, and reduce operation cost.
IOT integrated management platform to reduce the power cost.
Energy Control Center 2. Transformation of precision air conditioning: The outdoor unit of
It includes the functions used by the energy consumption detection precision air conditioning was changed from manual water cooling to
system and facilitates the reduction of energy cost and the estab- automatic temperature-controlled cooling and heat dissipation to save
lishment of a decision-making system based on objective data, and energy and reduce consumption.
provides users with more in-depth functions and services from energy
saving control and energy consumption management. 3. The 125W mercury lamp bulbs are replaced by 46W LED bulbs.
The Company enables functions such as electricity and gas energy The lighting of garage, passageway, hall, elevator hall, and stairway
consumption metering and billing, report analysis, constant online have been divided into lighting for the day time and night time. The
monitoring of energy consumption, and energy diagnosis and anal- number of lamps used has been reduced as much as possible on the
ysis, providing managers with comprehensive energy management premise that the overall lighting requirements and complete and order-
services, to improve their efficiency and level of energy management ly style can be ensured.
and reduce operation and maintenance costs. The monitoring and
measuring equipment required for energy management are calibrated 4. The 1KW high-voltage mercury lamps originally installed in the
and maintained in accordance with the Monitoring and Measuring basketball court and football field are replaced with 500W LED lamp.
Equipment Control Procedures, and relevant recorded shall be saved, The Company has strengthened the patrol inspection of high-power
to ensure that the data provided by the equipment for monitoring key electromechanical equipment to ensure the motor is in good operation
features is accurate and reproducible. to improve efficiency. Increase the maintenance of control equipment,
As an industrial enterprise, the company accounts a relatively large reduce the number of overspeed shutdowns of high-power equipment,
proportion in energy consumption. Dahua shall focus on strengthening and reduce power consumption.
energy management, fully tap into enterprise's potential in energy-sav-
ing and emission-reduction, and effectively improve resource utiliza- 5. Do a good job in repairing old parts and reusing the waste. Repair
tion, so as to put energy saving and emission reduction into practice the replaced items such as documents, lamps, and ballasts. Reduce
Dahua has conducted thorough investigation on the public electrical the use of new parts through repairing old parts by replacing compo-
devices and facilities, formulated energy-saving renovation plans or nents or reassembling.
Type of Volume Achieved Volume Achieved
Unit Consumption in 2020 Consumption in 2021 Assessment Item Unit
Energy in 2020 in 2021
Electricity ℃ 51583003 78411334 Comprehensive en-
ergy consumption per kgce/RMB 10k 3.54 3.48%
Natural gas 10k m3 919163 1040392 10K yuan output value
Comprehensive elec-
Gasoline L 43636 34316 tricity consumption per kgce/RMB 10k 2.82 3.00
10K yuan output value
Diesel oil L 26569 42955
Comprehensive en-
ergy consumption per kgce/10k units 1702.25 1294.97
10K units of product
Comprehensive elec-
tricity consumption per kgce/10k units 1306.53 1115.7
10K units of product
Energy Management/Water Management
Water Management
Dahua Technology has established a strict water management system in accordance with the production process and relevant local laws, regu-
lations and standards, to use water in a scientific and rational way, and improve the efficiency of water utilization comprehensively. The Company
actively adopts advanced water-saving technologies, selects water-saving equipment and appliances, installs water-saving and spill-proof devices,
to reduce water consumption and increase the reuse rate of water resources. Meanwhile, the Company also actively advocates the water-saving
culture and creates the water-saving atmosphere, to further strengthen the conservation of water resources.
The Company starts with staff awareness by training all its new and old employees on water-saving awareness and methods, and continuously
promoting energy saving and emission reduction within the Company. In the meanwhile, designated persons are assigned for patrol so that any
problem once found can be rectified in a timely manner. The wastewater of the Company is mainly domestic sewage and the canteen oily waste-
water is discharged to the municipal water pipe network after being treated in oil separation tanks according to the Integrated Sewage Discharge
Standard. The discharged water body is annually detected and analyzed by the Binjiang Water Quality Analysis and Monitoring Station, and all
indicators turn out to meet the relevant national standards.
Type of Water Total Consump- Total Consump-
Unit
Resource tion in 2020 tion in 2021
Municipal water Ton 545530 790857
55
12
Emission Management
Dahua Technology is a high-tech research and development enterprise, and uses international advanced equipment and technology for produc-
Environmental Protection, Carbon Emission Reduction and Green Development
tion. Its workshops are equipped with exhaust systems to collect waste gas uniformly. Testing agencies regularly conduct on-site inspections and
output the Industrial Exhaust Gas Inspection Report, showing that all indicators have met national relevant standards. Dahua has installed fume
purification devices certified by the environmental protection department to deal with oil fumes from canteens, which is fully processed before be-
ing discharged.
The measures adopted by Dahua to eliminate pollution sources are in accord with industrial policies, and clean production requirements. The
pollutant emission meets the corresponding national standard Therefore, the quality of the environment is not affected, and the ecological environ-
ment will not be changed.
Oil-smoke and noise detection; Wastewater detection;
Solid Waste Management
Dahua has specifically formulated the exclusive site management system for hazardous wastes and account management system according to
Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste to ensure the reasonable, stan-
dardized, and effective management of hazardous wastes.
Discharge Management/Solid Waste Management /Hazardous Chemicals Management
Hazardous Wastes Unit Total in 2020 Total in 2021
Total disposal amount of hazardous waste Ton 8.56 52.4
Hazardous waste disposal density Ton/million revenue 0.0004
Hazardous Chemicals Management
According to relevant regulations, such as Safety Regulations on the Control of Dangerous Chemicals and Directory of National Hazardous
Wastes, Dahua formulated Management System of Hazardous Chemicals and Regulations on the Management of Warehouse Chemicals to stan-
dardize the daily safety management of hazardous chemicals, so as to reduce the risk of environmental safety and ensure the personal safety of
employees.
Supplier management: Dahua signs safety management agreement with suppliers and transportation units of hazardous chemicals, verifies their
qualification certificates (including Hazardous Chemicals Business License and Hazardous Chemicals Operator Certificate, etc.), and keep the
copies in record.
Storage: The Company has set up independent warehouses for hazardous chemicals. In addition to the original basic explosion-proof electrical, it
carried out explosion-proof transformation, added explosion-proof boxes and explosion-proof combustible gas detectors for the hazardous chemi-
cals warehouses, and passed explosion-proof, lightning protection and anti-static tests by third-party professional organizations in the report peri-
od. The warehouse keepers of hazardous chemicals were required to hold the Certificate of Hazardous Chemicals Management Personnel issued
by the Emergency Management Department and do a good job in stocking in and stocking out strictly following the management requirements of
the government and the company.
56
12
Usage: The explosion-proof cabinets in the production workshops are positioned at fixed points, MSDS signs are posted, ventilation and elec-
trostatic grounding effectiveness are maintained, and operators are trained on the safety knowledge of hazardous chemicals regularly. Damaged
warning signs are replaced regularly every year, and Operators are required to correctly wear labor protection equipment that meets MSDS re-
quirements. The workshops are equipped with eye washer, chemical absorbent cotton and other emergency materials.
Treatment: Independent hazardous waste warehouses have been set up. Hazardous wastes are classified and collected in strict accordance with
national requirements, and are treated by qualified third-party organizations entrusted on regular basis.
Environmental Protection, Carbon Emission Reduction and Green Development
Explosion-proof transformation Workshop hazardous Working With Certificate
chemicals management
Clean Technology and Applications
Dahua always adheres to the responsibility of protecting the environment and practicing green development. In the report period, the Company
actively carried out innovative green design for products, reduced product energy consumption and promoted green expansion and business up-
grading in the global market through clean technologies.
Clean technology products (single product clean technology application)
Surface spray-free technology
Through the optimization of functional characteristics and on the premise of maintaining
product performance, some spray-free materials have been adopted, and the spray-
ing process has been canceled for some materials, so as to reduce the environmental
pollution caused by the spraying process. Based on the annual production capacity of
3 million units, 257,400 kW-hr of electricity can be saved and 102.96 tons of standard
coal combustion can be decreased, reducing carbon dioxide emission by 256.63 tons,
dust emission by 28.01 tons, sulfur dioxide emission by 3.09 tons, and nitrogen oxide
emission by 1.54 tons.
Small-space LED screen and controller
Hazardous Chemicals Management/Clean Technology Application
In the product design of small-space LED display screen, energy saving and cooling
are considered from the aspects of LED lamp beads, driving chip, driving circuit design
and driving control mode. Flip chip, common cathode, high integration, dynamic energy
saving and other technologies have been adopted to improve the luminous efficiency. At
the same time, the controller detects the ambient light intensity through photosensitivity
and adaptively adjusts the brightness of LED screen, which not only improves the view-
ing sensory experience, but also reduces the product energy consumption, Finally, the
energy consumption of the whole product is reduced by 60% compared with the original
product.
LED fill light
By replacing high-power stroboscopic fill light with low-power dim fill light, low-power fill
light can be achieved while the light only flashes to provide fill light when capturing pic-
tures, reducing power from 50W to 15W and saving energy by 70%.
Second generation face recognition equipment
Screen is adopted to provide fill light instead of the traditional white light, which reduces
the white light pollution of the equipment and the overall power consumption. According
to the estimated annual sales volume of face equipment, the face equipment produced
every year can save about 10,000 kW-hr of electricity for the world.
57
12
Clean technology products (single product clean technology application)
Intelligent air switch
Real-time alarm and emergency power-off protection can be carried out for integrated
power consumption detection, control module, as well as real-time monitoring of voltage,
current and temperature by providing energy consumption data, so as to support intelli-
gent power consumption and reduce energy consumption while ensuring power safety. It
Environmental Protection, Carbon Emission Reduction and Green Development
can be adapted to a variety of energy-saving power solutions. For example, in the intel-
ligent lighting system, where dynamic lighting mode is adopted, with the time fragmenta-
tion and independent energy saving, the energy-saving rate can reach up to 70%.
Low power consumption monitoring system scheme of solar power supply
Solar energy is converted into electric energy through photovoltaic panels and stored in
lithium batteries to power the monitoring system. Video data is transmitted through 4G
network to provide a complete set of clean and pollution-free monitoring system solutions
for remote areas where power supply and network wiring are difficult. Low power design
is adopted to support normal operation in continuous rainy days; Power is collected in
real time to realize video superposition, and the battery power is clear at a glance; The
scheme supports all 4G networks and can realize the remote wake-up through SMS,
which is not only power-saving but also convenient to operate.
Security Practices
In order to effectively maintain normal operation order of the park, and ensure property interests, personnel safety and R&D safety at the park, Da-
hua Technology has established Security Rules and Regulations based on Regulations on the Supervision and Inspection of the Internal Security
and Safeguard for Enterprises and Public Institutions by Public Security Organizations, Regulation on Internal Security and Safeguard for Enter-
prises and Public Institutions, and others. The main contents include:
1. Regulations: Security guard responsibility, duty system, handover system, and rewards and punishments system;
2. Security guard manual;
3. Emergency response of security guard;
4. Service courtesies and more.
Clean Technology Application/Security Practice /Safety Management Monitoring System
Safety Management Monitoring System
Safety management system is an important branch of safety governance. Based on the “five elements” of people, machine, material, environment,
and management, a safety management system for park safety is established in compliance with requirements such as safety standardization and
EHS, offering real-time, highly integrated, and classified management and enabling timely warning of dangers to quickly locate the exception and
reduction the scope and level of dangers.
The Company strives to make the park highly efficient, intelligent-controlled and safe. In 2021, the park was selected as the "Safety Demonstration
Unit" of 2019-2020 by the "Safety Creation" Leading Group of Hangzhou Municipal Party Committee. In the process of pandemic prevention and
control, we improved the management through intelligent means such as smart apartment management system and smart park comprehensive
management platform, so as to achieve accurate pandemic prevention.
1. Intelligent elevator control system:
The system can realize online personnel identification management, active identification of trailing and blacklist alarm, background log query and
anomaly monitoring.
2. Smart apartment management system:
Combined with the characteristics of the park, the system can handle check-in and check-out online in batches, and delicately manage dormitories
and beds. Through the linkage of all-in-one human-ID card machine and entrance and exit gate machine, the safety of employees is ensured. Es-
pecially during the pandemic and special periods, close contacts can be screened out and personnel in temporary quarantine can be monitored.
3. Integrated security and fire protection management system:
Nearly 8,000 points in the park, including detection points, water tanks and liquid levels, are effectively monitored. Abnormal power consumption is
effectively monitored to eliminate the potential safety hazards of power consumption. Through the cooperation with ICC, visual monitoring on the
key fire control areas is achieved
4. Smart park integrated management platform:
Elevator control, apartment management, integrated security and fire protection management, energy management, access control, gate, vehicle
management, perimeter management and other systems are integrated to protect the safety of personnel and property in the park.
58
12
Upgraded Green Consciousness
Dahua strives to create a green, safe, and harmonious environment, since the corporate sustainable development is inseparable from the en-
Environmental Protection, Carbon Emission Reduction and Green Development
hancement of employees' environmental protection awareness. An energy-saving and emission-reduction atmosphere is created through ways
such as announcing its environmental management strategy through the corporate portal, setting up office computer screen savers to publicize
its pro-environment policy, releasing energy conservation and consumption reduction initiatives, optimizing equipment operating parameters, and
setting up energy-saving and consumption-reduction administrators, to help employees improve their awareness of environmental protection in a
subtle way, and enable employees to work in a robust and sound environment. Dahua Technology also attaches great importance to jointly fulfilling
corporate social responsibility with its supplier partners. While promoting green sustainable development, it also drives the supply chain to jointly
contribute to the sustainable development of society.
In the report period, Dahua has established a highly professional library of environmental protection laws and regulations, a universal library of
internal standard cases and a document library of related external suppliers. At the same time, Dahua learning platform pushed learning plans
and examinations for more than 6,000 employees in environmental compliance-related posts, forming a systematic publicity channel fully covered
by the multi-dimensional closed-loop of "three libraries and one examination", so as to convey the rigorous concept of environmental compliance
of Dahua internally and externally and further improve the business skills of relevant parties. Throughout the year, 13 new internal and external
periodicals were compiled and pushed and 4 sessions of special offline training for new employees and horizontal business departments were or-
ganized to further deepen the influence of environmental protection publicity.
Environmental compliance promotion journal
Introduction to
Proposition 65 (Safe National standard
O-benzene control Carbon neutrality Global RoHS Introduction to GPM
Drinking Water and VOC regulation infor-
case sharing news sharing regulation overview platform function
Toxic Enforcement mation
Act of 1986)
Environmental compliance offline training
Safety Management Monitoring System/Green Awareness Upgrading
Supplier quality training camp - Environmental Compliance and Control Requirements of Dahua
59
Appendix 1
Enterprise Honors of Dahua Technology
Name Awarding Unit
School of Management of Zhejiang University,
Zhejiang Listed Company Best Internal Control Award
the Listed Company Association of Zhejiang
2021 China ESG Golden Awards-Social (S) Responsibility Award Sina Finance
Top 100 ESG Companies in A stock Market Securities Times
China Listed Company Best Investor Relationship Award Securities Times
Evergreen Award Caijing Magazine
Zhejiang Quality Award The People’s Government of Zhejiang
Outstanding Contribution Award for Pandemic Prevention and Control Sponsored by Hangzhou Daily Newspaper Group
Top 50 Enterprises of Best Practices for
APEC China Business Council
2021 China Digital Economy Industry
Top 100 National Quality and Credit Benchmarking Enterprise China Association for Quality Inspection
Contribution Award in Combating Pandemic for International Contractors
Zhejiang International Contractors Association
in Zhejiang Province
Zhejiang Red Cross Society Special Contribution Award for COVID-19
Zhejiang Red Cross Society
Pandemic Prevention and Control
National Product and Service Quality Integrity Demonstration Enterprise China Association for Quality Inspection
National Security Industry Quality Leading Brand China Association for Quality Inspection
National Outstanding Enterprise in Quality and Credit China Association for Quality Inspection
National Advanced Enterprise in Quality and Integrity China Association for Quality Inspection
Zhejiang Enterprise Federation, Zhejiang Enterprise Directors
Zhejiang Top 100 Enterprises
Association and Zhejiang Federation of Industrial Economics
2021 China Top 100 Innovation Enterprises China Enterprise Confederation/China Enterprise Directors Association
2021 China Top 500 Enterprises China Enterprise Confederation/China Enterprise Directors Association
2021 Top 100 Enterprises in China's Strategic Emerging Industries China Enterprise Confederation/China Enterprise Directors Association
2021 China Top 500 Manufacturing Enterprises China Enterprise Confederation/China Enterprise Directors Association
Appendix 2
Sustainability Reporting Guidelines (GRI Standards) Index
Disclosure
Issue/
Standards Disclosure Item Chapter Index Page Index
Disclosure
Item
102-1 Organization Name About This Report P1
102-2 Activity, Brand, Product and Service About Dahua P4
102-3 Headquarter Location About This Report P1
Organi- 102-4 Operation Place About This Report P1
zation
Overview 102-6 Service Market About Dahua P4
102-7 Organization Size About Dahua P4
102-8 Information about Staff and Other Workers About Dahua P4
102-9 Supply Chain Supply Chain Management P47~49
102-14 Statement of Senior Decision-Maker Statement from the Chairman P3
Strategy
102-15 Key Impacts, Risks, and Opportunities Risk Management P14
Ethics and 102-16 Value, Principle, Standard and Code of Conduct About Dahua P4
Integrity 102-17 Mechanism of Ethical Advice and Concerns Ethics and Integrity P11~12
Gover- Build an Efficient and Transparent Gover-
102-18 Governance Structure P10
nance nance System
102-30 Effects of Risk Management Process Risk Management P14
102-40 Group List of Interested Party Interested Party Participation P18~19
Interested 102-42 Reorganization and Selection of Interested Parties Interested Party Participation P18~19
Party Par-
ticipation 102-43 Interested Party Participation Policy Interested Party Participation P18~19
102-44 Main Topics and Concerns Raised Focus on Substantive Issues P19
102-45 Entity Covered in Consolidated Financial Statement About This Report P1
102-46 Definition of Report Content and Issue Boundary About This Report P1
102-47 List of Substantive Issues Focus on Substantive Issues P19
Report and 102-50 Reporting Period About This Report P1
Practice 102-51 Date of Latest Report April 25, 2022
102-52 Reporting Cycle About This Report P1
102-53 Contact Information on Report Issues About This Report P1
102-55 GRI Content Index Appendix 2 GRI Standards Index P61~65
201 Economic Performance Performance Summary 2021 P2
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
Man- GRI 103：
agement Management 103-2 Management Method and Its Components Performance Summary 2021 P2
Method Method 2016
103-3 Evaluation on Management Method Performance Summary 2021 P2
201-1 Economic Value Directly Generated and Distributed Performance Summary 2021 P2
202 Market Performance Performance Summary 2021 P2
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Performance Summary 2021 P2
Method 2016
103-3 Evaluation on Management Method Performance Summary 2021 P2
204 Purchasing Practice Supplier Management P44~47
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Economy Management 103-2 Management Method and Its Components Supplier Management P44~47
Method 2016
103-3 Evaluation on Management Method Supplier Management P44~47
205 Anti-corruption Adhere to Compliant Integrity Operation P11~12
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Adhere to Compliant Integrity Operation P11~12
Method 2016
103-3 Evaluation on Management Method Adhere to Compliant Integrity Operation P11~12
Communication and Training of the Policies and Procedures of
205-2 Adhere to Compliant Integrity Operation P11~12
Anti-corruption and Anti-commercial Bribery
206 Unfair Competition Behavior Fair Competition P13
Appendix 2
Sustainability Reporting Guidelines (GRI Standards) Index
Disclosure
Issue/
Standards Disclosure Item Chapter Index Page Index
Disclosure
Item
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Fair Competition P13
Economy Method 2016
103-3 Evaluation on Management Method Fair Competition P13
Legal Actions for Anti-competitive Behavior, Anti-trust,
206-1 Fair Competition P13
and Monopoly Practices
Forging Ahead Hand in Hand,
301 Material P44~57
and Living in Harmony
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103： Forging Ahead Hand in Hand,
Management 103-2 Management Method and Its Components P44~57
and Living in Harmony
Method 2016 Forging Ahead Hand in Hand,
103-3 Evaluation on Management Method P44~57
and Living in Harmony
301-1 Weight or Volume of Materials Applied Packaging Material Management P53~54
301-3 Recovered Products and Their Packaging Materials Packaging Material Management P53~54
302 Energy Energy Management P54~55
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Energy Management P54~55
Method 2016
103-3 Evaluation on Management Method Energy Management P54~55
302-1 Energy Consumption within the Organization Energy Management P54~55
302-3 Energy Intensity Energy Management P54~55
302-4 Reduction of Energy Consumption Energy Management P54~55
302-5 Reduction of Energy Demand for Products and Services Energy Management P54~55
Water Resource Management
303 Water Resource and Sewage P55~57
and Discharge Management
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103： Water Resource Management
Management 103-2 Management Method and Its Components P55~57
and Discharge Management
Method 2016 Water Resource Management
103-3 Evaluation on Management Method P55~57
and Discharge Management
Water Resource Management
303-1 Interactions with Water as a Shared Resource P55~57
and Discharge Management
Environment 305 Emission Emission Management P56
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Emission Management P56
Method 2016
103-3 Evaluation on Management Method Emission Management P56
305-1 Direct (Scope 1) GHG Emissions Emission Management P56
305-2 Energy-related Indirect (Scope 2) GHG Emissions Emission Management P56
305-4 Greenhouse Gas Emissions Intensity Emission Management P56
306 Sewage and Waste Emission Management P56~57
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Emission Management P56~57
Method 2016
103-3 Evaluation on Management Method Emission Management P56~57
306-2 Total Amount of Waste Classified by Category and Treatment Method Emission Management P56~57
306-4 Hazardous Substance Transportation Emission Management P56~57
307 Environmental Compliance Emission Management P56~57
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Emission Management P56~57
Method 2016
103-3 Evaluation on Management Method Emission Management P56~57
308 Supplier Environment Evaluation Supplier Management P44~47
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Supplier Management P44~47
Method 2016
103-3 Evaluation on Management Method Supplier Management P44~47
308-1 New Suppliers Screened by Environmental Standards Supplier Management P44~47
Appendix 2
Sustainability Reporting Guidelines (GRI Standards) Index
Disclosure
Issue/
Standards Disclosure Item Chapter Index Page Index
Disclosure
Item
401 Employment Caring For Employees, Shaping Common Development P36~40
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Caring For Employees, Shaping Common Development P36~40
Method 2016
103-3 Evaluation on Management Method Caring For Employees, Shaping Common Development P36~40
Benefits Provided to Full-time Employees (Temporary or Part-time
401-2 Caring For Employees, Shaping Common Development P36~40
Employees Not Included)
401-3 Parental Leave Caring For Employees, Shaping Common Development P36~40
402 Employment Relations Caring For Employees, Shaping Common Development P36~40
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Caring For Employees, Shaping Common Development P36~40
Method 2016
103-3 Evaluation on Management Method Caring For Employees, Shaping Common Development P36~40
Organizational Structure for Occupational Health and
403 Occupational Health and Safety P41~43
Safety Management
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103： Organizational Structure for Occupational Health and
Management 103-2 Management Method and Its Components P41~43
Safety Management
Method 2016
Organizational Structure for Occupational Health and
103-3 Evaluation on Management Method P41~43
Safety Management
Categories of Occupational Injuries, Rate of Occupational Injuries, Organizational Structure for Occupational Health and
403-2 P41~43
Occupational Disease, Working Days Lost and Absence Safety Management
404 Training and Education Caring For Employees, Shaping Common Development P36~40
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Caring For Employees, Shaping Common Development P36~40
Method 2016
103-3 Evaluation on Management Method Caring For Employees, Shaping Common Development P36~40
404-1 Average Number of Training Hours Per Employee Per Year Caring For Employees, Shaping Common Development P36~40
Employee Skills Improvement Program and Transition Assistance
404-2 Caring For Employees, Shaping Common Development P36~40
Social Program
405 Diversification and Equal Opportunity Caring For Employees, Shaping Common Development P36~40
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Caring For Employees, Shaping Common Development P36~40
Method 2016
103-3 Evaluation on Management Method Caring For Employees, Shaping Common Development P36~40
405-1 Diversity of Governance and Employees Caring For Employees, Shaping Common Development P36~40
406 Anti-discrimination Caring For Employees, Shaping Common Development P36~40
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Caring For Employees, Shaping Common Development P36~40
Method 2016
103-3 Evaluation on Management Method Caring For Employees, Shaping Common Development P36~40
407 Freedom of Association & Collective Bargaining Caring For Employees, Shaping Common Development P36~40
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Caring For Employees, Shaping Common Development P36~40
Method 2016
103-3 Evaluation on Management Method Caring For Employees, Shaping Common Development P36~40
408 Child Labor Caring For Employees, Shaping Common Development P36~40
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Caring For Employees, Shaping Common Development P36~40
Method 2016
103-3 Evaluation on Management Method Caring For Employees, Shaping Common Development P36~40
409 Forced or Compulsory Labor Caring For Employees, Shaping Common Development P36~40
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Caring For Employees, Shaping Common Development P36~40
Method 2016
103-3 Evaluation on Management Method Caring For Employees, Shaping Common Development P36~40
Organizational Structure for Occupational Health and
410 Security Practices P41~43
Safety Management
Appendix 2
Sustainability Reporting Guidelines (GRI Standards) Index
Disclosure
Issue/
Standards Disclosure Item Chapter Index Page Index
Disclosure
Item
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103： Organizational Structure for Occupa-
103-2 Management Method and Its Components P41~43
Management tional Health and Safety Management
Method 2016
Organizational Structure for Occupa-
103-3 Evaluation on Management Method P41~43
tional Health and Safety Management
Public Welfare Activities
P25~26
413 Local Community Environmental Protection, Carbon Emis-
P50~59
sion Reduction and Green Development
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
Public Welfare Activities
P25~26
GRI 103： 103-2 Management Method and Its Components Environmental Protection, Carbon Emis-
P50~59
Management sion Reduction and Green Development
Method 2016
Public Welfare Activities
P25~26
103-3 Evaluation on Management Method Environmental Protection, Carbon Emis-
P50~59
sion Reduction and Green Development
414 Supplier Social Evaluation Supply Chain Management P47~49
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Supply Chain Management P47~49
Method 2016
103-3 Evaluation on Management Method Supply Chain Management P47~49
Professional Service and Delivery for
416 Customer Health and Safety P35
Global Customers
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103： Professional Service and Delivery for
103-2 Management Method and Its Components P35
Management Global Customers
Social Method 2016
Professional Service and Delivery for
103-3 Evaluation on Management Method P35
Global Customers
Health and Safety Impact Assessment of Products and Professional Service and Delivery for
416-1 P35
Services Global Customers
Growth of distributors/
417 Marketing and Identification P49
Development ecosystem
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103： Growth of Distributors/
103-2 Management Method and Its Components P49
Management Development Ecosystem
Method 2016
Growth of Distributors/
103-3 Evaluation on Management Method P49
Development Ecosystem
Information and Identification Requirements of Products and Growth of Distributors/
417-1 P49
Services Development Ecosystem
418 Customer Privacy Data Protection P12
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Data Protection P12
Method 2016
103-3 Evaluation on Management Method Data Protection P12
Substantiated Complaints Related to Infringement of Customer
418-1 Data Protection P12
Privacy and Loss of Customer Data
419 Social Economic Compliance Compliance Management P12~13
103-1 Description of Substantive Issue and Its Boundary ESG Management P15~19
GRI 103：
Management 103-2 Management Method and Its Components Compliance Management P12~13
Method 2016
103-3 Evaluation on Management Method Compliance Management P12~13
ENABLING A SAFER SOCIETY AND SMARTER LIVING
Follow the WeChat
account of Dahua for
more information
Zhejiang Dahua Technology Co., Ltd. │ Headquarter address: 1199 Bin’an Road, Binjiang District, Hangzhou, Zhejiang │ Stock code: 002236 │
Website: www.dahuatech.com │ Service hotline: 400-672-8166
