2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Zhejiang Dahua Technology Co., Ltd.
2024 Semi-Annual Report
August 24, 2024
This document is a translated version of the Chinese 2024 Semi-Annual Report (“2024 年半年度报告全文 ”),
and the published semi-annual report in the Chinese version shall prevail.
The complete published Chinese 2024 Semi-Annual Report may be obtained at http://www.cninfo.com.cn.
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section I Important Notes, Contents and Definitions
The Board of Directors, Board of Supervisors, Directors, Supervisors and Senior
Management hereby guarantee that the information presented in this report are true, accurate,
and complete without 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
semiannual report.
During the reporting period, there was no significant change in the risks faced by the
Company. The Company has been trying to identify all kinds of risks and actively take counter-
measures to avoid and reduce the risks.
(1) Risk of technology upgrading: The smart IoT industry is a typical technology-intensive
industry, featuring extremely fast upgrading. If the Company is unable to keep up with
development trends of industrial technologies, to pay full attention to customers' diversifie d
needs, and to devote sufficient R&D investments, it may still face the risk of losing market
competitiveness due to discontinuous innovation. By increasing R & D investment, the
Company continues to strengthen research on such core technologies as multi-dimensional
perception, large model in AI, video cloud, big data, network communication, network security,
and machine vision, and reserves product, technology, management and talent resources for a
broader market in the future, so as to achieve sustainable and steady business development.
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(2) Risk of business model change: With the development of Internet of Things, AI, big
data, cloud computing, network communications, among other technologies, as well as the
upgrades of intelligent terminal applications, the business model in the IoT era may have an
impact on the traditional industry development. If an enterprise fails to grasp opportunitie s
brought about by the business model transformation in a timely manner, it may face the risk
that the original market pattern becomes broken. The Company continues to focus on and study
the major changes in global economy, industry and technology, analyze the industry
development logic, and predict the evolution of smart IoT industry, the continuous integration
of video, information communication and digital technologies, and the diversification and
uncertainty of customer demands. While consolidating its current advantageous market, the
Company is also actively exploring and piloting new businesses and new commercial modes,
with business and technical layout.
(3) Risk of declined local fiscal payment capacity: At present, local fiscal debt is relatively
high. If the local fiscal payment capacity declines, it may slow down the growth of industry
demands, prolong the construction period of projects, extend the collection of capital, and delay
customers' payment. The Company continues to improve the internal control system and
optimize the project review methods, select local projects carefully and assess project risks
systematically with prudent assessment of the market logic and cash flow balance logic, and
reasonable control of risks. In addition, it formulates plans to deal with potential risks such as
cash flow shortage, project delay, and payment delay.
(4) Risk of international operations: The Company's products and solutions are available
in more than 100 countries and regions overseas. As such, its international business operations
may be exposed to risks of regional trade protection, political conflicts in local regions,
increasingly complex law compliance requirements and continuous global growth slowdown in
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
the countries and regions where it operates. The Company actively guards against and responds
to risks of international operations 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.
(5) Exchange rate risk: The Company's export transactions have been mostly settled in
U.S. dollars. As our overseas business is in continuous growth, the fluctuation of exchange rate
may affect our profitability. The Company hedges and avoids exchange rate risks by centralized
management of foreign exchange funds and hedging of purchase payments in line with its main
use of U.S. dollars as the settlement currency.
(6) Risk of product safety: The Company attaches great importance to and continuously
strengthens resource investment to ensure safe and reliable system operations so as to respond
to 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 plans, ensuring product safety in the whole process from demands, design, to coding and
testing. At the same time, the Company actively carries out technical exchanges and cooperation
with mainstream safety enterprises, safety evaluation agencies and corresponding industry
associations to provide customers with safe products and solutions.
(7) Intellectual property risk: The promotion of the Company's globalization strategy and
its own brand strategy may expose the Company to intellectual property rights risks and patent
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
infringement, as well as such risks as business relations, fluctuations in the public opinion
environment, increased legal proceedings and rising costs. With a high priority on technological
innovation, the Company has established a mechanism for the protection and management of
intangible assets such as innovation achievements, own brands and trade secrets, so as to
continuously gather advantageous intellectual property assets; with the establishment of an
intellectual property compliance and risk control system, the Company continuously
strengthens its ability to understand and master intellectual property laws and regulations as
well as the administrative and judicial environment in the regions where it operates.
(8) Supply chain security risk: The Company pays attention to suppliers' operational risks
and monitors suppliers' operations in real time by establishing an ope rational risk data
management platform to avoid potential risks; it promotes diversified supply sources to
guarantee supply delivery.
The profit distribution plan deliberated and approved by the Company’s board of
directors: Based on 3,272,527,089 shares after deducting the re-purchased shares (19,819,601
shares), the Company paid a cash dividend of RMB 1.84 (tax inclusive) every 10 shares to all
shareholders, and paid 0 bonus shares (tax inclusive), and did not convert capital reserve into
share capital.
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2024 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............................................................................ 12
Section III Management Discussion and Analysis ....................................................................................... 15
Section IV Corporate Governance ............................................................................................................ 37
Section V Environmental and Social Responsibilities.................................................................................. 40
Section VI Significant Events .................................................................................................................. 42
Section VII Changes in Shares and Information about Shareholders.............................................................. 60
Section VIII Information of Preferred Shares ............................................................................................. 68
Section IX Situation on Corporate Bonds .................................................................................................. 69
Section X Financial Report...................................................................................................................... 70
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Documents Available for Reference
i. Financial statements signed and sealed by the Company's person in charge, the chief accountant, and the person in charge of
accounting department (accounting officer).
ii. The original of all the Company's documents publicly disclosed during the reporting period and the original of the announcement.
iii. The said documents need to be prepared and placed at the Company's Securities Department for reference by investors.
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Definitions
Item of definition Refers To Definitions
Reporting Period Refers To From January 1, 2024 to June 30, 2024
Dahua, company, the company Refers To Zhejiang Dahua Technology Co., Ltd.
Dahua System Engineering,
Refers To Zhejiang Dahua System Engineering Co., Ltd.
System Engineering Company
Dahua Vision Technology Refers To Zhejiang Dahua Vision Technology Co., Ltd.
Dahua Security Network,
Refers To Zhejiang Dahua Security Network Operation Service Co., Ltd.
Operation Company
Dahua Ju'an Refers To Zhejiang Dahua Ju'an Technology Co., Ltd.
Guangxi Dahua Information Refers To Guangxi Dahua Information Technology Co., Ltd.
Guangxi Yunlian Refers To Guangxi Dahua Yunlian Information Technology 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
Refers To Guangxi Dahua Zhicheng Co., Ltd.
Zhicheng
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,
Refers To Tianjin Dahua Information Technology Co., Ltd.
Tianjin 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.
Huaruipin Refers To Jiangsu Huaruipin Technology Co. Ltd.
Beijing Huayue Refers To Beijing Huayue Shangcheng Information Technology Service Co., Ltd.
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Shanghai Huashang Refers To Shanghai Huashang Chengyue Information Technology Service Co., Ltd.
Dahua Jinzhi Refers To Zhejiang Dahua Jinzhi 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.
Huayixin Refers To Zhejiang Huayixin 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 Zhishu Refers To Chengdu Dahua Zhishu Information Technology Service Co., 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.
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.
Luoyang Zhiyu Refers To Luoyang Dahua Zhiyu Information Technology Co., Ltd.
Huaqi Intelligence Refers To Zhejiang Huaqi Intelligent Technology Co., Ltd.
Chengdu Information Refers To Chengdu Dahua Wisdom Information Technology Co., Ltd.
HJ Technology Refers To Zhejiang HJ Technology Co., Ltd.
Huaxiyue Refers To Guangdong Huaxiyue Intelligent Technology Co., Ltd.
Huajie Operation Refers To Zhejiang Huajie New Energy Operation Service Co., Ltd.
Shuhang Intelligent Refers To Zhejiang Shuhang Intelligent Technology Co., Ltd.
Qingdao Ruifa Refers To Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co., Ltd.
Shandong Digital Intelligence Refers To Shandong Dahua Digital Intelligence Technology Co., Ltd.
Fujian Qingchuang Refers To Fujian Dahua Qingchuang Digital Technology Co., Ltd.
Dahua Europe Refers To Dahua Europe B.V.
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
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
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 TECHNOLOGY BRASIL COMRCIO ESERVIOS 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 Sanayive 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 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 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
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Dahua Israel Refers To Dahua Technology Israel Ltd.
Dahua Mexico Service Refers To VISMEXTECH DHM SERVICIOS, S.A. DEC.V.
Huacheng Netherlands Refers To Imou Network Technology Netherlands B.V.
Dahua Japan Refers To Dahua Technology Japan LLC
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 ELETRNICA
Intelbras S.A. Refers To
BRASILEIRA
Dahua Saudi Arabia Refers To Dahua Technology Middle East for Maintenance Single Person 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
HuaRay Singapore Refers To HUARAY TECHNOLOGY SINGAPORE PTE. LTD.
Dahua Belgium Co. Refers To Dahua Technology Belgium BV
Dahua Saudi Arabia Co. Refers To Dahua Technology Regional Headquarters
Dahua Argentina Co. Refers To Dahua Technology Azerbaijan LLC
Dahua Vietnam Co., Ltd. Refers To Dahua Technology Vietnam Company Limited
HuaRay Korea Refers To HUARAY TECHNOLOGY KOREA COMPANY LIMITED
HuaRay Germany Refers To Huaray technology GmbH
Dahua Angola Refers To DAHUA EUROPE B.V - SUCURSAL EM ANGOLA
IMOU Teknologi Indonesia Refers To PT IMOU TEKNOLOGI INDONESIA
IMOU Indonesia Senantiasa Refers To PT IMOU INDONESIA SENANTIASA
Hirige MaLaysia Refers To Hirige Technology MaLaysia Sdn.Bhd.
Dahua Egypt Refers To Dahua Technology Egypt LLC
DAHUA TECHNOLOGY AUH FOR SECURITY & SURVEILLANCE –
DAHUA Abu Dhabi Refers To
SOLE PROPRIETORSHIP L.L.C.
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section II Company Profile and Key Financial Indicators
I. Company Overview
Stock Abbreviation DAHUA Stock Code 002236
Stock Exchange Shenzhen Stock Exchange
Company Name in Chinese Zhejiang Dahua Technology Co., Ltd.
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 Li Sirui
No. 1399 Bixing Road, Binjiang District, No. 1399 Bixing Road, Binjiang District,
Contact Address
Hangzhou City Hangzhou City
Phone 0571-28939522 0571-28939522
Fax 0571-28051737 0571-28051737
Email zqsw@dahuatech.com zqsw@dahuatech.com
III. Other Information
1.Company Contact Information
Whether the Company's registered address, the Company's office address and its postal code, the Company's website, e -mail address,
etc. have changed during the reporting period
□ Applicable Not applicable
There is no change in the Company's registered address, the Company's office address and its postal code, the Company's website, e -
mail address, etc. during the reporting period. Refer to the 2023 Annual Report for details.
2. Information Disclosure and Location
Whether the information disclosure and location have changed during the reporting period
□ Applicable Not applicable
There is no change in the name and website of the stock exchange and media outlets disclosed in the semi-annual report, or the location
of the semi-annual report. Refer to the 2023 Annual Report for details.
3. Other Related Information
Whether there is any change in other related information
□ Applicable Not applicable
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
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 ratio
Current reporting period Same period of last year compared with the same
period of last year
Operating revenue (RMB) 14,866,622,569.81 14,633,547,280.64 1.59%
Net profit attributable to
shareholders of the listed 1,809,589,445.46 1,976,018,373.13 -8.42%
Company (RMB)
Net profit attributable to
shareholders of the listed
company after deducting non- 1,762,237,469.53 1,754,769,829.96 0.43%
recurring gains and losses
(RMB)
Net cash flow generated by
-507,185,620.71 262,696,745.71 -293.07%
operational activities (RMB)
Basic Earnings per Share
0.56 0.63 -11.11%
(RMB/Share)
Diluted Earnings per Share
0.56 0.63 -11.11%
(RMB/Share)
Weighted Average ROE 5.10% 6.70% -1.60%
Increase/decrease ratio at the
end of the current reporting
End of this reporting period End of the last year
period compared with the end
of last year
Total assets (RMB) 50,209,775,852.19 52,881,927,214.00 -5.05%
Net assets attributable to
shareholders of the listed 35,406,684,602.41 34,719,173,825.42 1.98%
company (RMB)
V. Differences in accounting data Under domestic and overseas accounting standards
(1) Differences of net profits and net assets in the financial reports disclosed according to the international
accounting standards and Chinese accounting standards
□ Applicable Not applicable
During the reporting period of the Company, there is no difference between the net profits and net assets in the financial reports
disclosed according to international accounting standards and Chinese accounting standards.
(2) Differences between the net profits and net assets 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 re ports
disclosed according to overseas accounting standards and Chinese accounting standards.
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
VI. Non-recurring Gains and Losses Items and Their Amounts
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Profits or losses from disposal of non-current assets
104,889,898.73
(including the 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 of the Company, in line with national 81,469,680.71
policies, entitled to according to the established standard, and
continuously impacting the Company’s profits and losses)
Profits and losses resulting from the changes in fair value for
financial assets and financial liabilities held by non-financial
enterprises, and from disposal of financial assets and -45,494,542.45
liabilities, excluding the effective hedging businesses related
to the regular business operation of the Company
Gains or losses from investment or asset management
-95,376,430.24
entrusted to others
Reversal of the receivables depreciation reserves for separate
2,567,783.80
impairment test
Profits and losses on debt restructuring -70,000.00
Non-Operating Revenue and expenses other than the above 3,993,096.01
Other gains and losses items that fit the definition of non-
-1,833,839.60
recurring gains and losses
Less: Impact of income tax -8,443,918.44
Impact of minority equity (after tax) 11,237,589.47
Total 47,351,975.93
Other gains or losses that fit the definition of non-recurring gains or losses:
□ Applicable Not applicable
The Company has no other gains or losses that fit the definition of non-recurring gains or losses.
Note for the definition of non-recurring gains and losses listed in the No. 1 Explanatory Announcement on Information Disclosure for
Companies Issuance Their Securities to the Public - Non-recurring gains and losses, as recurring gains and losses.
□ Applicable Not applicable
The Company did not define any non-recurring gains and losses listed in the No. 1 Explanatory Announcement on Information
Disclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses as recurring gains and losses.
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section III Management Discussion and Analysis
I. Main Businesses of the Company during the Reporting Period
There is no major change in the Company's main businesses during the reporting period. Refer to the 2023 Annual
Report for details.
II. Core Competitiveness Analysis
There is no major change in areas of core competitiveness during the reporting period. Refer to the 2023 Annual
Report for details.
III. Main Business Analysis
In the first half of 2024, the global economy recovered slowly, the turmoil in local regions continued, the
international situation faced more uncertainty; China continues to promote Chinese-style modernization, the
establishment of the overall layout of a digital China and the overall development of the new quality productive
forces in various sectors. In that case, thousands of industries ushered in the opportunity of digital intelligent
transformation, and the business environment sustains long-term good prospects. At the same time, a new round of
scientific and technological revolution and industrial transformation is booming, and the accelerated innovation of
AI, big model, Internet of Things, digital twin and other technologies drives continuous landing of new products
and new scenes and further release of the potential of smart IoT industry.
In this context, the Company adheres to the general tone of seeking progress while maintaining stability and
promoting high-quality development, focuses on the central work of promoting growth, strengthening ecology,
increasing competition and improving personnel efficiency, and takes the initiative to promote the Company's high-
quality development. In terms of research and development, the Company develops its business in such fields as
multi-dimensional perception, intelligent computing, and data communication, polishes large model prototype
points and promotes their replication and implementation, and continuously launches new products such as Xeon,
Luban, Honghu, Sky Series and Nightvision King 2.0 to create extremely competitive software and hardware
products. In the domestic market, the Company continues to deepen the channel business in the distribution field,
keeps penetrating the secondary and tertiary markets vertically and expands special channels horizontally, to provide
a richer category of special products and controls the quality of the distribution business; in the urban business field,
domestic fiscal operation is facing phased pressure. The release of government demand is slow. On the basis of
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
refined operation and maintenance of existing customers, the Company increases resource investment in systematic
opportunity points; in the enterprise business field, the operation is generally stable. The Company, by focusing on
the digital and intelligent transformation of enterprises, delves deep into core businesses, accelerates the research
and development of new digital and intelligent products, and actively contributes to the improvement of enterprise
productive force. In overseas markets, the Company continues to deepen the construction of the distribution systems,
comprehensively promotes grid coverage, explores operations for third-tier customers, accelerates the layout of new
business pipelines, and maintains sustained business growth; at the same time, it optimizes and polishes the plan,
and realizes the creation of prototypes for precise promotion and rapid and effective replication in smart cities, urban
transportation, education and energy. In innovative business, based on the smart IoT filed the Company continues
to expand its business boundaries for integration and complementation with the Group's main business, and it
continues to carry out technological innovation to maintain good business growth. In supply chain and delivery, the
Company focus on customer experience in delivery and continuously improves its digital delivery capability. It also
accelerates the construction of overseas supply centers, continuously improves its overseas delivery capability and
enhances its global core competitiveness.
During the reporting period, under the influence of many factors at home and abroad, the Company still adhered
to the business philosophy of refined management and high-quality development, achieving operating income of
RMB 14.867 billion, an increase of 1.59% over the same period last year; after deducting non-recurring gains and
losses, the Company achieved RMB 1.762 billion of net profit attributable to shareholders of the listed company,
an increase of 0.43% year-on-year.
1. Moving to business growth from stable development and adhering to high-quality development
The Company adheres to high-quality development, promotes growth, ecology and human efficiency, and
emphasizes customer first, and pursues commercial success and customer development; sustains ecological
development, builds a new ecosystem of co-construction, coexistence and win-win situation, and endeavors to create
unique and differentiated value for its partners and achieve common growth; improves the management efficiency,
the human efficiency and the organization effectiveness; adheres to balanced business development, and lays a solid
foundation for sustainable high-quality development to meet customers’ needs better. The Company actively
assumes greater social responsibility in ESG, low-carbon, rural revitalization, social poverty alleviation and relief,
and technology for equality and good, and fulfills the mission of "enabling a smarter living and a safer society".
2. Keeping precision investment in research and development, and deepening "five full" capabilities
16
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
The Company will adhere to the core of technological innovation, maintain large-scale investment in research
and development, and deepen the "five full" capabilities. In addition to maintaining investment in traditional video
technology, the Company will continue to strengthen research, development and productization in technical fields
such as multi-dimensional perception, large models in AI, data intelligence, intelligent computing, cloud computing,
software platforms, network communications, network security, and innovative businesses to deepen the "five full"
capabilities, focus on value business scenarios, and build leading solutions, products and technology systems in the
industry.
3. Improving software management capabilities and deepening the data industry chain
The Company focuses on the process of valuing data elements and actively plays the role of data resource
provider, data assetization practitioner and data commercialization enabler from multi-dimensional perception,
multiple connections, view intelligence, and open platforms. It works together with partners, overcome difficulties
and leverages the "multiplier effect" of data elements to empower efficient urban governance and digital and
intelligent upgrades of enterprises. The Company upgrades the digital and intelligent platform of IoT, consolidates
the graph-digit fusion computing system, and builds a one-stop digital and intelligent engine, breaking the
computing barriers between view data and business data, realizing multi-dimensional feature mining and multi-
modal relationship establishment, and empowering efficient urban governance and digital and intelligent enterprises.
Relying on its software engineering capabilities, the Company can quickly load the CV big model and graph-digit
fusion technology in the industry scenario module, freely orchestrate and construct rich industry applications, and
amplify the value of the innovative business in the flow of the value chain of the cities, enterprise and industries.
Based on the developer platform, Dahua Public Cloud provides rich SaaS services for various industries, including
Dahua CloudView, Dahua CloudLink, DoLynk and other public cloud products, and provides enterprises with a
brand-new operation mode, upgrading to “data+intelligence” from manual, and empowering enterprises to
transform their digital and intelligent management.
4. Hand in hand with partners to grow together and create a ecological environment of co-construction,
symbiosis and win-win situation
Facing the unprecedented opportunities of digital economy development, the Company will continue to explore
and practice with ecological partners, and strive to build a comprehensive altruistic service platform integrating
technology, products, solutions, operations, services and management consulting services to help partners keep
innovating and developing. In China, the Company speeds up front-line business response through city-based
business penetration, capability penetration of training empowerment and special support, hierarchical management,
17
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
business authority penetration, and management decision-making penetration; in overseas distribution penetration,
it makes the customers hierarchical and classified, carries out precise investment and marketing and strengthens
brand coverage; in integrator penetration, it focuses on key markets and key customers, and strengthens the
penetration support system. The Company and its partners will, in line with the concept of "Employee+Partner",
continue to implement the integration and development of "New Opportunity, New Idea, New Order, New Mode,
New Management, New Goal, New Responsibility", adhere to the altruistic thinking, strengthen the ecology, and
comprehensively support the development of high-quality business.
5. Promoting the development of innovative business and expanding new high-speed growth points
In the innovative business, the Company, based on its in-depth understanding of customers' diversified needs
and years of experience in intelligent IoT, continues to explore emerging businesses, including: innovative
businesses such as machine vision and mobile robot, smart life, thermal imaging, automotive electronics, smart
security check, smart fire fighting, and storage media, to continuously expand new high-speed growth points.
YoY rates in key financial indicators
Unit: RMB
Year-on-year
Current reporting Same period of last
increase or Reasons for changes
period year
decrease
Operating revenue 14,866,622,569.81 14,633,547,280.64 1.59% No major changes
Operating Cost 8,731,425,638.53 8,363,987,899.64 4.39% No major changes
Sales Expenses 2,268,236,496.11 2,190,619,243.64 3.54% No major changes
Administration
511,481,522.31 574,719,904.27 -11.00% No major changes
expenses
Mainly due to decrease in
exchange earnings from last year
Financial expenses -249,811,638.73 -420,452,697.53 40.59%
arising from exchange rate
fluctuations
Mainly due to increase of tax
Income tax expense -33,838,461.10 201,745,311.54 -116.77% rebates compared with the same
period of the previous year
R&D investment 1,901,330,160.90 1,814,620,715.06 4.78% No major changes
Mainly due to increase of taxes
Net cash flow
and payroll payment in the
generated by operating -507,185,620.71 262,696,745.71 -293.07%
current period over the same
activities
period of last year
Net amount of cash Mainly due to the large-
flow generated by -3,738,735,276.02 -171,498,326.33 -2,080.04% denomination certificates of
investment activities deposit purchased from banks
Mainly due to an increase in the
Net cash flow
funds raised in the same period of
generated by financing -2,231,053,114.28 3,782,792,161.14 -158.98%
last year and the dividend paid
activities
this year over the same period of
18
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
last year
Mainly due to the funds raised in
the same period of last year and
Net Increase in Cash
-6,386,639,986.44 3,919,584,443.18 -262.94% the large-denomination
and Cash Equivalents
certificates of deposit purchased
from banks this year
There are major changes in the composition or sources of profit of the Company in the current period
□ Applicable Not applicable
There is no major change in the composition or sources of profit of the Company in the current period
Composition of operating revenue
Unit: RMB
Current reporting period Same period of last year
Year-on-year
Proportion in Proportion in increase or
Amount Operating Amount Operating decrease
Revenue Revenue
Total Revenue 14,866,622,569.81 100% 14,633,547,280.64 100% 1.59%
By Industry
Smart IoT Industry 14,866,622,569.81 100.00% 14,633,547,280.64 100.00% 1.59%
By Product
Smart IoT
Products and 12,028,870,893.80 80.92% 12,161,117,387.94 83.10% -1.09%
Solutions
Including: 758,033,553.36 5.10% 0.09%
757,373,050.95 5.18%
Software business
Innovative 2,461,115,617.88 16.55% 8.95%
2,258,998,031.19 15.44%
Business (Note)
Others 376,636,058.13 2.53% 213,431,861.51 1.46% 76.47%
By region
Domestic 7,381,482,622.15 49.65% 7,771,201,571.54 53.11% -5.01%
Overseas 7,485,139,947.66 50.35% 6,862,345,709.10 46.89% 9.08%
Domestic Sub-business Segment
Unit: RMB
Current reporting period Same period of last year Year-on-year
Proportion in Domestic Proportion in Domestic increase or
Amount Amount
Operating Revenue Operating Revenue decrease
To G 1,768,114,465.94 23.95% 2,081,937,638.79 26.79% -15.07%
To B 3,900,695,525.76 52.85% 3,858,049,784.38 49.65% 1.11%
Others 1,712,672,630.45 23.20% 1,831,214,148.37 23.56% -6.47%
Total 7,381,482,622.15 100.00% 7,771,201,571.54 100.00% -5.01%
Note: Innovative business mainly includes machine vision and mobile robots, smart living, thermal imaging, automotive electronics,
smart security inspection, smart fire control and storage medium, and other relevant businesses; the same as below.
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 and Increase or
decrease of decrease of decrease of
Gross
Operating revenue Operating Cost operating operating cost gross profit
margin
revenue over the same compared
compared with period of last with the
19
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
the same period year same period
of last year of last year
By Industry
Smart IoT
14,866,622,569.81 8,731,425,638.53 41.27% 1.59% 4.39% -1.57%
Industry
By Product
Smart IoT
Products and 12,028,870,893.80 6,806,823,631.23 43.41% -1.09% 1.20% -1.28%
Solutions
Including:
758,033,553.36 252,248,321.27 66.72% 0.09% 4.59% -1.44%
Software business
Innovated
2,461,115,617.88 1,600,810,667.52 34.96% 8.95% 9.15% -0.12%
Businesses
By region
Domestic 7,381,482,622.15 4,712,943,582.38 36.15% -5.01% -0.79% -2.72%
Overseas 7,485,139,947.66 4,018,482,056.15 46.31% 9.08% 11.21% -1.03%
Domestic Sub-
business Segment
To G 1,768,114,465.94 993,876,072.19 43.79% -15.07% -13.01% -1.33%
To B 3,900,695,525.76 2,403,039,386.19 38.39% 1.11% 5.21% -2.41%
Others 1,712,672,630.45 1,316,028,124.00 23.16% -6.47% -0.60% -4.54%
When the statistical caliber of the company's main business data is adjusted in the reporting period, the company's main business data
should be subject to the one after the statistical caliber at the end of the reporting period is adjusted in the most recent reporting period.
□ 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
End of this reporting period End of the previous year
Proportion
Proporti Proporti increase Statement on Significant
on To on To and Changes
Amount Amount
Total Total decrease
Assets Assets
Mainly due to the large-
denomination certificates of
Cash and Bank
9,597,623,116.53 19.12% 15,971,005,114.47 30.20% -11.08% deposit purchased from
Balances
banks in the current period
and the repayment of debts
Accounts
16,654,352,735.18 33.17% 16,276,803,954.03 30.78% 2.39% No major changes.
receivable
Contract Assets 114,529,987.89 0.23% 86,714,216.34 0.16% 0.07% No major changes.
Inventory 5,711,951,831.83 11.38% 5,332,608,544.02 10.08% 1.30% No major changes.
Investment
141,845,947.97 0.28% 129,637,004.00 0.25% 0.03% No major changes.
Property
Long-term 731,631,231.34 1.46% 727,453,629.75 1.38% 0.08% No major changes.
20
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Equity
Investment
Fixed Assets 4,988,539,382.64 9.94% 4,937,180,876.88 9.34% 0.60% No major changes.
Projects under
1,169,264,949.25 2.33% 1,008,612,408.49 1.91% 0.42% No major changes.
Construction
Right-of-use
276,133,848.74 0.55% 299,202,586.56 0.57% -0.02% No major changes.
assets
Short-term loan 800,973,205.56 1.60% 957,426,330.18 1.81% -0.21% No major changes.
Contract
1,019,804,820.76 2.03% 1,194,534,307.04 2.26% -0.23% No major changes.
liabilities
Lease liabilities 137,671,323.55 0.27% 176,580,049.57 0.33% -0.06% No major changes.
Mainly due to the large-
Other Non- denomination certificates of
3,869,620,772.33 7.71% 210,809,264.49 0.40% 7.31%
Current assets deposit purchased from
banks
2. Major overseas assets
□ Applicable Not applicable
3. Assets and liabilities measured at fair value
Applicable □ Not applicable
Unit: RMB
Changes in Impair
At the Sales
fair value Cumulative ment Purchase At the end
beginning amount of
gains and fair value loss of amount of the Other of the
Item of the the
losses in changes in the reporting variations reporting
reporting reporting
the current equity reportin period period
period period
period g period
Financial
Assets
1. Trading
financial
assets -
3,098,786.1 426,978,60 369,806,68
(derivative 61,907,020. 7,833,886.24
7 0.00 0.00
financial 07
assets
excluded)
2.
Derivative
384,471.06 384,471.06
Financial
Assets
3. Other
Non- - -
1,535,742,3 1,008,428,0
current 100,305,12 427,009,17
85.71 84.96
Financial 1.85 8.90
Assets
4. -
810,713,26 685,382,77
Receivable 125,330,48
7.86 9.93
s Financing 7.93
21
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
-
1,470,000.0
5. Others 1,470,000.0
0
0
Financial - -
2,347,925,6 3,098,786.1 2,064,002,0
assets 161,827,67 7,833,886.24 126,831,06
53.57 7 15.95
subtotal 0.86 6.83
Total of - -
2,347,925,6 3,098,786.1 2,064,002,0
above 161,827,67 7,833,886.24 126,831,06
53.57 7 15.95
items 0.86 6.83
-
Financial 2,980,967.7 1,196,685.7
61,400.12 1,845,682.1
liabilities 9 9
2
Other variations
Changes in trading financial assets (derivative financial assets excluded) and other non-current financial assets, and other main changes
in reclassification of financial assets;
The receivables financing and other changes are the amount occurred in the current period.
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, 2024, restricted assets of the Company are as follows:
Item Closing balance (RMB) Cause of restrictions
Guarantee letter security deposit and
Cash and Bank Balances 90,019,255.68
other restricted funds
Pledge used to issue bank acceptance
Notes receivable and receivables
921,040,587.49 bills and endorsed or discounted notes
financing
not derecognised
Financial discount and factoring not
Accounts receivable 973,205.56
derecognised in the supply chain
Total 1,012,033,048.73
VI. Investment Analysis
1. Overview
Applicable □ Not applicable
Investment in the Reporting Period Investment for the same Period of Last
Rate of Change
(RMB) Year
93,948,173.50 2,707,295,505.00 -96.53%
2. Significant equity investments acquired during the reporting period
□ Applicable Not applicable
3. Major non-equity investments underway during the reporting period
Applicable □ Not applicable
For details, refer to “5. Utilization of raised funds”
22
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
4. Financial assets investment
(1). Securities investment
Applicable □ Not applicable
Unit: RMB
Chang
es in
Purch Profit
fair Cumu Sales
Accou Openi ase s and Book
Abbre value lative amou
Variet Code Initial nting ng amou Losse Value Accou Capita
viatio gains fair nt of
y of of Invest Meas Balan nt of s in at the nting l
n of and value the
Securi Securi ment ureme ce on the the End Accou Sourc
Securi losses chang report
ties ties Cost nt Book report Repor of the nts e
ties in the es in ing
Model Value ing ting Period
curren equity period
period Period
t
period
Dome
stic Fair Tradi
- -
and SMA 103,3 value 426,9 7,833, 3,098, 369,8 ng Equit
68821 61,90 52,73
Overs RTSE 17,00 measu 78,60 886.2 786.1 06,68 Finan y
3 7,020. 8,820.
eas NS 0.00 remen 0.00 4 7 0.00 cial Fund
07 34
Stock t Assets
s
- -
103,3 426,9 7,833, 3,098, 369,8
61,90 52,73
Total 17,00 -- 78,60 886.2 786.1 06,68 -- --
7,020. 8,820.
0.00 0.00 4 7 0.00
07 34
(2). Derivatives investment
Applicable □ Not applicable
1) Derivatives investments for hedging purposes during the reporting period
Applicable □ Not applicable
Unit: RMB ten thousand
Proportion
of
investment
Changes in
Amount Amount amount in
fair value Cumulative
Types of Initial purchased sold during the
Opening gains and fair value Closing
derivatives investment during the the company’s
balance losses in changes in balance
investment amount reporting reporting net assets
the current equity
period period at end of
period
the
reporting
period
Foreign
exchange 29,838.25 44.59 527,860.53 553,748.78 3,950.00 0.11%
contract
Total 29,838.25 44.59 527,860.53 553,748.78 3,950.00 0.11%
23
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
The Company calculated and presented its foreign exchange derivatives trading business in
Explanation of whether accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and
the Company’s hedging Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 37 -
business accounting Presentation of Financial Instruments and other relevant provisions. Held-for-trading financial
policies and specific assets/held-for-trading financial liabilities were adopted for initial and subsequent measurements of
accounting principles have the foreign exchange contracts. The fair values of the foreign exchange contracts were basically
changed significantly determined by referencing the different parameters of the financial institutions based on the then
during the reporting market conditions as well as the remaining term and duration of transaction, so as to be recognized
period compared with the as the held-for-trading financial assets or held-for-trading financial liabilities. There was no
previous reporting period significant change in the fair values of the foreign exchange contracts compared with that in the
previous reporting period.
Description of actual
profit and loss during the The actual revenue amounted to RMB 10,293,900 during the reporting period.
reporting period
The Company carried out foreign exchange hedging business appropriately as the case may be,
Descriptions of the effect
which could effectively reduce the risks in foreign exchange market and avoid exchange rate
of hedging
fluctuation risks.
Sources of funds for
Equity Fund
derivatives investment
Risk analysis and
description of control
measures for derivatives
positions during the
For details of risk analysis and control measures, please refer to the "Announcement on Conducting
reporting period
Foreign Exchange Hedging Transactions" (Announcement No. 2024-023), which was disclosed by
(including but not limited
the Company on April 16, 2024.
to market risk, liquidity
risk, credit risk,
operational risk, legal risk,
etc.)
Changes in market prices
or product fair value of
The Company recognized and measured its foreign exchange hedging business in accordance with
invested derivatives
Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
during the reporting
Instruments, Accounting Standards for Business Enterprises No. 37 - Presentation of Financial
period, and the analysis of
Instruments and other relevant provisions. The fair values of foreign exchange forward contracts
the fair value of
were basically measured and recognized by referencing the different parameters of the financial
derivatives should disclose
institutions based on the then market conditions as well as the remaining term and duration of the
the specific methods used
transaction. The profit from fair value change of foreign exchange contracts was RMB 445,900
and the setting of related
during the reporting period.
assumptions and
parameters.
Litigation involved (if
None
applicable)
Disclosure date of board
of directors'
announcement on the April 16, 2024
approval of derivatives
investment (if any)
2) Derivatives investments for speculative purposes during the reporting period
□ Applicable Not applicable
The Company had no derivatives investments for speculative purposes during the reporting period.
24
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
5. Utilization of raised funds
Applicable □ Not applicable
(1) Utilization of raised funds
Applicable □ Not applicable
Unit: RMB ten thousand
Percent
age of
Aggreg
the
ate
Amoun aggrega Amoun
Aggreg amount
The t of te t of
ate of
amount funds amount Purpose funds
amount funds Amoun
Total of raised of and use raised
of raised t of
Year of Way of amount Net funds in the funds of the put
funds as of funds
fund- fund- of funds raised current raised funds aside
raised the raised
raising raising funds raised used in period as of raised for
used as current not yet
raised the that the not yet more
of the period used
current were current used than
current that
period repurpo period two
period were
sed that years
repurpo
were
sed
repurpo
sed
Non-
public 5.92% Deposit
509,999 508,983 38,665. 388,358 30,191. 30,191. 128,251
2023 offering (Note ed in 0
.92 .26 41 .13 75 75 .86
of 1) banks
shares
5.92%
509,999 508,983 38,665. 388,358 30,191. 30,191. 128,251
Total -- (Note -- 0
.92 .26 41 .13 75 75 .86
1)
Notes on utilization of raised funds
1. According to the “Reply on Approving the Non-public Issuance of Shares by Zhejiang Dahua Technology Co., Ltd.” (Zheng
Jian License [2022] No. 853) released by CSRC, the Company issued 293,103,400 shares to specific parties at an issue price of
RMB 17.40 per share. The total amount of funds raised in this offering is RMB 5,099,999,160.00 and after deducting RMB
10,166,575.28 (excluding VAT), the cost associated with issuance, the actual net amount of funds raised is RMB
5,089,832,584.72, which has been verified by BDO China Shu Lun Pan CPAs (special general partnership) in the Capital
Verification Report (Lixin Accounting Report [2023] No. ZF10231).
2. The Company has used a total of RMB 3,883,581,300, the special account of the raised funds has received RMB 76,267,300 of
net interest income, and as of June 30, 2024, the balance of unused raised funds was RMB 1,282,518,600.
Note 1: Percentage of the aggregate amount of funds raised cumulative change in purpose was calculated based on the total amount
of the fund raised.
(2) Projects with pledged investments using raised funds
Applicable □ Not applicable
Unit: RMB ten thousand
Projects Whether Total Total Amount Cumulat Investme The date Benefits Whether Whether
with the pledged adjusted Invested ive nt the realized expected there are
pledged projects investme investme in the investme progress project during benefits major
25
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
investme have nts using nts (1) Current nts as of as of the reaches the have changes
nts and been raised Reportin the end end of its reporting been in
investme changed funds g Period of reporting intended period achieved project
nt (includin reporting period usable feasibilit
direction g partial period (3)=(2)/( status y
s of changes) (2) 1)
excess
funds
due to
oversubs
cription
Projects with pledged investments
Project
of Smart
IoT
Solution 92,990.0 92,990.0 92,990.0
No 100.00% 2023 2,304.99 N/A No
R&D 0 0 0
and
Industria
lization
The
phase II
construct
ion
project
of the 77,580.0 77,580.0 77,206.4
No 2,926.55 99.52% 2024 2,126.75 N/A No
smart 0 0 3
manufac
turing
base in
Hangzho
u
Artificial
intellige
nce
technolo
gy
research
50,975.8
and 88,960.0 119,151. 26,233.9
Yes 7 (Note 42.78% 2026 N/A N/A No
develop 0 75 5
2)
ment
and
applicati
on
research
project
5G, IoT
and
multi-
dimensio
nal 17,073.8
100,470. 70,278.2
percepti Yes 9,504.90 4 (Note 24.29% 2026 N/A N/A No
00 5
on 2)
products
and
solutions
R&D
26
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
project
Replenis
hment of 148,983. 148,983. 150,111. 100.76%
No N/A N/A N/A No
working 26 26 99 (Note 3)
capital
Subtotal
s for
projects 38,665.4 388,358.
508,983. 508,983.
with -- 1 (Note 13 (Note -- -- 4,431.74 -- --
26 26
pledged 1) 2)
investme
nts
Investment directions of excess funds due to oversubscription
N/A
38,665.4 388,358.
508,983. 508,983.
Total -- 1 (Note 13 (Note -- -- 4,431.74 -- --
26 26
1) 2)
Explain the circumstances and
reasons for failing to achieve the
Due to the uneven benefits of smart IoT solution R&D and industrialization projects as
planned progress and expected
well as the phase II construction project of the smart manufacturing base in Hangzhou
benefits for each project (including
around the year, whether the expected benefits can be achieved will be measured after an
the reasons for selecting "Not
entire year.
applicable" for "Whether expected
benefits have been achieved")
Notes on major changes in project
N/A
feasibility
The amount, purpose and progress of
the use of the excess funds due to N/A
oversubscription
Changes of the implementation Applicable
location of the projects using raised Such cases happened during the reporting period
funds See (3) Change of projects that use raised funds for details.
Changes of the implementation Applicable
method of the projects using raised Such cases happened during the reporting period
funds See (3) Change of projects that use raised funds for details.
Advance investments and
replacements of raised funds in N/A
projects
Temporary replenishment of working
N/A
capital with idle raised funds
The amount and reasons for the
balance of funds raised in the N/A
implementation of the project
The intended use and disposal of the The unused funds raised (including interest income from the account of the funds raised)
unused funds raised are deposited in the Company's special account for the funds raised.
On February 1, 2024, the Company completed the replacement of the fund raised with its
own funds, with a total replacement amount of RMB 4,038,822,000, of which the
replacement amount of the “artificial intelligence technology research and development
Problems or other circumstances in and application research project” was RMB 344,863,300 (including RMB 7,839,200 of
the use and disclosure of the funds interest), and that of the “5G, Internet of Things and multi-dimensional perception
raised products and solutions R&D project” was RMB 59,018,700 (including RMB 1,354,600
of interest). All the above funds have been deposited to the corresponding special
account of the funds raised and the aforesaid matters have been verified by BDO China
Shu Lun Pan CPAs (special general partnership) which has issued the Verification Report
27
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
on Special Explanation of the Replacement of Funds Raised with Own Funds Xin Kuai
Shi Bao Zi [2024] No. ZF10020. See (3) Change of projects that use raised funds for
details.
Note 1: There are differences between the total amount of investment in the current reporting period and the total amount of various
projects, which are caused by rounding.
Note 2: The total amount of investment amount as of the end of the period is the total amount of investment at the end of 2023 plus the
investment amount in the current reporting period, net of the amount of raised funds replaced by the company's own funds.
Note 3: The interest income from bank deposits is the excess of the actual investment amount of the replenishment of working capital
projects over the total pledged investments using raised funds.
(3) Change of projects that use raised funds
Applicable □ Not applicable
Unit: RMB ten thousand
Total
Investme
amount of Actual The date Are there
Actual nt
Correspon funds total the any major
amount progress Benefits Whether
ding raised to amount project changes
invested as of the realized expected
Changed original be invested reaches in
in the end of during the benefits
projects commitm invested as of the its feasibility
current reporting reporting have been
ent in the end of intended of the
reporting period period achieved
projects changed reporting usable changed
period (3)=(2)/(1
projects period (2) status projects?
)
(1)
Artificial
intelligen
ce
technolog Constructi
y research on Project
119,151.7
and of Xi'an R 26,233.95 50,975.87 42.78% 2026 N/A N/A No
5
developm &D
ent and Center
applicatio
n research
project
5G, IoT
and multi-
dimensio New
nal project of
perceptio Southwes
n t R&D 70,278.25 9,504.90 17,073.84 24.29% 2026 N/A N/A No
products Center of
and Dahua
solutions Co., Ltd.
R&D
project
189,430.0 35,738.86
Total -- 68,049.71 -- -- -- --
0 (Note 1)
1. Reasons for increasing the scale of investment of funds raised in the artificial intelligence technology
Explanation of reasons research and development and application research project (formerly "Construction Project of Xi'an R &
for changes, decision- D Center"):
making procedures and With the launch of ChatGPT in November, 2022, artificial intelligence has gradually entered the
information disclosure development stage of big model in AGI (General Artificial Intelligence). The integrated development of
(by project) digitalization and AGI will bring a new round of development cycle and transformation to the industry.
The "industry brain" that fully combines industry experience in the visual field is the inevitable path for
28
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
the real commercial landing of artificial intelligence model, and it is also one of the key research and
development fields of many technology enterprises around the world. The company has accumulated a
lot of experience in many industries concerning the government and enterprises. In the future, it needs to
further increase R & D resources investment and talent echelon construction in large visual models in
artificial intelligence, and trains the large visual model in artificial intelligence for industry landing
application through the ability of the big model and the knowledge accumulated in industry segments, to
promote the digital and intelligent business development of the government and the enterprise, and to
further enhance the Company's core competitiveness. Therefore, the amount of the project investment
and the investment scale of the funds raised are increased.
2. Reasons for reducing the investment scale of funds raised 5G, Internet of Things and multi-
dimensional perception products and solutions R&D projects (formerly "New project of Southwest
R&D Center of Dahua Co., Ltd."):
Given that the R&D center in Hangzhou headquarters has quickly seized the R&D opportunities in the
fields of 5G and multi-dimensional perception by using the existing technology precipitation,
successively released more than ten integrated 5G products and more than 30 5G smart application
solutions, and released the 6D omni-domain perception technology in full-time domain, full-space
domain, full-color domain, and full-frequency domain by utilizing the advantages of the multi-
dimensional perception technology, to lead the industry to continuously expand the boundaries of the
perception capability, deeply practice the integration of visual intelligence and multi-dimensional
perception, and accelerate the business innovation and application. Therefore, in the direction of "5G
and multi-dimensional perception", the Company can carry out the research and development work
quickly by reusing the resources and achievements of the R&D center at Hangzhou headquarter, seize
the opportunities of the industry development, and optimize the use efficiency of the funds raised and
the layout of the project investment. After the project has reused the resources of the R&D center at
Hangzhou headquarters, the Company has reduced the investment amount in hardware and software of
the special laboratory and R&D facilities to be set up as planned in Chengdu, taking into account such
factors as saving operating costs and improving the use efficiency of the funds raised.
3. The Company held the 4th Meeting of the 8th Board of Directors and the 3rd Meeting of the 8th
Board of Supervisors on January 12, 2024, and the First Extraordinary General Meeting of Shareholders
of 2024 on January 29, 2024, during which the "Proposal on Adjusting the Investment Amount and
Investment Structure of Part of the Funds Raised Projects, and Increasing the Implementing Subjects
and Implementation Locations" was considered and adopted. The Company also agreed to adjust the
investment amount of the "Construction Project of Xi'an R & D Center" and the "New project of
Southwest R&D Center of Dahua Co., Ltd.", the investment amount of the funds raised, internal
investment structure, implementation method and subject, implementation locations, and project name.
Situations and reasons
for failure to achieve
planned progress or N/A
expected benefits (by
project)
Notes on major
changes in project N/A
feasibility after change
Note 1: There are differences between the actual total amount of investment in the current reporting period and the total amount of
various projects, which are caused by rounding.
VII. Major Assets and Equity Sales
1. Major assets sales
□ Applicable Not applicable
No major assets were sold during the reporting period of the Company.
29
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
2. Major equity sales
□ Applicable Not applicable
VIII. Analysis of Major Subsidiaries and Associates
Applicable □ Not applicable
Major subsidiaries and joint-stock companies with a net profit impact of over 10%.
Unit: RMB
Company Company Main Registered Operating Operating
Total assets Net Assets Net Profit
Name Type businesses Capital revenue Profit
Design,
constructio
n and
installation
of
constructio
n projects;
technology
developme
nt, services,
consultatio
n and
transfer;
developme
nt,
manufactur
ing,
installation
and
Zhejiang
marketing
Dahua
Subsidiary of 500,000,00 3,044,882,9 1,296,755,6 435,605,74 20,662,620. 22,561,655.
System
Company electronic 0.00 43.90 51.91 2.35 35 22
Engineerin
products,
g Co., Ltd.
safety
equipment
and
communica
tion
devices;
manufactur
ing and
marketing
of
computer
hardware
and
software;
import and
export of
goods and
technologie
s
Zhejiang Subsidiary Technology 1,306,810,0 22,988,328, 2,511,257,1 10,634,282, 9,818,890.2 11,943,937.
Dahua Company developme 00.00 866.93 93.01 049.81 1 35
30
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Vision nt, services,
Technology consultatio
Co., Ltd. n, and
transfer;
manufactur
ing,
marketing
and system
services of
computer
hardware
and
software;
design,
developme
nt,
manufactur
ing and
marketing
of
electronic
products
and safety
equipment;
marketing
and
technical
services of
IOT
equipment;
warehousin
g services,
bonded
warehouse
operation
Technology
developme
nt, services,
consultatio
n, and
transfer;
manufactur
ing and
marketing
of
Zhejiang
computer
Dahua Subsidiary 1,885,800,0 6,868,372,4 1,667,509,0 2,992,168,6 52,085,931. 38,351,811.
hardware
Zhilian Company 00.00 04.06 82.50 32.20 85 28
and
Co., Ltd.
software;
developme
nt,
manufactur
ing and
marketing
of
electronic
products
and
31
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
electronic
component
s, safety
equipment
and
communica
tion
devices;
leasing of
self-owned
houses;
warehousin
g services;
catering
services;
import and
export of
goods
Acquisition and disposal of subsidiaries during the reporting period
Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall production
Company Name
subsidiaries during the reporting period management and performance
Qingdao Dahua Ruifa Intelligent Internet No significant impact on overall
Established with investment
of Things Technology Co., Ltd. production, operation, and performance
Shandong Dahua Digital Intelligence No significant impact on overall
Established with investment
Technology Co., Ltd. production, operation, and performance
Fujian Dahua Qingchuang Digital No significant impact on overall
Established with investment
Technology Co., Ltd. production, operation, and performance
No significant impact on overall
PT IMOU TEKNOLOGI INDONESIA Established with investment
production, operation, and performance
No significant impact on overall
PT IMOU INDONESIA SENANTIASA Established with investment
production, operation, and performance
No significant impact on overall
Hirige Technology MaLaysia Sdn.Bhd. Established with investment
production, operation, and performance
No significant impact on overall
Dahua Technology Egypt LLC Established with investment
production, operation, and performance
DAHUA TECHNOLOGY AUH FOR
No significant impact on overall
SECURITY & SURVEILLANCE - Established with investment
production, operation, and performance
SOLE PROPRIETORSHIP L.L.C.
No significant impact on overall
Dahua Technology USA Inc. Equity transfer
production, operation, and performance
No significant impact on overall
Yunnan Zhili Technology Co., Ltd Logout
production, operation, and performance
No significant impact on overall
Wuhu Huajian Technology Co., Ltd. Logout
production, operation, and performance
DaHua Ideal Tech and the companies it No significant impact on overall
New
controls production, operation, and performance
IX. Structured Entity Controlled by the Company
□ Applicable Not applicable
32
2024 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 counter-measures to avoid and reduce the risks.
(1) Risk of technology upgrading: The smart IoT industry is a typical technology-intensive industry, featuring
extremely fast upgrading. If the Company is unable to keep up with development trends of industrial technologies,
to pay full attention to customers' diversified needs, and to devote sufficient R&D investments, it may still face the
risk of losing market competitiveness due to discontinuous innovation. By increasing R & D investment, the
Company continues to strengthen research on such core technologies as multi-dimensional perception, large model
in AI, video cloud, big data, network communication, network security, and machine vision, and reserves product,
technology, management and talent resources for a broader market in the future, so as to achieve sustainable and
steady business development.
(2) Risk of business model change: With the development of Internet of Things, AI, big data, cloud computing,
network communications, among other technologies, as well as the upgrades of intelligent terminal applications,
the business model in the IoT era may have an impact on the traditional industry development. If an enterprise fails
to grasp opportunities brought about by the business model transformation in a timely manner, it may face the risk
that the original market pattern becomes broken. The Company continues to focus on and study the major changes
in global economy, industry and technology, analyze the industry development logic, and predict the evolution of
smart IoT industry, the continuous integration of video, information communication and digital technologies, and
the diversification and uncertainty of customer demands. While consolidating its current advantageous market, the
Company is also actively exploring and piloting new businesses and new commercial modes, with business and
technical layout.
(3) Risk of declined local fiscal payment capacity: At present, local fiscal debt is relatively high. If the local
fiscal payment capacity declines, it may slow down the growth of industry demands, prolong the construction period
of projects, extend the collection of capital, and delay customers' payment. The Company continues to improve the
internal control system and optimize the project review methods, select local projects carefully and assess project
risks systematically with prudent assessment of the market logic and cash flow balance logic, and reasonable control
of risks. In addition, it formulates plans to deal with potential risks such as cash flow shortage, project delay, and
payment delay.
33
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(4) Risk of international operations: The Company's products and solutions are available in more than 100
countries and regions overseas. As such, its international business operations may be exposed to risks of regional
trade protection, political conflicts in local regions, increasingly complex law compliance requirements and
continuous global growth slowdown in the countries and regions where it operates. The Company actively guards
against and responds to risks of international operations 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.
(5) Exchange rate risk: The Company's export transactions have been mostly settled in U.S. dollars. As our
overseas business is in continuous growth, the fluctuation of exchange rate may affect our profitability. The
Company hedges and avoids exchange rate risks by centralized management of foreign exchange funds and hedging
of purchase payments in line with its main use of U.S. dollars as the settlement currency.
(6) Risk of product safety: The Company attaches great importance to and continuously strengthens resource
investment to ensure safe and reliable system operations so as to respond to 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 plans, ensuring product
safety in the whole process from demands, design, to coding and testing. At the same time, the Company actively
carries out technical exchanges and cooperation with mainstream safety enterprises, safety evaluation agencies and
corresponding industry associations to provide customers with safe products and solutions.
(7) Intellectual property risk: The promotion of the Company's globalization strategy and its own brand strategy
may expose the Company to intellectual property rights risks and patent infringement, as well as such risks as
business relations, fluctuations in the public opinion environment, increased legal proceedings and rising costs.
With a high priority on technological innovation, the Company has established a mechanism for the protection and
management of intangible assets such as innovation achievements, own brands and trade secrets, so as to
continuously gather advantageous intellectual property assets; with the establishment of an intellectual property
compliance and risk control system, the Company continuously strengthens its ability to understand and master
34
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
intellectual property laws and regulations as well as the administrative and judicial environment in the regions where
it operates.
(8) Supply chain security risk: The Company pays attention to suppliers' operational risks and monitors
suppliers' operations in real time by establishing an operational risk data management platform to avoid potential
risks; it promotes diversified supply sources to guarantee supply delivery.
XI. Implementation of the “Increase in Both Quality and Returns” Action Plan
Has the Company disclosed the announcement of the "Increase in Both Quality and Returns" action plan?
Yes □No
To safeguard the interests of all shareholders, the Company has formulated the “Increase in Both Quality and
Returns” Action Plan based on its confidence in the future development prospects and recognition of its stock value.
For details, see the Announcement on “Increase in Both Quality and Returns” Action Plan (Announcement No.
2024-013) published on Juchao Information Network on February 7, 2024.
The company always takes high-quality development as its theme and always adheres to the core values of
“meeting customers’ needs and striving for the goal”. It fulfills the mission of "enabling a smarter living and a safer
society", and relies on two technical strategies: AIoT and the intelligent IoT data platform. It empowers the
construction of an efficient urban governance system and the digital and intelligent transformation and upgrading
of enterprises. With insights into industrial scenarios and profound understanding of client needs, the Company
commits to build a preferred bran of intelligent IoT, so as to promote high-quality, green and innovative
development of the economy and society.
The Company continues to strengthen the foundation of corporate governance, build a sound internal control
system, and promote the "shareholders' meeting, board of directors, board of supervisors and senior management"
to fulfill their responsibilities. Standardize the rights and obligations of the Company and shareholders, to prevent
the abuse of shareholders' rights and prevent the dominant position of management from harming the rights and
interests of small and medium investors. Strengthen the management of investor relations, broaden the channels for
institutional investors to participate in corporate governance, guide small and medium-sized investors to actively
participate in general meeting of shareholders, and create convenience for all kinds of investors to participate in
major decision-making to enhance their right to speak and sense of gain.
The Company has built a firmly sense of returning to shareholders while laying a solid foundation for its
development, It insists on cash dividends every year. Since its listing, total amount of cash dividends have exceeded
35
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
RMB 6.9 billion. During the reporting period, the Company formulated and implemented a profit distribution plan
2023, and distributed cash of about RMB1.251 billion in total to all shareholders. Meanwhile, taking into account
the future business development of the Company and the capital needs of production and operation, the Company
formulated the 2024 semi-annual profit distribution plan, and intended to distribute cash of RMB 1.84 (tax included)
per 10 shares to all shareholders, with a cash dividend of about RMB 602 million, in order to make the shareholders
obtain better returns.
36
2024 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 Date of Date of
Meeting Type Investors Conference Resolution
Session Conference Disclosure
Involved
For details, see the
Announcement of Resolution
First Extraordinary of the First Extraordinary
General Meeting Extraordinary January 29, January 30, General Meeting of
45.49%
of Shareholders in General Meeting 2024 2024 Shareholders in 2024
2024 disclosed by Juchao
Information Network
(www.cninfo.com.cn).
For details, see the
Announcement of Resolution
2023 Annual of 2023 Annual General
Annual General May 13,
General Meeting 41.62% May 14, 2024 Meeting of Shareholders
Meeting 2024
of Shareholders disclosed by Juchao
Information Network
(www.cninfo.com.cn).
2. Convening of the Extraordinary General Meeting of Shareholders upon request of the preferred
stockholders whose voting rights are restored
□ Applicable Not applicable
II. Changes of Directors, Supervisors and Senior Management of the Company
Applicable □ Not applicable
Name Title Type Date Reasons
Gao Chunshan Senior Vice President Appointment April 15, 2024 Appointment
Chen Qiang Senior Vice President Appointment April 15, 2024 Appointment
III. Profit Distribution and Capital Reserve Converted to Share Capital in the Reporting
Period
Applicable □ Not applicable
Number of bonus shares per 10 shares (shares) 0
Dividend per 10 shares (RMB) (tax included) 1.84
Equity base of the distribution plan (shares) 3,272,527,089
Cash dividend amount (RMB) (tax included) 602,144,984.38
Amount of cash dividends distributed in other ways (such as
0.00
share repurchase) (RMB)
37
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Total cash dividends (including other methods) (RMB) 602,144,984.38
Distributable profit (RMB) 23,977,722,114.13
Proportion of total cash dividends (including other ways) to
100%
total profit distribution
The situation of cash dividend
It is difficult to distinguish at the development stage of the Company. However, if there are major capital expenditure
arrangements, the proportion of cash dividends in the profit distribution should be at least 20%.
Detailed description of profit distribution and capital reserve conversion plan
Based on 3,272,527,089 shares after deducting the re-purchased shares (19,819,601 shares), the Company paid a cash of RMB
1.84 (tax inclusive) every 10 shares to all shareholders, and distributed RMB 602,144,984.38 of cash bonus. It did not convert
capital reserve into share capital or paid bonus shares, and the rest will be distributed in the future. If there is a change in the share
capital that the Company is entitled to profit distribution prior to the implementation of the distribution plan, the total amount of
cash dividends will be adjusted accordingly based on the principle of unchanged distribution ratio.
IV. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Plan
or Other Employee Incentive Measures
Applicable □ Not applicable
1. Equity incentive
1. On April 15, 2024, the Company held the 5th meeting of the 8th Board of Directors and the 4th meeting of the 8th Board of
Supervisors, at which the “Proposal on Cancellation of Some Stock Options of 2022 Stock Options and Restricted Stock Incentiv e
Plan” and the “Proposal on Repurchase of Some Restricted Stock Options of 2022 Stock Options and Restricted Stock Incentive P lan”
were deliberated and approved. Give the fact that 204 incentive recipients have resigned and are no longer eligible for incentive, the
Company intends to repurchase/cancel 2,134,680 restricted shares that have been granted to the aforementioned resigned recipients but
have not been released from the restricted sale, and 2,211,600 stock options that have not been exercised, according to the relevant
provisions of the Stock Option and Restricted Stock Incentive Plan in 2022. On May 13, 2024, the Company held the 2023 Annual
General Meeting of Shareholders, at which the “Proposal on Cancellation of Some Restricted Shares of 2022 Stock Options and
Restricted Stock Incentive Plan” were deliberated and approved. So far, the Company has completed the repurchase a nd cancellation
of the aforementioned restricted stocks/options.
2. On June 19, 2024, the Company held the 6th meeting of the 8th Board of Directors and the 5th meeting of the 8th Board of
Supervisors, at which the “Proposal on Meeting the Conditions for Unlocking the Second Restricted Period of 2022 Stock Options and
Restricted Stock Incentive Plan” and the “Proposal on Meeting the Conditions for Exercising the Second Exercise Period of 2022 Stock
Options and Restricted Stock Incentive Plan” were deliberated and approved. The conditions for the second exercise period of the 2022
Stock Option and Restricted Stock Incentive Plan of the Company have been fulfilled, with a total of 3,798 incentive recipients eligible
for the exercising, and the number of exercisable stock options totaling 20,184,927, accounting for 0.61% of the total number of shares
of the Company, and the exercise price of the options is RMB 15.657/share; at the same time, the conditions for unlocking the second
restriction period have been fulfilled. At the same time, the conditions for the release of restricted shares for the second restricted period
have been fulfilled, and 3,798 incentive recipients can be released from restricted sale in this period, and 20,262,480 restricted shares
can be unlocked from restricted sale, accounting for 0.62% of the total share capital of the Company at present. In addition, the meeting
considered and adopted the “Proposal on Adjustment of the Exercise Price of the 2022 Stock Option and Restricted Stock Incentive
Plan”, adjusting the exercise price of the Company's stock options under this incentive plan from RMB16.59 per share to RMB15.657
per share due to the equity distributions in 2022, the first three quarters of 2023 and 2023.
38
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
2. Implementation of employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentive measures
Applicable □ Not applicable
The Company adheres to the concept of "striving for the goal". By long-term incentives for employees based on the equity of listed
companies, the Company has launched an incentive plan for employees to co-investment in specific subsidiaries with innovated
business, aiming to combine the interests of the Company and employees to realize the sustainable and healthy development of the
Company, and to stimulate the employees’ enthusiasm for innovation.
39
2024 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
Measures taken to reduce carbon emissions during the reporting period and their effects
Applicable □ Not applicable
The Company actively responds to the call of global sustainable development, and regards environmental protection, energy
conservation and emission reduction as an important part of corporate strategy; During the reporting period, DAHUA took measures
to reduce carbon emissions and achieved remarkable results.
DAHUA attaches importance to green operation, implements the strategies of green manufacturing and logistics, and improves
energy use efficiency through intelligent and refined management. The Company has established an energy management system to
optimize the energy structure through real-time monitoring and data analysis; it has adopted intelligent lighting system and manual
flushing mode in the Industry Park to reduce the waste of electricity and water resources; the Company also follows the relevant
environmental directives and standards, and actively carries out research and development of green packaging to promote reducing
carbon footprint in packaging materials. By the above initiatives, DAHUA strives to comprehensively reduce energy consumption and
carbon emissions during production and operations. In the first half of 2024, DAHUA conducted a comprehensive inventory of the
organization's carbon emissions for the entire previous fiscal year, laying a foundation for the Company to set long-term target of
energy consumption and carbon emission.
DAHUA also tries to reduce the carbon footprint in its products through green research and development. The Company attaches
great importance to environmental protection and energy-saving design in the product development process, and achieves
environmental management throughout the product lifecycle through a green product management platform. Based on the overall
strategy of "digital and intelligent empowerment, low-carbon future, shared ecology and compliance management", DAHUA integrate s
digital intelligence empowerment into the sustainable development of its business. The integrated solar power transmission monitoring
system developed by the Company provides sufficient energy support for intelligent management of transmission scenarios, saving
380,000 kWh per 10,000 products every year. A series of representative green products have obtained a number of authoritative green
certifications at home and abroad, such as Type II environmental labeling, environmental protection product, and environmental
labeling product. The Company has also invested resources in simulation process research to reduce energy consumption during actual
testing or experiment. At present, Dahua has achieved 100% simulation process in new product research and development.
DAHUA also encourages employees to participate in energy conservation and emission reduction actions, and carries out interna l
cultural events and energy conservation and environment protection training to enhances employees' environmental awareness. We
promote and encourage employees to engage in a green travel and advocate a low-carbon lifestyle by using Eco-friendly appliances to
build a greener and low-carbon society.
By these comprehensive measures, DAHUA not only reduces carbon emissions in its operations, but also helps other industries
and fields achieve green transformation through its products and services, positively contributing to the achievement of global carbon
emission reduction targets.
40
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
II. Social Responsibilities
For details, see the Company's 2023 Social Responsibility Report and 2023 Environmental, Social and Governance Report published
on the Juchao Information Network (www.cninfo.com.cn).
41
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section VI Significant Events
I. Commitments that have been fulfilled by the Company's actual controller(s), shareholders,
related parties, acquirers, the Company and the relevant parties during the reporting period
and those that have not been fulfilled by the end of the reporting period
□ Applicable Not applicable
There are no commitments that have been fulfilled by the Company's actual controller(s), shareholders, related parties, acquirers, the
Company and the relevant parties during the reporting period or those that have not been 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 financial report has been audited
□ Yes No
The semi-annual financial 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.
42
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
VIII. Lawsuits
Major lawsuits and arbitrations
□ Applicable Not applicable
There is no major lawsuit or arbitration during this reporting period.
Other lawsuits
□ Applicable Not applicable
IX. Penalties and Rectification
□ Applicable Not applicable
No such cases as punishment or rectification during the reporting period.
X. Integrity of the Company, Its Controlling Shareholders and Actual Controllers
□ 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 significant transactions in acquisition or sale of assets or equities in the reporting period.
3. Significant related-party transactions arising from joint investments on external parties
□ Applicable Not applicable
No such case as significant related-party transactions involving joint external investments.
4. Related-party creditor's rights and debts
□ Applicable Not applicable
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 pa rties.
6. Transactions between the financial company controlled by the Company and the related parties
□ Applicable Not applicable
43
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
There are no deposit, loan, credit, or other financial business between the financial company controlled by the Company and the
related parties.
7. Other significant related-party transactions
□ Applicable Not applicable
No such case as other significant related-party transactions during the reporting period.
XII. Significant Contracts and Performance
1. Matters on trusteeship, contracting, and leasehold
(1) Matters on trusteeship
□ Applicable Not applicable
No such case as custody during the reporting period.
(2) Contracting
□ Applicable Not applicable
No such case as contracting during the reporting period.
(3) Leasing
Applicable □ Not applicable
Explanations on leases
During the reporting period, some of the Company's own real estate properties were used for rental, and there are no other leases of
major property except for the leased real estate property used for office, warehouse, and production workshops.
Cases that brought the profit and loss accounted for more than 10% of the Company's total profit during the reporting period
□ Applicable Not applicable
No such leases that brought the profit and loss accounted for more than 10% of the Company's total profit during the reporting
period.
2. Significant guarantees
Applicable □ Not applicable
Unit: RMB ten thousand
External guarantees from the Company and its subsidiaries (excluding guarantees to the subsidiaries)
Guara
Announce
ntee
ment date
for
of Actual Actual Type of Due
Guarantee relate
Guaranteed party disclosure occurrence guarantee guarant Term of guarantee or
amount d
of the date amount ee not
partie
guarantee
s or
cap
not
44
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Total amount of
Total amount of guarantees external guarantees
approved during the reporting actually occurred
period (A1) during the reporting
period (A2)
Total balance of
Total amount of external
external guarantees at
guarantees approved by the end of
the end of the
the reporting period (A3)
reporting period (A4)
Company's guarantees to subsidiaries
Guara
Announce
ntee
ment date
for
of Actual Actual Type of Due
Guarantee relate
Guaranteed party disclosure occurrence guarantee guarant Term of guarantee or
amount d
of the date amount ee not
partie
guarantee
s or
cap
not
Joint
liability 2020.04.07-
2020.04.07 53,000.00 Yes No
guarant 2024.03.31
ee
Joint Three years after
100,000.0 liability the maturity of the
2021.02.04 Yes No
0 guarant debts in the master
ee contract
From the effective
date of the
Commitment Letter
to three years after
the maturity date of
each loan or other
financing under the
Credit Agreement
or of the accounts
receivable claims
granted by the
Hangzhou Branch
Joint
of China Merchants
liability
2023.06.09 40,000.00 Bank or the Yes No
guarant
Zhejiang Dahua advance date of
April 16, ee
Vision Technology 840,000.00 each advance
2024
Co., Ltd. within the credit
extension period;
for any specific
extension of credit,
the guarantee
period shall be
extended for an
additional three
years after the
expiration of the
extension period.
From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 20,000.00 Yes No
guarant discounted by the
ee Hangzhou Branch
of China Merchants
Bank within the
credit extension
period
45
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Three years from
Joint the next day of
liability ICBC Qingchun
2023.11.20 20,000.00 Yes No
guarant Sub-branch's
ee external payment
commitment
Joint Two years after the
liability maturity of the
2017.10.13 22,000.00 No No
guarant debts in the master
ee contract
Joint Two years after the
28,507.20
liability maturity of the
2018.09.21 (USD 40 No No
guarant debts in the master
million)
ee contract
Joint Five years upon
liability expiration of debt
2020.09.01 30,000.00 No No
guarant period of master
ee contract
Joint Three years after
liability the maturity of the
2021.07.26 44,000.00 No No
guarant debts in the master
ee contract
Joint Three years after
liability the maturity of the
2021.10.20 20,000.00 No No
guarant debts in the master
ee contract
Joint Three years after
liability the maturity of the
2022.07.22 20,000.00 No No
guarant debts in the master
ee contract
Joint
liability 2022.09.19-
2022.09.19 60,000.00 No No
guarant 2024.09.18
ee
From the date of
expiration of the
performance period
of each debt in the
Joint master contract
liability until three years
2023.07.24 40,000.00 No No
guarant after the date of
ee expiration of the
performance period
of the last due
master debt under
all master contracts
Three years from
the effective date of
the Maximum
Amount Guarantee
Joint
Contract to the
liability
2023.07.25 50,000.00 expiration date of No No
guarant
the performance
ee
period of each debt
under the Credit
Business
Agreement
Calculated
separately on the
basis of a single
Joint credit business
liability handled by Dahua
2023.09.26 90,000.00 No No
guarant Vision Technology
ee for the debtor, i.e.
from the date of
signing of the
master contract for
46
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
a single credit
business to three
years after the
expiration date of
the debtor's debt
performance period
under such master
contract
Three years from
the expiration date
Joint
of the debtor's
liability
2023.09.26 33,000.00 performance period No No
guarant
as agreed in the
ee
master claim
contract
Three years from
the next day after
Joint
the expiry date of
100,000.0 liability
2024.03.01 each type of No No
0 guarant
financing business
ee
under the master
contract
Two years from the
Joint expiration date of
liability the debtor's
2024.04.01 53,000.00 No No
guarant performance period
ee as agreed in the
master contract
From the effective
date of the
Commitment Letter
to three years after
the maturity date of
each loan or other
financing under the
Credit Agreement
or of the accounts
receivable claims
granted by the
Hangzhou Branch
Joint
of China Merchants
liability
2024.06.07 40,000.00 Bank or the No No
guarant
advance date of
ee
each advance
within the credit
extension period;
For any specific
extension of credit,
the guarantee
period shall be
extended for an
additional three
years after the
expiration of the
extension period.
From the effective
date of the
Commitment Letter
to three years after
Joint the maturity date of
Zhejiang Dahua April 16, liability each loan or other
270,000.00 2023.06.09 16,000.00 Yes No
Zhilian Co., Ltd. 2024 guarant financing under the
ee Credit Agreement
or of the accounts
receivable claims
granted by the
Hangzhou Branch
47
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
of China Merchants
Bank or the
advance date of
each advance
within the credit
extension period;
For any specific
extension of credit,
the guarantee
period shall be
extended for an
additional three
years after the
expiration of the
extension period.
Joint Two years after the
liability maturity of the
2020.09.24 30,000.00 Yes No
guarant debts in the master
ee contract
Joint
liability 2023.06.19-
2023.06.19 12,000.00 Yes No
guarant 2024.06.18
ee
Joint
liability 2023.06.19-
2023.06.19 35,000.00 Yes No
guarant 2024.06.18
ee
Joint Three years after
liability the maturity of the
2021.07.26 16,500.00 No No
guarant debts in the master
ee contract
Joint
3,563.40
liability 2021.12.03-
2021.12.03 (USD 5 No No
guarant 2024.12.02
million)
ee
Joint
liability 2022.08.25-
2022.08.25 20,000.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.09.19-
2022.09.19 15,000.00 No No
guarant 2024.09.18
ee
8,908.50 Joint
(USD liability 2023.7.13-
2023.07.13 No No
12.5 guarant 2024.7.12
million) ee
From the date of
expiration of the
performance period
of each debt in the
Joint master contract
liability until three years
2023.07.24 50,000.00 No No
guarant after the date of
ee expiration of the
performance period
of the last due
master debt under
all master contracts.
One year from the
Joint expiration date of
liability the debtor's
2024.01.02 1,000.00 No No
guarant performance period
ee as agreed in the
master contract
Joint Two years from the
2024.03.29 30,000.00 No No
liability expiration date of
48
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
guarant the debtor's
ee performance period
as agreed in the
master contract
From the effective
date of the
Commitment Letter
to three years after
the maturity date of
each loan or other
financing under the
Credit Agreement
or of the accounts
receivable claims
granted by the
Hangzhou Branch
Joint
of China Merchants
liability
2024.06.07 16,000.00 Bank or the No No
guarant
advance date of
ee
each advance
within the credit
extension period;
For any specific
extension of credit,
the guarantee
period shall be
extended for an
additional three
years after the
expiration of the
extension period.
From the effective
date of the
Commitment Letter
to three years after
the maturity date of
each loan or other
financing under the
Credit Agreement
or of the accounts
receivable claims
granted by the
Hangzhou Branch
Joint
of China Merchants
liability
2023.06.09 4,000.00 Bank or the Yes No
guarant
advance date of
ee
each advance
Zhejiang Dahua within the credit
April 16,
System Engineering 30,000.00 extension period;
2024
Co., Ltd. For any specific
extension of credit,
the guarantee
period shall be
extended for an
additional three
years after the
expiration of the
extension period.
Joint Two years after the
liability maturity of the
2019.08.30 1,000.00 No No
guarant debts in the master
ee contract
Joint
liability 2022.08.25-
2022.08.25 500.00 No No
guarant 2025.08.25
ee
49
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Three years from
the effective date of
the Maximum
Amount Guarantee
Joint
Contract to the
liability
2023.07.25 5,000.00 expiration date of No No
guarant
the performance
ee
period of each debt
under the Credit
Business
Agreement.
One year from the
signing of the
Joint
project contract or
liability
2023.09.11 160.21 6 months of stable No No
guarant
operation of the
ee
system on line
(whichever is later)
From the effective
date of the
Commitment Letter
to three years after
the maturity date of
each loan or other
financing under the
Credit Agreement
or of the accounts
receivable claims
granted by the
Hangzhou Branch
Joint
of China Merchants
liability
2024.06.10 4,000.00 Bank or the No No
guarant
advance date of
ee
each advance
within the credit
extension period;
For any specific
extension of credit,
the guarantee
period shall be
extended for an
additional three
years after the
expiration of the
extension period.
Joint
1,425.36
liability 2023.04.21-
2023.04.21 (USD 2 Yes No
guarant 2024.04.21
million)
ee
Dahua Technology April 16,
70,000.00
(HK) Limited 2024
Joint
2,138.04
liability 2024.4.22-
2024.04.22 (USD 3 No No
guarant 2025.4.22
million)
ee
50
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
DAHUA Joint
712.68
TECHNOLOGY April 16, liability 2023.10.18-
3,000.00 2023.10.18 (USD 1 No No
MEXICO S.A. DE 2024 guarant 2024.10.20
million)
C.V ee
Joint Two years after the
liability maturity of the
2019.08.30 5,000.00 Yes No
guarant debts in the master
ee contract
Hangzhou Huacheng
April 16,
Network Technology 17,000.00
2024 Joint Three years after
Co., Ltd.
liability the maturity of the
2021.07.26 5,500.00 Yes No
guarant debts in the master
ee contract
Joint
liability 2022.08.25-
2022.08.25 6,500.00 Yes No
guarant 2024.04.29
ee
1,048.99 Joint
August 12, 2020 -
(1.16 liability
2020.08.12 Signature of notice No No
million guarant
of termination
Dahua Technology April 16, pounds) ee
4,000.00
UK Limited 2024 Joint
712.68
liability
2024.03.04 (USD 1 2024.3.4-2025.3.3 No No
guarant
million)
ee
Joint Three years after
1,425.36
liability the maturity of the
2022.05.16 (USD 2 Yes No
guarant debts in the master
million)
ee contract
Joint Three years after
liability the maturity of the
2022.04.29 1,000.00 No No
guarant debts in the master
Zhejiang Huayixin April 16, ee contract
4,500.00
Technology Co., Ltd. 2024 Joint
liability 2022.08.25-
2022.08.25 200.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.10.21-
2022.10.21 800.00 No No
guarant 2024.09.18
ee
From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 2,000.00 Yes No
Zhejiang Fengshi April 16, guarant discounted by the
16,000.00
Technology Co., Ltd. 2024 ee Hangzhou Branch
of China Merchants
Bank within the
credit extension
period
Joint 2022.08.25-
2022.08.25 10,000.00 No No
liability 2025.08.25
51
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
guarant
ee
Joint
liability 2022.10.21-
2022.10.21 2,000.00 No No
guarant 2024.09.18
ee
Joint
liability 2022.08.25-
2022.08.25 800.00 No No
guarant 2025.08.25
Jiangsu Huaruipin April 16, ee
3,500.00
Technology Co. Ltd. 2024 Joint
liability 2022.10.21-
2022.10.21 1,500.00 No No
guarant 2024.09.18
ee
Joint
liability 2022.08.25-
2022.08.25 200.00 No No
guarant 2025.08.25
Zhejiang Huaxiao April 16, ee
1,600.00
Technology Co., Ltd. 2024 Joint
liability 2022.10.21-
2022.10.21 800.00 No No
guarant 2024.09.18
ee
From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 5,000.00 Yes No
guarant discounted by the
ee Hangzhou Branch
of China Merchants
Xi'an Dahua Zhilian April 16, Bank within the
20,000.00
Technology Co., Ltd. 2024 credit extension
period
Joint
liability 2022.08.25-
2022.08.25 10,000.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.10.21-
2022.10.21 2,500.00 No No
guarant 2024.09.18
ee
From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 5,000.00 Yes No
guarant discounted by the
Zhengzhou Dahua
April 16, ee Hangzhou Branch
Zhian Information 10,000.00
2024 of China Merchants
Technology Co., Ltd.
Bank within the
credit extension
period
Joint
liability 2022.08.25-
2022.08.25 3,000.00 No No
guarant 2025.08.25
ee
From the start of
the guarantee
period to three
Chengdu Dahua Joint
years after the
Zhian Information April 16, liability
15,000.00 2023.06.25 8,000.00 maturity date of Yes No
Technology Service 2024 guarant
each note
Co., Ltd. ee
discounted by the
Hangzhou Branch
of China Merchants
52
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Bank within the
credit extension
period
From the start of
the guarantee
period to three
years after the
Joint maturity date of
liability each note
2023.06.25 1,000.00 Yes No
guarant discounted by the
ee Hangzhou Branch
of China Merchants
Changsha Dahua April 16, Bank within the
8,000.00
Technology Co., Ltd. 2024 credit extension
period
Joint
liability 2022.08.25-
2022.08.25 3,000.00 No No
guarant 2025.08.25
ee
Joint
liability 2022.10.21-
2022.10.21 2,000.00 No No
guarant 2024.09.18
ee
Joint
Zhejiang Pixfra April 16, liability 2022.08.25-
1,000.00 2022.08.25 500.00 No No
Technology Co., Ltd. 2024 guarant 2025.08.25
ee
Zhejiang Huafei Joint
Intelligent April 16, liability 2022.08.25-
500.00 2022.08.25 200.00 No No
Technology CO., 2024 guarant 2025.08.25
LTD. ee
Joint
Zhejiang Huajian April 16, liability 2022.08.25-
1,000.00 2022.08.25 200.00 No No
Technology Co., Ltd. 2024 guarant 2025.08.25
ee
Joint
Hangzhou Xiaohua
April 16, liability 2022.08.25-
Technology CO., 200.00 2022.08.25 200.00 No No
2024 guarant 2025.08.25
LTD.
ee
Zhejiang Dahua Joint
Security Network April 16, liability 2022.08.25-
500.00 2022.08.25 500.00 No No
Operation Service 2024 guarant 2025.08.25
Co., Ltd. ee
Joint
111.62
Dahua Technology April 16, liability 2023.12.07-
700.00 2023.12.07 (EUR No No
France SAS 2024 guarant 2029.08.31
145,700)
ee
Joint
1069.02
DAHUA EUROPE April 16, liability
20,000.00 2024.03.04 (USD 1.5 2024.3.4-2025.3.3 No No
B.V. 2024 guarant
million)
ee
356.34 Joint
Dahua Technology April 16, (USD liability
4,000.00 2024.03.04 500,000 2024.3.4-2025.3.3 No No
Italy S.R.L. 2024 guarant
） ee
Guangxi Dahua
April 16,
Information 100.00 No such case during the reporting period
2024
Technology Co., Ltd.
Guangxi Dahua April 16,
100.00 No such case during the reporting period
Technology Co., Ltd. 2024
53
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Anhui Dahua Zhilian
April 16,
Information 500.00 No such case during the reporting period
2024
Technology Co., Ltd.
Anhui Dahua Zhishu
April 16,
Information 500.00 No such case during the reporting period
2024
Technology Co., Ltd.
Chengdu Dahua
April 16,
Zhilian Information 800.00 No such case during the reporting period
2024
Technology Co., Ltd.
Chengdu Dahua
Zhishu Information April 16,
500.00 No such case during the reporting period
Technology Service 2024
Co., Ltd.
Chengdu Zhichuang
April 16,
Yunshu Technology 500.00 No such case during the reporting period
2024
Co., Ltd.
Hangzhou Fuyang
April 16,
Hua'ao Technology 300.00 No such case during the reporting period
2024
Co., Ltd.
Henan Dahua
April 16,
Zhilian Information 500.00 No such case during the reporting period
2024
Technology Co., Ltd.
Hunan Dahua
April 16,
Zhilong Information 100.00 No such case during the reporting period
2024
Technology Co., Ltd.
Tianjin Dahua
April 16,
Information 200.00 No such case during the reporting period
2024
Technology Co., Ltd.
Tianjin Huajian April 16,
100.00 No such case during the reporting period
Technology Co., Ltd. 2024
Yiwu Huaxi April 16,
100.00 No such case during the reporting period
Technology Co., Ltd. 2024
Zhejiang Dahua
Intelligent IoT April 16,
500.00 No such case during the reporting period
Operation Service 2024
Co., Ltd.
Zhejiang Huakong April 16,
200.00 No such case during the reporting period
Software Co., Ltd. 2024
Dahua Technology April 16,
100.00 No such case during the reporting period
Japan LLC 2024
Dahua Technology April 16,
100.00 No such case during the reporting period
Singapore Pte.Ltd. 2024
Dahua Technology April 16,
1,000.00 No such case during the reporting period
Poland Sp.Zo.O. 2024
Dahua Technology H April 16,
300.00 No such case during the reporting period
ungary Kft 2024
Dahua Technology April 16,
4,000.00 No such case during the reporting period
India Private Limited 2024
54
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
DAHUA
TECHNOLOGY
BRASIL
COMRCIO E April 16,
1,000.00 No such case during the reporting period
SERVIOS EM 2024
SEGURANA
ELETRNICA
LTDA
Dahua Technology April 16,
1,000.00 No such case during the reporting period
Middle East FZE 2024
Dahua Technology April 16,
100.00 No such case during the reporting period
Perú S.A.C 2024
Dahua Technology April 16,
100.00 No such case during the reporting period
Australia PTY LTD 2024
Dahua Technology
April 16,
South Africa 100.00 No such case during the reporting period
2024
Proprietary Limited
Dahua Technology April 16,
100.00 No such case during the reporting period
Canada INC. 2024
Dahua Guvenlik
April 16,
Teknolojileri Sanayi 200.00 No such case during the reporting period
2024
ve Ticaret A.S.
Dahua Technology April 16,
100.00 No such case during the reporting period
SRB d.o.o. 2024
Dahua Technology April 16,
100.00 No such case during the reporting period
Bulgaria EOOD 2024
April 16,
Dahua Iberia, S.L. 100.00 No such case during the reporting period
2024
Dahua Security
April 16,
Malaysia SDN. 100.00 No such case during the reporting period
2024
BHD.
Dahua Technology April 16,
100.00 No such case during the reporting period
Kazakhstan LLP 2024
PT. Dahua Vision
April 16,
Technology 100.00 No such case during the reporting period
2024
Indonesia
Dahua Technology
April 16,
Korea Company 100.00 No such case during the reporting period
2024
Limited
Dahua Technology April 16,
100.00 No such case during the reporting period
S.R.L. 2024
April 16,
Dahua Vision LLc 100.00 No such case during the reporting period
2024
Dahua Technology
April 16,
New Zealand 100.00 No such case during the reporting period
2024
Limited
Dahua Technology April 16,
300.00 No such case during the reporting period
GmbH 2024
Dahua Technology April 16,
100.00 No such case during the reporting period
Colombia S.A.S. 2024
55
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Dahua Technology April 16,
100.00 No such case during the reporting period
Panama S.A. 2024
Dahua Technology April 16,
100.00 No such case during the reporting period
Chile SpA 2024
Dahua Technology
April 16,
Tunisia Limited 100.00 No such case during the reporting period
2024
Liability Company
Dahua Technology April 16,
100.00 No such case during the reporting period
Kenya Limited 2024
Dahua Technology
April 16,
Pakistan (private) 100.00 No such case during the reporting period
2024
Limited
Dahua Technology April 16,
100.00 No such case during the reporting period
Morocco SARL 2024
Dahua Argentina April 16,
100.00 No such case during the reporting period
S.A. 2024
Dahua Technology April 16,
100.00 No such case during the reporting period
Czech s.r.o. 2024
Dahua Technology April 16,
100.00 No such case during the reporting period
Denmark ApS 2024
Dahua Technology April 16,
100.00 No such case during the reporting period
(Thailand) Co.,LTD. 2024
Luoyang Dahua
April 16,
Zhiyu Information 500.00 No such case during the reporting period
2024
Technology Co., Ltd.
Dahua Technology April 16,
100.00 No such case during the reporting period
Belgium B.V. 2024
DAHUA
TECHNOLOGY April 16,
2,000.00 No such case during the reporting period
INTERNATIONAL 2024
PTE. LTD.
Dahua Technology
April 16,
Regional 1,000.00 No such case during the reporting period
2024
Headquarters
Nanyang Dahua
Intelligent April 16,
200.00 No such case during the reporting period
Information 2024
Technology Co., Ltd.
Yibin Huahui
April 16,
Information 200.00 No such case during the reporting period
2024
Technology Co., Ltd.
Total amount of
Total amount of guarantees to guarantees to
subsidiaries approved during the 1,360,000.00 subsidiaries actually 248,276.08
reporting period (B1) occurred during the
reporting period (B2)
Total balance of
Total amount of guarantees to guarantees actually
subsidiaries approved by the end 1,360,000.00 paid to subsidiaries at 847,688.68
of the reporting period (B3) the end of the
reporting period (B4)
Subsidiaries' guarantees to subsidiaries
Guara
Announce
ntee
ment date
for
of Actual Actual Type of Due
Guarantee relate
Guaranteed party disclosure occurrence guarantee guarant Term of guarantee or
amount d
of the date amount ee not
partie
guarantee
s or
cap
not
Total amount of
Total amount of guarantees to
guarantees to
subsidiaries approved during the
subsidiaries actually
reporting period (C1)
occurred during the
56
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
reporting period (C2)
Total balance of
Total amount of guarantees to guarantees actually
subsidiaries approved by the end paid to subsidiaries at
of the reporting period (C3) the end of the
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 1,360,000.00 occurred during the 248,276.08
period (A1+B1+C1) reporting period
(A2+B2+C2)
Total balance of
Total amount of guarantees guarantees actually
approved by the end of the 1,360,000.00 paid at the end of the 847,688.68
reporting period (A3+B3+C3) reporting period
(A4+B4+C4)
Total amount of actual guarantees (A4+B4+C4) as a percentage
23.94%
of the Company's net assets
Including:
Balance of guarantees provided to the shareholders, actual
controllers, and their related parties (D)
Balance of debt guarantees directly or indirectly offered to
819,603.11
guaranteed objects with asset-liability ratio exceeding 70% (E)
Amount of the portion of the total guarantee amount exceeding
50% of net assets (F)
Total amount of the above three guarantees (D+E+F) 819,603.11
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)
Explanation of the use of composite guarantee method
None
3. Entrusted Financing
Applicable □ Not applicable
Unit: RMB ten thousand
Impairment
Overdue amount accrued
Specific type Funding source Entrusted amount Unexpired balance outstanding for overdue
amount financial
management
Financial products
of securities Equity Fund 100,000.00
companies
Total 100,000.00
Specific matters on high-risk entrusted capital management with a large amount for a single item, or with low security and poor
liquidity
Applicable □ Not applicable
Unit: RMB ten thousand
57
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Am
Actu
ount Whe
al
of ther
Actu reco
Nam prov ther
al very Item
e of Refe ision Whe e
Trus Pay profi of over
trust renc for ther will
tee men Exp t profi view
ee Inve e for imp it be
orga Ter t ecte and ts and
orga Prod Capi stme annu airm pass entr
nizat Start min dete d loss and relat
nizat uct Am tal nt alize ent ed uste
ion ing atio rmin earn duri loss ed
ion Typ ount Sour dire d accr the d
(or date n atio ings ng es quer
(or e ce ctio rate ued legal fina
trust date n (if the duri y
nam n of in proc ncial
ee) met any) repo ng inde
e of retur the edur plan
type hod rting the x (if
trust n curr es in
peri repo any)
ee) ent the
od rting
year futur
peri
(if e
od
any)
Priv
ate
equi
ty
fund
prod
ucts,
fixe Pay
d men
Guo Asse inco t of
sen Secu t Febr Febr me prin
Equi
Secu ritie Man 100, uary uary asset cipal - Une
ty
ritie s age 000. 10, 09, s, and 9,53 xpir Yes No
Fun
s Com men 00 202 203 equi inco 7.64 ed
d
co., pany t 1 1 ty me
Ltd. Plan asset at
s, mat
publ urity
ic
equi
ty
hybr
id
fund
s
100, -
Total 000. -- -- -- -- -- -- 9,53 -- -- -- --
00 7.64
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.
58
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
XIII. Explanations on Other Significant Matters
□ Applicable Not applicable
No such case as other significant events that need to be explained during the reporting period.
XIV. Significant Events of the Company's Subsidiaries
□ Applicable Not applicable
59
2024 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: Shares
Before the change Increase or decrease in the change (+, -) After the change
Shares
Shares converted
Proportio Bonus Proportio
Quantity newly from Others Subtotal Quantity
n shares n
issued capital
reserves
I. Shares
with - -
1,335,459 1,212,407
limited 40.54% 0 0 0 123,052,2 123,052,2 36.80%
,556 ,274
sales 82 82
condition
1.
Shares
0 0.00% 0 0 0 0 0 0 0.00%
held by
state
2.
Shares
held by
293,103,4 293,103,4
state- 8.90% 0 0 0 0 0 8.90%
00.00 00
owned
legal
persons
3.
- -
Other 1,042,356 919,303,8
31.64% 0 0 0 123,052,2 123,052,2 27.90%
domestic ,156 74
82 82
shares
Inclu
ding:
Shares
held by 0 0.00% 0 0 0 0 0 0 0.00%
domestic
legal
persons
Shar
es held by - -
1,042,356 919,303,8
domestic 31.64% 0 0 0 123,052,2 123,052,2 27.90%
,156 74
natural 82 82
persons
4.
Foreign 0 0.00% 0 0 0 0 0 0 0.00%
shares
Inclu
ding: 0 0.00% 0 0 0 0 0 0 0.00%
Shares
60
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
held by
foreign
legal
persons
Shar
es held by
foreign 0 0.00% 0 0 0 0 0 0 0.00%
natural
persons
II. Shares
without 1,959,009 123,052,2 123,052,2 2,082,061
59.46% 0 0 0 63.20%
restriction ,434 82 82 ,716
s
1.
RMB 1,959,009 123,052,2 123,052,2 2,082,061
59.46% 0 0 0 63.20%
ordinary ,434 82 82 ,716
shares
2.
Foreign
shares 0 0.00% 0 0 0 0 0 0 0.00%
listed in
China
3.
Foreign
shares
0 0.00% 0 0 0 0 0 0 0.00%
listed in
foreign
countries
4.
0 0.00% 0 0 0 0 0 0 0.00%
Other
3,294,468 3,294,468
III. Total 100.00% 0 0 0 0 0 100.00%
,990 ,990
Reasons for changes in shares
Applicable □ Not applicable
According to relevant regulations, the Company shall lock the shares held by its directors, supervisors, and senior management through
re-verification at the beginning of each year and shall lock the shares held by the resigned directors, supervisors, and senior management
in different proportions at different stages based on their resignation dates and former terms of office.
Approval for changes in shares
□ Applicable Not applicable
Transfer for changes in shares
□ Applicable Not applicable
The progress on share repurchases
□ Applicable Not applicable
The progress in reduction of re-purchase shares by means of centralized competitive bidding
□ Applicable Not applicable
Effects of changes in shares on the basic earnings per share ("EPS"), diluted EPS, net assets per share, attributable to comm on
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
61
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
□ Applicable Not applicable
2. Changes in restricted stocks
Applicable □ Not applicable
Unit: Shares
Number Of Number of Number of Number of
Shares With unlocked shares increased shares with
Name of Limited Sales with limited shares with limited sales Reasons for Date of
Shareholder Condition At sales condition limited sales condition at the limited sales unlocking
The Beginning in current condition in end of the
Of The Period period current period period
According to
the relevant
Lock-up shares provisions of
for directors, shares
Fu Liquan 767,901,735 0 0 767,901,735 supervisors and management of
senior directors,
management supervisors and
senior
management
China Mobile Issuance of
Communication restricted
293,103,400 0 0 293,103,400 April 13, 2026
s Group Co., shares to
Ltd. specific objects
According to
the relevant
Lock-up shares provisions of
for directors, shares
Chen Ailing 53,447,110 0 0 53,447,110 supervisors and management of
senior directors,
management supervisors and
senior
management
According to
the relevant
Lock-up shares provisions of
for directors, shares
Wu Jun 51,879,664 0 0 51,879,664 supervisors and management of
senior directors,
management supervisors and
senior
management
According to
Lock-up shares the relevant
for directors, provisions of
supervisors and shares
senior management of
Wu Jian 1,155,101 0 63,600 1,218,701 management directors,
and restricted supervisors and
shares for senior
equity incentive management as
award well as equity
incentive
Lock-up shares According to
Zhao Yuning 1,106,850 0 0 1,106,850
for directors, the relevant
62
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
supervisors and provisions of
senior shares
management management of
and restricted directors,
shares for supervisors and
equity incentive senior
award management as
well as equity
incentive
According to
Lock-up shares the relevant
for directors, provisions of
supervisors and shares
senior management of
Zhu Jiantang 902,269 0 0 902,269 management directors,
and restricted supervisors and
shares for senior
equity incentive management as
award well as equity
incentive
According to
Lock-up shares the relevant
for directors, provisions of
supervisors and shares
senior management of
Li Zhijie 641,850 0 63,600 705,450 management directors,
and restricted supervisors and
shares for senior
equity incentive management as
award well as equity
incentive
According to
Lock-up shares the relevant
for directors, provisions of
supervisors and shares
senior management of
Xu Zhicheng 598,350 0 63,600 661,950 management directors,
and restricted supervisors and
shares for senior
equity incentive management as
award well as equity
incentive
According to
the relevant
Restricted
provisions of
Zhang shares for
1,600,615 952,615 0 648,000 shares
Xingming equity incentive
management
award
for equity
incentive award
Lock-up shares According to
for directors, the relevant
supervisors and provisions of
Other senior
senior shares
executives and
163,122,612 122,408,667 118,200 40,832,145 management management of
equity incentive
and restricted directors,
objects
shares for supervisors and
equity incentive senior
award management as
63
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
well as equity
incentive
Total 1,335,459,556 123,361,282 309,000 1,212,407,274 -- --
II. Issuance and listing of securities
□ Applicable Not applicable
III. Total number of shareholders and their shareholdings
Unit: Shares
Total Number of Preferred Shareholders
Total Number of Common
(If Any) Whose Voting Rights have been
Shareholders at The End 181,100 0
Recovered at the End of the Reporting
of The Reporting Period
Period
Shareholding list of common shareholders with over 5% shares or top ten common shareholders (excluding shares lent through
refinancing)
Number of Number of Number of Pledges, markings or
common common common freezing
Changes in
Name of Nature of Shareholdi shares held shares held shares held
the
Shareholde Shareholde ng at the end with without
reporting State Of
r r Percentage of the limited limited Quantity
period Shares
reporting sales sales
period conditions condition
Domestic
1,023,868,9 767,901,73 255,967,24 176,700,00
Fu Liquan Natural 31.08% 0 Pledged
80 5 5 0
Person
China
Mobile State-
Communic owned 293,103,40 293,103,40
8.90% 0 0 N/A 0
ations Legal 0 0
Group Co., Person
Ltd.
Domestic
Zhu 159,975,49 159,975,49
Natural 4.86% -200,000 0 N/A 0
Jiangming 0 0
Person
Domestic
Chen
Natural 2.16% 71,262,813 0 53,447,110 17,815,703 Pledged 31,800,000
Ailing
Person
Domestic
Wu Jun Natural 2.10% 69,172,886 0 51,879,664 17,293,222 N/A 0
Person
Hong Kong
Overseas
Securities
Legal 1.99% 65,591,359 1,251,615 0 65,591,359 N/A 0
Clearing
Person
Co. Ltd.
National
Social
Others 1.40% 46,000,000 -8,000,000 0 46,000,000 N/A 0
Security
Fund 103
China Domestic
Securities Non-state-
1.20% 39,611,241 0 0 39,611,241 N/A 0
Finance owned
Co., Ltd. Legal
64
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Person
FORESEA
Life
Insurance
Company Others 1.10% 36,229,124 29,829,124 0 36,229,124 N/A 0
Limited -
participatin
g insurance
New China
Life
Insurance
Company
Limited -
Traditional Others 0.74% 24,321,736 0 0 24,321,736 N/A 0
- general
insurance -
018L-
CT001
Shen
Strategic investors or
general legal entities
China Mobile Communications Group Co., Ltd. as a strategic investor of the Company undertakes
becoming top 10 common
not to transfer any shares of the Company subscribed in any way within 36 months from the first day
shareholders as a result of
of listing of the new shares
the placement of new
shares (if any)
Description of the
association relationship or Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company Is Unaware Of Whether
concerted action of above- Other Shareholders Have Associated Relationship Or Are Persons Acting In Concert
mentioned shareholders
Explanation of the above
shareholders involved in
proxy/trustee voting rights N/A
and abstention from
voting rights
Special note on the
The Company hereby declares that its special securities account for repurchase held 19,819,601
existence of repurchase
common class A stocks as at the end of the reporting period, with a shareholding ratio of 0.60%,
special accounts among
which is not included in the Company's top 10 shareholders without limited sales conditions as
the top 10 shareholders (if
required.
any)
Shareholding of the top ten common shareholders without limited sales condition (excluding shares lent through refinancing and
lock-up shares for senior management)
Type of shares
Number of common shares held without limited sales condition at the
Name of Shareholder Type of
end of the reporting period Quantity
shares
RMB
255,967,24
Fu Liquan 255,967,245 common
5
stock
RMB
159,975,49
Zhu Jiangming 159,975,490 common
0
stock
RMB
Hong Kong Securities
65,591,359 common 65,591,359
Clearing Co. Ltd.
stock
National Social Security RMB
46,000,000 46,000,000
Fund 103 common
65
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
stock
RMB
China Securities Finance
39,611,241 common 39,611,241
Co., Ltd.
stock
FORESEA Life Insurance RMB
Company Limited - 36,229,124 common 36,229,124
participating insurance stock
New China Life Insurance
Company Limited - RMB
Traditional - general 24,321,736 common 24,321,736
insurance - 018L-CT001 stock
Shen
Industrial and
Commercial Bank of
China Limited - Huatai- RMB
PineBridge CSI 300 23,220,730 common 23,220,730
Exchange-traded Open- stock
end Index Securities
Investment Fund
RMB
National Social Security
21,565,980 common 21,565,980
Fund 101
stock
New China Life Insurance
Company Limited - RMB
dividend- personal 19,146,726 common 19,146,726
dividend - 018L-FH002 stock
Shen
Explanation on associated
relationship or persons
acting in concert among
top ten common
shareholders without Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company Is Unaware Of Whether
limited shares, and Other Shareholders Have Associated Relationship Or Are Persons Acting In Concert
between top ten common
shareholders without
limited shares and top ten
common shareholders
Explanation on Top Ten
Common Shareholders’
None
Participation in Securities
Margin Trading (If Any)
Shareholders holding more than 5% of shares, the top 10 shareholders and the top 10 shareholders without limited outstanding shares
participating in the lending of shares through refinancing
Applicable □ Not applicable
Unit: Shares
Shareholders holding more than 5% of shares, the top 10 shareholders and the top 10 shareholders without limited outstanding
shares participating in the lending of shares through refinancing
Shares held in ordinary Shares lent through Shares held in ordinary Shares lent through
accounts and credit refinancing but have not accounts and credit refinancing but have not
Name of
accounts at the beginning been returned yet at the accounts at the end of the been returned yet at the
Shareholde
of the period beginning of the period period end of the period
r (full
name) Proportion Proportion Proportion Proportion
Total Total Total Total
to total to total to total to total
quantity quantity quantity quantity
share share share share
66
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
capital capital capital capital
Industrial
and
Commercia
l Bank of
China
Limited -
Huatai-
PineBridge
14,723,730 0.45% 146,800 0.00% 23,220,730 0.70% 8,800 0.00%
CSI 300
Exchange-
traded
Open-end
Index
Securities
Investment
Fund
Changes in top 10 shareholders and top 10 shareholders without limited outstanding shares over the previous period due to refinancing,
lending/returning
□ Applicable Not applicable
Whether the Company's top ten common shareholders or top ten common shareholders without limited shares agree on any repurchase
transaction in the reporting period
□ Yes No
None of the Company's top ten common shareholders or top ten common shareholders without limited shares agreed on repurchase in
the reporting period.
IV. Shareholding Changes of Directors, Supervisors and Senior Management
□ Applicable Not applicable
There was no change in shareholding of directors, supervisors and senior management of the Company during the reporting period,
see the 2023 Annual Report for more information.
V. Particulars about the Change to the Controlling Shareholders and Actual Controllers
Change of the controlling shareholders in the reporting period
□ Applicable Not applicable
No change has happened to the controlling shareholder in the reporting period of the Company
Change of the actual controller in the reporting period
□ Applicable Not applicable
No change has happened to the actual controller in the reporting period
67
2024 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.
68
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section IX Situation on Corporate Bonds
□ Applicable Not applicable
69
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Section X Financial Report
I. Audit Reports
Whether the semi-annual report has been audited
□ Yes No
The semi-annual report has not been audited.
II. Financial Statements
Units of financial reports in the notes: RMB
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co., Ltd.
June 30, 2024
Unit: RMB
Item Closing Balance Opening Balance
Current Assets:
Cash and Bank Balances 9,597,623,116.53 15,971,005,114.47
Deposit Reservation for Balance
Loans to Banks and Other Financial
Institutions
Trading Financial Assets 370,191,151.06 1,470,000.00
Derivative Financial Assets
Notes receivable 645,460,980.33 813,039,192.75
Accounts receivable 16,654,352,735.18 16,276,803,954.03
Receivables Financing 685,382,779.93 810,713,267.86
Prepayments 279,208,527.96 189,388,716.99
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves
Receivable
Other Receivables 317,357,677.02 337,524,688.36
Including: Interest receivable
Dividends Receivable 5,194,653.19 5,784,225.02
Buying Back the Sale of Financial
Assets
Inventory 5,711,951,831.83 5,332,608,544.02
Including: Data resources
Contract Assets 114,529,987.89 86,714,216.34
Holding for-sale assets
Non-current Assets Due within 1 Year 257,902,249.66 303,454,116.40
70
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Other Current Assets 659,131,594.23 939,374,868.31
Subtotal of Current Assets 35,293,092,631.62 41,062,096,679.53
Non-current Assets:
Granting of loans and advances
Investment in Creditor's Rights
Investment in Other Creditor's Rights
Long-term Receivables 838,954,472.02 946,659,309.70
Long-term Equity Investment 731,631,231.34 727,453,629.75
Investment in Other Equity
Instruments
Other Non-current Financial Assets 1,008,428,084.96 1,535,742,385.71
Investment Property 141,845,947.97 129,637,004.00
Fixed Assets 4,988,539,382.64 4,937,180,876.88
Projects under Construction 1,169,264,949.25 1,008,612,408.49
Productive Biological Assets
Oil and gas assets
Right-of-use assets 276,133,848.74 299,202,586.56
Intangible Assets 581,418,393.51 594,679,018.11
Including: Data resources
Development Expenditure
Including: Data resources
Goodwill 6,615,294.18 6,615,294.18
Long-term Deferred Expenses 120,246,318.54 135,335,273.95
Deferred Income Tax Assets 1,183,984,525.09 1,287,903,482.65
Other Non-Current assets 3,869,620,772.33 210,809,264.49
Subtotal of Non-current Assets 14,916,683,220.57 11,819,830,534.47
Total assets 50,209,775,852.19 52,881,927,214.00
Current Liabilities:
Short-term loan 800,973,205.56 957,426,330.18
Borrowings from the Central Bank
Borrowings from Banks and Other
Financial Institutions
Transactional financial liabilities 1,196,685.79 61,400.12
Derivative Financial Liabilities
Notes Payable 3,065,463,328.91 3,296,294,946.26
Accounts Payable 5,671,851,750.01 5,815,123,195.55
Received Prepayments
Contract liabilities 1,019,804,820.76 1,194,534,307.04
Financial Assets Sold for Repurchase
Deposit Taking and Interbank Deposit
Receiving from Vicariously Traded
Securities
Receiving from Vicariously Sold
71
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Securities
Payroll payable 928,710,673.23 1,933,955,631.12
Tax Payable 367,566,702.98 1,243,482,361.08
Other Payables 754,681,225.56 812,424,146.52
Including: Interest payable
Dividends Payable 38,078,985.18 23,667,047.02
Service Charge and Commission
Payable
Reinsurance Accounts Payable
Holding for-sale liabilities
Non-current Liabilities Due within 1
238,351,093.19 901,722,028.75
Year
Other Current Liabilities 115,583,416.26 155,182,705.02
Subtotal of Current Liabilities 12,964,182,902.25 16,310,207,051.64
Non-current Liabilities:
Insurance Contract Reserves
Long-term loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease liabilities 137,671,323.55 176,580,049.57
Long-term Payables
Long-term payroll payable
Expected Liabilities 226,957,654.66 224,542,626.90
Deferred Income 165,206,721.46 166,711,673.04
Deferred Income Tax Liabilities 666,442.91 737,367.19
Other Non-current Liabilities 115,599,279.40 119,054,046.66
Subtotal of Non-current Liabilities 646,101,421.98 687,625,763.36
Total Liabilities 13,610,284,324.23 16,997,832,815.00
Shareholders' Equity:
Share Capital 3,292,334,310.00 3,294,468,990.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 7,214,052,805.06 7,124,125,996.49
Less: Treasury Shares 714,868,936.48 746,699,863.45
Other Comprehensive Incomes 73,215,411.74 65,993,020.83
Special Reserves
Surplus Reserves 1,647,234,495.00 1,647,234,495.00
General Risk Reserves
Undistributed Profits 23,894,716,517.09 23,334,051,186.55
Total Shareholders' Equity Attributable
35,406,684,602.41 34,719,173,825.42
to the Parent Company
Minority Shareholders' Equity 1,192,806,925.55 1,164,920,573.58
Total Shareholders' Equity 36,599,491,527.96 35,884,094,399.00
Total Liabilities and Shareholders' Equity 50,209,775,852.19 52,881,927,214.00
Statutory Representative: Fu Liquan Person in charge of accounting: Xu Qiaofen
72
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Person in charge of the accounting institution: Zhu Zhuling
2. Balance Sheet of the Parent Company
Unit: RMB
Item Closing Balance Opening Balance
Current Assets:
Cash and Bank Balances 4,823,113,000.32 9,624,679,601.93
Trading Financial Assets 369,806,680.00
Derivative Financial Assets
Notes receivable 12,009,788.50 368,774,122.18
Accounts receivable 4,033,842,422.27 6,640,946,970.53
Receivables Financing 881,007,759.44 698,297,307.69
Prepayments 27,544,898.28 31,587,070.13
Other Receivables 13,952,577,075.18 11,736,609,900.41
Including: Interest receivable
Dividends Receivable 1,243,275.00
Inventory 236,230,319.84 447,927,880.25
Including: Data resources
Contract Assets 19,137,672.35 12,985,980.46
Holding for-sale assets
Non-current Assets Due within 1 Year 6,642,328.82 10,032,002.75
Other Current Assets 8,858,815.12 348,700,342.87
Subtotal of Current Assets 24,370,770,760.12 29,920,541,179.20
Non-current Assets:
Investment in Creditor's Rights
Investment in Other Creditor's Rights
Long-term Receivables 4,610,313.34 5,359,168.22
Long-term Equity Investment 8,228,910,359.44 8,191,802,935.85
Investment in Other Equity
Instruments
Other Non-current Financial Assets 985,958,084.96 1,513,272,385.71
Investment Property 18,045,113.23 1,817,925.82
Fixed Assets 1,742,924,231.55 1,814,451,576.60
Projects under Construction 7,600,494.74 3,556,445.35
Productive Biological Assets
Oil and gas assets
Right-of-use assets 81,827,306.62 94,348,785.64
Intangible Assets 131,732,476.27 140,815,043.41
Including: Data resources
Development Expenditure
Including: Data resources
Goodwill
73
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Long-term Deferred Expenses 60,260,976.59 66,926,895.55
Deferred Income Tax Assets 89,209,440.95 1,008,929.69
Other Non-Current assets 2,682,705,941.16 18,782,264.32
Subtotal of Non-current Assets 14,033,784,738.85 11,852,142,356.16
Total assets 38,404,555,498.97 41,772,683,535.36
Current Liabilities:
Short-term loan 600,266,666.67
Transactional financial liabilities
Derivative Financial Liabilities
Notes Payable 524,141,901.77 221,026,659.43
Accounts Payable 648,548,451.41 884,748,949.13
Received Prepayments
Contract liabilities 89,774,841.05 125,050,543.58
Payroll payable 619,632,771.35 1,354,637,328.45
Tax Payable 131,780,082.94 1,008,009,000.74
Other Payables 1,033,335,386.68 1,193,481,602.34
Including: Interest payable
Dividends Payable 38,078,985.18 23,667,047.02
Holding for-sale liabilities
Non-current Liabilities Due within 1
136,933,119.36 787,284,456.59
Year
Other Current Liabilities 11,715,416.42 22,753,109.13
Subtotal of Current Liabilities 3,195,861,970.98 6,197,258,316.06
Non-current Liabilities:
Long-term loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease liabilities 36,601,518.69 48,328,489.38
Long-term Payables
Long-term payroll payable
Expected Liabilities 1,545,562.95 1,550,020.50
Deferred Income
Deferred Income Tax Liabilities
Other Non-current Liabilities 138,557.51 144,070.84
Subtotal of Non-current Liabilities 38,285,639.15 50,022,580.72
Total Liabilities 3,234,147,610.13 6,247,280,896.78
Shareholders' Equity:
Share Capital 3,292,334,310.00 3,294,468,990.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 6,967,985,906.19 6,881,563,679.88
Less: Treasury Shares 714,868,936.48 746,699,863.45
Other Comprehensive Incomes
74
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Special Reserves
Surplus Reserves 1,647,234,495.00 1,647,234,495.00
Undistributed Profits 23,977,722,114.13 24,448,835,337.15
Total Shareholders' Equity 35,170,407,888.84 35,525,402,638.58
Total Liabilities and Shareholders' Equity 38,404,555,498.97 41,772,683,535.36
3. Consolidated Income Statement
Unit: RMB
Item 2024 Semi-Annual 2023 Semi-Annual
I. Total Operating Revenue 14,866,622,569.81 14,633,547,280.64
Including: Operating revenue 14,866,622,569.81 14,633,547,280.64
Interest Income
Earned Premiums
Service Charge and
Commission Income
II. Total Operating Cost 13,262,791,211.99 12,639,678,879.61
Including: Operating Cost 8,731,425,638.53 8,363,987,899.64
Interest Expenditures
Service Charge and
Commission Expenses
Surrender Value
Net Claims Paid
Net Amount of Withdrawn
Reserve for Insurance Liability
Policyholder Dividend
Expense
Reinsurance Cost
Taxes and Surcharges 100,129,032.87 116,183,814.53
Sales Expenses 2,268,236,496.11 2,190,619,243.64
Administration expenses 511,481,522.31 574,719,904.27
Research and development
1,901,330,160.90 1,814,620,715.06
expense
Financial expenses -249,811,638.73 -420,452,697.53
Including: Interest expense 28,989,823.89 58,636,214.41
Interest Income 236,240,691.12 139,792,759.54
Add: Other Incomes 510,212,853.42 362,570,654.41
Investment Income (Mark "-" for
140,115,897.54 -14,144,210.12
Loss)
Including: Investment
Income from Affiliates and Joint 16,910,626.79 -154,531,486.76
Ventures
Profits from
recognition Termination of Financial -755,702.55 -196,693.85
Assets at Amortized Cost
Exchange Gains (Mark "-" for
Loss)
75
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Profit of Net Exposure Hedging
(Mark "-" for Loss)
Incomes from changes in fair
-159,981,988.74 135,198,336.41
value (Mark "-" for loss)
Credit Impairment Losses (Mark
-214,225,008.79 -188,589,781.56
"-" for Loss)
Asset Impairment Losses (Mark
-54,847,036.23 -51,813,530.75
"-" for Loss)
Asset Disposal Income (Mark "-"
1,086,545.09 1,762,054.22
for Loss)
III. Operating Profit (Mark "-" for loss) 1,826,192,620.11 2,238,851,923.64
Add: Non-operating revenue 6,403,965.47 7,290,762.49
Less: Non-operating expenditures 3,057,915.50 4,137,712.72
IV. Total Profit (Mark "-" for total loss) 1,829,538,670.08 2,242,004,973.41
Less: Income tax expense -33,838,461.10 201,745,311.54
V. Net Profit (Mark "-" for Net Loss) 1,863,377,131.18 2,040,259,661.87
(I) Classified by operation continuity
1. Net Profit as a Going Concern
1,863,377,131.18 2,040,259,661.87
(Mark "-" for Net Loss)
2. Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
(II) Classified by the attribution of
ownership
1. Net Profit Attributable to
Shareholders of Parent Company (Mark 1,809,589,445.46 1,976,018,373.13
"-" for Net Loss)
2. Minority Shareholders' Profit and
53,787,685.72 64,241,288.74
Loss (Mark "-" for Net Loss)
VI. Net Amount of Other Comprehensive
7,219,753.97 4,075,172.57
Incomes after Tax
Net Amount of Other Comprehensive
Incomes after Tax Attributable to the 7,222,390.91 4,169,304.17
Parent Company's Owner
(I) Other comprehensive income
that cannot be reclassified into profit or
loss
1. Re-measure the variation of the
defined benefit plan
2. Other comprehensive income
that cannot be transferred to P/L under
the equity method
3. Changes in the fair value of
investment in other equity instruments
4. Changes in the fair value of the
credit risk of the enterprise
5. Others
(II) Other comprehensive income
7,222,390.91 4,169,304.17
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
76
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
into other comprehensive income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge reserves
6. Currency conversion difference 7,222,390.91 4,169,304.17
7. Others
Net Amount of Other Comprehensive
Incomes After Tax Attributable to -2,636.94 -94,131.60
Minority Shareholders
VII. Total Comprehensive Income 1,870,596,885.15 2,044,334,834.44
Total Comprehensive Income
Attributable to the Parent Company's 1,816,811,836.37 1,980,187,677.30
Owner
Total Comprehensive Income
53,785,048.78 64,147,157.14
Attributable to Minority Shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.56 0.63
(II) Diluted Earnings per Share 0.56 0.63
Statutory 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 2024 Semi-Annual 2023 Semi-Annual
I. Operating Revenue 3,332,618,836.58 4,184,317,063.89
Less: Operating Cost 579,541,013.13 719,784,720.11
Taxes and Surcharges 52,833,473.57 54,229,390.73
Sales Expenses 993,694,657.59 1,015,381,496.95
Administration expenses 288,777,899.34 317,706,226.18
Research and development
1,386,263,752.68 1,289,644,332.69
expense
Financial expenses -159,912,332.30 -36,661,815.34
Including: Interest expense 18,783,651.94 46,683,379.85
Interest Income 139,821,641.18 81,624,138.58
Add: Other Incomes 430,065,275.63 276,803,489.04
Investment Income (Mark "-" for
7,008,809.30 -188,877,854.91
Loss)
Including: Investment Income
-11,449,222.10 -189,891,800.93
from Affiliates and Joint Ventures
Profits from
Derecognition of Financial Assets at -2,345,573.99 -3,367,354.25
Amortized Cost (Mark "-" for Loss)
Profit of Net Exposure Hedging
(Mark "-" for Loss)
Incomes from changes in fair
-162,212,141.92 133,060,297.91
value (Mark "-" for loss)
Credit Impairment Losses (Mark
-19,022,388.30 -9,113,671.32
"-" for Loss)
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Asset Impairment Losses (Mark
-2,567,600.12 1,499,115.65
"-" for Loss)
Asset Disposal Income (Mark "-"
227,007.77 432,756.61
for Loss)
II. Operating Profit (Mark "-" for Loss) 444,919,334.93 1,038,036,845.55
Add: Non-operating revenue 2,832,286.45 756,053.99
Less: Non-operating expenditures 670,408.53 682,163.61
III. Total Profit (Mark "-" for Total Loss) 447,081,212.85 1,038,110,735.93
Less: Income tax expense -330,729,679.05 -14,143,772.32
IV. Net Profit (Mark "-" for Net Loss) 777,810,891.90 1,052,254,508.25
(I) Net Profit as a Going Concern
777,810,891.90 1,052,254,508.25
(Mark "-" for Net Loss)
(II) Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
V. Net Amount of Other Comprehensive
Incomes After Tax
(I) Other comprehensive income
that cannot be reclassified into profit or
loss
1. Re-measure the variation of the
defined benefit plan
2. Other comprehensive income
that cannot be transferred to P/L under
the equity method
3. Changes in the fair value of
investment in other equity instruments
4. Changes in the fair value of the
credit risk of the enterprise
5. Others
(II) Other comprehensive income
that will be reclassified as P/L
1. Other comprehensive income
that can be transferred to P/L under the
equity method
2.Changes in the fair value of
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 conversion difference
7. Others
VI. Total Comprehensive Income 777,810,891.90 1,052,254,508.25
VII. Earnings per Share:
(I) Basic Earnings per Share 0.24 0.34
(II) Diluted Earnings per Share 0.24 0.34
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2024 Semi-Annual 2023 Semi-Annual
I. Cash Flow Generated by Operational
78
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Activities:
Cash from Sales of Merchandise and
15,999,801,747.36 15,419,789,484.32
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 487,693,658.24 562,339,362.06
Other Received Cash Related to
768,065,566.02 620,225,332.09
Operational Activities
Subtotal of cash inflow from operational
17,255,560,971.62 16,602,354,178.47
activities
Cash Paid for Merchandise and
10,837,561,772.87 10,753,333,485.70
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 4,320,315,534.52 3,776,397,158.68
Cash Paid for Taxes and Surcharges 1,493,582,479.14 816,894,394.93
Other Paid Cash Related to
1,111,286,805.80 993,032,393.45
Operational Activities
Subtotal of cash outflow from
17,762,746,592.33 16,339,657,432.76
operational activities
Net cash flow generated by operating
-507,185,620.71 262,696,745.71
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
481,137,746.89 999,781,208.81
Investments
79
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Cash Arising from Investment
12,084,508.88 14,922,299.29
Incomes
Net Cash Arising from Disposal of
Fixed Assets, Intangible Assets and 334,216.87 2,406,406.21
Other Long-term Assets
Net Cash Arising from Disposal of
73,178,296.48
Subsidiaries and Other Business Units
Other Received Cash Related to
23,793,990.04 6,756,472.78
Investment Activities
Subtotal of cash inflow from investment
590,528,759.16 1,023,866,387.09
activities
Cash Paid for Purchase and
Construction of Fixed Assets, Intangible 478,507,303.15 639,960,429.28
Assets and Other Long-term Assets
Cash Paid for Investments 3,845,358,576.51 518,446,286.75
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of
Subsidiaries and Other Business Units
Other Paid Cash Related to Investment
5,398,155.52 36,957,997.39
Activities
Subtotal of cash outflows from
4,329,264,035.18 1,195,364,713.42
investment activities
Net amount of cash flow generated by
-3,738,735,276.02 -171,498,326.33
investment activities
III. Cash Flow from Financing Activities:
Cash Arising from Absorbing
5,389,711,811.41
Investments
Including: Cash Arising from
Subsidiaries Absorbing Investments by 293,712,651.41
Minority Shareholders
Cash Arising from Borrowings 1,119,437,200.00 1,212,246,016.69
Other Received Cash Related to
Financing Activities
Subtotal of cash inflow from financing
1,119,437,200.00 6,601,957,828.10
activities
Cash Paid for Debts Repayment 1,960,841,548.08 1,627,680,609.51
Cash Paid for Distribution of
Dividends and Profits or Payment of 1,256,629,266.40 836,082,043.03
Interests
Including: Including: Dividends and
Profits Paid to Minority Shareholders by 1,104,770.95
Subsidiaries
Other Paid Cash Related to Financing
133,019,499.80 355,403,014.42
Activities
Subtotal of cash outflow from financing
3,350,490,314.28 2,819,165,666.96
activities
Net cash flow generated by financing
-2,231,053,114.28 3,782,792,161.14
activities
IV. Impact of Fluctuation in Exchange
90,334,024.57 45,593,862.66
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-6,386,639,986.44 3,919,584,443.18
Equivalents
Add: Cash and Cash Equivalents at the
15,880,659,594.95 7,878,465,052.63
Commencement of the Period
VI. Cash and Cash Equivalents at the
9,494,019,608.51 11,798,049,495.81
End of the Period
80
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2024 Semi-Annual 2023 Semi-Annual
I. Cash Flow Generated by Operational
Activities:
Cash from Sales of Merchandise and
6,400,564,483.19 4,641,334,206.69
Provision of Services
Tax Refund
Other Received Cash Related to
596,191,681.83 413,453,400.08
Operational Activities
Subtotal of cash inflow from operational
6,996,756,165.02 5,054,787,606.77
activities
Cash Paid for Merchandise and
333,875,102.97 347,160,343.46
Services
Cash Paid to and for Employees 2,560,097,319.34 2,289,406,464.99
Cash Paid for Taxes and Surcharges 1,029,098,229.23 391,459,849.51
Other Paid Cash Related to
629,025,957.64 483,866,340.52
Operational Activities
Subtotal of cash outflow from
4,552,096,609.18 3,511,892,998.48
operational activities
Net cash flow generated by operating
2,444,659,555.84 1,542,894,608.29
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
484,317,242.81 696,333,948.05
Investments
Cash Arising from Investment
39,647.97 3,522,690.73
Incomes
Net Cash Arising from Disposal of
Fixed Assets, Intangible Assets and 13,312,131.73 4,782,857.98
Other Long-term Assets
Net Cash Arising from Disposal of
Subsidiaries and Other Business Units
Other Received Cash Related to
7,828,500.00
Investment Activities
Subtotal of cash inflow from investment
505,497,522.51 704,639,496.76
activities
Cash Paid for Purchase and
Construction of Fixed Assets, Intangible 87,357,677.25 185,751,851.23
Assets and Other Long-term Assets
Cash Paid for Investments 2,833,198,571.53 3,177,146,235.00
Net Cash Paid for Acquisition of
Subsidiaries and Other Business Units
Other Paid Cash Related to Investment
Activities
Subtotal of cash outflows from
2,920,556,248.78 3,362,898,086.23
investment activities
Net amount of cash flow generated by
-2,415,058,726.27 -2,658,258,589.47
investment activities
III. Cash Flow from Financing Activities:
Cash Arising from Absorbing
5,095,999,160.00
Investments
Cash Arising from Borrowings
Other Received Cash Related to
518,392,829.86 1,431,261,852.19
Financing Activities
Subtotal of cash inflow from financing 518,392,829.86 6,527,261,012.19
81
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
activities
Cash Paid for Debts Repayment 1,250,000,000.00 553,632,141.60
Cash Paid for Distribution of
Dividends and Profits or Payment of 1,244,407,410.64 819,579,768.57
Interests
Other Paid Cash Related to Financing
2,898,655,199.47 1,547,840,710.10
Activities
Subtotal of cash outflow from financing
5,393,062,610.11 2,921,052,620.27
activities
Net cash flow generated by financing
-4,874,669,780.25 3,606,208,391.92
activities
IV. Impact of Fluctuation in Exchange
39,318,887.23 228,637.48
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-4,805,750,063.45 2,491,073,048.22
Equivalents
Add: Cash and Cash Equivalents at the
9,581,289,905.32 3,933,169,520.92
Commencement of the Period
VI. Cash and Cash Equivalents at the
4,775,539,841.87 6,424,242,569.14
End of the Period
82
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
2024 Semi-Annual
Shareholders' Equity Attributable to the Parent Company's Owner
Other Equity
Instruments Gener
Item Other Specia Minority Total
Pref Perp Less: al Shareholder Shareholder
Share Capital Comprehe l Surplus Undistribute
erre etua Treasury Risk Others Subtotal s' Equity s' Equity
Capital Oth Reserves nsive Reser Reserves d Profits
d l Shares Reser
ers Incomes ves
Stoc Bon ves
ks ds
I. Balance at
3,294,468, 7,124,125,9 746,699, 65,993,02 1,647,234,4 23,334,051, 34,719,173, 1,164,920,5 35,884,094,
the End of
990.00 96.49 863.45 0.83 95.00 186.55 825.42 73.58 399.00
Last Year
Add:
Changes in
Accounting
Policies
C
orrection of
Errors in the
Previous
Period
Ot
hers
II. Balance
3,294,468, 7,124,125,9 746,699, 65,993,02 1,647,234,4 23,334,051, 34,719,173, 1,164,920,5 35,884,094,
at the Start
990.00 96.49 863.45 0.83 95.00 186.55 825.42 73.58 399.00
of This Year
III. - 89,926,808. - 7,222,390. 560,665,330 687,510,776 27,886,351. 715,397,128
Increases or 2,134,680. 57 31,830,9 91 .54 .99 97 .96
83
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Decreases in 00 26.97
This Period
(Mark "-"
for
Decreases)
(I) Total
7,222,390. 1,809,589,4 1,816,811,8 53,785,048. 1,870,596,8
Comprehens
91 45.46 36.37 78 85.15
ive Income
(II)
Shareholder
s' - -
89,723,701. 119,419,948 23,724,480. 143,144,429
Contributio 2,134,680. 31,830,9
68 .65 56 .21
n and 00 26.97
Reduction
in Capital
1． Commo
- - -
n stock 14,411,938. 14,411,938.
2,134,680. 15,284,308. 31,830,9
invested by 17 17
00 80 26.97
the owner
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share-
based
Payments 105,008,01 105,008,010 23,724,480. 128,732,491
Recorded 0.48 .48 56 .04
into
Shareholder
s' Equity
4． Others
- - -
(III) Profit
1,248,924,1 1,248,924,1 1,248,924,1
Distribution
14.92 14.92 14.92
84
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
1． Appropr
iation of
Surplus
Reserves
2． Appropr
iation of
General
Risk
Reserves
3． Distribu
tion to - - -
Owners (or 1,248,924,1 1,248,924,1 1,248,924,1
Shareholder 14.92 14.92 14.92
s)
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
Capital)
3． Surplus
Reserves
Covering
Losses
85
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
4． Carry-
forward
retained
earnings of
the variation
of the
defined
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehens
ive Income
6． Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
- -
(VI) Others 203,106.89 203,106.89 49,623,177. 49,420,070.
37 48
IV. Balance
at the End 3,292,334, 7,214,052,8 714,868, 73,215,41 1,647,234,4 23,894,716, 35,406,684, 1,192,806,9 36,599,491,
of This 310.00 05.06 936.48 1.74 95.00 517.09 602.41 25.55 527.96
Period
Amount of the previous year
Unit: RMB
2023 Semi-Annual
Item
Shareholders' Equity Attributable to the Parent Company's Owner Minority Total
86
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Other Equity Shareholder Shareholder
Instruments Gener s' Equity s' Equity
Other Specia
Pref Perp Less: al
Share Capital Comprehe l Surplus Undistribute
erre etua Treasury Risk Others Subtotal
Capital Oth Reserves nsive Reser Reserves d Profits
d l Shares Reser
ers Incomes ves
Stoc Bon ves
ks ds
I. Balance at
3,033,161, 3,950,209,2 609,859, 36,942,33 1,553,691,0 17,872,654, 25,836,798, 381,572,840 26,218,371,
the End of
170.00 43.25 632.00 9.77 05.92 791.67 918.61 .72 759.33
Last Year
Add:
Changes in
Accounting
Policies
C
orrection of
Errors in the
Previous
Period
Ot
hers
II. Balance
3,033,161, 3,950,209,2 609,859, 36,942,33 1,553,691,0 17,872,654, 25,836,798, 381,572,840 26,218,371,
at the Start
170.00 43.25 632.00 9.77 05.92 791.67 918.61 .72 759.33
of This Year
III.
Increases or
Decreases in -
261,307,82 4,818,567,3 4,169,304. 1,182,051,3 6,535,896,7 297,850,623 6,833,747,4
This Period 269,800,
0.00 40.21 17 46.54 94.64 .95 18.59
(Mark "-" 983.72
for
Decreases)
(I) Total
4,169,304. 1,976,018,3 1,980,187,6 64,147,157. 2,044,334,8
Comprehens
17 73.13 77.30 14 34.44
ive Income
(II) 261,307,82 4,726,973,1 - 5,258,081,9 322,856,853 5,580,938,8
Shareholder 0.00 77.93 269,800, 81.65 .27 34.92
87
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
s' 983.72
Contributio
n and
Reduction
in Capital
1． Commo
-
n stock 261,307,82 4,569,072,8 5,100,181,6 290,412,651 5,390,594,2
269,800,
invested by 0.00 31.92 35.64 .41 87.05
983.72
the owner
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share-
based
Payments 157,900,34 157,900,346 32,444,201. 190,344,547
Recorded 6.01 .01 86 .87
into
Shareholder
s' Equity
4． Others
- - -
(III) Profit
793,967,026 793,967,026 793,967,026
Distribution
.59 .59 .59
1． Appropr
iation of
Surplus
Reserves
2． Appropr
iation of
General
Risk
Reserves
3． Distribu - - -
88
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
tion to 793,967,026 793,967,026 793,967,026
Owners (or .59 .59 .59
Shareholder
s)
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
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the
defined
benefit plan
5． Other
Carry-
forward
89
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Retained
Earnings of
the
Comprehens
ive Income
6． Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
-
91,594,162. 91,594,162. 2,440,775.8
(VI) Others 89,153,386.
28 28 2
46
IV. Balance
at the End 3,294,468, 8,768,776,5 340,058, 41,111,64 1,553,691,0 19,054,706, 32,372,695, 679,423,464 33,052,119,
of This 990.00 83.46 648.28 3.94 05.92 138.21 713.25 .67 177.92
Period
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
2024 Semi-Annual
Other Equity Instruments Other
Item Special Surplus Total
Prefer Perpet Compre Undistribute
Share Capital Capital Reserves Less: Treasury Shares Reserve Reserve Others Shareholder
red ual Others hensive d Profits
s s s' Equity
Stocks Bonds Incomes
I. Balance at
3,294,468,99 1,647,23 24,448,835, 35,525,402,
the End of 6,881,563,679.88 746,699,863.45
0.00 4,495.00 337.15 638.58
Last Year
Add:
90
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Changes in
Accounting
Policies
C
orrection of
Errors in the
Previous
Period
Ot
hers
II. Balance
3,294,468,99 1,647,23 24,448,835, 35,525,402,
at the Start 6,881,563,679.88 746,699,863.45
0.00 4,495.00 337.15 638.58
of This Year
III.
Increases or
Decreases in - -
-
This Period 86,422,226.31 -31,830,926.97 471,113,223 354,994,749
2,134,680.00
(Mark "-" .02 .74
for
Decreases)
(I) Total
777,810,891 777,810,891
Comprehens
.90 .90
ive Income
(II)
Shareholder
s'
- 114,414,050
Contributio 84,717,803.29 -31,830,926.97
2,134,680.00 .26
n and
Reduction
in Capital
1． Commo
n stock - 14,411,938.
-15,284,308.80 -31,830,926.97
invested by 2,134,680.00 17
the owner
2． Capital
Invested by
91
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Holders of
Other
Equity
Instruments
3． Amount
of Share-
based
Payments 100,002,112
100,002,112.09
Recorded .09
into
Shareholder
s' Equity
4． Others
- -
(III) Profit
1,248,924,1 1,248,924,1
Distribution
14.92 14.92
1． Appropr
iation of
Surplus
Reserves
2． Distribu
tion to - -
Owners (or 1,248,924,1 1,248,924,1
Shareholder 14.92 14.92
s)
3． Others
(IV) Internal
Carry-
forward of
Shareholder
s' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
92
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the
defined
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehens
ive Income
6． Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
1,704,423.0
(VI) Others 1,704,423.02
2
93
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
IV. Balance
at the End 3,292,334,31 1,647,23 23,977,722, 35,170,407,
6,967,985,906.19 714,868,936.48
of This 0.00 4,495.00 114.13 888.84
Period
Amount of the previous year
Unit: RMB
2023 Semi-Annual
Other Equity Instruments
Item Other Total
Prefer Perpet Capital Less: Treasury Special Surplus Undistributed
Share Capital Comprehens Others Shareholders'
red ual Others Reserves Shares Reserves Reserves Profits
ive Incomes Equity
Stocks Bonds
I. Balance at
3,033,161,17 3,788,412,149. 1,553,691,005 18,562,292,10 26,327,696,796.
the End of 609,859,632.00
0.00 09 .92 3.53 54
Last Year
Add:
Changes in
Accounting
Policies
C
orrection of
Errors in the
Previous
Period
Ot
hers
II. Balance
3,033,161,17 3,788,412,149. 1,553,691,005 18,562,292,10 26,327,696,796.
at the Start 609,859,632.00
0.00 09 .92 3.53 54
of This Year
III.
Increases or
Decreases in 261,307,820. 4,749,700,753. 258,287,481.6 5,539,097,039.2
-269,800,983.72
This Period 00 86 6 4
(Mark "-"
for
94
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Decreases)
(I) Total
1,052,254,508 1,052,254,508.2
Comprehens
.25 5
ive Income
(II)
Shareholder
s'
261,307,820. 4,718,336,754. 5,249,445,558.0
Contributio -269,800,983.72
00 33 5
n and
Reduction
in Capital
1． Commo
n stock 261,307,820. 4,569,072,831. 5,100,181,635.6
-269,800,983.72
invested by 00 92 4
the owner
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share-
based
Payments
149,263,922.41 149,263,922.41
Recorded
into
Shareholder
s' Equity
4． Others
-
(III) Profit
793,967,026.5 -793,967,026.59
Distribution
9
1． Appropr
iation of
Surplus
Reserves
95
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
2． Distribu
tion to -
Owners (or 793,967,026.5 -793,967,026.59
Shareholder 9
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-
96
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
forward
Retained
Earnings of
the
Comprehens
ive Income
6． Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
(VI) Others 31,363,999.53 31,363,999.53
IV. Balance
at the End 3,294,468,99 8,538,112,902. 1,553,691,005 18,820,579,58 31,866,793,835.
340,058,648.28
of This 0.00 95 .92 5.19 78
Period
97
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
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 stock corporation established on the basis of overall change of the former Hangzhou Dahua Information Technology Co.,
Ltd. It was co-founded by five natural persons, including Fu Liquan, Chen Ailing, Zhu Jiangming, Liu Yunzhen and Chen Jianfeng.
On April 22, 2008, the Company issued 16.8 million shares of common stock in RMB to the general public for the first time under the
approval document No. 573 [2008] Securities Regulatory Issuance, issued by China Securities Regulatory Commission ("CSRC"). It
was listed on Shenzhen Stock Exchange on May 20, 2008 with a registered capital of RMB 66.8 million and the change registration
filed with Administration for Industry and Commerce was completed on May 23, 2008. The Company's unified social credit code is
91330000727215176K. The Company falls within the intelligent Internet of Things industry.
As of Sunday, June 30, 2024, the Company has issued a total of 3,292,334,310 shares, with a registered capital of RMB
3,292,334,310.00, registering its address at: No.1187, Bin’an Road, Binjiang District, Hangzhou, and headquarters at: No. 1399 Bixing
Road, Binjiang District, Hangzhou.
The Company mainly engaged in the following operating activities: The research and development, production, and sales of smart IoT
products, provision of video-centered smart IoT solutions and operational services.
The actual controllers of the Company are Fu Liquan and Chen Ailing.
This financial statement has been approved by Board of Directors on August 23, 2024.
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
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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2024 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 compa ny as
at June 30, 2024 and the operating results and cash flows of the merged companies and the parent company in half of year 2024.
2. Accounting period
The fiscal year of the Company is from January 1 to December 31 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 functional
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. Determination Method and Selection Basis of Importance Standard
Applicable □ Not applicable
Item Importance standards
Accounts receivable with significant single provision for bad Individual accruals of 0.5% of total assets at the end of the
debt reserves period
Bad debts recovered or reversed of the individual receivables in
Significant amount of recovered or reversed bad debt provision
the period in excess of 0.5% of the total assets at the end of the
of accounts receivable in this period
period
Write-off of individual receivables in excess of 0.5 per cent of
Write-off of important accounts receivable
total assets at the end of the period
Important Projects under Construction Project investment budget in excess of 0.5% of total assets
Significant prepayments aged over 1 year Prepayments over 1 year in excess of 0.1% of total assets
Significant accounts payable aged over 1 year Payables over 1 year in excess of 0.5% of total assets
Other significant payable aged over 1 year Receivables over 1 year in excess of 0.5% of total assets
Contractual liabilities over 1 year in excess of 0.5% of total
Significant contractual liabilities over 1 year
assets
Cash Flow from Significant Investment Activities Projects with cash flow exceeding 5% of total assets
Overseas operating entities with one of their total assets/total
Significant overseas operating entities
revenues/total profits exceeding 15% of the Group's
Non-wholly owned subsidiaries with one of their total
Important non-wholly owned subsidiaries
assets/total revenues/total profits exceeding 15% of the Group's
Income from investments in joint ventures or associates
Important joint ventures or associates exceeding 10% of the latest audited net profit of the listed
company
99
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
6. The accounting treatment of business combinations involving enterprises under common control and
business combinations not involving enterprises under common control
Business combination 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 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.
7. Judgment Criteria for Control Preparation Method of Consolidated Financial Statements
(1) Judgment criteria for control
The scope of consolidation of the consolidated financial statements is based on controlling interests and includes the Company and all
the subsidiaries. Control means that the Company has the power with respect to the investee to obtain variable returns by engaging in
relevant activities of the investee, and has the ability to influence the amount of its returns by applying its power with re spect to the
investee.
(2) Preparation method of consolidated financial statements
The Company treats the enterprise group as a single accounting entity and prepares the consolidated financial statements in accordance
with the unified accounting policy to reflect the Group's overall financial position, operating results, and cash flow. The influence from
the internal transactions between the Company and the subsidiaries or between different subsidiaries shall be eliminated. Internal
transactions show that impairment loss of relevant assets shall be recognized as such loss in full. In preparing the consolidated financial
statements, where the accounting policies and the accounting periods are inconsistent between the Company and subsidiaries, the
financial statements of subsidiaries are adjusted in accordance with the accounting policies and accounting period of the Company.
The shares belonging to minority shareholders in owner's equity, the net profit or loss and the comprehensive income of the subsidiary
of the current period are presented separately under the owners' equity in the consolidated balance sheet, the net profits, and the total
comprehensive income in the consolidated income statement respectively. Where losses attributable to the minority shareholders of a
subsidiary of the current period exceed the minority shareholders' interest entitled in the shareholders' equity of the subsidiary at the
beginning of the period, the excess shall be offset against the equity of minority shareholders.
100
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
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
merged parties are under common control, and shall be written down to the opening balance retained earnings or current profit or loss
in the comparative reporting period.
Additional subsidiaries or business due to business combination involving entities not under common control during the reporting
period will be included in the consolidated financial statements as of the date of acquisition on the basis of the fair value of the
identifiable assets, liabilities or contingent liabilities determined on the date of acquisition.
In connection with imposing control over the investee not under common control due to additional investment and other reasons, the
equity of acquiree held before acquisition date shall be remeasured at the fair value of such equity on the acquisition date and the
difference between fair value and book value shall be recognized as investment income in current period. Other comprehensive income
that may later be reclassified into profit or loss and changes in other owner's equity accounted by equity method contained in the
acquiree's equity held before the acquisition date shall be transferred to current investment gains on the date of acquisition.
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 received from disposal of equity
investment and the fair value of the remaining equity investment, net of the difference between the sum of the Company's previous
share of the subsidiary's net assets recorded from the acquisition date or combination date and the sum of goodwill, is recognized in
investment income in the period in which control is lost. Other comprehensive income that may later be reclassified into profit or loss
and changes in other owner's equity accounted by equity method in connection with the equity investment of the original subsidiaries
shall be transferred to the current investment gains when the control is lost.
b. Disposal of Subsidiary Achieved by Stages
When the equity investment of subsidiaries is disposed of through multiple transactions until the control is lost, such multiple
transactions are generally treated as a package deal if the terms, conditions, and economic impact of the transactions to dispose of the
subsidiary's equity investment satisfy one or more of the following conditions:
These transactions are achieved at the same time or the mutual effects on each other are considered;
101
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
A complete set of commercial results can be achieved with reference to the series of transactions as a whole;
Occurrence of a transaction depends on the occurrence of at least one of the other transactions;
One transaction recognized separately is not economical, but it is economical when considered together with other transactions.
If multiple transactions are recognized as a package deal, these transactions shall be subject to accounting treatment as a transaction to
dispose of the subsidiaries and lose control. The differences between the price on each disposal and disposal of investment on the
subsidiary's net assets shall be recognized in other comprehensive income in the consolidated financial statements, and included in
profit or loss for the period when the control is lost.
If the transactions are not a package deal, accounting treatment for partial disposal of equity investments of the subsidiary without
losing control shall be applied before control is lost. When the control is lost, general accounting treatment for disposal of a subsidiary
shall be used.
③ Acquisition of Minority Equity of Subsidiaries
The Company shall adjust the share premium in the capital reserve of the consolidated balance sheet with respect to any difference
between the long-term equity investment arising from the purchase of minority interest and the net assets 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 capita l reserves
are not sufficient for write-down.
8. Classification of joint venture arrangement and accounting treatment methods for joint operation
Joint venture arrangement is classified into joint operation and joint venture.
Joint operation means the joint venture arrangement in which the joint venture parties have the assets and assume the liabilities related
to such arrangement.
The Company recognizes the following items related to the share of interests in the joint operation:
(1) The assets separately held by the Company and assets jointly held as recognized by the share of the Company;
(2) The liabilities separately assumed by the Company and liabilities jointly assumed as recognized by the share of the Company;
(3) Income from selling the share of the Company in the output of the joint operation;
(4) Income from joint operation of the sold output as recognized by the share of the Company;
(5) The expenses separately incurred and expenses jointly incurred as recognized by the share of the Company;
The Company adopts the equity method for the investment of the joint venture. For details, refer to this section Financial Report - V.
Significant Accounting Polices and Accounting Estimates - 20. Long-term equity investment.
102
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
9. Recognition criteria of cash and cash equivalents
Cash means the cash on hand and deposits that are available for payment at any time of the Company.
Cash equivalents mean the investments held by the Company which are short-term, highly liquid, easy to be converted into known
amounts of cash and have little risk of value change.
10. Conversion of transactions and financial statements denominated in foreign currencies
(1) Foreign currency transactions
Foreign currency transactions are translated into function currency at the spot exchange rate on the day when the transactions occurred
or the exchange rate determined by a systematic and reasonable method that is similar to the spot exchange rate (hereinafter referred
to as the approximate exchange rate of the spot exchange rate).
The Balance of foreign currency monetary items shall be translated at the spot exchange rate on 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 included in current profit and loss.
2. Translation of foreign currency financial statements
All assets and liabilities items in balance sheet are translated based on spot exchange rate on the balance sheet date; owners' equity
items other than "undistributed profit" are translated at a spot exchange rate when accrued. Revenue and expense items in the income
statement are translated at a spot exchange rate at the transaction occurrence date or the appropriate exchange rate of the spot exchange
rate.
Cash flows in foreign currencies, as well as cash flows from foreign subsidiaries, are translated at the spot exchange rate on the day
when the cash flows occur or the appropriate exchange rate of the spot exchange.
For disposal of overseas operation, the translation difference as stated in the foreign currency financial statements relating to overseas
operation, is accounted for in the profit and loss account in the current period from owners' equity items.
11. Financial instruments
A financial asset, financial liability or equity instrument is recognized when the Company becomes a party to the financial instrument
contract.
(1) Classification of 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:
① The business model is designed to collect the contractual cash flow;
② 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:
① The business model is designed to both collect the contractual cash flow and sell the financial assets;
② The contractual cash flow is only used to pay the principal and the interests based on the outstanding principal amount.
103
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
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 individua l
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 initia l 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 containe d 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.
(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 capita lized; 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 whose 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.
③ Financial assets measured at fair value and whose changes are included in other comprehensive income (equity instruments)
Financial assets at fair value through other comprehensive income (equity instruments) include investment in other equity instruments.
They are initially measured at fair value, and the transaction expenses shall be initially capitalized. These financial assets are
subsequently measured at fair value, and the change in fair value shall be included in other comprehensive income. The dividends
obtained shall be included in the profit or loss for the period.
Upon derecognition, the cumulative profits or losses previously included in other comprehensive income shall be removed from other
comprehensive income and included in the carry-forward retained earnings.
④ Financial assets measured 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 current profit
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or loss. These financial assets are subsequently measured at fair value, and the change in fair value shall be included in the profit or
loss for the period.
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:
① The contractual right to receive cash flows from financial assets is terminated;
② The financial assets have been transferred and nearly all the risks and rewards related to the ownership of the financial a ssets have
been transferred to the transferee;
③ 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;
If the Company modifies or renegotiates the contract with the counterparty, which constitutes a substantial modification, the original
financial assets will be derecognised and a new financial asset will be recognized according to the modified terms.
The financial assets when transferred will not be derecognized if the Company has retained nearly all the risks and rewards related to
the ownership of the financial assets.
The substance-over-form principle shall be adopted while making judgment on whether the transfer of financial assets satisfies the
above conditions for termination of recognition.
The transfer of financial assets can be classified into entire transfer and partial transfer. If the transfer of an entire financial asset satisfies
the conditions for termination of recognition, the difference between the two amounts below shall be recorded into profit or loss for
the period:
① The book value of the financial asset transferred;
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 measured at fair value and whos e changes
are included in other comprehensive income (debt instruments)).
If the partial transfer of financial assets satisfies the conditions for termination of recognition, the overall book value of the transferred
financial asset shall be apportioned according to their respective relative fair value between the recognition terminated part and the
remaining part, and the difference between the two amounts below shall be recorded into profit or loss for the current period:
① The book value of the recognition terminated portion;
② The sum of consideration of the derecognised portion and the corresponding portion of accumulated change in fair value previously
recorded into owners' equity (in cases where the transferred financial assets are financial assets measured at fair value and whose
changes are included in other comprehensive income (debt instruments)).
Financial assets will still be recognized if they fail to satisfy the conditions for termination of recognition, with the consideration
received recognized as a financial liability.
(4) Derecognition of financial liabilities
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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 liabilit ies
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 liabilit ies
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 uses impairment accounting for the financial assets at amortized cost, the financial assets at fair value through other
comprehensive income (debt instruments), and the financial guarantee contracts, on the basis of the expected credit loss.
Taking into the reasonable and well-grounded information including past matters, current situation and prediction of future economic
conditions, the Company calculates the possibly weighted amount of the present value of the difference between the cash flows
receivable under the contract and the cash flows expected to be received, taking the risk of default as the weight, and recognizes the
expected credit loss.
The Company will always measure the loss provision for the accounts receivable and contract assets arising from the transactions
regulated by “Accounting Standard for Business Enterprises No.14 — Revenue”, whether they contain material financing compositions
or not, by the amount of the expected credit loss throughout the duration.
For the lease receivables resulting from transactions governed by “Accounting Standard for Business Enterprises No.21 — Leasing”,
the Company will always measure the loss provision for the accounts receivable, by the amount of the expected credit loss throughout
the duration.
The Company assesses the changes in credit risk of other relevant financial instruments since initial recognition at each balance sheet
date.
By comparing the risk of default of financial instruments on the balance sheet date with the risk of default on the initial recognition
date, the Company determines the relative change in the risk of default over the expected life of financial instruments to assess whether
the credit risk of financial instruments has increased significantly since initial recognition. If the financial instrument becomes overdue
for more than 30 days, the Company believes that the credit risk of this financial instrument has been significantly increased, unless
there are concrete evidence that the credit risk of this financial instrument has not been significantly increased upon initial recognition.
If the financial instrument carries low credit risk at the balance sheet date, the Company believes that the credit risk of this financial
instrument is not significantly increased upon initial recognition.
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If the credit risk of this financial instrument has been significantly increased upon initial recognition, the Company measures its loss
provision in accordance with the amount equivalent to the expected credit loss of the financial instrument throughout the duration; if
the credit risk of this financial instrument is not significantly increased upon initial recognition, the Company will measure the loss
provision of this financial instrument by the amount of its expected credit loss in the 12 months to come. The increased or reversed
amount of the loss provision resulting therefrom is included in the current profit or loss as the impairment loss or profit. For financial
assets (debt instruments) at fair value through other comprehensive income, the loss provision is recognized in other comprehensive
income, and the impairment loss or gain is included in current profits or losses, without reduction in the book value of the financia l
asset as stated in the balance sheet.
If there are objective evidences showing that a certain receivable has been subject to credit impairment, the Company will accrue
impairment provision for the receivable on the individual asset basis.
Except for the above-mentioned accounts receivable for which an individual provision for bad debts has been made, the Company
divides other financial instruments into several combinations based on their credit risk characteristics, and determines expected credit
losses on the basis of the combinations. The Company's combination categories and determination basis of expected credit losses for
notes receivable, accounts receivable, accounts receivable financing, other receivables, contract assets (including contract assets
presented in other non-current assets) and long-term receivables (including long-term receivables due within one year presented in
non-current assets due within one year) are as follows:
Item Combination
Determination Basis
Categories
The expected credit loss is calculated by default risk
Notes receivable
exposure and the expected credit loss rate for the entire
Type of Notes extension, based on historical credit loss experience, in
Receivables Financing combination with current conditions and predictions of
future economic conditions.
The expected credit loss is calculated by default risk
exposure and the expected credit loss rate for the entire
Aging
Accounts receivable, other receivables extension, based on historical credit loss experience, in
combination
combination with current conditions and predictions of
future economic conditions.
The expected credit loss is calculated by default risk
exposure and the expected credit loss rate for the entire
Affiliated
Accounts receivable, other receivables extension, based on historical credit loss experience, in
combined
combination with current conditions and predictions of
future economic conditions.
The expected credit loss is calculated by default risk
exposure and the expected credit loss rate for the entire
Contract assets (including contract assets Nature of the
extension, based on historical credit loss experience, in
presented in other non-current assets) funds
combination with current conditions and predictions of
future economic conditions.
The expected credit loss is calculated by default risk
Long-term receivables (including long-term exposure and the expected credit loss rate for the entire
Nature of the
receivables due within one year presented extension, based on historical credit loss experience, in
funds
in non-current assets due within one year) combination with current conditions and predictions of
future economic conditions.
If the Company no longer reasonably expects that the cash flow of the financial asset contract can be recovered as a whole or in part,
the book balance of such financial assets will be directly reduced.
12. Notes Receivable
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial instruments
13. Accounts Receivable
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial instruments
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14. Receivables Financing
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial instruments
15. Other Receivables
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial instruments
16. Contract Assets
(1) Recognition 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 se rvices
provided to customers (and such right depends on other factors than passing of time) are presented as contract assets. The contract
assets and contract liabilities under the same contract are presented in net amount. The Company separately presents the right possessed
to collect consideration from customers unconditionally (only depending on the passing of time) as accounts receivable.
(2) Determination method and accounting treatment method for the expected credit loss of contract assets
For details, refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial
instruments
17. Inventory
(1) Category of inventory
Categories of inventories: 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 operatio n,
shall be determined by the amount after deducting the estimated cost of completion, estimated selling expenses and relevant taxes from
the estimated selling price of finished goods; the net realizable value of inventories held for execution of sales contracts or labor
contracts shall be calculated on the ground of the contracted price. If an enterprise holds more inventories than the quantity stipulated
in the sales contract, the net realizable value of the exceeding part shall be calculated on the ground of general selling price.
If the Company accrues the provision for impairment of inventories on a combination basis, the combination categories and
determination basis as well as the basis for determination of the net realizable value of different types of inventory are as follows:
Combination Categories of Determination Basis for Combination Basis for the Determination of Net
Inventories Realizable Value
Raw materials Categories of Inventories
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Work-in-progress Categories of Inventories Estimated selling price of inventories -
Finished goods Categories of Inventories Estimated costs until completion -
Estimated selling expenses - Related taxes
Contract Performance Costs Categories of Inventories
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.
18. Holding assets for sale
(1) Recognition criteria and accounting treatment
An asset of which the book value is recovered mainly through sale (including exchange of non-monetary asset of a commercial nature)
rather than non-continuous use of a non-current asset or disposal group is classified as a holding asset for sale.
A non-current asset or disposed group is classified by the Company as holding for sale if it meets the following criteria at the sa me
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 highly likely to occur, i.e., the Company has made a resolution on a sales plan and obtained confirmed purchase
commitments, and the sales is predicted to be completed within 1 year. If required by relevant provisions that selling shall only be
made after approved by the relevant competent authority or supervision department of the Company, such approval should have been
obtained.
If the book value of the non-current assets (excluding financial assets, deferred income tax assets, and assets to constitute payroll
payable) or disposal groups classified as holding for-sale assets is higher than the net amount after deducting the selling expenses from
the book value, the book value will be written down to the net amount after deducting the selling expenses from the fair value, and the
amount written down will be recognized as the impairment loss of assets and included in the current profit or loss. At the same time,
the impairment provision for holding for-sale assets will be accrued.
(2) Recognition criteria and presentation of discontinued operations
Termination of business is a separately distinguishable constituent part that satisfies one of the following conditions and that has been
disposed of or classified by the Company as held for sale:
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 an independent primary business or a separate principal operating area;
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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.
19. Long-term Receivables
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial instruments
20. Long-term Equity Investments
(1) 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 inve stee, 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
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 merged 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.
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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 investee's identifiable net
assets at the acquisition date, no adjustment shall be made to the initial investment cost; where the initial investment cost is less than
the investor's interest in the fair value of the investee's identifiable net assets at the acquisition date, the difference shall be charged to
the profit or loss for the current period. At the same time, the cost of the long-term equity investment shall be adjusted.
The Company recognizes the investment income and other comprehensive income according to the shares of net profit or loss and
other comprehensive income realized by the investee which it shall be entitled or shared respectively, and simultaneously makes
adjustment to the book value of long-term equity investment; The book value of long-term equity investment shall be reduced by
attributable share of the profit or cash dividends for distribution declared by the investee. In relation to other changes in the owner's
equity except for net profits and losses, other comprehensive income and profit distributions of the investee (hereinafter referred to as
“Changes in Other Owner's Equity”), the book value of the long-term equity investment shall be adjusted and included in owner's
equity.
When determining the amount of proportion of net profit or loss, other comprehensive income and other changes in the owner's equity
in the investee which it entitles, the fair value of each identifiable net assets of the investee at the time when the investment is obtained
shall be used as basis, and according to the accounting policies and accounting period of the Company, adjustment shall be made to
the net profit and other comprehensive income of the investee.
The unrealized profit or loss resulting from transactions between the Company and its associates or joint venture shall be eliminated in
proportion to the investor's equity interest of investee, based on which investment income or loss shall be recognized, except for those
assets invested or sold constituting a business. Any losses resulting from transactions, which are attributable to impa irment 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
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investment and the long-term equity that substantially constitutes the net investment in the joint ventures or affiliates have been written
down to zero, except to the extent that the Company has an additional loss obligation. If the joint ventures or affiliates later realize net
profit, the Company will resume recognition of the income share after the income share makes up the unrecognized loss share.
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
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.
21. Investment Properties
Investment property refers to the real estate held to generate rental income or capital appreciation, or both, including leased land use
rights, land use rights held for transfer after appreciation, and leased buildings (including buildings that are leased after completion of
self-construction or development activities and buildings in construction or development that are used for rental in the future).
The Company adopts the cost mode to measure the existing investment property. The subsequent expenditure related to the investment
property will be included in the cost of the investment property when relevant economic benefits are likely to flow in and costs can be
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measured reliably, or otherwise be included in the current profit or loss when occurred. Investment property measured at cost - buildings
held for leasing shall adopt the same depreciation policy for fixed assets of the company, land use rights held for leasing shall adopt
the same amortization policy for the intangible assets.
22. Fixed Assets
(1) Conditions of Recognition
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to others, or for
administrative purposes; and have a service life of more than one fiscal year. Fixed assets are recognized when they meet the following
conditions at the same time: 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%
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 a pply, 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 as sets
will be derecognized. The income from disposal of the fixed assets through sale, transfer, scrapping or damage with the book value
thereof and relevant taxes deducted is included in the current profit or loss.
23. Construction in Progress
The projects under construction are measured at the actual cost. The actual cost comprises the building cost, installation cost, borrowing
cost qualified for capitalization and other necessary expenditures incurred to bring the projects under construction to the c onditions
before they are made ready for the intended use. The projects under construction will be converted into fixed assets when they are
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ready for intended use and will be depreciated from the next month on. The standards and time points for conversing the Compa ny’s
projects under construction into fixed assets are as follows:
Category The standards and time points for conversing into fixed assets
Housing and building The completion and fire inspection, and water and electricity supply are completed as
well as the conditions for occupancy are met.
Machinery and equipment The equipment installation and debugging is completed and is ready for use.
Electronic and other equipment The equipment installation and debugging is completed and is ready for use.
24. Borrowing costs
(1) Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to the acquisition, construction or production of assets
qualified for capitalization, the costs will be capitalized and included in the costs of the related assets. Other borrowing costs shall be
recognized as expense in the period in which they are incurred and included in profit or loss for the current period.
Assets qualified for capitalization are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial
period of time for acquisition, construction or production to get ready for their intended use or sale.
(2) Capitalization period of borrowing costs
The capitalization period shall refer to the period between the commencement and the cessation of capitalization of borrowing costs,
excluding the period in which capitalization of borrowing costs is temporarily suspended.
Capitalization of borrowing costs begins when the following conditions are satisfied simultaneously:
① Asset expenditures (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 occurred;
② Borrowing costs have been incurred;
③ Acquisition, construction or production necessary to enable the asset to reach its intended state of serviceability or marketability
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 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
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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 gene ral
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.
25. Intangible Assets
(1) Service life, determination basis, estimation, amortization method or review procedures
① Valuation method of intangible assets
a. Intangible assets are initially measured at cost upon acquisition
The costs of an externally purchased intangible asset include the purchase price, relevant taxes and expenses paid, and other
expenditures directly attributable to putting the asset into condition for its intended use.
b. Subsequent measurement
The service life of intangible assets shall be analyzed and judged upon acquisition.
As for intangible assets with a finite service life, they are amortized using the straight-line method over the term in which economic
benefits are brought to the firm; If the term in which economic benefits are brought to the firm by an intangible asset cannot be estimated,
the intangible asset shall be taken as an intangible asset with indefinite service life, and shall not be amortized.
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 to 10 years Expected benefited period
Software 2 to 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 year.
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
As at the balance sheet date, the Company has no intangible assets with uncertain service life.
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(2) The scope of R&D expenditure collection and related accounting treatment methods.
① The scope of R&D expenditure collection
Expenditures incurred by the Company in research and development include the compensation of the employees engaged in research
and development activities, consumable materials, depreciation and amortization expenses, and other related expenditures.
② 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.
③ Specific condition for capitalizing expenditure during the development phase
Expenses in the research phase are recorded into the profits and losses for the current period when they occur. The expenses in the
development phase are recognized as intangible assets if the following conditions are fulfilled, and are included in the current profit or
loss if following conditions are not fulfilled:
a. Complete such intangible asset to make it technically feasible for use or for sale;
b. There is intention to complete the intangible asset for use or sale;
c. The ways in which intangible asset generates 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;
d. There is sufficient support in terms of technology, financial resources and other resources in order to complete the development of
the intangible asset, and there is capability to use or sell the intangible asset;
e. The expenses attributable to the development stage of the intangible asset can be measured reliably.
If the expenses in the research phase and expenses in the development phase cannot be distinguished, all the expenses incurred for
R&D are included in the current profit or loss.
26. Impairment of long-term assets
Long-term assets, such as long-term equity investment, investment properties that are measured at cost, fixed assets, construction in
progress, intangible assets with limited service life and oil and gas assets are tested for impairment if there is any indica tion that an
asset may be impaired at the balance sheet date. If the result of the impairment test indicates that the recoverable amount of the asset
is less than its book value, a provision for impairment and an impairment loss are recognized for the amount by which the asset's book
value exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and the present
value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognized on
the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a
group of assets to which the asset belongs to is determined. A group of assets is the smallest group of assets that is able to generate
cash inflows independently.
For the goodwill arising from business combination, intangible assets with uncertain service life, and intangible assets which are not
ready for intended use, impairment test shall be conducted at least at the end of each year, regardless of whether there are signs of
impairment or not.
When the Company carry out impairment test to goodwill, the Company shall, as of the purchasing day, allocate on a reasonable basis
the book value of the goodwill formed by merger of enterprises to the relevant asset groups, or if there is a difficulty in allocation, to
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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.
27. Long-term Deferred Expenses
Long-term deferred expenses are expenses which have occurred but will benefit over 1 year and shall be amortized over the current
period and subsequent periods.
The amortization period and amortization method of various expenses are:
Item Amortization Amortization period
method
Improvement expenditure of fixed assets leased by operating lease Straight-line method By period of benefit
Renovation Cost Straight-line method By period of benefit
28. Contract liabilities
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between performa nce
obligations and customer payments. The Company lists the obligation to transfer commodities or offer services to customers for the
consideration received or receivable from customers as contract liabilities. The contract assets and contract liabilities under the same
contract are presented in net amount.
29. Employee compensation
(1) Accountant treatment of short-term remuneration
During the accounting period when the staff provides service, the Company will recognize the short-term remuneration actually
incurred as liabilities, and the liabilities would be charged into current profits and loss or costs of assets.
The Company will pay social insurance and housing funds, and will make provision of trade union funds and staff education costs in
accordance with the requirements. During the accounting period when the staff provides service, the Company will determine the
relevant amount of employee benefits in accordance with the required provision basis and provision ratios.
Employee compensation actually incurred by the Company will be included in the current profit or loss or relevant asset costs when
actually incurred, in which non-monetary benefits will be measured at the fair value.
(2) Accountant treatment of retirement benefit plan
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.
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) Accountant 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.
30. Estimated Liabilities
The Company shall recognize the obligations related to contingencies as estimated liabilities, when all of the following conditions are
satisfied:
(1) The obligation is a present obligation of the Company;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities shall be initially measured at the best estimate of the expenditure required to settle the related present obligation.
Factors pertaining to a contingency such as risk, uncertainties, and time value of money shall be taken into account as a whole in
reaching the best estimate. Where the effect of the time value of money is material, the best estimate shall be determined by discounting
the related future cash outflow.
The expenses required have a successive range, in which the possibilities of occurrence of each result are the same, and the best estimate
should be determined as the middle value for the range; in other circumstances, the best estimate will be handled as follows, respectively:
(1) For the contingencies involving a single item, it will be determined according to the amount most likely to occur;
(2) For the contingencies involving several items, it will be determined according to the possible results and the relevant possibilities.
Where some or all of the expenditure required to settle an estimated liability is expected to be reimbursed by a third party, the
reimbursement is separately recognized as an asset when it is virtually certain that the reimbursement will be received. The amount
recognized for the reimbursement is limited to the book value of the estimated liability.
The Company will review the book value of the estimated liabilities on the balance sheet date, and if there are concrete evidences that
such book value cannot reflect the current best estimate, the book value will be adjusted according to the current best estimate.
31. Share-based payment
The Company's share-based payment refers to a transaction in which an enterprise determines the liabilities on the basis of equity
instruments granting or bearing for the acquisition of service from its employees or other parties. The Company's share -based payment
is equity-settled.
As to an equity-settled share-based payment in return for services of employees, calculation will be based on the fair value of the equity
instrument granted to the employees. The share-based payment transactions vested immediately 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
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the specified performance conditions are met after the date of grant, the Company will include the services obtained in the current
period in relevant cost or expense and increase the capital reserve at the fair value on the date of grant according to the best estimate
of the number of the exercisable equity instruments on each balance sheet date in the waiting period.
If the terms of the equity-settled share-based payment are amended, the Company shall recognize the services received at least based
on the situation before the amendment was made. In addition, any amendment resulting in the increase of the fair value of the equity
instrument granted or changes that are beneficial to the staff on the amendment date, will be recognized as an increase in the service
received.
If the equity instruments vested are canceled during the waiting period, the Company will take the vested equity instruments canceled
as accelerated exercise, and immediately include the amount to be recognized during the waiting period in the current profit or loss. At
the same time, the capital reserve will be recognized. However, if new equity instruments are vested and they are verified at the vesting
date of new equity instrument as alternatives vested to canceled equity instruments, the treatment on the new equity instrument is in
conformity with the modified treatment on disposal of equity instrument.
32. Income
(1) Accounting policies for revenue recognition and measurement
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 individua l
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 prac tices,
and may take into account the impact from the variable consideration, the major financing components in the contract, the non-cash
consideration, the payable customer consideration and other factors when determining the transaction price. The Company shall
determine the transaction price containing the variable consideration according to the amount not exceeding the amount by which the
accumulative recognized revenue is much more unlikely to be significantly reversed when relevant uncertainties are eliminated. If there
are major financing components in the contract, the Company shall determine the transaction price according to the amount due
assumed to be paid in cash when the customer acquires the control over the commodities or services, and shall amortize the difference
between such transaction price and the contract consideration using the effective interest rate method during the contract period.
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:
① The customer acquires and consumes the economic benefits arising from the Company's performance while the company performs
the contract;
② The customer can control the commodities in progress during the Company's performance;
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③ 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 custome r
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:
① 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;
② The Company has transferred the legal title of such commodities to the customer, that is, the customer already has the lega l title of
such commodities;
③ The Company has transferred the physical commodities to the customer, that is, the customer has possessed the physical
commodities.
④ The Company has transferred the major risks and rewards of the commodity title to the customer, that is, the customer has a cquired
the major risks and rewards of the commodity title.
⑤ The customer has accepted such commodities or services.
The Company determines whether it is a principal or agent when engaging in transactions based on its control over the goods or services
before transferring them to the customer. The Company is a principal and recognizes its revenue based on the total amount of
consideration received or receivable if it can control the goods or services before transferring them to the customer; otherwise, the
Company is an agent and recognizes its revenue based on the amount of commissions or fees it expects to be entitled to.
(2) Recognition and measurement methods of specific revenue disclosure by type of business
① Principles for recognizing revenue from domestic sales of standard products: The Company sells its security standard produc ts to
the project clients, dealers, and other customers through direct selling and marketing both. The Company sign sales contracts with and
customers, 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 Principles for recognizing revenue from 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;
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③ Principles for recognizing revenue from sales of system-integrated products: 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
running. The sales income will be recognized upon acceptance.
④ Principle for recognizing the income from labor services: The income is recognized when the labor service is provided.
33. Contract costs
The contract costs comprise the contract performance cost and the cost to obtain a contract.
The costs incurred by the Company for contract performance which fall outside the scope of the enterprise accounting standards such
as inventories, fixed assets or intangible assets will be identified as an asset of the contract performance costs upon satisfying all of the
following conditions:
1. The costs are directly related to one existing contract or one contract that is expected to be obtained;
(2) The costs enrich the Company's resources for future contract performance;
(3) The costs are estimated to be recovered.
The incremental costs which are incurred by the Company to obtain the contract and are expected to be recovered will be identified as
an asset of the costs to obtain a contract.
The assets related to the contract costs will be amortized on the same basis for recognition of the income from commodities or services
related to the assets; but if the amortization period of the costs to obtain the contract is no more than 1 year, the Company will include
such costs in the current profit or loss once occurred.
In case that the book value of assets related to contract costs is higher than the difference between the two items below, the Company
will accrue the impairment provision for the extra part, and recognize that part as impairment loss:
(1) Estimated residual consideration to be obtained from transfer of commodities or services related to the assets;
(2) Estimated costs incurred from transfer of relevant commodities or services.
If the factors for impairment in the previous periods are subsequently changed, making the aforesaid difference higher than the book
value of the assets, the Company will reverse the accrued impairment provision and include it in the current profit or loss, provided
that the book value of the reversed assets does not exceed the book value of the assets without impairment provision accrued on such
date of reversal.
34. Government 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.
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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 revenue). 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 a 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 a mount
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
revenue).
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
revenue) 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 revenue) 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:
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 shall set off the corresponding discount
interest against the relevant borrowing costs.
35. Deferred Income Tax Assets/Deferred Income Tax Liabilities
Income tax comprises current income tax and deferred income tax. Except for the income taxes arising from the business combination
and the transactions or matters that are directly included in the owner's equity (including other comprehensive income), the Company
will include the current income tax and deferred income tax into the current profit or loss.
Deferred income tax assets and deferred income tax liabilities will be calculated and recognized according to the difference (temporary
difference) between the tax basis and the book value of assets and liabilities.
Deferred income tax assets are recognized to the extent that it is probable that future taxable income will be available against which
deductible temporary differences can be utilized. For deductible losses and tax credits that can be reversed in the future period, deferred
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income tax assets shall be recognized to the extent that it is probable that taxable income will be available in the future to offset the
deductible losses and tax credits.
Save as the exceptions, deferred income tax liabilities shall be recognized for the taxable temporary difference.
The exceptions where deferred income tax assets and liabilities are not recognized include:
(1) Initial recognition of the goodwill;
(2) Transactions or events that are neither business combinations nor affect profit and taxable income (or deductible loss) when
occurring.
Taxable temporary difference related to investment in the subsidiaries, affiliates and joint ventures will be recognized as deferred
income tax liabilities, unless the Company can control the time to reverse such temporary difference and such temporary diffe rence 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:
(1) The taxpayer is granted the legal rights to settle current income tax assets and current income tax liabilities on a net basis;
(2) Deferred income tax assets and deferred income tax liabilities are related to income tax to be paid by the same entity liable for
paying tax to the same tax collection and management authority or related to different entities liable for paying tax, but the relevant
entity liable for paying 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.
36. Lease
Lease means the contract by which the lessor transfers the right to use the assets to the lessee for a given period to obtain the
consideration. On the commencement of the contract, the Company will assess whether the contract is a lease or contains the lease. If
a party to the contract conveys the right to control the use of one or more identified assets for a given period to obtain a consideration,
this contract is a lease or contains the lease.
If a contract contains several individual leases, the Company will split the contract and conduct accounting treatment of each individua l
lease separately. If a contact contains both lease and non-lease, the lessee and the lessor will split the lease and non-lease parts.
If all the following conditions are met, the Company will simplify all the lease options without assessing whether the lease is changed
or reassessing the lease classification:
(1) The lease consideration after reduction is less or remains substantially the same compared with the lease consideration before
reduction, and the lease consideration may either be undiscounted or discounted by the discount rate before reduction;
(2) Other terms and conditions of lease are identified without significant change after taking the qualitative and quantitative factors
into full account.
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(1) Accounting treatment of leases 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:
a. Initial measurement amount of lease liabilities;
b. The lease payment paid on or before the commencement of the lease term; if there are lease incentives, the relevant amount of lease
incentives enjoyed shall be deducted;
c. Initial direct cost incurred by the Company;
d. The estimated costs incurred by the Company for dismantling and removing the leased asset, restoring the site where the leased asset
is located or restoring the leased asset to the state agreed in the lease terms, but excluding the cost incurred to produce the inventory.
The Company will depreciate the right-to-use assets through the straight-line method. If it can be reasonably recognized that the title
of the leased asset is acquired at the expiration of the lease term, the Company shall accrue depreciation within the remaining service
life of the leased asset; or otherwise, the leased asset shall be depreciated within the shorter of the lease term and the remaining service
life of the leased asset.
The Company will determine whether the right-of-use assets are impaired and conduct accounting treatment over the identified
impairment loss according to the principles set out in this section Financial Report - V. Significant Accounting Polices and Accounting
Estimates - 26. 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:
a. Fixed payment (including actual fixed payment), and if there are lease incentives, the relevant amount of lease incentives shall be
deducted;
b. Variable lease payment depending on the index or ratio;
c. Predicted payment on the basis of the guaranteed residual value provided by the Company;
d. Exercise price of the call option, provided that the Company will exercise such option, as reasonably determined;
e. Payment for exercise of the lease termination option, provided that the lease term reflects the Company’s future exercise of the lease
termination option.
The interest rate implicit in lease is applied by the Company as the discount rate. If the interest rate implicit in lease ca nnot 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 liabilit ies
and adjust the corresponding right-of-use assets, and if the book value of the right-of-use assets has been reduced to zero, but the lease
liabilities still need to be further reduced, the difference shall be included in the current profit or loss:
a. When the assessment result of the call option, renewal option or termination option is changed or the actual exercise of the aforesaid
option is inconsistent with the original assessment result, and the Company remeasures the lease liabilities at the present value worked
out according to the changed lease payment and the revised discount rate;
b. When there are changes in the actual fixed payment, the estimated payable amount of guaranteed residual value, or the inde x 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
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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:
a. Such lease change has expanded the scope of lease by adding the right to use one or more leased assets;
b. The increased consideration and the separate consideration for the expanded part of the scope of lease shall be equivalent to the
amount adjusted according to this contract.
If the lease change is not taken as a separate lease for accounting treatment, on the effective date of the lease change, the Company will
re-apportion the consideration of the changed contract, re-determine the lease term, and remeasure the lease liabilities at the present
value worked out according to the changed lease payment and the revised discount rate.
If the lease change results in narrower scope of lease or shorter lease term, the Company will reduce the book value of the right-of-use
assets accordingly, and will include relevant gain or loss from partial or full termination of the lease in the current profit or loss. If
other lease changes result in re-measurement of the lease liabilities, the Company will adjust the book value of the right-to-use assets
accordingly.
(2) Accounting treatment of leases as a lessor
On commencement of the lease term, the Company will divide the lease into financial lease and operating lease. Financial lease means
the lease that has substantially transferred almost all the risks and rewards related to the title of the leased assets, whether or not the
title will be finally transferred. Operating lease means any lease other than financial lease. When the Company serves as a lessor of the
sublease, the sublease will be classified on the basis of the right-to-use assets resulting from the original lease.
① Accountant treatment of operating lease
The lease receipts for the operating lease will be recognized as the rental income according to the straight-line method during each
period of the lease term. The initial direct fee related to the operating lease to be incurred by the Company will be capitalized and will
be apportioned and included in the current profit or loss on the same basis as that for recognition of the rental income in the lease term.
The variable lease payments that are not included in the lease receipts shall be included in the current profit or loss when they ac tually
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 re spect 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 lease on the
commencement of the lease term.
The Company will calculate and recognize the interest income during each period of the lease term at a fixed periodic interest rate. The
derecognition and impairment of the financial lease receivables will be subject to accounting treatment according to this section
Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial instruments.
The variable lease payments that are not included in the measurement of the net lease investment shall be included in the current profit
or loss when they actually occur.
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If the financial lease is changed and meets all of the following conditions, the Company will conduct accounting treatment with respect
to such change as a single lease:
a. Such change has expanded the scope of lease by increasing the right to use one or more leased assets;
b. The increased consideration and the separate consideration for the expanded part of the scope of lease shall be equivalent to the
amount adjusted according to this contract.
If the change in the financial lease is not subject to accounting treatment as a single lease, the Company will treat the cha nged lease in
the following circumstances:
a. If the change takes effect on commencement of the lease term and the lease is classified as operating lease, the Company will conduct
accounting treatment with respect to such lease as a new lease as of the effective date of the lease change, and will take the net lease
investment before the effective date of the lease change as the book value of the leased asset;
b. If the change takes effect on the commencement date of the lease, and such lease is classified as the financial lease, the Company
will conduct accounting treatment according to the policy regarding modification or re-negotiation of the contract in this section
Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial instruments.
(3) Sale and leaseback transaction
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to a sale in accordance
with the provisions of this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 32. Income.
① Acting as a lessee
If the asset transfer in the sale and leaseback transaction is a sale, the Company as the lessee shall measure the right-of-use asset arising
from the sale and leaseback according to the part related to the right of use acquired from the leaseback in the original book value of
the asset, and only recognize relevant gain or loss on the rights transferred to the lessor; if the asset transfer in the sale and leaseback
transaction is not a sale, the Company as the lessee shall continue to recognize the transferred asset, and recognize a financial liabilit y
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 - 11. Financial instruments.
② Acting as a lessor
If the asset transfer in the sale and leaseback transaction is a sale, the Company as the lessee shall conduct accounting tre atment with
respect to the asset purchase and conduct accounting treatment with respect to the asset lease according to the policy in the foregoing
"(2) Accounting treatment of leases as a lessor"; if the asset transfer in the sale and leaseback transaction is not a sale, the Company as
the lessor shall derecognize the transferred asset, but recognize a financial asset equal to the transfer income. For accounting treatment
of the financial assets, refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.
Financial instruments.
37. Other significant accounting policies and accounting estimates
(1) Repurchase of the Company's shares
The Company's shares repurchased by the Company for reducing the registered capital or rewarding employees shall be treated a s 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 based on the par
value of the canceled shares and the number of canceled shares will be set off against the capital reserve. If the capital reserve is
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insufficient, the retained earnings 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.
(2) Debt restructuring
① The Company being the creditor
The Company derecognizes creditor’s rights when the contractual right to receive cash flows terminates. In case of debt restructuring
by paying off the debt with assets or converting into equity instruments, the Company will recognize relevant assets when the y meet
their definition and conditions of recognition.
In case of debt restructuring by paying off the debt with assets, the Company initially recognizes the transferred non-financial asset at
cost. The cost of inventory includes the fair value of the relinquished claim as well as taxes, transportation fees, handling fees and
insurance fees and other costs directly attributed to the asset that occur to bring the asset to its current location and condition. The cost
of investment in an associate or joint venture includes the fair value of relinquished claim and taxes and other costs directly attributed
to the asset. The cost of investment property includes the fair value of relinquished claim and other costs directly attributed to the asset.
The cost of fixed assets includes the fair value of relinquished claim as well as taxes, transportation fee s, handling fees, installation
fees, service fees for professionals and other costs directly attributed to the asset that occur to bring the asset to its intended usable
condition. The cost of biological assets includes the fair value of relinquished claim as well as taxes, transportation fees, insurance fees
and other costs directly attributed to the asset. The cost of intangible assets includes the fair value of relinquished rights and taxes and
other costs that are incurred to bring the asset to its intended use. In case that the debt restructuring by converting debt into equity
instruments results in the creditor converting its creditor’s rights into an equity investment in an associate or joint venture, the Company
shall measure its initial investment cost based on the fair value of the relinquished claim and taxes and other costs directly attributable
to the asset. The difference between the fair value of relinquished claim and the book value shall be included in the current profit or
loss.
In case of debt restructuring by modifying other clauses, the Company recognizes and measures the restructured creditor's rights
according to the Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial Instruments
In case of debt restructuring by paying off debts with multiple assets or combining them, the Company first recognizes and measures
the transferred financial assets and restructured creditor's rights according to Financial Report - V. Significant Accounting Polices and
Accounting Estimates - 11. Financial instruments in this section, and then allocates the fair value of the relinquished claims to the net
amount after deducting the recognized amounts of the transferred financial assets and the restructured claims in proportion to the fair
value of each of the assets other than the transferred financial assets and, based on that, determines the costs of the assets separately by
the method described in the preceding paragraph. The difference between the fair value of relinquished claim and the book value shall
be included in the current profit or loss.
②The Company as a debtor
The Company derecognizes debts when the present obligation for the liability is discharged.
In the case of debt restructuring by paying off debts with assets, the Company derecognizes the relevant assets and the debts when they
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meet the conditions for derecognition, and the difference between the book value of the debts paid off and that of the transferred assets
is included in the current profits and losses.
In case of debt restructuring by transferring the debt into equity instruments, the Company will derecognize the debt paid off when it
meets the conditions of recognition. The Company initially recognizes equity instruments at their fair value, and at the fair value of the
debt paid off if it is not reliable to measure at the fair value of the equity instrument. The difference between the book value of the debt
paid off and the amount recognized for the equity instrument shall be included in current profits and losses.
In case of debt restructuring by modifying other clauses, the Company recognizes and measures the restructured creditor's rights
according to the Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial Instruments.
In case of debt restructuring by paying off debts with multiple assets or combining them, the Company recognizes and measures equity
instruments and restructured debts according to the above methods, and the difference between the book value of the debt paid off and
the book value of the transferred assets as well as the difference between the equity instruments and the amount recognized of the
restructured debts shall be included in current profits and losses.
38. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
Applicable □ Not applicable
Unit: RMB
Name of statement item
Contents and causes of changes in accounting policies Impact amount
influence significantly
On October 25, 2023, the Treasury Department ("MOF") issued the
"Interpretation No. 17 of Accounting Standards for Business
Enterprises 17", providing for the "classification of current liabilities
None 0.00
and non-current liabilities", the "disclosure of vendor financing
arrangements" and the "accounting treatment for sale and leaseback
transactions", effective from January 1, 2024.
(2) Changes in significant accounting estimates
□ Applicable Not applicable
(3) Adjustments to relevant items of financial statements as of the beginning of the year of first implementation of new
accounting standards since 2024
□ 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 13%, 9%, 6%, simple collection
VAT sales tax shall be calculated on the basis of the rate of 5%, simple collection
income by selling goods and taxable services. rate of 3%, 0% and tax-free
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After deducting the input tax that is allowed to be
deducted from the sales tax in the current period,
the difference shall be the value added tax
Urban Maintenance and Construction
Actually paid turnover tax 7%、5%
Tax
Corporate income tax Taxable income 15%、16.5%、20%、25%
Education surcharges Actually paid turnover tax 3%
Local education surcharges Actually paid turnover tax 2%
If there are multiple taxpayers with different enterprise income tax rates, specify the situation
Name of taxpayer Income tax rate
Zhejiang Dahua Technology Co., Ltd. 15%
Zhejiang Dahua System Engineering Co., Ltd. 15%
Zhejiang HuaRay Technology Co., Ltd. 15%
Zhejiang Huaxiao Technology Co., Ltd. 15%
Zhejiang Huafei Intelligent Technology CO., LTD. 15%
Zhejiang Huaruijie Technology Co., Ltd. 15%
Zhejiang Huajian Technology Co., Ltd. 15%
Hangzhou Huacheng Software Co., Ltd. 15%
Zhejiang Pixfra Technology Co., Ltd. 15%
Jiangsu Huaruipin 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 Co.,
15%
Ltd.
Guangxi Dahua Zhicheng Co., Ltd. 15%
Guangxi Huacheng Technology Co., Ltd. 15%
Guizhou Meitan Dahua Information Technology Co., Ltd. 15%
Zhejiang Dahua Ju'an Technology Co., Ltd. 20%
Guangxi Dahua Technology Co., Ltd. 20%
Zhejiang Huakong Software Co., Ltd. 20%
Dahua Technology (HK) Limited 16.50%
Hangzhou Xiaohua Technology CO., LTD. 20%
Chengdu Zhichuang Yunshu Technology Co., Ltd. 20%
Chengdu Huishan Smart Network Technology Co., Ltd. 20%
Guizhou Huayi Shixin Technology Co., Ltd. 20%
Zhejiang Zhoushan Digital Development Operation Co. Ltd. 20%
Tianjin Dahua Information Technology Co., Ltd. 20%
Chengdu Dahua Zhishu Information Technology Service Co.,
20%
Ltd.
Chengdu Huazhiwei Technology Co., Ltd. 20%
Chengdu Dahua Wisdom Information Technology Co., Ltd. 20%
Nanyang Dahua Intelligent Information Technology Co., Ltd. 20%
Zhejiang Huaqi Intelligent Technology Co., Ltd. 20%
Xi'an IMOU Zhilian Technology Co., Ltd. 20%
Guangdong Huaxiyue Intelligent Technology Co., Ltd. 20%
Guangxi Dahua Yunlian Information Technology Co., Ltd. 20%
Zhejiang Huajie New Energy Operation Service Co., Ltd. 20%
Other domestic companies 25%
Other overseas companies Applicable to local tax rate
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
2. Preferential tax rate
(1) According to the Notice on the Filing and Publicity of High-tech Enterprises Certified by the Certification Body of Zhejiang
Province in 2023 issued by the Office for the Administration of the Certification of National High-tech Enterprises on December 28,
2023, our subsidiaries Zhejiang Huaruijie Technology Co., Ltd., Zhejiang Huajian Technology Co., Ltd., Hangzhou Huacheng
Software Co., Ltd. and Zhejiang Dahua System Engineering Co., Ltd. were certified as high-tech enterprises, with validity for 3 years.
The corporate income tax for this year was paid at a reduced rate of 15%.
(2) According to the Announcement on the 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 subsidiaries
Zhejiang HuaRay Technology Co., Ltd. and Zhejiang Huaxiao Technology Co., Ltd. were certified as high-tech enterprises, validity
for 3 years. The corporate income tax for this year was paid at a reduced rate of 15%.
(3) According to the Announcement on the Filing of the First Batch of High-tech Enterprises of Zhejiang Province Certified and Filed
in 2023 issued by the Office for the Administration of the Certification of National High-tech Enterprises on Thursday, December 28,
2023, our subsidiaries Zhejiang Huafei Intelligent Technology Co., Ltd. and Zhejiang Pixfra Technology Co., Ltd. were certified as
high-tech enterprises, validity for 3 years. The corporate income tax for this year was paid at a reduced rate of 15%.
(4) According to the Notice on the Filing and Publicity of High-tech Enterprises Certified by the Certification Body of Zhejiang
Province in 2022 issued by the Office for the Administration of the Certification of National High-tech Enterprises on December 24,
2022, our subsidiaries Zhejiang Huaruijie Technology Co., Ltd., Zhejiang Huajian Technology Co., Ltd., Hangzhou Huacheng
Software Co., Ltd. and Zhejiang Dahua System Engineering Co., Ltd. were certified as high-tech enterprises, with validity for 3 years.
The corporate income tax for this year was paid at a reduced rate of 15%.
(5) According to the Notice on the Filing and Publicity of High-tech Enterprises Certified by the Certification Body of Jiangsu Province
in 2023 issued by the Office for the Administration of the Certification of National High-tech Enterprises on Thursday, January 4,
2024, our subsidiaries Jiangsu Huaruipin Technology Co., Ltd. was certified as high-tech enterprises, with validity for 3 years. The
corporate income tax for this year was paid at a reduced rate of 15%.
(6) According to the Announcement 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), and the Announcement on Preferential Income Tax Policies for Small Low-Profit Enterprises and Individua l
Industrial and Commercial Households (Announcement No.6/2023 of the Ministry of Finance and the State Taxation Administration)
of the Ministry of Finance and the State Taxation Administration, the annual taxable income of the following subsidiaries tha t is no
more than RMB 1 million shall be taxed at a reduced rate of 25% for tax purpose, and the enterprise income tax shall be paid at a rate
of 20%; and the annual taxable income exceeding RMB 1 million but no more than RMB 3 million shall be taxed at a reduced rate of
25% and the enterprise income tax shall be paid at a rate of 20%: Zhejiang Dahua Ju'an Technology Co., Ltd., Guangxi Dahua
Technology Co., Ltd., Zhejiang Huakong Software Co., Ltd., Hangzhou Xiaohua Technology Co., Ltd., Chengdu Zhichuang Yunshu
Technology Co., Ltd., Chengdu Huishan Smart Network Technology Co., Ltd., Guizhou Huayi Shixin Technology Co., Ltd., Zhejiang
Zhoushan Digital Development Operation Co. Ltd., Tianjin Dahua Information Technology Co., Ltd., Chengdu Dahua Zhishu
Information Technology Service Co., Ltd., Chengdu Huazhiwei Technology Co., Ltd., Chengdu Dahua Intelligent Information
Technology Co., Ltd., Nanyang Dahua Intelligent Information Technology Co., Ltd., Zhejiang Huaqi Intelligent Technology Co., Ltd.,
Xi'an IMOU Zhilian Technology Co., Ltd., Guangdong Huaxiyue Intelligent Technology Co., Ltd., Guangxi Dahua Yunlian
Information Technology Co., Ltd., and Zhejiang Huajie New Energy Operation Service Co., Ltd.
(7) According to the Notice of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation
on Tax Policy Issues concerning Further Implementing the Western China Development Strategy (C.S.H.G. [2011] No. 58), and the
Announcement of the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission
on Continuing the Enterprise Income Tax Policies for the Large-Scale Development of Western China (C.S.H.G. [2020] No. 23), 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
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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., Guangxi Huacheng Technology Co., Ltd. and Guizhou Meitan Dahua Information Technology Co., Ltd. The corporate income
tax for this year was paid at a reduced rate of 15%.
(8) According to the Notice on Value-added Tax Policies for Software Products (CaiShui [2011] No.100) by the Ministry of Finance
and the State Administration of Taxation, the sales of software products independently developed by Zhejiang Dahua Technology Co.,
Ltd., Zhejiang Dahua System Engineering Co., Ltd., Hangzhou Xiaohua Technology Co., Ltd., Zhejiang Huafei Intelligent Technology
Co., Ltd., Jiangsu Huaruipin Technology Co., Ltd., Zhejiang Huaruijie Technology Co., Ltd., Zhejiang Huajian Technology Co., Ltd.,
Zhejiang Huaxiao Technology Co., Ltd., Zhejiang Pixfra Technology Co., Ltd., Hangzhou Huacheng Software Co., Ltd., and Zhejia ng
HuaRay Technology Co., Ltd. shall be subject to a value-added tax at the rate of 13% first, and the actual tax burden of more than 3%
will be refunded after being reviewed and approved by the competent tax authorities.
(9) According to the Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying the Value-Added
Tax Reduction and Exemption Policies for Small-Scale Value-Added Tax Taxpayers and Other Policies (CaiShui [2023] No.1), from
2023, the taxpayers from the productive and consumer-oriented service sectors may respectively increase 5% and 10% of current
deductible input tax to offset the taxable amount (hereinafter referred to as “Additional Deduction Policy”). The subsidiarie s of the
Company, Zhejiang Dahua Security Network Operation Service Co., Ltd., Beijing Huayue Shangcheng Information Technology
Service Co., Ltd., Shanghai Huashang Chengyue Information Technology Service Co., Ltd., Chengdu Dahua Zhilian Information
Technology Co., Ltd., Guangxi Dahua Zhicheng Co., Ltd., Tianjin Dahua Information Technology Co., Ltd., and Xinjiang Dahua
Zhihe Information Technology Co., Ltd. meet the requirements in the Additional Deduction Policy for value-added taxes and have
enjoyed preferential tax policies for additional deduction of input taxes from 2022.
(10) From January 1, 2023 to December 2027 On March 31, advanced manufacturing enterprises are allowed to deduct an additional
5% of the value-added tax payable based on the deductible input tax in the current period according to the provisions of the Treasury
Department and the State Administration of Taxation’s Announcement on the Additional Value-Added Tax (“VAT”) Credit Policy for
Advanced Manufacturing Enterprises” (Announcement No. 43 [2023] of the Treasury Department and the State Administration of
Taxation). Zhejiang HuaRay Technology Co., Ltd. complies with the additional VAT credit policy for the advance manufacturing
industry, so it has been entitled to the preferential tax policy for advanced manufacturing industries.
VII. Notes to the Items in the Consolidated Financial Statements
1. Cash and bank balances
Unit: RMB
Item Closing Balance Opening Balance
Cash on Hand 2,607.89 2,642.58
Digital Currency 160,820.00
Bank Balance 9,447,832,551.94 15,827,819,644.89
Other Cash and Bank Balances 149,787,956.70 143,022,007.00
Total 9,597,623,116.53 15,971,005,114.47
Including: Total Amount Deposited in
883,193,340.43 930,951,357.54
Overseas Banks
Other notes
Details of monetary funds that are restricted in use due to mortgage, pledge or freeze, are restricted in withdrawal due to centralized
management of funds, and are deposited in overseas banks but restricted in repatriation are as follows:
Item Closing Balance Balance at the end of the previous year
Bid/performance bond 76,756,725.23 68,981,082.99
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Frozen funds 13,262,530.45 6,862,600.24
Total 90,019,255.68 75,843,683.23
2. Trading Financial Assets
Unit: RMB
Item Closing Balance Opening Balance
Financial assets at fair value through
370,191,151.06 1,470,000.00
profit or loss in this period
Including:
Financial products 1,470,000.00
Derivative Financial Assets 384,471.06
Stock 369,806,680.00
Total 370,191,151.06 1,470,000.00
3. Notes Receivable
(1) Disclosure of Notes Receivable
Unit: RMB
Item Closing Balance Opening Balance
Bank Acceptance Notes 544,568,788.14 665,341,998.76
Commercial Acceptance Notes 100,892,192.19 147,697,193.99
Total 645,460,980.33 813,039,192.75
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti value Proporti value
Amount Amount proporti Amount Amount proporti
on on
on on
Notes
Receiva
ble with
the Bad
Debt
Provisio 659,847, 14,386,6 645,460, 834,798, 21,758,9 813,039,
100.00% 2.18% 100.00% 2.61%
n 601.08 20.75 980.33 129.64 36.89 192.75
Accrued
Based
on
Combin
ations
Includ
ing:
Bank 550,158, 5,589,91 544,568, 672,300, 6,958,69 665,341,
83.38% 1.02% 80.53% 1.04%
Accepta 698.95 0.81 788.14 691.46 2.70 998.76
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
nce
Notes
Comme
rcial
109,688, 8,796,70 100,892, 162,497, 14,800,2 147,697,
Accepta 16.62% 8.02% 19.47% 9.11%
902.13 9.94 192.19 438.18 44.19 193.99
nce
Notes
659,847, 14,386,6 645,460, 834,798, 21,758,9 813,039,
Total 100.00% 100.00%
601.08 20.75 980.33 129.64 36.89 192.75
Category name of bad debt provision based on combination: Bank and commercial acceptance bills
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Bank Acceptance Notes 550,158,698.95 5,589,910.81 1.02%
Commercial Acceptance
109,688,902.13 8,796,709.94 8.02%
Notes
Total 659,847,601.08 14,386,620.75
If the bad debt provisions of notes receivable are made according to the general model of expected credit losses:
□ Applicable Not applicable
(3) Provision for bad debts accrued, recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
Balance Accrued Written Off Others Balance
Reversed
Bank
Acceptance 6,958,692.70 1,368,781.89 5,589,910.81
Notes
Commercial
Acceptance 14,800,244.19 6,003,534.25 8,796,709.94
Notes
Total 21,758,936.89 7,372,316.14 14,386,620.75
Significant amount of recovered or reversed bad debt provision in this period:
□ Applicable Not applicable
(4) Notes receivable that the Company has pledged at the end of the period
Unit: RMB
Item Pledged amount by the end of period
Bank Acceptance Notes 362,313,646.48
Total 362,313,646.48
(5) Notes receivable that the Company has endorsed or discounted at the end of the period and that have
not yet expired on the balance sheet date
Unit: RMB
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Derecognised amount at the end of Not derecognised amount at the end of
Item
period period
Bank Acceptance Notes 25,409,130.30
Total 25,409,130.30
4. Accounts Receivable
(1) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 14,715,647,410.56 14,458,581,851.85
1 to 2 years 1,710,166,205.06 1,675,541,614.13
2 to 3 years 1,017,969,012.88 914,682,001.04
3 years or above 2,531,107,470.41 2,359,337,149.65
3 to 4 years 715,221,245.03 627,873,130.02
4 to 5 years 473,135,179.97 605,039,214.61
5 years or above 1,342,751,045.41 1,126,424,805.02
Total 19,974,890,098.91 19,408,142,616.67
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti value Proporti value
Amount Amount proporti Amount Amount proporti
on on
on on
Account
s
receivab
les with
the bad
debt 452,375, 427,386, 24,989,4 467,182, 433,667, 33,515,7
2.26% 94.48% 2.41% 92.83%
provisio 636.05 235.86 00.19 946.91 151.15 95.76
n
accrued
based on
single
item
Includ
ing:
Account
s
receivab
452,375, 427,386, 24,989,4 467,182, 433,667, 33,515,7
le with 2.26% 94.48% 2.41% 92.83%
636.05 235.86 00.19 946.91 151.15 95.76
insignifi
cant
single
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
amount
but
accrued
for
separate
provisio
n of bad
debt
Account
s
receivab
les with
the bad
19,522,5 16,629,3 18,940,9 16,243,2
debt 2,893,15 2,697,67
14,462.8 97.74% 14.82% 63,334.9 59,669.7 97.59% 14.24% 88,158.2
provisio 1,127.87 1,511.49
6 9 6 7
n
accrued
based on
combina
tions
Includ
ing:
Aging 19,522,5 16,629,3 18,940,9 16,243,2
2,893,15 2,697,67
Analysis 14,462.8 97.74% 14.82% 63,334.9 59,669.7 97.59% 14.24% 88,158.2
1,127.87 1,511.49
Portfolio 6 9 6 7
19,974,8 16,654,3 19,408,1 16,276,8
3,320,53 3,131,33
Total 90,098.9 100.00% 52,735.1 42,616.6 100.00% 03,954.0
7,363.73 8,662.64
1 8 7 3
Category name of individual provision for bad debts: Accounts receivable with insignificant single amount but accrued for separate
provision of bad debt
Unit: RMB
Opening Balance Closing Balance
Name Reason for
Bad debt Bad debt Accrued
Book balance Book balance making bad
provision provision proportion
debt provision
Expected to be
Customer 1 225,140,645.36 225,140,645.36 225,140,645.36 225,140,645.36 100.00% unable to
recover
Expected to be
Customer 2 49,001,963.55 49,001,963.55 49,001,963.55 49,001,963.55 100.00% unable to
recover
Expected to be
Customer 3 38,612,198.42 38,612,198.42 38,612,198.42 38,612,198.42 100.00% unable to
recover
Expected to be
Customer 4 20,596,426.50 20,596,426.50 20,596,426.50 20,596,426.50 100.00% unable to
recover
Expected to be
Customer 5 18,790,253.00 18,790,253.00 18,790,253.00 18,790,253.00 100.00% unable to
recover
Expected to be
Miscellaneous 115,041,460.08 81,525,664.32 100,234,149.22 75,244,749.03 75.07% partially
unrecoverable
Total 467,182,946.91 433,667,151.15 452,375,636.05 427,386,235.86
135
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Category name of bad debt provision based on combination: Aging Analysis Portfolio
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
14,712,970,940.47 735,648,233.66 5.00%
year)
1 to 2 years 1,686,530,404.97 168,653,040.50 10.00%
2 to 3 years 1,013,456,093.12 304,036,827.94 30.00%
3 to 4 years 668,039,540.88 334,019,770.44 50.00%
4 to 5 years 453,621,140.46 362,896,912.37 80.00%
5 years or above 987,896,342.96 987,896,342.96 100.00%
Total 19,522,514,462.86 2,893,151,127.87
If the bad debt provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable Not applicable
(3) Provision for bad debts accrued, recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
Balance Accrued Written Off Others Balance
Reversed
Bad debt 3,131,338,662. 3,320,537,363.
217,728,284.41 19,183,189.91 -9,346,393.41
provision 64 73
3,131,338,662. 3,320,537,363.
Total 217,728,284.41 19,183,189.91 -9,346,393.41
64 73
Significant amount of recovered or reversed bad debt provision in this period:
None
(4) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Accounts receivable actually written off 19,183,189.91
Write-off of important accounts receivable:
None
(5) Accounts receivable and contract assets of the top five closing balances collected by debtors
Unit: RMB
Closing balance of
As a percentage of
Closing balance of provision for bad
Closing balance of accounts
Closing balance of accounts debts on accounts
Name of Unit accounts receivables and
contract assets receivable and receivable and
receivable total ending
contract assets impairment of
balance
contract assets
136
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Customer 1 1,295,976,570.29 1,295,976,570.29 6.42% 64,798,828.51
Customer 2 471,567,845.08 471,567,845.08 2.34% 23,578,392.43
Customer 3 354,656,063.52 354,656,063.52 1.76% 68,115,702.49
Customer 4 345,825,793.96 345,825,793.96 1.71% 17,291,289.70
Customer 5 331,966,086.53 21,815,847.00 353,781,933.53 1.75% 223,020,674.95
Total 2,799,992,359.38 21,815,847.00 2,821,808,206.38 13.98% 396,804,888.08
5. Contract Assets
(1) Contract Assets
Unit: RMB
Closing Balance Opening Balance
Item Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Completed but
28,579,042.87 351,967.02 28,227,075.85 33,413,988.93 421,118.95 32,992,869.98
unsettled assets
O&M service 29,272,125.33 292,721.26 28,979,404.07 6,198,950.93 66,600.03 6,132,350.90
Quality
guarantee 71,042,020.31 13,718,512.34 57,323,507.97 62,344,437.16 14,755,441.70 47,588,995.46
deposit
Total 128,893,188.51 14,363,200.62 114,529,987.89 101,957,377.02 15,243,160.68 86,714,216.34
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti value Proporti value
Amount Amount proporti Amount Amount proporti
on on
on on
Provisio
n of bad
debts 128,893, 14,363,2 114,529, 101,957, 15,243,1 86,714,2
100.00% 11.14% 100.00% 14.95%
based on 188.51 00.62 987.89 377.02 60.68 16.34
combina
tion
Including:
Combin
ation of
128,893, 14,363,2 114,529, 101,957, 15,243,1 86,714,2
nature 100.00% 11.14% 100.00% 14.95%
188.51 00.62 987.89 377.02 60.68 16.34
of the
funds
128,893, 14,363,2 114,529, 101,957, 15,243,1 86,714,2
Total 100.00% 11.14% 100.00% 14.95%
188.51 00.62 987.89 377.02 60.68 16.34
Category name of bad debt provision based on combination: Combination of nature of the funds
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Combination of nature of the
128,893,188.51 14,363,200.62 11.14%
funds
137
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Total 128,893,188.51 14,363,200.62
Provision for bad debts based on general model of expected credit losses
□ Applicable Not applicable
(3) Provision for bad debts accrued, recovered or reversed in this period
Unit: RMB
Provisions of this Recovered or reversed
Item Write-off in this period Reasons
period during the period
Completed but
69,151.93
unsettled assets
O&M service 226,121.23
Quality guarantee
1,036,929.36
deposit
Total 226,121.23 1,106,081.29
Significant amount of recovered or reversed bad debt provision in this period:
None
6. Receivables Financing
(1) Disclosure of receivables financing
Unit: RMB
Item Closing Balance Opening Balance
Bank acceptance bill 685,382,779.93 810,713,267.86
Total 685,382,779.93 810,713,267.86
(2) Financing of accounts receivable pledged by the Company at the end of the period
Unit: RMB
Item Pledged amount by the end of period
Bank acceptance bill 533,317,810.71
Total 533,317,810.71
(3) Financing of accounts receivable that the Company has endorsed or discounted at the end of the period
and that have not yet expired on the balance sheet date
Unit: RMB
Derecognised amount at the end of Not derecognised amount at the end of
Item
period period
Bank acceptance bill 44,106,306.89
Total 44,106,306.89
7. Other Receivables
Unit: RMB
Item Closing Balance Opening Balance
138
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Dividends Receivable 5,194,653.19 5,784,225.02
Other Receivables 312,163,023.83 331,740,463.34
Total 317,357,677.02 337,524,688.36
(1) Dividends Receivable
1) Classification of Dividends Receivable
Unit: RMB
Project (or Invested Unit) Closing Balance Opening Balance
Intelbras S.A. 3,951,378.19 5,784,225.02
Smartsens Technology (Shanghai) Co., Ltd. 1,243,275.00
Total 5,194,653.19 5,784,225.02
(2) Other receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Deposits 148,791,203.75 148,419,383.42
Prepaid or advance expense 132,035,501.55 129,465,778.21
Equity Transfer Fund 26,671,858.40 44,693,899.47
Export tax rebate 26,923.43
Employee home loan 88,067,811.00 89,695,884.00
Others 2,203,616.92 402,441.33
Total 397,769,991.62 412,704,309.86
2) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 189,378,055.13 175,351,662.59
1 to 2 years 80,194,888.01 117,075,815.72
2 to 3 years 50,912,295.59 57,728,030.61
3 years or above 77,284,752.89 62,548,800.94
3 to 4 years 39,186,192.68 31,838,007.64
4 to 5 years 24,233,844.97 17,297,622.38
5 years or above 13,864,715.24 13,413,170.92
Total 397,769,991.62 412,704,309.86
3) Disclosure by bad debt accrual method
Applicable □ Not applicable
Unit: RMB
Categor Closing Balance Opening Balance
139
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
y Book balance Bad debt provision Book balance Bad debt provision
Accrued Book Accrued Book
Proporti value Proporti value
Amount Amount proporti Amount Amount proporti
on on
on on
Provisio
n of bad
debts 397,769, 85,606,9 312,163, 412,704, 80,963,8 331,740,
100.00% 21.52% 100.00% 19.62%
based on 991.62 67.79 023.83 309.86 46.52 463.34
combina
tion
Including:
Aging
397,769, 85,606,9 312,163, 412,704, 80,963,8 331,740,
Analysis 100.00% 21.52% 100.00% 19.62%
991.62 67.79 023.83 309.86 46.52 463.34
Portfolio
397,769, 85,606,9 312,163, 412,704, 80,963,8 331,740,
Total 100.00% 21.52% 100.00% 19.62%
991.62 67.79 023.83 309.86 46.52 463.34
Category name of bad debt provision based on combination: Aging Analysis Portfolio
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
189,378,055.13 9,468,902.76 5.00%
year)
1 to 2 years 80,194,888.01 8,019,488.80 10.00%
2 to 3 years 50,912,295.59 15,273,688.68 30.00%
3 to 4 years 39,186,192.68 19,593,096.34 50.00%
4 to 5 years 24,233,844.97 19,387,075.97 80.00%
5 years or above 13,864,715.24 13,864,715.24 100.00%
Total 397,769,991.62 85,606,967.79
Provision for bad debts based on general model of expected credit losses:
Unit: RMB
Phase One Phase Two Phase Three
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire extension for the entire extension Total
in the next 12 months (without credit (with credit
impairment) impairment)
Balance as of January
40,311,666.81 38,930,999.37 1,721,180.34 80,963,846.52
1, 2024
Balance in the current
period as of January 1,
2024
--Transfer to phase two -1,065,155.77 1,065,155.77
--Transfer to phase
-75,224.54 -45,300.00 120,524.54
three
Provisions of this
1,003,690.33 3,997,489.89 650,493.70 5,651,673.92
period
Write off in this period 58,228.85 142,605.54 48,681.46 249,515.85
Other variations -759,036.80 -759,036.80
Balance as of June 30,
39,357,711.18 43,805,739.49 2,443,517.12 85,606,967.79
2024
Book balance changes with significant changes in loss provision in the current period
140
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
□ Applicable Not applicable
4) Provision for bad debts accrued, recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or Resale or write-
Balance Accrued Others Balance
Reversed off
Bad debt
80,963,846.52 5,651,673.92 249,515.85 -759,036.80 85,606,967.79
provision
Total 80,963,846.52 5,651,673.92 249,515.85 -759,036.80 85,606,967.79
Significant amount of recovered or reversed bad debt provision in this period:
None
5) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Other accounts receivable actually written off 249,515.85
Write-off of other important receivables:
None
6) Other receivables of the top five closing balances collected by debtors
Unit: RMB
As a percentage of
Bad debt provision
Nature of the total other
Name of Unit Closing Balance Aging at the end of the
funds receivables at the
period
end of the period
Equity Transfer
Company 1 26,671,858.40 1 to 2 years 6.71% 2,667,185.84
Fund
Company 2 Deposits 11,832,000.00 3 to 4 years 2.97% 5,916,000.00
Prepaid or advance
Company 3 8,584,072.15 Within 1 year 2.16% 429,203.61
expense
Prepaid or advance
Company 4 6,721,623.06 Within 1 year 1.69% 336,081.15
expense
RMB 500,000.00
Prepaid or advance for 3 to 4 years,
Company 5 5,500,000.00 1.38% 4,250,000.00
expense RMB 5,000,000.00
for 4 to 5 years
Total 59,309,553.61 14.91% 13,598,470.60
8. Prepayments
(1) Aging analysis of prepayments is as follows
Unit: RMB
141
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Closing Balance Opening Balance
Aging
Amount Proportion Amount Proportion
Within 1 year 252,373,333.14 90.39% 168,576,768.97 89.01%
1 to 2 years 16,069,941.30 5.76% 11,544,945.31 6.10%
2 to 3 years 2,406,695.84 0.86% 5,759,402.22 3.04%
3 years or above 8,358,557.68 2.99% 3,507,600.49 1.85%
Total 279,208,527.96 189,388,716.99
An explanation of the reasons why the prepayment with an aging of more than one year and significant amounts has not been settle d
timely:
None
(2) Advance payment of the top five closing balances by prepayment parties
The advance payment of the top five closing balances by the concentration of prepayment parties was summed up to RMB
133,738,616.85, accounting for 47.90% of the total closing balance of the advance payment.
9. Inventory
Does the company need to comply with disclosure requirements in the real estate industry?
No
(1) Categories of inventories
Unit: RMB
Closing Balance Opening Balance
Provision for Provision for
Impairment of Impairment of
Item Inventories or Inventories or
Book balance Provision for Book value Book balance Provision for Book value
Impairment of Impairment of
Performance Performance
Cost Cost
2,016,491,743. 1,942,817,054. 1,817,465,527. 1,752,715,827.
Raw materials 73,674,688.91 64,749,700.02
26 35 90 88
Work-in-
597,604,646.54 13,675,494.63 583,929,151.91 419,964,218.05 8,473,870.92 411,490,347.13
progress
2,462,308,875. 2,367,737,513. 2,305,873,410. 2,219,257,430.
Finished goods 94,571,362.02 86,615,979.53
18 16 13 60
Contract
Performance 526,011,307.70 21,503,611.47 504,507,696.23 727,101,492.76 22,396,500.68 704,704,992.08
Costs
Outsourced
work-in- 312,960,416.18 312,960,416.18 244,439,946.33 244,439,946.33
progress
5,915,376,988. 5,711,951,831. 5,514,844,595. 5,332,608,544.
Total 203,425,157.03 182,236,051.15
86 83 17 02
142
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(2) Provision for impairment of inventories and provision for impairment of contract performance cost
Unit: RMB
Increased in the Current Period Decreased in the Current Period
Opening Closing
Item Reversals or
Balance Accrued Others Others Balance
write-offs
Raw materials 64,749,700.02 33,444,166.73 20,095,861.74 4,423,316.10 73,674,688.91
Work-in-
8,473,870.92 8,772,755.18 5,246,980.85 -1,675,849.38 13,675,494.63
progress
Finished goods 86,615,979.53 15,496,434.30 7,279,694.64 261,357.17 94,571,362.02
Contract
Performance 22,396,500.68 4,863,624.11 5,756,513.32 21,503,611.47
Costs
Total 182,236,051.15 62,576,980.32 38,379,050.55 3,008,823.89 203,425,157.03
10. Non-current Assets Due within 1 Year
Unit: RMB
Item Closing Balance Opening Balance
Long-term accounts receivables due
257,902,249.66 303,454,116.40
within 1 year
Total 257,902,249.66 303,454,116.40
11. Other Current Assets
Unit: RMB
Item Closing Balance Opening Balance
Return cost receivable 9,991,372.46 11,228,032.04
Not deducted input tax 615,830,230.80 555,798,264.68
Prepaid enterprise income tax 32,912,949.31 34,017,571.59
National debt reverse repurchase 338,331,000.00
Issue expenses 397,041.66
Total 659,131,594.23 939,374,868.31
12. Long-term Receivables
(1) Long-term receivables
Unit: RMB
Closing Balance Opening Balance Range of
Item Bad debt Bad debt discount
Book balance Book value Book balance Book value rate
provision provision
Installme
nt
848,503,084.22 9,548,612.20 838,954,472.02 957,523,390.97 10,864,081.27 946,659,309.70
Payment
for
143
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Selling
Products
Including
:
Unrealize 3.69%-
106,358,136.61 106,358,136.61 128,884,735.86 128,884,735.86
d 5.88%
Financin
g Income
Total 848,503,084.22 9,548,612.20 838,954,472.02 957,523,390.97 10,864,081.27 946,659,309.70
(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti value Proporti value
Amount Amount proporti Amount Amount proporti
on on
on on
Provisio
n of bad
debts 954,861, 9,548,61 945,312, 1,086,40 10,864,0 1,075,54
100.00% 1.00% 100.00% 1.00%
based on 220.83 2.20 608.63 8,126.83 81.27 4,045.56
combina
tion
Including:
Combin
ation of
954,861, 9,548,61 945,312, 1,086,40 10,864,0 1,075,54
nature of 100.00% 1.00% 100.00% 1.00%
220.83 2.20 608.63 8,126.83 81.27 4,045.56
the
funds
954,861, 9,548,61 945,312, 1,086,40 10,864,0 1,075,54
Total 100.00% 1.00% 100.00% 1.00%
220.83 2.20 608.63 8,126.83 81.27 4,045.56
Category name of bad debt provision based on combination: Combination of nature of the funds
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Combination of nature of the
954,861,220.83 9,548,612.20 1.00%
funds
Total 954,861,220.83 9,548,612.20
(3) Provision for bad debts accrued, recovered or reversed in this period
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or Resale or write-
Balance Accrued Others Balance
Reversed off
Bad debt
10,864,081.27 1,315,469.07 9,548,612.20
provision
Total 10,864,081.27 1,315,469.07 9,548,612.20
Significant amount of recovered or reversed bad debt provision in this period:
144
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
None
13. Long-term Equity Investments
Unit: RMB
Decrease/Increase in the current period
Invest
ment Closin
Openi Adjust
profit Cash g
Openi ng ment Closin
and divide Provisi balanc
The ng balanc on g
Invest Invest loss Other nds or on for e of
investe balanc e of other balanc
ments ment recogn change profit impair provisi
d e provisi compr Others e
increas decrea ized s in declare ment on for
entity (book on for ehensi (book
ed sed under equity d to accrue decline
value) impair ve value)
the distrib d in
ment incom
equity ute value
e
metho
d
Ⅰ. Joint ventures
II. Affiliates
480,07 29,013 10,693 - 494,23
Intelbr
9,908. ,678.8 ,541.1 4,166, 3,702.
as S.A.
08 0 2 343.69 07
Ruicit
y
Digital 78,231 - 71,748
Techn ,566.1 6,483, ,188.4
ology 0 377.66 4
Co.,
Ltd.
Hangz
hou
Juhuan
yan
Inform 723,49 723,49
ation 6.39 6.39
Techn
ology
Co.,
Ltd.
Guang
dong
Zhishi
-
Digital 422,43
422,43
Techn 6.59
6.59
ology
Co.,
Ltd.
Ningb
o
Huaya 67,432 67,650
217,95
n ,554.8 ,506.8
2.09
Chuan 0 9
gxi
Ventur
145
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
e
Capital
Invest
ment
Partner
ship
(Limit
ed
Partner
ship)
Dezho
u
Shuzhi
Inform
3,444, 59,180 3,503,
ation
758.26 .72 938.98
Techn
ology
Co.,
Ltd.
Sichua
n
Hengji
Anhua
Interne -
1,121, 1,030,
t of 90,896
844.56 947.84
Things .72
Techn
ology
Co.,
Ltd.
Guang
xi FTZ
Huaqi
n
Wisdo
m Park
598,28 94,898 693,18
Techn
7.37 .12 5.49
ology
Resear
ch
Institut
e Co.,
Ltd.
Ningb
o Cida
Yongs
hun
-
Intellig 1,163, 837,62
326,29
ent 912.73 1.29
1.44
Techn
ology
Co.,
Ltd.
Zhejia
ng 95,380 - 91,933
1,704,
Huach ,797.8 5,152, ,140.3
423.02
uang 5 080.53 4
Vision
146
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Techn
ology
Co.,
Ltd.
727,45 16,910 10,693 - 731,63
Subtot 723,49 1,704, 723,49
3,629. ,626.7 ,541.1 3,743, 1,231.
al 6.39 423.02 6.39
75 9 2 907.10 34
727,45 16,910 10,693 - 731,63
723,49 1,704, 723,49
Total 3,629. ,626.7 ,541.1 3,743, 1,231.
6.39 423.02 6.39
75 9 2 907.10 34
The recoverable amount is determined as the net of fair value less costs of disposal.
□ Applicable Not applicable
The recoverable amount is determined as the present value of the expected future cash flows.
□ Applicable Not applicable
14. Other Non-current Financial Assets
Unit: RMB
Item Closing Balance Opening Balance
Investment in equity instruments 46,844,731.16 478,782,601.67
Investment in financial products 961,583,353.80 1,056,959,784.04
Total 1,008,428,084.96 1,535,742,385.71
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 Balance 174,113,990.28 174,113,990.28
2. Increased in the
16,948,653.39 16,948,653.39
Current Period
(1) Purchase
(2) Transfer of
16,948,653.39 16,948,653.39
fixed assets\intangible assets
(3) Acquisition
3. Decreased in the
Current Period
(1) Disposal
(2) Other
Transfer-out
4. Closing Balance 191,062,643.67 191,062,643.67
II. Accumulated
Depreciation and
Amortization
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
1. Opening Balance 44,476,986.28 44,476,986.28
2. Increased in the
4,739,709.42 4,739,709.42
Current Period
(1) Accrual or
4,203,002.06 4,203,002.06
Amortization
(2) Transfer of fixed
536,707.36 536,707.36
assets\intangible assets
3. Decreased in the
Current Period
(1) Disposal
(2) Other
Transfer-out
4. Closing Balance 49,216,695.70 49,216,695.70
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
1. Closing Balance on
141,845,947.97 141,845,947.97
Book Value
2. Opening Balance on
129,637,004.00 129,637,004.00
Book Value
(2) Investment properties measured at fair value
□ Applicable Not applicable
(3) Investment properties with certificates of title not granted
No investment properties with certificates of title not granted at the end of the period
16. Fixed Assets
Unit: RMB
Item Closing Balance Opening Balance
Fixed Assets 4,988,539,382.64 4,937,180,876.88
Total 4,988,539,382.64 4,937,180,876.88
148
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(1) Fixed assets
Unit: RMB
Housing and Machinery and Electronic and other
Item Means of transport Total
building equipment equipment
Ⅰ. Original book
value:
1. Opening
4,700,211,205.93 618,035,677.34 28,747,880.43 1,908,687,345.08 7,255,682,108.78
Balance
2. Increased
in the Current 41,164,833.36 2,125,592.76 713,404.00 327,733,972.86 371,737,802.98
Period
(1)
12,678,294.88 2,125,592.76 713,404.00 327,733,972.86 343,251,264.50
Purchase
(2)
Transferred From
28,486,538.48 28,486,538.48
Construction in
Progress
(3)
Acquisition
(4) Transfer of
investment
properties
3. Decreased
in the Current 16,948,653.39 1,863,980.57 1,190,529.87 18,656,811.28 38,659,975.11
Period
(1)
Disposal or 1,863,980.57 975,924.06 15,263,428.52 18,103,333.15
Scrapping
(2) Transfer to
investment real 16,948,653.39 16,948,653.39
estate
(3) Disposal of
214,605.81 3,393,382.76 3,607,988.57
subsidiaries
4. Currency
Translation -78,407.50 -47,657.77 -72,849.50 -1,085,973.64 -1,284,888.41
Difference
5. Closing
4,724,348,978.40 618,249,631.76 28,197,905.06 2,216,678,533.02 7,587,475,048.24
Balance
II. Accumulated
depreciation
1. Opening
743,791,548.93 216,453,185.63 21,774,098.02 1,336,482,399.32 2,318,501,231.90
Balance
2. Increased
in the Current 112,849,360.10 28,497,147.82 1,458,623.46 155,925,823.96 298,730,955.34
Period
(1)
112,849,360.10 28,497,147.82 1,458,623.46 155,925,823.96 298,730,955.34
Accrual
(2) Transfer of
investment
properties
3. Decreased 536,707.36 834,030.59 680,226.28 15,392,013.90 17,442,978.13
149
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
in the Current
Period
(1)
Disposal or 834,030.59 476,350.76 13,103,228.99 14,413,610.34
Scrapping
(2) Transfer to
investment real 536,707.36 536,707.36
estate
(3) Disposal of
203,875.52 2,288,784.91 2,492,660.43
subsidiaries
4. Currency
Translation -19,993.91 -46,656.80 -65,164.76 -721,728.04 -853,543.51
Difference
5. Closing
856,084,207.76 244,069,646.06 22,487,330.44 1,476,294,481.34 2,598,935,665.60
Balance
III. Impairment
Provision
1. Opening
Balance
2. Increased
in the Current
Period
(1)
Accrual
3. Decreased
in the Current
Period
(1)
Disposal or
Scrapping
4. Closing
Balance
IV. Book value
1. Closing
Balance on Book 3,868,264,770.64 374,179,985.70 5,710,574.62 740,384,051.68 4,988,539,382.64
Value
2. Opening
Balance on Book 3,956,419,657.00 401,582,491.71 6,973,782.41 572,204,945.76 4,937,180,876.88
Value
(2) Fixed assets rent out under operating leases
Unit: RMB
Item Book Value at the End of the Period
Buildings and constructions 587,555,648.61
Electronic and other equipment 80,984,949.89
(3) Fixed assets with certificates of title not granted
Unit: RMB
150
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Reasons for certificates of title not
Item Book value
granted
Commercial housing in Cisco Intelligent In the process of obtaining the real estate
112,947,232.82
Technology Park certificates
(4) Impairment test of fixed assets
□ Applicable Not applicable
17. Construction in Progress
Unit: RMB
Item Closing Balance Opening Balance
Projects under Construction 1,169,264,949.25 1,008,612,408.49
Total 1,169,264,949.25 1,008,612,408.49
(1) Construction in progress
Unit: RMB
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Phase I, Urban
Intelligent
Information
37,183,163.71 37,183,163.71 37,183,163.71 37,183,163.71
Industry
Construction
Project
New project of
Southwest
292,859,644.37 292,859,644.37 263,076,398.23 263,076,398.23
R&D Center of
Dahua Co., Ltd.
New projects of
Southwestern
China
368,369,372.88 368,369,372.88 335,849,207.03 335,849,207.03
Operation
Center of
Dahua
Henan Smart
IoT base of 139,995,363.06 139,995,363.06 111,780,241.11 111,780,241.11
Dahua
Construction
project of
Dahua
intelligent 288,388,920.48 288,388,920.48 101,525,907.86 101,525,907.86
products
manufacturing
base
Others 42,468,484.75 42,468,484.75 159,197,490.55 159,197,490.55
1,169,264,949. 1,169,264,949. 1,008,612,408. 1,008,612,408.
Total
25 25 49 49
151
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(2) Changes in significant construction in progress
Unit: RMB
Capit
Includi alizat
Accu
Project ng: ion
Amount Other mulat
accumul Capital rate
of fixed amoun ed
Openi Increase Closi ative Proje ized of the
assets ts capital
Item Bud ng d in the ng investme ct interes intere Capital
transferre decrea ized
Name get Balanc Current Balan nt as a Prog t st in Source
d in the sed in interes
e Period ce percenta ress amoun the
current current t
ge of the t in the curre
period period amou
budget current nt
nt
period perio
d
New
project
of
Southw RM
Equity
est B
263,07 292,8 76.4 funds/ra
R&D 417 29,783,2 76.49%
6,398. 59,64 9% ised
Center milli 46.14
23 4.37 funds
of on
Dahua
Co.,
Ltd.
New
projects
of
Southw RM
estern B
335,84 368,3 90.0 Equity
China 396 32,520,1 101.29%
9,207. 69,37 0% Fund
Operati milli 65.85
03 2.88
on on
Center
of
Dahua
Constru
ction
project
of
RM
Dahua
B
intellige 101,52 288,3 52.3 Equity
600 186,863, 52.39%
nt 5,907. 88,92 9% Fund
milli 012.62
product 86 0.48
on
s
manufa
cturing
base
700,45 949,6
Total 249,166,
1,513. 17,93
424.61
12 7.73
(3) Impairment test of construction in progress
□ Applicable Not applicable
152
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
18. Right-of-use Assets
(1) Right-of-use assets
Unit: RMB
Buildings and constructions Machinery and Total
Item
equipment
Ⅰ. Original book value
1. Opening Balance 518,737,508.83 8,884,640.73 527,622,149.56
2. Increased in the Current Period 65,484,854.24 111,961.08 65,596,815.32
3. Decreased in the Current Period 63,520,305.76 63,520,305.76
(1) Expiration or early
49,621,144.74 49,621,144.74
termination of lease contracts
(2) Disposal of subsidiaries 13,899,161.02 13,899,161.02
4. Currency Translation Difference -3,116,106.39 -3,116,106.39
5. Closing Balance 517,585,950.92 8,996,601.81 526,582,552.73
II. Accumulated depreciation
1. Opening Balance 226,494,557.71 1,925,005.29 228,419,563.00
2. Increased in the Current Period 73,885,826.67 472,222.28 74,358,048.95
(1) Accrual 73,885,826.67 472,222.28 74,358,048.95
3. Decreased in the Current Period 51,378,894.12 51,378,894.12
(1) Expiration or early
44,351,589.69 44,351,589.69
termination of lease contracts
(2) Disposal of subsidiaries 7,027,304.43 7,027,304.43
4. Currency Translation Difference -950,013.84 -950,013.84
5. Closing Balance 248,051,476.42 2,397,227.57 250,448,703.99
III. Impairment Provision
1. Opening Balance
2. Increased in the Current Period
(1) Accrual
3. Decreased in the Current Period
(1) Disposal
4. Closing Balance
IV. Book value
1. Closing Balance on Book Value 269,534,474.50 6,599,374.24 276,133,848.74
2. Opening Balance on Book Value 292,242,951.12 6,959,635.44 299,202,586.56
(2) Impairment test of right-to-use assets
□ Applicable Not applicable
153
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
19. Intangible Assets
(1) Details of intangible assets
Unit: RMB
Patent Non-patented Software
Item Land use rights Software Trademark Total
right technology copyright
Ⅰ. Original
book value
1.
Opening 626,404,053.87 68,530,508.70 173,816,614.23 2,077,241.60 4,000,000.00 874,828,418.40
Balance
2.
Increased in
1,699,038.41 7,209,598.45 8,908,636.86
the Current
Period
(1) Purchase 1,699,038.41 4,317,515.90 6,016,554.31
(2) Internal
research and
development
(3)
Acquisition
(4)
Transferred
from 2,892,082.55 2,892,082.55
construction
in progress
(5) Transfer
of
investment
properties
3.
Decreased in
37,285.01 37,285.01
the Current
Period
(1) Disposal 15,769.47 15,769.47
(2) Transfer
to
investment
real estate
(3) Disposal
of 21,515.54 21,515.54
subsidiaries
4. Currency
Translation -9,875.00 -17,935.52 -9,480.00 -37,290.52
Difference
5.
Closing 628,093,217.28 68,530,508.70 180,970,992.15 2,067,761.60 4,000,000.00 883,662,479.73
Balance
II.
Accumulated
amortization
154
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
1.
Opening 70,706,202.43 58,529,703.12 144,836,253.14 2,077,241.60 4,000,000.00 280,149,400.29
Balance
2.
Increased in
6,996,724.64 2,248,671.33 12,913,877.98 22,159,273.95
the Current
Period
(1) Accrual 6,996,724.64 2,248,671.33 12,913,877.98 22,159,273.95
(2) Transfer
of
investment
properties
3.
Decreased in
37,285.01 37,285.01
the Current
Period
(1) Disposal 15,769.47 15,769.47
(2) Transfer
to
investment
real estate
(3) Disposal
of 21,515.54 21,515.54
subsidiaries
4.
Currency
-17,823.01 -9,480.00 -27,303.01
Translation
Difference
5.
Closing 77,702,927.07 60,778,374.45 157,695,023.10 2,067,761.60 4,000,000.00 302,244,086.22
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
155
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
IV. Book
value
1.
Closing
550,390,290.21 7,752,134.25 23,275,969.05 581,418,393.51
Balance on
Book Value
2.
Opening
555,697,851.44 10,000,805.58 28,980,361.09 594,679,018.11
Balance on
Book Value
Intangible assets formed through in-house research and development at the end of the period are 0.00% of intangible assets balance.
(2) No land use right without the certificate of title at the end of the period
(3) Impairment test of intangible assets
□ Applicable Not applicable
20. Goodwill
(1) Original book value of goodwill
Unit: RMB
The invested Increased in the current period Decreased in the current period
entity or
Opening Generated from Closing
matters which
Balance business Disposal Balance
formed
goodwill combination
Dahua
Technology 6,615,294.18 6,615,294.18
Italy S.R.L.
Total 6,615,294.18 6,615,294.18
(2) Impairment provision for goodwill
Unit: RMB
The invested Increased in the current period Decreased in the current period
entity or
Opening Closing
matters which
Balance Accrued Disposal Balance
formed
goodwill
Dahua
Technology 0.00 0.00
Italy S.R.L.
Total 0.00 0.00
(3) Information about the asset group or asset group combination where the goodwill is located
Composition and basis of the Operational subsection and Is it consistent with the
Name
asset group or its combination basis previous year?
156
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
The asset group relating to the
goodwill formed by
acquisition of Dahua Recognition is based on
Technology Italy S.R.L., that whether the main cash inflow
Dahua Technology Italy
is, the long-term asset group, generated is independent of Yes
S.R.L.
including fixed assets and other asset groups or their
intangible assets, formed for combinations.
Dahua Technology Italy
S.R.L. on June 30, 2024.
(4) Determination method of recoverable amount
The recoverable amount is determined as the net of fair value less costs of disposal.
□ Applicable Not applicable
The recoverable amount is determined as the present value of the expected future cash flows.
Applicable □ Not applicable
Unit: RMB
Determinatio
Number of Key Key n basis of
Recoverable Impairment years of the parameters of parameters of key
Item Book value
amount amount forecast the forecast the steady parameters in
period period period the steady
period
Revenue
Revenue Predict
growth rate
growth rate cautiously as
of 9%-10%
Dahua of 0% over the income
113,896,203. 199,959,154. over the
Technology 2024 - 2028 the forecast will not
62 35 forecast
Italy S.R.L. period; increase in
period;
discount rate the steady
discount rate
of 15.60% period.
of 15.60%
113,896,203. 199,959,154.
Total
62 35
(5) Completion of performance commitment and goodwill impairment
There is a performance commitment when goodwill is formed and the reporting period or the previous reporting period falls within the
performance commitment period.
□ Applicable Not applicable
21. Long-term Deferred Expenses
Unit: RMB
Increased in the Prepaid Expenses Other Amounts
Item Opening Balance Closing Balance
Current Period in This Period Decreased
Improvement
expenditure of
69,962,883.75 9,785,412.65 21,524,163.88 457,179.99 57,766,952.53
fixed assets leased
by operating lease
Renovation Cost 65,372,390.20 8,682,088.07 11,575,112.26 62,479,366.01
Total 135,335,273.95 18,467,500.72 33,099,276.14 457,179.99 120,246,318.54
157
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
22. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred income tax assets not written off
Unit: RMB
Closing Balance Opening Balance
Item Deductible temporary Deferred Income Tax Deductible temporary Deferred Income Tax
difference Assets difference Assets
Provision for
3,205,517,304.39 609,938,439.81 2,945,448,093.79 561,492,926.21
Impairment of Assets
Unrealized Profit from
1,020,664,611.59 224,746,775.84 1,849,888,966.76 436,702,186.90
Internal Transactions
Deductible Losses 856,640,588.66 134,988,610.23 615,050,031.87 101,761,861.84
Equity incentive
229,119,432.39 36,063,541.35 291,671,905.31 45,689,152.55
expense
Expected Liabilities 176,073,432.73 26,816,327.95 170,920,678.13 26,157,016.58
Payroll payable 254,325,121.69 41,896,652.95 253,599,826.64 41,664,283.10
Costs from Tax
Increase Due to 549,070,434.14 104,747,239.03 557,868,000.15 107,970,125.57
Absence of Invoice
Changes in fair value
3,733,125.73 559,968.86 1,458,799.36 364,699.84
gains and losses
Book-tax difference of
174,953,943.19 32,342,008.44 188,753,783.73 35,399,648.53
lease liabilities
Investments in non-
493,490,855.50 74,023,628.33 520,408,538.53 78,061,280.78
monetary assets
Others 118,489,662.10 18,828,327.78 111,452,227.57 17,921,647.45
Total 7,082,078,512.11 1,304,951,520.57 7,506,520,851.84 1,453,184,829.35
(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
53,362,899.96 9,502,419.95 58,360,423.87 10,150,707.92
sales by installments
Changes in fair value
215,934,747.53 32,390,212.13 378,324,828.79 56,893,999.27
of financial instruments
Book-tax difference of
169,055,310.96 31,273,331.58 182,618,578.98 34,371,567.43
right-of-use assets
Investments in non-
323,116,498.20 48,467,474.73 430,682,928.47 64,602,439.27
monetary assets
Total 761,469,456.65 121,633,438.39 1,049,986,760.11 166,018,713.89
(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
Item Income Tax Assets Income Tax Assets or Income Tax Assets Income Tax Assets or
Offset against Liabilities after Offset Offset against Liabilities after Offset
158
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Liabilities at the End of at the End of the Period Liabilities at the Start at the Start of the
the Period of the Period Period
Deferred Income Tax
120,966,995.48 1,183,984,525.09 165,281,346.70 1,287,903,482.65
Assets
Deferred Income Tax
120,966,995.48 666,442.91 165,281,346.70 737,367.19
Liabilities
(4) Deferred income tax assets or liabilities listed by net amount after offset
Unit: RMB
Item Closing Balance Opening Balance
Deductible temporary difference 504,168,621.86 562,186,328.66
Deductible Losses 1,711,219,949.76 1,660,894,695.64
Total 2,215,388,571.62 2,223,081,024.30
(5) Details of unrecognized deferred income tax assets
Unit: RMB
Year Closing balance Opening balance Notes
2024 123,399,983.16 123,399,991.24
2025 207,549,204.43 260,522,250.84
2026 326,802,238.59 331,413,381.74
2027 475,571,567.14 476,126,194.63
2028 411,816,590.38 469,432,877.19
2029 and later 166,080,366.06
Total 1,711,219,949.76 1,660,894,695.64
23. Other Non-current Assets
Unit: RMB
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Contract Assets 79,227,426.95 4,736,983.33 74,490,443.62 80,729,279.52 5,837,202.88 74,892,076.64
Large-
denomination
3,724,731,464. 3,724,731,464.
certificates of
27 27
deposit from
banks
Prepayments
for purchase of
67,793,168.63 67,793,168.63 129,167,069.19 129,167,069.19
engineering
equipments
Prepayments
for acquisition 2,278,081.15 2,278,081.15 5,893,664.25 5,893,664.25
of real estate
Others 327,614.66 327,614.66 856,454.41 856,454.41
3,874,357,755. 3,869,620,772.
Total 4,736,983.33 216,646,467.37 5,837,202.88 210,809,264.49
66 33
159
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
24. Assets whose Ownership or Rights to Use is Restricted
Unit: RMB
Ending Beginning
Item Book Type of Restriction Book Type of Restriction
Book value Book value
balance Restriction s balance Restriction s
Guarantee Guarantee
letter letter
Cash and security security
90,019,255. 90,019,255. Restricted 75,843,683. 75,843,683. Restricted
Bank deposit and deposit and
68 68 use 23 23 use
Balances other other
restricted restricted
funds funds
Pledge Pledge
used to used to
issue bank issue bank
Notes
acceptance acceptance
receivable
921,040,58 921,040,58 bills and Restricted 951,747,36 951,747,36 bills and Restricted
and
7.49 7.49 endorsed or use 2.20 2.20 endorsed or use
receivables
discounted discounted
financing
notes not notes not
derecognis derecognis
ed ed
Financial Financial
discount discount
and and
factoring factoring
Accounts Restricted 7,238,385.6 7,238,385.6 Restricted
973,205.56 973,205.56 not not
receivable use 4 4 use
derecognis derecognis
ed in the ed in the
supply supply
chain chain
1,012,033,0 1,012,033,0 1,034,829,4 1,034,829,4
Total
48.73 48.73 31.07 31.07
25. Short-term Loans
(1) Categories of short-term loan
Unit: RMB
Item Closing Balance Opening Balance
Pledged loans 800,000,000.00 400,000,000.00
Fiduciary loans 549,800,000.00
Factoring loans in the supply chain
973,205.56 7,238,385.64
finance
Interest payable for short-term loan 387,944.54
Total 800,973,205.56 957,426,330.18
Description of the categories of short-term loan:
The secured borrowings refer to the acceptance bill and letters of credit issued between the affiliates within the scope of consolidation,
and are discounted and listed as a short-term loan at the level of the consolidated statement.
160
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(2) Unpaid short-term loans that have been overdue
No unpaid short-term loans that have been overdue at the end of this period
26. Trading financial liabilities
Unit: RMB
Item Closing Balance Opening Balance
Transactional financial liabilities 1,196,685.79 61,400.12
Including:
Derivative Financial Liabilities 61,400.12
Contingent consideration 1,196,685.79
Total 1,196,685.79 61,400.12
27. Notes payable
Unit: RMB
Types Closing Balance Opening Balance
Commercial acceptance bill 1,962,176,059.54 2,050,859,385.48
Bank acceptance bill 1,103,287,269.37 1,245,435,560.78
Total 3,065,463,328.91 3,296,294,946.26
28. Accounts payable
(1) Details of accounts payable
Unit: RMB
Item Closing Balance Opening Balance
Payment for purchase of materials 5,253,401,908.88 5,295,784,509.14
Payment for engineering equipments 418,449,841.13 519,338,686.41
Total 5,671,851,750.01 5,815,123,195.55
(2) Significant accounts payable aged over 1 year or overdue
No significant accounts payable aged over 1 year
29. Other payables
Unit: RMB
Item Closing Balance Opening Balance
Dividends Payable 38,078,985.18 23,667,047.02
Other Payables 716,602,240.38 788,757,099.50
Total 754,681,225.56 812,424,146.52
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(1) Dividends payable
Unit: RMB
Item Closing Balance Opening Balance
Equity Incentive Restricted Stock
38,078,985.18 23,667,047.02
Dividend
Total 38,078,985.18 23,667,047.02
(2) Other payables
1) Other payables listed by nature of funds
Unit: RMB
Item Closing Balance Opening Balance
Deposits 130,873,847.95 119,727,924.44
Temporarily borrowed and advance
273,017,723.42 325,491,021.42
payments
Restricted share repurchase obligations 294,909,725.21 326,740,652.18
Others 17,800,943.80 16,797,501.46
Total 716,602,240.38 788,757,099.50
2) Other significant payables aged over 1 year or overdue
No other significant payables aged over 1 year
30. Contract liabilities
Unit: RMB
Item Closing Balance Opening Balance
Payments for sales of goods 221,406,172.51 248,523,384.39
Pre-payments from construction projects 435,360,583.43 606,995,011.21
Sales of points 32,238,940.04 40,987,601.52
Service expense collected in advance 330,799,124.78 298,028,309.92
Total 1,019,804,820.76 1,194,534,307.04
31. Payroll payable
(1) Details of payroll payable
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period current period
Ⅰ. Short-term
1,927,465,906.51 3,064,233,026.69 4,068,302,261.22 923,396,671.98
remuneration
II. Dimission benefits -
defined contribution 4,356,958.15 229,052,411.42 228,095,368.32 5,314,001.25
plan
III. Dismissal welfare 2,132,766.46 21,785,138.52 23,917,904.98
Total 1,933,955,631.12 3,315,070,576.63 4,320,315,534.52 928,710,673.23
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(2) Details of short-term remuneration
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period current period
1. Wages or salaries,
bonuses, allowances 1,630,694,501.69 2,622,921,940.55 3,653,196,378.95 600,420,063.29
and subsidies
2. Staff welfare 54,013,303.33 54,013,303.33
3. Social insurance
1,774,953.96 129,031,302.23 129,039,761.89 1,766,494.30
contributions
Including:
1,551,779.16 122,654,625.86 122,546,765.38 1,659,639.64
Medical insurance
Work
injury insurance 222,341.68 5,814,061.83 5,933,015.86 103,387.65
premium
Maternity
833.12 562,614.54 559,980.65 3,467.01
insurance premium
4. Housing funds 121,261.43 211,142,866.92 211,203,012.96 61,115.39
5. Labor union and
294,875,189.43 47,123,613.66 20,849,804.09 321,148,999.00
education funds
Total 1,927,465,906.51 3,064,233,026.69 4,068,302,261.22 923,396,671.98
(3) Details of defined contribution plans
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period current period
1. Basic pension
3,951,325.98 218,847,799.91 217,974,822.56 4,824,303.33
insurance
2. Unemployment
405,632.17 10,204,611.51 10,120,545.76 489,697.92
insurance
Total 4,356,958.15 229,052,411.42 228,095,368.32 5,314,001.25
32. Taxes and fees payable
Unit: RMB
Item Closing Balance Opening Balance
VAT 178,326,380.90 363,245,736.32
Corporate income tax 113,135,335.69 762,303,704.91
Individual income tax 25,625,058.64 34,441,288.75
Urban Maintenance and Construction
8,474,013.76 21,936,677.77
Tax
Education surcharges (including local
6,060,895.93 15,669,021.79
education surcharges)
House property tax 17,828,601.33 30,701,891.59
Stamp Duty 5,519,357.69 10,066,368.59
Others 12,597,059.04 5,117,671.36
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Total 367,566,702.98 1,243,482,361.08
33. Non-current liabilities due within one year
Unit: RMB
Item Closing Balance Opening Balance
Long-term debt due within one year 100,000,000.00 750,000,000.00
Lease liabilities due within 1 year 138,291,093.19 116,027,750.99
Interest payable due within 1 year 60,000.00 694,277.76
Other loans due within 1 year 35,000,000.00
Total 238,351,093.19 901,722,028.75
34. Other current liabilities
Unit: RMB
Item Closing Balance Opening Balance
To-be-transferred sales taxes in
29,785,156.20 34,104,924.61
installments
To-be-transferred sales taxes of contract
60,389,129.76 81,757,348.46
liabilities
Notes not derecognised 25,409,130.30 39,320,431.95
Total 115,583,416.26 155,182,705.02
35. Lease liabilities
Unit: RMB
Item Closing Balance Opening Balance
Lease payments 292,787,721.32 313,410,607.81
Less: Unrecognized financing costs 16,825,304.58 20,802,807.25
Less: Lease liabilities due within 1 year 138,291,093.19 116,027,750.99
Total 137,671,323.55 176,580,049.57
36. Estimated Liabilities
Unit: RMB
Item Closing Balance Opening Balance Causes
Pending litigation 27,186,725.10 27,829,629.48 Pending litigation
Others 892,079.16 469,642.57 Loss-making contract
Expected after-sales
183,392,834.23 178,727,096.75 After-sales maintenance
maintenance cost
Expected return amount after
15,486,016.17 17,516,258.10 Expected sales return
the period
Total 226,957,654.66 224,542,626.90
37. Deferred income
Unit: RMB
Item Opening Balance Increased in the Decreased in the Closing Balance Causes
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current period current period
Received
Government government
151,844,373.02 9,190,000.00 5,739,184.92 155,295,188.10
subsidies subsidies related to
assets
Received
Government government
14,867,300.02 4,955,766.66 9,911,533.36
subsidies subsidies related to
income
Total 166,711,673.04 9,190,000.00 10,694,951.58 165,206,721.46
38. Other non-current liabilities
Unit: RMB
Item Closing Balance Opening Balance
To-be-transferred sales taxes in
102,226,881.81 119,054,046.66
installments
Others 13,372,397.59
Total 115,599,279.40 119,054,046.66
39. Share capital
Unit: RMB
Increased or decreased amount in this period (+/-)
Opening Shares Closing
Balance Shares newly converted Balance
Bonus shares Others Subtotal
issued from capital
reserves
3,294,468,99 - - 3,292,334,31
Total shares
0.00 2,134,680.00 2,134,680.00 0.00
Other notes:
According to the decision of the 5th Session of the 8th Board of Directors of the Company held on April 15, 2024 and the amended
Articles of Association and the solution of the 2023 Annual Shareholders' General Meeting of the Company, the Company repurchased
and canceled 2,134,680 Restricted RMB Ordinary Shares (A Shares) that had been granted but not been released to 204 incentive
objects, reduced the registered capital by RMB 2,134,680.00, and the registered capital after the change was reduced to RMB
3,292,334,310.00. The above capital reduction has been verified by Verification Report Xin Kuai Shi Bao Zi [2024] No. ZF11011
issued by BDO China Shu Lun Pan CPAs (special general partnership). The registration filed with Administration for Industry a nd
Commerce was completed in August 2024 by the Company.
40. Capital reserve
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period current period
Capital premium
(capital share 6,702,611,107.02 1,833,839.60 16,785,624.93 6,687,659,321.69
premium)
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Other capital reserves 421,514,889.47 135,709,827.88 30,831,233.98 526,393,483.37
Total 7,124,125,996.49 137,543,667.48 47,616,858.91 7,214,052,805.06
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
135,251,897.69, increasing capital reserves (other capital reserves) by RMB 133,418,058.09, and (share premium) by RMB
1,833,839.60; the portion of equity-settled share-based payments entitled to minority shareholders was RMB 23,724,480.56, decreasing
capital reserves (other capital reserves) by RMB 23,724,480.56. The income tax impact amount -RMB 7,106,753.42 for the deductible
amount before income tax which exceeds the costs and expenses related to share payments recognized under accounting standards is
recognized to decrease other capital reserves.
(2) In this period, the Company repurchased 2,134,680 restricted shares that had been granted but had not been unlocked by cancellation
of the share incentive subject, reducing the share capital by RMB 2,134,680.00, and reducing the capital reserves (share premium) by
RMB 15,284,308.80.
(3) The impact of changes in other owners' equity of the joint venture that the Company should enjoy under the current equity method
increased other capital reserves by RMB 1,704,423.02.
(4) The total capital reserve (share premium) decreased by RMB 1,501,316.13 in this period, due to the purchase and disposal of
minority shareholders' equity in subsidiaries.
(5) Some employees of the Company indirectly acquired part of the equity of Zhejiang Huanuokang Technology Co., Ltd. controlled
by the actual controller, involving the share-based payment, and the related share-based payments were included in the capital reserve
(other capital reserve) of RMB 587,346.77 as capital investment.
41. Treasury share
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period current period
Restricted shares 326,740,652.18 31,830,926.97 294,909,725.21
Share buyback 419,959,211.27 419,959,211.27
Total 746,699,863.45 31,830,926.97 714,868,936.48
Other notes, including increases or decreases in this period and their reasons:
(1) In this period, the Company repurchased 2,134,680 shares of the granted but unlocked restricted shares, reducing the share capital
by RMB 2,134,680.00, reducing the capital reserves (share premium) by RMB 15,284,308.80, and reducing the corresponding treasury
stock amount by RMB 17,418,988.80 at the same time.
(2) Due to the reduction in treasury shares and related liabilities as a result of cash dividends distributed to restricted stock holders and
the recovery of cash dividends distributed to departing personnel, the treasury shares decreased by an aggregate amount of RMB
14,411,938.17.
42. Other Comprehensive Incomes
Unit: RMB
Amount Occurred in the Current Period
Opening Less: Less: Attributabl Closing
Item Before tax Less: Attributabl
Balance Recorded Recorded e to the Balance
balance in Income tax e to the
into other into other minority
this period expense Company
comprehen comprehen shareholder
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sive sive after tax s after tax
incomes in incomes in
previous previous
period and period and
transferred transferred
to P/L in to retained
current earnings in
period current
period
I. Other
comprehen
sive
65,993,020. 7,219,753.9 7,222,390.9 73,215,411.
income that -2,636.94
83 7 1 74
will be
reclassified
into P/L
Curre
ncy 65,993,020. 7,219,753.9 7,222,390.9 73,215,411.
-2,636.94
conversion 83 7 1 74
difference
Other
comprehen
65,993,020. 7,219,753.9 7,222,390.9 73,215,411.
sive -2,636.94
83 7 1 74
income in
total
43. Surplus reserves
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period current period
Statutory surplus
1,647,234,495.00 1,647,234,495.00
reserve
Total 1,647,234,495.00 1,647,234,495.00
44. Undistributed profits
Unit: RMB
Item Current Period Previous Period
Undistributed Profit before Adjustment
23,334,051,186.55 17,872,654,791.67
at the End of Previous Period
Undistributed Profit after Adjustment at
23,334,051,186.55 17,872,654,791.67
the Start of the Period
Add: Net profit attributable to parent
1,809,589,445.46 1,976,018,373.13
company's owner in current period
Less: Payable Dividends on Ordinary
1,250,916,066.59 801,629,761.37
Shares
Add: Common stock dividends
corresponding to repurchase and 1,991,951.67 7,662,734.78
cancellation of restricted stocks
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Undistributed Profit at the End of the
23,894,716,517.09 19,054,706,138.21
Period
45. Operating revenue and operating cost
(1) Operating revenue and operating cost
Unit: RMB
Amount Occurred in the Current Period Amount Occurred in the Previous Period
Item
Income Cost Income Cost
Main Business 14,675,102,571.72 8,600,361,651.89 14,469,809,650.17 8,240,387,614.63
Other businesses 191,519,998.09 131,063,986.64 163,737,630.47 123,600,285.01
Total 14,866,622,569.81 8,731,425,638.53 14,633,547,280.64 8,363,987,899.64
(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 12,028,870,893.80 6,806,823,631.23
Including: Software business 758,033,553.36 252,248,321.27
Innovated Businesses 2,461,115,617.88 1,600,810,667.52
Others 376,636,058.13 323,791,339.78
Total 14,866,622,569.81 8,731,425,638.53
(3) Information related to operating revenue and operating cost (by region)
Unit: RMB
Amount Occurred in the Current Period
Item
Income Cost
Domestic 7,381,482,622.15 4,712,943,582.38
Overseas 7,485,139,947.66 4,018,482,056.15
Total 14,866,622,569.81 8,731,425,638.53
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 ca n be
reasonably recognized.
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46. Taxes and surcharges
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Urban Maintenance and Construction
34,216,090.98 43,889,100.07
Tax
Education surcharges 24,448,111.04 31,363,812.17
House property tax 24,162,703.22 29,761,364.19
Land usage tax 3,996,864.82 917,177.94
Vehicle and vessel use tax 15,824.33 15,510.00
Stamp Duty 10,090,486.54 9,103,927.09
Others 3,198,951.94 1,132,923.07
Total 100,129,032.87 116,183,814.53
47. Administrative expenses
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Labor cost 310,623,600.96 340,564,439.76
Depreciation cost and asset amortization 75,634,078.38 94,767,007.12
Administrative expenses 41,738,913.30 46,095,106.28
Consumables and service fees 14,240,718.82 12,081,798.50
Knowledge resource fee 35,685,104.17 49,587,678.01
Transportation and vehicle expenses 1,794,847.11 1,232,107.90
Traveling expense 7,459,433.57 4,803,169.65
Business entertainment 8,780,555.32 4,945,263.49
Others 15,524,270.68 20,643,333.56
Total 511,481,522.31 574,719,904.27
48. Sales expenses
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Labor cost 1,411,604,077.93 1,377,761,831.04
After-sales service expense 159,829,118.41 156,571,610.31
Transportation and vehicle expenses 24,464,085.01 21,706,516.27
Marketing expense 182,436,171.43 165,481,310.04
Administrative expenses 79,562,552.00 71,422,657.28
Traveling expense 125,947,708.26 114,091,416.69
Business entertainment 113,613,780.43 93,645,690.49
Taxation and insurance expense 27,288,783.48 56,829,765.54
Communication expense 11,837,005.99 13,263,245.01
Knowledge resource fee 23,119,819.74 21,686,620.89
Depreciation cost and asset amortization 89,988,383.91 80,806,563.30
Others 18,545,009.52 17,352,016.78
Total 2,268,236,496.11 2,190,619,243.64
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49. R&D expenses
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Labor cost 1,678,439,697.04 1,643,019,116.19
Research consumables and service fees 80,309,482.62 62,150,572.85
Depreciation cost and asset amortization 72,770,371.24 51,399,973.80
Traveling expense 24,015,489.48 25,060,775.54
Administrative expenses 18,949,458.84 14,542,301.96
Communication expense 16,874,102.17 12,116,451.51
Others 9,971,559.51 6,331,523.21
Total 1,901,330,160.90 1,814,620,715.06
50. Financial expenses
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Interest expense 28,989,823.89 58,636,214.41
Including: interest expenses on lease
6,617,980.91 7,433,492.47
liabilities
Less: Interest Income 236,240,691.12 139,792,759.54
The profit or loss on foreign exchange -53,117,693.40 -349,111,677.73
Others 10,556,921.90 9,815,525.33
Total -249,811,638.73 -420,452,697.53
51. Other incomes
Unit: RMB
Sources of other incomes Amount Occurred in the Current Period Amount Occurred in the Previous Period
Government subsidies 498,234,879.66 352,576,310.78
Input tax credits 5,067,660.66 74,172.66
Handling fee for withholding tax of
6,894,163.10 9,911,711.55
personal income
Others 16,150.00 8,459.42
Total 510,212,853.42 362,570,654.41
52. Income from changes in fair value
Unit: RMB
Source of the income from changes in
Amount Occurred in the Current Period Amount Occurred in the Previous Period
fair value
Trading Financial Assets -61,522,549.01
Including: gains from changes at
fair value of derivative financial 384,471.06
instruments
Transactional financial liabilities 1,845,682.12 2,138,038.50
Other Non-current Financial Assets -100,305,121.85 133,060,297.91
Total -159,981,988.74 135,198,336.41
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53. Investment income
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Long-term equity investment income
16,910,626.79 -154,531,486.76
measured by equity method
Investment income from disposal of
104,164,254.70 173,111,849.54
long-term equity investment
Investment income from trading
1,243,275.00
financial assets during the holding period
Investment income from disposal of
18,218,788.90 -34,387,624.19
trading financial assets
Gain on debt restructuring -70,000.00
Investment income on other non-current
financial assets 26,592.41 2,372,827.09
during the holding period
Investment income from national debt
308,062.29 569,386.14
reverse repurchase
Profits from recognition termination of
-685,702.55 -1,279,161.94
financial assets
Total 140,115,897.54 -14,144,210.12
54. Credit impairment loss
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Bad debt losses of notes receivable 7,372,316.14 12,586,037.47
Bad debt losses of accounts receivable -217,728,284.41 -199,209,805.47
Bad debt losses of other receivables -5,651,673.92 -1,966,013.56
Bad debt losses of long-term receivables 1,782,633.40
Total -214,225,008.79 -188,589,781.56
55. Asset impairment losses
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
I. Loss from impairment of inventories
-56,827,215.84 -53,883,719.66
and impairment of performance cost
II. Impairment losses on contract assets 1,980,179.61 2,070,188.91
Total -54,847,036.23 -51,813,530.75
56. Asset disposal income
Unit: RMB
Sources of the asset disposal income Amount Occurred in the Current Period Amount Occurred in the Previous Period
Income from disposal of fixed assets 647,996.83 1,395,021.50
Income from the disposal of right-of-use
438,548.26 367,032.72
assets
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Total 1,086,545.09 1,762,054.22
57. Non-operating revenue
Unit: RMB
Amount recorded into non-
Amount Occurred in the Amount Occurred in the
Item recurring profit and loss in
Current Period Previous Period
current period
Gains and losses of non-
1,393,292.31 1,025,738.07 1,393,292.31
current asset retirement
Others 5,010,673.16 6,265,024.42 5,010,673.16
Total 6,403,965.47 7,290,762.49 6,403,965.47
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 478,287.26 496,915.96 478,287.26
Gains and losses of non-
1,754,193.37 1,213,612.70 1,754,193.37
current asset retirement
Water conservancy fund 286,144.98 172,476.39
Others 539,289.89 2,254,707.67 539,289.89
Total 3,057,915.50 4,137,712.72 2,771,770.52
59. Income tax expense
(1) Income tax expense statement
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Current income tax expense -121,751,030.82 183,337,096.59
Deferred income tax expense 87,912,569.72 18,408,214.95
Total -33,838,461.10 201,745,311.54
(2) Adjustment process of accounting profit and income tax expenses
Unit: RMB
Item Amount Occurred in the Current Period
Total Profit 1,829,538,670.08
Income tax expense calculated at statutory/applicable tax rate 274,430,800.51
Impact by applying different tax rates to subsidiaries 7,528,496.25
Impact of income tax before adjustment in this period -231,125,295.30
Impact of the non-deductible costs, expenses and losses 14,840,446.81
Impact of additional deduction of the research and development
-253,219,918.82
expenses
Others 153,707,009.45
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Income tax expense -33,838,461.10
60. Other Comprehensive Incomes
See Note 42 for details
61. Items of Cash Flow Statement
(1) Cash relating to operating activities
Other cash receipts relating to operating activities
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Interest Income 199,590,797.33 98,282,325.78
Government subsidies 496,784,769.49 435,552,183.85
Tender and performance guarantee
17,649,724.47 67,899,798.11
deposit
House rent 43,724,182.75 11,560,349.57
Others 10,316,091.98 6,930,674.78
Total 768,065,566.02 620,225,332.09
Other cash payments relating to operating activities
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Administrative expenses 178,852,211.19 149,122,402.24
Communication expense 39,942,196.27 38,779,887.00
Business entertainment 118,487,887.89 102,420,881.92
Traveling expense 164,300,108.89 149,346,782.15
Marketing expense 209,186,545.09 160,316,584.19
Transportation and vehicle expenses 32,067,105.82 31,419,022.85
Knowledge resource fee 77,707,893.01 76,423,481.68
Research and development consumption
40,064,926.81 42,767,935.93
and external inspection fee
Taxation and insurance expense 26,894,680.80 30,195,538.61
Tender and performance guarantee
22,640,806.33 65,636,480.98
deposit
Incomings and outgoings and advanced
34,343,604.95 20,590,104.91
payments
Consumables and service fees 142,226,682.97 113,724,030.41
Others 24,572,155.78 12,289,260.58
Total 1,111,286,805.80 993,032,393.45
(2) Cash relating to investing activities
Other cash receipts relating to investing activities
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Receipts of cash from forward exchange
10,722,864.17 2,049,875.81
contracts
Recovered frozen funds relating to the
5,307,995.26 4,706,596.97
investment
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Net cash paid for acquisition of
7,763,130.61
subsidiaries
Total 23,793,990.04 6,756,472.78
Significant cash receipts relating to investing activities
None
Other cash payments related to investing activities
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Cash paid for forward exchange
429,000.00 36,437,500.00
contracts
Paid frozen funds relating to the
4,969,155.52 520,497.39
investment
Total 5,398,155.52 36,957,997.39
Significant cash payments related to investing activities
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Purchase of large-denomination
3,813,937,125.38
certificates of deposit
Total 3,813,937,125.38
(3) Cash relating to financing activities
Other cash receipts related to financing activities
None
Other cash payments related to financing activities
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Leasing fees paid 75,803,609.32 91,338,342.56
Listing fees 400,000.00 3,312,739.06
Cash paid for purchasing minority equity 39,396,901.68 1,300,000.00
Equity repurchase cash paid 17,418,988.80 259,451,932.80
Total 133,019,499.80 355,403,014.42
Changes in liabilities arising from financing activities
Applicable □ Not applicable
Unit: RMB
Increased in the current period Decreased in the current period
Opening Closing
Item Changes in Non-cash Changes in Non-cash
Balance Balance
cash changes cash changes
1,076,229,492.
Short-term loan 957,426,330.18 919,437,200.00 343,668.00 4,500.00 800,973,205.56
62
Dividends 1,248,924,114. 1,234,512,176.
23,667,047.02 38,078,985.18
Payable 92 76
Lease liabilities 176,580,049.57 55,377,410.90 94,286,136.92 137,671,323.55
Non-current
Liabilities Due 901,722,028.75 94,286,136.92 757,657,072.48 238,351,093.19
within 1 Year
Other payables 326,740,652.18 31,830,926.97 294,909,725.21
174
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(restricted share
repurchase
obligations)
2,386,136,107. 1,398,931,330. 3,068,398,741. 1,509,984,332.
Total 919,437,200.00 126,121,563.89
70 74 86 69
62. Supplementary Information on Cash Flow Statement
(1) Supplementary information about the Cash Flow Statement
Unit: RMB
Supplementary information Amount of this period Amount of Previous Period
1． Reconciliation of net profit to cash
flows from operational activities:
Net Profit 1,863,377,131.18 2,040,259,661.87
Add: Provision for Impairment of
269,072,045.02 240,403,312.31
Assets
Depreciation of fixed assets, oil
and gas assets, productive biological 302,933,957.40 277,966,321.24
assets
Depreciation of Right-of-use
74,358,048.95 69,601,736.93
Assets
Amortization of Intangible Assets 22,159,273.95 20,234,065.13
Amortization of long-term
33,099,276.14 28,404,122.13
deferred expenses
Losses on disposal of fixed
assets, intangible assets and other long- -1,086,545.09 -1,762,054.22
term assets (mark "-" for incomes)
Losses on scrapping of fixed
360,901.06 187,874.63
assets (mark "-" for incomes)
Losses on fair value changes
159,981,988.74 -135,198,336.41
(mark "-" for incomes)
Financial expenses (mark "-" for
-24,127,869.51 -290,475,463.32
incomes)
Losses on investment (mark "-"
-140,871,600.09 12,865,048.18
for incomes)
Decrease on deferred income tax
96,812,204.14 14,362,925.71
assets (mark "-" for increases)
Increase on deferred income tax
-70,924.28 1,049,232.51
liabilities (mark "-" for decreases)
Decrease on inventories (mark "-"
-400,532,393.69 1,021,820,363.34
for increases)
Decrease on operational
-281,980,571.10 -231,086,828.89
receivables (mark "-" for increases)
Increase on operational payables
-2,616,509,787.99 -2,974,085,366.83
(mark "-" for decreases)
Others 135,839,244.46 168,150,131.40
Net cash flow generated by
-507,185,620.71 262,696,745.71
operating activities
175
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
2． Major investing and financing
activities that do not involve 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:
Closing balance of cash 9,494,019,608.51 11,798,049,495.81
Less: opening balance of cash 15,880,659,594.95 7,878,465,052.63
Add: closing balance of cash
equivalents
Less: opening balance of cash
equivalents
Net Increase in Cash and Cash
-6,386,639,986.44 3,919,584,443.18
Equivalents
(2) Net cash paid for disposal of subsidiaries in the current period
Unit: RMB
Amount
Cash or cash equivalents paid for disposal of subsidiaries in the
85,260,000.00
current period
Including:
Dahua Technology USA Inc. 85,260,000.00
Less: Cash and cash equivalents held by subsidiaries on the day
12,081,703.52
of loss of control
Including:
Dahua Technology USA Inc. 12,081,703.52
Net cash paid for disposal of subsidiaries 73,178,296.48
(3) Composition of cash and cash equivalents
Unit: RMB
Item Closing Balance Opening Balance
Ⅰ. Cash 9,494,019,608.51 15,880,659,594.95
Including: Cash on Hand 2,607.89 2,642.58
Bank deposit for payment at any
9,420,985,769.15 15,806,616,028.36
time
Other cash and bank balances for
73,031,231.47 74,040,924.01
payment at any time
II. Balance of Cash and Cash Equivalents
9,494,019,608.51 15,880,659,594.95
at the End of the Period
176
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(4) Monetary funds that are not cash and cash equivalents
Unit: RMB
Reasons for not being cash
Item Amount of this period Amount of Previous Period
and cash equivalents
Bid/performance bond 76,756,725.23 68,981,082.99 Restricted rights to use
Frozen funds 13,262,530.45 6,862,600.24 Restricted rights to use
Bank interest receivable 13,584,252.34 14,501,836.29 Accrued interest
Total 103,603,508.02 90,345,519.52
63. Monetary Items in Foreign Currencies
(1) Monetary items in foreign currencies
Unit: RMB
Closing balance in foreign Closing Balance Converted
Item Exchange rate for conversion
currencies into RMB
Cash and Bank Balances
Including: USD 219,736,642.96 7.1268 1,566,019,107.05
EUR 37,563,886.09 7.6617 287,803,226.06
HKD 838,969,431.64 0.9127 765,713,610.52
INR 1,101,846,662.52 0.0854 94,074,019.96
AED 26,895,070.86 1.9462 52,344,262.71
VND 171,697,012,665.00 0.0003 48,066,395.70
Total amount of other
236,041,581.20
currencies
Accounts receivable
Including: USD 495,957,007.33 7.1268 3,534,586,399.84
EUR 104,532,788.36 7.6617 800,898,864.58
HKD 1,159,770.19 0.9127 1,058,503.19
INR 5,647,698,141.84 0.0854 482,192,019.83
AED 94,097,649.91 1.9462 183,136,610.16
AUD 26,593,625.28 4.7650 126,718,624.46
Total amount of other
631,827,640.71
currencies
Long-term loan
Including: USD
EUR
HKD
Accounts Payable
Including: USD 87,042,674.89 7.1268 620,335,735.43
INR 1,993,414,018.84 0.0854 170,194,707.29
COP 11,998,298,951.47 0.0017 20,445,807.27
HUF 223,783,979.50 0.0192 4,305,193.91
EUR 489,810.36 7.6617 3,752,780.00
BRL 2,832,804.82 1.2955 3,669,757.00
Total amount of other
6,536,235.46
currencies
177
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(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
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. Lease
(1) The Company as a lessee
Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable Not applicable
Simplified rental expenses for short-term leases or low-value asset leases
Applicable □ Not applicable
Unit: RMB
Item Amount of this period Amount of Previous Period
Interest expenses on lease liabilities 6,617,980.91 7,433,492.47
Simplified rental expenses for short-term leases included in
35,631,536.76 28,573,437.84
the cost of related assets or current profit or loss
Total cash outflows relating to leases 110,875,543.12 119,911,780.40
Sale and leaseback transaction
None
(2) The Company as the lessor
As the lessor in operating leases
Applicable □ Not applicable
Unit: RMB
Including: Income from the variable
Item Rental income lease payments that are not included in
the lease receipts
House leasing 38,367,515.68
Equipment leasing 35,946,400.30
Total 74,313,915.98
As the lessor in financial leases
□ Applicable Not applicable
Undiscounted lease receipts for each of the next five years
□ Applicable Not applicable
178
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(3) Recognition of profits and losses on sales under finance leases as a manufacturer or distributor
□ Applicable Not applicable
VIII. R&D expenditures
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Labor cost 1,678,439,697.04 1,643,019,116.19
Research consumables and service fees 80,309,482.62 62,150,572.85
Depreciation cost and asset amortization 72,770,371.24 51,399,973.80
Traveling expense 24,015,489.48 25,060,775.54
Administrative expenses 18,949,458.84 14,542,301.96
Communication expense 16,874,102.17 12,116,451.51
Others 9,971,559.51 6,331,523.21
Total 1,901,330,160.90 1,814,620,715.06
Including: Expensive R&D expenditures 1,901,330,160.90 1,814,620,715.06
IX. Changes in the Scope of Consolidation
1. No business consolidation not under common control in the current period
2. No business consolidation under common control during this period
3. Disposal of subsidiaries
Are there any transactions or events that lose control of subsidiaries in the current period?
Yes □No
Unit: RMB
The Deter The
differe minati amoun
nce The The on t of
betwee book fair metho other
n the value value d and compr
dispos of the of main ehensi
Gain
al remain remain assum ve
Basis Propor or loss
Propor Dispos price ing ing ptions incom
Dispos for tion of from
tion of al and the equity equity of the e
al determ remain re-
dispos metho Time share at the at the fair related
Name price ining ing measur
als at d at point of the consoli consoli value to
of at time the equity ement
time time of loss net dated dated of equity
Subsid point time on the of
point point of assets financi financi remain invest
iaries of loss point day of residua
of loss of loss control of the al al ing ments
of of loss loss of l
of of subsidi statem statem equity in
control of control equity
control control ary ent ent at the subsidi
control . at fair
enjoye level level consoli ary
value
d at on the on the dated compa
the day of day of financi nies
consoli loss of loss of al and
dated control control statem transfe
financi ent rred to
al level invest
179
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
statem on the ment
ent day of profit
level loss of or loss
corres control or
pondin retaine
g to d
the earnin
dispos gs
al of
invest
ment
Signin
g of
equity
transfe
r
agree
Dahua
ment
Techn 85,260 Equity Januar 104,16
100.00 and
ology ,000.0 transfe y 12, 4,254.
% compl
USA 0 r 2024 70
etion
Inc.
of
propert
y
rights
deliver
y
Is the investment in subsidiaries disposed of step by step through multiple transactions or losing the right of control in the current
period?
□ Yes No
4. Changes in the Scope of Consolidation for Other Reasons
Explanations on the changes in the scope of consolidation caused by other reasons (for example, newly established subsidiaries,
subsidiaries clearing, etc.) and relevant information:
(1) In the current period, the Company founded 11 overseas subsidiaries, including Qingdao Dahua Ruifa Intelligent Internet of Things
Technology Co., Ltd., Shandong Dahua Digital Intelligence Technology Co., Ltd., Fujian Dahua Qingchuang Digital Technology Co.,
Ltd., PT IMOU TEKNOLOGI INDONESIA, PT IMOU INDONESIA SENANTIASA, Hirige Technology Ma Laysia Sdn.Bhd., Dahua
Technology Egypt LLC, DAHUA TECHNOLOGY AUH FOR SECURITY, SURVEILLANCE - SOLE PROPRIETORSHIP L.L.C.,
DaHua Ideal Tech and accounting firms it controls, and the above subsidiaries were included in the scope of consolidation in the current
period.
(2) The Company's subsidiaries, Yunnan Zhili Technology Co., Ltd. and Wuhu Huajian Technology Co., Ltd. were written off in the
current period and they will be no longer included in the scope of consolidation as of the date of write-off.
180
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
X. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of the enterprise group
Shareholding Percentage Acquisiti
Name of Registered Main Place of Registered Business
on
Subsidiaries Capital Business Address Nature Direct Indirect Method
Dahua Binjiang Binjiang Electronics
RMB 500 Establish
System District, District, and 100.00%
million ment
Engineering Hangzhou Hangzhou information
Dahua RMB Binjiang Binjiang Electronics
Establish
Vision 1,306.81 District, District, and 100.00%
ment
Technology million Hangzhou Hangzhou information
Dahua Binjiang Binjiang Electronics
RMB 100 Establish
Security District, District, and 100.00%
million ment
Network Hangzhou Hangzhou information
Binjiang Binjiang Electronics
RMB 10 Establish
Dahua Ju'an District, District, and 51.00%
million ment
Hangzhou Hangzhou information
Guangxi Electronics
RMB 66.80 Youjiang Youjiang Establish
Dahua and 100.00%
million District, Baise District, Baise ment
Information information
Qingxiu Qingxiu
Guangxi RMB 20 Establish
District, District, Service 100.00%
Yunlian million ment
Nanning Nanning
Binjiang Binjiang Electronics
Hangzhou RMB 10 Establish
District, District, and 78.00%
Xiaohua million ment
Hangzhou Hangzhou information
RMB Fuyang Fuyang Electronics 94.1669%
Dahua Establish
1,885.80 District, District, and
Zhilian （1） ment
million Hangzhou Hangzhou information
Investment
Dahua Fuyang Fuyang
RMB 300 & Establish
investment District, District, 100.00%
million investment ment
management Hangzhou Hangzhou
management
RMB Electronics
Guangxi Youjiang Youjiang Establish
109.5429 and 65.00%
Zhicheng District, Baise District, Baise ment
million information
RMB Binjiang Binjiang Electronics 32.73%
Hangzhou Establish
77.905182 District, District, and
Huacheng （2） ment
million Hangzhou Hangzhou information
Electronics
Xinjiang RMB 60 Shihezi, Shihezi, Establish
and 92.00%
Information million Xinjiang Xinjiang ment
information
Sci-tech
popularizatio
RMB Binjiang Binjiang
HuaRay n and Establish
78.264756 District, District, 32.58%
Technology application ment
million Hangzhou Hangzhou
services
industry
Fuyang Fuyang Electronics
Fuyang RMB 10 Establish
District, District, and 51.00%
Hua'ao million ment
Hangzhou Hangzhou information
Binjiang Binjiang Electronics
Huafei RMB 50 Establish
District, District, and 100.00%
Intelligent million ment
Hangzhou Hangzhou information
Guanshanhu Guanshanhu Electronics
Guizhou RMB 22.5 Establish
District, District, and 100.00%
Huayi million ment
Guiyang Guiyang information
181
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
RMB Qira County, Qira County, Electronics
Xinjiang Establish
38.2846 Hotan, Hotan, and 97.00%
Zhihe ment
million Xinjiang Xinjiang information
Electronics
Guangxi RMB 35.80 Wuzhou, Wuzhou, Establish
and 90.00%
Huacheng million Guangxi Guangxi ment
information
Meitan Electronics
RMB 10 Zunyi, Zunyi, Establish
Dahua and 100.00%
million Guizhou Guizhou ment
Technology information
New District, New District,
Inner Bai County, Bai County, Electronics
RMB 20 Establish
Mongolia Chahar Right Chahar Right and 95.00%
million ment
Zhimeng Wing Back Wing Back information
Banner Banner
RMB Hetian County, Hetian County, Electronics
Xinjiang Establish
25.6526 Hetian, Hetian, and 97.00%
Zhitian ment
million Xinjiang Xinjiang information
Shache
Shache County,
RMB County, Electronics
Xinjiang Kashgar Establish
335.5672 Kashgar and 100.00%
Xinzhi District, ment
million District, information
Xinjiang
Xinjiang
RMB Electronics
Xinjiang Kashgar, Kashgar, Establish
37.8413 and 100.00%
Huayue Xinjiang Xinjiang ment
million information
Electronics
Tianjin RMB 36 Hexi District, Hexi District, Establish
and 100.00%
Dahua million Tianjin Tianjin ment
information
Shuangpai Shuangpai Electronics
Dahua RMB 39.48 Establish
County, County, and 90.00%
Zhilong million ment
Yongzhou City Yongzhou City information
Fuyang Fuyang
District, District, Electronics
Vision RMB 10 Establish
Hangzhou Hangzhou City, and 100.00%
Technology million ment
City, Zhejiang Zhejiang information
Province Province
Fuyang Fuyang
District, District, Electronics
Huaxiao RMB 70 Establish
Hangzhou Hangzhou City, and 51.00%
Technology million ment
City, Zhejiang Zhejiang information
Province Province
Xi'an City, Xi'an City, Electronics
RMB 989.60 Establish
Xi'an Dahua Shaanxi Shaanxi and 100.00%
million ment
Province Province information
Wuxi City, Wuxi City, Electronics
RMB 50 Establish
Huaruipin Jiangsu Jiangsu and 51.00%
million ment
Province Province information
Xicheng Xicheng Electronics
Beijing RMB 10 Establish
District, District, and 100.00%
Huayue million ment
Beijing Beijing information
Electronics
Shanghai RMB 1 Putuo District, Putuo District, Establish
and 100.00%
Huashang million Shanghai Shanghai ment
information
Wucheng Wucheng
Electronics
RMB 60 District, Jinhua District, Jinhua Establish
Dahua Jinzhi and 100.00%
million City, Zhejiang City, Zhejiang ment
information
Province Province
Zhoushan City, Zhoushan City, Electronics
Zhoushan RMB 100 Establish
Zhejiang Zhejiang and 58.80%
Operation million ment
Province Province information
Liuzhou City, Liuzhou City,
Guangxi Guangxi Guangxi Electronics
RMB 100 Establish
Dahua Zhuang Zhuang and 100.00%
million ment
Technology Autonomous Autonomous information
Region Region
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Binjiang Binjiang Electronics
RMB 80 Establish
Huayixin District, District, and 51.00%
million ment
Hangzhou Hangzhou information
Binjiang Binjiang
RMB 150 Automotive Establish
Huaruijie District, District, 51.00%
million electronics ment
Hangzhou Hangzhou
Longquanyi Longquanyi Electronics
Chengdu RMB 600 Establish
District, District, and 100.00%
Zhilian million ment
Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu RMB 554.70 Establish
District, District, and 100.00%
Zhian million ment
Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu RMB 50 Establish
District, District, and 100.00%
Zhishu million ment
Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu RMB 15 Establish
District, District, and 100.00%
Zhichuang million ment
Chengdu Chengdu information
Chengdu Electronics
RMB 50 Dayi County, Dayi County, Establish
Smart and 90.00%
million Chengdu Chengdu ment
Network information
Electronics
Huakong RMB 50 Wuyi County, Wuyi County, Establish
and 100.00%
Software million Jinhua City Jinhua City ment
information
Binjiang Binjiang Electronics
Huacheng RMB 30 Establish
District, District, and 100.00%
Software million ment
Hangzhou Hangzhou information
Electronics
Henan RMB 30 Zhengzhou, Zhengzhou, Establish
and 100.00%
Dahua million Henan Henan ment
information
Binjiang Binjiang Electronics
RMB 50 Establish
Huajian District, District, and 45.00%(3)
million ment
Hangzhou Hangzhou information
Electronics
Zhengzhou RMB 30 Zhengzhou, Zhengzhou, Establish
and 100.00%
Dahua Zhian million Henan Henan ment
information
Electronics
Dahua RMB 1 Establish
Singapore Singapore and 100.00%
International million ment
information
Electronics
Anhui RMB 30 Establish
Hefei, Anhui Hefei, Anhui and 100.00%
Zhilian million ment
information
Electronics
Anhui RMB 30 Establish
Hefei, Anhui Hefei, Anhui and 100.00%
Zhishu million ment
information
Electronics
Changsha RMB 100 Changsha, Changsha, Establish
and 100.00%
Dahua million Hunan Hunan ment
information
Electronics
Tianjin RMB 30 Hexi District, Hexi District, Establish
and 100.00%
Huajian million Tianjin Tianjin ment
information
RMB Xiaoshan Xiaoshan Electronics
Zhejiang Establish
442.140448 District, District, and 75.11%
Pixfra ment
million Hangzhou Hangzhou information
Yiwu City, Yiwu City, Electronics
RMB 10 Establish
Yiwu Huaxi Zhejiang Zhejiang and 100.00%
million ment
Province Province information
Xiaoshan Xiaoshan Electronics
Dahua RMB 100 Establish
District, District, and 100.00%
Operation million ment
Hangzhou Hangzhou information
Nanyang City, Nanyang City, Electronics
Nanyang RMB 10 Establish
Henan Henan and 100.00%
Intelligent million ment
Province Province information
Yibin City, Yibin City, Electronics
Yibin RMB 20 Establish
Sichuan Sichuan and 100.00%
Huahui million ment
Province Province information
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Chengdu City, Chengdu City, Electronics
Chengdu RMB 10 Establish
Sichuan Sichuan and 100.00%
Huazhiwei million ment
Province Province information
Xi'an City, Xi'an City, Electronics
RMB 20 Establish
IMOU Xi'an Shaanxi Shaanxi and 100.00%
million ment
Province Province information
Luoyang City, Luoyang City, Electronics
Luoyang RMB 10 Establish
Henan Henan and 100.00%
Zhiyu million ment
Province Province information
Binjiang Binjiang Electronics
Huaqi RMB 100 Establish
District, District, and 100.00%
Intelligence million ment
Hangzhou Hangzhou information
Chongzhou Chongzhou Electronics
Chengdu RMB 20 Establish
City, Chengdu City, Chengdu and 100.00%
Information million ment
City City information
Business
combinati
Binjiang Binjiang Electronics
HJ RMB 20 on not
District, District, and 100.00%
Technology million under
Hangzhou Hangzhou information
common
control
Xiaoshan Xiaoshan Electronics
Shuhang RMB 10 Establish
District, District, and 100.00%
Intelligent million ment
Hangzhou Hangzhou information
Haizhu Haizhu Electronics
RMB 10 Establish
Huaxiyue District, District, and 100.00%
million ment
Guangzhou Guangzhou information
Xiaoshan Xiaoshan
Huajie RMB 50 New energy Establish
District, District, 100.00%
Operation million operations ment
Hangzhou Hangzhou
Electronics
Qingdao RMB 7 Qingdao, Qingdao, Establish
and 100.00%
Ruifa million Shandong Shandong ment
information
Shandong Electronics
RMB 10 Jinan, Jinan, Establish
Digital and 100.00%
million Shandong Shandong ment
Intelligence information
Electronics
Fujian RMB 10 Qingliu Qingliu Establish
and 100.00%
Qingchuang million County, Fujian County, Fujian ment
information
RMB Electronics
Dahua Hong Establish
669.687347 Hong Kong Hong Kong and 100.00%
Kong ment
million information
Electronics
Dahua EUR Establish
Netherlands Netherlands and 100.00%
Europe 200,000 ment
information
Electronics
Dahua AED 1 United Arab United Arab Establish
and 100.00%
Middle East million Emirates Emirates ment
information
Electronics
Dahua MXN 90 Establish
Mexico Mexico and 100.00%
Mexico million ment
information
Electronics
CLP 360 Establish
Dahua Chile Chile Chile and 100.00%
million ment
information
COP Electronics
Dahua Establish
4616.709016 Columbia Columbia and 100.00%
Colombia ment
million information
Electronics
Dahua AUD Establish
Australia Australia and 100.00%
Australia 150,000 ment
information
Electronics
Dahua USD Establish
Singapore Singapore and 100.00%
Singapore 220,000 ment
information
Electronics
Dahua South ZAR 5 Establish
South Africa South Africa and 100.00%
Africa million ment
information
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Electronics
PEN 2.2 Establish
Dahua Peru Peru Peru and 100.00%
million ment
information
BRL Electronics
Establish
Dahua Brazil 41.334811 Brazil Brazil and 100.00%
ment
million information
Electronics
Dahua RUB 30 Establish
Russia Russia and 100.00%
Russia million ment
information
Electronics
Dahua CAD Establish
Canada Canada and 100.00%
Canada 250,000 ment
information
Electronics
Dahua Establish
USD 10,000 Panama Panama and 100.00%
Panama ment
information
Electronics
Dahua HUF 303 Establish
Hungary Hungary and 100.00%
Hungary million ment
information
Electronics
Dahua PLN 2.2 Establish
Poland Poland and 100.00%
Poland million ment
information
Electronics
Dahua Establish
USD 89,000 Tunisia Tunisia and 100.00%
Tunisia ment
information
Electronics
Dahua KES 15 Establish
Kenya Kenya and 100.00%
Kenya million ment
information
Electronics
Establish
Dahua UK GBP 100,000 UK UK and 100.00%
ment
information
Electronics
Dahua BGN Establish
Bulgaria Bulgaria and 100.00%
Bulgaria 350,000 ment
information
Electronics
Dahua RSD 23 Establish
Serbia Serbia and 100.00%
Serbia million ment
information
Electronics
Dahua EUR Establish
Germany Germany and 100.00%
Germany 150,000 ment
information
Electronics
Dahua MYR 1 Establish
Malaysia Malaysia and 100.00%
Malaysia million ment
information
Electronics
KRW 1,500 Establish
Dahua Korea South Korea South Korea and 100.00%
million ment
information
Electronics
Dahua IDR 2,600 Establish
Indonesia Indonesia and 100.00%
Indonesia million ment
information
Electronics
INR 234 Establish
Dahua India India India and 100.00%
million ment
information
Electronics
Dahua Establish
TRY 840,000 Turkey Turkey and 100.00%
Turkey ment
information
Electronics
CZK 5.4 Czech Czech Establish
Dahua Czech and 100.00%
million Republic Republic ment
information
ARS Electronics
Dahua Establish
27.288503 Argentina Argentina and 100.00%
Argentina ment
million information
Electronics
EUR Establish
Dahua Spain Spain Spain and 100.00%
150,000 ment
information
Dahua KZT 23 Electronics Establish
Kazakhstan Kazakhstan 100.00%
Kazakhstan million and ment
185
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
information
Electronics
Dahua DKK 1.5 Establish
Denmark Denmark and 100.00%
Denmark million ment
information
Electronics
Dahua EUR Establish
France France and 100.00%
France 100,000 ment
information
Dahua Electronics
HKD 10 Establish
Technology Hong Kong Hong Kong and 100.00%
million ment
Holdings information
Electronics
Dahua AED Establish
Morocco Morocco and 100.00%
Morocco 500,000 ment
information
Business
combinati
Electronics
on not
Dahua Italy EUR 12,000 Italy Italy and 100.00%
under
information
common
control
Electronics
Dahua Establish
UZS 3,200 Uzbekistan Uzbekistan and 100.00%
Uzbekistan ment
information
Electronics
Dahua Establish
EUR 10,000 Netherlands Netherlands and 100.00%
Netherlands ment
information
Electronics
Dahua Sri LKR 48 Establish
Sri Lanka Sri Lanka and 100.00%
Lanka million ment
information
Electronics
Dahua PKR 20 Establish
Pakistan Pakistan and 100.00%
Pakistan million ment
information
Electronics
Dahua New NZD Establish
New Zealand New Zealand and 100.00%
Zealand 300,000 ment
information
Electronics
Dahua THB 25 Establish
Thailand Thailand and 99.98%
Thailand million ment
information
Electronics
Dahua RON 1 Establish
Romania Romania and 100.00%
Romania million ment
information
Electronics
Dahua NGN 10 Establish
Nigeria Nigeria and 100.00%
Nigeria million ment
information
Electronics
USD Establish
Dahua Israel Israel Israel and 100.00%
300,000 ment
information
Dahua Electronics
Establish
Mexico MXN 50,000 Mexico Mexico and 100.00%
ment
Service information
Electronics
Huacheng EUR Establish
Netherlands Netherlands and 100.00%
Netherlands 900,000 ment
information
Electronics
JPY 6 Establish
Dahua Japan Japan Japan and 100.00%
million ment
information
Electronics
QAR 2.184 Establish
Dahua Qatar Qatar Qatar and 100.00%
million ment
information
Electronics
Huacheng HKD 12.023 Establish
Hong Kong Hong Kong and 100.00%
Hong Kong million ment
information
Electronics
Dahua Establish
USD 10,000 Panama Panama and 100.00%
Pacific ment
information
Dahua Saudi SAR 500,000 Saudi Arabia Saudi Arabia Electronics 100.00% Establish
186
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Arabia and ment
information
Electronics
Dahua BDT 5 Establish
Bangladesh Bangladesh and 100.00%
Bengal million ment
information
Electronics
IMOU AUD Establish
Australia Australia and 100.00%
Australia 147,606 ment
information
VND
18,569.6 Electronics
IMOU Establish
million Vietnam Vietnam and 100.00%
Vietnam ment
(USD information
800,000)
Electronics
HuaRay USD Establish
Singapore Singapore and 100.00%
Singapore 100,000 ment
information
Electronics
HuaRay KRW 100 Establish
South Korea South Korea and 100.00%
KOREA million ment
information
Electronics
HuaRay Establish
EUR 25,000 Germany Germany and 100.00%
GERMANY ment
information
Electronics
Dahua EUR Establish
Belgium Belgium and 100.00%
Belgium Co. 100,000 ment
information
Electronics
Dahua Saudi Establish
SAR 10,000 Saudi Arabia Saudi Arabia and 100.00%
Arabia Co. ment
information
Dahua Electronics
USD Establish
Argentina Azerbaijan Azerbaijan and 100.00%
100,000 ment
Co. information
Dahua Electronics
VND 2,363.6 Establish
Vietnam Co., Vietnam Vietnam and 100.00%
million ment
Ltd. information
AOA Electronics
Dahua Establish
176.303 Angola Angola and 100.00%
Angola ment
million information
IMOU
TEKNOLO Electronics
IDR 10 Establish
GI Indonesia Indonesia and 100.00%
billion ment
INDONESI information
A
IMOU
Electronics
INDONESIA IDR 10 Establish
Indonesia Indonesia and 100.00%
SENANTIA billion ment
information
SA
Electronics
Hirige Establish
MYR 2,000 Malaysia Malaysia and 100.00%
MaLaysia ment
information
Electronics
USD Establish
Dahua Egypt Egypt Egypt and 100.00%
100,000 ment
information
Electronics
DAHUA AED Establish
Abu Dhabi Abu Dhabi and 100.00%
Abu Dhabi 100,000 ment
information
Explanations on the fact that the proportion of the shares held by a subsidiary differs from that of voting rights:
(1) Based on the industrial and commercial registration data, the CDB Development Fund holds equity in Zhejiang Dahua Zhilian Co.,
Ltd. 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 additio n,
the Company shall redeem the CDB Development Fund's equity in Dahua Zhilian period by period from 2022 to 2024. The Company
effectively holds 100% voting rights and equity in Dahua Zhilian.
187
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(2) The Company directly holds 32.7321% equity in Hangzhou Huacheng Network Technology Co., Ltd., and as agreed upon, Ningbo
Huayu Investment Management Partnership (Limited Partnership) grants 31.0505% of its voting rights to the Company. The Compan y
effectively holds 63.7826% of the voting rights in Hangzhou Huacheng Network Technology Co., Ltd., which constitutes working
control so as to incorporate it into the scope of consolidation.
(3) 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 35% of its voting rights to the Company. The Company effectively holds
80% of the voting rights in Zhejiang Huajian Technology Co., Ltd., which constitutes working control so as to incorporate it into the
scope of consolidation.
Basis for holding half or less of the voting rights but still controlling the investee, and holding more than half of the voting rights but
not controlling the investee:
As of June 2024, the Company held 32.58% equity in Zhejiang HuaRay Technology Co., Ltd. and the Company was the largest
shareholder of HuaRay Technology. The remaining shareholders had a low and dispersed shareholding ratio, therefore, was
incorporated 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
1) In January 2024, the Company acquired 25% equity in Zhejiang Dahua Investment Management Co., Ltd. held by Zhejiang Huashi
Investment Management Co., Ltd. for a consideration of RMB 23.109 million, and the Company's shareholding in Dahua Investment
Management Co. increased from 75% to 100% after the acquisition, and Dahua Investment Management Co. became a wholly-owned
subsidiary of the Company.
2) In February 2024, the Company transferred 60.50% equity in Huafei Intelligence to its subsidiary Zhejiang Huajian Technology Co.,
Ltd. for a consideration of RMB 42.9098 million, and at the same time, Huafei Intelligence’s original minority shareholder Ningbo
Hualing Venture Capital Investment Partnership (Limited Partnership) transferred 39.5% equity in Huafei Intelligence to Zhejiang
Huajian for a consideration of RMB 28.0155 million. After that, Huafei Intelligence became a wholly-owned subsidiary of Zhejiang
Huajian. The Company holds 45% equity in Zhejiang Huajian, with the voting right of 80%, so Company's shareholding in Huafei
Intelligence has changed from 60.50% to 45%, and Huafei Intelligence remains a subsidiary of the Company and is incorporated into
the scope of consolidation.
(2) The effect of the transactions on the equity of the minority shareholders and the shareholder's equity attributable to the
parent company
Unit: RMB
Dahua investment management Huafei Intelligent
Purchase cost/Disposal consideration 23,109,000.00 28,015,493.50
-- Cash 23,109,000.00 28,015,493.50
-- Fair value of non-cash assets
Purchase cost/ Total disposal
23,109,000.00 28,015,493.50
consideration
Less: the share of net assets of the
subsidiary calculated based on the ratio 23,226,187.37 26,396,990.00
of equity obtained/disposed
Difference -117,187.37 1,618,503.50
188
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Including: adjust the capital reserve 117,187.37 -1,618,503.50
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 the Opening balance / amount occurred in
current period the previous period
Joint ventures:
The total count of the following items
based on the shareholding ratios
Affiliates:
Total book value of investments 731,631,231.34 727,453,629.75
The total count of the following items
based on the shareholding ratios
--Net profit 16,910,626.79 -154,531,486.76
--Other comprehensive income -4,166,343.69 9,366,194.55
--Total comprehensive income 12,744,283.10 -145,165,292.21
XI. Government Subsidies
1. Government grants recognized as accounts receivable at the end of the reporting period
□ Applicable Not applicable
Reasons for failure to receive the estimated amount of government subsidy at the estimated time point
□ Applicable Not applicable
2. Projects related to government subsidies
Applicable □ Not applicable
Unit: RMB
Amount
Amounts Other
The amount recorded as
transferred to changes Related to
Accountin Opening of new non-
other gains in in the Closing Balance assets/earnin
g Accounts Balance subsidies in operating
the current current gs
this period revenue in
period period
this period
Deferred Related to
151,844,373.02 9,190,000.00 5,739,184.92 155,295,188.10
Income assets
Deferred Related to
14,867,300.02 4,955,766.66 9,911,533.36
Income income
189
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
3. Government subsidies recorded into current profits and losses
Applicable □ Not applicable
Unit: RMB
Accounting Accounts Amount Occurred in the Current Period Amount Occurred in the Previous Period
Other Incomes 498,234,879.66 352,576,310.78
XII. Risks Relating to Financial Instruments
1. Various risks arising from 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 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
190
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
forecasting the cash flow in the next 12 months, the Financial Department ensures that the Company has sufficient funds to re pay 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, 2024
Item
Within 1 year 1 years or above Total
Short-term loan 800,973,205.56 800,973,205.56
Notes Payable 3,065,463,328.91 3,065,463,328.91
Accounts
5,671,851,750.01 5,671,851,750.01
Payable
Other Payables 754,681,225.56 754,681,225.56
Non-current
Liabilities Due 247,922,156.90 247,922,156.90
within 1 Year
Lease liabilities 145,525,564.42 145,525,564.42
Total 10,540,891,666.94 145,525,564.42 10,686,417,231.36
December 31, 2023
Item
Within 1 year 1 years or above Total
Short-term loan 961,559,707.96 961,559,707.96
Notes Payable 3,296,294,946.26 3,296,294,946.26
Accounts
5,815,123,195.55 5,815,123,195.55
Payable
Other Payables 812,424,146.52 812,424,146.52
Non-current
Liabilities Due 924,321,195.99 924,321,195.99
within 1 Year
Lease liabilities 187,049,189.60 187,049,189.60
Total 11,809,723,192.28 187,049,189.60 11,996,772,381.88
(III) Market Risk
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 liabilit ies
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
191
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Cash and 1,566,019,107.05 1,484,043,096.15 3,050,062,203.20 1,211,603,667.27 3,821,528,161.46 5,033,131,828.73
Bank
Balances
Accounts 3,534,586,399.84 2,225,832,262.93 5,760,418,662.77 3,780,152,844.06 2,615,801,053.40 6,395,953,897.46
receivable
Accounts 620,335,735.43 208,904,480.93 829,240,216.36 734,434,093.99 242,813,777.12 977,247,871.11
Payable
Total 5,720,941,242.32 3,918,779,840.01 9,639,721,082.33 5,726,190,605.32 6,680,142,991.98 12,406,333,597.30
2. Financial Assets
(1) Classification of transfer methods
Applicable □ Not applicable
Unit: RMB
Nature of financial Amount of financial Basis for derecognition
Transfer methods Derecognition
assets transferred assets transferred judgment
The notes receivable
are not derecognised as
the bankers'
acceptances and
commercial
acceptances are
accepted by banks with
Bank acceptance bills
low credit ratings or by
and commercial
Endorsement or enterprises, the
acceptance bills that 25,409,130.30 Not derecognised
discount recourse to endorsed or
have not yet matured
discounted bills of
among notes receivable
exchange is not
affected, and the credit
risk and the risk of
delayed payment
related to the notes
have not been
transferred.
It can be judged that
the major risks and
rewards of ownership
of the notes have been
transferred and the
notes are derecognised
since the bankers'
acceptances in the
Banker’s acceptance receivables financing
Endorsement or
not yet due in 44,106,306.89 Derecognised are accepted by banks
discount
receivables financing. with high credit
ratings, the credit risk
and risk of delayed
payment are minimal,
and the interest rate
risk relating to the
notes title has been
transferred to the
banks.
192
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
According to the
accounts receivable
factoring agreement
with recourse, the main
Discounting or Accounts receivable
973,205.56 Not derecognised risks and rewards of
factoring not yet due
the title have not been
transferred, so the
accounts receivable are
not derecognised.
For the accounts
receivable transferred
under accounts
receivable factoring
agreement without
Discounting or Accounts receivable
66,650,967.39 Derecognised recourse, the main risks
factoring not yet due
and rewards of the title
have been transferred,
so the accounts
receivable are
derecognised.
Total 137,139,610.14
(2) Financial assets derecognised due to transfers
Applicable □ Not applicable
Unit: RMB
Transfer ways of financial Amount of financial assets Gains or losses relating to
Item
assets derecognised derecognition
Banker’s acceptance not yet
Endorsement/discount 44,106,306.89
due in receivables financing.
Factoring of accounts
Accounts receivable 66,650,967.39 -685,702.55
receivable
Total 110,757,274.28 -685,702.55
(3) Assets and transferred financial assets that the Company keeps recourse or retains part of corresponding rights or interests
□ Applicable Not applicable
XIII. Disclosure of Fair Value
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
Fair values at period-end
Item First level Second level Third level
measurement at fair measurement at fair measurement at fair Total
value value value
I. Constant
measurement at fair -- -- -- --
value
(I) Trading Financial 369,806,680.00 384,471.06 370,191,151.06
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Assets
1. Financial assets at
fair value through
369,806,680.00 384,471.06 370,191,151.06
profit or loss in this
period
(1) Investment in debt
instrument
(2) Investment in
369,806,680.00 369,806,680.00
equity instrument
(3) Derivative
384,471.06 384,471.06
Financial Assets
2. Financial assets at
fair value through
profit or loss in this
period
(1) Investment in debt
instrument
(2) Investment in
equity instrument
(II) Investment in
Other Creditor's Rights
(III) Investment in
Other Equity
Instruments
(IV) Investment
Property
1. Land use rights for
rent
2. Buildings for rent
3. Land use rights held
and intended to be
transferred after
appreciation
(V) Biological Assets
1. Consumable
biological assets
2. Productive
biological assets
(VI) Receivables
685,382,779.93 685,382,779.93
Financing
(VII) Other Non-
current Financial 961,583,353.80 46,844,731.16 1,008,428,084.96
Assets
1. Financial assets at
fair value through
961,583,353.80 46,844,731.16 1,008,428,084.96
profit or loss in this
period
(1) Investment in debt
instrument
(2) Investment in
46,844,731.16 46,844,731.16
equity instrument
194
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(3) Derivative
Financial Assets
(4) Others 961,583,353.80 961,583,353.80
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
369,806,680.00 1,647,350,604.79 46,844,731.16 2,064,002,015.95
measured at fair value
(VIII) Transactional
1,196,685.79 1,196,685.79
financial liabilities
Including: Trading
bonds issued
Derivative
Financial Liabilities
Others 1,196,685.79 1,196,685.79
(IX) Financial assets
that are designated to
be measured at fair
value through profit or
loss in this period
Total amount of
liabilities constantly
1,196,685.79 1,196,685.79
measured at their fair
values
II. Non-continuous fair
-- -- -- --
value measurement
(I) Holding assets for
sale
Total assets not
constantly measured at
fair value
Total liabilities not
constantly measured at
fair value
2. Basis for determining the market value of continuous and non-continuous third-level fair value
measurement items
The company determines the fair value based on the unadjusted quoted prices of the same assets or liabilities that are available at the
measurement date in the active market.
195
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
3. For the continuous and non-continuous second-level fair value measurement items, the valuation
techniques adopted and the qualitative and quantitative information of important parameters
The fair value of the derivative financial assets/derivative financial liabilities is measured and recognized with reference to different
parameters determined by the financial institutions on the basis of the market conditions then existing as well as the remaining term
and transaction term of such transaction.
Due to the short remaining term of the receivables financing, the book value is close to the fair value, and the nominal amount is used
as the fair value.
Other non-current financial assets are valued on the basis of quotations provided by financial institutions.
4. For the continuous and non-continuous third-level fair value measurement items, the valuation techniques
adopted and the qualitative and quantitative information of important parameters
Evaluate the value and net book assets based on the income method and asset-based method.
5. The fair value of financial assets and financial liabilities not measured at fair value
The fair value of financial assets and financial liabilities measured by the Company at amortized cost is equivalent to the book value.
XIV. Related Parties and Related-party Transactions
1. The Company's Parent Company
Shareholding ratio Proportion of
Name of parent Registered Registered
Business Nature of the parent voting rights of the
company Address Capital
company parent company
Controlling shareholders
Fu Liquan 31.08% 31.27%
and actual controller
Chen Ailing Actual controller 2.16% 2.18%
The final controllers of the Company are Mr. Fu Liquan and Ms. Chen Ailing.
2. Information about the Company's subsidiaries
For details of subsidiaries of the Company, see Note "X. Equities in other entities".
3. Information about the Company's joint ventures and affiliates
For details of important associates or joint ventures of the Company, see Note "X. Equities in other entities".
Here is the information about other joint ventures and affiliates that have related-party transactions with the Company in the current
period or have balance from related-party transactions with the Company in the previous period:
Names of joint ventures and affiliates Relationship with the Company
Intelbras S.A. Affiliate
Guangdong Zhishi Digital Technology Co., Ltd. Affiliate
Ruicity Digital Technology Co., Ltd. And its subsidiaries Affiliate
Dezhou Shuzhi Information Technology Co., Ltd. Affiliate
Zhejiang Huachuang Vision Technology Co., Ltd. Affiliate
Ningbo Cida Yongshun Intelligent Technology Co., Ltd. Affiliate
Guangxi FTZ Huaqin Wisdom Park Technology Research Affiliate
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2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Institute Co., Ltd.
4. Information about other related parties
Names of other related parties Relationship between the Company and other related parties
Zhejiang Huanuokang Technology Co., Ltd. and its subsidiaries Enterprise controlled by the actual controller
Huayan Capital (Hangzhou) Private Equity Fund Management
Enterprise controlled by the actual controller
Co., Ltd.
Zhejiang Hyxi Technology Co., Ltd. Enterprise controlled by the actual controller
Ningbo Hualing Venture Capital Investment Partnership
Enterprise controlled by the actual controller
(Limited Partnership)
Zhejiang Lancable Technology Co., Ltd. Enterprises where the actual controller has significant influence
Zhejiang Leapmotor Technology Co., Ltd. and its affiliates
Enterprises where the actual controller has significant influence
(Note 1)
China Mobile Communications Group Co., Ltd. and its
Shareholders holding more than 5% of the shares
affiliates
Beijing Haitian Ruisheng Science Technology Ltd. Enterprises where the Company’s supervisors serve as directors
Company A and other companies under its control Related parties
Enterprises significantly influenced by the major shareholder of
Hangzhou Vision Robot Technology Co., Ltd. (Note 2)
the Company
Enterprises controlled by the major shareholder of the
Hangzhou Xintu Technology Co., Ltd. (Note 2)
Company
Note 1: "Zhejiang Leapmotor Technology Co., Ltd. and its affiliates" includes a total of eight companies that have related transactions
with the Company, namely Zhejiang Leapmotor Technology Co., Ltd., Leapmotor Automobile Co., Ltd., Zhejiang Leapmotor
Automobile Sales Service Co., Ltd., Jinhua Leapmotor New Energy Automotive Parts Technology Co., Ltd., Chongqing Lingdi
Automobile Sales Service Co., Ltd., Jinhua Lingsheng Technology Co., Ltd.,Zhejiang Lingsheng Technology Co., Ltd., and Lingxiao
Energy Technology (Wuyi) Co., Ltd.
Note 2: Hangzhou Vision Robot Technology Co., Ltd. and Hangzhou Xintu Technology Co., Ltd. ended the affiliated relationship in
April 2024.
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 Occurred Over the Amount Occurred
Approved
Related parties related - party in the Current transaction limit or in the Previous
transaction limit
transaction Period not Period
Company A and
Purchase of
other companies 165,464,165.81 No 87,944,986.38
materials
under its control
China Mobile Material
Communications procurement,
29,810,955.52 No 26,348,234.68
Group Co., Ltd. acceptance of
and its affiliates services
Zhejiang
Huachuang Vision Purchase of
19,013,656.35 No 49,224,850.97
Technology Co., materials
Ltd.
Ruicity Digital Purchase of 8,517,077.21 No
197
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Technology Co., materials
Ltd. And its
subsidiaries
Zhejiang
Material
Leapmotor
procurement,
Technology Co., 2,849,413.00 No 44,520.00
acceptance of
Ltd. and its
services
affiliates
Zhejiang
Material
Huanuokang
procurement,
Technology Co., 639,822.86 No 98,230.08
acceptance of
Ltd. and its
services
subsidiaries
Beijing Haitian
Acceptance of
Ruisheng Science 80,371.70 No
services
Technology Ltd.
Material
Hangzhou Vision
procurement,
Robot Technology 13,301.89 No 114,093.70
acceptance of
Co., Ltd.
services
Zhejiang Lancable
Purchase of
Technology Co., 1,061.95 No
materials
Ltd.
Sales of merchandise and provision of services
Unit: RMB
Content of the related - party Amount Occurred in the Amount Occurred in the
Related parties
transaction Current Period Previous Period
Intelbras S.A. Sales of merchandise 143,079,215.80 446,779,132.82
Zhejiang Leapmotor
Sales of merchandise and
Technology Co., Ltd. and its 126,434,708.54 120,340,837.10
provision of services
affiliates
China Mobile
Sales of merchandise and
Communications Group Co., 86,084,408.42 102,813,489.29
provision of services
Ltd. and its affiliates
Ruicity Digital Technology
Sales of merchandise 5,920,590.17 8,946,222.30
Co., Ltd. And its subsidiaries
Dezhou Shuzhi Information Sales of merchandise and
5,488,111.52 2,199,876.10
Technology Co., Ltd. provision of services
Ningbo Cida Yongshun
Sales of merchandise and
Intelligent Technology Co., 2,167,340.82 7,655,090.67
provision of services
Ltd.
Guangdong Zhishi Digital
Sales of merchandise 891,772.36 1,839,830.02
Technology Co., Ltd.
Zhejiang Huanuokang
Technology Co., Ltd. and its Sales of merchandise 400,278.51 549,768.52
subsidiaries
Zhejiang Huachuang Vision Sales of merchandise and
380,435.50 3,007,439.49
Technology Co., Ltd. provision of services
Guangxi FTZ Huaqin
Wisdom Park Technology Sales of merchandise 386,548.68 63,004.88
Research Institute Co., Ltd.
Zhejiang Hyxi Technology
Sales of merchandise 47,478.63
Co., Ltd.
Hangzhou Xintu Technology Sales of merchandise and
1,362.74 3,066.44
Co., Ltd. provision of services
198
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Zhejiang Lancable
Sales of merchandise -10,619.47 20,300.89
Technology Co., Ltd.
Company A and other
Sales of merchandise 17,638.82
companies under its control
Hangzhou Vision Robot
Sales of merchandise 4,513.28
Technology Co., Ltd.
(2) Related leasing
The Company being the lessor:
Unit: RMB
Rental income confirmed in Rental income confirmed in
Name of the lessee Type of the leased assets
this period the previous period
Zhejiang Huanuokang
Technology Co., Ltd. and its Buildings and constructions 876,922.77 901,966.90
subsidiaries
Zhejiang Hyxi Technology
Buildings and constructions 818,706.26
Co., Ltd.
Zhejiang Leapmotor
Technology Co., Ltd. and its Buildings and constructions 134,487.97 134,487.98
affiliates
Huayan Capital (Hangzhou)
Private Equity Fund Buildings and constructions 46,467.27 52,702.78
Management Co., Ltd.
Zhejiang Huachuang Vision
Buildings and constructions 10,045.86 10,045.87
Technology Co., Ltd.
The Company being the lessee:
Unit: RMB
Simplified rental Variable lease
expenses for short- payments not
Interest expense on
term leases and included in the Increased right-of-
Rent paid lease liabilities
low-value asset measurement of use assets
borne
Type of leases (if lease liabilities (if
Name applicable) applicable)
the
of the
leased Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
lessor
assets t t t t t t t t t t
Occurre Occurre Occurre Occurre Occurre Occurre Occurre Occurre Occurre Occurre
d in the d in the d in the d in the d in the d in the d in the d in the d in the d in the
Current Previou Current Previou Current Previou Current Previou Current Previou
Period s Period Period s Period Period s Period Period s Period Period s Period
Zhejian
g
Leapm
otor
Machin
Technol
ery and 1,034,9 1,034,9 109,364 122,357
ogy
equipm 15.00 15.00 .41 .01
Co.,
ent
Ltd.
and its
affiliate
s
199
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(3) Related guarantee
The Company being the guarantor:
Unit: RMB
Guarantee fulfilled
Secured parties Amount guaranteed Starting date Maturity date
completely or not
From the start of the
guarantee period to
three years after the
Zhengzhou Dahua maturity date of each
Zhian Information 50,000,000.00 June 25, 2023 note discounted by the Yes
Technology Co., Ltd. Hangzhou Branch of
China Merchants Bank
within the credit
extension period
Zhengzhou Dahua
Zhian Information 30,000,000.00 August 25, 2022 August 25, 2025 No
Technology Co., Ltd.
Zhejiang Huayixin
Three years after the
Technology Co., Ltd.
2,000,000.00 May 16, 2022 maturity of the debts in Yes
(guarantee currency is
the master contract
US dollar)
Three years after the
Zhejiang Huayixin
10,000,000.00 April 29, 2022 maturity of the debts in No
Technology Co., Ltd.
the master contract
Zhejiang Huayixin
2,000,000.00 August 25, 2022 August 25, 2025 No
Technology Co., Ltd.
Zhejiang Huayixin
8,000,000.00 October 21, 2022 September 18, 2024 No
Technology Co., Ltd.
Zhejiang Huaxiao
2,000,000.00 August 25, 2022 August 25, 2025 No
Technology Co., Ltd.
Zhejiang Huaxiao
8,000,000.00 October 21, 2022 September 18, 2024 No
Technology Co., Ltd.
Zhejiang Huajian
2,000,000.00 August 25, 2022 August 25, 2025 No
Technology Co., Ltd.
Zhejiang Pixfra
5,000,000.00 August 25, 2022 August 25, 2025 No
Technology Co., Ltd.
Zhejiang Huafei
Intelligent Technology 2,000,000.00 August 25, 2022 August 25, 2025 No
CO., LTD.
From the start of the
guarantee period to
three years after the
maturity date of each
Zhejiang Fengshi
20,000,000.00 June 25, 2023 note discounted by the Yes
Technology Co., Ltd.
Hangzhou Branch of
China Merchants Bank
within the credit
extension period
Zhejiang Fengshi
100,000,000.00 August 25, 2022 August 25, 2025 No
Technology Co., Ltd.
Zhejiang Fengshi
20,000,000.00 October 21, 2022 September 18, 2024 No
Technology Co., Ltd.
Two years after the
Zhejiang Dahua
300,000,000.00 March 28, 2019 maturity of the debts in Yes
Zhilian Co., Ltd.
the master contract
From the effective date
of the Commitment
Letter to three years
Zhejiang Dahua after the maturity date
160,000,000.00 June 09, 2023 Yes
Zhilian Co., Ltd. of each loan or other
financing under the
Credit Agreement or of
the accounts receivable
200
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
claims granted by the
Hangzhou Branch of
China Merchants Bank
or the advance date of
each advance within the
credit extension period;
For any specific
extension of credit, the
guarantee period shall
be extended for an
additional three years
after the expiration of
the extension period.
Zhejiang Dahua
120,000,000.00 June 19, 2023 June 18, 2024 Yes
Zhilian Co., Ltd.
Zhejiang Dahua
350,000,000.00 June 19, 2023 June 18, 2024 Yes
Zhilian Co., Ltd.
Zhejiang Dahua
Zhilian Co., Ltd.
5,000,000.00 December 03, 2021 December 02, 2024 No
(guarantee currency is
US dollar)
Zhejiang Dahua
Zhilian Co., Ltd.
12,500,000.00 July 13, 2023 July 12, 2024 No
(guarantee currency is
US dollar)
Three years after the
Zhejiang Dahua
165,000,000.00 July 26, 2021 maturity of the debts in No
Zhilian Co., Ltd.
the master contract
Zhejiang Dahua
200,000,000.00 August 25, 2022 August 25, 2025 No
Zhilian Co., Ltd.
Zhejiang Dahua
150,000,000.00 September 19, 2022 September 18, 2024 No
Zhilian Co., Ltd.
From the date of
expiration of the
performance period of
each debt in the master
contract until three
Zhejiang Dahua
500,000,000.00 July 24, 2023 years after the date of No
Zhilian Co., Ltd.
expiration of the
performance period of
the last due master debt
under all master
contracts.
One year from the
expiration date of the
Zhejiang Dahua
10,000,000.00 January 02, 2024 debtor's performance No
Zhilian Co., Ltd.
period as agreed in the
master contract
Two years from the
expiration date of the
Zhejiang Dahua
300,000,000.00 March 29, 2024 debtor's performance No
Zhilian Co., Ltd.
period as agreed in the
master contract
From the effective date
of the Commitment
Letter to three years
after the maturity date
of each loan or other
financing under the
Zhejiang Dahua Credit Agreement or of
160,000,000.00 June 07, 2024 No
Zhilian Co., Ltd. the accounts receivable
claims granted by the
Hangzhou Branch of
China Merchants Bank
or the advance date of
each advance within the
credit extension period;
201
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
For any specific
extension of credit, the
guarantee period shall
be extended for an
additional three years
after the expiration of
the extension period.
From the effective date
of the Commitment
Letter to three years
after the maturity date
of each loan or other
financing under the
Credit Agreement or of
the accounts receivable
claims granted by the
Zhejiang Dahua Hangzhou Branch of
System Engineering 40,000,000.00 June 09, 2023 China Merchants Bank Yes
Co., Ltd. or the advance date of
each advance within the
credit extension period;
For any specific
extension of credit, the
guarantee period shall
be extended for an
additional three years
after the expiration of
the extension period.
Zhejiang Dahua Two years after the
System Engineering 10,000,000.00 August 30, 2019 maturity of the debts in No
Co., Ltd. the master contract
Zhejiang Dahua
System Engineering 5,000,000.00 August 25, 2022 August 25, 2025 No
Co., Ltd.
Three years from the
effective date of the
Maximum Amount
Zhejiang Dahua Guarantee Contract to
System Engineering 50,000,000.00 July 25, 2023 the expiration date of No
Co., Ltd. the performance period
of each debt under the
Credit Business
Agreement.
One year from the
signing of the project
Zhejiang Dahua
contract or 6 months of
System Engineering 1,602,100.00 September 11, 2023 No
stable operation of the
Co., Ltd.
system on line
(whichever is later)
From the effective date
of the Commitment
Letter to three years
after the maturity date
of each loan or other
financing under the
Credit Agreement or of
the accounts receivable
Zhejiang Dahua
claims granted by the
System Engineering 40,000,000.00 June 07, 2024 No
Hangzhou Branch of
Co., Ltd.
China Merchants Bank
or the advance date of
each advance within the
credit extension period;
For any specific
extension of credit, the
guarantee period shall
be extended for an
202
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
additional three years
after the expiration of
the extension period.
Zhejiang Dahua Vision
530,000,000.00 April 07, 2020 March 31, 2024 Yes
Technology Co., Ltd.
Three years after the
Zhejiang Dahua Vision
1,000,000,000.00 February 04, 2021 maturity of the debts in Yes
Technology Co., Ltd.
the master contract
From the effective date
of the Commitment
Letter to three years
after the maturity date
of each loan or other
financing under the
Credit Agreement or of
the accounts receivable
claims granted by the
Hangzhou Branch of
Zhejiang Dahua Vision
400,000,000.00 June 09, 2023 China Merchants Bank Yes
Technology Co., Ltd.
or the advance date of
each advance within the
credit extension period;
For any specific
extension of credit, the
guarantee period shall
be extended for an
additional three years
after the expiration of
the extension period.
From the start of the
guarantee period to
three years after the
maturity date of each
Zhejiang Dahua Vision
200,000,000.00 June 25, 2023 note discounted by the Yes
Technology Co., Ltd.
Hangzhou Branch of
China Merchants Bank
within the credit
extension period
Three years from the
next day of ICBC
Zhejiang Dahua Vision
200,000,000.00 November 20, 2023 Qingchun Sub-branch's Yes
Technology Co., Ltd.
external payment
commitment
Zhejiang Dahua Vision
Two years after the
Technology Co., Ltd.
40,000,000.00 September 21, 2018 maturity of the debts in No
(guarantee currency is
the master contract
US dollar)
Two years after the
Zhejiang Dahua Vision
220,000,000.00 October 13, 2017 maturity of the debts in No
Technology Co., Ltd.
the master contract
Five years upon
Zhejiang Dahua Vision expiration of debt
300,000,000.00 August 15, 2020 No
Technology Co., Ltd. period of master
contract
Three years after the
Zhejiang Dahua Vision
440,000,000.00 July 26, 2021 maturity of the debts in No
Technology Co., Ltd.
the master contract
Three years after the
Zhejiang Dahua Vision
200,000,000.00 October 20, 2021 maturity of the debts in No
Technology Co., Ltd.
the master contract
Three years after the
Zhejiang Dahua Vision
200,000,000.00 July 22, 2022 maturity of the debts in No
Technology Co., Ltd.
the master contract
Zhejiang Dahua Vision
600,000,000.00 September 19, 2022 September 18, 2024 No
Technology Co., Ltd.
Zhejiang Dahua Vision From the date of
400,000,000.00 July 24, 2023 No
Technology Co., Ltd. expiration of the
203
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
performance period of
each debt in the master
contract until three
years after the date of
expiration of the
performance period of
the last due master debt
under all master
contracts.
Three years from the
effective date of the
Maximum Amount
Guarantee Contract to
Zhejiang Dahua Vision
500,000,000.00 July 25, 2023 the expiration date of No
Technology Co., Ltd.
the performance period
of each debt under the
Credit Business
Agreement.
Calculated separately
on the basis of a single
credit business handled
by Dahua Vision
Technology for the
debtor, i.e. from the
date of signing of the
Zhejiang Dahua Vision
900,000,000.00 September 26, 2023 master contract for a No
Technology Co., Ltd.
single credit business to
three years after the
expiration date of the
debtor's debt
performance period
under such master
contract
Three years from the
expiration date of the
Zhejiang Dahua Vision
330,000,000.00 September 26, 2023 debtor's performance No
Technology Co., Ltd.
period as agreed in the
master claim contract
Three years from the
next day after the
Zhejiang Dahua Vision expiry date of each type
1,000,000,000.00 March 01, 2024 No
Technology Co., Ltd. of financing business
under the master
contract
Two years from the
expiration date of the
Zhejiang Dahua Vision
530,000,000.00 April 01, 2024 debtor's performance No
Technology Co., Ltd.
period as agreed in the
master contract
From the effective date
of the Commitment
Letter to three years
after the maturity date
of each loan or other
financing under the
Credit Agreement or of
the accounts receivable
Zhejiang Dahua Vision claims granted by the
400,000,000.00 June 07, 2024 No
Technology Co., Ltd. Hangzhou Branch of
China Merchants Bank
or the advance date of
each advance within the
credit extension period;
For any specific
extension of credit, the
guarantee period shall
be extended for an
204
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
additional three years
after the expiration of
the extension period.
Zhejiang Dahua
Security Network
5,000,000.00 August 25, 2022 August 25, 2025 No
Operation Service Co.,
Ltd.
From the start of the
guarantee period to
three years after the
maturity date of each
Changsha Dahua
10,000,000.00 June 25, 2023 note discounted by the Yes
Technology Co., Ltd.
Hangzhou Branch of
China Merchants Bank
within the credit
extension period
Changsha Dahua
30,000,000.00 August 25, 2022 August 25, 2025 No
Technology Co., Ltd.
Changsha Dahua
20,000,000.00 October 21, 2022 September 18, 2024 No
Technology Co., Ltd.
From the start of the
guarantee period to
three years after the
maturity date of each
Xi'an Dahua Zhilian
50,000,000.00 June 25, 2023 note discounted by the Yes
Technology Co., Ltd.
Hangzhou Branch of
China Merchants Bank
within the credit
extension period
Xi'an Dahua Zhilian
100,000,000.00 August 25, 2022 August 25, 2025 No
Technology Co., Ltd.
Xi'an Dahua Zhilian
25,000,000.00 October 21, 2022 September 18, 2024 No
Technology Co., Ltd.
Jiangsu Huaruipin
8,000,000.00 August 25, 2022 August 25, 2025 No
Technology Co. Ltd.
Jiangsu Huaruipin
15,000,000.00 October 21, 2022 September 18, 2024 No
Technology Co. Ltd.
Hangzhou Xiaohua
2,000,000.00 August 25, 2022 August 25, 2025 No
Technology CO., LTD.
Hangzhou Huacheng Two years after the
Network Technology 50,000,000.00 August 30, 2019 maturity of the debts in Yes
Co., Ltd. the master contract
Hangzhou Huacheng Three years after the
Network Technology 55,000,000.00 July 26, 2021 maturity of the debts in Yes
Co., Ltd. the master contract
Hangzhou Huacheng
Network Technology 65,000,000.00 August 25, 2022 April 29, 2024 Yes
Co., Ltd.
Dahua Technology
(HK) Limited
2,000,000.00 April 21, 2023 April 21, 2024 Yes
(guarantee currency is
US dollar)
Dahua Technology
(HK) Limited Ⅰ
3,000,000.00 April 22, 2024 April 22, 2025 No
(guarantee currency is
US dollar)
From the start of the
guarantee period to
three years after the
Chengdu Dahua Zhian
maturity date of each
Information
80,000,000.00 June 25, 2023 note discounted by the Yes
Technology Service
Hangzhou Branch of
Co., Ltd.
China Merchants Bank
within the credit
extension period
205
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Dahua Technology UK
Limited Sign the Termination
1,160,000.00 August 12, 2020 No
(guaranteed currency is Notice Letter
GBP)
Dahua Technology UK
Limited
1,000,000.00 March 04, 2024 March 03, 2025 No
(guarantee currency is
US dollar)
DAHUA
TECHNOLOGY
MEXICO S.A. DE C.V 1,000,000.00 October 18, 2023 October 20, 2024 No
(guaranteed currency is
US dollar)
Dahua Technology
Italy S.R.L Ⅰ
500,000.00 March 04, 2024 March 03, 2025 No
(guarantee currency is
US dollar)
Dahua Technology
France Sas Ⅰ
145,690.20 December 07, 2023 August 31, 2029 No
(guarantee currency is
EUR)
Dahua Europe B.V. Ⅰ
(guarantee currency is 1,500,000.00 March 04, 2024 March 03, 2025 No
US dollar)
The Company being the guaranteed party
None
(4) Asset transfer and debt restructuring of related parties
Unit: RMB
Content of the related - party Amount Occurred in the Amount Occurred in the
Related parties
transaction Current Period Previous Period
Zhejiang Huachuang Vision
Procurement of fixed assets 2,654.86 40,630.42
Technology Co., Ltd.
China Mobile
Communications Group Co., Procurement of fixed assets 1,767,786.05
Ltd. and its affiliates
Zhejiang Huachuang Vision
Selling of fixed assets 612,608.16
Technology Co., Ltd.
Zhejiang Huanuokang
Technology Co., Ltd. and its Selling of fixed assets 2,792.34
subsidiaries
(5) Remuneration to key management personnel
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Salary of key management personnel 8,958,819.43 4,650,848.77
(6) Other related-party transactions
1) In January 2024, the Company acquired 25% equity in Zhejiang Dahua Investment Management Co., Ltd. held by its affiliate
Zhejiang Huashi Investment Management Co., Ltd. for a consideration of RMB 23.109 million, and the Company's shareholding in
206
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Dahua Investment Management Co. increased from 75% to 100% after the acquisition, and Dahua Investment Management Co. became
a wholly-owned subsidiary of the Company.
2) In February 2024, the controlling subsidiary, Zhejiang Huajian, purchased 39.5% equity in Huafei Intelligence from an affiliate,
Ningbo Huaying Venture Capital Partnership (Limited Partnership), at a consideration of RMB 28.0155 million.
6. Receivables and payables of the related parties
(1) Receivables
Unit: RMB
Closing Balance Opening Balance
Item Name Related parties
Book balance Bad debt provision Book balance Bad debt provision
China Mobile
Accounts Communications
167,988,128.18 20,275,762.13 140,286,722.77 15,390,276.69
receivable Group Co., Ltd.
and its affiliates
Zhejiang
Leapmotor
Accounts
Technology Co., 145,238,165.14 7,362,452.14 158,504,082.59 7,998,998.48
receivable
Ltd. and its
affiliates
Accounts
Intelbras S.A. 109,710,832.38 5,485,297.09 399,216,383.81 19,960,819.19
receivable
Ruicity Digital
Accounts Technology Co.,
17,071,064.35 1,185,568.97 18,610,308.67 1,161,880.61
receivable Ltd. And its
subsidiaries
Zhejiang
Huanuokang
Accounts
Technology Co., 5,991,999.16 1,091,892.36 5,512,687.07 766,592.10
receivable
Ltd. and its
subsidiaries
Dezhou Shuzhi
Accounts Information
4,785,898.00 239,294.90
receivable Technology Co.,
Ltd.
Ningbo Cida
Yongshun
Accounts
Intelligent 4,042,825.01 250,463.63 4,955,930.01 247,796.50
receivable
Technology Co.,
Ltd.
Guangdong Zhishi
Accounts
Digital Technology 2,789,794.22 139,489.71 4,757,349.37 267,081.04
receivable
Co., Ltd.
Zhejiang
Accounts Huachuang Vision
1,903,723.55 141,100.29 1,503,214.40 75,211.10
receivable Technology Co.,
Ltd.
Zhejiang Hyxi
Accounts
Technology Co., 508,674.11 25,433.70
receivable
Ltd.
Company A and
Accounts
other companies 388,475.44 258,757.85 2,708,124.52 1,194,095.64
receivable
under its control
207
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Guangxi FTZ
Huaqin Wisdom
Accounts
Park Technology 156,000.00 7,800.00 31,200.00 1,560.00
receivable
Research Institute
Co., Ltd.
Zhejiang Lancable
Accounts
Technology Co., 15,000.00 750.00
receivable
Ltd.
Hangzhou Xintu N/A (Note 1) N/A (Note 1)
Accounts
Technology Co., 81.60 4.08
receivable
Ltd.
Huayan Capital
(Hangzhou)
Accounts
Private Equity 181.50 9.08
receivable
Fund Management
Co., Ltd.
China Mobile
Communications
Prepayments 121,876.47 473,044.59
Group Co., Ltd.
and its affiliates
Company A and
Prepayments other companies 1,009,420.72 685,807.08
under its control
China Mobile
Communications
Contract Assets 6,427,785.75 1,766,289.93 7,708,740.44 1,807,246.75
Group Co., Ltd.
and its affiliates
Ruicity Digital
Technology Co.,
Contract Assets 295,333.40 29,001.74 206,733.38 20,141.74
Ltd. And its
subsidiaries
Zhejiang
Leapmotor
Contract Assets Technology Co., 152,727.27 7,636.36
Ltd. and its
affiliates
China Mobile
Communications
Other Receivables 3,079,695.93 370,757.68 1,965,652.24 265,848.14
Group Co., Ltd.
and its affiliates
Zhejiang
Leapmotor
Other Receivables Technology Co., 184,850.00 9,242.50 64,850.00 3,242.50
Ltd. and its
affiliates
Note 1: The affiliated relationship has ended in the first half of 2024;
(2) Payables
Unit: RMB
Item Name Related parties Closing balance Opening balance
China Mobile
Accounts Payable Communications Group Co., 38,344,992.37 38,418,336.92
Ltd. and its affiliates
Zhejiang Huachuang Vision
Accounts Payable 6,601,097.53 12,132,312.24
Technology Co., Ltd.
208
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Zhejiang Huanuokang
Accounts Payable Technology Co., Ltd. and its 756,557.34 61,513.26
subsidiaries
Ruicity Digital Technology
Accounts Payable 12,227,782.84 9,167,655.86
Co., Ltd. And its subsidiaries
Zhejiang Leapmotor
Accounts Payable Technology Co., Ltd. and its 1,121,921.09 730,299.40
affiliates
Zhejiang Lancable
Accounts Payable 3,970.00
Technology Co., Ltd.
China Mobile
Contract liabilities Communications Group Co., 11,205,207.18 12,139,953.98
Ltd. and its affiliates
Zhejiang Leapmotor
Contract liabilities Technology Co., Ltd. and its 2,899,859.47 1,648,066.02
affiliates
Huayan Capital (Hangzhou)
Contract liabilities Private Equity Fund 107.08
Management Co., Ltd.
Zhejiang Huanuokang
Contract liabilities Technology Co., Ltd. and its 340,855.09
subsidiaries
Hangzhou Xintu Technology
Contract liabilities N/A (Note 1) 1,362.58
Co., Ltd.
Zhejiang Hyxi Technology
Contract liabilities 0.02
Co., Ltd.
Ningbo Hualing Venture
Capital Investment
Other Payables 13,727,591.82
Partnership (Limited
Partnership)
China Mobile
Other Payables Communications Group Co., 6,323,159.22 5,363,787.00
Ltd. and its affiliates
Zhejiang Leapmotor
Other Payables Technology Co., Ltd. and its 300,000.00 173,520.00
affiliates
Zhejiang Huanuokang
Other Payables Technology Co., Ltd. and its 63,070.00 63,070.00
subsidiaries
Note 1: The affiliated relationship has ended in the first half of 2024.
XV. Share-based Payment
1. Overview of share-based payment
Applicable □ Not applicable
Unit: RMB
Category of Granted in the current Exercising in the current Unlocked in the current Lapsed in the current
granted period period period period
recipients Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Senior
manageme 2,134,680.0 17,418,988.
nt, other 0 80
manageme
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nt, and key
business
personnel
2,134,680.0 17,418,988.
Total
0 80
Stock options or other equity instruments outstanding at the end of the period
Applicable □ Not applicable
The stock options outstanding at the end of the Other equity instruments outstanding at the end of
Category of granted period the period
recipients Range of exercise Remaining term of Range of exercise Remaining term of
prices contract prices contract
Senior management,
other management, and RMB 15.657/share 24 months RMB 8.16/share 24 months
key business personnel
Other notes
(1) The employees of the Company and its subsidiaries hold the equity of HuaRay Technology through capital increase, direct or
indirect equity transfers. According to the fair value of the investors recently introduced by HuaRay Technology, the confirmed share-
based payment fee is RMB 36,032,191.13.
(2) The employees of the Company and its subsidiaries hold the equity of Huacheng Network through capital increase, direct or indirect
equity transfers. According to the fair value of the investors recently introduced by Huacheng Network, the confirmed share -based
payment fee is RMB 3,601,982.25.
(3) The employees of the Company and its subsidiaries hold the equity of Pixfra Technology through capital increase, direct or indirect
equity transfers. According to the fair value of the investors recently introduced by Pixfra Technology, the confirmed share-based
payment fee is RMB 11,236,464.16.
2. Situation of equity-settled share-based payment
Applicable □ Not applicable
Unit: RMB
The fair value of the restricted stocks shall be determined based
on the stock price and the grant cost of the stocks or stock price
The method for determining the fair value of equity instruments
of the most recent external investor entry as at the grant date,
on the day of granting
while the fair value of the stock options shall be determined
under the Black-Scholes Model
The basis for determining the amount of exercisable equity Estimated according to equity instruments held by the
instruments employees
Reason for the significant difference between the estimation of
None
current period and the previous period
The accumulated amount of equity-settled share-based payment
473,264,034.64
counted into the capital reserve
Amount of equity-settled share-based payment confirmed in
135,251,897.69
current period
3. Situation of cash-settled share-based payment
□ Applicable Not applicable
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4. Share-based payments in the current period
Applicable □ Not applicable
Unit: RMB
Category of granted recipients Equity-settled share-based payments Cash-settled share-based payments
Senior management, other management,
135,251,897.69
and key business personnel
Total 135,251,897.69
5. Modification and termination of share-based payment
None
XVI. Commitments and Contingencies
1. Significant commitments
Important commitments on the balance sheet day
As of June 30, 2024, the Company's pledge information was as follows:
(1) On May 30, 2024, 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 (2024) No. 09915 (the contract term is from May 30, 2024
to May 30, 2025), to provide a guarantee for the "Asset Pool Business Cooperation Agreement" signed by the Company together with
the subsidiary Zhejiang Dahua Vision Technology Co., Ltd., the subsidiary Zhejiang Dahua System Engineering Co., Ltd., the
subsidiary Zhejiang Fengshi Technology Co., Ltd., the subsidiary Zhejiang Xiaohua 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 2.5 billion.
Under the notes pool business, as of June 30, 2024, the Company had undue notes receivable of RMB 354,023,995.81 (where RMB
350,000,000.00 was related party notes receivable that should be included in the scope of consolidation), the subsidiary Zhejiang Dahua
Vision Technology Co., Ltd. had undue notes receivable of RMB 460,285,734.37 (where RMB 150,240.28 was related party notes
receivable that should be included in the scope of consolidation).
Under the pledge, the Company issued the bank acceptance bills in the amount of RMB 18,616,053.43, the subsidiary Zhejiang Dahua
Vision Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB 453,063,480.44, and the subsidiary Zhejiang
Dahua System Engineering Co., Ltd. issued the bank acceptance bills in the amount of RMB 32,955.32.
(2) On May 30, 2024, 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 (2024) No. 09483 (the
contract term is from May 30, 2024 to May 30, 2025), to provide a guarantee for the "Asset Pool Business Cooperation Agreement"
signed by Zhejiang Dahua Zhilian Co., Ltd. together with Hangzhou Branch of Zheshang Bank Co., Ltd. The financing amount for the
fund pledge pool cannot be more than RMB 0.5 billion.
Under the notes pool business, as of June 30, 2024, RMB 428,165,776.29 of undue notes receivable (of which RMB 290,000,0 00.00
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 the bank acceptance bills in the amount of RMB
215,325,910.54.
(3) On June 1, 2022, the Company and Hangzhou Branch of China Merchants Bank Co., Ltd. signed the "Credit Agreement for Notes
Pool Business" (No.: 571XY2022013930), which promised a special credit limit of RMB 1.5 billion for the notes pool, and allocated
the same limit to the subsidiary Zhejiang Dahua Vision Technology Co., Ltd., the subsidiary Zhejiang Dahua System Engineering Co.,
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Ltd., the subsidiary Hangzhou Huacheng Network Technology Co., Ltd., the subsidiary Zhejiang Fengshi Technology Co., Ltd., the
subsidiary Zhejiang Huafei Intelligent Technology Co., Ltd., the subsidiary Zhejiang Huayixin Technology Co., Ltd., the subsidiary
Zhejiang Huaxiao Technology Co., Ltd.,, the subsidiary Zhejiang Huajian Technology Co., Ltd., the subsidiary Xi'an Dahua Zhilian
Technology Co., Ltd., the subsidiary Zhejiang Dahua Intelligent IoT Operation Service Co., Ltd., and the subsidiary Zhejiang Dahua
Zhilian Co., Ltd.
Under the notes pool business, as of June 30, 2024, the Company had undue notes receivable of RMB 250,148,691.16 (where RMB
250,000,000.00 was related party notes receivable that should be included in the scope of consolidation), the subsidiary Zhejiang Dahua
Vision Technology Co., Ltd. had undue notes receivable of RMB 185,128,867.91 (where RMB 100,000,000.00 was related party notes
receivable that should be included in the scope of consolidation), the subsidiary Zhejiang Dahua System Engineering Co., Ltd. had
undue notes receivable of RMB 1,500,000.00, the subsidiary Zhejiang Huajian Technology Co., Ltd. Had undue notes receivable of
RMB 3,056,074.09 and the subsidiary Zhejiang Dahua Intelligent IoT Operation Service Co., Ltd. had undue notes receivable of RMB
466,827.20 pledged for issuing bank acceptance bills.
Under the pledge, the subsidiary Hangzhou Huacheng Network Technology Co., Ltd. issued the bank acceptance bills in the amoun t
of RMB 72,499,490.30, the subsidiary Zhejiang Fengshi Technology Co., Ltd. Issued the bank acceptance bills in the amount of RMB
189,274,762.80, the subsidiary Zhejiang Huajian Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB
388,445.48, the subsidiary Zhejiang Huaxiao Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB 242,622.30
and the subsidiary Zhejiang Huayixin Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB 105,850.49.
(4) On May 17, 2024, the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. and Bank of Hangzhou Co., Ltd. entered into the
“Supplemental Agreement to the Asset Steward Pledge Contract” (No. E-C-B-18-2), and extended the term of “Pledge Contract for
Maximum Amount of Individual Asset Management” to May 16, 2027, agreeing on providing a guarantee for the “Asset Management
Service Agreement” signed by the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. and Hangzhou Bank Co., Ltd. The credit
limit of the notes pool cannot be more than RMB 0.2 billion.
Under the notes pool business, as of June 30, 2024, RMB 36,224,845.94 of undue notes receivable of the subsidiary Zhejiang Dahua
Vision Technology Co., Ltd. were pledged for the issuance of acceptance bills.
Under the pledge, the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB
0.
(5) Under the Asset Pool Charge-off Agreement PPHJQZCZ 20230731 No.001 (the contract term is from August 18, 2023 to August
17, 2024) made by and between the Company and Ping An Bank Limited Hangzhou Branch on August 18, 2023, a special credit line
of RMB 1 billion in note pool was granted and was also allocated to the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. , the
subsidiary Jiangsu Huaruipin Technology Co., Ltd., the subsidiary Zhejiang Pixfra Technology Co., Ltd. and the subsidiary Changsha
Dahua Technology Co., Ltd.
Under the notes pool business, as of June 30, 2024, the Company had undue notes receivable of RMB 101,058,158.02 (where RMB
100,000,000.00 was related party notes receivable that should be included in the scope of consolidation), the subsidiary Zhejiang Dahua
Vision Technology Co., Ltd. had undue notes receivable of RMB 85,190,149.97, the subsidiary Jiangsu Huaruipin Technology Co.,
Ltd. had undue notes receivable of RMB 2,882,500.00, the subsidiary Changsha Dahua Technology Co., Ltd. had undue notes
receivable of RMB 541,842.30 and the subsidiary Zhejiang Pixfra Technology Co., Ltd. had undue notes receivable of RMB
571,790.95 pledged for issuing bank acceptance bills.
Under the pledge, the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB
57,046,965.00, the subsidiary Jiangsu Huaruipin Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB
4,987,674.26, the subsidiary Zhejiang Pixfra Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB 310,844.25
and the subsidiary Changsha Dahua Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB 9,507,064.62.
(6) 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.
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Under the notes pool business, as of June 30, 2024, RMB 76,448,443.46 of undue notes receivable of the subsidiary Zhejiang HuaRay
Technology Co., Ltd. were pledged for the issuance of acceptance bills.
Under the pledge, the subsidiary Zhejiang HuaRay Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB
68,438,313.20.
(7) The subsidiary Zhejiang HuaRay Technology Co., Ltd. and CITIC Bank Limited Hangzhou Branch entered into the "Asset Pool
Business Cooperation Agreement", agreeing on a credit limit of RMB 0.3 billion for asset pool business.
Under the asset pool business, as of June 30, 2024, RMB 88,000.00 of undue notes receivable of the subsidiary Zhejiang HuaRay
Technology Co., Ltd. were pledged for the issuance of acceptance bills.
Under the pledge, the subsidiary Zhejiang HuaRay Technology Co., Ltd. issued the bank acceptance bills in the amount of RMB
88,000.00.
2. Contingencies
(1) Important contingent matters on the balance sheet day
No important contingent matters on the balance sheet day.
(2) Description required even if no important contingent matter is to be disclosed by the Company
No important contingent matter to be disclosed by the Company.
XVII. Events after the Balance Sheet Date
1. Profit Distribution
Proposed dividend per 10 shares (RMB) 1.84
Proposed dividend per 10 shares (shares) 0
Proposed number of shares transferred for per 10 shares
0
(shares)
Number of dividends declared for every 10 shares after review
1.84
and approval (RMB)
Number of bonus shares declared for every 10 shares after
0
review and approval (shares)
Declared number of shares transferred per 10 shares after
0
review and approval (shares)
Based on 3,272,527,089 shares after deducting the re-
purchased shares (19,819,601 shares), the Company paid a cash
of RMB 1.84 (tax inclusive) every 10 shares to all
Profit distribution plan
shareholders, and distributed RMB 602,144,984.38 of cash
bonus. It did not convert capital reserve into share capital or
paid bonus shares, and the rest will be distributed in the future.
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XVIII. Other Significant Events
1. Subsection information
(1) Basis for determining the reporting subsection and the accounting policy
The Company determines the operation subsection based on internal organization structure, management requirements, internal
reporting system, etc. The Company has only one operational subsection, namely the R&D, production, and sales of intelligent IoT
products. The accounting policy of the reporting subsection is consistent with that of the Company.
(2) Financial information of the reporting subsection
Regional subsection
Unit: RMB
Item Operating revenue Operating Cost
Domestic 7,381,482,622.15 4,712,943,582.38
Overseas 7,485,139,947.66 4,018,482,056.15
Total 14,866,622,569.81 8,731,425,638.53
Product subsection
Unit: RMB
Item Operating revenue Operating Cost
Smart IoT Products and Solutions 12,028,870,893.80 6,806,823,631.23
Including: Software business 758,033,553.36 252,248,321.27
Innovated Businesses 2,461,115,617.88 1,600,810,667.52
Others 376,636,058.13 323,791,339.78
Total 14,866,622,569.81 8,731,425,638.53
XIX. Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 3,520,711,199.24 6,181,011,320.94
1 to 2 years 278,767,366.37 220,370,669.05
2 to 3 years 191,396,736.66 205,500,322.81
3 years or above 240,199,560.55 209,345,603.19
3 to 4 years 157,951,460.57 139,992,165.49
4 to 5 years 56,782,246.68 48,597,714.50
5 years or above 25,465,853.30 20,755,723.20
Total 4,231,074,862.82 6,816,227,915.99
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(2) Disclosure by Bad Debt Accrual Method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti value Proporti value
Amount Amount proporti Amount Amount proporti
on on
on on
Account
s
receivab
les with
the bad
debt 39,711,3 39,711,3 39,711,3 39,711,3
0.94% 100.00% 0.58% 100.00%
provisio 90.05 90.05 90.05 90.05
n
accrued
based on
single
item
Includ
ing:
Account
s
receivab
le with
insignifi
cant
single
39,711,3 39,711,3 39,711,3 39,711,3
amount 0.94% 100.00% 0.58% 100.00%
90.05 90.05 90.05 90.05
but
accrued
for
separate
provisio
n of bad
debt
Account
s
receivab
les with
the bad
debt 4,191,36 157,521, 4,033,84 6,776,51 135,569, 6,640,94
99.06% 3.76% 99.42% 2.00%
provisio 3,472.77 050.50 2,422.27 6,525.94 555.41 6,970.53
n
accrued
based on
combina
tions
Includ
ing:
Portfolio
1: 2,983,85 2,983,85 5,668,80 5,668,80
70.52% 83.17%
Related 6,187.77 6,187.77 0,812.35 0,812.35
Parties
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Portfolio
Portfolio
2: Aging 1,207,50 157,521, 1,049,98 1,107,71 135,569, 972,146,
28.54% 13.05% 16.25% 12.24%
Analysis 7,285.00 050.50 6,234.50 5,713.59 555.41 158.18
Portfolio
4,231,07 197,232, 4,033,84 6,816,22 175,280, 6,640,94
Total 100.00% 100.00%
4,862.82 440.55 2,422.27 7,915.99 945.46 6,970.53
Category name of individual provision for bad debts: Accounts receivable with insignificant single amount but accrued for separate
provision of bad debt
Unit: RMB
Opening Balance Closing Balance
Name Reason for
Bad debt Bad debt Accrued
Book balance Book balance making bad
provision provision proportion
debt provision
Expected to be
Customer 1 38,612,198.42 38,612,198.42 38,612,198.42 38,612,198.42 100.00% unable to
recover
Expected to be
Other sporadic
1,099,191.63 1,099,191.63 1,099,191.63 1,099,191.63 100.00% unable to
customers
recover
Total 39,711,390.05 39,711,390.05 39,711,390.05 39,711,390.05
Category name of bad debt provision based on combination: Aging Analysis Portfolio
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 Year 773,288,547.88 38,664,427.40 5.00%
1 to 2 years 205,967,338.20 20,596,733.82 10.00%
2 to 3 years 130,647,249.12 39,194,174.74 30.00%
3 to 4 years 72,891,642.29 36,445,821.15 50.00%
4 to 5 years 10,463,070.59 8,370,456.47 80.00%
5 years or above 14,249,436.92 14,249,436.92 100.00%
Total 1,207,507,285.00 157,521,050.50
If the bad debt provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable Not applicable
(3) Provision for bad debts accrued, recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
Balance Accrued Written Off Others Balance
Reversed
Bad debt
175,280,945.46 21,951,495.09 197,232,440.55
provision
Total 175,280,945.46 21,951,495.09 197,232,440.55
Significant amount of recovered or reversed bad debt provision in this period:
None
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(4) Accounts receivable and contract assets of the top five closing balances collected by debtors
Unit: RMB
Closing balance of
As a percentage of
Closing balance of provision for bad
Closing balance of accounts
Closing balance of accounts debts on accounts
Name of Unit accounts receivables and
contract assets receivable and receivable and
receivable total ending
contract assets impairment of
balance
contract assets
Customer 1 2,244,848,035.21 2,244,848,035.21 52.53%
Customer 2 335,445,614.92 335,445,614.92 7.85%
Customer 3 78,471,394.93 78,471,394.93 1.84%
Customer 4 69,500,000.04 69,500,000.04 1.63%
Customer 5 173,725,290.13 4,033,607.19 177,758,897.32 4.16% 32,220,570.94
Total 2,901,990,335.23 4,033,607.19 2,906,023,942.42 68.01% 32,220,570.94
2. Other Receivables
Unit: RMB
Item Closing Balance Opening Balance
Dividends Receivable 1,243,275.00
Other Receivables 13,951,333,800.18 11,736,609,900.41
Total 13,952,577,075.18 11,736,609,900.41
(1) Dividends Receivable
1) Classification of Dividends Receivable
Unit: RMB
Project (or Invested Unit) Closing Balance Opening Balance
Smartsens Technology (Shanghai) Co.,
1,243,275.00
Ltd.
Total 1,243,275.00
(2) Other receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Deposits 43,108,287.06 42,885,100.54
Prepaid or advance expense 47,743,274.09 55,413,467.31
Employee home loan 60,869,540.00 70,683,455.00
Incomings and outgoings 13,833,023,680.90 11,602,342,723.04
Others 2,060,890.30 401,773.49
Total 13,986,805,672.35 11,771,726,519.38
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2) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 13,479,839,597.85 11,151,113,722.07
1 to 2 years 80,114,874.97 152,050,338.67
2 to 3 years 67,213,898.99 103,271,253.97
3 years or above 359,637,300.54 365,291,204.67
3 to 4 years 69,388,836.67 156,024,115.87
4 to 5 years 103,682,547.56 38,468,597.33
5 years or above 186,565,916.31 170,798,491.47
Total 13,986,805,672.35 11,771,726,519.38
3) Disclosure by bad debt accrual method
Unit: RMB
Closing Balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book
Proporti value Proporti value
Amount Amount proporti Amount Amount proporti
on on
on on
Provisio
n of bad
13,986,8 13,951,3 11,771,7 11,736,6
debts 35,471,8 35,116,6
05,672.3 100.00% 0.25% 33,800.1 26,519.3 100.00% 0.30% 09,900.4
based on 72.17 18.97
5 8 8 1
combina
tion
Includ
ing:
Portfolio
1: 13,833,0 13,833,0 11,602,3 11,602,3
Related 23,680.9 98.90% 23,680.9 42,723.0 98.56% 42,723.0
Parties 0 0 4 4
Portfolio
Portfolio
2: Aging 153,781, 35,471,8 118,310, 169,383, 35,116,6 134,267,
1.10% 23.07% 1.44% 20.73%
Analysis 991.45 72.17 119.28 796.34 18.97 177.37
Portfolio
13,986,8 13,951,3 11,771,7 11,736,6
35,471,8 35,116,6
Total 05,672.3 100.00% 33,800.1 26,519.3 100.00% 09,900.4
72.17 18.97
5 8 8 1
Category name of bad debt provision based on combination: Aging Analysis Portfolio
Unit: RMB
Closing Balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
71,429,386.60 3,571,469.33 5.00%
year)
1 to 2 years 27,365,865.55 2,736,586.56 10.00%
2 to 3 years 23,969,251.21 7,190,775.36 30.00%
3 to 4 years 12,457,684.30 6,228,842.15 50.00%
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4 to 5 years 14,078,025.09 11,262,420.07 80.00%
5 years or above 4,481,778.70 4,481,778.70 100.00%
Total 153,781,991.45 35,471,872.17
Provision for bad debts based on general model of expected credit losses:
Unit: RMB
Phase One Phase Two Phase Three
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire extension for the entire extension Total
in the next 12 months (without credit (with credit
impairment) impairment)
Balance as of January
22,429,894.62 11,227,684.56 1,459,039.79 35,116,618.97
1, 2024
Balance in the current
period as of January 1,
2024
--Transfer to phase two -332,408.86 332,408.86
--Transfer to phase
-34,390.00 -45,300.00 79,690.00
three
Provisions of this
1,447,087.15 667,514.00 2,114,601.15
period
Reversals in this period 1,649,916.95 1,649,916.95
Write off in this period 9,431.00 100,000.00 109,431.00
Balance as of June 30,
20,403,747.81 12,861,880.57 2,206,243.79 35,471,872.17
2024
Book balance changes with significant changes in loss provision in the current period
□ Applicable Not applicable
4) Provision for bad debts accrued, recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or Resale or write-
Balance Accrued Others Balance
Reversed off
Bad debt
35,116,618.97 2,114,601.15 1,649,916.95 109,431.00 35,471,872.17
provision
Total 35,116,618.97 2,114,601.15 1,649,916.95 109,431.00 35,471,872.17
Significant amount of recovered or reversed bad debt provision in this period:
None
5) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Other accounts receivable actually written off 109,431.00
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Write-off of other important receivables:
None
6) Other receivables of the top five closing balances collected by debtors
Unit: RMB
As a percentage of
Bad debt provision
Nature of the total other
Name of Unit Closing Balance Aging at the end of the
funds receivables at the
period
end of the period
RMB
9,508,518,058.76
within 1 year,
Incomings and
Company 1 9,508,912,790.40 RMB 219.61 for 1- 67.98%
outgoings
2 years, RMB
394,512.03 for 2-3
years
Incomings and
Company 2 2,261,965,873.93 Within 1 year 16.17%
outgoings
RMB
864,250,172.57
within 1 year,
RMB 2,900,000.00
for 1-2 years,
Incomings and RMB 4,700,400.00
Company 3 911,945,472.56 6.52%
outgoings for 2-3 years,
RMB 5,901,013.50
for 3-4 years,
RMB
34,193,886.49 for
4-5 years
Incomings and
Company 4 263,635,181.57 Within 1 year 1.88%
outgoings
RMB 9,105,508.49
within 1 year,
RMB 9,080,630.14
for 1-2 years,
RMB
10,006,656.50 for
Incomings and
Company 5 209,823,025.32 2-3 years, RMB 1.50%
outgoings
8,757,718.98 for
3-4 years, RMB
8,918,883.13 for
4-5 years, RMB
163,953,628.08 for
5 years or above
Total 13,156,282,343.78 94.05%
3. Long-term Equity Investments
Unit: RMB
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
220
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Investment in 8,050,494,737. 8,050,494,737. 8,003,642,515. 8,003,642,515.
subsidiaries 88 88 21 21
Investment in
affiliates and 179,139,117.95 723,496.39 178,415,621.56 188,883,917.03 723,496.39 188,160,420.64
joint ventures
8,229,633,855. 8,228,910,359. 8,192,526,432. 8,191,802,935.
Total 723,496.39 723,496.39
83 44 24 85
(1) Investment in subsidiaries
Unit: RMB
Opening Decrease/Increase in the current period Closing
Opening Closing
The balance of Provision balance of
balance balance
invested provision Investment Investment for provision
(book Others (book
entity for s increased decreased impairment for decline
value) value)
impairment accrued in value
Zhejiang
Dahua
544,717,88 3,925,019.4 548,642,90
System
0.88 1 0.29
Engineerin
g Co., Ltd.
Zhejiang
Dahua
Security
102,235,99 102,274,02
Network 38,030.34
6.18 6.52
Operation
Service
Co., Ltd.
Zhejiang
Dahua
5,100,000.0 5,100,000.0
Ju'an
0 0
Technology
Co., Ltd.
Guangxi
Dahua
Informatio 6,221,853.6 6,256,907.0
35,053.44
n 5 9
Technology
Co., Ltd.
Dahua
Technology 669,687,34 669,687,34
(HK) 7.00 7.00
Limited
Zhejiang
Dahua
1,301,496,1 5,560,195.9 1,307,056,3
Vision
74.07 7 70.04
Technology
Co., Ltd.
Guangxi
Dahua
Yunlian
20,002,580. 20,002,580.
Informatio
76 76
n
Technology
Co., Ltd.
221
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Hangzhou
Xiaohua 9,463,819.7 9,638,229.4
174,409.62
Technology 9 1
CO., LTD.
Zhejiang
Dahua 1,853,882,5 35,725,666. 1,889,608,2
Zhilian 87.98 55 54.53
Co., Ltd.
Zhejiang
Dahua
62,175,000. 23,109,000. 85,284,000.
Investment
00 00 00
Manageme
nt Co., Ltd.
Guangxi
Dahua 71,342,564. 71,382,714.
40,150.02
Zhicheng 89 91
Co., Ltd.
Hangzhou
Huacheng
33,452,823. 1,535,670.2 34,988,493.
Network
33 5 58
Technology
Co., Ltd.
Zhejiang
HuaRay 43,042,525. 4,785,720.1 47,828,245.
Technology 36 7 53
Co., Ltd.
Hangzhou
Fuyang
5,131,561.9 5,142,082.5
Hua'ao 10,520.64
1 5
Technology
Co., Ltd.
Zhejiang
Huafei
39,020,809. 36,097,000. 3,064,461.8
Intelligent 140,652.65
23 00 8
Technology
CO., LTD.
Guizhou
Huayi
1,800,000.0 1,800,000.0
Shixin
0 0
Technology
Co., Ltd.
Zhejiang
Fengshi 9,076,201.6 9,099,814.7
23,613.12
Technology 2 4
Co., Ltd.
Dahua
Technology 8,102,000.0 8,102,000.0
Holdings 0 0
Limited
Zhejiang
Huaxiao 39,503,195. 40,090,625.
587,429.88
Technology 53 41
Co., Ltd.
Xi'an
Dahua 991,403,69 991,968,35
564,660.18
Zhilian 3.10 3.28
Technology
222
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Co., Ltd.
Jiangsu
Huaruipin 18,066,240. 18,135,755.
69,514.56
Technology 73 29
Co. Ltd.
Beijing
Huayue
Shangchen
g
10,986,257. 11,148,722.
Informatio 162,465.26
22 48
n
Technology
Service
Co., Ltd.
Zhejiang
Dahua
60,000,000. 60,000,000.
Jinzhi
00 00
Technology
Co., Ltd.
Shanghai
Huashang
Chengyue
Informatio 2,624,687.5 2,990,413.6
365,726.10
n 7 7
Technology
Service
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.
Zhejiang
Huayixin 41,057,905. 41,157,509.
99,603.55
Technology 45 00
Co., Ltd.
Zhejiang
Huaruijie 54,759,369. 55,709,260.
949,891.30
Technology 02 32
Co., Ltd.
Chengdu
Dahua
Zhilian
600,967,71 601,153,32
Informatio 185,610.83
1.17 2.00
n
Technology
Co., Ltd.
Chengdu
Dahua 554,700,00 554,700,00
Zhian 0.00 0.00
Informatio
223
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
n
Technology
Service
Co., Ltd.
Chengdu
Huishan
Smart 5,800,000.0 5,800,000.0
Network 0 0
Technology
Co., Ltd.
Zhejiang
Huajian 25,438,594. 26,255,942.
817,348.09
Technology 24 33
Co., Ltd.
Xinjiang
Dahua
Zhixin
Informatio 2,055.08 2,055.08
n
Technology
Co., Ltd.
Guangxi
Huacheng
181,131.07 28,702.02 209,833.09
Technology
Co., Ltd.
Hangzhou
Huacheng 4,537,212.6 1,405,896.3 5,943,108.9
Software 1 6 7
Co., Ltd.
Dahua
Technology
72,864.00 72,864.00
Canada
Inc.
Chengdu
Dahua
Zhishu
Informatio 10,000,000. 10,000,000.
n 00 00
Technology
Service
Co., Ltd.
Zhengzhou
Dahua
Zhian
30,000,000. 30,000,000.
Informatio
00 00
n
Technology
Co., Ltd.
Dahua
Technology 1,000,000.0 1,000,000.0
Internation 0 0
al Pte. Ltd.
Changsha
Dahua 100,029,57 100,039,43
9,858.24
Technology 4.72 2.96
Co., Ltd.
Zhejiang 592,510,76 1,910,495.7 594,421,26
224
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Pixfra 5.20 0 0.90
Technology
Co., Ltd.
Zhejiang
Dahua
Intelligent
16,050,203. 16,396,856.
IoT 346,653.10
52 62
Operation
Service
Co., Ltd.
Henan
Dahua
Zhilian
Informatio 163,701.90 54,567.30 218,269.20
n
Technology
Co., Ltd.
Yibin
Huahui
Informatio
26,184.84 13,092.42 39,277.26
n
Technology
Co., Ltd.
Luoyang
Dahua
Zhiyu
10,000,000. 10,000,000.
Informatio
00 00
n
Technology
Co., Ltd.
Xi'an
IMOU
Zhilian 43,251.72 21,625.86 64,877.58
Technology
Co., Ltd.
Guangdong
Huaxiyue
Intelligent 126,189.87 252,379.74 378,569.61
Technology
Co., Ltd.
8,003,642,5 82,949,222. 36,097,000. 8,050,494,7
Total
15.21 67 00 37.88
(2) Investment in affiliates and joint ventures
Unit: RMB
Decrease/Increase in the current period
Closin
Openi Invest Adjust
Cash g
Openi ng ment ment Closin
divide Provisi balanc
Name ng balanc profit on g
Invest Invest Other nds or on for e of
of balanc e of and other balanc
ments ment change profit impair provisi
Investe e provisi loss compr Others e
increas decrea s in declare ment on for
es (book on for recogn ehensi (book
ed sed equity d to accrue decline
value) impair ized ve value)
distrib d in
ment under incom
ute value
the e
225
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
equity
metho
d
Ⅰ. Joint ventures
II. Affiliates
Ruicit
y
Digital 78,231 - 71,748
Techn ,566.1 6,483, ,188.4
ology 0 377.66 4
Co.,
Ltd.
Hangz
hou
Juhuan
yan
Inform 723,49 723,49
ation 6.39 6.39
Techn
ology
Co.,
Ltd.
Ningb
o
Huaya
n
Chuan
gxi
Ventur
e 67,432 67,650
217,95
Capital ,554.8 ,506.8
2.09
Invest 0 9
ment
Partner
ship
(Limit
ed
Partner
ship)
Dezho
u
Shuzhi
Inform
3,444, 59,180 3,503,
ation
758.26 .72 938.98
Techn
ology
Co.,
Ltd.
Sichua
n
Hengji
Anhua -
1,121, 1,030,
Interne 90,896
844.56 947.84
t of .72
Things
Techn
ology
226
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Co.,
Ltd.
Zhejia
ng
Huach
uang 37,929 - 34,482
1,704,
Vision ,696.9 5,152, ,039.4
423.02
Techn 2 080.53 1
ology
Co.,
Ltd.
-
188,16 178,41
Subtot 723,49 11,449 1,704, 723,49
0,420. 5,621.
al 6.39 ,222.1 423.02 6.39
64 56
0
-
188,16 178,41
723,49 11,449 1,704, 723,49
Total 0,420. 5,621.
6.39 ,222.1 423.02 6.39
64 56
0
The recoverable amount is determined as the net of fair value less costs of disposal.
□ Applicable Not applicable
The recoverable amount is determined as the present value of the expected future cash flows.
□ Applicable Not applicable
4. Operating revenue and operating cost
Unit: RMB
Amount Occurred in the Current Period Amount Occurred in the Previous Period
Item
Income Cost Income Cost
Main Business 3,299,871,504.63 562,470,540.80 4,154,588,989.34 698,750,728.04
Other businesses 32,747,331.95 17,070,472.33 29,728,074.55 21,033,992.07
Total 3,332,618,836.58 579,541,013.13 4,184,317,063.89 719,784,720.11
5. Investment income
Unit: RMB
Item Amount Occurred in the Current Period Amount Occurred in the Previous Period
Long-term equity investment income
1,149,863.64
calculated by cost method
Long-term equity investment income
-11,449,222.10 -189,891,800.93
measured by equity method
Investment income from disposal of
6,812,806.50 539,223.39
long-term equity investment
Investment income from trading
1,243,275.00
financial assets during the holding period
Investment income from disposal of
15,753,424.73
trading financial assets
Investment income on other non-current
financial assets 26,592.41 2,372,827.09
during the holding period
227
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
Investment income from national debt
308,062.29 569,386.14
reverse repurchase
Profits from recognition termination of
-5,686,129.53 -3,617,354.24
financial assets
Total 7,008,809.30 -188,877,854.91
XX. Supplementary Information
1. Breakdown of non-recurring gains and losses for this period
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains and losses on disposal of non-current assets 104,889,898.73
The government subsidies included in the current profits
and losses (excluding the government subsidies closely
related to regular businesses of the Company, in line with
81,469,680.71
national policies, entitled to according to the established
standard, and continuously impacting the Company’s
profits and losses)
Profits and losses resulting from the changes in fair value
for financial assets and financial liabilities held by non-
financial enterprises, and from disposal of financial assets -45,494,542.45
and liabilities, excluding the effective hedging businesses
related to the regular business operation of the Company
Gains or losses from investment or asset management
-95,376,430.24
entrusted to others
Reversal of the receivables depreciation reserves for
2,567,783.80
separate impairment test
Profits and losses on debt restructuring -70,000.00
Non-Operating Revenue and expenses other than the
3,993,096.01
above
Other gains and losses items that fit the definition of non-
-1,833,839.60
recurring gains and losses
Less: Impact of income tax -8,443,918.44
Impact of minority equity (after tax) 11,237,589.47
Total 47,351,975.93 --
Other gains or losses that fit the definition of non-recurring gains or losses:
□ Applicable Not applicable
The Company has no other gains or losses that fit the definition of non-recurring gains or losses.
Note for the definition of non-recurring gains and losses listed in the No. 1 Explanatory Announcement on Information Disclosure
for Companies Issuance Their Securities to the Public - Non-recurring gains and losses, as recurring gains and losses.
□ Applicable Not applicable
2. Return on net assets and earnings per share
Earnings per share
Profit for the reporting period Weighted Average ROE
Basic Earnings per Share Diluted Earnings per Share
228
2024 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.
(RMB/Share) (RMB/Share)
Net profit attributable to
common shareholders of the 5.10% 0.56 0.56
Company
Net profit attributable to
common shareholders of the
Company after deducting 4.97% 0.54 0.54
non-recurring gains and
losses
3. Differences in accounting data between domestic and overseas accounting standards
(1) Differences of net profits and net assets in the financial reports disclosed according to the international
accounting standards and Chinese accounting standards
□ Applicable Not applicable
(2) Differences of net profits and net assets in the financial reports disclosed according to the overseas
accounting standards and Chinese accounting standards
□ Applicable Not applicable
(3) For explanation of differences in accounting data between domestic and overseas accounting standards,
the name of the overseas accounting firm shall be indicated if the audited data by an overseas accounting
firm has been adjusted for difference.
□ Applicable Not applicable
Zhejiang Dahua Technology Co., Ltd.
Statutory Representative: Fu Liquan
August 24, 2024
229