2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Zhejiang Dahua Technology Co., Ltd.
2022 Semi-Annual Report
August 20, 2022
This document is a translated version of the Chinese version 2022 Semi-Annual Report (“2022 年半年度报告”),
and the published annual report in the Chinese version shall prevail.
The complete published Chinese 2022 Semi-Annual Report may be obtained at http://www.cninfo.com.cn.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section I Important Notes, Contents And Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and
senior executives of the Company hereby guarantee that the information
presented in this semi-annual report is authentic, accurate, complete and free of
any false records, misleading statements or material omissions, and they will bear
joint and several liability for such information.
Fu Liquan, the Company's legal representative, Xu Qiaofen, chief accountant,
and Zhu Zhuling, person in charge of accounting institution (Accounting Officer)
hereby declare and warrant that the financial statements in the semi-annual report
are authentic, accurate, and complete.
All directors attended the meeting of the Board of Directors for deliberation of
this annual report.
During the reporting period, there was no significant change in the risks faced
by the Company. The Company has been trying to identify all kinds of risks and
actively take countermeasures to avoid and reduce the risks:
1. Risk of COVID-19 pandemic: In the face of COVID-19 pandemic, the
Company has taken strict prevention and control measures to protect the health of
employees at home and abroad. At the same time, the Company has provided
scientific and technological solutions for pandemic prevention to facilitate global
pandemic prevention and control.
2. Risk of decline in the payment capacity of local finance: The decline in the
payment capacity of local finance may lead to the slowdown in the growth of
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
industrial demand, extensions of project time, longer periods for companies to
withdraw capital, and customers' payment delay. The Company continues to
improve its internal control system, optimize the project review methods, carefully
assess risks in markets, projects, and cash flow, reasonably control risks and
make response plans.
3. Risk of international operations: The Company's products and solutions are
available in more than 100 foreign countries and regions. International business
may be exposed to the risks of trade protection in the countries and regions where
it is located. In addition, the repeated outbreak of COVID-19 pandemic around the
world has brought more uncertainty to overseas economic environment, which
may adversely affect the business development of the Company in such places.
The Company actively guards against and responds to the risk of international
operation by establishing an overseas compliance risk control system. It
continuously strengthens the understanding and adaptability of the laws and
regulations as well as the political and economic environment of the regions
where its business is involved, and formulates differentiated business strategies
based on "one country, one policy" in accordance with the changes in politics and
economy of different regions to reduce operational risks.
4. Geopolitical risk: Geopolitical risks are posing an increasing threat to the
world. Local conflicts may lead to economic downturns in some regions and affect
the business development of the Company in such locations. The Company will
timely grasp the development trend of the local political environment, make
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
appropriate response quickly, and reduce the impact of the single market by
establishing a global sales network.
5. Risk of technology upgrading: The video surveillance industry is a typical
technology-intensive industry, which is changing extremely fast. If the Company is
unable to keep up with development trends in the industry's technology, to pay
full attention to customers' diversified individual needs, and to be followed by
sufficient R&D investments, it will still face the risk of losing market
competitiveness due to discontinuous innovation. By increasing R & D investment,
the Company continues to strengthen research on core technologies in AI, video
cloud, machine vision and other fields, and reserves product, technology,
management and talent resources for a broader market in the future, so as to
achieve sustainable and steady development of business.
6. Risk of business model change: With the development of network
communications, cloud computing, big data, AI and other technologies, as well as
the upgrades of apps in smartphones, the business model in the IoT era may have
an impact on the traditional industry development. If an enterprise cannot grasp
opportunities brought about by the business model transformation in a timely
manner, it may face the risk that the original market structure becomes broken.
The Company continues to focus on and study the major changes in global
economy, industry and technology, analyze the industry development logic, and
predict the evolution of global security industry and IoT industry, the continuous
integration of video, information communication and digital technologies,
diversification and uncertainty of customer demands. While consolidating the
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
advantageous market, The Company actively explores and pilots new businesses
and new commercial mode, and carry out business and technical layout.
7. Risk of product safety: The Company attaches great importance to and
continuously strengthens resource investment to ensure safe and reliable
operations of the security system so as to respond to the product security risks
on the Internet. However, hackers attacks, computer viruses, physical security
vulnerabilities, natural disasters, accidents, power interruptions,
telecommunications failures, terrorism, and warfare events may still occur from
time to time, resulting in security vulnerabilities, system failures, or service
interruptions. The Company has founded a cyber security committee, and set up a
professional security team to develop company-level product safety plan,
ensuring product safety in whole process from requirements to design, coding,
and testing process. At the same time, the Company actively carry out technical
exchanges and cooperation with mainstream safety enterprises, safety evaluation
agencies and corresponding industry associations to provide customers with safe
products and solutions.
8. Intellectual property risk: The promotion of the Company's globalization
and self-owned brand strategy will likely bring about intellectual property risks
and patent infringement, which may cause fluctuation in business relations and
public opinions, increasing lawsuits and rising costs. The Company attaches great
importance to technological innovation and has established protection and
management mechanism for intangible assets such as innovation achievements,
self-owned brands, trade secrets, and constantly gathers advantageous IP assets;
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
With IP compliance risk control system, the Company continues to strengthen its
ability to understand and grasp the IP laws and regulations, administrative and
judicial environment of the region where the company's business is located in.
9. Risk of supply chain security: In terms of supply chain security, the
Company has identified various potential supply risks through special operations.
By making backup plans and diversifying supply sources, the Company has
strengthened the continuous and secure supply of key materials, so as to ensure
the security of the supply chain.
10. Exchange rate risk: The Company's export transactions are mostly settled
in United States Dollars, while overseas sales have increased continuously.
Therefore, fluctuations in the foreign exchange rate have the potential to affect the
purchasing power of cross-border trade customers and the profits of the
Company. As US dollar is the settlement currency, the Company hedges and
avoids the risk of exchange rates by centralized management of exchange capitals,
purchase and payment hedging and other methods.
The Company plans to pay no cash dividends, no bonus shares and no capital
increase by way of capitalization of provident fund.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Table of Contents
Section I Important Notes, Contents And Definitions .......................................................................... 2
Section II Company Profile and Key Financial Indicators ................................................................. 14
I. Company Profile........................................................................................................................... 14
II. Contact Person and Contact Information ................................................................................ 14
III. Other Information ....................................................................................................................... 14
IV. Key Accounting Data and Financial Indicators ...................................................................... 15
V. Differences in Accounting Data Under Domestic and Foreign Accounting Standards ...... 15
VI. Non-recurring Gains and Losses Items and Their Amounts ................................................ 16
Section III Management Discussion and Analysis.............................................................................. 18
I. The Principal Business of the Company during the Reporting Period ................................. 18
II. Core Competitiveness Analysis ................................................................................................ 18
III. Main Business Analysis ............................................................................................................ 18
IV. Non-main Business Analysis.................................................................................................... 23
V. Analysis of Assets and Liabilities ............................................................................................. 23
VI. Investment analysis .................................................................................................................. 25
VII. Major Assets and Equity Sales ............................................................................................... 28
VIII. Analysis of Major Holding and Equity Participation Companies ....................................... 28
IX. The structured entity controlled by the Company ................................................................. 30
X. Risks and Countermeasures ..................................................................................................... 31
Section IV Corporate Governance ........................................................................................................ 33
I. Relevant Situation of the Annual General Meeting of Shareholders and the Extraordinary
General Meeting of Shareholders Held in the Reporting Period ............................................... 33
II. Changes of Directors, Supervisors and Senior Management ............................................... 33
III. Profit Distribution and Capital Reserve Converted to Share Capital in the Reporting
Period ............................................................................................................................................... 34
IV. Implementation of the Company’s Equity Incentive Plan, Employee Stock Ownership
Plan or Other Employee Incentive Measures............................................................................... 34
Section V Environmental and Social Responsibilities ....................................................................... 36
I. Major Environmental Issues ....................................................................................................... 36
II. Social Responsibilities ............................................................................................................... 36
Section VI Significant Events................................................................................................................ 37
I. Commitments made by the Company’s controlling shareholders, shareholders, related
parties, purchasers and purchasing companies have been fulfilled during the reporting
period and those that have not been fulfilled by the end of the reporting period ................... 37
II. Non-operational capital occupation over listed companies by controlling shareholders
and their related parties ................................................................................................................. 37
III. Illegal external guarantees ........................................................................................................ 37
IV. Appointment and dismissal of accounting firms ................................................................... 37
V. Explanations made by the Board of Directors and the Board of Supervisors on the
“Non-Standard Audit Report” from the accounting firm during the reporting period ............ 37
VI. Statement by the Board of Directors on the “Non-Standard Audit Report” of the
previous year ................................................................................................................................... 37
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VII. Bankruptcy and Restructuring................................................................................................ 37
VIII. Litigation Matters..................................................................................................................... 38
IX. Penalties and Rectification ....................................................................................................... 38
X. Integrity of the Company, Its Controlling Shareholder and Actual Controller .................... 38
XI. Significant Related-party Transactions................................................................................... 38
XII. Significant Contracts and Performance................................................................................. 39
XIII. Explanations on Other Significant Matters........................................................................... 56
XIV. Significant Events of the Company’s Subsidiaries ............................................................. 57
Section VII Changes in Shares and Information about Shareholders.............................................. 58
I. Changes in Shares ....................................................................................................................... 58
II. Issuance and listing of securities ............................................................................................. 61
III. Total Number of Shareholders and Their Shareholdings ...................................................... 62
IV. Shareholding Changes of Directors, Supervisors and Senior Executives ......................... 64
V. Change of the Controlling Shareholders and Actual Controller ........................................... 64
Section VIII Information of Preferred Shares ...................................................................................... 66
Section IX Situation on Corporate Bonds ........................................................................................... 67
Section X Financial Report .................................................................................................................... 68
I. Audit Reports................................................................................................................................ 68
II. Financial Statements .................................................................................................................. 68
III. Basic Information about the Company .................................................................................... 91
IV. Basis for Preparing the Financial Statement .......................................................................... 92
V. Significant Accounting Polices and Accounting Estimates .................................................. 92
Ⅵ. Taxes ..........................................................................................................................................119
Ⅶ. Notes to the Items in the Consolidated Financial Statement ............................................. 121
VIII. Changes in the Scope of Consolidation ............................................................................. 172
IX. Equity in Other Entities ........................................................................................................... 174
X. Risks Relating to Financial Instruments ................................................................................ 182
XI. Disclosure of Fair Values ........................................................................................................ 184
XII. Related Parties and Related-party Transactions ................................................................ 186
XIII. Share-based payment ........................................................................................................... 200
XIV. Commitments and contingencies ........................................................................................ 201
XV. Events after the Balance Sheet Date .................................................................................... 203
XVI. Other Significant Events ...................................................................................................... 204
XVII. Notes to Main Items in the Financial Statements of the Parent Company .................... 204
XVIII. Supplementary Information ............................................................................................... 217
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Documents Available for Reference
I. The financial statements signed and sealed by Fu Liquan, the Company's legal representative, Xu Qiaofen, chief
accountant, and Zhu Zhuling, person in charge of accounting institution.
II. Original copies of all the Company's documents and announcements published on media designated by China
Securities Regulatory Commission within the reporting period.
III. The said documents are prepared and placed at the Company's Securities Investment Department for reference by
investors.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Definitions
Item Refers To Definitions
Reporting Period Refers To From January 1, 2022 to June 30, 2022
Dahua, company, the company Refers To Zhejiang Dahua Technology Co., Ltd.
Dahua System Engineering, System
Refers To Zhejiang Dahua System Engineering Co., Ltd.
Engineering Company
Dahua Vision Technology Refers To Zhejiang Dahua Vision Technology Co., Ltd.
Dahua Security Network, Operation
Refers To Zhejiang Dahua Security Network Operation Service Co., Ltd.
Company
Dahua Ju'an Refers To Zhejiang Dahua Ju'an Technology Co., Ltd.
Guangxi Dahua Information Refers To Guangxi Dahua Information Technology Co., Ltd.
Dahua Security Refers To Zhejiang Dahua Security Service Co., Ltd.
Guangxi Security Refers To Guangxi Dahua Security Service Co., Ltd.
Xiaohua Technology, Hangzhou
Refers To Hangzhou Xiaohua Technology Co., Ltd.
Xiaohua
Dahua Zhilian Refers To Zhejiang Dahua Zhilian Co., Ltd.
Dahua Investment, Dahua
Refers To Zhejiang Dahua Investment Management Co., Ltd.
Investment Management
Guangxi Zhicheng, Dahua Zhicheng Refers To Guangxi Dahua Zhicheng Co., Ltd.
Hangzhou Huacheng, Huacheng
Refers To Hangzhou Huacheng Network Technology Co., Ltd.
Network
Xinjiang Information Refers To Xinjiang Dahua Zhixin Information Technology Co., Ltd.
HuaRay Technology Refers To Zhejiang HuaRay Technology Co., Ltd.
Fuyang Hua'ao Refers To Hangzhou Fuyang Hua'ao Technology Co., Ltd.
Huafei Intelligent Refers To Zhejiang Huafei Intelligent Technology Co., Ltd.
Huachuang Vision Refers To Zhejiang Huachuang Vision Technology Co., Ltd.
Guizhou Huayi Refers To Guizhou Huayi Shixin Technology Co., Ltd.
Xinjiang Zhihe Refers To Xinjiang Dahua Zhihe Information Technology Co., Ltd.
Guangxi Huacheng Refers To Guangxi Huacheng Technology Co., Ltd.
Meitan Dahua Technology Refers To Guizhou Meitan Dahua Information Technology Co., Ltd.
Inner Mongolia Zhimeng Refers To Inner Mongolia Dahua Zhimeng Information Technology Co., Ltd.
Xinjiang Zhitian Refers To Xinjiang Dahua Zhitian Information Technology Co., Ltd.
Xinjiang Xinzhi Refers To Xinjiang Dahua Xinzhi Information Technology Co., Ltd.
Xinjiang Huayue Refers To Xinjiang Dahua Huayue Information Technology Co., Ltd.
Leapmotor Technology Refers To Zhejiang Leapmotor Technology Co., Ltd.
Leapmotor Refers To Leapmotor Automobile Co., Ltd.
Tianjin Dahua Information, Tianjin
Refers To Tianjin Dahua Information Technology Co., Ltd.
Dahua
Hunan Dahua Zhilong, Dahua
Refers To Hunan Dahua Zhilong Information Technology Co., Ltd.
Zhilong
Huaxiao Technology Refers To Zhejiang Huaxiao Technology Co., Ltd.
Vision Technology Refers To Zhejiang Fengshi Technology Co., Ltd.
Xi'an Dahua Zhilian, Xi'an Dahua Refers To Xi'an Dahua Zhilian Technology Co., Ltd.
Wuxi Ruipin Refers To Wuxi Dahua Ruipin Technology Co., Ltd.
Beijing Huayue Refers To Beijing Huayue Shangcheng Information Technology Service
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Co., Ltd.
Shanghai Huashang Chengyue Information Technology Service
Shanghai Huashang Refers To
Co., Ltd.
Dahua Jinzhi Refers To Zhejiang Dahua Jinzhi Technology Co., Ltd.
Dahua Guangxun Refers To Sichuan Dahua Guangxun Photoelectric Technology Co., Ltd.
Dahua Hong Kong, Dahua (HK)
Refers To Dahua Technology (HK) Limited
Limited
Zhoushan Operation Refers To Zhejiang Zhoushan Digital Development Operation Co. Ltd.
Yunnan Zhili Refers To Yunnan Zhili Technology Co., Ltd
Guangxi Dahua Technology Refers To Guangxi Dahua Technology Co., Ltd.
Dahua Storage Refers To Zhejiang Dahua Storage Technology Co., Ltd.
Huaruijie Refers To Zhejiang Huaruijie Technology Co., Ltd.
Chengdu Zhilian Refers To Chengdu Dahua Zhilian Information Technology Co., Ltd.
Chengdu Zhian Refers To Chengdu Dahua Zhian Information Technology Service Co., Ltd.
Chengdu Dahua Zhishu Information Technology Service Co.,
Chengdu Zhishu Refers To
Ltd.
Chengdu Zhichuang Refers To Chengdu Zhichuang Yunshu Technology Co., Ltd.
Chengdu Smart Network Refers To Chengdu Huishan Smart Network Technology Co., Ltd.
Huakong Software Refers To Zhejiang Huakong Software Co., Ltd.
Huacheng Software Refers To Hangzhou Huacheng Software Co., Ltd.
Guizhou Dahua Refers To Guizhou Dahua Information Technology Co., Ltd.
Henan Dahua Refers To Henan Dahua Zhilian Information Technology Co., Ltd.
Huajian Refers To Zhejiang Huajian Technology Co., Ltd.
Zhengzhou Dahua Zhian Refers To Zhengzhou Dahua Zhian Information Technology Co., Ltd.
Dahua International Refers To Dahua Technology International Co., Ltd.
Anhui Zhilian Refers To Anhui Dahua Zhilian Information Technology Co., Ltd.
Anhui Zhishu Refers To Anhui Dahua Zhishu Information Technology Co., Ltd.
Changsha Dahua Refers To Changsha Dahua Technology Co., Ltd.
Tianjin Huajian Refers To Tianjin Huajian Technology Co., Ltd.
Wuhu Huajian Refers To Wuhu Huajian Technology Co., Ltd.
Zhejiang Pixfra Refers To Zhejiang Pixfra Technology Co., Ltd.
Yiwu Huaxi Refers To Yiwu Huaxi Technology Co., Ltd.
Dahua Operation Refers To Zhejiang Dahua Intelligent IoT Operation Service Co., Ltd.
Nanyang Intelligent Refers To Nanyang Dahua Intelligent Information Technology Co., Ltd.
Yibin Huahui Refers To Yibin Huahui Information Technology Co., Ltd.
Chengdu Huazhiwei Refers To Chengdu Huazhiwei Technology Co., Ltd.
IMOU Xi'an Refers To Xi'an IMOU Zhilian Technology Co., Ltd.
Dahua USA Refers To Dahua Technology USA Inc.
Dahua Europe Refers To Dahua Europe B.V.
Dahua Middle East Refers To Dahua Technology Middle East FZE
Dahua Mexico Refers To Dahua Technology Mexico S.A. DE C.V
Dahua Chile Refers To Dahua Technology Chile SpA
Dahua Malaysia Refers To Dahua Security Malaysia SDN. BHD.
Dahua Korea Refers To Dahua Technology Korea Company Limited
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Dahua Indonesia Refers To PT. Dahua Vision Technology Indonesia
Dahua Colombia Refers To Dahua Technology Colombia S.A.S
Dahua Australia Refers To Dahua Technology Australia PTY Ltd
Dahua Singapore Refers To Dahua Technology Singapore Pte. Ltd.
Dahua South Africa Refers To Dahua Technology South Africa Proprietary Limited
Dahua Peru Refers To Dahua Technology Perú S.A.C
Dahua Russia Refers To Dahua Technology Rus Limited Liability Company
DAHUA ECHNOLOGY BRASIL COMRCIO E SERVIOS EM
Dahua Brazil Refers To
SEGURANA ELETRNICA LTDA
Dahua Canada Refers To Dahua Technology Canada INC.
Dahua Panama Refers To Dahua Technology Panama S.A.
Dahua Hungary Refers To Dahua Technology Hungary Kft
Dahua Poland Refers To Dahua Technology Poland Sp. z o.o.
Dahua Italy Refers To Dahua Technology Italy S.R.L.
Dahua Tunisia Refers To Dahua Technology Tunisia Limited Liability Company
Dahua Kenya Refers To Dahua Technology Kenya Limited
Dahua UK Refers To Dahua Technology UK Limited
Dahua Germany Refers To Dahua Technology GmbH
Dahua Serbia Refers To Dahua Technology SRB d.o.o.
Dahua India Refers To Dahua Technology India Private Limited
Dahua Turkey Refers To Dahua Guvenlik Teknolojileri Sanayi ve Ticaret A.S.
Dahua Czech Refers To Dahua Technology Czech s.r.o.
Dahua Argentina Refers To Dahua Argentina S.A.
Dahua Spain Refers To Dahua Iberia, S.L.
Dahua Kazakhstan Refers To Dahua Technology Kazakhstan LLP
Dahua Denmark Refers To Dahua Technology Denmark Aps.
Dahua France Refers To Dahua Technology France SAS
Dahua Lorex (US) Corporation Refers To Lorex Corporation
Dahua Technology Holdings Refers To Dahua Technology Holdings Limited
Dahua New Zealand Refers To Dahua Technology New Zealand Limited
Dahua Netherlands Refers To Dahua Technology Netherlands B.V.
Dahua Morocco Refers To Dahua Technology Morocco SARL
Dahua Romania Refers To Dahua Technology S.R.L
Dahua Uzbekistan Refers To Dahua Vision LLc
Dahua Lorex (Canada) Corporation Refers To Lorex Technology Inc.
Dahua Bulgaria Refers To Dahua Technology Bulgaria EOOD
Dahua Sri Lanka Refers To Dahua Technology China (Pvt) Ltd
Dahua Pakistan Refers To Dahua Technology Pakistan (private) Limited
Dahua Thailand Refers To Dahua Technology (Thailand) Co.,Ltd.
Dahua Nigeria Refers To Dahua Technology Nigeria Representative Ltd
Dahua Israel Refers To Dahua Technology Israel Ltd.
Dahua Mexico Service Refers To VISMEXTECH DHM SERVICIOS, S.A. DE C.V.
Huacheng Netherlands Refers To Imou Network Technology Netherlands B.V.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Dahua Lorex (UK) Corporation Refers To LOREX Technology UK Limited
Dahua Japan Refers To Dahua Technology Japan 合同会社
Huacheng Hong Kong Refers To Huacheng Network (HK) Technology Limited
Dahua Qatar Refers To Dahua Technology QFZ LLC
Dahua Pacific Refers To Dahua Technology Pacific S.A
INTELBRAS S.A. INDSTRIA DE TELECOMUNICAO
INTELBRAS S.A. Refers To
ELETRNICA BRASILEIRA
Dahua Technology Middle East for Maintenance Single Person
Dahua Saudi Arabia Refers To
Company
Dahua Bengal Refers To Dahua Technology Bangladesh Private Limited
IMOU Australia Refers To IMOU NETWORK TECHNOLOGY AUSTRALIA PTY LTD
IMOU Vietnam Refers To CNG TY TNHH CNG NGH IMOU NETWORK VIT NAM
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section II Company Profile and Key Financial Indicators
I. Company Profile
Stock Abbreviation DAHUA Stock Code 002236
Stock Exchange Shenzhen Stock Exchange
Company Name in
浙江大华技术股份有限公司
Chinese
Company Abbreviation in
DAHUA
Chinese (If any)
Company Name in Foreign
ZHEJIANG DAHUA TECHNOLOGY CO.,LTD.
Language (If any)
Legal Representative Fu Liquan
II. Contact Person and Contact Information
Secretary of the Board Representative of Securities Affairs
Name Wu Jian
No. 1199 Binan Road, Binjiang
Contact Address District, Hangzhou City, Zhejiang
Province
Tel. 0571-28939522
Fax 0571-28051737
E-mail zqsw@dahuatech.com
III. Other Information
1. Company Contact Information
Whether the Company’s registered address, office address, postal code, website and e-mail address has changed
during the reporting period
□ Applicable Not applicable
The Company's registered address, office address, postal code, website and e-mail address have not changed during
the reporting period, which can be found in the 2021 Annual Report.
2. Information Disclosure and Location
Whether information disclosure and location has changed during the reporting period
□ Applicable Not applicable
The name of the Company's selected information disclosure newspaper, the URL of the website designated by the
CSRC where the semi-annual report is posted, and the place where the Company's semi-annual report is available
have not changed during the reporting period, which can be found in the 2021 Annual Report.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
3. Other Related Information
Whether other related information has changed during the reporting period
□ Applicable Not applicable
IV. Key Accounting Data and Financial Indicators
Whether the Company needs retroactive adjustment or restatement of accounting data in prior years or not
□ Yes No
Increase/Decrease of the
The Current Reporting The Same Period of Last Current Reporting Period
Period Year Compared with the Same
Period of the Previous Year
Operating revenue (RMB) 14,087,085,840.97 13,505,005,733.89 4.31%
Net profit attributable to
shareholders of the listed 1,519,848,967.71 1,643,175,887.55 -7.51%
Company (RMB)
Net profit attributable to
shareholders of the listed
company after deducting 1,255,639,844.11 1,439,592,047.22 -12.78%
non-recurring gains and
losses (RMB)
Net cash flow generated by
operational activities -1,727,794,646.76 -871,108,797.99 -98.34%
(RMB)
Basic Earnings per Share
0.51 0.56 -8.93%
(RMB/Share)
Diluted Earnings per Share
0.51 0.56 -8.93%
(RMB/Share)
Weighted Average ROE 6.27% 7.92% -1.65%
Increase/Decrease at the
End of the Current
At the End of the Current At the End of the Previous
Reporting Period
Reporting Period Year
Compared with the End of
the Previous Year
Total assets (RMB) 42,874,935,033.83 44,055,872,021.97 -2.68%
Net assets attributable to
shareholders of the listed 24,361,153,521.26 23,617,602,513.55 3.15%
company (RMB)
V. Differences in Accounting Data Under Domestic and Foreign Accounting
Standards
(1) Differences of net profits and net assets in the financial reports disclosed according to the
international accounting standards and Chinese accounting standards
□ Applicable Not applicable
During the reporting period of the company, there is no difference between the net profits and net assets in the
financial reports disclosed according to international accounting standards and Chinese accounting standards.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(2) Differences between the net profits and net assets in the financial reports disclosed
according to the overseas accounting standards and Chinese accounting standards
□ Applicable Not applicable
During the reporting period of the company, there is no difference between the net profits and net assets in the
financial reports disclosed according to overseas accounting standards and Chinese accounting standards.
VI. Non-recurring Gains and Losses Items and Their Amounts
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Profits or losses from disposal of
non-current assets (including the
2,288,425.59
write-off for the accrued impairment
of assets)
The government subsidies included
in the current profits and losses
(excluding the government subsidies
closely related to regular businesses 162,812,063.07
of the Company, in line with national
policies, and consecutively received
by a standard quota or quantity)
Gains or losses from investment or
asset management entrusted to -10,104,926.15
others
Gains or losses from debt
-411,312.80
restructuring
Profits and losses resulting from the
changes in fair value for holding
trading financial assets and trading
financial liabilities, and investment
income from disposal of trading
financial assets, trading financial 170,672,546.04
liabilities, and financial assets
available for trading, excluding the
effective hedging businesses related
to the regular business operation of
the Company
Non-Operating Revenue and
610,811.31
expenses other than the above
Other gains and losses items that fit
the definition of non-recurring gains -299,697.90
and losses
Less: Impact of income tax 46,366,666.73
Impact of minority equity (after
14,992,118.83
tax)
Total 264,209,123.60
Other gains or losses that fit the definition of non-recurring gains or losses:
□ Applicable Not applicable
The Company has no other gains or losses that fit the definition of non-recurring gains or losses.
Note for the definition of non-recurring gains and losses set out in the No. 1 Explanatory Announcement on Information
Disclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses, as recurring gains
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
and losses.
□ Applicable Not applicable
The Company did not define any non-recurring gains and losses set out in the No. 1 Explanatory Announcement on
Information Disclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses as
recurring gains and losses.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section III Management Discussion and Analysis
I. The Principal Business of the Company during the Reporting Period
The Company's principal business has not changed during the reporting period. Please refer to the 2021 Annual
Report for details.
II. Core Competitiveness Analysis
The Company's core competitiveness has not changed during the reporting period. Please refer to the 2021 Annual
Report for details.
III. Main Business Analysis
Overview
In the first half of 2022, due to the repeated outbreak of COVID-19 pandemic in China, prevention measures were
taken in many places, causing restricted flow of personnel and logistics transportation and weakening demand for
social investment. With the continuous resumption of work and production, the economic vitality is expected to recover
gradually. At the same time, the external environment is complex and changeable, and the tense geopolitical situation
and the rising inflation bring uncertainties to the growth of global economy. Facing the challenges, the Company relies
on its capabilities of "Full Sensing, Full Intelligence, Full Connection, Full Computing, and Full Ecosystem" to promote
the deep integration of digital technology and real economy with focuses on exploring business opportunities in new
smart cities, traffic management, energy, industrial manufacturing, education and medical care, actively promotes the
development of innovative business, steadily implements the business strategy of Dahua Think# and deepens its high-
quality development. Dahua will promote production and operation in an orderly manner and continue to maintain its
leading position in the industry.
During the reporting period, the Company has achieved an operating revenue of RMB 14.087 billion, with a year-
on-year increase of 4.31%, and a net profit attributable to shareholders of listed companies of RMB 1.52 billion, with a
year-on-year decrease of 7.51%. The Company continues to deepen the high-quality development strategy and
constantly improve the competitiveness of its products and solutions. The main business strategies of the Company
include:
1. Continuously increase investments in R&D to strengthen the capacity for innovations and improve the core
technical strength
The Company continues to increase its investment in core technologies such as AI, cloud computing and big data,
5G, and core devices, and the building of software capacity. During the reporting period, the Company has invested
RMB 1.563 billion in R&D, accounting for 11.10% of the operating revenue in the first half of 2022.
In terms of AI capability, the Company focuses on the industrial implementation, pays attention to the close
integration to industrial business and application scenarios, continues to expand the application capacity of AI
scenarios, and has achieved a constantly increasing proportion of sales of smart products and solutions. Regarding
the research of core technology of algorithm, the Company's algorithm team prospectively explored the industrial
development path, made outstanding achievements in many fields such as weak supervision learning, independent
learning, semi-automatic model search, federated learning and trusted AI, and gradually realized its industrial
implementation. In terms of AI engineering capability, facing the digital transformation of the industry, the Company
18
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
has created three modes of "quick customization by the Company", "convenient development by users" and "general
algorithm paradigm" to comprehensively build the AI scenario capability. The Company relies on its full-process
algorithm and algorithm scheme development platform, the "Genius Platform", to effectively support the industry's
scenario-based intelligent demand. Relying on the system architecture of "releasing an algorithm is to release a
solution", the Company has greatly improved the scenario-adapted capability of intelligent products and platforms. Jinn
studio, the Company's AI open platform, was launched in Yunrui public cloud and enterprise private cloud solutions.
Customers can take the advantage of their own data to train their own scenario-based algorithms, so as to better
realize the transformation and upgrading of customers' business.
Based on cloud computing and big data technology, the Company focuses on video IoT scenarios with business
at the center to build up city-level data storage, calculation, analysis, modeling, and sharing capabilities with the goal
to achieve online data, value calculation, and business enabling. The Company integrates the technical advantages of
cloud computing and big data, flexible componentized architecture, as well as the layered decoupling and vertical
closed-loop capabilities of the software architecture, on the basis of its deep insights into video IoT business. Based on
the three key processes for realizing the value of data, namely, online data, value calculation, and business application,
the Company has constructed a video-centric IoT digital intelligence platform. The Company kept enriching and
improving its business components, added more types of IoT sensing access devices, improved computing
collaboration, and stepped up cloud-native elastic scale capabilities, and further enhanced heterogeneous data
processing capabilities, so as to tamp the business enablement platform and open the base capacity to facilitate the
digital transformation of the industry. The platform architecture of the Company has been continuously improved for
more than a decade. Through the "one system and dual platforms", namely the unified architecture of IoT Digital
Intelligence Mid-End System, and Urban Platform 2.0 and Enterprise Platform 3.0, and the co-developed Dahua
Wanxiang Platform, the Company has collaborated with customers and partners for coordination and development.
The video-centric and smart IoT directed software platform built by the Company has been widely applied to
thousands of industries. The Company has always adhered to the client-oriented principle when developing industry-
specific software platforms. Guided by business targets and driven by technology, the Company continuously creates
industry paradigms and has built a complete system consisting four layers of components: G, B, F and M.Through the
componentized four-layer system, the Company constructed diverse industry-specific applications, which can quickly
meet clients' sensitive development needs.
2. Continuously develop high-quality innovative businesses
The Company attaches great importance to the cultivation and development of innovative businesses. Relying on
the its technology accumulation in the video IoT industry, supply chain integration ability and marketing ability, the
Company vigorously innovates and continues to expand new fields of high-speed growth. At present, the Company
mainly owns a series of innovative businesses such as mobile robots, Imou appliances, automotive electronics, smart
security inspection, smart storage, and smart fire control. These businesses operate independently under the unified
governance structure of the group, so as to adapt to the rapidly changing needs of the market. They have become an
important driving force for the Company's growth. In the first half of 2022, the overall growth rate of the Company's
innovative businesses was 40.84%.
3. Continuously optimize the construction of marketing network and comprehensively improve the technical
marketing ability
The Company continues to optimize the construction of marketing network, and extends its domestic business to
the county and township level; the Company continues to extend country-centric overseas business to improve
customer coverage and response speed to customers. As Dahua steps up its effort to increase client coverage and
continues to provide service for small and medium-sized enterprises in low-level administrative divisions, continuously
cover more industry clients, and clients previously left out have been reached. The Company actively embraces the
19
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Internet and comprehensively arranges e-commerce, cloud-ecommerce and Yunrui businesses. At the same time, the
Company has introduced multi-dimensional partners to the ecosystem to jointly expand the coverage and strengthen
identification of potential clients, so as to bring clients closer to the Company. In the overseas market, the Company
continues to deepen its business strategy of localization and develop its sales network in low-level administrative
divisions, constantly loads more non-video new businesses and product solutions, and configures professional teams
to expand new business overseas.
The Company has further strengthened the regional technology marketing system, improved the market system
construction based on products and solutions, enhanced the coordination between technology and business, and
comprehensively improved the technology marketing ability. In order to promote the Company's software marketing, all
teams of the Company in domestic provinces and regions, industry lines or overseas, have formulated complete
strategies. Domestically, software marketing organizations have been established for all provinces and regions with
assessment indicators formulated and software marketing incentives set up. Overseas, the Company has established
an independent overseas software team to develop standardized general software and focus on key industries, so as
to improve the overall proportion of software business in overseas business.
4. Strengthen the construction of a cooperative ecosystem to achieve the cooperation with co-construction,
symbiosis and win-win outcome
The Company insists on developing ecological partners, so as to realize the enterprise strategy of cooperation
with co-construction, symbiosis and win-win outcome. The Company comprehensively cooperates with its partners in
multiple dimensions, such as hardware, software, algorithms, services and business, etc. to accelerate the
industrialization of digital intelligence through digital upgrades of industries. In the field of technology, Dahua launched
the Wanxiang Ecological Platform for technology developers and industry practitioners to connect personalized and
customized development; in the aspect of intelligent algorithms, the Genius Platform has been launched to help
customers establish algorithm training and development capabilities; in terms of hardware products, Dahua has fully
opened its leading hardware products to our partners through the DHOP Platform; in the aspect of software application,
the full opening of PAAS, DaaS and SaaS Layers has been realized; in the business field, an independent
organization has been established to serve the leading integrators of various sub industries and regions.
The Company attaches importance to the construction of integration cooperation ecosystem, implements
hierarchical and graded management for ecological integration partners, and gives full play to their amplifier role by
well serving the ecological partners. The Company continues to increase the investment in sinking and expanding
coverage of business. With the number of its ecological partners continues to increase, its business structure becomes
more stable.
5. Exploration of the market segment for high-quality development
The Company thoroughly promotes fine management, comprehensively implements high performance
management, and deepens the development path of high quality and stable growth.
Dahua always adheres to cohesion and coordination, rapid decision-making, efficient implementation and
strengthens strategy implementation, so as to provide guarantee for high-quality development. Dahua continues to
promote the quality construction of products, solutions and services, build the continuous competitiveness of products
and solutions, and win customers with its craftsman spirit; maintain the spirit of innovation and build a more
comprehensive and open ecological cooperation relationship; strengthen the localization construction of marketing
team to better serve customers; strengthen supply chain management to ensure continuous delivery to customers;
continuously improve the compliance management system and strengthen the internal control and governance of the
enterprise; promote professional support teams such as finance and IT to better serve the business; deepen the talent
mechanism, continue to stimulate the vitality of talents through a reasonable business incentive and guidance
mechanism, and build a company model of common prosperity based on competition and performance.
20
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Year-on-year changes in key financial data
Unit: RMB
Year-on-
The Current The Same Period of year
Reasons for changes
Reporting Period Last Year increase or
decrease
Operating revenue 14,087,085,840.97 13,505,005,733.89 4.31% No Significant Change
Operating Cost 8,802,576,621.32 7,910,714,928.97 11.27% No Significant Change
Sales Expenses 2,039,728,296.24 2,059,001,711.42 -0.94% No Significant Change
Administration
416,806,198.58 393,272,171.06 5.98% No Significant Change
expenses
Mainly due to the increase in
Financial Expenses -274,601,124.61 77,676,041.15 -453.52%
exchange gains
Mainly due to the decrease of
tax rebate for key software
enterprises in the current
Income tax expense 93,448,750.74 -38,451,185.77 343.03%
period compared with the
same period of the previous
year
R&D Investment 1,563,479,271.17 1,406,249,326.81 11.18% No Significant Change
Net cash flow Mainly due to the increase in
generated by -1,727,794,646.76 -871,108,797.99 -98.34% the payment of goods in the
operating activities current period
Mainly due to the decrease of
Net amount of cash entrusted financial
flow generated by -111,912,983.12 -975,034,182.68 88.52% management expenditure in
investment activities the current period compared
with the previous period
Mainly due to the decrease in
Net cash flow the net inflow of borrowings in
generated by 646,641,330.65 1,073,002,256.78 -39.74% the current period compared
financing activities with the same period of the
previous year
Mainly due to the increase in
Net additions to payment for goods and the
balance of -1,107,052,493.98 -808,743,871.72 -36.89% decrease in net inflow of
equivalents borrowings in the current
period
Significant changes in the composition of the Company’s profit or sources of profit during the reporting period
□ Applicable Not applicable
No significant changes in the composition of the Company’s profit or sources of profit during the reporting period.
Operating revenue structure
Unit: RMB
The Current Reporting Period The Same Period of Last Year Year-on-
Proportion in Proportion in year
Amount Operating Amount Operating increase or
Revenue Revenue decrease
Total Revenue 14,087,085,840.97 100% 13,505,005,733.89 100% 4.31%
By Industry
Smart IoT 14,087,085,840.97 100.00% 13,505,005,733.89 100.00% 4.31%
21
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Industry
By Product
Smart IoT
Products and 11,798,309,265.54 83.75% 11,574,586,946.32 85.71% 1.93%
Solutions
Including:
Software 602,291,989.74 4.28% 551,302,402.99 4.08% 9.25%
Business
Innovative 1,685,969,891.14
11.97% 1,197,068,199.15 8.86% 40.84%
Business (Note)
Others 602,806,684.29 4.28% 733,350,588.42 5.43% -17.80%
By Region
Domestic 7,295,809,974.26 51.79% 7,777,087,103.47 57.59% -6.19%
Overseas 6,791,275,866.71 48.21% 5,727,918,630.42 42.41% 18.56%
Domestic Sub-business Segment
Unit: RMB
The Current Reporting Period The Same Period of Last Year
Year-on-year
Proportion in Proportion in increase or
Amount Domestic Operating Amount Domestic Operating decrease
Revenue Revenue
To G 2,030,325,740.84 27.83% 2,181,268,061.15 28.05% -6.92%
To B 3,539,315,842.45 48.51% 3,596,476,335.61 46.24% -1.59%
Others 1,726,168,390.97 23.66% 1,999,342,706.71 25.71% -13.66%
Total 7,295,809,974.26 100.00% 7,777,087,103.47 100.00% -6.19%
Note: Innovative business mainly includes machine vision and mobile robots, smart living, automotive electronics,
smart security inspection, smart fire control, video collaboration, drone, and smart storage, similarly hereinafter.
Industry, product, or region accounting for more than 10% of the Company’s operating revenue or profit
Applicable □ Not applicable
Unit: RMB
Increase
or Increase Increase or
decrease and decrease
of decrease of gross
operating of profit
Gross
Operating revenue Operating Cost income operating compared
margin
compare cost over with the
d with the the same same
same period of period of
period of last year last year
last year
By Industry
Smart IoT Industry 14,087,085,840.97 8,802,576,621.32 37.51% 4.31% 11.27% -3.91%
By Product
Smart IoT
Products and 11,798,309,265.54 7,061,613,890.17 40.15% 1.93% 9.02% -3.89%
Solutions
Including:
Software 602,291,989.74 186,825,686.58 68.98% 9.25% 14.08% -1.31%
Business
Innovated 1,685,969,891.14 1,210,244,442.96 28.22% 40.84% 50.22% -4.48%
Businesses
22
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
By Region
Domestic 7,295,809,974.26 4,876,785,986.28 33.16% -6.19% 4.08% -6.59%
Overseas 6,791,275,866.71 3,925,790,635.04 42.19% 18.56% 21.72% -1.50%
Domestic Sub-
business Segment
To G 2,030,325,740.84 1,272,006,120.64 37.35% -6.92% 6.88% -8.09%
To B 3,539,315,842.45 2,233,076,722.74 36.91% -1.59% 8.03% -5.62%
Others 1,726,168,390.97 1,371,703,142.90 20.53% -13.66% -3.97% -8.02%
When the statistical caliber of the Company's main business data is adjusted in the reporting period, the Company's
main business data in the most recent period should be subject to the one after the statistical caliber adjusted at the
end of the reporting period.
□ Applicable Not applicable
Reasons for over 30% changes in related data on year-on-year basis
□ Applicable Not applicable
IV. Non-main Business Analysis
□ Applicable Not applicable
V. Analysis of Assets and Liabilities
1. Significant changes in assets composition
Unit: RMB
At the End of the Current Propor
At the End of the Previous Year
Reporting Period tion
Proporti Proporti increa Statement on
on To on To se and Significant Changes
Amount Amount decrea
Total Total
Assets Assets se
Cash and Mainly due to the
-
Bank 6,610,686,838.87 15.42% 7,731,002,784.77 17.55% increase in operating
2.13%
Balances expenditure
Accounts
15,191,656,060.47 35.43% 14,654,490,643.49 33.26% 2.17% No major changes.
receivable
Contract
189,237,373.86 0.44% 163,432,100.37 0.37% 0.07% No major changes.
Assets
-
Inventory 6,493,192,148.56 15.14% 6,810,041,288.82 15.46% No major changes.
0.32%
Investment -
299,839,429.94 0.70% 311,065,023.43 0.71% No major changes.
Property 0.01%
Mainly due to the
Long-term recognition of other
-
Equity 1,055,226,461.37 2.46% 1,243,872,752.91 2.82% changes in equity of
0.36%
Investment associated
enterprises
Mainly due to the
conversion of phase II
Fixed Assets 2,531,115,302.13 5.90% 2,187,435,714.17 4.97% 0.93% construction project of
the smart
manufacturing base
23
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
in Hangzhou into
fixed assets
Projects under
2,149,024,114.06 5.01% 1,992,834,055.03 4.52% 0.49% No major changes.
Construction
Right-of-use
279,009,442.07 0.65% 248,577,371.97 0.56% 0.09% No major changes.
Assets
Mainly due to
Short-term
634,697,133.66 1.48% 325,648,230.98 0.74% 0.74% increase in bill
loan
discounted
Contract
932,307,353.68 2.17% 864,989,993.78 1.96% 0.21% No major changes.
liabilities
Long-term -
1,505,050,000.00 3.51% 1,552,500,000.00 3.52% No major changes.
loan 0.01%
Lease
155,193,192.52 0.36% 140,606,139.33 0.32% 0.04% No major changes.
Liabilities
2. Major overseas assets
□ Applicable Not applicable
3. Assets and liabilities measured at fair value
Applicable □ Not applicable
Unit: RMB
Imp
airm Purch
Sales
Cumu ent ase
amou
Changes in lative loss amou
At the nt of
fair value fair of nt of
beginning of the At the end of the
Item gains and value the the Other variations
the reporting report reporting period
losses in the chang rep report
period ing
current period es in ortin ing
perio
equity g perio
d
peri d
od
Financial
Assets
1.
Derivative
1,132,173.53 -1,132,045.17 -128.36
financial
assets
2. Others 1,470,000.00 1,470,000.00
Financial
assets 2,602,173.53 -1,132,045.17 -128.36 1,470,000.00
subtotal
3. Other
non-
945,619,965. 162,677,125.0
current 2,689,028.75 1,110,986,119.72
97 0
financial
assets
4. 792,709,781.
-115,977,155.03 676,732,626.54
Receivabl 57
24
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
es
financing
1,740,931,92 161,545,079.8
Total -113,288,254.64 1,789,188,746.26
1.07 3
Financial
22,938,892.17 22,938,892.17
liabilities
Are there any significant changes in the measurement attributes of the company's main assets during the reporting
period?
□ Yes No
4. Restrictions on asset rights as of the end of the reporting period
As of June 30, 2022, restricted assets of the Company are as follows:
Item Closing balance (RMB) Cause of restrictions
Cash and Bank Balances 87,638,514.43 Guarantee letter security deposit and other restricted funds
Accounts receivable 18,583,668.69 Supply chain finance not derecognized
Notes receivable and Pledge used to issue bank acceptance bills and endorsed or
1,120,819,270.63 discounted notes not derecognized
receivables financing
Long-term Receivables 150,962,494.77 Pledge for bank borrowings
Non-current Assets Due
29,656,721.39 Pledge for bank borrowings
within 1 Year
Total 1,407,660,669.91
VI. Investment analysis
1. Overview
Applicable □ Not applicable
Investment In The Reporting Period Investment Over The Corresponding
Rate Of Change
(RMB) Period Of Last Year (RMB)
191,467,784.85 63,998,186.36 199.18%
2. Significant equity investments acquired during the reporting period
□ Applicable Not applicable
3. Major non-equity investments underway during the reporting period
Applicable □ Not applicable
Unit: RMB
The Involv Amou Cumul Cumul Reaso
Invest ed nt ative Progr ative ns For Disclo Disclo
Antici
Invest ment indust Invest Actual ess Incom Unrea sing sing
Item Capital pated
ment In The ry in ed In Invest of e As ched Date Index
Name Source Incom
Mode Fixed invest The ment Proje Of Plann (If (If
e
Asset ment Curre As Of ct The ed Any) Any)
s Or projec nt The End Progr
25
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Not ts Repor End Of ess
ting Of The And
Period Repor Repor Antici
ting ting pated
Period Period Reven
ue
The
phase
II
constr Jucha
uction o
projec Inform
t of Smart In ation
Self- 108,5 1,127, Self- Not March
the IoT const Netwo
constr Yes 86,32 667,7 raised applic 27,
smart Indust ructio rk
uction 7.88 56.27 funds able. 2021
manuf ry n http://
acturi cninfo
ng .com.
base cn/
in
Hangz
hou
Jucha
Const
o
ructio
Inform
n
Smart In ation
Projec Self- 111,45 637,2 Self- Not March
IoT const Netwo
t of constr Yes 8,254. 29,92 raised applic 27,
Indust ructio rk
Xi'an uction 07 6.38 funds able. 2021
ry n http://
R&D
cninfo
Cente
.com.
r
cn/
Projec
Jucha
t of
o
Smart
Inform
IoT
Smart In ation
Soluti Self- 344,4 1,684, Self- Not March
IoT const Netwo
on R constr Yes 93,98 241,1 raised applic 27,
Indust ructio rk
&D uction 4.97 72.06 funds able. 2021
ry n http://
and
cninfo
Indust
.com.
rializat
cn/
ion
New
Jucha
projec
o
t of
Inform
South
Smart In ation
west Self- 19,82 56,09 Self- Not March
IoT const Netwo
R&D constr Yes 8,920. 2,649. raised applic 27,
Indust ructio rk
Cente uction 06 40 funds able. 2021
ry n http://
r of
cninfo
Dahu
.com.
a Co.,
cn/
Ltd.
584,3 3,505,
Total -- -- -- 67,48 231,5 -- -- -- -- --
6.98 04.11
26
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
4. Financial assets investment
(1) Securities investment
□ Applicable Not applicable
No such case as securities investment during the reporting period.
(2) Derivatives investment
Applicable □ Not applicable
Unit: ten thousand RMB
Prop
ortion
of
invest
ment Actua
Amou Amou
Amou Inves amou l
Nam Whet nt nt of
Initial nt tment nt in profit
e of Relati her it Type purch provi
amou Initial sold amou the and
deriv on is a s of Termi ased sion
nt of Starti invest durin nt at comp loss
atives with relate deriv natio durin for
deriv ng ment g the the any’s durin
invest relate d atives n g the impai
atives date amou report end net g the
ment d trans invest date report rment
invest nt ing of the asset report
opera party actio ment ing accru
ment perio perio s at ing
tor n perio ed (if
d d end perio
d any)
of the d
report
ing
perio
d
Forei
gn
No Janu June
exch 99,86 342,3 350,6 91,56 3.76 1,250
Bank relati No ary 7, 26,
ange 7.35 07.67 05.39 9.63 % .17
ons 2021 2023
contr
act
Forei
Secur gn Janu
No June
ities exch ary 101,9 101,9 266.8
relati No 27,
comp ange 12, 05.26 05.26 4
ons 2022
any contr 2022
act
99,86 444,2 452,5 91,56 3.76 1,517
Total -- --
7.35 12.93 10.65 9.63 % .01
Sources of funds for derivatives
Equity Fund
investment
Litigation involved (if
N/A
applicable)
Disclosure date of board of
directors' announcement on the
April 23, 2022
approval of derivatives
investment (if any)
Disclosure date of shareholder May 17, 2022
27
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
meeting’s announcement on
the approval of derivatives
investment (if any)
Risk analysis and description of
control measures for
derivatives positions during the For details of risk analysis and control measures, please refer to the
reporting period (including but "Announcement on Conducting Foreign Exchange Hedging Transactions"
not limited to market risk, (Announcement No. 2022-026), which was disclosed on April 23, 2022.
liquidity risk, credit risk,
operational risk, legal risk, etc.)
Changes in market prices or
product fair value of invested
derivatives during the reporting
The difference between the forward foreign exchange settlement contract quotation
period, and the analysis of the
and the forward foreign exchange price determined the transactional financial
fair value of derivatives should
assets or transactional financial liabilities.
disclose the specific methods
used and the setting of related
assumptions and parameters.
Explanation of whether the
Company’s derivatives
accounting policies and specific
accounting principles have No
changed significantly during the
reporting period compared with
the previous reporting period
Independent directors' special
opinions on the Company's For details, please refer to the "Independent Opinions of Independent Directors on
derivatives investment and risk Related Matters" disclosed by the Company on April 23, 2022.
control
5. Utilization of raised funds
□ Applicable Not applicable
No use of funds in the reporting period of the Company
VII. Major Assets and Equity Sales
1. Major assets sales
□ Applicable Not applicable
No major assets sales in the reporting period of the Company
2. Major equity sales
□ Applicable Not applicable
VIII. Analysis of Major Holding and Equity Participation Companies
Applicable □ Not applicable
Major subsidiaries and joint-stock companies with a net profit impact of over 10%.
Unit: RMB
Company Comp Main Registere Total Net Operating Operating Net Profit
28
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Name any businesses d Capital Assets Assets revenue Profit
Type
The
development,
production,
installation and
sales of
electronic and
Zhejiang
communication
Dahua Subsi
products; the - -
System diary 500,000,0 3,962,148, 1,297,238, 469,477,2
design, 87,979,11 65,559,57
Engineeri Comp 00.00 513.43 000.47 38.43
construction 4.69 3.26
ng Co., any
and installation
Ltd.
of computer
system
integration and
automated
control
engineering
The
development,
sales, and
technical
services related
to computer
Zhejiang
software, as
Dahua Subsi
well as the
Vision diary 1,306,810, 22,433,44 2,330,694, 10,497,27 483,693,2 368,867,3
design,
Technolo Comp 000.00 7,846.36 473.04 3,535.74 39.43 81.13
development,
gy Co., any
production and
Ltd.
sales of security
equipment,
electronic
products and
communication
s products
Production and
sales of
electronic
products and
auxiliary
equipment;
technological
development,
technical
Zhejiang Subsi
consultation - -
Dahua diary 1,110,000, 6,268,640, 629,661,5 4,127,022,
and services, 29,762,20 22,437,73
Zhilian Comp 000.00 996.44 94.46 011.30
achievement 8.52 0.62
Co., Ltd. any
transference of
computer
software,
electronic
products,
communication
s products, and
digital security
products; self-
29
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
owned house
lease; catering
service; import
and export of
goods.
Acquisition and disposal of subsidiaries during the reporting period
Applicable □ Not applicable
Method of acquisition and
Impact on overall production
Company Name disposal of subsidiaries during
management and performance
the reporting period
No significant impact on overall
Sichuan Dahua Guangxun Photoelectric
Transferred production, operation and
Technology Co., Ltd.
performance
No significant impact on overall
Zhejiang Pixfra Technology Co., Ltd. Established with investment production, operation and
performance
No significant impact on overall
Yiwu Huaxi Technology Co., Ltd. Established with investment production, operation and
performance
No significant impact on overall
Zhejiang Dahua Intelligent IoT Operation
Established with investment production, operation and
Service Co., Ltd.
performance
No significant impact on overall
Nanyang Dahua Intelligent Information
Established with investment production, operation and
Technology Co., Ltd.
performance
No significant impact on overall
Yibin Huahui Information Technology Co.,
Established with investment production, operation and
Ltd.
performance
No significant impact on overall
Chengdu Huazhiwei Technology Co., Ltd. Established with investment production, operation and
performance
No significant impact on overall
Xi'an IMOU Zhilian Technology Co., Ltd. Established with investment production, operation and
performance
No significant impact on overall
Dahua Technology Middle East for
Established with investment production, operation and
Maintenance Single Person Company
performance
No significant impact on overall
Dahua Technology Bangladesh Private
Established with investment production, operation and
Limited
performance
No significant impact on overall
IMOU NETWORK TECHNOLOGY
Established with investment production, operation and
AUSTRALIA PTY LTD
performance
No significant impact on overall
CNG TY TNHH CNG NGH IMOU
Established with investment production, operation and
NETWORK VIT NAM
performance
No significant holding companies and joint stock companies information should be disclosed during the reporting
period.
IX. The structured entity controlled by the Company
□ Applicable Not applicable
30
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
X. Risks and Countermeasures
During the reporting period, there was no significant change in the risks faced by the Company. The Company
has been trying to identify all kinds of risks and actively take countermeasures to avoid and reduce the risks:
1. Risk of COVID-19 pandemic: In the face of COVID-19 pandemic, the Company has taken strict prevention and
control measures to protect the health of employees at home and abroad. At the same time, the Company has
provided scientific and technological solutions for pandemic prevention to facilitate global pandemic prevention and
control.
2. Risk of decline in the payment capacity of local finance: The decline in the payment capacity of local finance
may lead to the slowdown in the growth of industrial demand, extensions of project time, longer periods for companies
to withdraw capital, and customers' payment delay. The Company continues to improve its internal control system,
optimize the project review methods, carefully assess risks in markets, projects, and cash flow, reasonably control
risks and make response plans.
3. Risk of international operations: The Company's products and solutions are available in more than 100 foreign
countries and regions. International business may be exposed to the risks of trade protection in the countries and
regions where it is located. In addition, the repeated outbreak of COVID-19 pandemic around the world has brought
more uncertainty to overseas economic environment, which may adversely affect the business development of the
Company in such places. The Company actively guards against and responds to the risk of international operation by
establishing an overseas compliance risk control system. It continuously strengthens the understanding and
adaptability of the laws and regulations as well as the political and economic environment of the regions where its
business is involved, and formulates differentiated business strategies based on "one country, one policy" in
accordance with the changes in politics and economy of different regions to reduce operational risks.
4. Geopolitical risk: Geopolitical risks are posing an increasing threat to the world. Local conflicts may lead to
economic downturns in some regions and affect the business development of the Company in such locations. The
Company will timely grasp the development trend of the local political environment, make appropriate response quickly,
and reduce the impact of the single market by establishing a global sales network.
5. Risk of technology upgrading: The video surveillance industry is a typical technology-intensive industry, which
is changing extremely fast. If the Company is unable to keep up with development trends in the industry's technology,
to pay full attention to customers' diversified individual needs, and to be followed by sufficient R&D investments, it will
still face the risk of losing market competitiveness due to discontinuous innovation. By increasing R & D investment,
the Company continues to strengthen research on core technologies in AI, video cloud, machine vision and other fields,
and reserves product, technology, management and talent resources for a broader market in the future, so as to
achieve sustainable and steady development of business.
6. Risk of business model change: With the development of network communications, cloud computing, big data,
AI and other technologies, as well as the upgrades of apps in smartphones, the business model in the IoT era may
have an impact on the traditional industry development. If an enterprise cannot grasp opportunities brought about by
the business model transformation in a timely manner, it may face the risk that the original market structure becomes
broken. The Company continues to focus on and study the major changes in global economy, industry and technology,
analyze the industry development logic, and predict the evolution of global security industry and IoT industry, the
continuous integration of video, information communication and digital technologies, diversification and uncertainty of
customer demands. While consolidating the advantageous market, The Company actively explores and pilots new
businesses and new commercial mode, and carry out business and technical layout.
7. Risk of product safety: The Company attaches great importance to and continuously strengthens resource
investment to ensure safe and reliable operations of the security system so as to respond to the product security risks
31
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
on the Internet. However, hackers attacks, computer viruses, physical security vulnerabilities, natural disasters,
accidents, power interruptions, telecommunications failures, terrorism, and warfare events may still occur from time to
time, resulting in security vulnerabilities, system failures, or service interruptions. The Company has founded a cyber
security committee, and set up a professional security team to develop company-level product safety plan, ensuring
product safety in whole process from requirements to design, coding, and testing process. At the same time, the
Company actively carry out technical exchanges and cooperation with mainstream safety enterprises, safety
evaluation agencies and corresponding industry associations to provide customers with safe products and solutions.
8. Intellectual property risk: The promotion of the Company's globalization and self-owned brand strategy will likely
bring about intellectual property risks and patent infringement, which may cause fluctuation in business relations and
public opinions, increasing lawsuits and rising costs. The Company attaches great importance to technological
innovation and has established protection and management mechanism for intangible assets such as innovation
achievements, self-owned brands, trade secrets, and constantly gathers advantageous IP assets; With IP compliance
risk control system, the Company continues to strengthen its ability to understand and grasp the IP laws and
regulations, administrative and judicial environment of the region where the company's business is located in.
9. Risk of supply chain security: In terms of supply chain security, the Company has identified various potential
supply risks through special operations. By making backup plans and diversifying supply sources, the Company has
strengthened the continuous and secure supply of key materials, so as to ensure the security of the supply chain.
10. Exchange rate risk: The Company's export transactions are mostly settled in United States Dollars, while
overseas sales have increased continuously. Therefore, fluctuations in the foreign exchange rate have the potential to
affect the purchasing power of cross-border trade customers and the profits of the Company. As US dollar is the
settlement currency, the Company hedges and avoids the risk of exchange rates by centralized management of
exchange capitals, purchase and payment hedging and other methods.
32
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section IV Corporate Governance
I. Relevant Situation of the Annual General Meeting of Shareholders and the
Extraordinary General Meeting of Shareholders Held in the Reporting Period
1. The shareholders' meetings for this reporting period
Percentage of
Conference Conference Date of Date of Conference
Investors
Session Type Conference Disclosure Resolution
Involved
No proposal was
vetoed at this
shareholders'
meeting. The
First Announcement of
Extraordinary Extraordinary Resolutions at the
General Meeting General 48.86% April 22, 2022 April 23, 2022 First Extraordinary
of Shareholders Meeting General Meeting of
in 2022 Shareholders in 2022
(2022-040) was
published on Juchao
Information Network
(www.cninfo.com.cn).
No proposal was
vetoed at this
shareholders'
meeting. The
Announcement of
2021 Annual Annual Resolutions at 2021
General Meeting General 47.77% May 16, 2022 May 17, 2022 Annual General
of Shareholders Meeting Meeting of
Shareholders (2022-
044) was published
on Juchao
Information Network
(www.cninfo.com.cn).
2. Convening of the interim shareholders' general meetings upon request of the preferred
stockholders whose voting rights are restored
□ Applicable Not applicable
II. Changes of Directors, Supervisors and Senior Management
□ Applicable Not applicable
There were no changes in the directors, supervisors and senior executives of the Company during the reporting period,
which can be found in the 2021 Annual Report.
33
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
III. Profit Distribution and Capital Reserve Converted to Share Capital in the
Reporting Period
□ Applicable Not applicable
The Company plans to pay no cash dividends, no bonus shares and no capital increase by way of capitalization of
provident fund for the half-year
IV. Implementation of the Company’s Equity Incentive Plan, Employee Stock
Ownership Plan or Other Employee Incentive Measures
Applicable □ Not applicable
1. Stock option incentives
1. On April 2, 2022, "2022 Stock Options and Restricted Stock Incentive Plan (Draft)" and its Abstracts were reviewed
and approved at the 27th session of the 7th Board of Directors and the 17th session of the 7th Board of Supervisors. It
was proposed to adopt the Stock Option Incentive Plan to grant a total of 74.864 million share options to 4,345
incentive objects of the Company at the exercise price of RMB 16.86/share, and it is proposed to adopt the Restricted
Stock Incentive Plan to grant a total of 74.864 million restricted shares to 4,345 incentive objects at the grant price of
RMB 8.43/share.
On May 17, 2022, "2022 Stock Options and Restricted Stock Incentive Plan (Draft)" and its Abstracts were reviewed
and approved at the General Meeting of Shareholders, authorizing the Board of Directors to handle relevant matters
on the Company's stock incentive plan.
2. On April 22, 2022, the "Proposal on the Repurchase and Cancellation of Certain Restricted Shares (I)" and the
"Proposal on the Repurchase and Cancellation of Certain Restricted Shares (II)" were reviewed and approved at the
30th session of the 7th Board of Directors and the 20th session of the 7th Board of Supervisors. It was proposed to
repurchase and cancel the restricted shares of first grant of the third period and the reserved grant of the second
period of the 2018 Restricted Stock Incentive Plan, which have not reached the conditions for release and that have
been granted but not yet unlocked by the incentive objects who have resigned, as well as the restricted shares of the
second period of the 2020 Restricted Stock Incentive Plan, which have not reached the conditions for release. A total
of 36,127,260 restricted shares held by 2,889 incentive objects were repurchased and canceled.
On May 17, 2022, the "Proposal on the Repurchase and Cancellation of Certain Restricted Shares (I)" and the
"Proposal on the Repurchase and Cancellation of Certain Restricted Shares (II)" were reviewed and approved at the
General Meeting of Shareholders. The repurchasing and canceling are still in progress.
3. On June 27, 2022, the "Proposal on Adjusting Matters Related to 2022 Stock Option and Restricted Stock Incentive
Plan" and the "Proposal on Granting Stock Option and Restricted Stock to Incentive Objects" were reviewed and
approved at the 32nd session of the 7th Board of Directors and the 22nd session of the 7th Board of Supervisors.
Since some previous incentive objects no longer meet the incentive conditions due to resignation, and some has given
up, due to personal reasons, the subscription of stock options and restricted shares granted by the Company, the
Company has adjusted the Incentive Plan in terms of the number of incentive objects and shares to be granted. The
number of incentive objects to be granted in the incentive plan has been adjusted from 4,345 to 4,265, and the total
number of shares to be granted has been adjusted from 149,728,000 to 149,715,100, of which the number of stock
options to be granted has been adjusted from 74.864 million to 74.8585 million, and the number of restricted shares
has been adjusted from 74.864 million to 74.8566 million. Since the Company has implemented 2021 annual equity
34
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
distribution, the exercise price of stock options has been adjusted from RMB 16.86/share to RMB 16.59/share, and the
grant price of restricted shares has been adjusted from RMB 8.43/share to RMB 8.16 /share. At the same time, the
Board of Directors confirmed the grant conditions and considered that the grant conditions had been met. Therefore, it
was determined to grant stock options and restricted stocks to the incentive objects on June 27, 2022.
On July 12, 2022, the Company disclosed the "Announcement on the Completion of the Registration of Granted Stock
Options under the 2022 Stock Option and Restricted Stock Incentive Plan" and the "Announcement on the Completion
of the Registration of Granted Restricted Stock under the 2022 Stock Option and Restricted Stock Incentive Plan".
74,735,300 stock options granted to 4,249 objects were registered on July 11, 2022, and the 74,737,700 restricted
shares granted to 4,249 objects were listed on Shenzhen Stock Exchange on July 15, 2022.
2. Implementation of employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentive measures
□ Applicable Not applicable
35
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section V Environmental and Social Responsibilities
I. Major Environmental Issues
Whether the listed company and its subsidiaries belong to the key pollutant discharging units announced by the
environmental protection department
□ Yes No
Refer to other environmental information disclosed by key pollutant discharging units
N/A
Measures taken to reduce carbon emissions and their effects during the reporting period
□ Applicable Not applicable
Reasons for not disclosing other environmental information
N/A
II. Social Responsibilities
In 2022, the Company will continue to adhere to the core concept of "customer-centered and striving for the goal" and
the values of "integrity, dedication, responsibility, innovation, cooperation and openness" to constantly practice the
concept of social responsibility, protect the legitimate rights and interests of the investors, consumers, suppliers and
relevant stakeholders, actively create value for its employees and get engaged in environmental public welfare
endeavors to promote the harmonious development of the Company, the society, the economics, the environment,
and the interested parties. For details, refer to the "2021 Social Responsibility Report" and the "2021 Environmental,
Social and Governance Report" published on Juchao Information Network (www.cninfo.com.cn) in April, 2022.
36
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section VI Significant Events
I. Commitments made by the Company’s controlling shareholders, shareholders,
related parties, purchasers and purchasing companies have been fulfilled during
the reporting period and those that have not been fulfilled by the end of the
reporting period
□ Applicable Not applicable
During the reporting period, there was no commitment fulfilled by the Company's controlling shareholders,
shareholders, related parties, purchasers and purchasing companies, and there was no commitment not yet fulfilled by
the end of the reporting period.
II. Non-operational capital occupation over listed companies by controlling
shareholders and their related parties
□ Applicable Not applicable
During the reporting period, there is no non-operational capital occupation over listed companies by controlling
shareholders and their related parties.
III. Illegal external guarantees
□ Applicable Not applicable
No illegal external guarantees during the reporting period.
IV. Appointment and dismissal of accounting firms
Whether the semi-annual report has been audited
□ Yes No
The Company’s semi-annual report has not been audited.
V. Explanations made by the Board of Directors and the Board of Supervisors on
the “Non-Standard Audit Report” from the accounting firm during the reporting
period
□ Applicable Not applicable
VI. Statement by the Board of Directors on the “Non-Standard Audit Report” of the
previous year
□ Applicable Not applicable
VII. Bankruptcy and Restructuring
□ Applicable Not applicable
No such case as bankruptcy and reorganization related event during the reporting period.
37
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
VIII. Litigation Matters
Significant lawsuits and arbitrations
□ Applicable Not applicable
There is no major lawsuit or arbitration during this reporting period.
Other litigation matters
□ Applicable Not applicable
IX. Penalties and Rectification
□ Applicable Not applicable
X. Integrity of the Company, Its Controlling Shareholder and Actual Controller
□ Applicable Not applicable
XI. Significant Related-party Transactions
1. Related transactions relevant to daily operations
□ Applicable Not applicable
No such case as significant related-party transactions connected with daily operations.
2. Related transactions in acquisition or sale of assets or equities
□ Applicable Not applicable
No such case as related-party transactions arising from the acquisition or sale of assets or equity.
3. Significant related-party transactions arising from joint investments on external parties
Applicable □ Not applicable
For details, see "7. Other significant related-party transactions" in this section.
4. Related-party creditor's rights and debts
□ Applicable Not applicable
No such case as related credits and debts during the reporting period.
5. Transactions with related financial companies
□ Applicable Not applicable
No deposit, loan, credit or other financial business between the Company and the related financial company and the
related parties.
38
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
6. Transactions between the financial company controlled by the Company and the related
parties
□ Applicable Not applicable
No deposit, loan, credit or other financial business between the financial company controlled by the Company and the
related parties.
7. Other significant related-party transactions
Applicable □ Not applicable
1. On February 16, 2022, the "Proposal on Adjusting Matters Related to Industrial Funds and Related Transactions"
was reviewed and approved at the 26th session of the 7th Board of Directors. It was proposed that the subscribed
capital contribution of Huayan Capital (Hangzhou) Private Fund Management Co., Ltd. increased from RMB 150.1
million to RMB 258.01 million, of which some original partners increased their capital contributions and four new limited
partners were added. The Company has not increased its capital contribution this time. After the change, the
proportion of the Company capital contribution is 19.38%. The modification procedures at the Bureau of Industry and
Commerce for the above matters were completed in March 2022.
2. On April 22, 2022, the "Proposal on Giving up the Subsidiary's Priority to Accept Transfer and Related-party
Transactions" was reviewed and approved at the 30th session of the 7th Board of Directors, where Zhang Hui, the
shareholder of the subsidiary Zhejiang Huafei Intelligent Technology Co., Ltd., transferred his 13.50% equity of Ningbo
Hualing Venture Capital Investment Partnership (Limited Partnership) at a price of RMB 15,903,000 and agreed that
the Company to give up the above priority to accept transfer. The modification procedures at the Bureau of Industry
and Commerce for the above matters were completed in June, 2022.
Website for disclosing the interim report on significant related-party transactions
Announcement name Disclosure date Website for the disclosure
Announcement on Adjusting Matters Related Juchao Information Network
February 17, 2022
to Industrial Funds and Related Transactions http://www.cninfo.com.cn
Announcement on Giving up the Subsidiary's
Juchao Information Network
Priority to Accept Transfer and Related-party April 23, 2022
http://www.cninfo.com.cn
Transactions
XII. Significant Contracts and Performance
1. Matters on trusteeship, contracting, and leasehold
(1) Matters on trusteeship
□ Applicable Not applicable
No such case as custody during the reporting period.
(2) Contracting
□ Applicable Not applicable
No such case as contracting during the reporting period.
(3) Leasing
Applicable □ Not applicable
Explanations on leases
39
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
During the reporting period, some of the Company's own real estate properties were used for rental, and the leased
real estate property was used for office, warehouse and production workshops. There were no other major real estate
leasing.
Cases that brought the profit and loss accounted for more than 10% of the Company's total profit during the reporting
period
□ Applicable Not applicable
No such leases that brought the profit and loss accounted for more than 10% of the Company's total profit during the
reporting period.
2. Significant guarantees
Applicable □ Not applicable
Unit: ten thousand RMB
External guarantees from the Company and its subsidiaries (excluding guarantees to the subsidiaries)
Announce
ment date Guarant
of Actual Actual ee for
Guarantee Type of Term of Due or
Guaranteed party disclosure occurrence guarantee related
amount guarantee guarantee not
of the date amount parties
guarantee or not
cap
Total amount of
Total amount of guarantees
guarantees actually
approved during the reporting
occurred during the
period (A1)
reporting period (A2)
Total amount of guarantees Total balance of
approved by the end of the guarantees at the end of
reporting period (A3) the reporting period (A4)
Company's guarantees to subsidiaries
Announce
ment date Guarant
of Actual Actual ee for
Guarantee Type of Term of Due or
Guaranteed party disclosure occurrence guarantee related
amount guarantee guarantee not
of the date amount parties
guarantee or not
cap
June 26, Joint liability 2019.06.26-
18,000.00 Yes No
2019 guarantee 2022.06.25
Two years
after the
February 17, Joint liability maturity of
25,000.00 Yes No
2020 guarantee the debts in
the master
contract
Two years
after the
Zhejiang Dahua Joint liability maturity of
April 23, April 13, 2020 24,000.00 Yes No
Vision Technology 898,676.46 guarantee the debts in
2022
Co., Ltd. the master
contract
Three years
after the
February 23, Joint liability maturity of
30,000.00 Yes No
2021 guarantee the debts in
the master
contract
From
November Joint liability
20,000.00 effective Yes No
10, 2021 guarantee
date of the
40
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Commitmen
t Letter to
three years
after the
maturity
date of
each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
Two years
after the
October 13, Joint liability maturity of
22,000.00 No No
2017 guarantee the debts in
the master
contract
Two years
26,845.60 after the
September (40 Joint liability maturity of
No No
21, 2018 million US guarantee the debts in
dollars) the master
contract
April 7,
Joint liability
April 7, 2020 53,000.00 2020-March No No
guarantee
31, 2024
Two years
after the
August 12, Joint liability maturity of
60,000.00 No No
2020 guarantee the debts in
the master
contract
Two years
after the
August 18, Joint liability maturity of
33,000.00 No No
2020 guarantee the debts in
the master
contract
Five years
upon
September 1, Joint liability expiration of
30,000.00 No No
2020 guarantee debt period
of master
contract
Three years
after the
February 4, Joint liability maturity of
100,000.00 No No
2021 guarantee the debts in
the master
contract
May 12,
Joint liability 2021-
May 12, 2021 8,000.00 No No
guarantee December
31, 2022
Three years
after the
Joint liability maturity of
July 26, 2021 44,000.00 No No
guarantee the debts in
the master
contract
August 1, Joint liability August 1,
3,500.00 No No
2020 guarantee 2021-July
41
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
31, 2023
Three years
after the
August 2, Joint liability maturity of
50,000.00 No No
2021 guarantee the debts in
the master
contract
Three years
after the
September Joint liability maturity of
60,000.00 No No
27, 2021 guarantee the debts in
the master
contract
Three years
after the
September Joint liability maturity of
90,000.00 No No
27, 2021 guarantee the debts in
the master
contract
Three years
after the
October 20, Joint liability maturity of
20,000.00 No No
2021 guarantee the debts in
the master
contract
Three years
after the
June 10, Joint liability maturity of
30,000.00 No No
2022 guarantee the debts in
the master
contract
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
June 10, Joint liability date of
20,000.00 No No
2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
One years
upon
Joint liability expiration of
April 29, 2021 10,000.00 Yes No
guarantee debt period
of master
contract
One years
Zhejiang Dahua April 23, upon
40,268.40
Zhilian Co., Ltd. 2022 320,000.00 Joint liability expiration of
April 29, 2021 (60 million Yes No
guarantee debt period
US dollars)
of master
contract
36,912.70 April 30,
Joint liability
April 29, 2021 (55 million 2021-May Yes No
guarantee
US dollars) 14, 2022
November Joint liability From
16,000.00 Yes No
10, 2021 guarantee effective
42
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
date of the
Commitmen
t Letter to
three years
after the
maturity
date of
each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
December
16,107.36
December 3, Joint liability 3, 2021-
(24 million Yes No
2021 guarantee May 31,
US dollars)
2022
Two years
after the
September Joint liability maturity of
30,000.00 No No
24,2020 guarantee the debts in
the master
contract
Three years
after the
Joint liability maturity of
July 26, 2021 16,500.00 No No
guarantee the debts in
the master
contract
Three years
after the
September Joint liability maturity of
15,000.00 No No
27, 2021 guarantee the debts in
the master
contract
Three years
after the
November Joint liability maturity of
20,000.00 No No
10, 2021 guarantee the debts in
the master
contract
One years
upon
December 3, Joint liability expiration of
3,500.00 No No
2021 guarantee debt period
of master
contract
December
3,355.70 (5
December 3, Joint liability 3, 2021-
million US No No
2021 guarantee December
dollars)
2, 2024
March 25,
March 25, Joint liability 2022 -
8,000.00 No No
2022 guarantee December
31, 2023
One years
upon
40,268.40
Joint liability expiration of
April 29, 2022 (60 million No No
guarantee debt period
US dollars)
of master
contract
Joint liability One years
April 29, 2022 1,000.00 No No
guarantee upon
43
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
expiration of
debt period
of master
contract
36,912.70 May 14,
Joint liability
May 14, 2022 (55 million 2022 - May No No
guarantee
US dollars) 14, 2023
Three years
after the
June 10, Joint liability maturity of
16,000.00 No No
2022 guarantee the debts in
the master
contract
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
June 10, Joint liability date of
16,000.00 No No
2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
November Joint liability date of
4,000.00 Yes No
10, 2021 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
Zhejiang Dahua extension
April 23, period
System Engineering 30,000.00
2022
Co., Ltd. Two years
after the
August 30, Joint liability maturity of
1,000.00 No No
2019 guarantee the debts in
the master
contract
Three years
after the
August 2, Joint liability maturity of
5,000.00 No No
2021 guarantee the debts in
the master
contract
Three years
after the
November Joint liability maturity of
6,000.00 No No
10, 2021 guarantee the debts in
the master
contract
44
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Three years
after the
June 10, Joint liability maturity of
4,000.00 No No
2022 guarantee the debts in
the master
contract
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
June 10, Joint liability date of
4,000.00 No No
2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
April 25,
700.84 (1 Joint liability
April 20, 2021 2021-April Yes No
million Euro) guarantee
25, 2022
Dahua Technology April 23,
60,000.00 March 25,
(HK) Limited 2022 1,342.28 (2
March 25, Joint liability 2022 -
million US No No
2022 guarantee March 25,
dollars)
2023
September
671.14 (1
September 1, Joint liability 1, 2021-
million US No No
DAHUA 2021 guarantee December
dollars)
TECHNOLOGY April 23, 1, 2023
10,000.00
MEXICO S.A. DE 2022 October 21,
3,355.70 (5
C.V October 21, Joint liability 2021-
million US No No
2021 guarantee October 20,
dollars)
2022
Six months
upon
February 4, Joint liability expiration of
2,000.00 Yes No
2021 guarantee debt period
of master
contract
Three years
after the
February 23, Joint liability maturity of
10,000.00 Yes No
2021 guarantee the debts in
the master
contract
Hangzhou
Two years
Huacheng Network April 23,
45,000.00 after the
Technology Co., Ltd. 2022
August 30, Joint liability maturity of
5,000.00 No No
2019 guarantee the debts in
the master
contract
Three years
after the
Joint liability maturity of
July 26, 2021 5,500.00 No No
guarantee the debts in
the master
contract
Three years
September Joint liability
5,000.00 after the No No
27, 2021 guarantee
maturity of
45
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
the debts in
the master
contract
August 12,
943.83 2020-
Dahua Technology April 23, August 12, Joint liability
2,000.00 (GBP 1.16 Signature of No No
UK Limited 2022 2020 guarantee
million ) notice of
termination
November
939.60 (1.4
Dahua Technology April 23, November Joint liability 19, 2021-
5,000.00 million US No No
USA Inc. 2022 19, 2021 guarantee November
dollars)
18, 2022
Three years
after the
1,342.28 (2
Joint liability maturity of
April 29, 2021 million US Yes No
guarantee the debts in
dollars)
the master
contract
Three years
after the
Joint liability maturity of
April 29, 2022 1,000.00 No No
guarantee the debts in
the master
contract
Three years
after the
1,342.28 (2
Joint liability maturity of
May 16, 2022 million US No No
guarantee the debts in
dollars)
the master
Zhejiang Dahua
May 17, contract
Storage Technology 4,323.54
2022 From
Co., Ltd.
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
June 10, Joint liability date of
1,000.00 No No
2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
Three years
after the
Zhejiang
April 23, Joint liability maturity of
Huachuang Vision 1,000.00 May 11, 2021 5,000.00 Yes No
2022 guarantee the debts in
Technology Co., Ltd.
the master
contract
From
effective
date of the
Commitmen
t Letter to
Zhejiang Fengshi April 23, 3,000.00 November Joint liability three years
2,000.00 Yes No
Technology Co., Ltd. 2022 10, 2021 guarantee after the
maturity
date of
each note
discounted
by the
46
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
June 10, Joint liability date of
2,000.00 No No
2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
November Joint liability date of
1,000.00 Yes No
10, 2021 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
Three years
after the
Wuxi Dahua Ruipin April 23, October 20, Joint liability maturity of
3,000.00 1,000.00 No No
Technology Co., Ltd. 2022 2021 guarantee the debts in
the master
contract
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
June 10, Joint liability date of
1,000.00 No No
2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
Zhejiang Huaxiao April 23, 2,000.00 November 500.00 Joint liability From Yes No
47
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Technology Co., Ltd. 2022 10, 2021 guarantee effective
date of the
Commitmen
t Letter to
three years
after the
maturity
date of
each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
June 10, Joint liability date of
1,000.00 No No
2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
September
September Joint liability 27,2021-
3,000.00 No No
27, 2021 guarantee September
18,2022
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
November Joint liability date of
5,000.00 Yes No
10, 2021 guarantee each note
discounted
Xi'an Dahua Zhilian April 23, by the
20,000.00
Technology Co., Ltd. 2022 China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
June 10, Joint liability t Letter to
5,000.00 No No
2022 guarantee three years
after the
maturity
date of
each note
48
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
discounted
by the
China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
November Joint liability date of
5,000.00 Yes No
10, 2021 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
Zhengzhou Dahua
April 23, period
Zhian Information 15,000.00
2022 From
Technology Co., Ltd.
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
June 10, Joint liability date of
5,000.00 No No
2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
November Joint liability date of
5,000.00 Yes No
10, 2021 guarantee each note
Chengdu Dahua
discounted
Zhian Information April 23, 15,000.00
by the
Technology Service 2022
China
Co., Ltd.
Merchants
Bank within
the credit
extension
period
From
effective
June 10, Joint liability
10,000.00 date of the No No
2022 guarantee
Commitmen
t Letter to
49
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
three years
after the
maturity
date of
each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
Changsha Dahua April 23, June 10, Joint liability date of
1,000.00 1,000.00 No No
Technology Co., Ltd. 2022 2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
Zhejiang Pixfra April 23, June 10, Joint liability date of
1,000.00 500.00 No No
Technology Co., Ltd. 2022 2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
Zhejiang Huafei
April 23, June 10, Joint liability date of
Intelligent 1,000.00 500.00 No No
2022 2022 guarantee each note
Technology Co., Ltd.
discounted
by the
China
Merchants
Bank within
the credit
extension
period
50
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
Zhejiang Huajian April 23, June 10, Joint liability date of
1,000.00 500.00 No No
Technology Co., Ltd. 2022 2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
From
effective
date of the
Commitmen
t Letter to
three years
after the
maturity
Hangzhou Xiaohua April 23, June 10, Joint liability date of
1,000.00 500.00 No No
Technology Co., Ltd. 2022 2022 guarantee each note
discounted
by the
China
Merchants
Bank within
the credit
extension
period
Zhejiang Dahua
April 23,
Jinzhi Technology 1,000.00 No such case during the reporting period
2022
Co., Ltd.
Guangxi Dahua
April 23,
Information 1,000.00 No such case during the reporting period
2022
Technology Co., Ltd.
Zhejiang Dahua
Security Network April 23,
1,000.00 No such case during the reporting period
Operation Service 2022
Co., Ltd.
Guangxi Dahua April 23,
1,000.00 No such case during the reporting period
Technology Co., Ltd. 2022
Anhui Dahua Zhilian
April 23,
Information 1,000.00 No such case during the reporting period
2022
Technology Co., Ltd.
Anhui Dahua Zhishu
April 23,
Information 1,000.00 No such case during the reporting period
2022
Technology Co., Ltd.
Chengdu Dahua
April 23,
Zhilian Information 1,000.00 No such case during the reporting period
2022
Technology Co., Ltd.
Chengdu Dahua
Zhishu Information April 23,
1,000.00 No such case during the reporting period
Technology Service 2022
Co., Ltd.
Chengdu Huishan
April 23,
Smart Network 1,000.00 No such case during the reporting period
2022
Technology Co., Ltd.
Chengdu Zhichuang April 23,
1,000.00 No such case during the reporting period
Yunshu Technology 2022
51
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Co., Ltd.
Hangzhou Fuyang
April 23,
Hua'ao Technology 1,000.00 No such case during the reporting period
2022
Co., Ltd.
Hangzhou
April 23,
Huacheng Software 1,000.00 No such case during the reporting period
2022
Co., Ltd.
Henan Dahua
April 23,
Zhilian Information 1,000.00 No such case during the reporting period
2022
Technology Co., Ltd.
Hunan Dahua
April 23,
Zhilong Information 1,000.00 No such case during the reporting period
2022
Technology Co., Ltd.
Tianjin Dahua
April 23,
Information 1,000.00 No such case during the reporting period
2022
Technology Co., Ltd.
Tianjin Huajian April 23,
1,000.00 No such case during the reporting period
Technology Co., Ltd. 2022
Yiwu Huaxi April 23,
1,000.00 No such case during the reporting period
Technology Co., Ltd. 2022
Zhejiang Dahua
Intelligent IoT April 23,
1,000.00 No such case during the reporting period
Operation Service 2022
Co., Ltd.
Zhejiang Huakong April 23,
1,000.00 No such case during the reporting period
Software Co., Ltd. 2022
Dahua Technology April 23,
100.00 No such case during the reporting period
Japan LLC 2022
DAHUA EUROPE April 23,
10,000.00 No such case during the reporting period
B.V. 2022
Dahua Technology April 23,
200.00 No such case during the reporting period
Singapore Pte.Ltd. 2022
Dahua Technology April 23,
2,000.00 No such case during the reporting period
Poland Sp.Zo.O. 2022
Dahua Technology April 23,
2,000.00 No such case during the reporting period
Hungary Kft 2022
Dahua Technology April 23,
4,000.00 No such case during the reporting period
India Private Limited 2022
DAHUA
TECHNOLOGY
BRASIL
April 23,
COMRCIO E 2,000.00 No such case during the reporting period
2022
SERVIOS EM
SEGURANA
ELETRNICA LTDA
Dahua Technology April 23,
1,000.00 No such case during the reporting period
Middle East FZE 2022
Dahua Technology April 23,
3,000.00 No such case during the reporting period
Perú S.A.C 2022
Dahua Technology
April 23,
Rus Limited Liability 2,000.00 No such case during the reporting period
2022
Company
Dahua Technology April 23,
500.00 No such case during the reporting period
Australia PTY LTD 2022
Dahua Technology
April 23,
South Africa 500.00 No such case during the reporting period
2022
Proprietary Limited
Dahua Technology April 23,
1,000.00 No such case during the reporting period
Canada INC. 2022
Dahua Guvenlik
April 23,
Teknolojileri Sanayi 1,000.00 No such case during the reporting period
2022
ve Ticaret A.S.
Dahua Technology April 23,
100.00 No such case during the reporting period
SRB d.o.o. 2022
Dahua Technology April 23,
100.00 No such case during the reporting period
Bulgaria EOOD 2022
52
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
April 23,
Dahua Iberia, S.L. 100.00 No such case during the reporting period
2022
Dahua Security
April 23,
Malaysia SDN. 100.00 No such case during the reporting period
2022
BHD.
Dahua Technology April 23,
100.00 No such case during the reporting period
Kazakhstan LLP 2022
PT. Dahua Vision
April 23,
Technology 100.00 No such case during the reporting period
2022
Indonesia
Dahua Technology
April 23,
Korea Company 100.00 No such case during the reporting period
2022
Limited
Dahua Technology April 23,
100.00 No such case during the reporting period
S.R.L. 2022
Dahua Technology April 23,
700.00 No such case during the reporting period
France SAS 2022
April 23,
Dahua Vision LLc 500.00 No such case during the reporting period
2022
Dahua Technology
April 23,
New Zealand 100.00 No such case during the reporting period
2022
Limited
Dahua Technology April 23,
300.00 No such case during the reporting period
GmbH 2022
Dahua Technology April 23,
2,000.00 No such case during the reporting period
Colombia S.A.S. 2022
Dahua Technology April 23,
100.00 No such case during the reporting period
Panama S.A. 2022
Dahua Technology April 23,
100.00 No such case during the reporting period
Chile SpA 2022
Dahua Technology
April 23,
Tunisia Limited 100.00 No such case during the reporting period
2022
Liability Company
Dahua Technology April 23,
100.00 No such case during the reporting period
Kenya Limited 2022
Dahua Technology April 23,
100.00 No such case during the reporting period
China (Pvt) Ltd 2022
Dahua Technology
April 23,
Pakistan (private) 100.00 No such case during the reporting period
2022
Limited
Dahua Technology April 23,
100.00 No such case during the reporting period
Morocco SARL 2022
Dahua Argentina April 23,
100.00 No such case during the reporting period
S.A. 2022
Dahua Technology April 23,
100.00 No such case during the reporting period
Czech s.r.o. 2022
Dahua Technology April 23,
100.00 No such case during the reporting period
Denmark ApS 2022
Dahua Technology April 23,
100.00 No such case during the reporting period
Netherlands B.V. 2022
Dahua Technology April 23,
100.00 No such case during the reporting period
(Thailand) Co.,Ltd. 2022
Dahua Technology April 23,
100.00 No such case during the reporting period
Italy S.R.L. 2022
Lorex Technology April 23,
1,000.00 No such case during the reporting period
Inc. 2022
April 23,
Lorex Corporation 1,000.00 No such case during the reporting period
2022
Total amount of
Total amount of guarantees to guarantees to
subsidiaries approved during 1,495,000.00 subsidiaries actually 207,865.66
the reporting period (B1) occurred during the
reporting period (B2)
Total amount of guarantees to 1,495,000.00 Total balance of 933,977.23
53
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
subsidiaries approved by the guarantees actually paid
end of the reporting period (B3) to subsidiaries at the end
of the reporting period
(B4)
Subsidiaries' guarantees to subsidiaries
Announce
ment date Guarant
of Actual Actual ee for
Guarantee Type of Term of Due or
Guaranteed party disclosure occurrence guarantee related
amount guarantee guarantee not
of the date amount parties
guarantee or not
cap
Total amount of
Total amount of guarantees to guarantees to
subsidiaries approved during subsidiaries actually
the reporting period (C1) occurred during the
reporting period (C2)
Total of actual guarantee
Total amount of guarantees to
balance for subsidiaries
subsidiaries approved at the
at the end of the
end of the reporting period (C3)
reporting period (C4)
Total amount of company guarantees (namely sum of the previous three major items)
Total amount of
Total amount of guarantees guarantees actually
approved during the reporting 1,495,000.00 occurred during the 207,865.66
period (A1+B1+C1) reporting period
(A2+B2+C2)
Total balance of
Total amount of guarantees guarantees actually paid
approved by the end of the 1,495,000.00 at the end of the 933,977.23
reporting period (A3+B3+C3) reporting period
(A4+B4+C4)
Total amount of actual guarantees (A4+B4+C4) as a
38.34%
percentage of the Company's net assets
Including:
Balance of guarantees to the shareholders, actual
controllers and their related parties (D)
Balance of debt guarantees directly or indirectly offered to
guaranteed objects with asset-liability ratio exceeding 70% 894,477.23
(E)
Amount of the guarantees with the total volume exceeding
50% of the net assets (F)
Total amount of the above three guarantees (D+E+F) 894,477.23
Notes on unexpired guarantees with guarantee
responsibilities occurred or possible joint liabilities within the
reporting period (if any)
Notes on providing external guarantees in violation of
specified procedures (if any)
3. Entrusted financing
Applicable □ Not applicable
Unit: ten thousand RMB
Impairment
Overdue amount accrued
Entrusted Unexpired
Specific type Funding source outstanding for overdue
amount balance
amount financial
management
Financial Equity Fund 50,000.00
54
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
products of
securities
companies
Total 50,000.00
Specific matters on high-risk entrusted capital management with a large amount for a single item, or with low security,
poor liquidity and no capital preservation guarantee.
Applicable □ Not applicable
Unit: ten thousand RMB
Act Wh
Am
ual ethe
ount
Na Act reco r
of
me ual very ther Item
Ref prov Wh
of Tru profi of e over
Pay ere isio ethe
trust stee t profi will vie
men nce Exp n r it
ee org Inve and ts be w
Ter t for ecte for pas
org aniz Cap stm loss and entr and
Pro Star min dete ann d imp sed
aniz atio Am ital ent duri loss uste relat
duct ting atio rmin uali ear airm the
atio n ount Sou dire ng es d ed
type date n atio zed ning ent lega
n (or rce ctio the duri fina que
date n rate s (if in l
(or trust n rep ng ncia ry
met of any) the proc
nam ee) ortin the l inde
hod retu curr edu
e of type g rep plan x (if
rn ent res
trust peri ortin in any)
year
ee) od g the
(if
peri futu
any)
od re
Priv
ate
equi
ty
fund
pro
duct
s, Pay
fixe men
Ass d t of
Guo
Sec et Feb inco prin
sen Feb
uriti Man Equ ruar me cipa
Sec 50,0 ruar - Une
es age ity y ass l
uriti 00.0 y 9, 1,01 xpir Yes No
com men Fun 10, ets, and
es 0 203 0.49 ed
pan t d 202 equi inco
Co., 1
y Pla 1 ty me
Ltd.
n ass at
ets, mat
publ urity
ic
equi
ty
hybr
id
fund
s
50,0 -
Total 00.0 -- -- -- -- -- -- 1,01 -- -- -- --
0 0.49
55
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Cases of entrusted financing expected to be unable to recover the principal or cases that may result in impairment
□ Applicable Not applicable
4. Other Significant Contracts
□ Applicable Not applicable
No such case as other significant contract during the reporting period.
XIII. Explanations on Other Significant Matters
Applicable □ Not applicable
On March 26, 2021, the "Proposal on the Company's Plan for the Non-public Issuance of Shares in 2021" and
other related proposals were reviewed and approved at the Company's 12 th session of the 7th Board of Directors' and
the 8th session of the 7th Board of Supervisors. The company planned to issue 312,151,600 non-public shares, and the
total amount of funds raised did not exceed RMB 5.6 billion (inclusive). The target company of this non-public issuance
is China Mobile Capital Holdings Co., Ltd.(hereinafter referred to as China Mobile Capital), which is the wholly-owned
subsidiary of China Mobile Communications Group Co., Ltd. Matters related to the non-public issuance have been
reviewed and approved by the 2020 shareholders’ meeting.
The Company disclosed, respectively on June 3, 2021 and June 17, 2021, the "Announcement on the Acceptance
of the Non-public Issuance Application by the CSRC" and the "Announcement on Receiving the First Feedback Given
by the CSRC on the Review of Administrative Permits" (Announcement number: 2021-073, 2021-078).
On July 5, 2021, the "Proposal on Adjusting the Company's Plan for the Non-public Issuance of Shares in 2021"
and other proposals related to the issuance were reviewed and approved at the Company's 19 th session of the 7th
Board of Directors and the 12th session of the 7th Board of Supervisors. As adjusted, the Company planned to issue no
more than 288,624,700 non-public shares, and the total amount of funds raised will not exceed RMB 5.1 billion
(inclusive). The target company of this non-public issuance is China Mobile Capital Holdings Co., Ltd., which is the
wholly-owned subsidiary of China Mobile Communications Group Co., Ltd. On the same day, the Company disclosed
the "Reply of Zhejiang Dahua Technology Co., Ltd. to the Feedback on the Application for the Non-public Issuance of
Shares".
On November 30, 2021, the "Proposal on Adjusting the Company’s Plan for the Non-public Issuance of Shares in
2021" and other proposals related to the issuance were reviewed and approved at the twenty-third session of the
seventh Board of Directors and the sixteenth session of the seventh Board of Supervisors of the Company. The target
company of this non-public issuance was changed from China Mobile Capital Holdings Co., Ltd. to its parent company
China Mobile Communications Group Co., Ltd.
On April 11, 2022, the Company convened the 29th session of the 7th Board of Directors, at which the "Proposal
on Extending the Validity Period of Resolutions and Authorizations of the General Meeting of Shareholders on Non-
Public Issuance of Shares" was reviewed and approved. It was approved by the board of directors that the validity
period of resolutions on non-public issuance of shares and the validity period of authorizing the board of directors to
handle matters related to the non-public issuance of shares to be extended by 12 months from the expiration date of
the original validity period.
On April 18, 2022, the application for this non-public issuance was approved by the Issuance Review Committee
of CSRC.
On April 28, 2022, the Company announced that it had received the "Reply on Approving the Non-public Issuance
of Shares by Zhejiang Dahua Technology Co., Ltd." issued by China Securities Regulatory Commission.
56
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
On June 3, 2022, due to the implementation of the 2021 equity distribution, the Company's non-public issuance
price was adjusted from RMB 17.67/share to RMB 17.40/share, and the number of shares issued was adjusted from
no more than 288,624,700 shares (inclusive) to no more than 293,103,400 shares (inclusive).
The announcements above have been disclosed through the designated media Securities Times and Juchao
Information Network (http://www.cninfo.com.cn).
XIV. Significant Events of the Company’s Subsidiaries
□ Applicable Not applicable
57
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section VII Changes in Shares and Information about
Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before the change Increase or decrease in the change (+, -) After the change
Shares
Shares converte
Percenta Bonus Percenta
Number newly d from Others Subtotal Number
ge shares ge
issued capital
reserves
I. Shares
with - -
1,079,96 1,035,29
limited 36.06% 44,670,1 44,670,1 34.57%
2,794 2,687
sales 07 07
condition
1.
Shares
held by
state
2.
Shares
held by
state-
owned
legal
persons
3.
- -
Other 1,079,95 1,035,28
36.06% 44,670,1 44,670,1 34.57%
domestic 3,194 3,087
07 07
shares
Of
which:
Shares
held by
domestic
legal
persons
Shar
es held
- -
by 1,079,95 1,035,28
36.06% 44,670,1 44,670,1 34.57%
domestic 3,194 3,087
07 07
natural
persons
4.
9,600 0.00% 9,600 0.00%
Foreign
58
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
shares
Of
which:
Shares
held by
foreign
legal
persons
Shar
es held
by
9,600 0.00% 9,600 0.00%
foreign
natural
persons
II.
Shares
1,914,58 44,670,1 44,670,1 1,959,25
without 63.94% 65.43%
7,936 07 07 8,043
restrictio
ns
1.
RMB 1,914,58 44,670,1 44,670,1 1,959,25
63.94% 65.43%
Common 7,936 07 07 8,043
Stock
2.
Foreign
shares
listed in
China
3.
Foreign
shares
listed in
foreign
countries
4.
Other
2,994,55 2,994,55
III. Total 100.00% 0 0 100.00%
0,730 0,730
Reasons for changes in shares
Applicable □ Not applicable
At the beginning of each year, the number of shares locked by executives of the Company shall be reverified
according to 75% of the total number of shares held by executives.
Approval for changes in shares
□ Applicable Not applicable
Transfer for changes in shares
□ Applicable Not applicable
The progress on share repurchase
□ Applicable Not applicable
The progress on reduction of re-purchase shares by means of centralized competitive bidding
59
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
□ Applicable Not applicable
Effects of changes in shares on the basic earnings per share ("EPS"), diluted EPS, net assets per share, attributable to
common shareholders of the Company, and other financial indexes over the last year and last period
□ Applicable Not applicable
Other contents that the Company considers necessary or are required by the securities regulatory authorities to
disclose
□ Applicable Not applicable
2. Changes in restricted stocks
Applicable □ Not applicable
Unit: share
Number Of Number of Number of Number of
Shares With unlocked increased shares with
Name of Limited Sales shares with shares with limited sales Reasons for Date of
Shareholder Condition At limited sales limited sales condition at limited sales unlocking
The Beginning condition in condition in the end of the
Of The Period current period current period period
According to According to
the relevant the relevant
provisions of provisions of
Fu Liquan 767,901,735 0 0 767,901,735
executives executives
shares shares
management management
According to According to
the relevant the relevant
Zhu provisions of provisions of
160,577,490 40,144,373 0 120,433,117
Jiangming executives executives
shares shares
management management
According to According to
the relevant the relevant
provisions of provisions of
Chen Ailing 53,447,110 0 0 53,447,110
executives executives
shares shares
management management
Per relevant Per relevant
management management
regulations of regulations of
equity equity
Wu Jun 51,938,164 0 0 51,938,164
incentives and incentives and
senior senior
managers' managers'
shares shares
Per relevant Per relevant
management management
regulations of regulations of
Zhang equity equity
3,032,170 757,500 0 2,274,670
Xingming incentives and incentives and
senior senior
managers' managers'
shares shares
Per relevant Per relevant
Zhao Yuning 2,025,000 506,250 0 1,518,750
management management
60
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
regulations of regulations of
equity equity
incentives and incentives and
senior senior
managers' managers'
shares shares
Per relevant Per relevant
management management
regulations of regulations of
equity equity
Ying Yong 2,016,937 504,234 0 1,512,703
incentives and incentives and
senior senior
managers' managers'
shares shares
Per relevant Per relevant
management management
regulations of regulations of
equity equity
Wu Jian 1,912,001 477,750 0 1,434,251
incentives and incentives and
senior senior
managers' managers'
shares shares
Per relevant Per relevant
management management
regulations of regulations of
equity equity
Zhu Jiantang 1,590,169 397,500 0 1,192,669
incentives and incentives and
senior senior
managers' managers'
shares shares
Per relevant Per relevant
management management
regulations of regulations of
equity equity
Jiang Xiaolai 1,567,500 390,000 0 1,177,500
incentives and incentives and
senior senior
managers' managers'
shares shares
Per relevant Per relevant
management management
Other senior regulations of regulations of
executives equity equity
33,954,518 1,492,500 0 32,462,018
and incentive incentives and incentives and
targets senior senior
managers' managers'
shares shares
Total 1,079,962,794 44,670,107 0 1,035,292,687 -- --
II. Issuance and listing of securities
Applicable □ Not applicable
Name of Number of
Issuance Transactio
the stock Quantity approved
Issue price (or Listing n Disclosure Date of
and its of listed
Date interest date terminatio Index Disclosure
derivative issuance transactio
rate) n date
securities ns
61
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Stocks
Juchao
Informatio
June 27, 74,737,70 June 15, 74,737,70 July 12,
DAHUA 8.16 n Website
2022 0 2022 0 2022
Announce
ment
Convertible corporate bonds, separately-traded convertible corporate bonds, corporate bonds
Other derivative securities
Description of the issuance of securities during the reporting period
According to the "Proposal on the Company's Stock Option and Restricted Stock Incentive Plan in 2022 (Draft)
and its Abstracts”, which has been reviewed and approved at the shareholders' meeting of the Company in 2021, the
"Proposal on Adjusting Related Issues of the Stock Option and Restricted Stock Incentive Plan of 2022" and the
"Proposal on Granting Stock Option and Restricted Stocks to Incentive Targets" which have been reviewed and
approved at the 32nd meeting of the 7th Board of Directors. In June 27, 2022, the Company granted 74,737,700
shares of restricted stocks to 4,249 incentive targets, with a subscription price of RMB 8.16 per share. These stocks
were listed on Shenzhen Stock Exchange on July 15, 2022.
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total Number of Preferred
Total Number Of
Shareholders (If Any) (Refer to Note
Common Shareholders
165,220 8) Whose Voting Rights have been 0
At The End Of The
Recovered at the End of the
Reporting Period
Reporting Period
Shareholding list of common shareholders with over 5% shares or top ten shareholders
Number of Number of Pledges, markings or
Number of
common common freezings
Sharehold Changes common
Name of Nature Of shares held shares
ing in the shares held State
Sharehold Sharehold at the end held with
Percentag reporting without Of
er er of the limited Number
e period limited sales Share
reporting sales
condition s
period conditions
Domestic
1,023,868,9 767,901,7 Pledg
Fu Liquan Natural 34.19% 0 255,967,245 160,927,942
80 35 e
Person
Hong
Kong Overseas
170,253,83 46,612,4
Securities Legal 5.69% 0 170,253,835 0
5 94
Clearing Person
Co. Ltd.
Domestic
Zhu 160,577,49 120,433,1 Pledg
Natural 5.36% 0 40,144,373 9,700,000
Jiangming 0 17 e
Person
Domestic
Chen 53,447,11 Pledg
Natural 2.38% 71,262,813 0 17,815,703 21,100,000
Ailing 0 e
Person
Domestic
51,938,16
Wu Jun Natural 2.31% 69,250,886 0 17,312,722 0
4
Person
National Others 1.37% 41,000,969 0 0 41,000,969 0
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Social
Security
Fund 103
Domestic
China
Non-state-
Securities
owned 1.32% 39,611,241 0 0 39,611,241 0
Finance
Legal
Co., Ltd.
Person
China State-
-
Galaxy owned
1.20% 35,878,760 2,293,33 0 35,878,760 0
Securities Legal
9
Co., Ltd. Person
Shanghai
Greenwoo
ds Assets
Managem
ent Co., Others 0.69% 20,803,816 0 0 20,803,816 0
Ltd. -
Greenwoo
ds Global
Fund
Fidelity
Investmen
ts
Managem Overseas
2,518,70
ent (Hong Legal 0.51% 15,224,580 0 15,224,580 0
0
Kong) Person
Limited -
funds of
customers
Strategic investors or
general legal entities
becoming shareholders
of the top 10 common
N/A
shares as a result of the
placement of new
shares (if any) (see
Note 3)
Description of the
association relationship Mr. Fu Liquan And Ms. Chen Ailing Are Husband And Wife. The Company Is Unaware Of
or concerted action of Whether Other Shareholders Have Associated Relationship Or Are Persons Acting In
above-mentioned Concert.
shareholders
Explanation of the
above shareholders
involved in
N/A
proxy/trustee voting
rights and abstention
from voting rights
Special note on the
existence of repurchase
special accounts
N/A
among the top 10
shareholders (if any)
(see Note 11)
Shareholding list of top ten common shareholders without limited sales condition
63
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Number of common shares held without Type of shares
Name of Shareholder limited sales condition at the end of the
reporting period Type of shares Number
Fu Liquan 255,967,245 RMB common stock 255,967,245
Hong Kong Securities Clearing
170,253,835 RMB common stock 170,253,835
Co. Ltd.
National Social Security Fund
41,000,969 RMB common stock 41,000,969
103
Zhu Jiangming 40,144,373 RMB common stock 40,144,373
China Securities Finance Co.,
39,611,241 RMB common stock 39,611,241
Ltd.
China Galaxy Securities Co.,
35,878,760 RMB common stock 35,878,760
Ltd.
Shanghai Greenwoods Assets
Management Co., Ltd. - 20,803,816 RMB common stock 20,803,816
Greenwoods Global Fund
Chen Ailing 17,815,703 RMB common stock 17,815,703
Wu Jun 17,312,722 RMB common stock 17,312,722
Fidelity Investments
Management (Hong Kong) 15,224,580 RMB common stock 15,224,580
Limited - funds of customers
Explanation on
associated relationship
or persons acting in
concert among top ten
common shareholders Mr. Fu Liquan And Ms. Chen Ailing Are Husband And Wife. The Company Is Unaware Of
without limited shares, Whether Other Shareholders Have Associated Relationship Or Are Persons Acting In
and between top ten Concert.
common shareholders
without limited shares
and top ten common
shareholders
Explanation on Top Ten
Common Shareholders’
Participation in
N/A
Securities Margin
Trading (If Any) (see
Note 4)
Whether the Company's top ten common shareholders or top ten common shareholders without limited shares agree
on any repurchase transaction in the reporting period
□ Yes No
None of the Company's top ten common shareholders or top ten common shareholders without limited shares agreed
on repurchase in the reporting period.
IV. Shareholding Changes of Directors, Supervisors and Senior Executives
□ Applicable Not applicable
There were no changes to the shareholding of the directors, supervisors and senior executives of the Company during
the reporting period, which can be found in the 2021 Annual Report.
V. Change of the Controlling Shareholders and Actual Controller
Change of the controlling shareholders in the reporting period
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
□ Applicable Not applicable
No change has happened to the controlling shareholder in the reporting period of the Company
Change of the actual controller in the reporting period
□ Applicable Not applicable
No change has happened to the actual controller in the reporting period
65
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section VIII Information of Preferred Shares
□ Applicable Not applicable
There are no preferred shares in the reporting period.
66
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section IX Situation on Corporate Bonds
□ Applicable Not applicable
67
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section X Financial Report
I. Audit Reports
Has the semi-annual report been audited
□ Yes No
The Company’s semi-annual report has not been audited.
II. Financial Statements
Units of financial reports in the notes: RMB
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co., Ltd.
June 30, 2022
Unit: RMB
Item June 30, 2022 January 1, 2022
Current Assets:
Cash and Bank Balances 6,610,686,838.87 7,731,002,784.77
Deposit Reservation for Balance
Loans to Banks and Other
Financial Institutions
Trading Financial Assets 1,470,000.00 2,602,173.53
Derivative Financial Assets
Notes receivable 810,471,316.10 839,861,562.35
Accounts receivable 15,191,656,060.47 14,654,490,643.49
Receivables Financing 676,732,626.54 792,709,781.57
Prepayments 221,554,802.54 171,034,046.65
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves
Receivable
Other Receivables 549,033,072.86 546,477,779.16
Including: interest receivable
Dividends Receivable 2,574,911.88
Buying Back the Sale of Financial
Assets
Inventory 6,493,192,148.56 6,810,041,288.82
Contract Assets 189,237,373.86 163,432,100.37
Holding for-sale assets
Non-current Assets Due within 1
522,097,288.55 602,567,293.78
Year
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Other Current Assets 586,485,117.83 1,190,585,874.34
Subtotal of Current Assets 31,852,616,646.18 33,504,805,328.83
Non-current Assets:
Granting of loans and advances
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables 1,718,647,629.21 1,891,368,121.39
Long-term Equity Investment 1,055,226,461.37 1,243,872,752.91
Investment in Other Equity
Instruments
Other Non-current Financial Assets 1,110,986,119.72 945,619,965.97
Investment Property 299,839,429.94 311,065,023.43
Fixed Assets 2,531,115,302.13 2,187,435,714.17
Projects under Construction 2,149,024,114.06 1,992,834,055.03
Productive Biological Assets
Oil and gas assets
Right-of-use Assets 279,009,442.07 248,577,371.97
Intangible Assets 581,011,626.01 584,129,741.43
Development Expenditure
Goodwill 42,685,490.30 42,685,490.30
Long-term Deferred Expenses 48,028,410.98 45,876,764.73
Deferred Income Tax Assets 1,083,666,865.85 960,374,829.82
Other Non-current Assets 123,077,496.01 97,226,861.99
Subtotal of Non-current Assets 11,022,318,387.65 10,551,066,693.14
Total Assets 42,874,935,033.83 44,055,872,021.97
Current Liabilities:
Short-term loan 634,697,133.66 325,648,230.98
Borrowings from the Central Bank
Borrowings from Banks and Other
Financial Institutions
Transactional financial liabilities 22,938,892.17
Derivative Financial Liabilities
Notes Payable 3,752,874,720.97 4,472,998,965.03
Accounts Payable 5,972,721,336.20 7,329,740,650.71
Received Prepayments
Contract liabilities 932,307,353.68 864,989,993.78
Financial Assets Sold for
Repurchase
Deposit Taking and Interbank
Deposit
Receiving from Vicariously Traded
Securities
Receiving from Vicariously Sold
69
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Securities
Payroll payable 698,520,320.33 1,964,503,166.13
Tax Payable 481,342,486.19 677,076,594.01
Other Payables 964,959,710.58 677,752,701.47
Including: interest payable
Dividends Payable 16,060,762.89
Service Charge and Commission
Payable
Reinsurance Accounts Payable
Holding for-sale liabilities
Non-current Liabilities Due within 1
1,993,581,469.98 890,848,742.47
Year
Other Current Liabilities 157,286,249.40 208,631,381.45
Subtotal of Current Liabilities 15,611,229,673.16 17,412,190,426.03
Non-current Liabilities:
Insurance Contract Reserves
Long-term loan 1,505,050,000.00 1,552,500,000.00
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities 155,193,192.52 140,606,139.33
Long-term Payables
Long-term payroll payable
Expected Liabilities 267,279,941.15 297,851,786.62
Deferred Income 108,054,893.88 103,218,676.13
Deferred Income Tax Liabilities 81,715,785.09 61,778,504.44
Other Non-current Liabilities 258,269,595.53 317,381,981.28
Subtotal of Non-current Liabilities 2,375,563,408.17 2,473,337,087.80
Total Liabilities 17,986,793,081.33 19,885,527,513.83
Shareholders' Equity:
Share Capital 3,033,161,170.00 2,994,550,730.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 3,243,561,723.85 2,939,512,235.75
Less: Treasury Share 609,859,632.00 277,169,524.09
Other Comprehensive Incomes 72,451,586.31 76,005,792.49
Special Reserves
Surplus Reserves 1,553,691,005.92 1,553,691,005.92
General Risk Reserves
Undistributed Profits 17,068,147,667.18 16,331,012,273.48
Total Shareholders' Equity
24,361,153,521.26 23,617,602,513.55
Attributable to the Parent Company
Minority Shareholders' Equity 526,988,431.24 552,741,994.59
Total Shareholders' Equity 24,888,141,952.50 24,170,344,508.14
Total Liabilities and Shareholders'
42,874,935,033.83 44,055,872,021.97
Equity
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Legal representative: Fu Liquan Person in charge of accounting: Xu Qiaofen Person in charge of the accounting
institution: Zhu Zhuling
2. Balance Sheet of the Parent Company
Unit: RMB
Item June 30, 2022 January 1, 2022
Current Assets:
Cash and Bank Balances 3,282,003,717.47 2,453,629,292.19
Trading Financial Assets
Derivative Financial Assets
Notes receivable 193,852,534.83 113,182,073.02
Accounts receivable 4,609,152,586.96 5,235,718,728.84
Receivables Financing 630,081,116.92 762,320,674.93
Prepayments 19,820,069.95 22,564,616.46
Other Receivables 14,149,824,916.45 13,227,344,584.64
Including: interest receivable
Dividends Receivable
Inventory 211,889,952.38 191,101,106.37
Contract Assets 21,441,416.14 14,676,165.82
Holding for-sale assets
Non-current Assets Due within 1
57,420,402.81 59,323,331.52
Year
Other Current Assets 32,033,524.65 548,317,361.69
Subtotal of Current Assets 23,207,520,238.56 22,628,177,935.48
Non-current Assets:
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables 33,068,939.36 44,677,236.12
Long-term Equity Investment 5,251,406,564.66 5,294,492,906.78
Investment in Other Equity
Instruments
Other Non-current Financial Assets 1,080,429,619.72 919,563,465.97
Investment Property 154,687,492.24 161,109,748.15
Fixed Assets 596,446,253.71 623,652,394.47
Projects under Construction 1,121,201,621.87 890,954,831.96
Productive Biological Assets
Oil and gas assets
Right-of-use Assets 121,633,591.01 98,695,719.37
Intangible Assets 151,064,721.81 148,019,536.32
Development Expenditure
Goodwill
Long-term Deferred Expenses 23,170,992.88 25,121,726.63
71
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Deferred Income Tax Assets 75,604,828.02 76,637,574.05
Other Non-current Assets 8,442,567.34 5,922,846.72
Subtotal of Non-current Assets 8,617,157,192.62 8,288,847,986.54
Total Assets 31,824,677,431.18 30,917,025,922.02
Current Liabilities:
Short-term loan 6,699,052.29 3,066,910.69
Transactional financial liabilities
Derivative Financial Liabilities
Notes Payable 408,506,888.53 359,510,011.35
Accounts Payable 949,123,409.52 924,291,734.49
Received Prepayments
Contract liabilities 70,619,354.25 65,805,975.35
Payroll payable 442,775,192.95 1,349,324,493.47
Tax Payable 229,685,665.26 405,454,928.48
Other Payables 1,056,753,848.33 850,741,529.57
Including: interest payable
Dividends Payable 16,060,762.89
Holding for-sale liabilities
Non-current Liabilities Due within 1
1,846,323,297.16 785,270,294.02
Year
Other Current Liabilities 86,385,733.75 52,587,668.99
Subtotal of Current Liabilities 5,096,872,442.04 4,796,053,546.41
Non-current Liabilities:
Long-term loan 1,400,000,000.00 1,450,000,000.00
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities 67,363,676.89 53,205,974.57
Long-term Payables
Long-term payroll payable
Expected Liabilities 2,934,391.50 3,534,391.50
Deferred Income
Deferred Income Tax Liabilities 68,149,593.71 44,483,008.83
Other Non-current Liabilities 1,767,780.09 2,669,429.68
Subtotal of Non-current Liabilities 1,540,215,442.19 1,553,892,804.58
Total Liabilities 6,637,087,884.23 6,349,946,350.99
Shareholders' Equity:
Share Capital 3,033,161,170.00 2,994,550,730.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 3,228,930,218.00 2,925,020,649.68
Less: Treasury Share 609,859,632.00 277,169,524.09
Other Comprehensive Incomes
Special Reserves
72
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Surplus Reserves 1,553,691,005.92 1,553,691,005.92
Undistributed Profits 17,981,666,785.03 17,370,986,709.52
Total Shareholders' Equity 25,187,589,546.95 24,567,079,571.03
Total Liabilities and Shareholders'
31,824,677,431.18 30,917,025,922.02
Equity
3. Consolidated Income Statement
Unit: RMB
Item 2022 Semi-Annual 2021 Semi-Annual
I. Total Operating Revenue 14,087,085,840.97 13,505,005,733.89
Including: Operating Revenue 14,087,085,840.97 13,505,005,733.89
Interest Income
Earned Premiums
Service Charge and
Commission Income
II. Total Operating Cost 12,627,463,461.27 11,947,184,367.94
Including: Operating Cost 8,802,576,621.32 7,910,714,928.97
Interest Expenditures
Service Charge and
Commission Expenses
Surrender Value
Net Claims Paid
The Net Amount Withdrawn
for Insurance Liability Reserves
Policyholder Dividend
Expense
Reinsurance Cost
Taxes and Surcharges 79,474,198.57 100,270,188.53
Sales Expenses 2,039,728,296.24 2,059,001,711.42
Administration expenses 416,806,198.58 393,272,171.06
Research and development
1,563,479,271.17 1,406,249,326.81
expense
Financial Expenses -274,601,124.61 77,676,041.15
Including: interest
66,900,870.38 44,547,319.17
expenses
Interest Income 99,279,785.76 114,759,041.30
Add: Other income 500,467,768.02 426,519,272.06
Investment Income (Mark "-"
-167,792,112.54 -127,515,259.00
for Loss)
Including: Investment
Income from Affiliates and Joint -190,450,701.35 -155,395,120.84
Ventures
Profits from
recognition Termination of Financial -515,403.33
Assets at Amortized Cost
Exchange Gains (Mark "-" for
73
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Losses)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in fair
138,606,187.66 123,946,629.03
value (losses marked with "-")
Credit Impairment Losses
-226,803,032.66 -368,461,594.95
(Mark "-" for Loss)
Asset Impairment Losses
-68,919,039.80 -9,923,448.05
(Mark "-" for Loss)
Asset Disposal Income (Mark
921,560.18 33,002,441.01
"-" for Loss)
III. Operating Profit (Mark "-" for
1,636,103,710.56 1,635,389,406.05
Loss)
Add: Non-operating Revenues 4,176,182.18 6,539,902.55
Less: Non-operating Expenses 3,553,253.46 4,968,968.32
IV. Total Profit (Mark "-" for Total
1,636,726,639.28 1,636,960,340.28
Loss)
Less: Income Tax Expense 93,448,750.74 -38,451,185.77
V. Net Profit (Mark "-" for Net Loss) 1,543,277,888.54 1,675,411,526.05
(I) Classified by operation
continuity
1. Net Profit as a Going Concern
1,543,277,888.54 1,675,411,526.05
(Mark "-" for Net Loss)
2. Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
(II) Classified by the attribution of
ownership
1. Net Profit Attributable to the
1,519,848,967.71 1,643,175,887.55
Parent Company's Owner
2. Minority Shareholders' Profit
23,428,920.83 32,235,638.50
and Loss
VI. Net Amount of Other
-3,570,948.60 29,802,949.19
Comprehensive Incomes after Tax
Net Amount of Other
Comprehensive Incomes after Tax
-3,554,206.18 29,732,921.34
Attributable to the Parent Company's
Owner
(1) Other comprehensive income
that cannot be reclassified as P/L
1. Re-measure the variation of
the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
P/L under the equity method
3. Changes in the fair value of
investment in other equity
instruments
4. Changes in the fair value of
the credit risk of the enterprise
5. Others
(II) Other comprehensive income
-3,554,206.18 29,732,921.34
that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L
74
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
under the equity method
2. Changes in the fair value of
investment in other creditor's rights
3. Financial assets reclassified
into other comprehensive income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge reserves
6. Currency translation
-3,554,206.18 31,016,888.78
difference
7. Others -1,283,967.44
Net Amount of Other
Comprehensive Incomes After Tax -16,742.42 70,027.85
Attributable to Minority Shareholders
VII. Total Comprehensive Income 1,539,706,939.94 1,705,214,475.24
Total Comprehensive Income
Attributable to the Parent Company's 1,516,294,761.53 1,672,908,808.89
Owner
Total Comprehensive Income
23,412,178.41 32,305,666.35
Attributable to Minority Shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.51 0.56
(II) Diluted Earnings per Share 0.51 0.56
Legal representative: Fu Liquan Person in charge of accounting: Xu Qiaofen Person in charge of the accounting
institution: Zhu Zhuling
4. Income Statement of the Parent Company
Unit: RMB
Item 2022 Semi-Annual 2021 Semi-Annual
I. Operating Revenue 3,866,053,547.81 4,167,159,930.09
Less: Operating Cost 445,347,117.51 526,172,609.28
Taxes and Surcharges 56,800,667.28 53,634,639.42
Sales Expenses 899,736,981.65 823,745,443.38
Administration expenses 220,965,637.90 211,532,912.39
Research and development
1,151,255,899.09 1,068,320,197.31
expense
Financial Expenses -6,125,001.13 -19,195,740.24
Including: interest expenses 44,101,316.61 32,381,777.40
Interest Income 49,528,634.04 54,366,366.58
Add: Other income 415,570,228.58 357,721,494.76
Investment Income (Mark "-"
-218,295,447.12 -156,962,757.83
for Loss)
Including: Investment
Income from Affiliates and Joint -216,827,314.09 -171,271,964.55
Ventures
Profits from
Derecognition of Financial Assets at -3,745,833.33
Amortized Cost (Mark "-" for Loss)
Profit of Net Exposure
75
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Hedging (Mark "-" for Loss)
Incomes from changes in fair
162,677,125.00 95,451,596.20
value (losses marked with "-")
Credit Impairment Losses
-8,464,769.91 -15,404,331.60
(Mark "-" for Loss)
Asset Impairment Losses
-2,529,272.38 -634,899.32
(Mark "-" for Loss)
Asset Disposal Income (Mark
681,965.58 33,259,190.66
"-" for Loss)
II. Operating Profit (Mark "-" for Loss) 1,447,712,075.26 1,816,380,161.42
Add: Non-operating Revenues 2,450,575.07 4,455,730.54
Less: Non-operating Expenses 1,283,456.12 581,042.68
III. Total Profit (Mark "-" for Total
1,448,879,194.21 1,820,254,849.28
Loss)
Less: Income Tax Expense 55,485,544.69 -7,414,161.31
IV. Net Profit (Mark "-" for Net Loss) 1,393,393,649.52 1,827,669,010.59
(I) Net Profit as a Going Concern
1,393,393,649.52 1,827,669,010.59
(Mark "-" for Net Loss)
(II) Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
V. Net Amount of Other
15,179.09
Comprehensive Incomes After Tax
(1) Other comprehensive income
that cannot be reclassified as P/L
1. Re-measure the variation of
the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
P/L under the equity method
3. Changes in the fair value of
investment in other equity
instruments
4. Changes in the fair value of
the credit risk of the enterprise
5. Others
(II) Other comprehensive income
15,179.09
that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L
under the equity method
2. Changes in the fair value of
investment in other creditor's rights
3. Financial assets reclassified
into other comprehensive income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge reserves
6. Currency translation
difference
7. Others 15,179.09
VI. Total Comprehensive Income 1,393,393,649.52 1,827,684,189.68
VII. Earnings per Share:
(I) Basic Earnings per Share 0.47 0.62
76
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(II) Diluted Earnings per Share 0.47 0.62
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2022 Semi-Annual 2021 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
15,265,440,930.92 15,020,513,603.09
and Provision of Services
Net Increase in Customer's Bank
Deposits and Interbank Deposits
Net Increase in Borrowings from
the Central Bank
Net Increase in Borrowings from
Other Financial Institutions
Cash Arising from Receiving
Premiums for the Original Insurance
Contract
Net Amount Arising from
Reinsurance Business
Net Increase in Deposits and
Investments from Policyholders
Cash Arising from Interests,
Service Charges and Commissions
Net Increase in Borrowings from
Banks and Other Financial
Institutions
Net Increase in Repurchase
Business Funds
Net Amount of Cash Received
from the Vicariously Traded
Securities
Tax Refund 821,998,893.46 1,098,611,055.94
Other Received Cashes Related to
643,355,851.17 149,033,785.99
Operational Activities
Subtotal of cash inflow from
16,730,795,675.55 16,268,158,445.02
operational activities
Cash Paid for Merchandise and
12,250,857,651.04 10,963,754,585.76
Services
Net Increase in Loans and
Advances to Customers
Net Increase in Deposits with
Central Bank and Other Financial
Institutions
Cash Paid for Original Insurance
Contract Claims
Net increase of funds lent
Cash Paid for Interests, Service
Charges and Commissions
Cash Paid for Policy Dividends
Cash Paid to and for Employees 4,166,888,180.62 3,831,211,412.30
77
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Cash Paid for Taxes and
1,086,604,856.49 1,263,501,986.02
Surcharges
Other Paid Cashes Related to
954,239,634.16 1,080,799,258.93
Operational Activities
Subtotal of cash outflow from
18,458,590,322.31 17,139,267,243.01
operational activities
Net cash flow generated by operating
-1,727,794,646.76 -871,108,797.99
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
1,424,220,516.19 803,318,288.20
Investments
Cash Arising from Investment
14,408,600.68 12,730,576.24
Incomes
Net Cash Arising from Disposal of
Fixed Assets, Intangible Assets and 3,618,138.04 47,268,105.91
Other Long-term Assets
Net Cash Arising from Disposal of
Subsidiaries and Other Business 1,078,062.03
Units
Other Received Cashes Related to
17,359,422.11 56,003,510.94
Investment Activities
Subtotal of cash inflow from
1,460,684,739.05 919,320,481.29
investment activities
Cash Paid for Purchase and
Construction of Fixed Assets,
671,321,793.27 579,246,808.15
Intangible Assets and Other Long-
term Assets
Cash Paid for Investments 899,086,646.00 1,302,000,000.00
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of
Subsidiaries and Other Business
Units
Other Paid Cashes Related to
2,189,282.90 13,107,855.82
Investment Activities
Subtotal of cash outflows from
1,572,597,722.17 1,894,354,663.97
investment activities
Net amount of cash flow generated
-111,912,983.12 -975,034,182.68
by investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
624,169,632.00 52,905,784.31
Investments
Including: Cash Arising from
Subsidiaries Absorbing Investments 14,310,000.00 52,905,784.31
by Minority Shareholders
Cash Arising from Borrowings 3,497,977,041.60 2,728,079,926.55
Other Received Cashes Related to
453,263.81
Financing Activities
Subtotal of cash inflow from financing
4,122,599,937.41 2,780,985,710.86
activities
Cash Paid for Debts Repayment 2,184,297,390.00 829,079,926.55
Cash Paid for Distribution of
Dividends and Profits or Payment of 858,441,875.43 829,253,962.62
Interests
Including: Dividends and Profits
78
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Paid to Minority Shareholders by
Subsidiaries
Other Paid Cashes Related to
433,219,341.33 49,649,564.91
Financing Activities
Subtotal of cash outflow from
3,475,958,606.76 1,707,983,454.08
financing activities
Net cash flow generated by financing
646,641,330.65 1,073,002,256.78
activities
IV. Impact of Fluctuation in Exchange
86,013,805.25 -35,603,147.83
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-1,107,052,493.98 -808,743,871.72
Equivalents
Add: Cash and Cash Equivalents
7,617,576,852.32 7,358,452,769.53
at the Commencement of the Period
VI. Cash and Cash Equivalents at the
6,510,524,358.34 6,549,708,897.81
End of the Period
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2022 Semi-Annual 2021 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
4,901,653,844.89 1,594,534,564.89
and Provision of Services
Tax Refund 313,656,061.60
Other Received Cashes Related to
485,465,467.41 93,670,216.79
Operational Activities
Subtotal of cash inflow from
5,387,119,312.30 2,001,860,843.28
operational activities
Cash Paid for Merchandise and
380,698,114.67 623,359,985.97
Services
Cash Paid to and for Employees 2,540,544,711.65 2,116,190,187.65
Cash Paid for Taxes and
657,020,098.45 818,858,618.53
Surcharges
Other Paid Cashes Related to
545,699,527.90 557,213,500.36
Operational Activities
Subtotal of cash outflow from
4,123,962,452.67 4,115,622,292.51
operational activities
Net cash flow generated by operating
1,263,156,859.63 -2,113,761,449.23
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
528,823,920.19 803,318,288.20
Investments
Cash Arising from Investment
6,666,341.48 3,629,417.41
Incomes
Net Cash Arising from Disposal of
Fixed Assets, Intangible Assets and 11,212,058.02 58,522,097.94
Other Long-term Assets
Net Cash Arising from Disposal of
Subsidiaries and Other Business
Units
Other Received Cashes Related to
Investment Activities
Subtotal of cash inflow from 546,702,319.69 865,469,803.55
79
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
investment activities
Cash Paid for Purchase and
Construction of Fixed Assets,
280,356,493.56 178,160,791.03
Intangible Assets and Other Long-
term Assets
Cash Paid for Investments 168,623,191.19 1,348,140,000.00
Net Cash Paid for Acquisition of
Subsidiaries and Other Business
Units
Other Paid Cashes Related to
Investment Activities
Subtotal of cash outflows from
448,979,684.75 1,526,300,791.03
investment activities
Net amount of cash flow generated
97,722,634.94 -660,830,987.48
by investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
609,859,632.00
Investments
Cash Arising from Borrowings 1,143,632,141.60 1,679,079,926.55
Other Received Cashes Related to
984,338,789.26 2,243,043,904.46
Financing Activities
Subtotal of cash inflow from financing
2,737,830,562.86 3,922,123,831.01
activities
Cash Paid for Debts Repayment 140,000,000.00 629,079,926.55
Cash Paid for Distribution of
Dividends and Profits or Payment of 834,910,324.11 822,052,988.68
Interests
Other Paid Cashes Related to
2,291,278,042.11 814,356,149.58
Financing Activities
Subtotal of cash outflow from
3,266,188,366.22 2,265,489,064.81
financing activities
Net cash flow generated by financing
-528,357,803.36 1,656,634,766.20
activities
IV. Impact of Fluctuation in Exchange
387,560.48 -55,649.44
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
832,909,251.69 -1,118,013,319.95
Equivalents
Add: Cash and Cash Equivalents
2,408,352,525.10 3,090,496,504.00
at the Commencement of the Period
VI. Cash and Cash Equivalents at the
3,241,261,776.79 1,972,483,184.05
End of the Period
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
2022 Semi-Annual
Shareholders' Equity Attributable to the Parent Company's Owner Min Tota
ority l
Other Equity Les Oth Gen
Cap Spe Sur Und Sha
Item Sha Instruments s: er eral Sha
ital cial plus istri reh
re Tre Co Ris Oth Sub olde reh
Pref Per Res Res Res but
Cap Oth asu mpr k ers total rs' olde
erre pet erv erv erv ed
ital ers ry ehe Res Equ rs'
d ual es es es Prof ity
Sha nsiv erv Equ
80
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Sto Bon re e es its ity
cks ds Inco
mes
2,9 2,9 1,5 16, 23, 24,
277 76, 552
94, 39, 53, 331 617 170
I. Balance ,16 005 ,74
550 512 691 ,01 ,60 ,34
at the End 9,5 ,79 1,9
,73 ,23 ,00 2,2 2,5 4,5
of Last Year 24. 2.4 94.
0.0 5.7 5.9 73. 13. 08.
09 9 59
0 5 2 48 55 14
Add:
Changes in
Accounting
Policies
Co
rrection of
Errors in the
Previous
Period
Co
nsolidated
under the
Same
Control
Ot
hers
2,9 2,9 1,5 16, 23, 24,
277 76, 552
94, 39, 53, 331 617 170
II. Balance ,16 005 ,74
550 512 691 ,01 ,60 ,34
at the Start 9,5 ,79 1,9
,73 ,23 ,00 2,2 2,5 4,5
of This Year 24. 2.4 94.
0.0 5.7 5.9 73. 13. 08.
09 9 59
0 5 2 48 55 14
III.
Increases -
38, 304 332 - 737 743 717
or 25,
610 ,04 ,69 3,5 ,13 ,55 ,79
Decreases 753
,44 9,4 0,1 54, 5,3 1,0 7,4
in This ,56
0.0 88. 07. 206 93. 07. 44.
Period 3.3
0 10 91 .18 70 71 36
(Mark "-" for 5
Decreases)
1,5 1,5 1,5
- 23,
19, 16, 39,
(I) Total 3,5 412
848 294 706
Comprehen 54, ,17
,96 ,76 ,93
sive Income 206 8.4
7.7 1.5 9.9
.18 1
1 3 4
(II)
Shareholder 38, 300 332 21, 27,
6,1
s' 610 ,26 ,69 610 799
88,
Contribution ,44 7,7 0,1 ,96 ,05
080
and 0.0 48. 07. 9.4 0.4
.97
Reduction 0 88 91 9 6
in Capital
1． Commo 38, 278 332 - 14, -
n stock 610 ,01 ,69 16, 310 1,7
invested by ,44 8,9 0,1 060 ,00 50,
81
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
the owner 0.0 05. 07. ,76 0.0 762
0 02 91 2.8 0 .89
9
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share-
22, 22, 29,
based 7,3
248 248 549
Payments 00,
,84 ,84 ,81
Recorded 969
3.8 3.8 3.3
into .49
6 6 5
Shareholder
s' Equity
4． Others
- - -
782 782 782
(III) Profit ,71 ,71 ,71
Distribution 3,5 3,5 3,5
74. 74. 74.
01 01 01
1． Appropr
iation of
Surplus
Reserves
2． Appropr
iation of
General
Risk
Reserves
- - -
3． Distribu
782 782 782
tion to
,71 ,71 ,71
Owners (or
3,5 3,5 3,5
Shareholder
74. 74. 74.
s)
01 01 01
4． Others
(IV) Internal
Carry-
forward of
Shareholder
s' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
82
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the
defined
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehen
sive Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
-
-
3,7 3,7 66,
70,
81, 81, 994
(VI) Others 776
739 739 ,97
,711
.22 .22 2.0
.25
3
3,0 3,2 1,5 17, 24, 24,
609 72, 526
IV. Balance 33, 43, 53, 068 361 888
,85 451 ,98
at the End 161 561 691 ,14 ,15 ,14
9,6 ,58 8,4
of This ,17 ,72 ,00 7,6 3,5 1,9
32. 6.3 31.
Period 0.0 3.8 5.9 67. 21. 52.
00 1 24
0 5 2 18 26 50
Amount in the previous year
Unit: RMB
2021 Semi-Annual
Shareholders' Equity Attributable to the Parent Company's Owner Min Tota
Other Equity Oth ority l
Les Gen Und Sha Sha
Instruments Cap er Spe Sur
Item Sha s: eral istri reh reh
ital Co cial plus
re Pref Per Tre Ris but Oth Sub olde olde
Res mpr Res Res
Cap erre pet Oth asu k ed ers total rs' rs'
erv ehe erv erv
ital d ual ers ry Res Prof Equ Equ
es nsiv es es
Sto Bon Sha erv its ity ity
e
83
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
cks ds re Inco es
mes
2,9 1,9 1,5 13, 19, 20,
581 61, 430
95, 89, 53, 754 773 203
I. Balance ,96 157 ,611
579 655 691 ,91 ,03 ,64
at the End 8,9 ,52 ,68
,59 ,33 ,00 5,9 0,4 2,11
of Last Year 30. 3.1 3.7
0.0 4.0 5.9 04. 26. 0.1
89 3 0
0 5 2 19 40 0
Add:
Changes in
Accounting
Policies
Co
rrection of
Errors in the
Previous
Period
Co
nsolidated
under the
Same
Control
Ot
hers
2,9 1,9 1,5 13, 19, 20,
581 61, 430
95, 89, 53, 754 773 203
II. Balance ,96 157 ,611
579 655 691 ,91 ,03 ,64
at the Start 8,9 ,52 ,68
,59 ,33 ,00 5,9 0,4 2,11
of This Year 30. 3.1 3.7
0.0 4.0 5.9 04. 26. 0.1
89 3 0
0 5 2 19 40 0
III.
Increases - 1,7 1,8
- 603 29, 840 106
or 256 29, 35,
1,0 ,27 732 ,86 ,16
Decreases ,59 436 603
28, 4,3 ,92 1,3 6,4
in This 6,7 ,54 ,02
860 37. 1.3 67. 88.
Period 74. 0.8 9.3
.00 71 4 24 55
(Mark "-" for 54 3 8
Decreases)
1,6 1,6 1,7
29, 32,
43, 72, 05,
(I) Total 732 305
175 908 214
Comprehen ,92 ,66
,88 ,80 ,47
sive Income 1.3 6.3
7.5 8.8 5.2
4 5
5 9 4
(II)
-
Shareholder - 87, 342 69,
256 412
s' 1,0 107 ,67 441
,59 ,117
Contribution 28, ,86 5,7 ,53
6,7 ,311
and 860 3.6 78. 3.5
74. .67
Reduction .00 2 16 1
54
in Capital
1． Commo - - - 248 51, 299
n stock 1,0 7,4 256 ,10 074 ,18
invested by 28, 61, ,59 6,0 ,26 0,2
the owner 860 896 6,7 18. 9.5 87.
84
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
.00 .20 74. 34 2 86
54
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share-
94, 94, 18, 112,
based
569 569 367 937
Payments
,75 ,75 ,26 ,02
Recorded
9.8 9.8 3.9 3.8
into
2 2 9 1
Shareholder
s' Equity
4． Others
- - -
802 802 802
(III) Profit ,31 ,31 ,31
Distribution 4,5 4,5 4,5
20. 20. 20.
31 31 31
1． Appropr
iation of
Surplus
Reserves
2． Appropr
iation of
General
Risk
Reserves
- - -
3． Distribu
802 802 802
tion to
,31 ,31 ,31
Owners (or
4,5 4,5 4,5
Shareholder
20. 20. 20.
s)
31 31 31
4． Others
(IV) Internal
Carry-
forward of
Shareholder
s' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
85
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the
defined
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehen
sive Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
516 516 520
4,4
,16 ,16 ,58
19,
(VI) Others 6,4 6,4 5,7
288
74. 74. 62.
.69
09 09 78
2,9 2,5 1,5 14, 21, 22,
325 90, 536
IV. Balance 94, 92, 53, 595 502 039
,37 890 ,77
at the End 550 929 691 ,77 ,46 ,24
2,1 ,44 8,1
of This ,73 ,67 ,00 7,2 6,9 5,1
56. 4.4 72.
Period 0.0 1.7 5.9 71. 67. 39.
35 7 25
0 6 2 43 23 48
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
2022 Semi-Annual
Other Equity Other Total
Instruments Undis
Capit Less: Comp Speci Surpl Share
Item Share tribut
Prefe Perpe al Treas rehen al us Other holde
Capit ed
rred tual Other Reser ury sive Reser Reser s rs'
al Profit
Stock Bond s ves Share Inco ves ves Equit
s
s s mes y
86
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
2,994 2,925 1,553 17,37 24,56
I. Balance 277,1
,550, ,020, ,691, 0,986 7,079
at the End 69,52
730.0 649.6 005.9 ,709. ,571.
of Last Year 4.09
0 8 2 52 03
Add:
Changes in
Accounting
Policies
Co
rrection of
Errors in the
Previous
Period
Ot
hers
2,994 2,925 1,553 17,37 24,56
II. Balance 277,1
,550, ,020, ,691, 0,986 7,079
at the Start 69,52
730.0 649.6 005.9 ,709. ,571.
of This Year 4.09
0 8 2 52 03
III.
Increases
or
38,61 303,9 332,6 610,6 620,5
Decreases
0,440 09,56 90,10 80,07 09,97
in This
.00 8.32 7.91 5.51 5.92
Period
(Mark "-" for
Decreases)
1,393 1,393
(I) Total
,393, ,393,
Comprehen
649.5 649.5
sive Income
2 2
(II)
Shareholder
-
s' 38,61 292,9 332,6
1,115,
Contribution 0,440 64,54 90,10
127.5
and .00 0.35 7.91
6
Reduction
in Capital
1． Commo -
38,61 278,0 332,6
n stock 16,06
0,440 18,90 90,10
invested by 0,762
.00 5.02 7.91
the owner .89
2． Capital
Invested by
Holders of
0.00
Other
Equity
Instruments
3． Amount
of Share-
based 14,94 14,94
Payments 5,635 5,635
Recorded .33 .33
into
Shareholder
87
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
s' Equity
4． Others 0.00
- -
(III) Profit 782,7 782,7
Distribution 13,57 13,57
4.01 4.01
1． Appropr
iation of
Surplus
Reserves
2． Distribu
- -
tion to
782,7 782,7
Owners (or
13,57 13,57
Shareholder
4.01 4.01
s)
3． Others
(IV) Internal
Carry-
forward of
Shareholder
s' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the
defined
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehen
sive Income
6. Others
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
10,94 10,94
(VI) Others 5,027 5,027
.97 .97
IV. Balance 3,033 3,228 1,553 17,98 25,18
609,8
at the End ,161, ,930, ,691, 1,666 7,589
59,63
of This 170.0 218.0 005.9 ,785. ,546.
2.00
Period 0 0 2 03 95
Amount in the previous year
Unit: RMB
2021 Semi-Annual
Other Equity Other Total
Instruments Undis
Capit Less: Comp Speci Surpl Share
Item Share tribut
Prefe Perpe al Treas rehen al us Other holde
Capit ed
rred tual Other Reser ury sive Reser Reser s rs'
al Profit
Stock Bond s ves Share Inco ves ves Equit
s
s s mes y
2,995 1,976 1,553 14,75 20,70
I. Balance 581,9
,579, ,156, 522,5 ,691, 9,065 3,046
at the End 68,93
590.0 775.9 54.00 005.9 ,785. ,780.
of Last Year 0.89
0 1 2 79 73
Add:
Changes in
Accounting
Policies
Co
rrection of
Errors in the
Previous
Period
Ot
hers
2,995 1,976 1,553 14,75 20,70
II. Balance 581,9
,579, ,156, 522,5 ,691, 9,065 3,046
at the Start 68,93
590.0 775.9 54.00 005.9 ,785. ,780.
of This Year 0.89
0 1 2 79 73
III.
Increases
or - - 1,025
613,4 1,894
Decreases 1,028 256,5 15,17 ,354,
60,53 ,398,1
in This ,860. 96,77 9.09 490.2
0.62 14.53
Period 00 4.54 8
(Mark "-" for
Decreases)
(I) Total 15,17 1,827 1,827
Comprehen 9.09 ,669, ,684,
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
sive Income 010.5 189.6
9 8
(II)
Shareholder
- -
s' 94,70 350,2
1,028 256,5
Contribution 6,282 74,19
,860. 96,77
and .63 7.17
00 4.54
Reduction
in Capital
1． Commo - - -
248,1
n stock 1,028 7,461 256,5
06,01
invested by ,860. ,896. 96,77
8.34
the owner 00 20 4.54
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share-
based
102,1 102,1
Payments
68,17 68,17
Recorded
8.83 8.83
into
Shareholder
s' Equity
4． Others
- -
(III) Profit 802,3 802,3
Distribution 14,52 14,52
0.31 0.31
1． Appropr
iation of
Surplus
Reserves
2． Distribu
- -
tion to
802,3 802,3
Owners (or
14,52 14,52
Shareholder
0.31 0.31
s)
3． Others
(IV) Internal
Carry-
forward of
Shareholder
s' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the
defined
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehen
sive Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
518,7 518,7
(VI) Others 54,24 54,24
7.99 7.99
IV. Balance 2,994 2,589 1,553 15,78 22,59
325,3
at the End ,550, ,617, 537,7 ,691, 4,420 7,444
72,15
of This 730.0 306.5 33.09 005.9 ,276. ,895.
6.35
Period 0 3 2 07 26
III. Basic Information about the Company
Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as "Company" or "the Company") was incorporated
under the official approval document No. 18 [2002] issued by Zhejiang Provincial People's Government Work Leading
Group for Enterprise Listing in June 2002, a company established on the basis of overall change of the former
Hangzhou Dahua Information Technology Co., Ltd. co-founded by five natural persons, Fu Liquan, Chen Ailing, Zhu
Jiangming, Liu Yunzhen and Chen Jianfeng.
On April 22, 2008, the Company issued 16.8 million shares of common stock in RMB to the general public for the first
time under the approval document No. 573 [2008] Securities Regulatory Issuance, issued by China Securities
Regulatory Commission ("CSRC"). It was listed on Shenzhen Stock Exchange on May 20, 2008 with a registered
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
capital of RMB 66.8 million and the change registration filed with Administration for Industry and Commerce was
completed on May 23, 2008. The Company's unified social credit code is 91330000727215176K. The Company falls
within the intelligent Internet of Things industry.
As of June 30, 2022, the Company has issued a total of 2,994,550,730 shares (Note 1), with a registered capital of
RMB 2,994,550,730.00. The registered address is No.1187, Bin'an Road, Binjiang District, Hangzhou, and the
headquarters address is No.1199, Bin'an Road, Binjiang District, Hangzhou. The Company's main operation activities
include the development, services & sales of computer software, the design, development, production, installation &
sales of electronic products and communication products, the development, system integration & sales of network
products, the design & installation of electronic engineering products, information technology consulting service, import
& export businesses. (refer to the “Importer and Exporter Qualification” for the details of the scope). (For items subject
to approval according to law, business activities can only be carried out after approval by relevant departments)
The actual controllers of the Company are Mr. Fu Liquan and Ms. Chen Ailing.
This financial statement has been approved by the Board of Directors on August 19, 2022.
For details of the scope of the consolidated financial statement for the current period, refer to Notes IX “Equity in Other
Entities”, and for details of the changes in the scope of the consolidated financial statement for the current period, refer
to Notes VIII “Changes in the Scope of Consolidation”.
Note 1: Excluding the decrease of 36,127,260 shares (change registered on August 11, 2022) and the increase of
74,737,700 shares (change being registered now) due to the stock option incentives.
IV. Basis for Preparing the Financial Statement
1. Basis for the preparation
The Company prepares the financial statement, as a going concern, based on transactions and matters that have
actually occurred, in accordance with Accounting Standards for Business Enterprises - Basic Standards issued by the
Ministry of Finance and all specific accounting standards, application guidelines for accounting standards for business
enterprises, explanations on the accounting standards for business enterprises and other related regulations
(hereinafter referred to as "Accounting Standards for Business Enterprises" collectively), and the disclosure provisions
in the Preparation Rules for Information Disclosures by Companies Offering Securities to the Public No. 15 - General
Provisions on Financial Reports issued by CSRC.
2. Going concern
The Company has the capability to continue as a going concern for at least 12 months as of the end of current
reporting period, without any significant item affecting the capability for continuing as a going concern.
V. Significant Accounting Polices and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
The following disclosures cover the specific accounting policies and accounting estimates formulated by the Company
according to the characteristics of its production and operation.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
1. Statement on compliance with Accounting Standards for Business Enterprises
This financial statement is in compliance with the requirements in the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance and presents truly and completely the financial position of the merged
companies and the parent company as at June 30, 2022 and the operating results and cash flows of the merger and
the parent company in the first half of 2022.
2. Accounting period
The accounting period of the Company is from 1 January to 31 December of each calendar year.
3. Operating cycle
The Company's operating cycle is 12 months.
4. Functional currency
For the domestic operating entities of the Company and its overseas operating entity Dahua Technology (HK) Limited,
the reporting currency is Renminbi ("RMB"). The other overseas operating entities take the appropriate currency as the
functional currency on the basis of the currency in the major economic environment in which they operate.
This financial statement is presented in RMB.
5. The accounting treatment of business combinations involving enterprises under common
control and business combinations not involving enterprises under common control
Business combination involving entities under common control: The assets and liabilities acquired by the merging
party in business combination (including goodwill incurred in the acquisition of the merged party by ultimate controlling
party) shall be measured at the book value of the assets and liabilities of the merged party in the consolidated financial
statements of the ultimate controlling party on the date of combination. The difference between the book value of the
net assets obtained and the book value of the consideration paid for the combination (or total nominal value of the
issued shares) is adjusted to capital premium in capital reserve. Adjustments shall be made to retained earnings in the
event that the share premiums in the capital reserves are not sufficient for write-down.
Business combination involving entities not under common control: The cost of combination is the fair value of the
assets paid, the liabilities incurred or assumed, and the equity securities issued by the acquirer to acquire the control
of the acquiree on the date of acquisition. Where the cost of combination is higher than the fair value of the identifiable
net assets acquired from the merging party in business combination, such difference shall be recognized as goodwill;
where the cost of combination is less than the fair value of the identifiable net assets acquired from the merging party
in business combination, such difference shall be charged to the profit or loss for the period. The identifiable assets,
liabilities and contingent liabilities of the acquiree obtained in the combination that satisfy the recognition criteria shall
be measured by the fair value on the date of acquisition.
The fees which are directly related to the business combination shall be recognized as the profit or loss in the period
when the costs are incurred; the transaction expenses of issuing equity securities or debt securities for business
merger shall be initially capitalized for equity securities or debt securities.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
6. Preparation method of consolidated financial statements
(1) Scope of Consolidation
The scope of consolidation of the consolidated financial statements is based on controlling interests and includes the
Company and all the subsidiaries. Control means that the Company has the power with respect to the investee to
obtain variable returns by engaging in relevant activities of the investee, and has the ability to influence the amount of
its returns by applying its power with respect to the investee.
(2) Procedures of Consolidation
The Company will treat the enterprise group as a single accounting entity and prepare the consolidated financial
statements in accordance with the unified accounting policy to reflect the Group's overall financial position, operating
results and cash flow. The influence from the internal transactions between the Company and the subsidiaries or
between different subsidiaries shall be eliminated. Internal transactions show that impairment loss of relevant assets
shall be recognized as such loss in full. In preparing the consolidated financial statements, where the accounting
policies and the accounting periods are inconsistent between the Company and subsidiaries, the financial statements
of subsidiaries are adjusted in accordance with the accounting policies and accounting period of the Company.
The owner's equity, the net profit or loss and the comprehensive income attributable to minority shareholders of a
subsidiary of the current period are presented separately under the owners' equity in the consolidated balance sheet,
the net profit and the total comprehensive income in the consolidated income statement respectively. Where losses
attributable to the minority shareholders of a subsidiary of the current period exceed the minority shareholders' interest
entitled in the shareholders' equity of the subsidiary at the beginning of the period, the excess is allocated against the
minority shareholders interest.
① Acquisition of Subsidiaries or Business
For acquisition of subsidiaries or business due to business combination involving entities under common control during
the reporting period, the operating results and cash flow of such subsidiaries or business from the beginning to the end
of the reporting period when the merger occurs are included in the consolidated income statement; and the opening
balance and comparative figures of the consolidated financial statements should be adjusted simultaneously as if the
consolidated reporting entity has been in existence since the beginning of the control by the ultimate controlling party.
In connection with imposing control over the investee under common control due to additional investment and other
reasons, the equity investment held before gaining the control of the combined party is recognized as relevant profit or
loss, other comprehensive income and changes in other net assets at the later of the date of acquisition of the original
equity and the date when the combining and the combined parties are under common control, and shall be written
down to the opening balance retained earnings or current profit or loss in the comparative reporting period.
Additional subsidiaries or business due to business combination involving entities not under common control during
the reporting period will be included in the consolidated financial statements as of the date of acquisition on the basis
of the fair value of the identifiable assets, liabilities or contingent liabilities determined on the date of acquisition.
In connection with imposing control over the investee not under common control due to additional investment and
other reasons, the equity of acquiree held before acquisition date shall be remeasured at the fair value of such equity
on the acquisition date and the difference between fair value and book value shall be recognized as investment
income in current period. Other comprehensive income that may later be reclassified into profit or loss and changes in
other owner's equity accounted by equity method contained in the acquiree's equity held before the acquisition date
shall be transferred to current investment gains on the date of acquisition.
② Disposal of Subsidiaries or Business
a. General Treatment
When losing control of the investee due to partial disposal of the equity investment, or any other reasons, the
remaining equity investment is remeasured at fair value at the date in which control is lost. The sum of consideration
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
received from disposal of equity investment and the fair value of the remaining equity investment, net of the difference
between the sum of the Company's previous share of the subsidiary's net assets recorded from the acquisition date or
combination date and the sum of goodwill, is recognized in investment income in the period in which control is lost.
Other comprehensive income that may later be reclassified into profit or loss and changes in other owner's equity
accounted by equity method in connection with the equity investment of the original subsidiaries shall be transferred to
the current investment gains when the control is lost.
b. Disposal of Subsidiary Achieved by Stages
When the equity investment of subsidiaries is disposed of through multiple transactions until the control is lost, such
multiple transactions are generally treated as a package deal if the terms, conditions and economic impact of the
transactions to dispose of the subsidiary's equity investment satisfy one or more of the following conditions:
ⅰ. These transactions are achieved at the same time or the mutual effects on each other are considered;
ⅱ. A complete set of commercial results can be achieved with reference to the series of transactions as a whole;
ⅲ. Achieving a transaction depends on at least achieving of one of the other transaction;
ⅳ. One transaction recognized separately is not economical, but it is economical when considered together with other
transactions.
If multiple transactions are recognized as a package deal, these transactions shall be subject to accounting treatment
as a transaction to dispose of the subsidiaries and lose control. The differences between the price on each disposal
and disposal of investment on the subsidiary's net assets shall be recognized in other comprehensive income in the
consolidated financial statements, and included in profit or loss for the period when the control is lost.
If the transactions are not a package deal, accounting treatment for partial disposal of equity investments of the
subsidiary without losing control shall be applied before control is lost. When the control is lost, general accounting
treatment for disposal of a subsidiary shall be used.
③ Acquisition of Minority Interest of Subsidiaries
The Company shall adjust the share premium in the capital reserve of the consolidated balance sheet with respect to
any difference between the long-term equity investment arising from the purchase of minority interest and the net
assets attributing to the parent company continuously calculated on the basis of the newly increased share proportion
as of the acquisition date or date of combination or, adjust the retained earnings if the share premium in the capital
reserve is insufficient for write-down.
④ Partial Disposal of Equity Investment in Subsidiaries without Losing Control
The difference between the disposal consideration and the share of net assets in the subsidiaries calculated from
disposal of long-term equity investment as of the date of acquisition or combination date shall be adjusted to share
premium in the capital reserve in the consolidated balance sheet. Adjustments shall be made to retained earnings in
the event that the share premiums in the capital reserves are not sufficient for write-down.
7. Classification of joint venture arrangement and accounting treatment methods for joint
operation
Joint venture arrangement is classified into joint operation and joint venture.
Joint operation means the joint venture arrangement in which the joint venture parties have the assets and assume the
liabilities related to such arrangement.
The Company recognizes the following items related to the share of interests in the joint operation:
(1) The assets separately held by the Company and assets jointly held as recognized by the share of the Company;
(2) The liabilities separately assumed by the Company and liabilities jointly assumed as recognized by the share of the
Company;
(3) Income from selling the share of the Company in the output of the joint operation;
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(4) Income from joint operation of the sold output as recognized by the share of the Company;
(5) The expenses separately incurred and expenses jointly incurred as recognized by the share of the Company;
The Company adopts the equity method for the investment of the joint venture. For details, refer to this section
Financial Report - V. Significant Accounting Polices and Accounting Estimates - 19. Long-term equity investment.
8. Recognition criteria of cash and cash equivalents
Cash means the cash on hand and deposits that are available for payment at any time of the Company. Cash
equivalents mean the investments held by the Company which are short-term, highly liquid, easy to be converted into
known amounts of cash and have little risk of value change.
9. Conversion of transactions and financial statements denominated in foreign currencies
(1) Foreign currency transactions
Foreign currency transactions shall be translated into functional currency at the spot exchange rate on the day when
the transactions occurred.
Balance sheet date foreign currency monetary items shall be translated using the spot exchange rate at the balance
sheet date. The resulting exchange differences are recognized in profit or loss for the current period, except for those
differences related to the principal and interest on a specific-purpose borrowing denominated in foreign currency for
acquisitions, construction or production of the qualified assets, which should be capitalized as cost of the assets.
2. Translation of foreign currency financial statements
All assets and liabilities items in balance sheet are translated based on spot exchange rate on the balance sheet date;
owners' equity items other than "undistributed profit" are translated at a spot exchange rate when accrued. Revenue
and expense items in the income statement are translated at a spot exchange rate at the transaction occurrence date.
For disposal of overseas operation, the translation difference as stated in the foreign currency financial statements
relating to overseas operation, is accounted for in the profit and loss account in the current period from owners' equity
items.
10. Financial instruments
A financial asset, financial liability or equity instrument is recognized when the Company becomes a party to the
financial instrument contract.
(1) Classification of the financial instruments
According to the Company's business model for management of the financial assets and the contractual cash flow
features of the financial assets, the financial assets, when initially recognized, are classified as: financial assets at
amortized cost, financial assets at fair value through other comprehensive income (debt instruments) and financial
assets at fair value through profit or loss.
The financial assets which satisfy the following conditions, and are not designated as financial assets at fair value
through profit or loss will be classified by the Company as financial assets at amortized cost:
－ The business model is designed to collect the contractual cash flow;
－ The contractual cash flow is only used to pay the principal and the interests based on the outstanding principal
amount.
The financial assets which satisfy the following conditions, and are not designated as financial assets at fair value
through profit or loss will be classified by the Company as the financial assets (equity instruments) at fair value through
other comprehensive income:
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
－ The business model is designed to both collect the contractual cash flow and sell the financial assets;
－ The contractual cash flow is only used to pay the principal and the interests based on the outstanding principal
amount.
For non-trading investments in equity instruments, the Company may, at the time of initial recognition, irrevocably
designate them as financial assets (equity instruments) at fair value through other comprehensive income. Such
designation is based on the individual investments, and relevant investments fall within the definition of the equity
instrument from the perspective of the issuer.
Except for the financial assets at amortized cost, and financial assets at fair value through other comprehensive
income, all the remaining financial assets are classified as the financial assets at fair value through profit or loss. At the
time of initial recognition, the financial assets which should have been classified as financial assets at amortized cost
or financial assets at fair value through other comprehensive income can be irrevocably designated by the Company
as financial assets at fair value through profit or loss if the accounting mismatch can be eliminated or significantly
reduced.
The financial liabilities, when initially recognized, are classified as: financial liabilities at fair value through profit or loss
and financial liabilities at amortized cost.
Financial liabilities which meet one of the following conditions will be, when initially measured, designated as financial
liabilities at fair value through profit or loss:
1) Such designation may be able to eliminate or significantly reduce the accounting mismatch.
2) The portfolio of financial liabilities or the portfolio of financial assets and financial liabilities shall be subject to
management and performance evaluation on the basis of fair value according to the enterprise risk management or
investment strategy contained in the formal documentations, and a report shall be made to the key management
personnel within the enterprise on this basis.
3) Such financial liabilities shall contain embedded derivatives to be split separately.
Subject to the conditions above, the Company has no such designated financial liabilities.
(2) Recognition and measurement of financial instruments
① Financial assets at amortized cost
Financial assets at amortized cost include notes receivable, accounts receivable, other receivables, long-term
receivables and creditors investment, which shall be initially measured at fair value, and the relevant transaction
expenses should be initially capitalized; The accounts receivable that do not contain material financing compositions
and those for which the Company decides to not take into account the financing compositions of no more than one
year shall be initially measured at the contract transaction price.
The interest calculated by effective interest method during the holding period is recorded into the current profit and
loss.
At the time of recovery or disposal, the difference between the price obtained and the book value shall be included in
the current profit or loss.
② Financial assets measured at fair value and its changes are included in other comprehensive income (debt
instruments)
Financial assets measured at fair value and its changes are included in other comprehensive income (debt
instruments) include receivables financing and investments in other creditor's rights. They are initially measured at fair
value, and the relevant transaction expenses should be initially capitalized. These financial assets are subsequently
measured at fair value, and the change in fair value, other than the interest, the impairment loss or profit and the profit
or loss on foreign exchange, shall be included in other comprehensive income.
Upon derecognition, the cumulative profits or losses previously included in other comprehensive income shall be
removed from other comprehensive income and included in the profit or loss for the period.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
③ Financial assets at fair value through other comprehensive income (equity instruments)
Financial assets at fair value through other comprehensive income (equity instruments) include investment in other
equity instruments. They are initially measured at fair value, and the transaction expenses shall be initially capitalized.
These financial assets are subsequently measured at fair value, and the change in fair value shall be included in other
comprehensive income. The dividends obtained shall be included in the profit or loss for the period.
Upon derecognition, the cumulative profits or losses previously included in other comprehensive income shall be
removed from other comprehensive income and included in the carry-forward retained earnings.
④ Financial assets at fair value through profit or loss in this period
Financial assets at fair value through profit or loss include trading financial assets, derivative financial assets and other
non-current financial assets. They are initially measured at fair value, and the transaction expenses related to them are
included in the profit or loss for the period. These financial assets are subsequently measured at fair value, and the
change in fair value shall be included in the profit or loss for the period.
⑤ Financial liabilities at fair value through profit or loss in this period
Financial liabilities at fair value through profit or loss include trading financial liabilities and derivative financial liabilities.
They are initially measured at fair value, and the transaction expenses related to them are included in the profit or loss
for the period. These financial liabilities are subsequently measured at fair value, and the change in fair value shall be
included in the profit or loss for the period.
Upon derecognition, the difference between their book value and the consideration paid is included in the profit or loss
for the period.
⑥ Financial liabilities at amortized cost
Financial liabilities at amortized cost include short-term loans, notes payable, accounts payable, other payables, long-
term loans, bonds payable, and long-term payables. They are initially measured at fair value, and the transaction
expenses shall be initially capitalized.
The interest calculated by effective interest method during the holding period is recorded into the current profit and
loss.
Upon derecognition the difference between the consideration paid and the book value of these financial liabilities is
included in the current profit or loss.
(3) Derecognition and transfer of financial assets
When one of the following conditions is met, financial assets are derecognized by the Company:
－ The contractual right to receive cash flows from financial assets is terminated;
－ The financial assets have been transferred and nearly all the risks and rewards related to the ownership of the
financial assets have been transferred to the transferee;
－ The financial assets have been transferred and although the Company neither transfers or retains all the risks and
rewards related to the ownership of the financial assets, the Company retains no control of the financial assets;
The financial assets when transferred will not be derecognized if the Company has retained nearly all the risks and
rewards related to the ownership of the financial assets.
The substance-over-form principle shall be adopted while making judgment on whether the transfer of financial assets
satisfies the above conditions for termination of recognition.
The transfer of financial assets can be classified into entire transfer and partial transfer. If the transfer of an entire
financial asset satisfies the conditions for termination of recognition, the difference between the two amounts below
shall be recorded into profit or loss for the period:
① The book value of the financial asset transferred;
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
② The consideration received as a result of the transfer, plus the accumulative amount of the change in fair value
previously recorded into the owners' equity (in cases where the transferred financial assets are financial assets at fair
value through other comprehensive income (debt instruments)).
If the partial transfer of financial assets satisfies the conditions for termination of recognition, the overall book value of
the transferred financial asset shall be apportioned according to their respective relative fair value between the
recognition terminated part and the remaining part, and the difference between the two amounts below shall be
recorded into profit or loss for the current period:
① The book value of the recognition terminated portion;
② The sum of consideration of the derecognized portion and the corresponding portion of accumulated change in fair
value previously recorded into owners' equity (in cases where the transferred financial assets are financial assets at
fair value through other comprehensive income (debt instruments)).
Financial assets will still be recognized if they fail to satisfy the conditions for termination of recognition, with the
consideration received recognized as a financial liability.
(4) Derecognition of financial liabilities
When the current obligation under a financial liability is completely or partially discharged, the recognition of the whole
or relevant portion of the liability is terminated; an agreement is entered between the Company and a creditor to
replace the original financial liabilities with new financial liabilities with substantially different terms, terminate the
recognition of the original financial liabilities as well as recognize the new financial liabilities.
If all or part of the contract terms of the original financial liabilities are substantially amended, the recognition of the
original financial liabilities will be terminated in full or in part, and the financial liabilities whose terms have been
amended shall be recognized as a new financial liability.
When recognition of financial liabilities is terminated in full or in part, the difference between the book value of the
financial liabilities terminated and the consideration paid (including transferred non-cash assets or new financial liability)
is recognized in profit or loss for the current period.
Where the Company repurchases part of its financial liabilities, the book value of such financial liabilities will be
allocated according to the relative fair value between the continued recognized part and terminated part on the
repurchase date. The difference between the book value of the financial liabilities terminated and the consideration
paid (including transferred non-cash assets or new financial liability) is recognized in profit or loss for the current period.
(5) Method of determining the fair values of financial assets and liabilities
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active
market. The fair value of a financial instrument that is not traded in an active market is determined by using a valuation
technique. The Company uses the valuation technique when it is applicable under current conditions and there are
enough available data and other information to support and the technique should maximize the use of relevant
observable. It chooses the inputs which are consistent with the asset or liability's characteristics considered by market
participants in the transaction of the relevant asset or liability and makes the maximum use of relevant observable
inputs. Unobservable inputs are used under the circumstance that the relevant observable inputs cannot be obtained
or not feasible.
(6) Test method and accounting treatment for impairment of financial assets
The Company estimates the expected credit loss on the financial assets at amortized cost, the financial assets at fair
value through other comprehensive income (debt instruments), and the financial guarantee contracts, either alone or in
combination.
Taking into the reasonable and well-grounded information including past matters, current situation and prediction of
future economic conditions, the Company calculates the possibly weighted amount of the present value of the
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
difference between the cash flows receivable under the contract and the cash flows expected to be received, taking
the risk of default as the weight, and recognizes the expected credit loss .
If the credit risk of this financial instrument has been significantly increased upon initial recognition, the Company
measures its loss provision in accordance with the amount equivalent to the expected credit loss of the financial
instrument throughout the duration; if the credit risk of this financial instrument is not significantly increased upon initial
recognition, the Company will measure the loss provision of this financial instrument by the amount of its expected
credit loss in the 12 months to come. The increased or reversed amount of the loss provision resulting therefrom is
included in the current profit or loss as the impairment loss or profit.
By comparing the risk of default of financial instruments on the balance sheet date with the risk of default on the initial
recognition date, the Company determines the relative change in the risk of default over the expected life of financial
instruments to assess whether the credit risk of financial instruments has increased significantly since initial
recognition. If the financial instrument becomes overdue for more than 30 days, the Company believes that the credit
risk of this financial instrument has been significantly increased, unless there are concrete evidences that the credit
risk of this financial instrument has not been significantly increased upon initial recognition.
If the financial instrument carries low credit risk at the balance sheet date, the Company believes that the credit risk of
this financial instrument is not significantly increased upon initial recognition.
If there are objective evidences showing that a certain financial asset has been subject to credit impairment, the
Company will accrue impairment provision for this financial asset on the individual asset basis.
The Company will always measure the loss provision for the accounts receivable and contract assets arising from the
transactions regulated by "Accounting Standard for Business Enterprises No.14 — Revenue" (2017), whether they
contain material financing compositions or not, by the amount of the expected credit loss throughout the duration.
For the lease receivables, the Company will always measure the loss provision for the accounts receivable, by the
amount of the expected credit loss throughout the duration.
If the Company no longer reasonably expects that the cash flow of the financial asset contract can be recovered as a
whole or in part, the book balance of such financial assets will be directly reduced.
11. Notes receivable
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial
instruments
12. Accounts receivable
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial
instruments
13. Receivables financing
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial
instruments
14. Other receivables
Determination method and accounting treatment for the expected credit loss of other receivables
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Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial
instruments
15. Inventories
(1) Category of inventory
Inventories are classified as raw materials, commodity stocks, products in progress and materials commissioned for
processing.
The inventories are initially measured at cost, which comprises the cost of purchase, cost of conversion and other
expenditure incurred in bringing the inventories to their present location and condition.
(2) Determination of cost
Cost of inventories is determined using the weighted average method.
(3) Basis for the determination of net realizable value and different type of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the cost of
inventories is higher than their net realizable value, reserve for stock depreciation shall be accrued. The net realizable
value means the amount after deducting the estimated cost of completion, estimated selling expenses and relevant
taxes from the estimated selling price of inventories in the daily activities.
Net realizable value of held-for-sale commodity stocks, such as finished goods, goods-in-stock, and held-for-sale raw
materials, during the normal course of production and operation, shall be determined by their estimated sales less the
related selling expenses and taxes; the net realizable value of material inventories, which need to be processed,
during the normal course of production and operation, shall be determined by the amount after deducting the
estimated cost of completion, estimated selling expenses and relevant taxes from the estimated selling price of
finished goods; the net realizable value of inventories held for execution of sales contracts or labor contracts shall be
calculated on the ground of the contracted price. If an enterprise holds more inventories than the quantity stipulated in
the sales contract, the net realizable value of the exceeding part shall be calculated on the ground of general selling
price.
If the factors influencing the write-down of the inventory value have disappeared, resulting in higher net realizable
value of inventories than their book value after the reserve for stock depreciation is accrued, a reversal shall apply in
the amount of reserve for stock depreciation previously accrued, and the reserved amount shall be included in the
current profit or loss.
(4) Inventory system
The perpetual inventory system is adopted.
(5) Amortization of low-value consumables and packaging materials
① Low-value consumables are amortized using the immediate write-off method;
② Packaging materials are amortized using the immediate write-off method.
16. Contract assets
(1) Recognition method and criteria of contract assets
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between
performance obligations and customer payments. Considerations that the Company has the right to collect for
commodities transferred or services provided to customers (and such right depends on other factors than passing of
time) are presented as contract assets. The contract assets and contract liabilities under the same contract are
presented in net amount. The Company separately presents the right possessed to collect consideration from
customers unconditionally (only depending on the passing of time) as accounts receivable.
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(2) Determination method and accounting treatment method for the expected credit loss of contract assets
For the determination method and accounting treatment method for the expected credit loss of contract assets, refer to
this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial instruments.
17. Contract costs
The contract costs comprise the contract performance cost and the cost to obtain a contract.
The costs incurred by the Company for contract performance which fall outside the scope of the enterprise accounting
standards such as inventories, fixed assets or intangible assets will be identified as an asset of the contract
performance costs upon satisfying all of the following conditions:
The costs are directly related to one existing contract or one contract that is expected to be obtained.
The costs enrich the Company's resources for future contract performance.
The costs are estimated to be recovered.
The incremental costs which are incurred by the Company to obtain the contract and are expected to be recovered will
be identified as an asset of the costs to obtain a contract.
The assets related to the contract costs will be amortized on the same basis for recognition of the income from
commodities or services related to the assets; but if the amortization period of the costs to obtain the contract is no
more than 1 year, the Company will include such costs in the current profit or loss once occurred.
In case that the book value of assets related to contract costs is higher than the difference between the two items
below, the Company will accrue the impairment provision for the extra part, and recognize that part as impairment loss:
(1) Estimated residual consideration to be obtained from transfer of commodities or services related to the assets;
(2) Estimated costs incurred from transfer of relevant commodities or services.
If the factors for impairment in the previous periods are subsequently changed, making the aforesaid difference higher
than the book value of the assets, the Company will reverse the accrued impairment provision and include it in the
current profit or loss, provided that the book value of the reversed assets does not exceed the book value of the assets
without impairment provision accrued on such date of reversal.
18. Holding assets for sale
An asset of which the book value is recovered mainly through sale (including exchange of non-monetary asset of a
commercial nature) rather than non-continuous use of a non-current asset or disposal group is classified as a holding
asset for sale.
A non-current asset or disposed group is classified by the Company as holding for sale if it meets the following criteria
at the same time:
(1) Immediate sale could be made under the current circumstances in accordance with the convention of selling such
kind of assets or disposal groups in similar transactions;
(2) Selling is extremely likely to occur, i.e. the Company has made a resolution on a selling plan and obtained
confirmed purchase commitments, and the selling is predicted to be completed within 1 year. If required by relevant
provisions that selling shall only be made after approved by the relevant competent authority or supervision
department of the Company, such approval should have been obtained.
If the book value of the non-current assets (excluding financial assets, deferred income tax assets, and assets to
constitute payroll payable) or disposal groups classified as holding for-sale assets is higher than the net amount after
deducting the selling expenses from the book value, the book value will be written down to the net amount after
deducting the selling expenses from the fair value, and the amount written down will be recognized as the impairment
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loss of assets and included in the current profit or loss. At the same time, the impairment provision for holding for-sale
assets will be accrued.
19. Long-term equity investment
(1) Joint control or significant influence criterion
Joint control is the contractually agreed sharing of control of an arrangement, and exists only when requiring the
unanimous consent of the parties sharing control before making decisions about the relevant activities of the
arrangement. The Company together with the other joint venture parties can jointly control over the investee and are
entitled to the right of the net assets of the investee, as the investee is joint venture of the Company.
Significant influence refers to the power to participate in making decisions on the financial and operating policies of an
enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties. Where the
Company can exercise significant influence over the investee, the investee is an associate of the Company.
(2) Determination of initial investment cost
① Long-term equity investments formed through business combination of entities
For the long-term equity investment in the subsidiaries arising from business combination involving entities under
common control, the initial investment cost of the long-term equity investment is the share with reference to the book
value of the shareholders' equity of the combined party in the consolidated financial statements of the ultimate
controlling party on the date of combination. The share premium in the capital reserve shall be adjusted according to
the difference between the initial investment cost of the long-term equity investment and the carrying amount of the
consideration paid; if the share premium in the capital reserve is insufficient to offset, the retained earnings shall be
adjusted. In connection with imposing control over the investee under common control as a result of additional
investment and other reasons, the share premium shall be adjusted according to the difference between the initial
investment cost of the long-term equity investment as recognized by the above principle and the carrying value of the
long-term equity investment before combination and the sum of carrying value of newly paid consideration for
additional shares acquired on the date of combination. If the share premium is insufficient for write-down, the retained
earnings shall be offset.
For the long-term equity investment in the subsidiaries arising from business combinations involving entities not under
common control, the cost of the combination ascertained on the date of acquisition shall be taken as the initial
investment cost of the long-term equity investment. In connection with imposing control over the investee not under
common control as a result of additional investment and other reasons, the initial investment cost shall be the sum of
the book value of the equity investment originally held and the newly increased initial investment cost.
② Long-term equity investments acquired by the means other than business combination
The initial cost of a long-term equity investment obtained by cash payment shall be the purchase costs actually paid.
The initial cost of investment of a long-term equity investment obtained by means of issuance of equity securities shall
be the fair value of the equity securities issued.
(3) Subsequent measurement and recognition of profit or loss
① Long-term equity investment calculated by cost method
Long-term equity investment in subsidiaries of the Company is calculated by cost method, unless the investment
meets the conditions for holding for sale. except for the actual consideration paid for the acquisition of investment or
the declared but not yet distributed cash dividends or profits which are included in the consideration, investment gains
are recognized as the Company' shares of the cash dividends or profits declared by the investee.
② Long-term equity investment accounted for by equity method
Long-term equity investments of associates and jointly controlled entities are calculated using equity method. Where
the initial investment cost of the long-term equity investment exceeds the investor's interest in the fair value of the
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investee's identifiable net assets at the acquisition date, no adjustment shall be made to the initial investment cost;
where the initial investment cost is less than the investor's interest in the fair value of the investee's identifiable net
assets at the acquisition date, the difference shall be charged to the profit or loss for the current period. At the same
time, the cost of the long-term equity investment shall be adjusted.
The Company recognizes the investment income and other comprehensive income according to the shares of net
profit or loss and other comprehensive income realized by the investee which it shall be entitled or shared respectively,
and simultaneously makes adjustment to the book value of long-term equity investment; The book value of long-term
equity investment shall be reduced by attributable share of the profit or cash dividends for distribution declared by the
investee. In relation to other changes in the owner's equity except for net profits and losses, other comprehensive
income and profit distributions of the investee (hereinafter referred to as “Changes in Other Owner's Equity”), the book
value of the long-term equity investment shall be adjusted and included in owner's equity.
When determining the amount of proportion of net profit or loss, other comprehensive income and other changes in the
owner's equity in the investee which it entitles, the fair value of each identifiable assets of the investee at the time
when the investment is obtained shall be used as basis, and according to the accounting policies and accounting
period of the Company, adjustment shall be made to the net profit and other comprehensive income of the investee.
The unrealized profit or loss resulting from transactions between the Company and its associates or joint venture shall
be eliminated in proportion to the investor's equity interest of investee, based on which investment income or loss shall
be recognized, except for those assets invested or sold constituting a business. Any losses resulting from transactions,
which are attributable to impairment of assets, shall be fully recognized.
The net loss incurred by the Company to the joint ventures or affiliates is capped when the carrying amount of long-
term equity investment and the long-term equity that substantially constitutes the net investment in the joint ventures or
affiliates have been wrote down to zero, except to the extent that the Company has an additional loss obligation. If the
joint ventures or affiliates later realize net profit, the Company will resume recognition of the income share after the
income share makes up the unrecognized loss share.
③ Disposal of long-term equity investments
For disposal of long-term equity investment, the difference between the book value and the consideration actually
received shall be included in the current profit or loss.
If the remaining equity is still subject to the equity method in partial disposal of the long-term equity investment under
the equity method, other comprehensive income recognized in the original equity investment shall be carried forward
at the appropriate proportion on the same basis used by the investee for direct disposal of relevant assets or liabilities,
and other changes in the owner's equity shall be carried forward into the current profit or loss at the appropriate
proportion.
When losing the control or material influence over the investee due to disposal of the equity investment and other
reasons, other comprehensive income recognized in the original equity investment due to adoption of the equity
method shall be subject to accounting treatment on the same basis used by the investee for direct disposal of relevant
assets or liabilities when ceasing to use the equity method, and other changes in the owner's equity shall be carried
forward into the current profit or loss in full when ceasing to use the equity method.
If the control over the investee is lost due to partial disposal of the equity investment and other reasons, and if the
remaining equities can exercise common control or material influence over the investee in preparing the individual
financial statements, the remaining equities shall be accounted by the equity method and shall be adjusted as if such
remaining equities have been accounted for under the equity method since they are obtained. Other comprehensive
income recognized before the control over the investee is obtained shall be carried forward pro rata on the same basis
used by the investee for direct disposal of relevant assets or liabilities, and other changes in the owner's equity
recognized under the equity method shall be carried forward into the current profit or loss pro rata. The remaining
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equities which cannot exercise common control or material influence over the investee shall be recognized as financial
assets, and the difference between their fair value and book value on the date when the control is lost shall be
included in the current profit or loss. Other comprehensive income recognized and other changes in the owner's equity
recognized before the control over the investee is obtained shall be carried forward in full.
If the disposal of the equity investment in the subsidiaries through multiple transactions until loss of the control is a
package deal, each transaction shall be subject to accounting treatment as a transaction to dispose of the equity
investment in the subsidiaries and to lose the control; the difference between the price for each disposal before loss of
the control and the book value of the long-term equity investment of the equity disposed of shall be first recognized as
other comprehensive income in the individual financial statements and shall then be carried forward to the profit or loss
for the very period when the control is lost. If it is not a package deal, each transaction shall be subject to accounting
treatment.
20. Investment property
Investment property refers to the real estate held to generate rental income or capital appreciation, or both, including
leased land use rights, land use rights held for transfer after appreciation, and leased buildings (including buildings that
are leased after completion of self-construction or development activities and buildings in construction or development
that are used for rental in the future).
The Company adopts the cost mode to measure the existing investment property. The subsequent expenditure related
to the investment property will be included in the cost of the investment property when relevant economic benefits are
likely to flow in and costs can be measured reliably, or otherwise be included in the current profit or loss when
occurred. Investment property measured at cost - buildings held for leasing shall adopt the same depreciation policy
for fixed assets of the company, land use rights held for leasing shall adopt the same amortization policy for the
intangible assets.
21. Fixed assets
(1) Recognition criteria
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to
others, or for administrative purposes; and have a service life of more than one accounting year. Fixed asset is
recognized when it meets the following conditions: ① It is probable that the economic benefits associated with the
fixed asset will flow to the enterprise; ② Its cost can be reliably measured. The fixed assets are initially measured at
cost (with the impact of predicted discard expense taken into account). The subsequent expenditure related to the
fixed assets will be included in the cost of the fixed assets when the economic benefits in connection therewith are
likely to flow in and costs can be measured reliably; the book value of the replaced part will be derecognized; all other
subsequent expenditure will be included in the current profit or loss when occurred.
(2) Methods for depreciation
Useful lives of Annual depreciation
Category Depreciation method Residual Ratio
depreciation rate
Housing and building Straight-line method 20 5% 4.75%
Machinery and
Straight-line method 5-10 5% 19.00%-9.50%
equipment
Means of transport Straight-line method 4-8 5% 23.75%-11.88%
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Electronic and other
Straight-line method 3-5 5% 31.67%-19.00%
equipment
Fixed assets are depreciated by categories using the straight-line method, and the annual depreciation rates are
determined by categories based upon their estimated useful lives and their estimated residual values. Where the parts
of a fixed asset have different useful lives or cause economic benefits for the enterprise in different ways, different
depreciation rates or depreciation methods shall apply, and each part is depreciated separately.
(3) Disposal of fixed assets
When fixed assets are disposed of or when no economic benefits can be expected through use or disposal thereof,
such fixed assets will be derecognized. The income from disposal of the fixed assets through sale, transfer, scrapping
or damage with the book value thereof and relevant taxes deducted is included in the current profit or loss.
22. Projects under construction
The projects under construction are measured at the actual cost. The actual cost comprises the building cost,
installation cost, borrowing cost qualified for capitalization and other necessary expenditures incurred to bring the
projects under construction to the conditions before they are made ready for the intended use. The projects under
construction will be converted into fixed assets when they are ready for intended use and will be depreciated from the
next month on.
23. Borrowing costs
(1) Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to the acquisition, construction or production
of assets qualified for capitalization, the costs will be capitalized and included in the costs of the related assets. Other
borrowing costs shall be recognized as expense in the period in which they are incurred and included in profit or loss
for the current period.
Assets qualified for capitalization are assets (fixed assets, investment property, inventories, etc.) that necessarily take
a substantial period of time for acquisition, construction or production to get ready for their intended use or sale.
(2) Capitalization period of borrowing costs
The capitalization period shall refer to the period between the commencement and the cessation of capitalization of
borrowing costs, excluding the period in which capitalization of borrowing costs is temporarily suspended.
Capitalization of borrowing costs begins when the following three conditions are fully satisfied:
① expenditures for the assets (including cash paid, transferred non-currency assets or expenditure for holding debt
liability for the acquisition, construction or production of assets qualified for capitalization) have been incurred;
② borrowing costs have been incurred;
③ acquisition, construction or production that are necessary to enable the asset reach its intended usable or salable
condition have commenced.
Capitalization of borrowing costs shall be suspended during periods in which the qualifying asset under acquisition and
construction or production ready for the intended use or sale.
(3) Suspension of capitalization period
Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction or
production of a qualifying asset is interrupted abnormally, when the interruption is for a continuous period of more than
3 months; if the interruption is a necessary step for making the qualifying asset under acquisition and construction or
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production ready for the intended use or sale, the capitalization of the borrowing costs shall continue. The borrowing
costs incurred during such period shall be recognized as profits and losses of the current period. When the acquisition
and construction or production of the asset resumes, the capitalization of borrowing costs commences.
(4) Calculation of capitalization rate and amount of borrowing costs
Specific borrowings for the acquisition, construction or production of assets qualified for capitalization, borrowing costs
of the specific borrowings actually incurred in the current period minus the interest income earned on the unused
borrowing loans as a deposit in the bank or as investment income earned from temporary investment will be used to
determine the amount of borrowing costs for capitalization.
General borrowings for the acquisition, construction or production of assets qualified for capitalization, the to-be-
capitalized amount of interests on the general borrowing shall be calculated and determined by multiplying the
weighted average asset disbursement of the part of the accumulative asset disbursements minus the specifically
borrowed loans by the capitalization rate of the general borrowing used. The capitalization rate shall be calculated and
determined according to the weighted average interest rate of the general borrowing.
During the capitalization, the difference between the principal and interest of special borrowings in foreign currency
shall be capitalized and included in the cost of assets qualified for capitalization. The difference between the principal
and interest of the borrowings in foreign currency other than the special borrowings in foreign currency shall be
included in the current profit or loss.
24. Intangible assets
(1) Valuation method, service life, impairment test
1) Valuation method of intangible assets
① Intangible assets are initially measured at cost upon acquisition
The costs of an externally purchased intangible asset include the purchase price, relevant taxes and expenses paid,
and other expenditures directly attributable to putting the asset into condition for its intended use.
② Subsequent measurement
The service life of intangible assets shall be analyzed and judged upon acquisition.
As for intangible assets with a finite service life, they are amortized using the straight-line method over the term in
which economic benefits are brought to the firm; If the term in which economic benefits are brought to the firm by an
intangible asset cannot be estimated, the intangible asset shall be taken as an intangible asset with indefinite service
life, and shall not be amortized.
2) Estimation of service life of the intangible assets with limited service life
Item Estimated useful lives Basis
Land use rights 40 or 50 years Land use certificate
Non-patented technology 5-10 years Expected benefited period
Softwares 2-5 years Expected benefited period
Trademark rights 6 years Expected benefited period
Software copyright 10 years Expected benefited period
For an intangible asset with a finite service life, review on its service life and amortization method is performed at the
end of each end and is subject to adjustment as necessary.
Upon review, service life and amortization method for the intangible assets are the same with the previous estimate at
the end of this period.
3) The basis for the judgment of intangible assets with uncertain service life and the procedure for reviewing
their service life
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As at the balance sheet date, the Company has no intangible assets with uncertain service life.
(2) Accounting policy for internal R&D expenditure
1) Specific criteria for the division of research phase and development phase
The expenses for internal research and development projects of the Company are divided into expenses in the
research phase and expenses in the development phase.
Research phase: Scheduled innovative investigations and research activities to obtain and understand scientific or
technological knowledge.
Development phase: Apply the research outcomes or other knowledge to a plan or design prior to a commercial
production or use in order to produce new or essentially-improved materials, devices, products, etc.
2) Specific condition for capitalizing expenditure during the development phase
Expenses in the research phase are recorded into the profits and losses for the current period when they occur. The
expenses in the development phase are recognized as intangible assets if the following conditions are fulfilled, and are
included in the current profit or loss if following conditions are not fulfilled:
① It is technically feasible to complete such intangible asset so that it will be available for use or for sale;
② There is intention to complete the intangible asset for use or sale;
③ The intangible asset can produce economic benefits, including there is evidence that the products produced using
the intangible asset has a market or the intangible asset itself has a market; if the intangible asset is for internal use,
there is evidence that there exists usage for the intangible asset;
④ There is sufficient support in terms of technology, financial resources and other resources in order to complete the
development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤ The expenses attributable to the development stage of the intangible asset can be measured reliably.
If the expenses in the research phase and expenses in the development phase cannot be distinguished, all the
expenses incurred for R&D are included in the current profit or loss. The costs of intangible assets generating from
internal development activities only include total expenditures from the time point when the conditions for capitalization
are met to the time when the intangible assets are ready for their intended use. No adjustment will be made further for
any expenditure that has been included in expense and recognized in profit or loss before the same intangible asset
has met the conditions for capitalization in the development phase.
25. Impairment of long-term assets
Long-term assets, such as long-term equity investment, investment properties that are measured at cost, fixed assets,
construction in progress, intangible assets with limited service life and oil and gas assets are tested for impairment if
there is any indication that an asset may be impaired at the balance sheet date. If the result of the impairment test
indicates that the recoverable amount of the asset is less than its book value, a provision for impairment and an
impairment loss are recognized for the amount by which the asset's book value exceeds its recoverable amount. The
recoverable amount is the higher of an asset's fair value less costs to sell and the present value of the future cash
flows expected to be derived from the asset. Provision for asset impairment is determined and recognized on the
individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable
amount of a group of assets to which the asset belongs to is determined. A group of assets is the smallest group of
assets that is able to generate cash inflows independently.
For the goodwill arising from business combination, intangible assets with uncertain service life, and intangible assets
which are not ready for intended use, impairment test shall be conducted at least at the end of each year, regardless
of whether there are signs of impairment or not.
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When the Company carry out impairment test to goodwill, the Company shall, as of the purchasing day, allocate on a
reasonable basis the book value of the goodwill formed by merger of enterprises to the relevant asset groups, or if
there is a difficulty in allocation, to allocate it to the sets of asset groups. Relevant asset groups or the sets of asset
groups mean those can benefit from the synergy of business combination.
For the purpose of impairment test on the relevant asset groups or the sets of asset groups containing goodwill, if any
evidence shows that the impairment of asset groups or sets of asset groups related to goodwill is possible, an
impairment test will be made first on the asset groups or sets of asset groups not containing goodwill, thus calculating
the recoverable amount and comparing it with the relevant book value so as to recognize the corresponding
impairment loss. An impairment test will be made on the asset groups or sets of asset groups containing goodwill to
compare the book value of these asset groups or sets of asset groups with the recoverable amount. Where the
recoverable amount is lower than the book value, the amount of impairment loss shall set off and be apportioned to the
book value of the goodwill in the asset groups or sets of asset groups, and then set off the book value of other assets
pro rata according to the proportion of the book value of other assets other than the goodwill in the asset groups or
sets of asset groups. Once the above asset impairment loss is recognized, it will not be reversed in the subsequent
accounting periods.
26. Long-term deferred expenses
Long-term deferred expenses are expenses which have occurred but will benefit over 1 year and shall be amortized
over the current period and subsequent periods, and mainly consist of improvement expenditure of fixed assets leased.
Long-term deferred expenses are amortized evenly by installments over the estimated benefit period.
27. Contract liabilities
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between
performance obligations and customer payments. The Company lists the obligation to transfer commodities or offer
services to customers for the consideration received or receivable from customers as contract liabilities. The contract
assets and contract liabilities under the same contract are presented in net amount.
28. Employee compensation
(1) Accountant arrangement method of short-term remuneration
During the accounting period when the staff provides service, the Company will recognize the short-term remuneration
actually incurred as liabilities, and the liabilities would be charged into current profits and loss or costs of assets.
The Company will pay social insurance and housing funds, and will make provision of trade union funds and staff
education costs in accordance with the requirements. During the accounting period when the staff provides service,
the Company will determine the relevant amount of employee benefits in accordance with the required provision basis
and provision ratios.
Employee compensation actually incurred by the Company will be included in the current profit or loss or relevant
asset costs when actually incurred, in which non-monetary benefits will be measured at the fair value.
(2) Accountant arrangement method of retirement benefit plan
① Defined contribution plan
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The Company will pay basic pension insurance and unemployment insurance in accordance with the relevant
provisions of the local government for the staff. During the accounting period when the staff provides service, the
Company will calculate the amount payable in accordance with the local stipulated basis and proportions which will be
recognized as liabilities, and the liabilities would be charged into current profits and loss or costs of assets. Besides,
the Company also participated in the supplementary endowment insurance fund programs approved by relevant
authorities. The Company conducts payment to local social insurance institutions according to certain proportion of
employees' wages and corresponding expenditures are included in profit or loss for the period or relevant asset costs.
② Defined benefit scheme
The welfare responsibilities generated from defined benefit scheme based on the formula determined by projected unit
credit method would be vested to the service period of the staff and charged into current profits and loss or costs of
assets.
(3) Accounting treatment of termination benefits
If the dismissal welfare is provided by the Company to employees, the employee compensation liabilities arising from
the dismissal welfare shall be determined at the earliest of the following two, and included in the current profits and
losses: When the company cannot unilaterally withdraw the dismissal welfare provided due to the termination of labor
relations plan or layoff proposal; When the company determines the costs or expenses associated with the
restructuring involving the payment of dismissal welfare.
29. Estimated liabilities
The Company shall recognize the obligations related to contingencies as estimated liabilities, when all of the following
conditions are satisfied:
(1) The obligation is a present obligation of the Company;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities shall be initially measured at the best estimate of the expenditure required to settle the related
present obligation.
Factors pertaining to a contingency such as risk, uncertainties, and time value of money shall be taken into account as
a whole in reaching the best estimate. Where the effect of the time value of money is material, the best estimate shall
be determined by discounting the related future cash outflow.
The expenses required have a successive range, in which the possibilities of occurrence of each result are the same,
and the best estimate should be determined as the middle value for the range; in other circumstances, the best
estimate will be handled as follows, respectively:
For the contingencies involving a single item, it will be determined according to the amount most likely to occur.
For the contingencies involving several items, it will be determined according to the possible results and the relevant
possibilities.
Where some or all of the expenditure required to settle an estimated liability is expected to be reimbursed by a third
party, the reimbursement is separately recognized as an asset when it is virtually certain that the reimbursement will
be received. The amount recognized for the reimbursement is limited to the book value of the estimated liability.
The Company will review the book value of the estimated liabilities on the balance sheet date, and if there are
concrete evidences that such book value cannot reflect the current best estimate, the book value will be adjusted
according to the current best estimate.
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30. Share-based payment
The Company's share-based payment refers to a transaction in which an enterprise determines the liabilities on the
basis of equity instruments granting or bearing for the acquisition of service from its employees or other parties. The
Company's share-based payment is equity-settled.
As to an equity-settled share-based payment in return for services of employees, calculation will be based on the fair
value of the equity instrument granted to the employees. The share-based payment transactions vested immediately
after the date of grant will be included in the relevant cost or expense based on the fair value of the equity instrument
on the date of grant, and the capital reserve will be increased accordingly. For the services within the waiting period or
the share-based payment transactions that may only be vested when the specified performance conditions are met
after the date of grant, the Company will include the services obtained in the current period in relevant cost or expense
and increase the capital reserve at the fair value on the date of grant according to the best estimate of the number of
the exercisable equity instruments on each balance sheet date in the waiting period.
If the terms of the equity-settled share-based payment are amended, the Company shall recognize the services
received at least based on the situation before the amendment was made. In addition, any amendment resulting in the
increase of the fair value of the equity instrument granted or changes that are beneficial to the staff on the amendment
date, will be recognized as an increase in the service received.
If the equity instruments vested are canceled during the waiting period, the Company will take the vested equity
instruments canceled as accelerated exercise, and immediately include the amount to recognize during the waiting
period in the current profit or loss. At the same time, the capital reserve will be recognized. However, if new equity
instruments are vested and they are verified at the vesting date of new equity instrument as alternatives vested to
canceled equity instruments, the treatment on the new equity instrument is in conformity with the modified treatment
on disposal of equity instrument.
31. Income
(1) Accounting policies for revenue recognition and measurement
If the Company performed the obligations in the contract, revenue shall be recognized when the customer acquires the
right of control over relevant commodities or services. Acquisition of control over relevant commodities or services
means gaining the ability to direct the use of such commodities or services and obtain nearly all the economic benefits
therefrom.
If the contract contains two or more performance obligations, the Company shall apportion the transaction price to
each individual performance obligation on the contract commencement date according to the relative proportion of the
individual selling price of the commodities or services promised by each individual performance obligation. The
Company measures the revenue according to the transaction price apportioned to each individual performance
obligation.
The transaction price refers to the amount of consideration that the Company is expected to be entitled to collect due
to the transfer of commodities or services to customers, excluding the payments collected on behalf of third parties
and the payments expected to be returned to customers. The Company will determine the transaction price according
to the contract provisions and its past practices, and may take into account the impact from the variable consideration,
the major financing components in the contract, the non-cash consideration, the payable customer consideration and
other factors when determining the transaction price. The Company shall determine the transaction price containing
the variable consideration according to the amount not exceeding the amount by which the accumulative recognized
revenue is much more unlikely to be significantly reversed when relevant uncertainties are eliminated. If there are
major financing components in the contract, the Company shall determine the transaction price according to the
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amount due assumed to be paid in cash when the customer acquires the control over the commodities or services,
and shall amortize the difference between such transaction price and the contract consideration using the effective
interest rate method during the contract period.
When one of the following conditions is met, it belongs to the performance obligation within a certain period of time, or
otherwise it belongs to the performance obligation at a certain point of time:
The customer acquires and consumes the economic benefits arising from the Company's performance while the
company performs the contract.
The customer can control the commodities in progress during the Company's performance.
The commodities produced by the Company during the performance possess have irreplaceable usage, and the
company has the right to collect payment for the performance part accumulated so far during the entire contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the revenue
according to the performance progress within that period of time, except that the performance progress cannot be
reasonably determined. The Company will determine the performance progress through the output or input method by
taking into account the nature of commodities or services. If the performance progress cannot be reasonably
recognized and the costs incurred are expected to be compensated, the Company will recognize the revenue
according to the amount of costs incurred until the performance progress can be reasonably recognized.
For the performance obligations performed at a certain point of time, the Company will recognize the revenue when
the customer acquires the right of control over relevant commodities or services. While determining whether the
customer has acquired the control over the commodities or services, the Company shall take the following into
consideration:
The Company has the current collection right for the such commodities or services, that is, the customer has the
current payment obligation for such commodities or services.
The Company has transferred the legal title of such commodities to the customer, that is, the customer already has
the legal title of such commodities.
The Company has transferred the physical commodities to the customer, that is, the customer has possessed the
physical commodities.
The Company has transferred the major risks and rewards of the commodity title to the customer, that is, the
customer has acquired the major risks and rewards of the commodity title.
The customer has accepted such commodities or services.
(2) The specific principles are as below:
① Principle for recognizing revenue from the domestic sales of standard products: The Company's security standard
products are sold, through both direct sale and distribution, to the project clients, dealers and other customers. The
Company and customers sign sales contracts and send the goods to customers according to the contractual terms of
delivery, or the customers pick up goods. The revenue is recognized after the customer receives and accepts the
goods and the Company obtains the evidence proving the client's receipt of goods.
② Principle for recognizing revenue from the overseas sales of standard products: If the domestic company makes
direct export, the FOB and CIF terms are generally adopted and the Company recognizes the sale income after the
product is declared and exported. If a foreign subsidiary sells the goods abroad, the goods will be sent to the customer
or the customer will collect the goods according to the delivery method agreed with the customer, and the income will
be recognized when the customer receives and accepts the goods.
③ Principle for recognizing system-integrated sales revenue: The sales of the system-integrated products of the
Company include providing the supporting services such as plan design, supporting products, installation, debugging
and system trial operation. The sales income will be recognized upon acceptance.
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④ Principle for recognizing the income from labor services: The income is recognized when the labor service is
provided.
Difference in the accounting policies for revenue recognition arising from different business models of the same kind of
business
N/A
32. Government subsidies
(1) Type
Government grants are monetary assets and non-monetary assets acquired by the Company from the government
free of charge. Government grants are classified into government grants related to assets and government grants
related to revenue.
Government grants related to assets refer to government grants acquired by the Company for the purpose of
purchasing or constructing or otherwise forming long-term assets. Government grants related to revenue refer to the
government grants other than those related to assets.
(2) Confirmation of time point
Government grants related to assets will be measured at the actual amount of money received at the time of receipt.
The assets (bank deposits) and deferred income shall be period by period included in the profits and losses of the
current period in a reasonable and systematic manner from the time the assets are available for use (those related to
the Company's daily activities shall be included in other income; those unrelated to the Company's daily activities shall
be recognized as non-operating income). When the relevant assets are disposed of (sold, transferred, scrapped, etc.)
at or before the end of their service life, the balance of the deferred income that has not yet been apportioned will be
transferred to the current-period income from the disposal of the assets on an one-time manner, and will not be
deferred.
For government grants related to revenue, they will be recognized as profit and loss of the current period according to
the amount receivable for government grants obtained under fixed quota standards, otherwise, they will be recognized
as profit and loss of the current period when it is actually received.
(3) Accounting treatment
Government grants related to assets shall write off the book value of relevant assets or be recognized as deferred
income. When recognized as deferred income, the government grant related to assets will be period by period credited
to the profits and losses of the current period in a reasonable and systematic manner within the service life of relevant
assets (those related to the Company's daily activities shall be recognized as other income; those unrelated to the
Company's daily activities shall be recognized as non-operating income).
The revenue-related government grants shall be recognized as deferred income if they are used to compensate
relevant expenses or losses in subsequent periods, and they shall be included in profit and loss of the current period
(those related to Company's routine activities shall be included in other income; those unrelated to the Company's
routine activities shall be included in non-operating income) or used to offset relevant expenses or losses during the
recognition of related expenses or losses; the grants used to compensate related expenses or losses incurred shall be
included in profit and loss of the current period (those related to Company's routine activities shall be included in other
income; those unrelated to the Company's routine activities shall be included in non-operating income) or used to
offset relevant expenses or losses.
The policy-oriented concessional loan discount interests obtained by the Company will be subject to accounting
treatment in the following two circumstances:
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① Where the finance allocates the discount interest funds to the lending bank, and the lending bank provides loans to
the Company at the policy preferential interest rate, the Company will take the actually received loan amount as the
entry value of the loan, and the relevant borrowing costs shall be calculated according to the loan principal and the
policy preferential interest rate.
② If the finance directly allocates the discount interest funds to the Company, the Company will set off the
corresponding discount interest against the relevant borrowing costs.
33. Deferred income tax assets / deferred income tax liabilities
Income tax comprises current income tax and deferred income tax. Except for the income taxes arising from the
business combination and the transactions or matters that are directly included in the owner's equity (including other
comprehensive income), the Company will include the current income tax and deferred income tax into the current
profit or loss.
Deferred income tax assets and deferred income tax liabilities will be calculated and recognized according to the
difference (temporary difference) between the tax basis and the book value of assets and liabilities.
Deferred income tax assets are recognized to the extent that it is probable that future taxable profits will be available
against which deductible temporary differences can be utilized. For deductible losses and tax credits that can be
reversed in the future period, deferred tax assets shall be recognized to the extent that it is probable that taxable profit
will be available in the future to offset the deductible losses and tax credits.
Save as the exceptions, deferred income tax liabilities shall be recognized for the taxable temporary difference.
The exceptions where deferred income tax assets and liabilities are not recognized include:
Initial recognition of the goodwill;
Transactions or matters other than business combinations and neither profit nor taxable income (or deductible loss)
will be affected when transactions occur.
Taxable temporary difference related to investment in the subsidiaries, affiliates and joint ventures will be recognized
as deferred income tax liabilities, unless the Company can control the time to reverse such temporary difference and
such temporary difference is much more unlikely to be reversed in the predictable future. Deductible temporary
difference related to investment in the subsidiaries, affiliates and joint ventures will be recognized as deferred income
tax assets when such temporary difference is much more likely to be reversed in the predictable future and is much
more likely to be obtained to deduct the taxable income of the deductible temporary difference.
On the balance sheet date, the deferred income tax assets and the deferred income tax liabilities will be measured at
the tax rate applicable during the recovery of relevant assets or payment of relevant liabilities as expected according to
the provisions of the tax law.
On the balance sheet date, the Company will review the book value of the deferred income tax assets. If no sufficient
taxable income is likely to be obtained to offset the benefits of deferred income tax assets in the future, the book value
of deferred income tax assets shall be written down. The amount written down shall be reversed when it is likely to
obtain sufficient taxable income.
After granted the legal rights of net settlement and with the intention to use net settlement or obtain assets and repay
debt at the same time, the net amount after offsetting its current income tax assets and current income tax liabilities
shall be recorded.
On the balance sheet date, the deferred income tax assets and the deferred income tax liabilities will be presented by
the net amount after offsetting when the following conditions are fulfilled:
The taxpayer is granted the legal rights of net settlement of current income tax assets and current income tax
liabilities;
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Deferred income tax assets and deferred income tax liabilities are related to income tax to be paid by the same
entity liable to pay tax to the same tax collection and management authority or related to different entities liable to pay
tax, but the relevant entity liable to pay tax is intended to apply net settlement of current income tax assets and
liabilities or, at the same time, obtain assets, repay debt whenever every deferred income tax assets and liabilities with
importance would be reversed in the future.
34. Lease
Lease means the contract by which the lessor transfers the right to use the assets to the lessee for a given period to
obtain the consideration. On the commencement of the contract, the Company will assess whether the contract is a
lease or contains the lease. If a party to the contract conveys the right to control the use of one or more identified
assets for a given period to obtain a consideration, this contract is a lease or contains the lease.
If a contract contains several individual leases, the Company will split the contract and conduct accounting treatment
of each individual lease separately. If a contact contains both lease and non-lease, the lessee and the lessor will split
the lease and non-lease parts.
(1) The Company as a lessee
① Right-of-use assets
The Company recognizes the right-to-use assets for the lease other than short-term lease and low-value asset lease
on the commencement of the lease term. The right-to-use assets are initially measured at cost which includes:
Initial measurement amount of lease liabilities;
The lease payment paid on or before the commencement of the lease term; if there are lease incentives, the
relevant amount of lease incentives enjoyed shall be deducted;
Initial direct cost incurred by the Company;
The estimated costs incurred by the Company for dismantling and removing the leased asset, restoring the site
where the leased asset is located or restoring the leased asset to the state agreed in the lease terms, but
excluding the cost incurred to produce the inventory.
The Company will depreciate the right-to-use assets through the straight-line method. If it can be reasonably
recognized that the title of the leased asset is acquired at the expiration of the lease term, the Company shall accrue
depreciation within the remaining service life of the leased asset; or otherwise, the leased asset shall be depreciated
within the shorter of the lease term and the remaining service life of the leased asset.
The Company will determine whether the right-of-use assets are impaired and conduct accounting treatment over the
identified impairment loss according to the principles set out in this section Financial Report - V. Significant Accounting
Polices and Accounting Estimates - 25. Impairment of long-term assets.
② Lease liabilities
The Company recognizes the lease liabilities for the lease other than short-term lease and low-value asset lease on
the commencement of the lease term. Lease liabilities shall be initially measured at the present value of the unpaid
lease payments. Lease payments include:
Fixed payment (including actual fixed payment), and if there are lease incentives, the relevant amount of lease
incentives shall be deducted;
Variable lease payment depending on the index or ratio;
Predicted payment on the basis of the guaranteed residual value provided by the Company;
Exercise price of the call option, provided that the Company will exercise such option, as reasonably determined;
Payment for exercise of the lease termination option, provided that the lease term reflects the Company's future
exercise of the lease termination option.
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The interest rate implicit in lease is applied by the Company as the discount rate. If the interest rate implicit in lease
cannot be reasonably determined, the Company's interest rate on incremental borrowings is applied as the discount
rate.
The Company shall calculate the interest expense of the lease liabilities during each period of the lease term at a fixed
periodic interest rate and include it in the current profit or loss or relevant asset cost.
The variable lease payment which is not included in the measurement of lease liabilities shall be included in the
current profit or loss or relevant asset cost when actually incurred.
If any of the following circumstances happens on commencement of the lease term, the Company will remeasure the
lease liabilities and adjust the corresponding right-of-use assets, and if the book value of the right-of-use assets has
been reduced to zero, but the lease liabilities still need to be further reduced, the difference shall be included in the
current profit or loss:
When the assessment result of the call option, renewal option or termination option is changed or the actual
exercise of the aforesaid option is inconsistent with the original assessment result, and the Company remeasures
the lease liabilities at the present value worked out according to the changed lease payment and the revised
discount rate;
When there are changes in the actual fixed payment, the estimated payable amount of guaranteed residual value,
or the index or ratio applied to determine the amount of lease payments, the Company remeasures the lease
liabilities at the present value worked out according to the changed lease payment and the original discount rate.
If the change in the lease payment originates from the change in the floating interest rate, the present value will be
calculated using the revised discount rate.
③ Short-term lease and low-value asset lease
The Company chooses not to recognize the right-of-use assets and lease liabilities for the short-term lease and low-
value asset lease, and records relevant lease payment into the current profit or loss or relevant asset cost according to
the straight-line method in each period of the lease term. Short-term lease means the lease of no more than 12
months and excluding the call option on the commencement of the lease term. Low-value asset lease means a lease
of lower value when the single leased asset is brand-new. If the Company sublets or is expected to sublet the leased
assets, the original lease is not a low-value asset lease.
④ Lease change
If the lease is changed and meets all of the following conditions, the Company will conduct accounting treatment with
respect to such lease change as a single lease:
Such lease change has expanded the scope of lease by adding the right to use one or more leased assets;
The increased consideration and the separate consideration for the expanded part of the scope of lease shall be
equivalent to the amount adjusted according to this contract.
If the lease change is not subject to accounting treatment as a single lease, on the effective date of the lease change,
the Company will re-apportion the consideration of the changed contract, re-determine the lease term and remeasure
the lease liabilities at the present value worked out according to the changed lease payment and the revised discount
rate.
If the lease change results in narrower scope of lease or shorter lease term, the Company will reduce the book value
of the right-of-use assets accordingly, and will include relevant gain or loss from partial or full termination of the lease
in the current profit or loss. If other lease changes result in re-measurement of the lease liabilities, the Company will
adjust the book value of the right-to-use assets accordingly.
(2) The Company as a lessor
On commencement of the lease term, the Company will divide the lease into financial lease and operating lease.
Financial lease means the lease that has substantially transferred almost all the risks and rewards related to the title of
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the leased assets, whether or not the title will be finally transferred. Operating lease means any lease other than
financial lease. When the Company serves as a lessor of the sublease, the sublease will be classified on the basis of
the right-to-use assets resulting from the original lease.
① Accounting treatment of operating lease
The lease receipts for the operating lease will be recognized as the rental income according to the straight-line method
during each period of the lease term. The initial direct fee related to the operating lease to be incurred by the Company
will be capitalized and will be apportioned and included in the current profit or loss on the same basis as that for
recognition of the rental income in the lease term. The variable lease payments that are not included in the lease
receipts shall be included in the current profit or loss when they actually occur. In case of a change to the operating
lease, the Company will conduct accounting treatment with respect to the changed operating lease as a new lease as
of the effective date of the change, and the lease payments received in advance or receivable with respect to the lease
before the change will be taken as the lease receipts for the new lease.
② Accounting treatment of financial lease
On the commencement of the lease term, the Company will recognize the financial lease receivables for the financial
lease, and derecognize the financial lease assets. The Company will take the net lease investment as the entry value
of the financial lease receivables when initially measuring the financial lease receivables. The net lease investment is
the sum of the unguaranteed residual value and the present value of the unreceived lease receipts discounted
according to the interest rate implicit in the lease on the commencement of the lease term.
The Company will calculate and recognize the interest income during each period of the lease term at a fixed periodic
interest rate. The derecognition and impairment of the financial lease receivables will be subject to accounting
treatment according to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10.
Financial instruments.
The variable lease payments that are not included in the measurement of the net lease investment shall be included in
the current profit or loss when they actually occur.
If the financial lease is changed and meets all of the following conditions, the Company will conduct accounting
treatment with respect to such change as a single lease:
Such change has expanded the scope of lease by increasing the right to use one or more leased assets;
The increased consideration and the separate consideration for the expanded part of the scope of lease shall be
equivalent to the amount adjusted according to this contract.
If the change in the financial lease is not subject to accounting treatment as a single lease, the Company will treat the
changed lease in the following circumstances:
If the change takes effect on commencement of the lease term and the lease is classified as operating lease, the
Company will conduct accounting treatment with respect to such lease as a new lease as of the effective date of
the lease change, and will take the net lease investment before the effective date of the lease change as the book
value of the leased asset;
If the change takes effect on the commencement of the lease term, and such lease is classified as the financial
lease, the Company will conduct accounting treatment according to the policy regarding modification or re-negotiation
of the contract in this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10.
Financial instruments.
(3) Sale and leaseback transaction
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to a
sale in accordance with the provisions of the this section Financial Report - V. Significant Accounting Polices and
Accounting Estimates - 31. Income.
① The Company as a lessee
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If the asset transfer in the sale and leaseback transaction is a sale, the Company as the lessee shall measure the
right-of-use asset arising from the sale and leaseback according to the part related to the right of use acquired from
the leaseback in the original book value of the asset, and only recognize relevant gain or loss on the rights transferred
to the lessor; if the asset transfer in the sale and leaseback transaction is not a sale, the Company as the lessee shall
continue to recognize the transferred asset, and recognize a financial liability equal to the transfer income. For
accounting treatment of the financial liabilities, refer to this section Financial Report - V. Significant Accounting Polices
and Accounting Estimates - 10. Financial instruments.
② The Company as a lessor
If the asset transfer in the sale and leaseback transaction is a sale, the Company as the lessee shall conduct
accounting treatment with respect to the asset purchase and conduct accounting treatment with respect to the asset
lease according to the policy in the foregoing "2. The Company as a lessor"; if the asset transfer in the sale and
leaseback transaction is not a sale, the Company as the lessor shall derecognize the transferred asset, but recognize
a financial asset equal to the transfer income. For accounting treatment of the financial assets, refer to this section
Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial instruments.
35. Other significant accounting policies and accounting estimates
(1) Termination of operation
Termination of business is a separately distinguishable constituent part that satisfies one of the following conditions
and that has been disposed of or classified by the Company as held for sale:
① This constituent part represents an independent primary business or a separate principal operating area;
② This constituent part is part of an associated plan to dispose of for an independent primary business or a separate
principal operating area;
③ This constituent part is a subsidiary acquired for resale.
The profit or loss from going concern and the profit or loss from discontinued operation will be separately presented in
the income statement. The operating profit or loss and the profit or loss from disposal, including impairment loss and
reversed amount from discontinued operation, will be presented as the profit or loss from discontinued operation. For
the discontinued operation presented in the current period, the Company will present the information previously
presented as the profit or loss from going concern as the profit or loss from discontinued operation during the
comparable accounting period.
(2) Repurchase of the Company's shares
The Company's shares repurchased by the Company for reducing the registered capital or rewarding employees shall
be treated as the treasury shares based on the actual amount paid, and shall be checked and registered at the same
time. If the repurchased shares are canceled, the difference between the actual amount paid for the repurchase and
the total par value of shares calculated by the par value of the canceled shares and the number of canceled shares will
write off the capital reserve. If the capital reserve is insufficient, the retained income will be written off; if the
repurchased shares are awarded to the employees of the Company, it shall be categorized as equity-settled share-
based payment. When the Company receives the payment made by employees who exercise their rights to purchase
such shares, the amount shall be used to write off the cost of treasury shares delivered to employees and the capital
reserve in the waiting period and meanwhile, the capital reserve (stock premium) shall be adjusted according to the
difference.
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36. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□ Applicable Not applicable
(2) Changes in significant accounting estimates
□ Applicable Not applicable
Ⅵ. Taxes
1. Major categories of taxes and tax rates
Tax Type Taxation basis Tax rate
According to the provisions of the tax
law, the sales tax shall be calculated
on the basis of the income by selling
goods and taxable services. After 13%, 9%, 6%, simple collection rate
VAT deducting the input tax that is of 5%, simple collection rate of 3%,
allowed to be deducted from the 0% and tax-free
sales tax in the current period, the
difference shall be the value added
tax
Urban Maintenance and Construction
Actually paid turnover tax 7%, 5%
Tax
Enterprise Income Tax Taxable income 15%, 16.5%, 20%, 25%
Education Surcharges Actually paid turnover tax 3%
Local Education Surcharges Actually paid turnover tax 2%
If there are multiple taxpayers with different enterprise income tax rates, specify the situation
Name of taxpayer Income tax rate
Zhejiang Dahua Technology Co., Ltd. 15%
Zhejiang Dahua System Engineering Co., Ltd. 15%
Zhejiang Huachuang Vision Technology Co., Ltd. 15%
Zhejiang HuaRay Technology Co., Ltd. 15%
Zhejiang Huaxiao Technology Co., Ltd. 15%
Xinjiang Dahua Zhixin Information Technology Co., Ltd. 15%
Xinjiang Dahua Zhihe Information Technology Co., Ltd. 15%
Xinjiang Dahua Zhitian Information Technology Co., Ltd. 15%
Xinjiang Dahua Huayue Information Technology Co., Ltd. 15%
Xinjiang Dahua Xinzhi Information Technology Co., Ltd. 15%
Inner Mongolia Dahua Zhimeng Information Technology
15%
Co., Ltd.
Guangxi Dahua Zhicheng Co., Ltd. 15%
Zhejiang Huafei Intelligent Technology Co., Ltd. 15%
Guizhou Meitan Dahua Information Technology Co., Ltd. 15%
Zhejiang Dahua Ju'an Technology Co., Ltd. 20%
Yiwu Huaxi Technology Co., Ltd. 20%
Guangxi Dahua Technology Co., Ltd. 20%
Shanghai Huashang Chengyue Information Technology
20%
Service Co., Ltd.
Beijing Huayue Shangcheng Information Technology 20%
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Service Co., Ltd.
Zhejiang Dahua Storage Technology Co., Ltd. 20%
Zhejiang Huakong Software Co., Ltd. 20%
Yunnan Zhili Technology Co., Ltd 20%
Guizhou Dahua Information Technology Co., Ltd. 20%
Dahua Technology (HK) Limited 16.5%
Hangzhou Xiaohua Technology Co., Ltd. 20%
Zhejiang Dahua Intelligent IoT Operation Service Co.,
20%
Ltd.
Chengdu Zhichuang Yunshu Technology Co., Ltd. 20%
Chengdu Huishan Smart Network Technology Co., Ltd. 20%
Guizhou Huayi Shixin Technology Co., Ltd. 20%
Zhejiang Zhoushan Digital Development Operation Co.
20%
Ltd.
Tianjin Dahua Information Technology Co., Ltd. 20%
Yibin Huahui Information Technology Co., Ltd. 20%
Other domestic companies 25%
Other overseas companies Applicable to local tax rate
2. Preferential tax rate
(1) According to the Reply on the Filing of the First Batch of High-tech Enterprises in Zhejiang Province in 2020 (Guo
Ke Huo Zi [2020] No. 251) issued by the Office for the Administration of the Certification of National High-tech
Enterprises on December 29, 2020, the Company was certified as a high-tech enterprise, valid for 3 years. The
corporate income tax for this year was reduced to a rate of 15%.
(2) According to the Reply on the Filing of High-tech Enterprises in Zhejiang Province in 2019 (Guo Ke Huo Zi [2020]
No.32) issued by the Office for the Administration of the Certification of National High-tech Enterprises on January 20,
2020, our subsidiary Zhejiang Dahua System Engineering Co., Ltd. was certified as a high-tech enterprise, valid for 3
years. The corporate income tax for this year was reduced to a rate of 15%.
(3) According to the Announcement on the Filing of the First Batch of High-tech Enterprises of Zhejiang Province
Certified in 2021 issued by the Office for the Administration of the Certification of National High-tech Enterprises on
January 24, 2022, our subsidiary Zhejiang Huachuang Vision Technology Co., Ltd. was certified as a high-tech
enterprise, valid for 3 years. The corporate income tax for this year was reduced to a rate of 15%.
(4) According to the Announcement on the Filing of the First Batch of High-tech Enterprises of Zhejiang Province
Certified in 2021 issued by the Office for the Administration of the Certification of National High-tech Enterprises on
January 24, 2022, our subsidiary Zhejiang HuaRay Technology Co., Ltd. was certified as a high-tech enterprise, valid
for 3 years. The corporate income tax for this year was reduced to a rate of 15%.
(5) According to the Announcement on the Filing of the First Batch of High-tech Enterprises of Zhejiang Province
Certified in 2021 issued by the Office for the Administration of the Certification of National High-tech Enterprises on
January 24, 2022, our subsidiary Zhejiang Huaxiao Technology Co., Ltd. was certified as a high-tech enterprise, valid
for 3 years. The corporate income tax for this year was reduced to a rate of 15%.
(6) According to the Reply on the Filing of the First Batch of High-tech Enterprises in Zhejiang Province in 2020 (Guo
Ke Huo Zi [2020] No.251) issued by the Office for the Administration of the Certification of National High-tech
Enterprises on December 29, 2020, our subsidiary Zhejiang Huafei Intelligent Technology Co., Ltd. was certified as a
high-tech enterprise, valid for 3 years. The corporate income tax for this year was reduced to a rate of 15%.
(7) According to the Announcement of the State Taxation Administration on Matters Concerning the Implementation of
Preferential Income Tax Policies Supporting the Development of Small Low-Profit Enterprises and Individual Industrial
and Commercial Households (Announcement No.8/2021 of the State Taxation Administration), and the Announcement
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
of the Ministry of Finance and the State Taxation Administration on Further Implementing the Preferential Income Tax
Policies for Micro and Small Enterprises (Announcement No.13/2022 of the Ministry of Finance and the State Taxation
Administration), the annual taxable income of the following subsidiaries that is no more than RMB 1 million shall be
reduced to 12.5% for tax purpose, and the enterprise income tax shall be paid at a rate of 20%; and the taxable
income that is more than RMB 1 million but no more than RMB 3 million shall be reduced to 25% for tax purpose and
the enterprise income tax shall be paid at a rate of 20%: Zhejiang Dahua Ju'an Technology Co., Ltd., Yiwu Huaxi
Technology Co., Ltd., Guangxi Dahua Technology Co., Ltd., Shanghai Huashang Chengyue Information Technology
Service Co., Ltd., Beijing Huayue Shangcheng Information Technology Service Co., Ltd., Zhejiang Dahua Storage
Technology Co., Ltd., Zhejiang Huakong Software Co., Ltd., Yunnan Zhili Technology Co., Ltd, Guizhou Dahua
Information Technology Co., Ltd., Hangzhou Xiaohua Technology Co., Ltd., Zhejiang Dahua Intelligent IOT Operation
Service Co., Ltd., Chengdu Zhichuang Yunshu Technology Co., Ltd., Chengdu Huishan Smart Network Technology
Co., Ltd., Guizhou Huayi Shixin Technology Co., Ltd., Zhejiang Zhoushan Digital Development Operation Co. Ltd.,
Tianjin Dahua Information Technology Co., Ltd. and Yibin Huahui Information Technology Co., Ltd.
(8) According to the document CaiShui [2011] No.58 by the Ministry of Finance, the State Administration of Taxation,
and the General Administration of Customs and the Announcement [2020] No. 23 of the Ministry of Finance, the
following subsidiaries can enjoy preferential tax policies related to the Development of the West Regions Program from
2011 to 2030: Xinjiang Dahua Zhixin Information Technology Co., Ltd., Xinjiang Dahua Zhihe Information Technology
Co., Ltd., Xinjiang Dahua Zhitian Information Technology Co., Ltd., Xinjiang Dahua Huayue Information Technology
Co., Ltd., Xinjiang Dahua Xinzhi Information Technology Co., Ltd., Inner Mongolia Dahua Zhimeng Information
Technology Co., Ltd., Guangxi Dahua Zhicheng Co., Ltd. and Guizhou Meitan Dahua Information Technology Co., Ltd.
The corporate income tax for this year was reduced to a rate of 15%.
Ⅶ. Notes to the Items in the Consolidated Financial Statement
1. Cash and bank balances
Unit: RMB
Item Closing balance Opening balance
Cash on Hand 6,183.21 23,443.62
Bank Balance 6,264,460,092.36 7,326,702,072.79
Other Cash and Bank Balances 346,220,563.30 404,277,268.36
Total 6,610,686,838.87 7,731,002,784.77
Including: Total Amount
968,348,614.62 1,237,766,508.87
Deposited in Overseas Banks
The total amount
restricted for use due to mortgage, 87,638,514.43 96,491,171.83
pledge or freeze
The amount restricted for use due to mortgage, pledge or freeze:
Unit: RMB
Balance at the end of the previous
Item Closing balance
year
Bid/performance bond 81,775,643.37 78,754,709.42
Deposits for notes 13,583,198.60
Frozen funds 5,862,871.06 4,153,263.81
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Total 87,638,514.43 96,491,171.83
2. Trading Financial Assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through
1,470,000.00 2,602,173.53
profit or loss in this period
Including:
Derivative Financial Assets 1,132,173.53
Financial products 1,470,000.00 1,470,000.00
Total 1,470,000.00 2,602,173.53
3. Notes Receivable
(1) Disclosure of Notes Receivable
Unit: RMB
Item Closing balance Opening balance
Bank Acceptance Notes 559,307,159.24 565,521,840.25
Commercial Acceptance Notes 247,631,807.18 274,339,722.10
Letter of Credit 3,532,349.68
Total 810,471,316.10 839,861,562.35
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Percent value Percent value
Amount Amount proporti Amount Amount proporti
age age
on on
Notes
Receiva
ble with
the Bad
Debt
Provisio
2,998,8 2,998,8 100.00 6,550,2 6,550,2 100.00
n 0.35% 0.75%
11.52 11.52 % 08.04 08.04 %
Accrue
d
Based
on
Single
Item
Inclu
ding:
Comme
rcial
2,998,8 2,998,8 100.00 6,550,2 6,550,2 100.00
Accepta 0.35% 0.75%
11.52 11.52 % 08.04 08.04 %
nce
Notes
Notes 846,054 99.65% 35,582, 4.21% 810,471 872,390 99.25% 32,529, 3.73% 839,861
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Receiva ,014.25 698.15 ,316.10 ,616.35 054.00 ,562.35
ble with
the Bad
Debt
Provisio
n
Accrue
d
Based
on
Combin
ations
Inclu
ding:
Bank
Accepta 565,539 6,232,7 559,307 571,898 6,376,5 565,521
66.61% 1.10% 65.07% 1.11%
nce ,924.25 65.01 ,159.24 ,384.64 44.39 ,840.25
Notes
Comme
rcial
276,981 29,349, 247,631 300,492 26,152, 274,339
Accepta 32.62% 10.60% 34.18% 8.70%
,740.32 933.14 ,807.18 ,231.71 509.61 ,722.10
nce
Notes
Letter
3,532,3 3,532,3
of 0.42%
49.68 49.68
Credit
849,052 100.00 38,581, 810,471 878,940 100.00 39,079, 839,861
Total
,825.77 % 509.67 ,316.10 ,824.39 % 262.04 ,562.35
Bad debt provision based on single item 2,998,811.52
Unit: RMB
Closing balance
Name Reason for making
Book balance Bad debt provision Accrued proportion
bad debt provision
Commercial Funds expected to
2,998,811.52 2,998,811.52 100.00%
Acceptance Notes be unable to recover
Total 2,998,811.52 2,998,811.52
Bad debt provision based on combinations 35,582,698.15
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrued proportion
Bank Acceptance Notes 565,539,924.25 6,232,765.01 1.10%
Commercial Acceptance
276,981,740.32 29,349,933.14 10.60%
Notes
Letter of Credit 3,532,349.68
Total 846,054,014.25 35,582,698.15
Please refer to the disclosing methods of other receivables for the information disclosure of bad debts provisions, if the
bad debt provisions of notes receivable are made according to the general model of expected credit losses:
□ Applicable Not applicable
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(2) Provision for bad debts accrued, recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
balance Accrued Written Off Others balance
Reversed
Bank
Acceptance 6,376,544.39 143,779.38 6,232,765.01
Notes
Commercial
Acceptance 32,702,717.65 353,972.99 32,348,744.66
Notes
Total 39,079,262.04 497,752.37 38,581,509.67
Significant amount of recovered or reversed bad debt provision in this period:
□ Applicable Not applicable
(3) Notes receivable that the Company has pledged at the end of the period
Unit: RMB
Item Pledged amount by the end of period
Bank Acceptance Notes 442,343,632.01
Total 442,343,632.01
(4) Notes receivable that the Company has endorsed or discounted at the end of the period
and that have not yet expired on the balance sheet date
Unit: RMB
Derecognised amount at the end of Not derecognised amount at the end
Item
period of period
Bank Acceptance Notes 40,721,891.12
Commercial Acceptance Notes 9,960,634.00
Total 50,682,525.12
(5) Notes that are converted by the Company into accounts receivable at the end of the period
for non-performance of the drawer
Unit: RMB
Amount Converted into Accounts Receivable at the End
Item
of the Period
Commercial Acceptance Notes 29,230,888.64
Total 29,230,888.64
4. Accounts Receivable
(1) Categorical disclosure of accounts receivable
Unit: RMB
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Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Percent value Percent value
Amount Amount proporti Amount Amount proporti
age age
on on
Account
s
receiva
bles
with the
bad
debt 590,976 590,976 100.00 587,384 587,384 100.00
3.28% 3.40%
provisio ,109.56 ,109.56 % ,495.64 ,495.64 %
n
accrued
based
on
single
item
Inclu
ding:
Account
s
receiva
ble with
insignifi
cant
single
amount 590,976 590,976 100.00 587,384 587,384 100.00
3.28% 3.40%
but ,109.56 ,109.56 % ,495.64 ,495.64 %
accrued
for
separat
e
provisio
n of bad
debt
Account
s
receiva
bles
with the
bad
17,425, 2,233,4 15,191, 16,675, 2,020,7 14,654,
debt
091,106 96.72% 35,046. 12.82% 656,060 212,796 96.60% 22,153. 12.12% 490,643
provisio
.88 41 .47 .56 07 .49
n
accrued
based
on
combin
ations
Inclu
ding:
Portfoli 17,425, 2,233,4 15,191, 16,675, 2,020,7 14,654,
96.72% 12.82% 96.60% 12.12%
o 2: 091,106 35,046. 656,060 212,796 22,153. 490,643
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Aging .88 41 .47 .56 07 .49
Analysi
s
Portfoli
o
18,016, 2,824,4 15,191, 17,262, 2,608,1 14,654,
100.00 100.00
Total 067,216 11,155. 656,060 597,292 06,648. 490,643
% %
.44 97 .47 .20 71 .49
Bad debt provision based on single item: 590,976,109.56
Unit: RMB
Closing balance
Name Reason for making
Book balance Bad debt provision Accrued proportion
bad debt provision
Expected to be
Customer 1 260,153,530.00 260,153,530.00 100.00%
unable to recover
Expected to be
Customer 2 225,140,645.36 225,140,645.36 100.00%
unable to recover
Expected to be
Customer 3 51,153,304.28 51,153,304.28 100.00%
unable to recover
Expected to be
Customer 4 35,738,376.92 35,738,376.92 100.00%
unable to recover
Expected to be
Customer 5 18,790,253.00 18,790,253.00 100.00%
unable to recover
Total 590,976,109.56 590,976,109.56
Bad debt provision based on combinations: 2,233,435,046.41
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
13,403,137,649.39 670,156,882.40 5.00%
year)
1 to 2 years 1,624,807,349.09 162,480,734.91 10.00%
2 to 3 years 814,476,534.68 244,342,960.40 30.00%
3 to 4 years 710,717,008.13 355,358,504.07 50.00%
4 to 5 years 354,283,004.82 283,426,403.86 80.00%
5 years or above 517,669,560.77 517,669,560.77 100.00%
Total 17,425,091,106.88 2,233,435,046.41
Please refer to the disclosing methods of other receivables for the information disclosure of bad debts provisions, if the
bad debt provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable Not applicable
Disclosure by age
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 13,403,179,001.25
1 to 2 years 1,651,589,066.91
2 to 3 years 823,304,888.05
3 years or above 2,137,994,260.23
3 to 4 years 1,214,888,390.36
4 to 5 years 354,283,004.82
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5 years or above 568,822,865.05
Total 18,016,067,216.44
(2) Provision for bad debts accrued, recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Category Opening balance Recovered Closing balance
Accrued or Written Off Others
Reversed
Bad debt 2,824,411,155.9
2,608,106,648.71 224,421,053.62 8,629,143.68 512,597.32
provision 7
2,824,411,155.9
Total 2,608,106,648.71 224,421,053.62 8,629,143.68 512,597.32
7
(3) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Accounts receivable actually written off 8,629,143.68
(4) Accounts receivable of the top five closing balances collected by debtors
The aggregate amount of the top five accounts receivable collected by the debtor at the end of the period is RMB
1,991,344,511.89, accounting for 11.05% of the total accounts receivable at the end of the period, with the aggregate
amount of the corresponding provision for bad debts at the end of the period of RMB 443,373,238.94.
(5) Accounts receivable derecognized due to the transfer of financial assets
1) In accordance with the non-recourse purchase agreement on accounts receivables signed between the subsidiary
Dahua Hong Kong and J.P.Morgan Chase in this period, the Company transferred the accounts receivables of USD
5,329,171.51 to J.P.Morgan Chase, amount to RMB 35,766,201.67. The amount of accounts receivables was
derecognised after the transfer;
2) In accordance with the non-recourse purchase agreement on accounts receivables signed between the subsidiary
Dahua Hong Kong and Banco Santander of Spain in this period, the Company transferred the accounts receivables of
USD 11,369,786.82 to Banco Santander of Spain, amount to RMB 76,307,187.26. The amount of accounts
receivables was derecognised after the transfer；
3) In accordance with the non-recourse purchase agreement on accounts receivables signed between the subsidiary
Dahua USA and JPMorgan Chase in this period, the Company transferred the accounts receivables of USD
317,295.31 to J.P.Morgan Chase, amount to RMB 2,129,495.74. The amount of accounts receivables was
derecognised after the transfer.
4) In accordance with the non-recourse purchase agreement on accounts receivables signed between the subsidiary
Dahua Vision and Jinan Branch of China Merchants Bank Co., Ltd. in this period, the Company transferred the
accounts receivables of RMB 1,230,000.00 to Jinan Branch of China Merchants Bank Co., Ltd. The amount of
accounts receivables was derecognised after the transfer.
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(6) Assets and liabilities generated due to transferred receivables that the Company still keeps
recourse or retains part of corresponding rights or interests
Unit: RMB
The amount of assets that the The amount of liabilities that the
Company still keeps recourse or Company still keeps recourse or
Item
retains part of corresponding rights or retains part of corresponding rights
interests or interests
Supply chain finance not derecognized 18,583,668.69 18,583,668.69
Total 18,583,668.69 18,583,668.69
5. Receivables Financing
(1) Disclosure of receivables financing
Unit: RMB
Item Closing balance Opening balance
Bank Acceptance Notes 676,732,626.54 792,709,781.57
Total 676,732,626.54 792,709,781.57
The increase and decrease of accounts receivable financing in the current period and the changes in the fair value.
□ Applicable Not applicable
Please refer to the disclosing methods of other receivables for the information disclosure of depreciation provisions, if
the depreciation provisions of accounts receivable financing are made according to the general model of expected
credit losses:
□ Applicable Not applicable
(2) Receivables financing that the Company has pledged at the end of the period
Unit: RMB
Item Pledged amount by the end of period
Bank Acceptance Notes 627,793,113.50
Total 627,793,113.50
(3) Receivable financing that the Company has endorsed or discounted at the end of the
period and that have not yet expired on the balance sheet date
Unit: RMB
Derecognised amount at the end of Not derecognised amount at the end of
Item
period period
Bank Acceptance Notes 50,091,279.07
Total 50,091,279.07
6. Prepayments
(1) Aging analysis of prepayments is as follows
Unit: RMB
Aging Closing balance Opening balance
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Amount Percentage Amount Percentage
Within 1 year 197,257,853.48 89.03% 150,234,638.63 87.84%
1 to 2 years 11,962,975.58 5.40% 14,193,274.00 8.30%
2 to 3 years 8,199,711.21 3.70% 4,364,375.43 2.55%
3 years or above 4,134,262.27 1.87% 2,241,758.59 1.31%
Total 221,554,802.54 -- 171,034,046.65 --
(2) Advance payment of the top five closing balances by prepayment parties
The sum of the top five prepayments in the ending balance collected according to the concentration of prepaid objects
is RMB 95,191,976.47, accounting for 42.97% of the total ending balance of prepayments.
7. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Dividends Receivable 2,574,911.88
Other Receivables 546,458,160.98 546,477,779.16
Total 549,033,072.86 546,477,779.16
(1) Dividends Receivable
1) Classification of Dividends Receivable
Unit: RMB
Project (or Invested Unit) Closing balance Opening balance
Intelbras S.A. 2,574,911.88
Total 2,574,911.88
2) Important dividends receivable with an age of more than 1 year
No important dividends receivable with an age of more than 1 year
3) Provision for bad debts
□ Applicable Not applicable
(2) Other receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Deposits 203,507,714.07 184,675,342.15
Prepaid or advance expense 108,387,992.60 114,389,093.05
Equity Transfer Fund 228,000,000.00 228,000,000.00
Export tax rebate 941,680.81
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Employee home loan 112,133,748.00 112,565,185.64
Others 431,427.23 9,088,852.20
Total 652,460,881.90 649,660,153.85
2) Provision for bad debts
Unit: RMB
Phase One Phase Two Phase Three
Expected credit Expected credit
Bad debt provision Expected credit Total
losses for the entire losses for the entire
losses in the next 12
extension (without extension (with credit
months
credit impairment) impairment)
Balance on January
71,264,795.95 31,145,413.53 772,165.21 103,182,374.69
1, 2021
Balance in the
Current Period on
January 1, 2022
--Transfer to phase
-1,908,109.99 1,908,109.99
two
--Transfer to phase
-979.39 -24,967.93 25,947.32
three
Provisions of this
6,081,404.97 67,750.39 6,149,155.36
period
Reversals in this
3,269,423.95 3,269,423.95
period
Write off in this
104,665.00 104,665.00
period
Other variations 45,279.82 45,279.82
Balance as at June
66,131,562.44 39,109,960.56 761,197.92 106,002,720.92
30, 2022
Book balance changes with significant changes in loss provision in the current period
□ Applicable Not applicable
Disclosure by age
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 228,006,955.71
1 to 2 years 312,154,135.34
2 to 3 years 50,863,076.05
3 years or above 61,436,714.80
3 to 4 years 19,129,867.90
4 to 5 years 18,718,064.30
5 years or above 23,588,782.60
Total 652,460,881.90
3) Provision for bad debts accrued, recovered or reversed in this period
Provision for bad debts in the current period:
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Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
balance Accrued Written Off Others balance
Reversed
Bad debt 103,182,374.6 106,002,720.9
6,149,155.36 3,269,423.95 104,665.00 45,279.82
provision 9 2
103,182,374.6 106,002,720.9
Total 6,149,155.36 3,269,423.95 104,665.00 45,279.82
9 2
4) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Other accounts receivable actually written off 104,665.00
5) Other receivables of the top five closing balances collected by debtors
Unit: RMB
As a percentage
of total other Bad debt
Nature of the
Name of Unit Closing balance Aging receivables at provision at the
funds
the end of the end of the period
period
Equity Transfer
Company 1 76,000,000.00 1-2 years 11.65% 7,600,000.00
Fund
Equity Transfer
Company 2 41,800,000.00 1-2 years 6.41% 4,180,000.00
Fund
Equity Transfer
Company 3 25,650,000.00 1-2 years 3.93% 2,565,000.00
Fund
Equity Transfer
Company 4 25,080,000.00 1-2 years 3.84% 2,508,000.00
Fund
Equity Transfer
Company 5 24,320,000.00 1-2 years 3.73% 2,432,000.00
Fund
Total 192,850,000.00 29.56% 19,285,000.00
6) Accounts receivable not related to government subsidies
There are no other accounts receivable related to government subsidies.
7) Other accounts receivable derecognised due to transfer of financial assets
There are no other accounts receivable derecognized due to the transfer of financial assets.
8) Assets and liabilities generated due to other transferred receivables that the Company still
keeps recourse or retains part of corresponding rights or interests
There are no assets and liabilities generated due to other transferred receivables that the Company still keeps
recourse or retains part of corresponding rights or interests.
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8. Inventory
(1) Categories of inventories
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Impairment of Impairment of
Item Inventories or Inventories or
Book balance Provision for Book value Book balance Provision for Book value
Impairment of Impairment of
Performance Performance
Cost Cost
2,177,374,523 2,122,664,661 2,352,908,447 2,319,240,801
Raw materials 54,709,861.72 33,667,646.69
.19 .47 .73 .04
Work-in- 1,212,095,262 1,189,962,250 1,153,151,247 1,132,775,809
22,133,011.88 20,375,437.77
progress .16 .28 .13 .36
Finished 2,958,986,371 2,871,767,409 3,047,677,900 2,960,805,491
87,218,961.74 86,872,409.00
goods .21 .47 .85 .85
Outsourced
308,797,827.3 308,797,827.3 397,219,186.5 397,219,186.5
work-in-
4 4 7 7
progress
6,657,253,983 164,061,835.3 6,493,192,148 6,950,956,782 140,915,493.4 6,810,041,288
Total
.90 4 .56 .28 6 .82
(2) Provision for impairment of inventories and provision for impairment of contract
performance cost
Unit: RMB
Increased in the current
Decreased in the current period
period
Item Opening balance Closing balance
Other Reversals or
Accrued Others
s write-offs
Raw materials 33,667,646.69 26,530,537.61 5,486,800.34 1,522.24 54,709,861.72
Work-in-
20,375,437.77 10,050,957.71 8,283,892.65 9,490.95 22,133,011.88
progress
Finished
86,872,409.00 35,835,005.80 37,150,351.44 -1,661,898.38 87,218,961.74
goods
Total 140,915,493.46 72,416,501.12 50,921,044.43 -1,650,885.19 164,061,835.34
9. Contract Assets
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Completed
101,450,982.5 100,489,071.0
but unsettled 92,494,133.28 847,648.97 91,646,484.31 961,911.45
1 6
assets
O&M service 27,580,732.99 275,807.33 27,304,925.66 6,135,599.16 61,355.99 6,074,243.17
132
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Quality
guarantee 85,666,874.78 15,380,910.89 70,285,963.89 69,575,083.69 12,706,297.55 56,868,786.14
deposit
189,237,373.8 177,161,665.3 163,432,100.3
Total 205,741,741.05 16,504,367.19 13,729,564.99
6 6 7
Please refer to the disclosing methods of other receivables for the information disclosure of impairment provisions, if
the impairment provisions of contract assets are made according to the general model of expected credit losses:
□ Applicable Not applicable
Provision for impairment accrued for contract assets in this period:
Unit: RMB
Provisions of this Reversals in this Write-off in this
Item Causes
period period period
Completed but
114,262.48
unsettled assets
O&M service 214,451.34
Quality guarantee
2,674,613.34
deposit
Total 2,889,064.68 114,262.48 ——
10. Non-current Assets Due within 1 Year
Unit: RMB
Item Closing balance Opening balance
Long-term accounts receivables due
522,097,288.55 602,567,293.78
within 1 year
Total 522,097,288.55 602,567,293.78
Other notes:
The amount of long-term receivables due within 1 year pledged by the Company at the end of the period is RMB
29,656,721.39. See "Ⅶ. Notes to the Items in the Consolidated Financial Statement/62 Assets with Restricted
Ownership Rights or Rights to Use" for details.
11. Other Current Assets
Unit: RMB
Item Closing balance Opening balance
Return cost receivable 7,080,471.51 24,964,365.85
Not deducted input tax 529,292,310.41 595,811,123.81
Prepaid enterprise income tax 44,391,302.86 40,343,125.22
National debt reverse repurchase 525,000,000.00
Issue expenses 5,721,033.05 4,467,259.46
Total 586,485,117.83 1,190,585,874.34
133
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
12. Long-term Receivables
(1) Long-term receivables
Unit: RMB
Closing balance Opening balance Range of
Item Book Bad debt Book Bad debt discount
Book value Book value rate
balance provision balance provision
Installment
Payment for 1,718,647,6 1,718,647,6 1,891,368,1 1,891,368,1
Selling 29.21 29.21 21.39 21.39
Products
Includin
g:
248,587,96 248,587,96 291,382,98 291,382,98 3.69%-
Unrealized
1.02 1.02 2.77 2.77 10.93%
Financing
Income
1,718,647,6 1,718,647,6 1,891,368,1 1,891,368,1
Total --
29.21 29.21 21.39 21.39
Book balance changes with significant changes in loss provision in the current period
□ Applicable Not applicable
(2) Long-term receivables derecognised due to transfer of financial assets
There are no long-term receivables derecognised due to transfer of financial assets.
(3) Assets/liabilities generated due to transferred long-term receivables that the Company still
keeps recourse or retains part of corresponding rights or interests
There are no assets/liabilities generated due to transferred long-term receivables that the Company still keeps recourse
or retains part of corresponding rights or interests.
Other notes
The amount of long-term receivables pledged by the Company at the end of the period is RMB 150,962,494.77. See
"XIV. Commitments and Contingencies/1. Significant commitments" for details.
13. Long-term equity investments
Unit: RMB
Decrease/Increase in the current period
Closin
Invest g
Openin Adjust Cash Closin
ment balanc
g ment dividen Provisi g
The profit e of
balanc Invest Invest on Other ds or on for balanc
investe and provisi
e ments ment other chang profit impair e
d entity loss Others on for
(book increas decrea compr es in declar ment (book
recogn decline
value) ed sed ehensi equity ed to accrue value)
ized in
ve distribu d
under value
income te
the
134
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
equity
metho
d
Ⅰ. Joint ventures
Ⅱ. Affiliates
444,97 26,718 - 460,18
Intelbr 9,609,
0,435. ,153.4 1,895, 2,864.
as S.A. 974.28
10 5 750.09 18
Ruicity
Digital
70,394 - 66,726
Techno
,509.1 3,667, ,776.9
logy
5 732.18 7
Co.,
Ltd.
Zhejia
ng
Leapm -
643,07 10,945 444,78
otor 209,23
6,870. ,027.9 6,489.
Techno 5,408.
51 7 69
logy 79
Co.,
Ltd.
Shuzi
Dongy
ang
Techno -
2,205, 1,869,
logy 336,19
415.98 225.03
Operat 0.95
ion
Co.,
Ltd.
Hangz
hou
Juhua
nyan
Inform 723,49 723,49
ation 6.39 6.39
Techno
logy
Co.,
Ltd.
Shaoxi
ng
Dahua
Securit 500,23 4,144. 504,37
y 1.45 30 5.75
Servic
es Co.,
Ltd.
Guang
dong
Zhishi
-
Digital 200,10
200,10
Techno 6.21
6.21
logy
Co.,
Ltd.
135
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Zhejia
ng
Huanu
15,113 - 11,632
okang
,578.1 3,480, ,620.8
Techno
0 957.27 3
logy
Co.,
Ltd.
Ningbo
Huaya
n
Chuan
gxi
Ventur
e
Capital 62,135 - 62,017
Invest ,559.9 117,67 ,884.0
ment 3 5.90 3
Partne
rship
(Limite
d
Partne
rship)
(Note)
Dezho
u
Shuzhi
Inform
3,392, 9,456. 3,402,
ation
656.30 54 112.84
Techno
logy
Co.,
Ltd.
Sichua
n
Hengji
Anhua
Interne
1,360, 1,194. 1,361,
t of
000.00 46 194.46
Things
Techno
logy
Co.,
Ltd.
Guang
xi FTZ
Huaqin
Wisdo
m Park
Techno 500,00 500,12
120.91
logy 0.00 0.91
Resear
ch
Institut
e Co.,
Ltd.
Ningbo 1,665, - 1,519,
136
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Cida 000.00 145,69 300.29
Yongs 9.71
hun
Intellig
ent
Techno
logy
Co.,
Ltd.
-
1,243, 10,945 - 1,055,
Subtot 2,165, 190,45 9,609,
872,75 ,027.9 1,695, 226,46
al 000.00 0,701. 974.28
2.91 7 643.88 1.37
35
-
1,243, 10,945 - 1,055,
2,165, 190,45 9,609,
Total 872,75 ,027.9 1,695, 226,46
000.00 0,701. 974.28
2.91 7 643.88 1.37
35
Note: In April 2022, "Zhoushan Huayan Chuangxi Equity Investment Partnership (Limited
Partnership)" was renamed as "Ningbo Huayan Chuangxi Venture Capital Investment
Partnership (Limited Partnership)".
14. Other Non-current Financial Assets
Unit: RMB
Item Closing balance Opening balance
Investment in equity instruments 525,215,662.07 349,744,582.17
Investment in financial products 585,770,457.65 595,875,383.80
Total 1,110,986,119.72 945,619,965.97
15. Investment Properties
(1) Investment properties measured by cost method
Applicable □ Not applicable
Unit: RMB
Buildings and Projects under
Item Land use rights Total
constructions Construction
Ⅰ. Original book
value
1. Opening
382,153,185.05 9,091,828.00 391,245,013.05
Balance
2. Increased in
3,364,456.15 239,486.98 3,603,943.13
the Current Period
(1) Purchase
(2) Transfer of
fixed
3,364,456.15 239,486.98 3,603,943.13
assets\intangible
assets
(3) Acquisition
137
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
3. Decreased in
6,530,809.49 723,514.86 7,254,324.35
the Current Period
(1) Disposal
(2) Other
Transfer-out
(3) Transfer to
fixed
6,530,809.49 723,514.86 7,254,324.35
assets\intangible
assets
4. Closing
378,986,831.71 8,607,800.12 387,594,631.83
Balance
Ⅱ. Accumulated
Depreciation and
Amortization
1. Opening
78,431,596.38 1,748,393.24 80,179,989.62
Balance
2. Increased in
9,593,355.33 119,326.53 9,712,681.86
the Current Period
(1) Accrual or
9,031,895.16 88,577.02 9,120,472.18
Amortization
(2) Transfer of
fixed
561,460.17 30,749.51 592,209.68
assets\intangible
assets
3. Decreased in
1,998,222.42 139,247.17 2,137,469.59
the Current Period
(1) Disposal
(2) Other
Transfer-out
(3) Transfer to
fixed
1,998,222.42 139,247.17 2,137,469.59
assets\intangible
assets
4. Closing
86,026,729.29 1,728,472.60 87,755,201.89
Balance
Ⅲ. Impairment
Provision
1. Opening
Balance
2. Increased in
the Current Period
(1) Accrual
3. Decreased in
the Current Period
(1) Disposal
(2) Other
Transfer-out
4. Closing
Balance
Ⅳ. Book value
138
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
1. Closing
Balance on Book 292,960,102.42 6,879,327.52 299,839,429.94
Value
2. Opening
Balance on Book 303,721,588.67 7,343,434.76 311,065,023.43
Value
(2) Investment properties measured at fair value
□ Applicable Not applicable
16. Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Fixed Assets 2,531,115,302.13 2,187,435,714.17
Total 2,531,115,302.13 2,187,435,714.17
(1) Fixed assets
Unit: RMB
Housing and Machinery and Means of Electronic and
Item Total
building equipment transport other equipment
Ⅰ. Original book
value:
1. Opening 1,641,755,474.5 1,376,902,529.8 3,480,933,708.1
416,430,728.04 45,844,975.80
Balance 1 4 9
2. Increased
in the Current 395,443,778.65 16,104,135.53 3,660,560.98 121,203,064.87 536,411,540.03
Period
(1)
460,127.78 16,104,135.53 3,660,560.98 120,940,679.55 141,165,503.84
Purchase
(2)
Transferred
From 388,452,841.38 262,385.32 388,715,226.70
Construction in
Progress
(3)
Acquisition
(4)
Transfer of
6,530,809.49 6,530,809.49
investment
properties
3.
Decreased in the 4,188,633.53 515,261.72 3,832,504.91 13,431,837.67 21,968,237.83
Current Period
(1)
Disposal or 824,177.38 515,261.72 3,832,504.91 13,431,837.67 18,603,781.68
Scrapping
(2)
3,364,456.15 3,364,456.15
Transfer to
139
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
investment real
estate
4. Currency
Translation -83,886.10 -51,550.98 -43,657.60 1,638,920.05 1,459,825.37
Difference
5. Closing 2,032,926,733.5 1,486,312,677.0 3,996,836,835.7
431,968,050.87 45,629,374.27
Balance 3 9 6
II. Accumulated
depreciation
1. Opening 1,293,497,994.0
336,592,432.99 126,212,868.67 28,737,613.16 801,955,079.20
Balance 2
2. Increased
in the Current 42,173,316.19 18,733,539.45 3,449,879.15 123,743,851.81 188,100,586.60
Period
(1)
40,175,093.77 18,733,539.45 3,449,879.15 123,743,851.81 186,102,364.18
Accrual
(2)
Transfer of
1,998,222.42 1,998,222.42
investment
properties
3.
Decreased in the 937,269.87 313,330.61 3,640,149.85 11,623,810.91 16,514,561.24
Current Period
(1)
Disposal or 375,809.70 313,330.61 3,640,149.85 11,623,810.91 15,953,101.07
Scrapping
(2)
Transfer to
561,460.17 561,460.17
investment real
estate
4. Currency
Translation -16,357.80 -46,743.35 25,834.71 674,780.69 637,514.25
Difference
5. Closing 1,465,721,533.6
377,812,121.51 144,586,334.16 28,573,177.17 914,749,900.79
Balance 3
Ⅲ. Impairment
Provision
1. Opening
Balance
2. Increased
in the Current
Period
(1)
Accrual
3.
Decreased in the
Current Period
(1)
Disposal or
Scrapping
4. Closing
Balance
140
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Ⅳ. Book value
1. Closing
Balance on Book 1,655,114,612.02 287,381,716.71 17,056,197.10 571,562,776.30 2,531,115,302.13
Value
2. Opening
1,305,163,041.5 2,187,435,714.1
Balance on Book 290,217,859.37 17,107,362.64 574,947,450.64
2 7
Value
(2) Temporarily Idle Fixed Assets
N/A
(3) Fixed Assets Leased by Operating Lease
N/A
(4) Fixed Assets with Certificates of Title Not Granted
Unit: RMB
Reasons for certificates of title not
Item Book value
granted
The phase II construction project of the smart 764,137,134.50 In the process of obtaining the real
manufacturing base in Hangzhou estate certificates
(5) Disposal of fixed assets
N/A
17. Construction in Progress
Unit: RMB
Item Closing balance Opening balance
Projects under Construction 2,149,024,114.06 1,992,834,055.03
Total 2,149,024,114.06 1,992,834,055.03
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Item Impairme Impairme
Book balance nt Book value Book balance nt Book value
provision provision
Phase I,
Urban
Intelligent
Information 34,479,679.26 34,479,679.26 34,489,372.65 34,489,372.65
Industry
Construction
Project
The phase II 2,044,618.09 2,044,618.09 287,731,881.74 287,731,881.74
141
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
construction
project of the
smart
manufacturing
base in
Hangzhou
Construction
Project of 566,084,904.2
566,084,904.25 461,248,638.28 461,248,638.28
Xi'an R & D 5
Center
The
construction
262,403,942.8
project of the 262,403,942.86 221,631,343.28 221,631,343.28
6
marketing
center in Xi'an
Project of
Smart IoT
Solution R & 1,034,075,780.
1,034,075,780.35 880,987,482.81 880,987,482.81
D and 35
Industrializatio
n
New project of
Southwest
R&D Center 56,092,649.40 56,092,649.40 26,334,500.78 26,334,500.78
of Dahua Co.,
Ltd.
New projects
of
Southwestern
China 65,194,665.74 65,194,665.74 29,054,744.55 29,054,744.55
Operation
Center of
Dahua
128,647,874.1
Others 128,647,874.11 51,356,090.94 51,356,090.94
1
2,149,024,114. 1,992,834,055.0 1,992,834,055.0
Total 2,149,024,114.06
06 3 3
(2) Changes in significant construction in progress
Unit: RMB
Projec
Includi
t
ng: Capita
Other accu Accu
capital lizatio
amou mulati mulat
Increa Transf ized n rate
nts ve ed
Openi sed in er Closin Projec intere of the Capita
decre invest capital
Item Budge ng the amou g t st intere l
ased ment ized
Name t balan curren nts in balan Progr amou st in Sourc
in as a intere
ce t this ce ess nt in the e
curren perce st
period period the curren
t ntage amou
curren t
period of the nt
t period
budge
period
t
Projec 911,9 880,9 153,0 1,034, 113.3 In Equity
t of 64,40 87,48 88,29 075,7 9% constr Fund
142
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Smart 0.00 2.81 7.54 80.35 uction
IoT
Soluti
on R
&D
and
Indust
rializat
ion
The
phase
II
constr
uction
projec
t of 95.81
827,0 287,7 60,80 346,4 2,044, In
the % Equity
63,70 31,88 9,881. 97,14 618.0 constr
smart (Note Fund
0.00 1.74 19 4.84 9 uction
manuf 1)
acturi
ng
base
in
Hangz
hou
Const
ructio
n
Projec 733,6 461,2 104,8 566,0 In
77.16 Equity
t of 21,40 48,63 36,26 84,90 constr
% Fund
Xi'an 0.00 8.28 5.97 4.25 uction
R&D
Cente
r
The
constr
uction
projec
t of 300,0 221,6 40,77 262,4 In
87.47 Equity
the 00,00 31,34 2,599. 03,94 constr
% Fund
marke 0.00 3.28 58 2.86 uction
ting
center
in
Xi'an
Phase
I,
Urban
Intellig
ent
Inform 39,33 34,48 34,47 In
9,693. 87.66 Equity
ation 3,858. 9,372. 9,679. constr
39 % Fund
Indust 52 65 26 uction
ry
Const
ructio
n
Projec
143
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
t
New
projec
t of
South
west 417,3 26,33 29,75 56,09 In
13.44 Equity
R&D 27,70 4,500. 8,148. 2,649. constr
% Fund
Cente 0.00 78 62 40 uction
r of
Dahu
a Co.,
Ltd.
New
projec
ts of
South
weste
rn 396,4 29,05 36,13 65,19 In
16.45 Equity
China 26,84 4,744. 9,921. 4,665. constr
% Fund
Opera 7.00 55 19 74 uction
tion
Cente
r of
Dahu
a
3,625, 1,941, 425,4 346,4 2,020,
9,693.
Total 737,9 477,9 05,11 97,14 376,2
39
05.52 64.09 4.09 4.84 39.95
Note 1: Fixed assets, amounting to RMB 443,849,828.33, were invested to the project in 2021.
18. Right-of-use Assets
Unit: RMB
Item Buildings and constructions Machinery and equipment Total
Ⅰ. Original book value
1. Opening Balance 334,918,568.44 8,884,640.73 343,803,209.17
2. Increased in the
96,749,183.80 96,749,183.80
Current Period
3. Decreased in the
10,597,054.59 10,597,054.59
Current Period
4. Currency
1,531,441.73 1,531,441.73
Translation Difference
5. Closing Balance 422,602,139.38 8,884,640.73 431,486,780.11
II. Accumulated
depreciation
1. Opening Balance 95,077,759.85 148,077.35 95,225,837.20
2. Increased in the
63,410,582.93 444,232.04 63,854,814.97
Current Period
(1) Accrual 63,410,582.93 444,232.04 63,854,814.97
3. Decreased in the
7,393,765.61 7,393,765.61
Current Period
(1) Disposal 7,393,765.61 7,393,765.61
144
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
4. Currency
790,451.48 790,451.48
Translation Difference
5. Closing Balance 151,885,028.65 592,309.39 152,477,338.04
Ⅲ. Impairment Provision
1. Opening Balance
2. Increased in the
Current Period
(1) Accrual
3. Decreased in the
Current Period
(1) Disposal
4. Closing Balance
Ⅳ. Book value
1. Closing Balance on
270,717,110.73 8,292,331.34 279,009,442.07
Book Value
2. Opening Balance on
239,840,808.59 8,736,563.38 248,577,371.97
Book Value
19. Intangible Assets
(1) Intangible assets
Unit: RMB
Non-
Land use Trademark Software
Item Patent right patented Softwares Total
rights rights copyright
technology
Ⅰ. Original
book value
1.
576,821,57 73,060,508. 161,464,15 2,046,545.6 4,000,000.0 817,392,78
Opening
3.87 70 2.94 0 0 1.11
Balance
2.
Increased in 21,749,162. 22,472,677.
723,514.86
the Current 61 47
Period
(1) 14,135,471. 14,135,471.
Purchase 91 91
(2) Internal
research and
development
(3)
Acquisition
(4)
Transfer of 7,613,690.7 7,613,690.7
construction 0 0
in progress
(5)
Transfer of
723,514.86 723,514.86
investment
properties
145
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
3.
Decreased
4,530,000.0 5,092,591.7
in the 239,486.98 323,104.73
0 1
Current
Period
(1)
323,104.73 323,104.73
Disposal
(2)
Transfer to
239,486.98 239,486.98
investment
real estate
(3)
4,530,000.0 4,530,000.0
Disposal of
0 0
subsidiaries
4.
Currency 1,508,103.3 1,487,395.9
-10,565.00 -10,142.40
Translation 3 3
Difference
5.
577,295,03 68,530,508. 184,398,31 2,036,403.2 4,000,000.0 836,260,26
Closing
6.75 70 4.15 0 0 2.80
Balance
Ⅱ.
Accumulated
amortization
1.
41,806,205 53,434,775. 131,975,51 2,046,545.6 4,000,000.0 233,263,03
Opening
.34 25 3.49 0 0 9.68
Balance
2.
Increased in 6,638,940. 2,431,271.0 16,683,069. 25,753,281.
the Current 81 2 38 21
Period
6,499,693. 2,431,271.0 16,683,069. 25,614,034.
(1) Accrual
64 2 38 04
(2)
Transfer of
139,247.17 139,247.17
investment
properties
3.
Decreased
4,530,000.0 4,883,854.2
in the 30,749.51 323,104.72
0 3
Current
Period
(1)
323,104.72 323,104.72
Disposal
(2)
Transfer to
30,749.51 30,749.51
investment
real estate
(3)
4,530,000.0 4,530,000.0
Disposal of
0 0
subsidiaries
4.
Currency 1,126,312.5 1,116,170.1
-10,142.40
Translation 3 3
Difference
146
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
5.
48,414,396 51,336,046. 149,461,79 2,036,403.2 4,000,000.0 255,248,63
Closing
.64 27 0.68 0 0 6.79
Balance
Ⅲ.
Impairment
Provision
1.
Opening
Balance
2.
Increased in
the Current
Period
(1) Accrual
3.
Decreased
in the
Current
Period
(1)
Disposal
4.
Closing
Balance
Ⅳ. Book
value
1.
Closing 528,880,64 17,194,462. 34,936,523. 581,011,626
Balance on 0.11 43 47 .01
Book Value
2.
Opening 535,015,36 19,625,733. 29,488,639. 584,129,74
Balance on 8.53 45 45 1.43
Book Value
(2) Land Use Rights with Certificates of Title Not Granted
No land use right without the certificate of title at the end of the period.
20. Goodwill
(1) Original book value of goodwill
Unit: RMB
Decreased in the
The invested Increased in the current period
current period
entity or matters Opening
Generated from Closing balance
which formed balance
goodwill business Disposal
combination
Dahua
6,615,294.18 6,615,294.18
Technology Italy
147
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
S.R.L.
Lorex Technology
36,070,196.12 36,070,196.12
Inc.
Total 42,685,490.30 42,685,490.30
(2) Impairment provision for goodwill
Information about the asset group or asset group combination where the goodwill is located
Unit: RMB
The invested entity or
Amount of Information about the asset group or asset group combination
matters which formed
goodwill where it is located
goodwill
The asset group relating to the goodwill generated for the
Dahua Technology Italy acquisition of the Dahua Technology Italy S.R.L., that is, the long-
6,615,294.18
S.R.L. term asset group, including fixed assets and intangible assets,
formed for Dahua Technology Italy S.R.L. on June 30, 2022.
The asset group relating to the goodwill generated for the
acquisition of Lorex Technology Inc., that is, the long-term asset
Lorex Technology Inc. 36,070,196.12
group, including fixed assets and intangible assets, formed for
Lorex Technology Inc. on June 30, 2022.
Explain the goodwill impairment test process, key parameters (e.g. growth rate at forecast period, growth rate at
steady period, profit rate, discount rate, forecast period, etc. when the present value of future cash flow is estimated)
and the confirmation method of goodwill impairment loss:
The recoverable amount is determined mainly according to the present value of the expected future cash flow of the
relevant asset group. Its future cash flow is determined based on the 5-year financial budget approved by
management from 2022 to 2026, with a discount rate of 15% to 18%. Cash flows over 5 years are calculated on the
basis of zero growth rate. The growth rate is determined based on the growth forecast of the relevant industry and
does not exceed the long-term average growth rate of the industry. Future cash flow estimates are based on
management’s estimated sales amount, cost of sales, and operating expenses during the forecast period based on
past performance and expectations of market development.
Result of goodwill impairment test
The Company assessed the recoverable amount of goodwill. The recoverable amount of the asset group of Dahua
Technology Italy S.R.L. and Lorex Technology Inc. was higher than the book value. There was no sign of impairment
of the goodwill of the asset group.
21. Long-term Deferred Expenses
Unit: RMB
Prepaid
Increased in the Other Amounts
Item Opening balance Expenses in This Closing balance
current period Decreased
Period
Improvement
expenditure of
fixed assets 45,876,764.73 15,556,171.13 13,315,596.89 88,927.99 48,028,410.98
leased by
operating lease
Total 45,876,764.73 15,556,171.13 13,315,596.89 88,927.99 48,028,410.98
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
22. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Non-offset deferred income tax assets
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred Income Tax Deductible temporary Deferred Income Tax
difference Assets difference Assets
Provision for
2,777,530,566.31 557,247,939.74 2,552,444,179.21 521,830,114.13
Impairment of Assets
Unrealized Profit
from Internal 1,077,309,426.70 225,578,765.09 921,491,510.12 185,000,859.88
Transactions
Deductible Losses 777,589,438.47 142,831,495.95 539,801,646.05 94,981,532.35
Expected Liabilities 233,209,022.84 35,254,887.21 235,881,836.61 35,883,364.90
Payroll payable 262,302,983.67 42,989,341.51 259,988,223.28 42,643,270.84
Costs from Tax
Increase Due to 267,822,004.77 58,587,755.57 326,697,479.46 70,722,772.85
Absence of Invoice
Changes in fair value
1,021,963.72 255,490.93
gains and losses
Others 112,950,117.86 21,176,680.78 49,539,884.10 9,057,423.94
Total 5,508,713,560.62 1,083,666,865.85 4,886,866,722.55 960,374,829.82
(2) Non-offset deferred income tax liabilities
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Deferred Income Tax Taxable temporary Deferred Income Tax
difference Liabilities difference Liabilities
The gross profit of
83,742,555.88 14,786,063.11 105,723,742.64 18,998,931.10
sales by installments
Changes in fair value
of financial 446,198,146.53 66,929,721.98 284,526,701.97 42,779,573.34
instruments
Total 529,940,702.41 81,715,785.09 390,250,444.61 61,778,504.44
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Offset
Unit: RMB
Amount of Deferred Balance of Deferred Amount of Deferred Balance of Deferred
Income Tax Assets Income Tax Assets or Income Tax Assets Income Tax Assets or
Item Offset against Liabilities after Offset Offset against Liabilities after Offset
Liabilities at the End at the End of the Liabilities at the Start at the Start of the
of the Period Period of the Period Period
Deferred Income Tax
1,083,666,865.85 960,374,829.82
Assets
Deferred Income Tax
81,715,785.09 61,778,504.44
Liabilities
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(4) Deferred income tax assets or liabilities listed by net amount after offset
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 406,101,941.09 414,539,114.69
Deductible Losses 876,641,114.83 770,269,801.97
Total 1,282,743,055.92 1,184,808,916.66
(5) Details of unrecognized deferred income tax assets
Unit: RMB
Year Closing balance Opening balance
2022 7,979,990.79 13,558,094.01
2023 3,954,079.90 31,967,123.71
2024 64,108,195.90 129,611,292.94
2025 200,331,285.03 261,674,362.25
2026 207,026,568.91 333,458,929.06
2027 and beyond 393,240,994.3
Total 876,641,114.83 770,269,801.97
23. Other Non-current Assets
Unit: RMB
Closing balance Opening balance
Item Impairme Impairme
Book balance nt Book value Book balance nt Book value
provision provision
Contract Assets 28,578,316.91 28,578,316.91 35,741,476.55 35,741,476.55
Prepayments for
purchase of
94,300,369.10 94,300,369.10 61,485,385.44 61,485,385.44
engineering
equipments
Others 198,810.00 198,810.00
Total 123,077,496.01 123,077,496.01 97,226,861.99 97,226,861.99
24. Short-term Loans
(1) Categories of short-term loan
Unit: RMB
Item Closing balance Opening balance
Pledged loans 330,000,000.00
Guaranteed loans 200,000.00
Fiduciary loans 275,130,000.00 294,230,000.00
Discount of notes not matured 28,544,302.69 29,964,651.09
Interest payable for short-term loan 822,830.97 1,453,579.89
Total 634,697,133.66 325,648,230.98
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Note for short-term loans:
After discounting of the acceptance bill issued between affiliated companies within the scope of consolidation, the
pledge loan is reported as a short-term loan at the consolidated statement level.
(2) Unpaid short-term loans that have been overdue
At the end of the current period, there are no unpaid short-term loans that have been overdue.
25. Trading financial liabilities
Unit: RMB
Item Closing balance Opening balance
Transactional financial liabilities 22,938,892.17
Including:
Derivative Financial Liabilities 22,938,892.17
Total 22,938,892.17
26. Notes payable
Unit: RMB
Types Closing balance Opening balance
Commercial acceptance bill 2,279,245,259.07 2,689,373,228.96
Bank acceptance bill 1,473,629,461.90 1,783,625,736.07
Total 3,752,874,720.97 4,472,998,965.03
27. Accounts payable
(1) Details of accounts payable
Unit: RMB
Item Closing balance Opening balance
Payment for purchase of materials 5,426,330,551.18 6,755,965,348.15
Payment for engineering equipments 546,390,785.02 573,775,302.56
Total 5,972,721,336.20 7,329,740,650.71
(2) Important accounts payable aged over 1 year
There are no important accounts payable aged over 1 year.
28. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Payments for sales of goods 284,683,231.41 301,188,575.89
Pre-payments from construction 381,671,727.32 390,506,325.54
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
projects
Sales of points 88,554,504.03 45,733,110.88
Service expense collected in
177,397,890.92 127,561,981.47
advance
Total 932,307,353.68 864,989,993.78
29. Payroll payable
(1) Details of payroll payable
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
Ⅰ. Short-term
1,961,520,228.87 2,723,700,541.39 3,989,184,192.75 696,036,577.51
remuneration
Ⅱ. Dimission
benefits - defined 2,982,937.26 166,279,453.37 166,778,647.81 2,483,742.82
contribution scheme
Ⅲ. Dismissal welfare 10,925,340.06 10,925,340.06
Total 1,964,503,166.13 2,900,905,334.82 4,166,888,180.62 698,520,320.33
(2) Details of short-term remuneration
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
1. Wages or salaries,
bonuses, allowances 1,658,561,542.60 2,346,271,094.22 3,629,761,788.39 375,070,848.43
and subsidies
2. Staff welfare 55,528,791.27 55,528,791.27
3. Social insurance
1,263,720.55 98,862,906.42 99,496,564.17 630,062.80
contributions
Including: medical
insurance premium
1,149,608.71 95,254,919.25 95,914,540.60 489,987.36
and maternity
insurance premium
Work injury
114,111.84 3,607,987.17 3,582,023.57 140,075.44
insurance premium
4. Housing funds 55,304.46 180,396,789.78 180,397,768.06 54,326.18
5. Labor union and
301,639,661.26 42,640,959.70 23,999,280.86 320,281,340.10
education funds
Total 1,961,520,228.87 2,723,700,541.39 3,989,184,192.75 696,036,577.51
(3) Details of defined contribution plans
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
1. Basic pension 2,825,955.34 159,456,191.87 159,909,051.88 2,373,095.33
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
insurance
2. Unemployment
156,981.92 6,823,261.50 6,869,595.93 110,647.49
insurance
Total 2,982,937.26 166,279,453.37 166,778,647.81 2,483,742.82
30. Taxes and fees payable
Unit: RMB
Item Closing balance Opening balance
VAT 171,663,849.14 228,793,071.57
Enterprise Income Tax 267,640,543.53 340,653,457.58
Individual income tax 17,938,550.95 22,921,726.41
Urban Maintenance and Construction
10,198,241.91 42,050,328.33
Tax
Education surcharges (including local
7,259,473.08 30,028,462.18
education surcharges)
Others 6,641,827.58 12,629,547.94
Total 481,342,486.19 677,076,594.01
31. Other payables
Unit: RMB
Item Closing balance Opening balance
Dividends Payable 16,060,762.89
Other Payables 964,959,710.58 661,691,938.58
Total 964,959,710.58 677,752,701.47
(1) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Equity Incentive Restricted Stock
16,060,762.89
Dividend
Total 16,060,762.89
(2) Other payables
1) Details of other payables by nature of the payment
Unit: RMB
Item Closing balance Opening balance
Deposits 141,884,997.15 139,819,795.34
Temporarily borrowed and advance
188,404,952.16 222,989,981.74
payments
Restricted share repurchase
609,859,632.00 277,169,524.09
obligations
Others 24,810,129.27 21,712,637.41
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Total 964,959,710.58 661,691,938.58
2) Significant other payables aged over 1 year
There are no significant other payables aged over 1 year.
32. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Long-term debt due within one year 1,826,950,000.00 775,500,000.00
Lease liabilities due within 1 year 109,430,319.66 93,008,992.50
Interest payable due within 1 year 2,201,150.32 2,339,749.97
Other loans due within 1 year 55,000,000.00 20,000,000.00
Total 1,993,581,469.98 890,848,742.47
33. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
To-be-transferred sales taxes in
51,890,526.80 60,826,417.44
installments
To-be-transferred sales taxes of
64,673,831.48 62,496,325.49
contract liabilities
Notes not derecognised 40,721,891.12 85,308,638.52
Total 157,286,249.40 208,631,381.45
34. Long-term loans
(1) Classification of long-term loans
Unit: RMB
Item Closing balance Opening balance
Pledged loans 77,500,000.00 102,500,000.00
Fiduciary loans 1,427,550,000.00 1,450,000,000.00
Total 1,505,050,000.00 1,552,500,000.00
35. Lease liabilities
Unit: RMB
Item Closing balance Opening balance
Lease Liabilities 155,193,192.52 140,606,139.33
Total 155,193,192.52 140,606,139.33
36. Accrued liabilities
Unit: RMB
154
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Item Closing balance Opening balance Causes
Pending litigation 1,775,746.00 Pending litigation
Others 223,811.37 23,705.16 Loss-making contract
Expected after-sales
255,834,992.07 256,486,842.50 After-sales maintenance
maintenance cost
Expected return amount
11,221,137.71 39,565,492.96 Expected sales return
after the period
Total 267,279,941.15 297,851,786.62 --
37. Deferred income
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance Causes
current period current period
Received
Government government
103,218,676.13 7,617,500.00 2,781,282.25 108,054,893.88
subsidies subsidies related
to assets
Total 103,218,676.13 7,617,500.00 2,781,282.25 108,054,893.88 --
Projects related to government subsidies:
Unit: RMB
The Amount
The Amount The
amount of recorded as Related to
Recorded as Amount Other
Opening new non- Closing assets/rel
Liabilities Other Written off variat
balance subsidies operating balance ated to
Income in Costs in ions
in this revenue in income
This Period This Period
period this period
Special
awards for
Fuyang
Dahua
49,175,66 47,589,35 Related to
Intelligenc 1,586,311.74
2.96 1.22 assets
e (IoT)
Industrial
Park
Project
Phase I
investmen
t financial
incentive
fund for
security 52,475,43 51,789,06 Related to
686,374.98
video 7.53 2.55 assets
surveillanc
e product
production
base
project
Funding of
Hangzhou
1,567,575. 7,617,500. 8,676,480. Related to
for 508,595.53
64 00 11 assets
manufactu
ring
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
enterprise
technologi
cal
transform
ation
103,218,6 7,617,500. 108,054,8
Total 2,781,282.25
76.13 00 93.88
Other notes:
1. According to the FuJingGuan [2017] No.35 document and the FuCaiQi [2017] No.506 document issued by
Economic Development Zone Management Committee and the Finance Bureau of Fuyang District, Hangzhou, the
subsidiary Zhejiang Dahua Zhilian Co., Ltd. received the special subsidies for the Fuyang Dahua Intelligent (IoT)
Industrial Park in 2015 and 2017, respectively, RMB 31,660,000 each time, totaling RMB 63,320,000. As the
government grant related to assets, it is recognized as deferred income and will be recognized as other income in
installments based on the estimated service life of the asset (20 years).
2. According to the FuJingGuan [2019] No.18 and [2020] No. 39 documents and the FuCaiQi [2019] No.286 document
issued by Fuyang Economic Development Zone Management Committee and the Finance Bureau of Fuyang District,
Hangzhou, in 2019 and 2020, the subsidiary Zhejiang Dahua Zhilian Co., Ltd. received financial incentive funds of
RMB 27,455,000 and RMB 26,050,000, respectively, for the phase I investment of the production base of security
video surveillance products, which was recognized as deferred income as a government subsidy related to assets, and
recognized as other income in installments based on the estimated service life of the asset (20 years).
3. According to the FuJingXinCai [2019] No.49 document and the FuCaiQi [2019] No.804 document issued by
Economic and Information Bureau of Fuyang District, Hangzhou and the Finance Bureau of Fuyang District, Hangzhou,
in 2019, the subsidiary Zhejiang Dahua Zhilian Co., Ltd. received a total of RMB 9,197,700 in 2019 from the first batch
of funds for technical renovation projects of municipal manufacturing enterprises as government subsidies related to
assets, which were recognized as deferred income, and recognized as other income in installments based on the
estimated service life of the assets (15–111 months). According to the HangCaiQi [2022] No.35 document issued by
the Finance Bureau of Hangzhou City and the Economic and Information Bureau of Hangzhou City, the subsidiary
Zhejiang Dahua Zhilian Co., Ltd. received a total of RMB 7,617,500 in 2022 from the funds for technical renovation
projects of municipal manufacturing enterprises as government subsidies related to assets, which were recognized as
deferred income, and recognized as other income in installments based on the estimated service life of the assets (9–
115 months).
38. Other non-current liabilities
Unit: RMB
Item Closing balance Opening balance
To-be-transferred sales taxes in
203,269,595.53 227,381,981.28
installments
Other loans 55,000,000.00 90,000,000.00
Total 258,269,595.53 317,381,981.28
Other notes:
The Company and CDB Development Fund reached a cooperation intention to increase the capital of the Company's
subsidiary, Zhejiang Dahua Zhilian Co., Ltd. The Capital Increase Agreement stipulates that CDB Development Fund
will not send senior management personnel such as directors and supervisors to Dahua Zhilian; the Company shall
pay an annual investment profit of 1.2% to CDB Development Fund through dividends and repurchase premium. The
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Company shall redeem the equity of CDB Development Fund in Dahua Zhilian on a phase-by-phase basis from 2022
to 2024, of which RMB 55,000,000.00 is recognized as other non-current liabilities, and non-current liabilities that are
due within one year at RMB 55,000,000.00.
39. Share capital
Unit: RMB
Increased or decreased amount in this period (+/-)
Opening Shares Closing
balance Shares newly Bonus converted balance
Others Subtotal
issued shares from capital
reserves
-
2,994,550,7 38,610,440. 3,033,161,1
Total shares 74,737,700.00 36,127,260.
30.00 00 70.00
00
Other notes:
(1) According to the decision of the 30th Session of the 7th Board of Directors of the Company held on April 22, 2022
and the amended Articles of Association and the decision of the 2021 Annual Shareholders' General Meeting of the
Company, the Company repurchased and canceled 36,127,260 Restricted RMB Common Stocks (A Shares) that had
been granted but not been released to 2,889 targets, reduced the registered capital by RMB 36,127,260.00, and the
registered capital after the change was reduced to RMB 2,958,423,470.00. The above capital reduction has been
verified through Xin Kuai Shi Bao Zi [2022] No. ZF10892 Verification Report issued by BDO China Shu Lun Pan
Certified Public Accountants LLP (special general partnership). The change of industrial and commercial registrations
for the above decrease of capital was completed in August 11, 2022.
(2) According to the resolutions of the Company's 2021 Annual General Meeting of Shareholders and the resolutions
of the 27th and 32th sessions of the 7th Board of Directors, the restricted stocks were subscribed by 4,249 restricted
stock incentive targets, with the registered capital increased by RMB 74,737,700.00, and up to RMB 3,033,161,170.00.
The above capital contribution has been verified through Xin Kuai Shi Bao Zi [2022] No.ZF10895 Verification Report
issued by BDO China Shu Lun Pan CPAs (special general partnership). The industrial and commercial change
registration of the above capital increase matters is still in process.
40. Capital reserve
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
Capital premium
(capital share 1,573,230,760.64 535,146,586.79 264,290,970.52 1,844,086,376.91
premium)
Other capital
1,366,281,475.11 40,494,841.32 7,300,969.49 1,399,475,346.94
reserves
Total 2,939,512,235.75 575,641,428.11 271,591,940.01 3,243,561,723.85
Other notes, including increases or decreases in this period and their reasons:
(1) The amount of employee service that the Company received in exchange by equity payments in this period was
RMB 29,549,813.35. Other capital reserve was increased by RMB 29,549,813.35.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(2) In the equity-settled share-based payment in current period, minority shareholders enjoy a portion of RMB
7,300,969.49, which reduces other capital reserves by RMB 7,300,969.49.
(3) In this period, the Company repurchased and canceled 36,127,260 shares of the granted but unlocked restricted
shares, reducing the share capital by RMB 36,127,260.00, and reducing the capital reserves (share premium) by RMB
257,103,026.98.
(4) According to the resolution of 2021 Annual Shareholders' General Meeting and the decisions of the 27th and 32nd
sessions of the 7th Board of Directors of the Company, in the end, 74,737,700 restricted stocks were subscribed by
4,249 restricted stock incentive targets. The actual subscription amount paid by the restricted stock incentive targets
was RMB 609,859,632.00, which was recorded in the capital reserve (share premium) as RMB
535,121,932.00.
(5) The capital reserve (share premium) was reduced in total by RMB 7,187,943.54 in this period due to the acquisition
and disposal of minority interests of the subsidiaries.
(6) The impact of changes in other owners' equity of the joint venter that the Company should enjoy under the current
equity method increased other capital reserves by RMB 10,945,027.97.
(7) Due to the change in shareholding ratio in subsidiaries, the capital reserve (share premium) was adjusted and
increased by RMB 24,654.79.
41. Treasury share
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
Restricted shares 277,169,524.09 609,859,632.00 277,169,524.09 609,859,632.00
Total 277,169,524.09 609,859,632.00 277,169,524.09 609,859,632.00
Other notes, including increases or decreases in this period and their reasons:
(1) 74,737,700 restricted shares were granted by the Company to the employees, with a grant price of RMB 8.16 per
share. The actual subscription amount paid by the restricted stock incentive targets was RMB 609,859,632.00. The
amount of full recognition of liabilities and treasury shares in respect of repurchase was RMB 609,859,632.00.
(2) In this period, the Company repurchased 36,127,260 shares of the granted but unlocked restricted shares,
reducing the share capital by RMB 36,127,260.00, reducing the capital reserves (share premium) by RMB
257,103,026.98, and reducing the corresponding treasury stock amount by RMB 277,169,524.09 at the same time.
42. Other comprehensive income
Unit: RMB
Amount Occurred in the Current Period
Less: Less:
recorded Recorded
into other into other
Attributabl
comprehe comprehe
Opening Less: Attributabl e to the Closing
Item Before tax nsive nsive
balance Income e to the minority balance
balance in incomes incomes
Tax Company sharehold
this period in in
Expense after tax ers after
previous previous
tax
period and period and
transferre transferre
d to P/L in d to
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
current retained
period income in
current
period
I. Other
comprehe
nsive
income - -
76,005,79 - 72,451,58
that will be 3,570,948. 3,554,206.
2.49 16,742.42 6.31
reclassifie 60 18
d into
profit and
loss
Curre
ncy - -
76,005,79 - 72,451,58
conversio 3,570,948. 3,554,206.
2.49 16,742.42 6.31
n 60 18
difference
Other
comprehe - -
76,005,79 - 72,451,58
nsive 3,570,948. 3,554,206.
2.49 16,742.42 6.31
incomes 60 18
in total
43. Surplus reserves
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
Statutory surplus
1,553,691,005.92 1,553,691,005.92
reserve
Total 1,553,691,005.92 1,553,691,005.92
44. Undistributed profits
Unit: RMB
Item Current Period Previous Period
Undistributed Profit before
Adjustment at the End of Previous 16,331,012,273.48 13,754,915,904.19
Period
Undistributed Profit after Adjustment
16,331,012,273.48 13,754,915,904.19
at the Start of the Period
Add: net profit attributable to parent
1,519,848,967.71 1,643,175,887.55
company's owner in current period
Less: Payable Dividends on
798,774,336.90 802,815,330.12
Common Stocks
Add: Common stock dividends
corresponding to repurchase and 16,060,762.89 500,809.81
cancellation of restricted stocks
Undistributed Profit at the End of the
17,068,147,667.18 14,595,777,271.43
Period
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
45. Operating income and operating cost
(1). Operating revenue and operating cost
Unit: RMB
Amount Occurred in the Current Period Amount Occurred in the Previous Period
Item
Income Cost Income Cost
Main Business 13,898,516,963.09 8,658,952,304.51 13,306,440,228.58 7,773,003,019.77
Other businesses 188,568,877.88 143,624,316.81 198,565,505.31 137,711,909.20
Total 14,087,085,840.97 8,802,576,621.32 13,505,005,733.89 7,910,714,928.97
(2). Information related to operating revenue and operating cost (by product)
Unit: RMB
Amount Occurred in the Current Period
Item
Income Cost
Smart IoT Products and Solutions 11,798,309,265.54 7,061,613,890.17
Including: Software Business 602,291,989.74 186,825,686.58
Innovated Businesses 1,685,969,891.14 1,210,244,442.96
Others 602,806,684.29 530,718,288.19
Total 14,087,085,840.97 8,802,576,621.32
(3). Information related to operating revenue and operating cost (by region)
Unit: RMB
Amount Occurred in the Current Period
Item
Income Cost
Domestic 7,295,809,974.26 4,876,785,986.28
Overseas 6,791,275,866.71 3,925,790,635.04
Total 14,087,085,840.97 8,802,576,621.32
Information about performance of obligations:
The Company fulfills its performance obligations in a timely manner as agreed in the contract and recognizes the
related income when the customer obtains control of the relevant goods, which is mainly divided into fulfilling the
performance obligations at a certain point in time and fulfilling the performance obligations within a certain period of
time.
The Company recognizes income from the sales of goods when control of the goods passes, i.e., when the goods are
delivered to the counterparty's designated location, or to the counterparty's designated carrier, or when they are
delivered to the counterparty for acceptance.
The Company identifies part of the business as a performance obligation to be fulfilled within a certain period of time
according to the nature of the business. The Company shall recognize the income according to the performance
progress within that period of time, except where the performance progress cannot be reasonably recognized. The
Company employs the output method or input method to determine the performance progress. If the performance
progress cannot be reasonably recognized and the costs incurred are expected to be compensated, the income shall
be recognized according to the amount of costs incurred until the performance progress can be reasonably recognized.
160
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
46. Taxes and surcharges
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Urban Maintenance and Construction
36,718,256.75 44,660,286.58
Tax
Education Surcharges 26,234,984.65 31,900,534.13
House property tax 9,387,845.32 2,351,433.37
Land usage tax 805,237.56 656,297.10
Vehicle and vessel use tax 24,479.92 23,707.54
Stamp duty 5,578,393.44 5,084,326.28
Others 725,000.93 15,593,603.53
Total 79,474,198.57 100,270,188.53
47. Sales expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 1,187,269,669.35 1,044,869,188.90
After-sales service expense 148,829,148.87 151,149,337.68
Transportation and vehicle expenses 16,465,074.97 228,486,216.43
Marketing expense 176,978,073.06 158,441,695.91
Taxation and insurance expense 100,350,665.31 114,258,333.64
Administrative expenses 80,022,542.82 77,325,742.64
Business entertainment 92,619,608.96 92,867,175.49
Traveling expense 91,766,855.31 85,796,783.51
Communication expense 11,111,515.46 7,644,337.28
Knowledge resource fee 30,432,774.68 25,449,407.98
Depreciation cost and asset
74,651,967.38 55,213,618.90
amortization
Others 29,230,400.07 17,499,873.06
Total 2,039,728,296.24 2,059,001,711.42
48. Administrative expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 280,594,841.45 272,130,616.85
Depreciation cost and asset
53,213,335.22 41,179,216.36
amortization
Administrative expenses 34,129,796.48 32,286,309.59
Knowledge resource fee 28,298,266.89 20,467,417.96
Consumables and service fees 576,527.78 4,673,608.79
Business entertainment 3,672,417.72 3,377,855.85
Transportation and vehicle expenses 1,911,522.48 3,149,317.93
Traveling expense 1,620,658.73 3,425,734.01
Others 12,788,831.83 12,582,093.72
Total 416,806,198.58 393,272,171.06
161
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
49. R&D expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 1,393,586,316.61 1,238,777,601.85
Research consumables and service
75,363,485.69 84,653,952.01
fees
Depreciation cost and asset
44,639,295.55 40,480,759.70
amortization
Traveling expense 19,466,826.45 22,875,356.11
Administrative expenses 16,726,601.70 13,009,916.31
Communication expense 6,055,324.87 4,368,448.13
Others 7,641,420.30 2,083,292.70
Total 1,563,479,271.17 1,406,249,326.81
50. Financial expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Interest expense 66,900,870.38 44,547,319.17
Less: interest income 99,279,785.76 114,759,041.30
Exchange gains and losses -261,735,730.67 131,529,465.80
Others 19,513,521.44 16,358,297.48
Total -274,601,124.61 77,676,041.15
51. Other incomes
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Sources of other incomes
Period Period
Refund of VAT overpaid 337,755,704.95 355,601,489.70
Special subsidies 162,114,024.30 70,558,018.03
VAT deduction 598,038.77 359,764.33
Total 500,467,768.02 426,519,272.06
52. Investment income
Unit: RMB
Amount Occurred in the Amount Occurred in the Previous
Item
Current Period Period
Long-term equity investment income
-190,450,701.35 -155,395,120.84
measured by equity method
Investment income from disposal of long-
1,408,167.28 281,454.95
term equity investment
Investment income of transactional
124,950.00
financial assets during holding period
Investment Income from Disposal Trading
15,170,140.75 22,063,805.80
Financial Assets
162
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Gain on debt restructuring -411,312.80
Investment income on other non-current
6,666,341.48 5,364,955.30
financial assets during the holding period
Investment income from national debt
515,701.75 169,645.79
reverse repurchase
Profits from recognition termination of
-815,399.65
financial assets
Total -167,792,112.54 -127,515,259.00
53. Income from changes in fair value
Unit: RMB
Source of the income from changes in fair Amount Occurred in the Amount Occurred in the Previous
value Current Period Period
Trading Financial Assets -1,132,045.17 7,123,015.25
Including: gains from changes at fair
-1,132,045.17 7,123,015.25
value of derivative financial instruments
Transactional financial liabilities -22,938,892.17 -450,380.67
Other Non-current Financial Assets 162,677,125.00 117,273,994.45
Total 138,606,187.66 123,946,629.03
54. Credit impairment loss
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Bad debt losses of other receivables -2,879,731.41 -5,949,441.91
Bad debt losses of accounts receivable -224,421,053.62 -353,620,673.67
Bad debt losses of notes receivable 497,752.37 -10,066,743.30
Bad debt losses on receivables financing 1,175,263.93
Total -226,803,032.66 -368,461,594.95
55. Asset impairment losses
Unit: RMB
Amount Occurred in the Amount Occurred in the Previous
Item
Current Period Period
I. Loss from depreciation of inventories and
-66,144,237.60 -7,627,470.90
impairment of performance cost
II. Loss from impairment of contract assets -2,774,802.20 -2,295,977.15
Total -68,919,039.80 -9,923,448.05
56. Asset disposal income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Sources of the asset disposal income
Period Period
Income from disposal of fixed assets 793,237.32 33,113,440.14
Income from the disposal of right-of- 128,322.86 -110,999.13
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
use assets
Total 921,560.18 33,002,441.01
57. Non-operating income
Unit: RMB
Amount recorded into non-
Amount Occurred in the Amount Occurred in the
Item recurring profit and loss in
Current Period Previous Period
current period
Government subsidies 100,000.00 171,808.80 100,000.00
Gains and losses of non-
884,340.57 679,706.38 884,340.57
current asset retirement
Others 3,191,841.61 5,688,387.37 3,191,841.61
Total 4,176,182.18 6,539,902.55 4,176,182.18
Government subsidies recorded into current period P/L:
Unit: RMB
Subsidies
This Previous
Influence Related to
Special period's period's
Subsidy Distributin Distributin Types of Profit and assets/rel
Subsidy amount of amount of
items g Entity g Reason Nature Loss in the ated to
or not occurrenc occurrenc
Current Year income
e e
or not
Subsidies
are
received
for
undertakin
g state
Retention functions
allowance to protect
for Other certain
overseas overseas public 111,808.8 Related to
Subsidy Yes No
employee governme utilities, 0 income
s during nts secure
the socially
pandemic necessary
products'
supply, or
perform
price
control
function
2020 Subsidies
China received
(Xiaoguwe due to
i) "Internet Guangdon engageme
+ g Traffic nt in
Communi E- specific Related to
Reward Yes No 60,000.00
cations payment industries income
and Associatio and trades
Transport n encourage
ation" d and
Innovation supported
and by the
164
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Entrepren State
eurship (obtained
Competiti by
on national
policies
and
regulation
s)
Subsidies
received
due to
engageme
nt in
specific
2021 industries
Economic
"Straight and trades
and
Through encourage
Informatio
Wuzhen" d and 100,000.0 Related to
n Bureau Reward Yes No
Global supported 0 income
of
Internet by the
Tongxiang
Competiti State
City
on (obtained
by
national
policies
and
regulation
s)
58. Non-operating expenditures
Unit: RMB
Amount recorded into non-
Amount Occurred in the Amount Occurred in the
Item recurring profit and loss in
Current Period Previous Period
current period
Donations 847,470.37 115,939.69 847,470.37
Gains and losses of non-
925,642.44 1,337,107.72 925,642.44
current asset retirement
Including: Loss from
925,642.44 1,337,107.72 925,642.44
disposal of fixed assets
Water conservancy fund 46,580.72 12,816.79
Others 1,733,559.93 3,503,104.12 1,733,559.93
Total 3,553,253.46 4,968,968.32 3,506,672.74
59. Income tax expense
(1) Income tax expense statement
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Current income tax expense 194,680,405.47 10,662,968.22
Deferred income tax expense -101,231,654.73 -49,114,153.99
165
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Total 93,448,750.74 -38,451,185.77
(2) Adjustment process of accounting profit and income tax expenses
Unit: RMB
Item Amount Occurred in the Current Period
Total Profit 1,636,726,639.28
Income tax expense calculated at statutory/applicable tax
245,508,995.89
rate
Impact by applying different tax rates to subsidiaries 48,876,015.77
Impact of income tax before adjustment in this period -86,682,804.29
Impact of the non-deductible costs, expenses and losses 10,853,513.51
Impact of additional deduction of the research and
-187,997,503.74
development expenses
Others 62,890,533.60
Income tax expense 93,448,750.74
60. Items of Cash Flow Statement
(1) Other cash receipts relating to operating activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Interest Income 53,924,373.58 31,424,004.92
Government subsidies 505,524,702.76 62,592,472.14
Deposits 44,240,031.49 25,458,692.40
Others 39,666,743.34 29,558,616.53
Total 643,355,851.17 149,033,785.99
(2) Other cash payments relating to operating activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Administrative expenses 165,216,105.08 148,852,318.30
Communication expense 23,139,986.23 19,886,351.20
Business entertainment 99,624,245.68 101,210,043.24
Traveling expense 118,844,892.10 118,402,918.50
Marketing expense 126,985,353.96 118,471,634.44
Transportation and vehicle expenses 20,220,184.20 204,194,430.33
Knowledge resource fee 57,145,019.67 43,764,104.24
Research and development
consumption and external inspection 27,754,640.95 14,958,712.93
fee
Taxation and insurance expense 39,617,759.32 8,896,959.13
Tender and performance guarantee
62,584,702.74 58,034,090.23
deposit
Incomings and outgoings and
76,954,970.33 81,594,660.65
advanced payments
166
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Consumables and service fees 127,531,222.41 149,595,572.15
Others 8,620,551.49 12,937,463.59
Total 954,239,634.16 1,080,799,258.93
(3) Other cash receipts relating to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Cash received from financial
17,359,422.11 26,678,510.94
derivatives investments
Advance received from equity
29,325,000.00
transfer
Total 17,359,422.11 56,003,510.94
(4) Other cash payments related to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Cash payment from financial
2,189,282.90 13,107,855.82
derivatives investments
Total 2,189,282.90 13,107,855.82
(5) Other cash receipts related to financing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Restricted fund recovery 453,263.81
Total 453,263.81
(6) Other cash payments related to financing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Cash paid for repayment of lease
69,487,198.65 49,649,564.91
liabilities
Restricted share repurchase 284,463,142.68
Payment for acquisition of minority
77,940,000.00
shares
Listing fees paid 1,329,000.00
Total 433,219,341.33 49,649,564.91
61. Supplementary Information on Cash Flow Statement
(1) Supplementary information on cash flow statement
Unit: RMB
167
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Supplementary information Amount of this period Amount of Previous Period
1． Reconciliation of net profit to
cash flows from operational activities:
Net Profit 1,543,277,888.54 1,675,411,526.05
Add: provision for impairment of
295,722,072.46 378,385,043.00
assets
Depreciation of fixed assets,
oil and gas assets, productive 195,134,259.34 146,286,454.93
biological assets
Depreciation of Right-of-use
63,854,814.97 42,053,689.80
Assets
Amortization of Intangible
25,702,611.06 22,637,749.57
Assets
Amortization of long-term
13,315,596.89 12,635,838.44
deferred expenses
Losses on disposal of fixed
assets, intangible assets and other
-921,560.18 -33,002,441.01
long-term assets (mark "-" for
incomes)
Losses on scrapping of fixed
41,301.87 657,401.34
assets (mark "-" for incomes)
Losses on fair value changes
-138,606,187.66 -123,946,629.03
(mark "-" for incomes)
Financial expenses (mark "-"
-194,834,860.29 52,271,024.16
for incomes)
Losses on investment (mark "-
166,976,712.89 127,515,259.00
" for incomes)
Decrease on deferred income
-123,292,036.03 -108,136,559.40
tax assets (mark "-" for increases)
Increase on deferred income
19,937,280.65 7,052,656.84
tax liabilities (mark "-" for decreases)
Decrease on inventories (mark
293,702,798.38 -2,369,120,273.38
"-" for increases)
Decrease on operational
-344,730,035.51 -230,579,623.21
receivables (mark "-" for increases)
Increase on operational
-3,572,625,117.49 -552,073,423.01
payables (mark "-" for decreases)
Others 29,549,813.35 80,843,507.92
Net cash flow generated by
-1,727,794,646.76 -871,108,797.99
operating activities
2． Major investing and financing
activities not involving cash receipts
and payment:
Conversion of Debt into Capital
Convertible corporate bond within
1 Year
Fixed Assets under Finance Lease
3． Net changes in cash and cash
equivalents:
168
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Closing balance of cash 6,510,524,358.34 6,549,708,897.81
Less: opening balance of cash 7,617,576,852.32 7,358,452,769.53
Add: closing balance of cash
equivalents
Less: opening balance of cash
equivalents
Net additions to balance of
-1,107,052,493.98 -808,743,871.72
equivalents
(2) Net cash receipts from disposal of subsidiaries in this period
Unit: RMB
Amount
Cash or cash equivalents used for disposal of
1,080,000.00
subsidiaries which was received in this period
Including:
Sichuan Dahua Guangxun Photoelectric Technology Co.,
1,080,000.00
Ltd.
Less: Cash and cash equivalents held by subsidiary on
1,937.97
date when the control is lost
Including:
Sichuan Dahua Guangxun Photoelectric Technology Co.,
1,937.97
Ltd.
Net cash arising from disposal of subsidiaries 1,078,062.03
(3) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
Ⅰ. Cash 6,510,524,358.34 7,617,576,852.32
Including: cash on hand 6,183.21 23,443.62
Bank deposit for payment at
6,246,073,255.20 7,305,614,048.36
any time
Other cash and bank balances
264,444,919.93 311,939,360.34
for payment at any time
Ⅲ. Closing balance of cash and cash
6,510,524,358.34 7,617,576,852.32
equivalents
62. Assets with Restricted Ownership Rights or Rights to Use
Unit: RMB
Item Book value at the end of the period Cause of restrictions
Guarantee letter security deposit and
Cash and Bank Balances 87,638,514.43
other restricted funds
Pledge used to issue bank
Notes receivable and receivables
1,120,819,270.63 acceptance bills and endorsed or
financing
discounted notes not derecognized
Supply chain finance not
Accounts receivable 18,583,668.69
derecognized
169
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Long-term Receivables 150,962,494.77 Pledge for bank borrowings
Non-current Assets Due within 1 Year 29,656,721.39 Pledge for bank borrowings
Total 1,407,660,669.91
63. Monetary Items in Foreign Currencies
(1) Monetary items in foreign currencies
Unit: RMB
Closing balance in foreign Exchange rate for Closing Balance Converted
Item
currencies conversion into RMB
Cash and Bank Balances
Including: USD 93,078,173.95 6.7114 624,684,856.65
EUR 24,921,111.65 7.0084 174,657,118.88
HKD 11,701,433.56 0.8552 10,006,948.97
INR 570,075,113.27 0.0850 48,464,147.38
PLN 28,177,099.24 1.5016 42,309,862.67
AUD 8,232,857.11 4.6145 37,990,519.13
Total amount of other
242,302,257.53
currencies
Accounts receivable
Including: USD 562,677,706.00 6.7114 3,776,355,156.07
EUR 81,720,420.47 7.0084 572,729,394.82
HKD 536,860.04 0.8552 459,117.34
INR 3,165,100,540.05 0.0850 269,076,645.32
AED 70,175,156.25 1.8274 128,239,384.98
AUD 27,553,935.34 4.6145 127,147,634.63
Total amount of other
472,969,561.18
currencies
Long-term loan
Including: USD
EUR
HKD
Accounts Payable
Including: USD 160,293,160.47 6.7114 1,075,791,517.17
INR 2,824,057,312.18 0.0850 240,083,326.94
MXN 19,847,654.01 0.3332 6,614,120.90
HKD 5,708,820.65 0.8552 4,882,126.33
EUR 336,060.17 7.0084 2,355,244.10
BRL 793,601.59 1.2950 1,027,693.88
Total amount of other
4,337,451.39
currencies
(2) Notes on overseas business entities, including that for the important overseas business
entities, the overseas main premises, functional currency and selection basis shall be
disclosed. If there are changes on its functional currency, the causes for the changes shall be
disclosed as well.
Applicable □ Not applicable
170
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Since the overseas business entity of the Company, Dahua Technology (HK) Limited, does not have autonomy over
its business activities, which are the extension of the business activities of the Company, constituting the business
activities of the Company, RMB shall be used as its functional currency.
64. Government Subsidies
(1) Basic information on government subsidies
Unit: RMB
Amount taken to current
Types Amount Items reported
P&L
VAT refund 337,755,704.95 Other Incomes 337,755,704.95
Financial subsidy for
science and technology 91,457,000.00 Other Incomes 91,457,000.00
R&D plan projects
Leading policy R&D
23,802,300.00 Other Incomes 23,802,300.00
funding
Core Electronics, High-End
General-Purpose Chips
12,293,400.00 Other Incomes 12,293,400.00
and Basic Software
Products special fund
Tax refund 7,289,797.28 Other Incomes 7,289,797.28
Subsidies for stable
6,571,825.59 Other Incomes 6,571,825.59
positions
Patent subsidies 4,047,700.00 Other Incomes 4,047,700.00
Subsidy funding for R&D
expenses of high-tech 2,575,000.00 Other Incomes 2,575,000.00
businesses
Subsidy funding for
2,000,000.00 Other Incomes 2,000,000.00
Phoenix Action Plan
Post-doctoral research
1,750,000.00 Other Incomes 1,750,000.00
funding
Special awards for Fuyang
Deferred income/other
Dahua Intelligence (IoT) 1,586,311.74 1,586,311.74
incomes
Industrial Park
Special financial award
1,413,058.00 Other Incomes 1,413,058.00
funds
Intellectual property
1,232,800.00 Other Incomes 1,232,800.00
incentive funds
Reward for Manufacturing
1,080,000.00 Other Incomes 1,080,000.00
Enterprises
High-tech enterprise
1,000,000.00 Other Incomes 1,000,000.00
subsidies
National Industrial Design
1,000,000.00 Other Incomes 1,000,000.00
Center Project
Phase I investment
financial incentive fund for
Deferred income/other
security video surveillance 686,374.98 686,374.98
incomes
product production base
project
VAT deduction 598,038.77 Other Incomes 598,038.77
Funding of Hangzhou for
manufacturing enterprise Deferred income/other
508,595.53 508,595.53
technological incomes
transformation
171
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Special funds for foreign
trade and economic 132,700.00 Other Incomes 132,700.00
development
2021 "Straight Through
Wuzhen" Global Internet 100,000.00 Non-operating Revenue 100,000.00
Competition
Rent subsidy 79,700.00 Other Incomes 79,700.00
Government subsidies
62,828.64 Other Incomes 62,828.64
during the pandemic
Subsidies for enterprise
11,401.54 Other Incomes 11,401.54
practical training
Others 1,533,231.00 Other Incomes 1,533,231.00
(2) Return of government subsidies
□ Applicable Not applicable
VIII. Changes in the Scope of Consolidation
1. No business consolidation under non-common control during this period
2. No business consolidation under common control during this period
3. No counter purchase for the current period
4. Disposal of subsidiaries
Is there any situation where disposal of investment in subsidiaries in a single transaction causes loss of control
Yes □ No
Unit: RMB
At the The The
level deter amou
of minati nt of
consol on other
idated metho compr
financi Gains d and ehens
Perce Book Fair
Basis al or main ive
ntage value value
for state losses assu incom
of of of
deter ment from mptio es
Time- remai remai remai
Name Metho minin corres re- ns of relate
Equity Equity point ning ning ning
of ds of g the pondi meas the d to
dispos dispos of loss equity equity equity
Subsi equity time- ng to ureme fair the
al al of on the on the on the
diarie dispos point the nt of value equity
price ratio contro date date date
s al of loss dispos remai of invest
l of loss of loss of loss
of al ning remai ment
of of of
contro price equity ning of the
contro contro contro
l and at fair equity origin
l l l
the value on the al
dispos date subsid
al of of loss iary
invest of transf
ment, contro erred
the l into
172
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differe invest
nce in ment
the profits
net and
asset losses
share
of the
subsid
iary
shall
be
gaine
d
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Equity
an
Transf
Dahu
er
a
Agree Equity
Guan
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gxun 1,080, Equity April 1,267,
90.00 and 10.00 276,4 417,2 140,8 er
Photo 000.0 transf 1, 350.5 0.00
% compl % 30.46 47.19 16.73 agree
electri 0 er 2022 5
eted ment
c
the price
Techn
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Co.,
proper
Ltd.
ty
rights
Is there any situation where disposal of investment in subsidiaries is achieved through multiple transactions in various
stages, causing loss of control in this period
□ Yes No
5. Changes in the scope of consolidation for other reasons
Explanations on the changes in the scope of consolidation caused by other reasons (for example, newly established
subsidiaries, subsidiaries clearing, etc.) and relevant information:
The Company invested to establish 7 domestic subsidiaries including Zhejiang Pixfra Technology Co., Ltd., Yiwu
Huaxi Technology Co., Ltd., Zhejiang Dahua Intelligent IOT Operation Service Co., Ltd., Nanyang Dahua Intelligent
Information Technology Co., Ltd., Yibin Huahui Information Technology Co., Ltd., Chengdu Huazhiwei Technology Co.,
Ltd., Xi'an IMOU Zhilian Technology Co., Ltd. and 4 overseas subsidiaries including Dahua Technology Middle East
for Maintenance Single Person Company, Dahua Technology Bangladesh Private Limited, IMOU NETWORK
TECHNOLOGY AUSTRALIA PTY LTD, and CNG TY TNHH CNG NGH IMOU NETWORK VIT NAM. The above
subsidiaries have been incorporated in the scope of consolidation since the date of establishment.
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IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of enterprise group
Name of Main Place of Registered Business Shareholding Percentage Acquisition
Subsidiaries Business Address Nature Direct Indirect Method
Dahua Binjiang Binjiang Electronics
System District, District, and 100.00% Establishment
Engineering Hangzhou Hangzhou information
Binjiang Binjiang Electronics
Dahua Vision
District, District, and 100.00% Establishment
Technology
Hangzhou Hangzhou information
Dahua Binjiang Binjiang Electronics
Security District, District, and 100.00% Establishment
Network Hangzhou Hangzhou information
Binjiang Binjiang Electronics
Dahua Ju'an District, District, and 51.00% Establishment
Hangzhou Hangzhou information
Guangxi Electronics
Youjiang Youjiang
Dahua and 100.00% Establishment
District, Baise District, Baise
Information information
Qingxiu Qingxiu
Guangxi
District, District, Service 100.00% Establishment
Security
Nanning Nanning
Binjiang Binjiang Electronics
Hangzhou
District, District, and 45.00% Note (1) Establishment
Xiaohua
Hangzhou Hangzhou information
Fuyang Fuyang Electronics
Dahua Zhilian District, District, and 90.09% Note (2) Establishment
Hangzhou Hangzhou information
Dahua Fuyang Fuyang Investment &
investment District, District, investment 75.00% Establishment
management Hangzhou Hangzhou management
Electronics
Guangxi Youjiang Youjiang
and 65.00% Establishment
Zhicheng District, Baise District, Baise
information
Binjiang Binjiang Electronics
Hangzhou
District, District, and 51.00% Establishment
Huacheng
Hangzhou Hangzhou information
Electronics
Xinjiang Shihezi, Shihezi,
and 92.00% Establishment
Information Xinjiang Xinjiang
information
Sci-tech
popularization
Binjiang Binjiang
HuaRay and
District, District, 45.90% Note (3) Establishment
Technology application
Hangzhou Hangzhou
services
industry
Fuyang Fuyang Electronics
Fuyang
District, District, and 51.00% Establishment
Hua'ao
Hangzhou Hangzhou information
Huafei Binjiang Binjiang Electronics
45.50% Note (4) Establishment
Intelligent District, District, and
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Hangzhou Hangzhou information
Binjiang Binjiang Electronics
Huachuang
District, District, and 51.00% Establishment
Vision
Hangzhou Hangzhou information
Guanshanhu Guanshanhu Electronics
Guizhou
District, District, and 100.00% Establishment
Huayi
Guiyang Guiyang information
Qira County, Qira County, Electronics
Xinjiang Zhihe Hotan, Hotan, and 97.00% Establishment
Xinjiang Xinjiang information
Electronics
Guangxi Wuzhou, Wuzhou,
and 90.00% Establishment
Huacheng Guangxi Guangxi
information
Electronics
Meitan Dahua Zunyi, Zunyi,
and 100.00% Establishment
Technology Guizhou Guizhou
information
New District, New District,
Inner Bai County, Bai County, Electronics
Mongolia Chahar Right Chahar Right and 95.00% Establishment
Zhimeng Wing Back Wing Back information
Banner Banner
Hetian Hetian
Electronics
Xinjiang County, County,
and 97.00% Establishment
Zhitian Hetian, Hetian,
information
Xinjiang Xinjiang
Shache Shache
County, County, Electronics
Xinjiang
Kashgar Kashgar and 100.00% Establishment
Xinzhi
District, District, information
Xinjiang Xinjiang
Electronics
Xinjiang Kashgar, Kashgar,
and 100.00% Establishment
Huayue Xinjiang Xinjiang
information
Electronics
Tianjin Binhai Tianjin Binhai
Tianjin Dahua and 65.00% Establishment
New Area New Area
information
Shuangpai Shuangpai Electronics
Dahua
County, County, and 90.00% Establishment
Zhilong
Yongzhou City Yongzhou City information
Fuyang Fuyang
District, District, Electronics
Vision
Hangzhou Hangzhou and 100.00% Establishment
Technology
City, Zhejiang City, Zhejiang information
Province Province
Fuyang Fuyang
District, District, Electronics
Huaxiao
Hangzhou Hangzhou and 51.00% Establishment
Technology
City, Zhejiang City, Zhejiang information
Province Province
Xi'an City, Xi'an City, Electronics
Xi'an Dahua Shaanxi Shaanxi and 100.00% Establishment
Province Province information
Electronics
Wuxi Ruipin Wuxi City Wuxi City and 51.00% Establishment
information
Beijing Xicheng Xicheng Electronics
100.00% Establishment
Huayue District, District, and
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Beijing Beijing information
Electronics
Shanghai Putuo District, Putuo District,
and 100.00% Establishment
Huashang Shanghai Shanghai
information
Wucheng Wucheng
District, District, Electronics
Dahua Jinzhi Jinhua City, Jinhua City, and 100.00% Establishment
Zhejiang Zhejiang information
Province Province
Zhoushan Zhoushan Electronics
Zhoushan
City, Zhejiang City, Zhejiang and 58.80% Establishment
Operation
Province Province information
Lijiang City, Lijiang City, Electronics
Yunnan Zhili Yunnan Yunnan and 90.00% Establishment
Province Province information
Liuzhou City, Liuzhou City,
Guangxi Guangxi Guangxi Electronics
Dahua Zhuang Zhuang and 100.00% Establishment
Technology Autonomous Autonomous information
Region Region
Binjiang Binjiang Electronics
Dahua
District, District, and 51.00% Establishment
Storage
Hangzhou Hangzhou information
Binjiang Binjiang Electronics
Huaruijie District, District, and 51.00% Establishment
Hangzhou Hangzhou information
Longquanyi Longquanyi Electronics
Chengdu
District, District, and 100.00% Establishment
Zhilian
Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu
District, District, and 100.00% Establishment
Zhian
Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu
District, District, and 100.00% Establishment
Zhishu
Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu
District, District, and 100.00% Establishment
Zhichuang
Chengdu Chengdu information
Chengdu Electronics
Dayi County, Dayi County,
Smart and 90.00% Establishment
Chengdu Chengdu
Network information
Wucheng Wucheng Electronics
Huakong
District, District, and 100.00% Establishment
Software
Jinhua City Jinhua City information
Binjiang Binjiang Electronics
Huacheng
District, District, and 100.00% Establishment
Software
Hangzhou Hangzhou information
Nanming Nanming Electronics
Guizhou
District, District, and 100.00% Establishment
Dahua
Guiyang Guiyang information
Electronics
Zhengzhou, Zhengzhou,
Henan Dahua and 100.00% Establishment
Henan Henan
information
Binjiang Binjiang Electronics
Huajian District, District, and 45.00% Note (5) Establishment
Hangzhou Hangzhou information
Zhengzhou Zhengzhou, Zhengzhou, Electronics 100.00% Establishment
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Dahua Zhian Henan Henan and
information
Electronics
Dahua
Singapore Singapore and 100.00% Establishment
International
information
Electronics
Anhui Zhilian Hefei, Anhui Hefei, Anhui and 100.00% Establishment
information
Electronics
Anhui Zhishu Hefei, Anhui Hefei, Anhui and 100.00% Establishment
information
Electronics
Wuhu Huajian Wuhu, Anhui Wuhu, Anhui and 100.00% Establishment
information
Electronics
Changsha Changsha, Changsha,
and 100.00% Establishment
Dahua Hunan Hunan
information
Electronics
Tianjin Hexi District, Hexi District,
and 100.00% Establishment
Huajian Tianjin Tianjin
information
Xiaoshan Xiaoshan Electronics
Zhejiang
District, District, and 51.00% Establishment
Pixfra
Hangzhou Hangzhou information
Yiwu City, Yiwu City, Electronics
Yiwu Huaxi Zhejiang Zhejiang and 100.00% Establishment
Province Province information
Xiaoshan Xiaoshan Electronics
Dahua
District, District, and 100.00% Establishment
Operation
Hangzhou Hangzhou information
Nanyang City, Nanyang City, Electronics
Nanyang
Henan Henan and 100.00% Establishment
Intelligent
Province Province information
Yibin City, Yibin City, Electronics
Yibin Huahui Sichuan Sichuan and 100.00% Establishment
Province Province information
Chengdu City, Chengdu City, Electronics
Chengdu
Sichuan Sichuan and 100.00% Establishment
Huazhiwei
Province Province information
Xi'an City, Xi'an City, Electronics
IMOU Xi'an Shaanxi Shaanxi and 100.00% Establishment
Province Province information
Electronics
Dahua Hong
Hong Kong Hong Kong and 100.00% Establishment
Kong
information
Electronics
Dahua USA USA USA and 100.00% Establishment
information
Electronics
Dahua Europe Netherlands Netherlands and 100.00% Establishment
information
Electronics
Dahua Middle United Arab United Arab
and 100.00% Establishment
East Emirates Emirates
information
Electronics
Dahua Mexico Mexico Mexico and 100.00% Establishment
information
Dahua Chile Chile Chile Electronics 100.00% Establishment
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and
information
Electronics
Dahua
Columbia Columbia and 100.00% Establishment
Colombia
information
Electronics
Dahua
Australia Australia and 100.00% Establishment
Australia
information
Electronics
Dahua
Singapore Singapore and 100.00% Establishment
Singapore
information
Electronics
Dahua South
South Africa South Africa and 100.00% Establishment
Africa
information
Electronics
Dahua Peru Peru Peru and 100.00% Establishment
information
Electronics
Dahua Brazil Brazil Brazil and 100.00% Establishment
information
Electronics
Dahua Russia Russia Russia and 100.00% Establishment
information
Electronics
Dahua
Canada Canada and 100.00% Establishment
Canada
information
Electronics
Dahua
Panama Panama and 100.00% Establishment
Panama
information
Electronics
Dahua
Hungary Hungary and 100.00% Establishment
Hungary
information
Electronics
Dahua Poland Poland Poland and 100.00% Establishment
information
Electronics
Dahua Tunisia Tunisia Tunisia and 100.00% Establishment
information
Electronics
Dahua Kenya Kenya Kenya and 100.00% Establishment
information
Electronics
Dahua UK UK UK and 100.00% Establishment
information
Electronics
Dahua
Bulgaria Bulgaria and 100.00% Establishment
Bulgaria
information
Electronics
Dahua Serbia Serbia Serbia and 100.00% Establishment
information
Electronics
Dahua
Germany Germany and 100.00% Establishment
Germany
information
Electronics
Dahua
Malaysia Malaysia and 100.00% Establishment
Malaysia
information
Dahua Korea South Korea South Korea Electronics 100.00% Establishment
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and
information
Electronics
Dahua
Indonesia Indonesia and 67.00% Establishment
Indonesia
information
Electronics
Dahua India India India and 100.00% Establishment
information
Electronics
Dahua Turkey Turkey Turkey and 100.00% Establishment
information
Electronics
Czech Czech
Dahua Czech and 100.00% Establishment
Republic Republic
information
Electronics
Dahua
Argentina Argentina and 100.00% Establishment
Argentina
information
Electronics
Dahua Spain Spain Spain and 100.00% Establishment
information
Electronics
Dahua
Kazakhstan Kazakhstan and 100.00% Establishment
Kazakhstan
information
Electronics
Dahua
Denmark Denmark and 100.00% Establishment
Denmark
information
Electronics
Dahua France France France and 100.00% Establishment
information
Dahua Lorex Electronics
(US) USA USA and 100.00% Establishment
Corporation information
Dahua Electronics
Technology Hong Kong Hong Kong and 100.00% Establishment
Holdings information
Electronics
Dahua
Morocco Morocco and 100.00% Establishment
Morocco
information
Business
Dahua Electronics combination
Technology Italy Italy and 100.00% not under
Italy information common
control
Electronics
Dahua
Uzbekistan Uzbekistan and 100.00% Establishment
Uzbekistan
information
Electronics
Dahua
Netherlands Netherlands and 100.00% Establishment
Netherlands
information
Electronics
Dahua Sri
Sri Lanka Sri Lanka and 100.00% Establishment
Lanka
information
Business
Dahua Lorex Electronics combination
(Canada) Canada Canada and 100.00% not under
Corporation information common
control
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Electronics
Dahua
Pakistan Pakistan and 100.00% Establishment
Pakistan
information
Electronics
Dahua New
New Zealand New Zealand and 100.00% Establishment
Zealand
information
Electronics
Dahua
Thailand Thailand and 99.98% Establishment
Thailand
information
Electronics
Dahua
Romania Romania and 100.00% Establishment
Romania
information
Electronics
Dahua Nigeria Nigeria Nigeria and 100.00% Establishment
information
Electronics
Dahua Israel Israel Israel and 100.00% Establishment
information
Electronics
Dahua Mexico
Mexico Mexico and 100.00% Establishment
Service
information
Electronics
Huacheng
Netherlands Netherlands and 100.00% Establishment
Netherlands
information
Dahua Lorex Electronics
(UK) UK UK and 100.00% Establishment
Corporation information
Electronics
Dahua Japan Japan Japan and 100.00% Establishment
information
Electronics
Dahua Qatar Qatar Qatar and 100.00% Establishment
information
Electronics
Huacheng
Hong Kong Hong Kong and 100.00% Establishment
Hong Kong
information
Electronics
Dahua Pacific Panama Panama and 100.00% Establishment
information
Electronics
Dahua Saudi
Saudi Arabia Saudi Arabia and 100.00% Establishment
Arabia
information
Electronics
Dahua Bengal Bangladesh Bangladesh and 100.00% Establishment
information
Electronics
IMOU
Australia Australia and 100.00% Establishment
Australia
information
Electronics
IMOU
Vietnam Vietnam and 100.00% Establishment
Vietnam
information
Explanations on the fact that the proportion of the shares held by a subsidiary differs from that of voting rights:
Note (1): The Company directly holds 45% equity in Hangzhou Xiaohua Technology Co., Ltd., and as agreed upon,
Zhejiang Huashi Investment Management Co., Ltd. grants its voting rights of 12% to the Company. The Company
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effectively holds 57% of the voting rights in Hangzhou Xiaohua Technology Co., Ltd., which constitutes working control
so as to incorporate it into the scope of consolidation.
Note (2): Based on the industrial and commercial registration data, the CDB Development Fund holds equity in the
Company. According to the cooperation agreement between the Company and CDB Development Fund, CDB
Development Fund shall not appoint senior management personnel, such as directors and supervisors, to Dahua
Zhilian; regarding its investment, the Company shall pay an annual investment profit of 1.2% to CDB Development
Fund through dividends, repurchase premiums, etc. In addition, the Company shall redeem the CDB Development
Fund's equity in Dahua Zhilian period by period from 2022 to 2024, using its amount of investment as other non-
current liabilities, and reclassifying those due within one year to "non-current liabilities due within one year". The
Company effectively holds 100% voting rights and equity in Dahua Zhilian.
Note (3): On April 30, 2021, the registered capital of the limited company HuaRay Technology increased from RMB
50,000,000 to RMB 55,555,556. Due to the Company's abandonment of the same proportion of capital increase right
and right of preemption of HuaRay Technology, the Company's original 51% equity holding in HuaRay Technology
was diluted to 45.9%. After the dilution of equity, the Company is still the largest shareholder of HuaRay. The
remaining shareholders have a low and dispersed shareholding ratio, and HuaRay is still a subsidiary of the Company.
Note (4): The Company directly holds 45.50% equity in Zhejiang Huafei Intelligent Technology Co., Ltd. as agreed
upon, Ningbo Hualing Venture Capital Investment Partnership (Limited Partnership) grants its voting rights of 16% to
the Company. The Company effectively holds 61.50% of the voting rights in Zhejiang Huafei Intelligence Technology
Co., Ltd., which constitutes working control so as to incorporate it into the scope of consolidation.
Note (5): The Company directly holds 45% equity in Zhejiang Huajian Technology Co., Ltd., and as agreed upon,
Ningbo Hualing Venture Capital Investment Partnership (Limited Partnership) grants its voting rights of 40% to the
Company. The Company effectively holds 85% of the voting rights in Zhejiang Huajian Technology Co., Ltd., which
constitutes working control so as to incorporate it into the scope of consolidation.
2. The transactions that lead to changes in the shareholder's equity in the subsidiaries while
still has working control over the subsidiary
(1) Explanation of the changes in the shareholder's equity in the subsidiaries
According to the decision of Shareholders' Meeting of Zhejiang Dahua Security Network Operation Service Co., Ltd.
(hereinafter referred to as the "Operator"), Ningbo Huayu Investment Management Partnership Corporation (Limited
Partnership), the minority shareholder of the Operator, transferred to the Company its 49% equity in the Operator at
the transfer price of RMB 74.94 million. After the transfer, the Company held 100% equity of the Operator.
According to the decision of Shareholders' Meeting of Guizhou Huayi Shixin Technology Co., Ltd., Guiyang
Guanshanhu Investment (Group) Co., Ltd. and Guizhou Yiyun Investment Co., Ltd., the minority shareholders of
Guizhou Huayi Shixin Technology Co., Ltd., withdrew their investments in Guizhou Huayi through capital reduction.
After the withdrawal, the Company's shareholding in Guizhou Huayi changed from 45% to 100%.
(2) The impact of transactions on minority shareholders' equity and the equity attributable to the parent
company
Unit: RMB
Operator Guizhou Huayi
Purchase cost/Disposal
consideration
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-- Cash 74,940,000.00 3,000,000.00
-- Fair value of non-cash assets
Purchase cost/ Total disposal
74,940,000.00 3,000,000.00
consideration
Less: the share of net assets of the
subsidiary calculated based on the 67,816,784.89 2,935,271.57
ratio of equity obtained/disposed
Difference 7,123,215.11 64,728.43
Among them: adjust the capital
7,123,215.11 64,728.43
reserve
Adjusted surplus reserve
Adjusted undistributed profits
3. Equity in joint venture arrangements or affiliates
(1) Financial summary of non-essential joint ventures and affiliates
Unit: RMB
Closing balance / amount occurred in Opening balance / amount occurred
the current period in the previous period
Joint ventures: -- --
The total count of the following items
-- --
based on the shareholding ratios
Affiliates: -- --
Total book value of investments 1,055,226,461.37 1,243,872,752.91
The total count of the following items
-- --
based on the shareholding ratios
--Net profit -190,450,701.35 -155,395,120.84
--Other comprehensive income -1,895,750.09 -1,835,013.29
--Total comprehensive income -192,346,451.44 -157,230,134.13
X. Risks Relating to Financial Instruments
In the business operation, the Company is facing with various financial risks: credit risk, liquidity risk and market
risk (including exchange rate risk, interest rate risk and other price risks).
The overall objective of the Company's risk management is to formulate risk management policies that can
minimize risks without affecting the Company's competitiveness and adaptability to changes too much.
(I) Credit Risk
The credit risk refers to the risk of financial loss to the Company as a result of a counterparty's failure to fulfill its
contractual obligations. The Company is mainly facing with the customer credit risk arising from sales on account.
Before signing a new contract, the Company will assess the new customer's credit risk, including external credit rating
and the credibility letter from a bank under some circumstances (if such information is available). The Company has
set a credit limit for sales on account for each customer. Such limit shall be the maximum amount with no additional
approval needed.
The Company ensures that the overall credit risk is within the controllable range through quarterly monitoring of
credit ratings of existing customers, and monthly review of aging analysis on accounts receivable. When monitoring
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
customers' credit risk, the Company groups them according to their credit characteristics. Customers rated as "high
risk" will be placed on the restricted customer list. The Company can provide them with O/A in the future period only
when additional approval is obtained. Otherwise they must make relevant payment in advance.
For overseas customers, the Company mainly uses wire transfer as a payment method. According to the credit
evaluation of each customer, the Company gives different credit lines and credit account periods, and agrees on the
payment method and account period in the commodity procurement contract between the two parties. After the sales
of products, the Company has a dedicated person responsible for tracking, reconciliation, and payment reminding. In
addition, the Company introduced export credit insurance to ensure that the return risk from overseas customers is
within controllable range.
(II) Liquidity Risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of settlement by cash
or other financial assets.
The Company's policy is to ensure that there is sufficient cash to repay the liabilities due. The liquidity risk is under the
concentrated control of the Company's Financial Department. Through monitoring the balance of cash and securities
cashable at any time and rolling forecasting the cash flow in the next 12 months, the Financial Department ensures
that the Company has sufficient funds to repay its debts under all reasonable predictions.
The financial liabilities of the Company are listed as follows based on the undiscounted contractual cash flow:
Unit: RMB
June 30, 2022
Item
Within 1 year 1 years or above Total
Short-term loan 634,697,133.66 634,697,133.66
Notes Payable 3,752,874,720.97 3,752,874,720.97
Accounts Payable 5,972,721,336.20 5,972,721,336.20
Other Payables 964,959,710.58 964,959,710.58
Non-current Liabilities Due 2,006,529,399.53 2,006,529,399.53
within 1 Year
Long-term loan 1,505,050,000.00 1,505,050,000.00
Lease Liabilities 167,844,294.61 167,844,294.61
Total 13,331,782,300.94 1,672,894,294.61 15,004,676,595.55
December 31, 2021
Item
Within 1 year 1 years or above Total
Short-term loan 325,648,230.98 325,648,230.98
Notes Payable 4,472,998,965.03 4,472,998,965.03
Accounts Payable 7,329,740,650.71 7,329,740,650.71
Other Payables 677,752,701.47 677,752,701.47
Non-current Liabilities Due 897,508,057.06 897,508,057.06
within 1 Year
Long-term loan 1,552,500,000.00 1,552,500,000.00
Lease Liabilities 154,577,298.75 154,577,298.75
Total 13,703,648,605.25 1,707,077,298.75 15,410,725,904.00
(III) Market Risk
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
The market risk of financial instruments refers to the risk of fluctuation at fair value of financial instruments or
future cash flows with the change of market prices, including exchange rate risks, interest rate risks and other price
risks.
1. Interest rate risk
The interest rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes
due to the change of market interest rate. The interest rate risk faced with by the Company is mainly from bank loans.
The Company's assets and liabilities relating to interest rate are respectively bank deposits and short-term loans,
whose interest rate risk is low.
2. Exchange rate risk
The exchange rate risk refers to the risk in which the fair value or future cash flow of financial instruments
changes due to the change of foreign exchange rate. The Company will try its best to match the revenues with the
expenses in foreign currency, to lower the exchange rate risk. In addition, the Company may also sign forward foreign
exchange contracts or currency swap contracts to avoid exchange rate risks.
The exchange rate risk faced with by the Company is mainly from financial assets and liabilities in USD. The
amounts of assets and liabilities in foreign currencies and converted into RMB are listed as below:
Unit: RMB
Closing balance Opening balance
Item Other foreign Other foreign
USD Total USD Total
currencies currencies
Cash and
Bank 624,684,856.65 555,730,854.56 1,180,415,711.21 2,354,710,497.05 916,354,449.93 3,271,064,946.98
Balances
Accounts
3,776,355,156.07 1,570,621,738.27 5,346,976,894.34 3,483,123,214.93 1,480,563,785.67 4,963,687,000.60
receivable
Accounts
1,075,791,517.17 259,299,963.54 1,335,091,480.71 1,643,617,962.46 352,288,239.87 1,995,906,202.33
Payable
Total 5,476,831,529.89 2,385,652,556.37 7,862,484,086.26 7,481,451,674.44 2,749,206,475.47 10,230,658,149.91
XI. Disclosure of Fair Values
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
Fair values at period-end
Item First level Second level Third level
measurement ata fair measurement at fair measurement at fair Total
value value value
I. Constant
measurement at fair -- -- -- --
value
(I) Trading Financial
1,470,000.00 1,470,000.00
Assets
1. Financial assets
measured at fair
1,470,000.00 1,470,000.00
value through profit
or loss in this period
(1) Investment in
debt instrument
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(2) Investment in
equity instrument
(3) Derivative
Financial Assets
(4) Others 1,470,000.00 1,470,000.00
2. Financial assets
that are designated
to be measured at
fair value through
profit or loss in this
period
(1) Investment in
debt instrument
(2) Investment in
equity instrument
(II) Receivables
676,732,626.54 676,732,626.54
Financing
(III) Other Non-
current Financial 585,770,457.65 525,215,662.07 1,110,986,119.72
Assets
1. Financial assets
measured at fair
585,770,457.65 525,215,662.07 1,110,986,119.72
value through profit
or loss in this period
(1) Investment in
debt instrument
(2) Investment in
525,215,662.07 525,215,662.07
equity instrument
(3) Derivative
Financial Assets
(4) Others 585,770,457.65 585,770,457.65
2. Financial assets
that are designated
to be measured at
fair value through
profit or loss in this
period
(1) Investment in
debt instrument
(2) Others
Total assets
constantly measured 1,263,973,084.19 525,215,662.07 1,789,188,746.26
at fair value
(VI) Transactional
22,938,892.17 22,938,892.17
financial liabilities
Of which: Derivative
22,938,892.17 22,938,892.17
financial liabilities
Total amount of
liabilities constantly
22,938,892.17 22,938,892.17
measured at their fair
values
II. Non-constant
measurement at fair -- -- -- --
values
185
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
2. For the continuous and non-continuous second-level fair value measurement items, the
valuation techniques adopted and the qualitative and quantitative information of important
parameters
The fair value of derivative financial assets/derivative financial liabilities is recognized based on the difference between
the quotation of the forward foreign exchange settlement contract and the forward foreign exchange price.
Due to the short remaining term of the receivables financing, the book value is close to the fair value, and the nominal
amount is used as the fair value.
Other non-current financial assets are valued on the basis of quotations provided by financial institutions.
3. For the continuous and non-continuous third-level fair value measurement items, the
valuation techniques adopted and the qualitative and quantitative information of important
parameters
Evaluate the value and net book assets based on the income method and asset-based method.
4. The fair value of financial assets and financial liabilities not measured at fair value
The fair value of financial assets and financial liabilities measured by the Company at amortized cost is equivalent to
the book value.
XII. Related Parties and Related-party Transactions
1. The Company's Parent Company
Register
Name of parent Business Registere Shareholding ratio of the Proportion of voting rights of
ed
company Nature d Capital parent company the parent company
Address
Fu Liquan 34.19% 34.19%
Chen Ailing 2.38% 2.38%
The final controllers of the Company are Mr. Fu Liquan and Ms. Chen Ailing.
2. Information about the Company's subsidiaries
For details of subsidiaries of the Company, see Note "IX. Equities in other entities".
3. Information about the Company's joint ventures and affiliates
For details of significant joint ventures and associates of the Company, see Note "IX. Equities in other entities".
Here are the information about other joint ventures and affiliates that have related-party transactions with the Company
in the current period or have balance from related-party transactions with the Company in the previous period:
Names of joint ventures and affiliates Relationship with the Company
Intelbras S.A. Affiliate
Guangdong Zhishi Digital Technology Co., Ltd. Affiliate
Zhejiang Leapmotor Technology Co., Ltd. and its affiliates Affiliate and enterprise where the actual controller has
(Note 1) significant influence
Ruicity Digital Technology Co., Ltd. and its affiliates (Note Affiliate
186
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
2)
China Standard Intelligent Security Technology Co., Ltd. Affiliate
Shaoxing Dahua Security Services Co., Ltd. Affiliate
Hangzhou Juhuanyan Information Technology Co., Ltd. Affiliate
Dezhou Shuzhi Information Technology Co., Ltd. Affiliate
Lishui Dahua Intelligent Technology Co., Ltd. (Note 3) Affiliate
Ningbo Dahua Anbang Security Services Co., Ltd. (Note
Affiliate
3)
Zhoushan Dahua Technology Co., Ltd. (Note 3) Affiliate
Taizhou Dahua Security Services Co., Ltd. (Note 3) Affiliate
Other notes
Note 1: "Zhejiang Leapmotor Technology Co., Ltd. and its affiliates" includes a total of eight companies, namely
Zhejiang Leapmotor Technology Co., Ltd., Leapmotor Automobile Co., Ltd., Hangzhou Leapmotor Automobile Sales
Service Co., Ltd., Zhejiang Youchong New Energy Technology Co., Ltd., Wuhan Lingchao Automobile Sales Service
Co., Ltd., Zhejiang Leapmotor Automobile Sales Service Co., Ltd., Jinhua Leapmotor New Energy Automotive Parts
Technology Co., Ltd, and Shanghai Leapmotor Automobile Marketing Service Co., Ltd,. all of which has related
transactions with the Company.
Note 2: "Ruicity Digital Technology Co., Ltd. and its affiliates" includes Ruicity Digital Technology Co., Ltd. and its
subsidiary, Ruicity (Shandong) Digital Technology Co. Ltd.
Note 3: The equity of the Company in Lishui Dahua Intelligent Technology Co., Ltd., Ningbo Dahua Anbang Security
Service Co., Ltd., Zhoushan Dahua Technology Co., Ltd., and Taizhou Dahua Security Service Co. Ltd. has been fully
transferred in 2021. However, due to the resignation of director Wu Yunlong in March 2021, it is still recognized as
having affiliated relationship within 12 months of leaving office, and the affiliated relationship ended in March 2022.
4. Information about other related parties
Relationship between the Company and other related
Names of other related parties
parties
Enterprise once controlled by the spouse of senior
Hangzhou Nuojia Technology Co., Ltd. (Note 1)
manager of the Company
Enterprise significantly influenced by the senior manager
Hangzhou Xunwei Robotics Technology Co., Ltd.
of the Company
Enterprise significantly influenced by the senior manager
Hangzhou Xintu Technology Co., Ltd.
of the Company
Ningbo Hualing Venture Capital Investment Partnership
Enterprise controlled by the actual controller
(Limited Partnership)
Subsidiary of a company with shares held by the
Ningxia Shendun Security Services Co., Ltd.
Company
Zhejiang Huanuokang Technology Co., Ltd. Company controlled by the Company's actual controller
Zhoushan Weixin Equity Investment Partnership (Limited Enterprise where the actual controller has significant
Partnership) influence
Zhoushan Zhixin Equity Investment Partnership (Limited
Enterprise controlled by the actual controller
Partnership)
Enterprise where the actual controller has significant
Zhejiang Huatu Microchip Technology Co., Ltd. (Note 2)
influence
Zhejiang Xinsheng Electronic Technology Co., Ltd. (Note Enterprise where the actual controller has significant
2) influence
Zhoushan Dahua Security Service Co., Ltd. (Note 3) Subsidiary of the affiliate
Zhejiang Huashi Investment Management Co., Ltd. Enterprise controlled by the actual controller
Zhejiang Zhihua Internet of Things Technology Co., Ltd. Subsidiary of the affiliate
Hangzhou Xianmai Technology Co., Ltd. Enterprise controlled by the actual controller
187
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
China Mobile Communications Group Co., Ltd. and its
Group with significant influence on the Company
affiliates
Other notes
Note 1: Hangzhou Nuojia Technology Co., Ltd. was a business controlled by the spouse of a senior manager of the
Company. The spouse disposed of shares and lost the control over the business in January 2022, but it is still
recognized as an associated party within 12 months after the disposal, and the associated relationship will end in
January 2023.
Note 2: Zhejiang Huatu Microchip Technology Co., Ltd. and Zhejiang Xinsheng Electronic Technology Co., Ltd. have
been disposed of by Dahua in July 2020, and are still enterprises with important influence from the actual controller
after disposal.
Note 3: Zhoushan Dahua Security Service Co., Ltd. is a wholly-owned subsidiary of Zhoushan Dahua Technology Co.,
Ltd. The Company has transferred all the equity of Zhoushan Dahua Technology Co., Ltd. in 2021. However, due to
the resignation of director Wu Yunlong in March 2021, it was still recognized as an affiliated relationship within 12
months of his resignation, and the affiliated relationship ended in March 2022.
5. Information about related-party transactions
(1) Related-party transactions involving purchase and selling of merchandise and provision
and acceptance of labor services
Merchandise purchase and acceptance of labor services
Unit: RMB
Content of the Amount Over the Amount
Approved
Related parties related - party Occurred in the transaction Occurred in the
transaction limit
transaction Current Period limit or not Previous Period
Zhejiang
Xinsheng
Purchase of
Electronic 130,451,406.39 No 132,370,788.16
materials
Technology Co.,
Ltd.
China Mobile Material
Communications procurement,
11,413,569.54 No 4,584,246.52
Group Co., Ltd. acceptance of
and its affiliates services
Hangzhou Nuojia
Acceptance of
Technology Co., 210,616.99 No 484,234.68
services
Ltd.
Zhejiang
Huanuokang Purchase of
99,999.97 No 1,336,283.11
Technology Co., materials
Ltd.
Hangzhou Material
Xunwei Robotics procurement,
5,685.12 No 444,057.57
Technology Co., acceptance of
Ltd. services
Zhoushan Dahua
Acceptance of
Security Service No 4,088,447.17
services
Co., Ltd.
Zhejiang Material
Leapmotor procurement,
No 35,679.20
Technology Co., acceptance of
Ltd. and its services
188
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
affiliates
Sales of merchandise and provision of services
Unit: RMB
Content of the related Amount Occurred in the Amount Occurred in the
Related parties
- party transaction Current Period Previous Period
Intelbras S.A. Sales of merchandise 364,654,929.70 303,183,526.51
Sales of merchandise
China Mobile Communications
and provision of 170,642,375.20 58,933,557.62
Group Co., Ltd. and its affiliates
services
Sales of merchandise
Zhejiang Leapmotor Technology
and provision of 167,405,053.69 25,154,144.53
Co., Ltd. and its affiliates
services
Guangdong Zhishi Digital
Sales of merchandise 10,008,308.98 12,724,922.75
Technology Co., Ltd.
Ruicity Digital Technology Co.,
Sales of merchandise 8,592,707.81 15,964,205.97
Ltd. and its affiliates
Zhejiang Huanuokang
Sales of merchandise 1,123,013.63 1,471,146.02
Technology Co., Ltd.
Ningbo Dahua Anbang Security
Sales of merchandise 609,380.47
Services Co., Ltd.
Hangzhou Xintu Technology Co., Provision of labor
2,358.48 236,264.22
Ltd. services
Zhejiang Xinsheng Electronic
Sales of merchandise 69,437.96 198,454.94
Technology Co., Ltd.
Hangzhou Nuojia Technology
Sales of merchandise 64,601.77 45,893.80
Co., Ltd.
Zhoushan Dahua Technology
Sales of merchandise 80,051.32
Co., Ltd.
Hangzhou Xunwei Robotics
Sales of merchandise 1,061.95 11,469.03
Technology Co., Ltd.
Zhejiang Zhihua Internet of
Sales of merchandise 1,769.91 14,867.26
Things Technology Co., Ltd.
China Standard Intelligent
Sales of merchandise 1,327.43
Security Technology Co., Ltd.
Taizhou Dahua Security
Sales of merchandise 69.03
Services Co., Ltd.
(2) Related leasing
The Company being the lessor:
Unit: RMB
Rental income
Type of the leased Rental income confirmed in
Name of the lessee confirmed in this
assets the previous period
period
Zhejiang Leapmotor Technology Co., Ltd. Buildings and
129,297.61 495,771.41
and its affiliates constructions
Zhejiang Huanuokang Technology Co., Buildings and
102,857.15
Ltd. constructions
Zhejiang Xinsheng Electronic Technology Transport
15,486.73 15,044.25
Co., Ltd. equipment
Ruicity Digital Technology Co., Ltd. and Transport
28,723.15
its affiliates equipment
The Company being the lessee:
Unit: RMB
189
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Simplified rental Variable lease
expenses for payments not
Interest expense
short-term leases included in the Increased right-
Rent paid on lease
and low-value measurement of of-use assets
liabilities borne
asset leases (if lease liabilities (if
Type applicable) applicable)
Name
of the Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
of the
leased t t t t t t t t t t
lessor
assets Occurr Occurr Occurr Occurr Occurr Occurr Occurr Occurr Occurr Occurr
ed in ed in ed in ed in ed in ed in ed in ed in ed in ed in
the the the the the the the the the the
Curren Previo Curren Previo Curren Previo Curren Previo Curren Previo
t us t us t us t us t us
Period Period Period Period Period Period Period Period Period Period
Zhejia
ng
Leapm
otor Machin
Techno ery
1,034, 134,93 8,884,
logy and
915.00 4.57 640.73
Co., equip
Ltd. ment
and its
affiliate
s
(3) Related guarantee
The Company being the guarantor:
Unit: RMB
Guarantee
Guarantee fulfilled
Secured parties Starting date Maturity date
amount completely
or not
Zhejiang Dahua Vision
180,000,000.00 June 26, 2019 June 25, 2022 Yes
Technology Co., Ltd.
Two years after the maturity
Zhejiang Dahua Vision
250,000,000.00 February 17, 2020 of the debts in the master Yes
Technology Co., Ltd.
contract
Two years after the maturity
Zhejiang Dahua Vision
240,000,000.00 April 13, 2020 of the debts in the master Yes
Technology Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua Vision
300,000,000.00 February 25, 2021 of the debts in the master Yes
Technology Co., Ltd.
contract
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Dahua Vision
200,000,000.00 November 10, 2021 of each note discounted by Yes
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
Two years after the maturity
Zhejiang Dahua Vision
220,000,000.00 October 13, 2017 of the debts in the master No
Technology Co., Ltd.
contract
Zhejiang Dahua Vision 40,000,000.00 September 21, 2018 Two years after the maturity No
190
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Technology Co., Ltd. of the debts in the master
(guarantee currency is contract
US dollar)
Zhejiang Dahua Vision
530,000,000.00 April 7, 2020 March 31, 2024 No
Technology Co., Ltd.
Two years after the maturity
Zhejiang Dahua Vision
600,000,000.00 August 12, 2020 of the debts in the master No
Technology Co., Ltd.
contract
Two years after the maturity
Zhejiang Dahua Vision
330,000,000.00 August 18, 2020 of the debts in the master No
Technology Co., Ltd.
contract
Five years upon expiration of
Zhejiang Dahua Vision
300,000,000.00 August 15, 2020 debt period of master No
Technology Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua Vision 1,000,000,000.0
February 4, 2021 of the debts in the master No
Technology Co., Ltd. 0
contract
Zhejiang Dahua Vision
80,000,000.00 May 12, 2021 December 31, 2022 No
Technology Co., Ltd.
Three years after the maturity
Zhejiang Dahua Vision
440,000,000.00 July 26, 2021 of the debts in the master No
Technology Co., Ltd.
contract
Zhejiang Dahua Vision
35,000,000.00 August 1, 2021 July 31, 2023 No
Technology Co., Ltd.
Three years after the maturity
Zhejiang Dahua Vision
500,000,000.00 August 2, 2021 of the debts in the master No
Technology Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua Vision
600,000,000.00 September 27, 2021 of the debts in the master No
Technology Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua Vision
900,000,000.00 September 27, 2021 of the debts in the master No
Technology Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua Vision
200,000,000.00 October 20, 2021 of the debts in the master No
Technology Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua Vision
300,000,000.00 June 10, 2022 of the debts in the master No
Technology Co., Ltd.
contract
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Dahua Vision
200,000,000.00 June 10, 2022 of each note discounted by No
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
One years upon expiration of
Zhejiang Dahua Zhilian
100,000,000.00 May 1, 2021 debt period of master Yes
Co., Ltd.
contract
Zhejiang Dahua Zhilian
Co., Ltd. (guarantee 60,000,000.00 May 1, 2021 April 30, 2022 Yes
currency is US dollar)
Zhejiang Dahua Zhilian
Co., Ltd. (guarantee 55,000,000.00 April 30, 2021 May 14, 2022 Yes
currency is US dollar)
Zhejiang Dahua Zhilian From effective date of the
160,000,000.00 November 10, 2021 Yes
Co., Ltd. Commitment Letter to three
191
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
years after the maturity date
of each note discounted by
the China Merchants Bank
within the credit extension
period
Zhejiang Dahua Zhilian
Co., Ltd. (guarantee 24,000,000.00 December 3, 2021 May 31, 2022 Yes
currency is US dollar)
Two years after the maturity
Zhejiang Dahua Zhilian
300,000,000.00 March 28, 2019 of the debts in the master No
Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua Zhilian
165,000,000.00 July 26, 2021 of the debts in the master No
Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua Zhilian
150,000,000.00 September 27, 2021 of the debts in the master No
Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua Zhilian
200,000,000.00 November 10, 2021 of the debts in the master No
Co., Ltd.
contract
One years upon expiration of
Zhejiang Dahua Zhilian
35,000,000.00 December 3, 2021 debt period of master No
Co., Ltd.
contract
Zhejiang Dahua Zhilian
Co., Ltd. (guarantee 5,000,000.00 December 3, 2021 December 2, 2024 No
currency is US dollar)
Zhejiang Dahua Zhilian
80,000,000.00 March 25, 2022 December 31, 2023 No
Co., Ltd.
Zhejiang Dahua Zhilian One years upon expiration of
Co., Ltd. (guarantee 60,000,000.00 May 1, 2022 debt period of master No
currency is US dollar) contract
One years upon expiration of
Zhejiang Dahua Zhilian
10,000,000.00 May 1, 2022 debt period of master No
Co., Ltd.
contract
Zhejiang Dahua Zhilian
Co., Ltd. (guarantee 55,000,000.00 May 14, 2022 May 14, 2023 No
currency is US dollar)
Three years after the maturity
Zhejiang Dahua Zhilian
160,000,000.00 June 10, 2022 of the debts in the master No
Co., Ltd.
contract
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Dahua Zhilian
160,000,000.00 June 10, 2022 of each note discounted by No
Co., Ltd.
the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Dahua System
40,000,000.00 November 10, 2021 of each note discounted by Yes
Engineering Co., Ltd.
the China Merchants Bank
within the credit extension
period
Two years after the maturity
Zhejiang Dahua System
10,000,000.00 August 30, 2019 of the debts in the master No
Engineering Co., Ltd.
contract
192
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Three years after the maturity
Zhejiang Dahua System
50,000,000.00 August 2, 2021 of the debts in the master No
Engineering Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua System
60,000,000.00 November 10, 2021 of the debts in the master No
Engineering Co., Ltd.
contract
Three years after the maturity
Zhejiang Dahua System
40,000,000.00 June 10, 2022 of the debts in the master No
Engineering Co., Ltd.
contract
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Dahua System
40,000,000.00 June 10, 2022 of each note discounted by No
Engineering Co., Ltd.
the China Merchants Bank
within the credit extension
period
Dahua Technology (HK)
Limited (guarantee 1,000,000.00 April 25, 2021 April 25, 2022 Yes
currency is EUR)
Dahua Technology (HK)
Limited (guarantee 2,000,000.00 March 25, 2022 March 25, 2023 No
currency is US dollar)
DAHUA TECHNOLOGY
MEXICO S.A. DE C.V
1,000,000.00 September 1, 2021 December 1, 2023 No
(guaranteed currency is
US dollar)
DAHUA TECHNOLOGY
MEXICO S.A. DE C.V
5,000,000.00 October 21, 2021 October 20, 2022 No
(guaranteed currency is
US dollar)
Hangzhou Huacheng Six months upon expiration
Network Technology Co., 20,000,000.00 February 4, 2021 of debt period of master Yes
Ltd. contract
Hangzhou Huacheng Three years after the maturity
Network Technology Co., 100,000,000.00 February 25, 2021 of the debts in the master Yes
Ltd. contract
Hangzhou Huacheng Two years after the maturity
Network Technology Co., 50,000,000.00 August 30, 2019 of the debts in the master No
Ltd. contract
Hangzhou Huacheng Three years after the maturity
Network Technology Co., 55,000,000.00 July 26, 2021 of the debts in the master No
Ltd. contract
Hangzhou Huacheng Three years after the maturity
Network Technology Co., 50,000,000.00 September 27, 2021 of the debts in the master No
Ltd. contract
Dahua Technology UK
Sign the Termination Notice
Limited (guaranteed 1,160,000.00 August 12, 2020 No
Letter
currency is GBP)
Dahua Technology USA
Inc. (guaranteed currency 1,400,000.00 November 19, 2021 November 18, 2022 No
is US dollar)
Zhejiang Dahua Storage
Three years after the maturity
Technology Co., Ltd.
2,000,000.00 May 2, 2021 of the debts in the master Yes
(guarantee currency is
contract
US dollar)
Zhejiang Dahua Storage Three years after the maturity
10,000,000.00 April 29, 2022 No
Technology Co., Ltd. of the debts in the master
193
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
contract
Zhejiang Dahua Storage
Three years after the maturity
Technology Co., Ltd.
2,000,000.00 May 16, 2022 of the debts in the master No
(guarantee currency is
contract
US dollar)
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Dahua Storage
10,000,000.00 June 10, 2022 of each note discounted by No
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
Zhejiang Huachuang Three years after the maturity
Vision Technology Co., 50,000,000.00 May 11, 2021 of the debts in the master Yes
Ltd. contract
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Fengshi
20,000,000.00 November 10, 2021 of each note discounted by Yes
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Fengshi
20,000,000.00 June 10, 2022 of each note discounted by No
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
Three years after the maturity
Wuxi Dahua Ruipin
10,000,000.00 October 20, 2021 of the debts in the master No
Technology Co., Ltd.
contract
From effective date of the
Commitment Letter to three
years after the maturity date
Wuxi Dahua Ruipin
10,000,000.00 November 10, 2021 of each note discounted by Yes
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Wuxi Dahua Ruipin
10,000,000.00 June 10, 2022 of each note discounted by No
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Huaxiao
5,000,000.00 November 10, 2021 of each note discounted by Yes
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
From effective date of the
Zhejiang Huaxiao Commitment Letter to three
10,000,000.00 June 10, 2022 No
Technology Co., Ltd. years after the maturity date
of each note discounted by
194
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
Xi'an Dahua Zhilian
30,000,000.00 September 27, 2021 September 18, 2022 No
Technology Co., Ltd.
From effective date of the
Commitment Letter to three
years after the maturity date
Xi'an Dahua Zhilian
50,000,000.00 November 10, 2021 of each note discounted by Yes
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Xi'an Dahua Zhilian
50,000,000.00 June 10, 2022 of each note discounted by No
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
Zhengzhou Dahua Zhian years after the maturity date
Information Technology 50,000,000.00 November 10, 2021 of each note discounted by Yes
Co., Ltd. the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
Zhengzhou Dahua Zhian years after the maturity date
Information Technology 50,000,000.00 June 10, 2022 of each note discounted by No
Co., Ltd. the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
Chengdu Dahua Zhian years after the maturity date
Information Technology 50,000,000.00 November 10, 2021 of each note discounted by Yes
Service Co., Ltd. the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
Chengdu Dahua Zhian years after the maturity date
Information Technology 100,000,000.00 June 10, 2022 of each note discounted by No
Service Co., Ltd. the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Changsha Dahua
10,000,000.00 June 10, 2022 of each note discounted by No
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
From effective date of the
Zhejiang Pixfra
5,000,000.00 June 10, 2022 Commitment Letter to three No
Technology Co., Ltd.
years after the maturity date
195
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
of each note discounted by
the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
Zhejiang Huafei years after the maturity date
Intelligent Technology 5,000,000.00 June 10, 2022 of each note discounted by No
Co., Ltd. the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Huajian
5,000,000.00 June 10, 2022 of each note discounted by No
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Hangzhou Xiaohua
5,000,000.00 June 10, 2022 of each note discounted by No
Technology Co., Ltd.
the China Merchants Bank
within the credit extension
period
(4) Asset transfer and debt restructuring of related parties
Unit: RMB
Content of the related - Amount Occurred in the Amount Occurred in the
Related parties
party transaction Current Period Previous Period
Zhejiang Leapmotor
Procurement of fixed
Technology Co., Ltd. and 842,105.08 1,157,719.80
assets
its affiliates
Zhejiang Huanuokang
Selling of fixed assets 3,078.06
Technology Co., Ltd.
Ruicity Digital Technology
Selling of fixed assets 112,127.64
Co., Ltd.
(5) Remuneration to key management personnel
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Salary of key management personnel 4,860,645.75 5,430,399.52
(6) Other related-party transactions
① On February 16, 2022, the 26th Meeting of the 7th Board of Directors of the Company discussed and adopted the
Proposal on Adjusting Related Matters and Related Transactions of Industrial Fund, agreeing that the subscribed
capital of Huayan Investment Fund would be increased from RMB 150.1 million to RMB 258.01 million, where some
original partners increased their capital contributions and four new limited partners were added. The Company has not
increased its capital contribution this time. After the change, the proportion of the Company capital contribution Is
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
19.38%. The modification procedures at the Bureau of Industry and Commerce for the above matters were completed
in March 2022.
② On April 22, 2022, the "Proposal on Abandoning the Preemptive Right and Related Transactions of Subsidiaries"
was reviewed and approved at the 30th session of the 7th Board of Directors, and Zhang Hui, the shareholder of
Huafei Technology, transferred his 13.50% equity to Hualing Venture Capital Investment at a price of RMB 15,903,000.
The Company agreed to waive its right of preemption to the above equity. The modification procedures at the Bureau
of Industry and Commerce for the above matters were completed in June 2022.
6. Receivables and payables of the related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Item Name Related parties Bad debt Bad debt
Book balance Book balance
provision provision
Accounts
Intelbras S.A. 274,702,086.32 13,736,789.48 206,318,099.10 10,320,331.98
receivable
China Mobile
Accounts Communications
197,221,957.15 13,428,018.55 111,247,639.49 7,895,521.54
receivable Group Co., Ltd.
and its affiliates
Zhejiang
Leapmotor
Accounts
Technology Co., 212,359,483.43 10,650,852.01 89,391,704.45 4,647,793.73
receivable
Ltd. and its
affiliates
Ruicity Digital
Accounts Technology Co.,
10,064,788.73 503,239.44 4,915,729.56 245,786.48
receivable Ltd. and its
affiliates
Guangdong
Accounts Zhishi Digital
8,959,411.16 447,970.56 6,365,249.54 318,262.48
receivable Technology Co.,
Ltd.
Zhejiang
Accounts Huanuokang
4,008,712.23 290,506.89 2,738,506.81 146,705.87
receivable Technology Co.,
Ltd.
Zhejiang
Xinsheng
Accounts
Electronic 2,368,925.38 401,859.88 2,287,960.46 173,101.22
receivable
Technology Co.,
Ltd.
Hangzhou
Juhuanyan
Accounts
Information 1,208,000.00 254,926.40 1,208,000.00 181,613.20
receivable
Technology Co.,
Ltd.
Zhejiang Huatu
Accounts
Microchip 315,750.17 94,481.85 315,750.17 31,822.29
receivable
Technology Co.,
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Ltd.
Hangzhou Nuojia
Accounts
Technology Co., 73,000.00 3,650.00 1,947.00 97.35
receivable
Ltd.
Shaoxing Dahua
Accounts Security
50,000.00 15,000.00 50,000.00 15,000.00
receivable Services Co.,
Ltd.
Dezhou Shuzhi
Accounts Information
37,648.57 1,882.43
receivable Technology Co.,
Ltd.
Hangzhou Xintu
Accounts
Technology Co., 223.20 11.16 81.72 4.09
receivable
Ltd.
Ningbo Dahua
Accounts Anbang Security
1,472,000.00 73,600.00
receivable Services Co.,
Ltd.
China Standard
Intelligent
Accounts
Security 1,017,406.10 279,911.05
receivable
Technology Co.,
Ltd.
Hangzhou
Accounts Xunwei Robotics
6,800.00 340.00
receivable Technology Co.,
Ltd.
Zhejiang
Xinsheng
Accounts
Electronic 37,566,910.38 54,676,147.76
Prepaid
Technology Co.,
Ltd.
Zhejiang
Leapmotor
Accounts
Technology Co., 949,000.00
Prepaid
Ltd. and its
affiliates
China Mobile
Communications
Contract Assets 4,838,062.59 72,764.81
Group Co., Ltd.
and its affiliates
Ningbo Hualing
Venture Capital
Other Investment
41,800,000.00 4,180,000.00 41,800,000.00 4,180,000.00
Receivables Partnership
(Limited
Partnership)
Zhoushan Weixin
Equity
Other Investment
24,320,000.00 2,432,000.00 24,320,000.00 2,432,000.00
Receivables Partnership
(Limited
Partnership)
Zhoushan Zhixin
Other
Equity 25,080,000.00 2,508,000.00 25,080,000.00 2,508,000.00
Receivables
Investment
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Partnership
(Limited
Partnership)
China Mobile
Other Communications
1,365,576.02 93,278.80 748,826.97 62,441.35
Receivables Group Co., Ltd.
and its affiliates
(2) Payables
Unit: RMB
Item Name Related parties Closing balance Opening balance
China Mobile Communications
Accounts Payable Group Co., Ltd. and its 45,800,698.42 44,367,897.15
affiliates
Zhejiang Huanuokang
Accounts Payable 1,810,449.75 1,678,007.32
Technology Co., Ltd.
Hangzhou Nuojia Technology
Accounts Payable 1,503,624.97 2,079,553.10
Co., Ltd.
Ningxia Shendun Security
Accounts Payable 350,375.00 350,375.00
Services Co., Ltd.
Hangzhou Xianmai
Accounts Payable 53,476.77 4.95
Technology Co., Ltd.
Hangzhou Xunwei Robotics
Accounts Payable 11,406.18
Technology Co., Ltd.
Zhejiang Leapmotor
Accounts Payable Technology Co., Ltd. and its 12,128,172.59
affiliates
China Mobile Communications
Contract liabilities Group Co., Ltd. and its 11,429,754.78 592,504.29
affiliates
Ruicity Digital Technology Co.,
Contract liabilities 2,352,212.39
Ltd. and its affiliates
Zhejiang Leapmotor
Contract liabilities Technology Co., Ltd. and its 1,692,561.59
affiliates
Dezhou Shuzhi Information
Contract liabilities 298,247.79
Technology Co., Ltd.
Guangdong Zhishi Digital
Contract liabilities 126,456.64
Technology Co., Ltd.
Zhejiang Zhihua Internet of
Contract liabilities 2,830.19 2,830.19
Things Technology Co., Ltd.
Hangzhou Xintu Technology
Contract liabilities 3,721.13 1,362.66
Co., Ltd.
China Mobile Communications
Other Payables Group Co., Ltd. and its 1,020,000.00 720,000.00
affiliates
Zhejiang Leapmotor
Other Payables Technology Co., Ltd. and its 173,520.00 173,520.00
affiliates
Zhejiang Huanuokang
Other Payables 63,070.00 63,070.00
Technology Co., Ltd.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
XIII. Share-based payment
1. Overview of share-based payment
Applicable □ Not applicable
Unit: RMB
Total amount of equity instruments granted by the 74,737,700 restricted shares and 74,735,300 share
Company in current period options
Total amount of equity instruments exercised by the 0
Company in current period
Total amount of equity instruments of the Company 36,127,260 shares of restricted stock
invalidated in current period
The range of the exercise prices of outstanding stock The exercise price of stock option is RMB 16.59 per
options issued by Company at the end of the period and share, and the remaining period of the contract is 48
the remaining contractual term months
The range of the exercise prices of other outstanding The granting price of restricted shares is RMB 8.16 per
equity instruments issued by Company at the end of the share, and the remaining period of the contract is 48
period and the remaining contractual term months
Other notes
(1) As the third batch of restricted stock initially granted in 2018, the second batch of some restricted stock reserved in
2019, and the second batch of restricted stock granted in 2020 fail to meet the unlocking conditions, the Company
repurchased the aforesaid restricted stock and canceled 36,127,260 shares. As at June 30, 2022, the Restricted
Share Incentive Plan for 2018 Initial Grant, 2019 Reserved Grant and 2020 Grant has been fully completed.
(2) According to the resolution of 2021 Annual Shareholders' General Meeting and the resolutions of the 27th and
32nd sessions of the 7th Board of Directors of the Company, the Company granted 74,737,700 Restricted Shares and
74,735,300 Share Options to the incentive targets on June 27, 2022. The grant price per share is RMB 8.16 for
Restricted Shares and RMB 16.59 for Share Options.
For the Restricted Shares, the period of validity is 48 months after the registration of their grant; the lock-up period is
12 months after the registration of their grant; and the unlocking period is 36 months after the lock-up period ends.
During the unlocking period, where the unlocking conditions stipulated in this incentive plan are met, the incentive
object can apply for the unlocking of the underlying stock in three times, which is to apply to unlock 40%, 30% and 30%
of the total amount of restricted stock that are granted within 12 months to 24 months, 24 months to 36 months, and 36
months to 48 months from the date of registration, respectively.
For the Share Options, the period of validity is 48 months after the registration of their grant is completed; the lock-up
period is 12 months after the registration of their grant is completed; and the exercise period is 36 months after the
lock-up period ends. During the exercise period, when the conditions for exercise set forth in this Incentive Plan are
satisfied, the Participants may apply for the exercise of the Underlying Shares in three tranches, i.e. 40%, 30% and 30%
of the granted Share Options, respectively within 12 months to 24 months, 24 months to 36 months and 36 months to
48 months from the date of registration completion.
(3) In 2021, the employees of the Company and its subsidiaries hold the equity of the subsidiary HuaRay Technology
through capital increase, direct or indirect equity transfers. According to the fair value of the outside investors then
introduced by Huaray Technology, the confirmed share-based payment fee of the current period is RMB
29,549,813.35.
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2. Situation of equity-settled share-based payment
Applicable □ Not applicable
Unit: RMB
The fair value of the Restricted Shares shall be
determined based on the Share Price and Grant Cost as
The method for determining the fair value of equity
at the Grant Date, while the fair value of the Share
instruments on the day of granting
Options shall be determined under the Black-Scholes
Model
The basis for determining the amount of exercisable Estimated according to equity instruments held by the
equity instruments employees
Reason for the significant difference between the
N/A
estimation of current period and the previous period
The accumulated amount of equity-settled share-based
106,686,958.58
payment counted into the capital reserve
Amount of equity-settled share-based payment confirmed
29,549,813.35
in current period
3. Situation of cash-settled share-based payment
□ Applicable Not applicable
4. Modification and termination of share-based payment
There is no modification or termination of share-based payment for the period.
XIV. Commitments and contingencies
1. Significant commitments
Important commitments on the balance sheet day
As of June 30, 2022, the Company's pledge information was as follows:
(1) On August 19, 2016, the subsidiary Xinjiang Dahua Zhixin Information Technology LLC pledged its future accounts
receivable amounting to RMB 351,064,980.00 incurred from the available service fee under the Franchise Agreement
for the Shihezi "Safe Shicheng" PPP Project, and signed the Fixed Assets Loan Contract (total contract amount: RMB
230,000,000.00, contract No.: 2016-01) with Shihezi Sub-Branch of the Construction Bank of China, to provide a
guarantee for the loan (term of borrowing: from August, 2016 to August, 2027, loan contract No.: 2016-01) of Xinjiang
Dahua Zhixin Information Technology LLC amounting to RMB 230,000,000.00. As of June 30, 2022, the pledge
receivables amounted to RMB 180,619,216.16 (including the long-term receivable balance RMB 150,962,494.77, and
the balance of the non-current assets matured within one year RMB 29,656,721.39). The loan balance under the
guarantee contract was RMB 103,000,000.00 (where the long-term loan balance RMB 77,500,000.00, and the balance
of non-current liabilities matured within one year RMB 25,500,000.00).
(2) On June 29, 2021, the Company and Hangzhou Branch of Zheshang Bank Co., Ltd. entered into the "Guarantee
Contract for Pledge of Asset Pool", with the number (33100000) Zheshang Asset Pool Quality (2021) No. 13431 (the
contract term is from June 29, 2021 to June 29, 2022), to provide a guarantee for the "Asset Pool Business
Cooperation Agreement" signed by the Company together with the subsidiary Zhejiang Dahua Technology Co., Ltd.,
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
the subsidiary Zhejiang Dahua System Engineering Co., Ltd., the subsidiary Guangxi Dahua Information Technology
Co., Ltd., and Hangzhou Branch of Zheshang Bank Co., Ltd. The financing amount for the fund's pledge pool cannot
be more than RMB 3 billion. On July 6, 2022, the Company and Hangzhou Branch of Zheshang Bank Co., Ltd. entered
into the "Guarantee Contract for Pledge of Asset Pool", with the number (33100000) Zheshang Asset Pool Quality
(2022) No. 13331 (the contract term is from July 6, 2022 to June 28, 2023), to provide a guarantee for the "Asset Pool
Business Cooperation Agreement" signed by the Company together with the subsidiary Zhejiang Dahua Technology
Co., Ltd., the subsidiary Zhejiang Dahua System Engineering Co., Ltd., and Hangzhou Branch of Zheshang Bank Co.,
Ltd. The financing amount for the fund's pledge pool cannot be more than RMB 2.5 billion.
Under the notes pool business, as of June 30, 2022, the Company has undue notes receivable of RMB
326,375,049.00 (where RMB 320,000,000.00 was related party notes receivable that should be included in the scope
of consolidation), the subsidiary Zhejiang Dahua Technology Co., Ltd. has undue notes receivable of RMB
436,742,131.42 (where RMB 50,000,000.00 was related party notes receivable that should be included in the scope of
consolidation), and the subsidiary Zhejiang Dahua System Engineering Co., Ltd. has undue notes receivable of RMB
4,371,429.76. Under the pledge, the Company issued a bank acceptance bill with an amount of RMB 72,534,179.98;
the subsidiary Zhejiang Dahua Vision Co., Ltd. issued a bank acceptance bill with an amount of RMB 533,956,327.48;
the subsidiary Zhejiang Dahua System Engineering Co., Ltd. issued a bank acceptance bill with an amount of RMB
1,776,846.03; the subsidiary Guangxi Dahua Information Technology Co., Ltd. issued a bank acceptance bill with an
amount of RMB 793,750.00.
(3) On June 29, 2021, the subsidiary Zhejiang Dahua Zhilian Co., Ltd. and Hangzhou Branch of Zheshang Bank Co.,
Ltd. renewed the "Guarantee Contract for Pledge of Asset Pool", with the number (33100000) Zheshang Asset Pool
Quality (2021) No. 14619 (the contract term is from June 29, 2021 to June 29, 2022). On June 30, 2022, the subsidiary
Zhejiang Dahua Zhilian Co., Ltd. and Hangzhou Branch of Zheshang Bank Co., Ltd. entered into the "Guarantee
Contract for Pledge of Asset Pool", with the number (33100000) Zheshang Asset Pool Quality (2022) No. 13592 (the
contract term is from June 30, 2022 to June 28, 2023), to provide a guarantee for the "Asset Pool Business
Cooperation Agreement" signed by the subsidiary Zhejiang Dahua Zhilian Co., Ltd. and Hangzhou Branch of
Zheshang Bank Co., Ltd. The financing amount for the fund's pledge pool cannot be more than RMB 0.5 billion.
Under the notes pool business, as of June 30, 2022, RMB 324,124,435.75 of undue notes receivable (of which RMB
134,000,000.00 was related party notes that should be included in the scope of the consolidated financial statements)
of the subsidiary Zhejiang Dahua Zhilian Co., Ltd. Was pledged for the issuance of acceptance bills. Under the pledge,
the subsidiary Zhejiang Dahua Zhilian Co., Ltd. issued RMB 317,719,196.78 in bank acceptance bills.
(4) The Company and Hangzhou Branch of China Merchants Bank Co., Ltd. signed the "Special Credit Agreement for
Notes Pool Business" (No.:571XY2020032038), which promised a special credit limit of RMB 2 billion for the notes
pool, and allocated the same limit to the subsidiary Zhejiang Dahua Technology Co., Ltd., the subsidiary Zhejiang
Dahua System Engineering Co., Ltd., the subsidiary Hangzhou Huacheng Network Technology Co., Ltd., the
subsidiary Zhejiang Fengshi Technology Co., Ltd., the subsidiary Zhejiang HuaRay Technology Co., Ltd., and the
subsidiary Zhejiang Dahua Zhilian Co., Ltd.
Under the notes pool business, as of June 30, 2022, the Company had undue notes receivable of RMB
101,809,108.00 (of which RMB 100,000,000.00 was related party notes that should be included in the scope of
consolidation), the subsidiary Zhejiang Dahua Technology Co., Ltd. had undue notes receivable of RMB
262,146,589.96, the subsidiary Hangzhou Huacheng Network Technology Co., Ltd. had undue notes receivable of
RMB 1,251,700.00, the subsidiary Zhejiang Fengshi Technology Co., Ltd. had undue notes receivable of RMB
8,390,995.50, and the subsidiary Zhejiang Dahua System Engineering Co., Ltd. had undue notes receivable of RMB
616,000.00 pledged for issuing bank acceptance bills. Under the pledge, the Company issued a bank acceptance bill
with an amount of RMB 2,438,276.60; the subsidiary Zhejiang Dahua Vision Co., Ltd. issued a bank acceptance bill
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
with an amount of RMB 63,046,777.96; the subsidiary Hangzhou Huacheng Network Technology Co., Ltd. issued a
bank acceptance bill with an amount of RMB 190,116,500.96; the subsidiary Zhejiang Fengshi Technology Co., Ltd.
issued a bank acceptance bill with an amount of RMB 43,212,095.86; the subsidiary Zhejiang Dahua System
Engineering Co., Ltd. issued a bank acceptance bill with an amount of RMB 398,382.99; and the subsidiary Zhejiang
Zhilian Co., Ltd. issued a bank acceptance bill with an amount of RMB 25,082,210.61.
(5) On May 26, 2021, the subsidiary Zhejiang Dahua Technology Co., Ltd. and Bank of Hangzhou Co., Ltd. entered
into the "Pledge Contract for Maximum Amount of Individual Asset Management" (No.: 7514ATMG202100073, the
contract term is from May 26, 2021 to May 25, 2024), to provide a guarantee for the "Asset Management Service
Agreement" signed by the subsidiary Zhejiang Dahua Technology Co., Ltd. and Hangzhou Bank Co., Ltd. The credit
limit of the notes pool cannot be more than RMB 0.2 billion.
Under the notes pool business, as of June 30, 2022, RMB 42,816,400.82 of undue notes receivable of the subsidiary
Zhejiang Dahua Technology Co., Ltd. were pledged for the issuance of acceptance bills. Under the pledge, the
subsidiary Zhejiang Dahua Technology Co., Ltd. issued bank acceptance bills with an amount of RMB 33,176,595.13.
(6) Under the Asset Pool Credit Facility Agreement PPHJHYZCZ 20220406 No.1 made by and between the Company
and Ping An Bank Limited Hangzhou Branch, a special credit line of RMB 300 million in note pool was granted and
was also allocated to the subsidiary Zhejiang Dahua Technology Co., Ltd., the subsidiary Wuxi Dahua Ruipin
Technology Co., Ltd, the subsidiary Zhejiang Huagan Technology Co., Ltd.and the subsidiary Changsha Dahua
Technology Co., Ltd.
Under the notes pool business, as of June 30, 2022, the Company had RMB 54,362,112.92 undue notes receivable
(of which RMB 50,000,000.00 was related party notes that should be included in the scope of consolidation), the
subsidiary Zhejiang Dahua Technology Co., Ltd. had RMB 130,375,553.99 undue notes receivable, and the subsidiary
Wuxi Dahua Ruipin Technology Co., Ltd had RMB 1,509,866.00 undue notes receivable pledged for issuing bank
acceptance bills. Under the pledge, the subsidiary Zhejiang Dahua Technology Co., Ltd. issued bank acceptance bills
with an amount of RMB 152,497,408.55, and the subsidiary Wuxi Dahua Ruipin Technology Co., Ltd issued bank
acceptance bills with an amount of RMB 894,684.49.
(7) On October 18, 2021, the subsidiary Zhejiang HuaRay Technology Co., Ltd. and Hangzhou Branch of China
Merchants Bank Co., Ltd. entered into the "Credit Agreement for Notes Pool Business", agreeing on a credit limit of
RMB 0.2 billion for notes pool business.
Under the notes pool business, as of June 30, 2022, the subsidiary Zhejiang HuaRay Technology Co., Ltd. had RMB
29,245,372.39 undue notes receivable that were pledged for issuing bank acceptance bills. Under the pledge, the
subsidiary Zhejiang HuaRay Technology Co., Ltd. issued bank acceptance bills with an amount of RMB 20,512,562.51.
2. Contingencies
(1) Important contingent matters on the balance sheet date
No important contingent matters on the balance sheet day.
(2) No important contingent matter needs to be disclosed by the Company.
XV. Events after the Balance Sheet Date
No events after the balance sheet date need to be disclosed in the current period.
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
XVI. Other Significant Events
1. Subsection information
(1) Basis for determining the reporting subsection and the accounting policy
The Company determines the operation subsection based on internal organization structure, management
requirements, internal reporting system, etc. The Company has only one operational subsection, namely the R&D,
production, and sales of intelligent IoT products. The accounting policy of the reporting subsection is consistent with
that of the Company.
(2) Financial information of the reporting subsection
Regional subsection
Unit: RMB
Item Operating revenue Operating Cost
Domestic 7,295,809,974.26 4,876,785,986.28
Overseas 6,791,275,866.71 3,925,790,635.04
Total 14,087,085,840.97 8,802,576,621.32
Product subsection
Unit: RMB
Item Operating revenue Operating Cost
Smart IoT Products and 11,798,309,265.54 7,061,613,890.17
Solutions
Including: Software Business 602,291,989.74 186,825,686.58
Innovated Businesses 1,685,969,891.14 1,210,244,442.96
Others 602,806,684.29 530,718,288.19
Total 14,087,085,840.97 8,802,576,621.32
XVII. Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Categorical disclosure of accounts receivable
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Percent value Percent value
Amount Amount proporti Amount Amount proporti
age age
on on
Account 35,738, 35,738, 100.00 32,146, 32,146, 100.00
0.75% 0.60%
s 376.92 376.92 % 763.01 763.01 %
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
receiva
bles
with the
bad
debt
provisio
n
accrued
based
on
single
item
Inclu
ding:
Account
s
receiva
ble with
insignifi
cant
single
amount 35,738, 35,738, 100.00 32,146, 32,146, 100.00
0.75% 0.60%
but 376.92 376.92 % 763.01 763.01 %
accrued
for
separat
e
provisio
n of bad
debt
Account
s
receiva
bles
with the
bad
4,709,8 4,609,1 5,328,3 5,235,7
debt 100,656 92,669,
08,877. 99.25% 2.14% 52,586. 87,755. 99.40% 1.74% 18,728.
provisio ,290.63 027.03
59 96 87 84
n
accrued
based
on
combin
ations
Inclu
ding:
Portfoli
o 1:
3,728,2 3,728,2 4,399,8 4,399,8
Related
27,277. 78.57% 27,277. 49,905. 82.08% 49,905.
Parties
30 30 57 57
Portfoli
o
Portfoli
o 2: 981,581 100,656 880,925 928,537 92,669, 835,868
20.68% 10.25% 17.32% 9.98%
Aging ,600.29 ,290.63 ,309.66 ,850.30 027.03 ,823.27
Analysi
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
s
Portfoli
o
4,745,5 4,609,1 5,360,5 5,235,7
100.00 136,394 100.00 124,815
Total 47,254. 52,586. 34,518. 18,728.
% ,667.55 % ,790.04
51 96 88 84
Bad debt provision based on single item: 35,738,376.92
Unit: RMB
Closing balance
Name Reason for making
Book balance Bad debt provision Accrued proportion
bad debt provision
Expected to be
Customer 1 35,738,376.92 35,738,376.92 100.00%
unable to recover
Total 35,738,376.92 35,738,376.92
Bad debt provision based on combinations: 100,656,290.63
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 Year 709,593,870.45 35,479,693.52 5.00%
1 to 2 years 184,995,120.73 18,499,512.07 10.00%
2 to 3 years 44,545,881.92 13,363,764.58 30.00%
3 to 4 years 15,885,081.03 7,942,540.52 50.00%
4 to 5 years 5,954,331.10 4,763,464.88 80.00%
5 years or above 20,607,315.06 20,607,315.06 100.00%
Total 981,581,600.29 100,656,290.63
Please refer to the disclosing methods of other receivables for the information disclosure of bad debts provisions, if the
bad debt provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable Not applicable
Disclosure by age
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 4,298,890,989.61
1 to 2 years 298,849,964.56
2 to 3 years 88,215,786.17
3 years or above 59,590,514.17
3 to 4 years 24,154,348.17
4 to 5 years 14,034,331.10
5 years or above 21,401,834.90
Total 4,745,547,254.51
(2) Provision for bad debts accrued, recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
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2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
balance Accrued Written Off Others balance
Reversed
Bad debt 124,815,790.0 136,394,667.5
11,675,271.36 96,393.85
provision 4 5
124,815,790.0 136,394,667.5
Total 11,675,271.36 96,393.85
4 5
(3) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Accounts receivable actually written off 96,393.85
(4) Accounts receivable of the top five closing balances collected by debtors
The aggregate amount of the top five accounts receivable collected by the debtor at the end of the period is RMB
3,688,658,057.93, accounting for 77.73% of the total accounts receivable at the end of the period, with the aggregate
amount of the corresponding provision for bad debts at the end of the period of RMB 8,304,848.23.
(5) Accounts receivable derecognized due to the transfer of financial assets
There are no accounts receivable derecognized due to the transfer of financial assets.
(6) Assets and liabilities generated due to transferred receivables that the Company still keeps
recourse or retains part of corresponding rights or interests
The amount of assets that the
The amount of liabilities that the
Company still keeps recourse
Company still keeps recourse or
Item or retains part of
retains part of corresponding rights
corresponding rights or
or interests
interests
Supply chain finance not derecognized 6,699,052.29 6,699,052.29
Total 6,699,052.29 6,699,052.29
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other Receivables 14,149,824,916.45 13,227,344,584.64
Total 14,149,824,916.45 13,227,344,584.64
(1) Other receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
207
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Nature of the funds Closing balance Opening balance
Deposits 45,798,173.61 43,647,007.12
Prepaid or advance expense 37,078,754.33 35,796,731.49
Equity Transfer Fund 228,000,000.00 228,000,000.00
Employee home loan 85,233,750.00 85,353,302.20
Incomings and outgoings 13,803,637,868.26 12,878,290,499.25
Others 428,370.19 8,043,517.60
Total 14,200,176,916.39 13,279,131,057.66
2) Provision for bad debts
Unit: RMB
Phase One Phase Two Phase Three
Expected credit Expected credit
Bad debt provision Expected credit Total
losses for the entire losses for the entire
losses in the next 12
extension (without extension (with credit
months
credit impairment) impairment)
Balance on January
46,606,805.15 4,544,002.82 635,665.05 51,786,473.02
1, 2021
Balance in the
Current Period on
January 1, 2022
--Transfer to phase
-482,024.32 482,024.32
two
--Transfer to phase
-1,500.05 1,500.05
three
Provisions of this
729,585.95 43,525.57 773,111.52
period
Reversals in this
2,158,919.60 2,158,919.60
period
Write off in this
48,665.00 48,665.00
period
Balance as at June
43,965,861.23 5,754,113.04 632,025.67 50,351,999.94
30, 2022
Book balance changes with significant changes in loss provision in the current period
□ Applicable Not applicable
Disclosure by age
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 13,288,912,195.87
1 to 2 years 571,470,809.68
2 to 3 years 115,144,495.06
3 years or above 224,649,415.78
3 to 4 years 214,969,684.31
4 to 5 years 7,441,759.58
5 years or above 2,237,971.89
Total 14,200,176,916.39
208
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
3) Provision for bad debts accrued, recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Category Opening balance Recovered or Closing balance
Accrued Written Off Others
Reversed
Bad debt
51,786,473.02 773,111.52 2,158,919.60 48,665.00 50,351,999.94
provision
Total 51,786,473.02 773,111.52 2,158,919.60 48,665.00 50,351,999.94
4) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Other accounts receivable actually written off 48,665.00
5) Other receivables of the top five closing balances collected by debtors
Unit: RMB
Bad debt
As a percentage provision
Name of Nature of the of total other at the
Closing balance Aging
Unit funds receivables at the end of
end of the period the
period
The amount within 1 year is
RMB 9,374,459,803.45; the
amount in 1–2 years is RMB
Incomings
Company 17,303.25;
and 9,374,666,127.17 66.02%
1 the amount in 2-3 years is RMB
outgoings
189,009.46;
the amount in 3-4 years is RMB
11.01
Incomings
Company
and 1,642,240,287.14 Within 1 year 11.56%
2
outgoings
The amount Within 1 year is
RMB 1,523,740,895.41; the
Incomings
Company amount in 1-2 years is RMB
and 1,563,835,895.40 11.01%
3 5,901,013.50;
outgoings
the amount in 2-3 years is RMB
34,193,986.49
The amount within 1 year is
Incomings
Company RMB 455,215,256.22;
and 610,793,501.42 4.30%
4 the amount in 1-2 years is RMB
outgoings
155,578,245.20
The amount within 1 year is
Incomings
Company RMB 114,402,000.00;
and 169,733,971.00 1.20%
5 the amount in 1-2 years is RMB
outgoings
55,331,971.00
209
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Total 13,361,269,782.13 94.09%
6） Receivables involving government subsidies
There are no other accounts receivable related to government subsidies.
7) Other accounts receivable derecognised due to transfer of financial assets
There are no other accounts receivable derecognized due to the transfer of financial assets.
8) Assets and liabilities generated due to other transferred receivables that the Company still keeps recourse
or retains part of corresponding rights or interests
There are no assets and liabilities generated due to other transferred receivables that the Company still keeps
recourse or retains part of corresponding rights or interests.
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Impairme Impairme
Book balance nt Book value Book balance nt Book value
provision provision
Investment in 4,658,886,764 4,496,090,820
4,658,886,764.42 4,496,090,820.42
subsidiaries .42 .42
Investment in
592,519,800.2 798,402,086.3
affiliates and 592,519,800.24 798,402,086.36
4 6
joint ventures
5,251,406,564 5,294,492,906
Total 5,251,406,564.66 5,294,492,906.78
.66 .78
(1) Investment in subsidiaries
Unit: RMB
Decrease/Increase in the current period Closing
Opening Closing
The Provision balance of
balance balance
invested Investments Investment for provision for
(book Others (book
entity increased decreased impairment decline in
value) value)
accrued value
Zhejiang
Dahua
529,327,93 529,327,93
System
4.87 4.87
Engineering
Co., Ltd.
Zhejiang
Dahua
27,167,117. 74,940,000. 102,107,117
Security
78 00 .78
Network
Operation
210
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Service Co.,
Ltd.
Zhejiang
Dahua
5,100,000.0 5,100,000.0
Ju'an
0 0
Technology
Co., Ltd.
Guangxi
Dahua
6,125,103.4 6,125,103.4
Information
4 4
Technology
Co., Ltd.
Dahua
Technology 666,155,16 2,785,944.0 668,941,112
(HK) 8.00 0 .00
Limited
Zhejiang
Dahua
1,291,819,9 1,291,819,9
Vision
01.23 01.23
Technology
Co., Ltd.
Guangxi
Dahua
20,002,580. 20,002,580.
Security
76 76
Service Co.,
Ltd.
Hangzhou
Xiaohua 5,566,322.6 5,566,322.6
Technology 5 5
Co., Ltd.
Zhejiang
Dahua 1,000,878,6 1,000,878,6
Zhilian Co., 03.29 03.29
Ltd.
Zhejiang
Dahua
62,175,000. 62,175,000.
Investment
00 00
Manageme
nt Co., Ltd.
Guangxi
Dahua 71,222,114. 71,222,114.
Zhicheng 85 85
Co., Ltd.
Hangzhou
Huacheng
28,640,671. 28,640,671.
Network
21 21
Technology
Co., Ltd.
Zhejiang
HuaRay 30,924,317. 30,924,317.
Technology 09 09
Co., Ltd.
Hangzhou
Fuyang
5,100,000.0 5,100,000.0
Hua'ao
0 0
Technology
Co., Ltd.
211
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Zhejiang
Huafei
25,009,108. 25,009,108.
Intelligent
90 90
Technology
Co., Ltd.
Zhejiang
Huachuang
29,140,163. 29,140,163.
Vision
54 54
Technology
Co., Ltd.
Guizhou
Huayi
1,800,000.0 1,800,000.0
Shixin
0 0
Technology
Co., Ltd.
Zhejiang
Fengshi 9,005,362.2 9,005,362.2
Technology 9 9
Co., Ltd.
Dahua
Technology 8,102,000.0 8,102,000.0
Holdings 0 0
Limited
Zhejiang
Huaxiao 37,718,778. 37,718,778.
Technology 03 03
Co., Ltd.
Xi'an Dahua
Zhilian 100,143,63 100,143,63
Technology 1.14 1.14
Co., Ltd.
Wuxi Dahua
Ruipin 17,857,697. 17,857,697.
Technology 14 14
Co., Ltd.
Beijing
Huayue
Shangchen
g 10,487,121. 10,487,121.
Information 08 08
Technology
Service Co.,
Ltd.
Zhejiang
Dahua
60,000,000. 60,000,000.
Jinzhi
00 00
Technology
Co., Ltd.
Shanghai
Huashang
Chengyue
1,518,160.8 1,518,160.8
Information
6 6
Technology
Service Co.,
Ltd.
Sichuan 5,530,000.0 5,827,247.1
297,247.19
Dahua 0 9
212
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Guangxun
Photoelectri
c
Technology
Co., Ltd.
Zhejiang
Zhoushan
Digital
17,640,000. 17,640,000.
Developme
00 00
nt
Operation
Co. Ltd.
Guangxi
Dahua 30,000,000. 30,000,000.
Technology 00 00
Co., Ltd.
Yunnan
Zhili 4,500,000.0 4,500,000.0
Technology 0 0
Co., Ltd
Zhejiang
Dahua
25,603,273. 15,300,000. 40,903,273.
Storage
28 00 28
Technology
Co., Ltd.
Zhejiang
Huaruijie 51,198,299. 51,198,299.
Technology 94 94
Co., Ltd.
Chengdu
Dahua
Zhilian 50,035,193. 50,035,193.
Information 18 18
Technology
Co., Ltd.
Chengdu
Dahua
Zhian
100,000,00 100,000,00
Information
0.00 0.00
Technology
Service Co.,
Ltd.
Chengdu
Huishan
Smart 5,500,000.0 5,800,000.0
300,000.00
Network 0 0
Technology
Co., Ltd.
Zhejiang
Huajian 13,540,903. 9,000,000.0 22,540,903.
Technology 07 0 07
Co., Ltd.
Xinjiang
Dahua
Zhixin 2,055.08 2,055.08
Information
Technology
213
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Co., Ltd.
Guangxi
Huacheng
95,025.00 95,025.00
Technology
Co., Ltd.
Hangzhou
Huacheng
386,348.72 386,348.72
Software
Co., Ltd.
Dahua
Technology 72,864.00 72,864.00
Canada Inc.
Chengdu
Dahua
Zhishu
10,000,000. 10,000,000.
Information
00 00
Technology
Service Co.,
Ltd.
Zhengzhou
Dahua
Zhian 30,000,000. 30,000,000.
Information 00 00
Technology
Co., Ltd.
Dahua
Technology 1,000,000.0 1,000,000.0
Internationa 0 0
l Pte. Ltd.
Changsha
Dahua 100,000,00 100,000,00
Technology 0.00 0.00
Co., Ltd.
Zhejiang
Pixfra 51,000,000. 51,000,000.
Technology 00 00
Co., Ltd.
Zhejiang
Dahua
Intelligent
15,000,000. 15,000,000.
IoT
00 00
Operation
Service Co.,
Ltd.
4,496,090,8 168,623,19 5,827,247.1 4,658,886,7
Total
20.42 1.19 9 64.42
(2) Investment in affiliates and joint ventures
Unit: RMB
Openin Decrease/Increase in the current period Closin Closin
Name g Invest Adjust Cash Provisi g g
of balanc Invest Invest Other balanc
ment ment dividen on for balanc
Investe e ments ment chang e
profit on ds or impair Others e of
es (book increas decrea es in (book
and other profit ment provisi
value) ed sed equity value)
loss compr declar accrue on for
214
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
recogn ehensi ed to d decline
ized ve distribu in
under income te value
the
equity
metho
d
Ⅰ. Joint ventures
Ⅱ. Affiliates
Ruicity
Digital
70,394 - 66,726
Techno
,509.1 3,667, ,776.9
logy
5 732.18 7
Co.,
Ltd.
Zhejia
ng
Leapm -
643,07 10,945 444,78
otor 209,23
6,870. ,027.9 6,489.
Techno 5,408.
51 7 69
logy 79
Co.,
Ltd.
Shuzi
Dongy
ang
Techno -
2,205, 1,869,
logy 336,19
415.98 225.03
Operat 0.95
ion
Co.,
Ltd.
Hangz
hou
Juhua
nyan
Inform 723,49 723,49
ation 6.39 6.39
Techno
logy
Co.,
Ltd.
Zhejia
ng
Huanu
15,113 - 11,632
okang
,578.1 3,480, ,620.8
Techno
0 957.27 3
logy
Co.,
Ltd.
Ningbo
Huaya
n 62,135 - 62,017
Chuan ,559.9 117,67 ,884.0
gxi 3 5.90 3
Ventur
e
215
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Capital
Invest
ment
Partne
rship
(Limite
d
Partne
rship)
Dezho
u
Shuzhi
Inform
3,392, 9,456. 3,402,
ation
656.30 54 112.84
Techno
logy
Co.,
Ltd.
Sichua
n
Hengji
Anhua
Interne
1,360, 1,194. 1,361,
t of
000.00 46 194.46
Things
Techno
logy
Co.,
Ltd.
-
798,40 10,945 592,51
Subtot 216,82
2,086. ,027.9 9,800.
al 7,314.
36 7 24
09
-
798,40 10,945 592,51
216,82
Total 2,086. ,027.9 9,800.
7,314.
36 7 24
09
4. Operating income and operating cost
Unit: RMB
Amount Occurred in the Current Period Amount Occurred in the Previous Period
Item
Income Cost Income Cost
Main Business 3,850,652,856.67 435,118,265.70 4,149,060,053.90 513,023,110.70
Other businesses 15,400,691.14 10,228,851.81 18,099,876.19 13,149,498.58
Total 3,866,053,547.81 445,347,117.51 4,167,159,930.09 526,172,609.28
5. Investment income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
216
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Long-term equity investment income
-216,827,314.09 -171,271,964.55
measured by equity method
Investment income from disposal of
-4,330,000.00 281,454.95
long-term equity investment
Investment Income from Disposal
8,493,150.68
Trading Financial Assets
Gain on debt restructuring -170,120.71
Investment income on other non-
current financial assets during the 6,666,341.48 5,364,955.30
holding period
Investment income from national
515,701.75 169,645.79
debt reverse repurchase
Profits from recognition termination of
-4,150,055.55
financial assets
Total -218,295,447.12 -156,962,757.83
XVIII. Supplementary Information
1. Breakdown of non-recurring gains and losses for this period
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains and losses from disposal of non-current
2,288,425.59
assets
The government subsidies included in the current
profits and losses (excluding the government
subsidies closely related to regular businesses of
162,812,063.07
the Company, in line with national policies, and
consecutively received by a standard quota or
quantity)
Gains or losses from investment or asset
-10,104,926.15
management entrusted to others
Gains or losses from debt restructuring -411,312.80
Profits and losses resulting from the changes in fair
value for holding held-for-trading financial assets
and held-for-trading financial liabilities, and
investment income from disposal of held-for-trading
170,672,546.04
financial assets, held-for-trading financial liabilities,
and financial assets available for sale, excluding the
effective hedging businesses related to the regular
business operation of the Company
Non-Operating Revenue and expenses other than
610,811.31
the above
Other gains and losses items that fit the definition of
-299,697.90
non-recurring gains and losses
Less: Impact of income tax 46,366,666.73
Impact of minority equity 14,992,118.83
Total 264,209,123.60 --
217
2022 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Other gains or losses that fit the definition of non-recurring gains or losses:
□ Applicable Not applicable
The Company has no other gains or losses that fit the definition of non-recurring gains or losses.
Note for the definition of non-recurring gains and losses set out in the No. 1 Explanatory Announcement on Information
Disclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses, as recurring gains
and losses.
□ Applicable Not applicable
2. Return on net assets and earnings per share
Earnings per share
Profit for the reporting period Weighted Average ROE Basic Earnings per Share Diluted Earnings per
(RMB/Share) Share (RMB/Share)
Net profit attributable to common
6.27% 0.51 0.51
shareholders of the Company
Net profit attributable to common
shareholders of the Company
5.18% 0.42 0.42
after deducting non-recurring
gains and losses
3. Differences in accounting data between domestic and overseas accounting standards
(1) Differences in net profits and net assets in the financial reports disclosed pursuant to
international accounting standards and Chinese accounting standards
□ Applicable Not applicable
(2) Differences in net profits and net assets in the financial reports disclosed pursuant to
foreign accounting standards and Chinese accounting standards
□ Applicable Not applicable
(3) Reasons for accounting data differences under domestic and overseas accounting
standards. For difference adjustment on the data already audited by an overseas audit
institution, name of the audit institution should be noted.
□ Applicable Not applicable
Zhejiang Dahua Technology Co., Ltd.
Chairman: Fu Liquan
August 20, 2022
218
