大华股份:2024AnnualReport

Zhejiang Dahua Technology Co., Ltd.
2024 Annual Report
Code of Securities: 002236
Abbreviation of Securities: DAHUA
Date of Disclosure: March 2025
This document is a translated version of the Chinese version 2024 Annual Report (“2024 年年度报告全文”),
and the published annual report in the Chinese version shall prevail.
The complete published Chinese 2024 Annual Report may be obtained at http://www.cninfo.com.cn.

2024 Annual Report
Section I Important Notes, Table of Contents, and Definitions
The Board of Directors, Board of Supervisors, Directors, Supervisors and Senior
Management of Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as the
"Company") hereby guarantee that the information presented in this report shall be
authentic, accurate and complete and free of any false records, misleading statements or
material omissions, and they will bear joint and several liability for such information.
Fu Liquan, the Company's legal representative, Xu Qiaofen, chief accountant, and
Zhu Zhuling, person in charge of accounting institution (chief accountant) hereby declare
and warrant that the financial report in the annual report is authentic, accurate, and
complete. All directors attended the meeting of the Board of Directors for deliberation of
this annual report.
During the reporting period, there was no significant change in the risks faced by the
Company. The Company has been trying to identify all kinds of risks and actively take
countermeasures to avoid and reduce the risks.
(1) Risk of Technology Upgrading: The AIoT industry is a prime example of a
technology-intensive sector, characterized by rapid advancements and upgrades. If the
Company is unable to keep up with the development trends of industry technologies,
fully address the diverse individual needs of customers, and invest adequately in R&D, it
will still face the risk of declining market competitiveness due to an inability to maintain
continuous 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 IoT, 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 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 significant changes in the global economy, industry, and technology. It analyzes
industry development logic and anticipates the evolution of the AIoT industry, the ongoing
integration of video technology with information communication and digital technologies,
and the diversification and uncertainty of customer demands. While consolidating its
advantageous markets, the Company is actively exploring and piloting new businesses,
innovative commercial models, and strategic business and technology deployment.
(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) Risks of international operations: The Company’s products and solutions cover
more than 100 countries and regions overseas, and international business operations
face an ever-changing environment and new challenges. On the one hand, the global
economic growth rate continues to slow down, geopolitical and political conflicts in some
regions have intensified, and some countries are facing risks such as foreign exchange
difficulties and exchange rate fluctuations, which pose certain threats and risks to the
continued expansion of business in the host countries. On the other hand, pressures
such as regional trade protectionism and regulation, increasingly complex compliance
requireme