大华股份:2023 Semi-Annual Report

2023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Dahua Technology Co. Ltd.2023 Semi-Annual Report
August 26 2023
This document is a translated version of the Chinese version 2023 Semi-Annual Report (“2023 年半年度报告”)
and the published semi-annual report in the Chinese version shall prevail.The complete published Chinese 2023 Semi-Annual Report may be obtained at http://www.cninfo.com.cn.
12023 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' 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 AI video cloud
22023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 network
communications cloud computing big data and AI among other technologies as
well as the upgrades of smartphone 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 capitals 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
32023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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) 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.
(5) 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.
(6) 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
42023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.
(7) 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 trade protection (e.g.FCC ban in the U.S.) and political situations (e.g. local wars) 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.
(8) Risk of the supply chain: The Company comprehensively reviews all kinds
of potential risks in the supply chain and strengthens the ability of continuous
safe supplies of key materials to ensure supply chain security by developing
backup solutions and building rich channels with diversified supply sources.
52023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The Company plans not to pay cash dividend give bonus shares or convert
capital reserve into share capital.
62023 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 Indic.. 13
Section III Management Discussion and Analysis ..... 16
Section IV Corporate Governance .................... 32
Section V Environmental and Social Responsibilitie.. 34
Section VI Significant Events ...................... 35
Section VII Changes in Shares and Information abou.. 57
Section VIII Information of Preferred Shares ....... 65
Section IX Situation on Corporate Bonds ............ 66
Section X Financial Report ......................... 67
72023 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.
82023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Definitions
Item of definition Refers To Definitions
Reporting Period Refers To From January 1 2023 to June 30 2023
Dahua company the company Refers To Zhejiang Dahua Technology Co. Ltd.Dahua System Engineering System
Refers To Zhejiang Dahua System Engineering Co. Ltd.Engineering Company
Dahua Vision Technology Refers To Zhejiang Dahua Vision Technology Co. Ltd.Dahua Security Network Operation Zhejiang Dahua Security Network Operation Service Co.Refers To
Company Ltd.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 Zhicheng Refers To Guangxi Dahua Zhicheng Co. Ltd.Hangzhou Huacheng Huacheng
Refers To Hangzhou Huacheng Network Technology Co. Ltd.Network
Xinjiang Information Refers To Xinjiang Dahua Zhixin Information Technology Co. Ltd.HuaRay Technology Refers To Zhejiang HuaRay Technology Co. Ltd.Fuyang Hua'ao Refers To Hangzhou Fuyang Hua'ao Technology Co. Ltd.Huafei Intelligent Refers To Zhejiang Huafei Intelligent Technology CO. LTD.Huachuang Vision Refers To Zhejiang Huachuang Vision Technology Co. Ltd.Guizhou Huayi Refers To Guizhou Huayi Shixin Technology Co. Ltd.Xinjiang Zhihe Refers To Xinjiang Dahua Zhihe Information Technology Co. Ltd.Guangxi Huacheng Refers To Guangxi Huacheng Technology Co. Ltd.Meitan Dahua Technology Refers To Guizhou Meitan Dahua Information Technology Co. Ltd.Inner Mongolia Dahua Zhimeng Information Technology
Inner Mongolia Zhimeng Refers To
Co. Ltd.Xinjiang Zhitian Refers To Xinjiang Dahua Zhitian Information Technology Co. Ltd.Xinjiang Xinzhi Refers To Xinjiang Dahua Xinzhi Information Technology Co. Ltd.Xinjiang Huayue Refers To Xinjiang Dahua Huayue Information Technology Co. Ltd.Leapmotor Technology Refers To Zhejiang Leapmotor Technology Co. Ltd.Leapmotor Refers To Leapmotor Automobile Co. Ltd.Tianjin Dahua Information Tianjin
Refers To Tianjin Dahua Information Technology Co. Ltd.Dahua
Hunan Dahua Zhilong Dahua
Refers To Hunan Dahua Zhilong Information Technology Co. Ltd.Zhilong
Huaxiao Technology Refers To Zhejiang Huaxiao Technology Co. Ltd.
92023 Semi-Annual Report of Zhejiang Dahua 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 Shangcheng Information Technology
Beijing Huayue Refers To
Service Co. Ltd.Shanghai Huashang Chengyue Information Technology
Shanghai Huashang Refers To
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 Dahua Zhian Information Technology Service
Chengdu Zhian Refers To
Co. Ltd.Chengdu Dahua Zhishu Information Technology Service
Chengdu Zhishu Refers To
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.Guizhou Dahua Refers To Guizhou Dahua Information Technology Co. Ltd.Henan Dahua Refers To Henan Dahua Zhilian Information Technology Co. Ltd.Huajian Refers To Zhejiang Huajian Technology Co. Ltd.Zhengzhou Dahua Zhian Refers To Zhengzhou Dahua Zhian Information Technology Co. Ltd.Dahua International Refers To Dahua Technology International Co. Ltd.Anhui Zhilian Refers To Anhui Dahua Zhilian Information Technology Co. Ltd.Anhui Zhishu Refers To Anhui Dahua Zhishu Information Technology Co. Ltd.Changsha Dahua Refers To Changsha Dahua Technology Co. Ltd.Tianjin Huajian Refers To Tianjin Huajian Technology Co. Ltd.Wuhu Huajian Refers To Wuhu Huajian Technology Co. Ltd.Zhejiang Pixfra Refers To Zhejiang Pixfra Technology Co. Ltd.Yiwu Huaxi Refers To Yiwu Huaxi Technology Co. Ltd.Dahua Operation Refers To Zhejiang Dahua Intelligent IoT Operation Service Co. Ltd.Nanyang Dahua Intelligent Information Technology Co.Nanyang Intelligent Refers To
Ltd.Yibin Huahui Refers To Yibin Huahui Information Technology Co. Ltd.
102023 Semi-Annual Report of Zhejiang Dahua 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.Huajian Technology Refers To Zhejiang Huajian Technology Co. Ltd.Dahua USA Refers To Dahua Technology USA Inc.Dahua Europe Refers To Dahua Europe B.V.Dahua Middle East Refers To Dahua Technology Middle East FZE
Dahua Mexico Refers To Dahua Technology Mexico S.A. DE C.V
Dahua Chile Refers To Dahua Technology Chile SpA
Dahua Malaysia Refers To Dahua Security Malaysia SDN. BHD.Dahua Korea Refers To Dahua Technology Korea Company Limited
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 COMéRCIO
Dahua Brazil Refers To
ESERVI?OS EM SEGURAN?A ELETR?NICA 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. zo.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.
112023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
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. INDúSTRIA DE TELECOMUNICA??O
INTELBRAS S.A. Refers To
ELETR?NICA BRASILEIRA
Dahua Technology Middle East for Maintenance Single
Dahua Saudi Arabia Refers To
Person Company
Dahua Bengal Refers To Dahua Technology Bangladesh Private Limited
IMOU Australia Refers To IMOU NETWORK TECHNOLOGY AUSTRALIA PTY LTD
C?NG TY TNHH C?NG NGH? IMOU NETWORK VI?T
IMOU Vietnam Refers To
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
122023 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
Zhejiang Dahua Technology Co. Ltd.Chinese
Company Abbreviation in大华股份
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 No. 1399 Bixing Road Binjiang
Contact Address
District Hangzhou City District Hangzhou City
Tel. 0571-28939522 0571-28939522
Fax 0571-28051737 0571-28051737
E-mail 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 2022 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 2022 Annual Report for details.
3. Other Related Information
Whether there is any change in other related information
□ Applicable □ Not applicable
132023 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) 14633547280.64 14087085840.97 3.88%
Net profit attributable to
shareholders of the listed 1976018373.13 1519848967.71 30.01%
Company (RMB)
Net profit attributable to
shareholders of the listed
company after deducting 1754769829.96 1255639844.11 39.75%
non-recurring gains and
losses (RMB)
Net cash flow generated by
operational activities 262696745.71 -1727794646.76 115.20%
(RMB)
Basic Earnings per Share
0.630.5123.53%
(RMB/Share)
Diluted Earnings per Share
0.630.5123.53%
(RMB/Share)
Weighted Average ROE 6.70% 6.27% 0.43%
Increase/decrease ratio at
the end of the current
End of the reporting period End of the last year reporting period compared
with the end of last year
Total assets (RMB) 48857796042.93 46252893804.54 5.63%
Net assets attributable to
shareholders of the listed 32372695713.25 25836798918.61 25.30%
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 reports disclosed according to overseas accounting standards and Chinese accounting standards.VI. Non-recurring Gains and Losses Items and Their Amounts
□ Applicable □ Not applicable
Unit: RMB
142023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Item Amount Note
Profits or losses from disposal of non-current assets
174686029.13
(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 69161827.70
policies and consecutively received by a standard quota or
quantity)
Gains or losses from investment or asset management
43299295.17
entrusted to others
Profits and losses resulting from the changes in fair value for
holding trading financial assets and trading financial
liabilities and investment income from disposal of trading
financial assets trading financial liabilities and financial 59884244.14
assets available for trading excluding the effective hedging
businesses related to the regular business operation of the
Company
Reversal of the receivables depreciation reserves for
4513.91
separate impairment test
Non-Operating Revenue and expenses other than the above 3513400.79
Other gains and losses items that fit the definition of non-
-55002533.78
recurring gains and losses
Less: Impact of income tax 72883163.54
Impact of minority equity (after tax) 1415070.35
Total 221248543.17
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.
152023 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 2022 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 2022 Annual
Report for details.III. Main Business Analysis
Overview
In the first half of 2023 China's economy has improved and the overall growth is optimistic. Considering especially
the development of digital applications and AI the Internet of Things industry has demonstrated resilience and great
potential. In this context the Company has made full use of its five capabilities of "full sensing full intelligence full
connection full computing and full ecosystem". To build complete ecosystems for industries it has been paying
attention to business opportunities and demand changes in people's living integrated traffic energy manufacturing
education and other sectors while providing innovative solutions to customers and further boosting its own business
performance. At the same time the Company has continued to improve its production and operation achieving
significant business growth. This has laid solid foundation for long-term stable development of the Company.During the reporting period the Company has achieved operating income of RMB 14.634 billion an increase of
3.88% on a year-on-year basis and realized net profit attributable to shareholders of the listed Company of RMB 1.976
billion an increase of 30.01% on a year-on-year basis. The Company has acted according to its high-quality
development strategy continuously improving its competitiveness. The Company's main business tactics include:
1. Focus on smart IoT and boost the quality of related services
Dahua will continue to focus on the smart IoT industry and adhere to the strategic positioning of a video-centric
smart IoT solution and service provider and the two major business directions of cities and enterprises. With insights
into industrial scenarios and profound understanding of client needs the Company will provide refined smart IoT
solutions so as to promote high-quality green and innovative development of the economy and society.The Company has adhered to the altruistic principle integrating resources to improve products solutions and
overall performance of all business areas and increasing investment in R&D and innovation so that it can meet the
needs for digital intelligence in all walks of life. It has optimized organization and management enhanced business
and governance capabilities operated in areas at lower administrative levels and strengthened the global marketing
162023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
network and compliance system. It has been working hard on building open ecosystems where its partners can bring
their own capabilities into play so as to create a healthy inclusive mutually beneficial and win-win ecosystem and
pursue the common prosperity of the IoT industry. To ensure excellence performance the Company has been
exploring highly efficient business models and high-value products and solutions improving them and replicating their
success so as to standardize business processes and enhance employee efficiency. While maintaining the steady
growth of revenue the Company has continued to improve gross profit and cash flow and achieved steady growth of
net profit.
2. Increase investment in research and development and enhance innovation capabilities and core
technical strengths
The Company has been increasing investment in key technologies such as artificial intelligence cloud computing
and big data 5G and core devices and developing relevant software. During the reporting period the Company has
invested RMB 1.815 billion in research and development accounting for 12.4% of the operating revenue in the first
half of 2023.The Company has been increasing investment in innovation and key technologies to create technical barriers and
improving the AIoT and IoT digital intelligence platforms. The Company will continue to strengthen the research
development and commercialization of multidimensional awareness artificial intelligence cloud computing and big
data software platforms machine vision and robotics 5G cyber security and other technologies. At the same time
the Company has been deepening its understanding of scenario-based industry solutions focusing on valuable
business areas and designing industry-leading products solutions and technology systems to further enhance the
quality of supply and expand the business scope.With the continuous development of artificial intelligence in the field of vision "industry brains" that fully combine
practical experience in industries are indispensable for the commercialization of foundation models. The Company has
been combining the power of foundation models with the data and knowledge of segmented industries to train visual
foundation models adapted to different industries. Also by integrating multimodal technologies the data from different
modalities will be integrated to jointly train the models thus effectively improving the accuracy of IoT awareness.In the future the Company's technological breakthroughs and industrialization in the field of indus try visual
foundation models will lead to improvement of its generalization accuracy and expressiveness capabilities and
accelerate the promotion of digitization and intelligence of the industry raising the technology threshold in the IoT
industry and creating a new competitive edge for the Company.
3. Optimize marketing network and improve all-round marketing capabilities
The Company has an extensive and in-depth marketing and service network around the world and currently has
32 provincial/regional offices in China. To improve customer coverage the Company has been marketing in lower-
level administrative areas penetrating various industries exploring potential customers and working with our eco-
partners to create a win-win ecosystem and build a comprehensive altruistic service platform integrating technologies
172023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
products solutions operations services and business management consultation so as to facilitate the continuous
innovation and development of our partners.The Company has an extensive and in-depth distribution network in overseas markets laying a solid foundation
for the stable growth of its basic businesses. At the same time the Company has been expanding brand influence and
making great efforts to introduce customers to our solutions and provide relevant services. With our strong technical
strength localized sales networks and globalized logistics and after-sales service systems the Company has been
gradually increasing the share of solution revenues in its overseas market. In addition by continuing to cultivate
international business development and management teams and enhancing local business development and
organizational operation capabilities the Company is further expanding overseas markets.
4. Construct a win-win ecosystem that is built and shared by every player
The Company has fully upgraded its ecosystem. With the core of eco-cooperation for value creation the Company
has optimized the ecosystem development strategy developed innovative solutions for different scenarios and
promoted digitalization and intelligence upgrade. In the trillion yuan-worth smart IoT industry Dahua has adhered to
the concept of openness and win-win cooperation and worked with its eco-partners to build the full-scenario closed-
loop capability so as to empower the digitalization and intelligence upgrade in numerous industries. The Company has
fully opened up hardware software algorithms services and business ecology to enable open connectivity of
equipment through DHOP and developed diverse components based on the IoT digital intelligence platform opening
up PaaS to SaaS capabilities. In addition the Company has also built the Genius Artificial Intelligence Open Platform
to provide one-stop algorithm training services for partners. For service partners and business partners the Company
has insisted on the business philosophy of "delivering convenience to partners while solving complexity by ourselves"
to optimize the corresponding marketing policies resource support and organization so as to build a benign sharing
and win-win ecosystem realize the industrial vision of "connect all things with cloud and create a future with digital
intelligence".
5. Promote innovation in diverse business areas
In recent years the scope of the IoT industry has been expanding. Based on the in-depth understanding of
diversified needs of customers and the experience in the smart IoT industry over the years the Company has been
actively identifying areas with huge growth potential and broad market improving the strategic layout in emerging
industries encouraging employees to innovate accelerating the development of products and solutions in emerging
business areas and promoting innovation in diverse business areas. At present the Company has set up industry-
based Internet (HuaRay) smart home (IMOU) thermal imaging (Huagan) automotive electronics (Hirige Jie)
intelligent fire protection (Wisualarm) intelligent security (Huajian) and other business areas. The rapid development of
innovated business has greatly broadened the channel of the Company's smart IoT which is an important driving force
for the Company to keep moving forward steadily in the long term.YoY rates in key financial indicators
Unit: RMB
182023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Year-on-year
Current reporting Same period of last
increase or Reasons for changes period year
decrease
Operating revenue 14633547280.64 14087085840.97 3.88% No major changes
Operating Cost 8363987899.64 8802576621.32 -4.98% No major changes
Sales Expenses 2190619243.64 2039728296.24 7.40% No major changes
Mainly due to the increase in
equity incentive expenses
Administration
574719904.27 416806198.58 37.89% depreciation cost of new
expenses
buildings and the utility bills
of property
Mainly due to the increase in
exchange earnings arising
Financial Expenses -420452697.53 -274601124.61 -53.11%
from exchange rate
fluctuations
Mainly due to the increase in
profit in the current period
and consequently the
Income tax expense 201745311.54 93448750.74 115.89% increase in income tax and
the decrease of tax rebates
compared with the same
period of the previous year
Mainly due to the Company's
R&D investment 1814620715.06 1563479271.17 16.06%
increased R&D investment
Mainly due to the decrease
Net cash flow in trade accounts payable in
generated by 262696745.71 -1727794646.76 115.20% the current period because
operating activities of prepayments in the fourth
quarter of 2022
Mainly due to the decrease
Net amount of cash in net inflow of capital for
flow generated by -171498326.33 -111912983.12 -53.24% investment and wealth
investment activities management in the current
period
Mainly due to the increase in
Net cash flow
cash arising from absorbed
generated by 3782792161.14 646641330.65 484.99%
investment in the current
financing activities
period
Mainly due to the increase in
Net Increase in Cash
absorbed investment and the
and Cash 3919584443.18 -1107052493.98 454.06%
decrease in procurement
Equivalents
expense in the current period
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-
Proportion in Proportion in
year
Amount Operating Amount Operating increase or
Revenue Revenue decrease
Total Revenue 14633547280.64 100% 14087085840.97 100% 3.88%
By Industry
Smart IoT
14633547280.64100.00%14087085840.97100.00%3.88%
Industry
By Product
Smart IoT
Products and 12161117387.94 83.10% 11798309265.54 83.75% 3.08%
Solutions
192023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Including:
Software 757373050.95 5.18% 602291989.74 4.28% 25.75%
Business
Innovative
2258998031.1915.44%1685969891.1411.97%33.99%
Business (Note)
Others 213431861.51 1.46% 602806684.29 4.28% -64.59%
By region
Domestic 7771201571.54 53.11% 7295809974.26 51.79% 6.52%
Overseas 6862345709.10 46.89% 6791275866.71 48.21% 1.05%
Domestic Sub-business Segment
Unit: RMB
Current reporting period Same period of last year
Year-on-year
Proportion in Proportion in
increase or
Amount Domestic Operating Amount Domestic Operating
decrease
Revenue Revenue
To G 2081937638.79 26.79% 2030325740.84 27.83% 2.54%
To B 3858049784.38 49.65% 3539315842.45 48.51% 9.01%
Others 1831214148.37 23.56% 1726168390.97 23.66% 6.09%
Total 7771201571.54 100.00% 7295809974.26 100.00% 6.52%
Note: Innovative business mainly includes machine vision and mobile robots smart living automotive electronics
smart security inspection smart fire control smart storage thermal imaging and other relevant businesses; the
innovative business areas in the first half of 2022 do not include thermal imaging business; 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 or
decrease of Increase and
decrease of
operating decrease of
gross profit
Gross revenue operating cost
Operating revenue Operating Cost compared
margin compared with over the same
with the
the same period of last
same period
period of last year
of last year
year
By Industry
Smart IoT
14633547280.648363987899.6442.84%3.88%-4.98%5.33%
Industry
By Product
Smart IoT
Products and 12161117387.94 6726306045.85 44.69% 3.08% -4.75% 4.54%
Solutions
Including:
Software 757373050.95 241174322.48 68.16% 25.75% 29.09% -0.82%
Business
Innovated
2258998031.191466634666.7235.08%33.99%21.18%6.86%
Businesses
By region
Domestic 7771201571.54 4750611105.50 38.87% 6.52% -2.59% 5.71%
Overseas 6862345709.10 3613376794.14 47.34% 1.05% -7.96% 5.15%
Domestic Sub-
business
Segment
To G 2081937638.79 1142529609.07 45.12% 2.54% -10.18% 7.77%
To B 3858049784.38 2284127107.54 40.80% 9.01% 2.29% 3.89%
Others 1831214148.37 1323954388.89 27.70% 6.09% -3.48% 7.17%
202023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 the reporting period End of the previous year Proportio
Proportio Proportio n Statement on
n To n To increase Significant
Amount Amount
Total Total and Changes
Assets Assets decrease
Mainly due to
Cash and the increase in
Bank 11936864545.30 24.43% 8029878650.77 17.36% 7.07% funds raised
Balances through private
placements
Accounts No major
16026362081.7332.80%15411908561.5033.32%-0.52%
receivable changes.Contract No major
135350874.390.28%106335405.350.23%0.05%
Assets changes.Mainly due to
the decrease in
Inventory 6254601963.07 12.80% 7315372440.02 15.82% -3.02%
stock in the
current period
Investment 434725805.77 0.89% No major
423035823.820.91%-0.02%
Property changes.Mainly due to
the disposal of
equities in
affiliated
businesses and
Long-term
the recognition
Equity 1192130131.68 2.44% 1461099644.55 3.16% -0.72%
of losses on
Investment
investments in
affiliated
businesses in
the current
period
No major
Fixed Assets 4527953284.98 9.27% 4643617574.85 10.04% -0.77%
changes.Projects under No major
594110798.331.22%423535552.030.92%0.30%
Construction changes.Right-of-use No major
317699205.960.65%314700977.500.68%-0.03%
Assets changes.Mainly due to
Short-term the increase in
489869105.971.00%257943618.510.56%0.44%
loan discounts for
bills
Mainly due to
the deferred
Contract income arising
997166396.052.04%1219548011.882.64%-0.60%
liabilities from product
sales revenue
and project
212023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
payments
received in
advance in the
current period
Long-term No major
402000000.000.82%453825000.000.98%-0.16%
loan changes.Lease No major
193897179.100.40%196340654.270.42%-0.02%
Liabilities changes.
2. Major overseas assets
□ Applicable □ Not applicable
3. Assets and liabilities measured at fair value
□ Applicable □ Not applicable
Unit: RMB
Changes in fair Purchase Sales
Cumulative Impairment
At the beginning value gains amount amount
fair value loss of the Other At the end of the
Item of the reporting and losses in of the of the
changes in reporting variations reporting period
period the current reporting reporting
equity period
period period period
Financial
Assets
1. Trading
financial
assets
（derivativefinancial
assetsexcluded）
2. Other
non-current
931043130.33133060297.91314844890.021378948318.26
financial
assets
3.
Receivables 679441917.62 -86624733.14 592817184.48
financing
4. Others 1470000.00 1470000.00
Financial
assets 1611955047.95 133060297.91 228220156.88 1973235502.74
subtotal
Financial
26652319.25-2138038.5024514280.75
liabilities
Are there any significant changes in the measurement attributes of the company's main assets during the reporting
period?
□ Yes □ No
4. Restrictions on asset rights as of the end of the reporting period
As of June 30 2023 restricted assets of the Company are as follows:
Item Closing balance (RMB) Cause of restrictions
Guarantee letter security deposit and
Cash and Bank Balances 116444661.11
other restricted funds
Pledge used to issue bank
Notes receivable and receivables acceptance bills and endorsed
925505845.85
financing or discounted notes not
derecognized
Long-term Receivables 122659963.34 Pledge for bank borrowings
Non-current Assets Due within 1
28239667.72 Pledge for bank borrowings
Year
222023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Total 1192850138.02
VI. Investment Analysis
1. Overview
□ Applicable □ Not applicable
Investment in the Reporting Period Investment for the same Period of
Rate of Change
(RMB) Last Year
2707295505.00191467784.851313.97%
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”
4. Financial assets investment
(1). Securities investment
□ Applicable □ Not applicable
No such case as securities investment during the reporting period.
(2). Derivatives investment
□ Applicable □ Not applicable
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
gains and fair value Closing
derivatives investment during the the company’s
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 213.80 189168.27 154008.13 90301.63 2.79%
contract
Total 213.80 189168.27 154008.13 90301.63 2.79%
Explanation of whether the Company’s The Company calculated and presented its foreign exchange derivatives
hedging business accounting policies and trading business in accordance with Accounting Standards for Business
specific accounting principles have Enterprises No. 22 - Recognition and Measurement of Financial
232023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
changed significantly during the reporting Instruments Accounting Standards for Business Enterprises No. 37 -
period compared with the previous Presentation of Financial Instruments and other relevant provisions. Held-
reporting period for-trading financial assets/held-for-trading financial liabilities were
adopted for initial and subsequent measurements of the foreign exchange
contracts. The fair values of the foreign exchange contracts were
basically determined by referencing the different parameters of the
financial institutions based on the then market conditions as well as the
remaining term and duration of transaction so as to be recognized as the
held-for-trading financial assets or held-for-trading financial liabilities.There was no 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 The actual profit and loss amounted to RMB -34387600 during the
during the reporting period reporting period.The Company carried out foreign exchange hedging business
Descriptions of the effect of hedging appropriately as the case may be which could effectively reduce the risks
in foreign exchange market and avoid exchange rate fluctuation risks.Sources of funds for derivatives
Equity Fund
investment
Risk analysis and description of control
For details of risk analysis and control measures please refer to the
measures for derivatives positions during
"Announcement on Conducting Foreign Exchange Hedging Transactions"
the reporting period (including but not
(Announcement No. 2023-030) which was disclosed by the Company on
limited to market risk liquidity risk credit
April 28 2023.risk operational risk legal risk etc.)
The Company recognized and measured its foreign exchange hedging
business in accordance with Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial
Changes in market prices or product fair
Instruments Accounting Standards for Business Enterprises No. 37 -
value of invested derivatives during the
Presentation of Financial Instruments and other relevant provisions. The
reporting period and the analysis of the
fair values of foreign exchange forward contracts were basically
fair value of derivatives should disclose
measured and recognized by referencing the different parameters of the
the specific methods used and the setting
financial institutions based on the then market conditions as well as the
of related assumptions and parameters.remaining term and duration of the transaction. The profit from fair value
change of foreign exchange contracts was RMB 2.138 million during the
reporting period.Litigation involved (if applicable) N/A
Disclosure date of board of directors'
announcement on the approval of April 28 2023
derivatives investment (if any)
Disclosure date of shareholder meeting's
announcement on the approval of May 27 2023
derivatives investment (if any)
Independent directors' special opinions For details please refer to the "Independent Opinions of Independent
on the Company's derivatives investment Directors on Related Matters" disclosed by the Company on April 28
and risk control 2023.
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.
5. Utilization of raised funds
□ Applicable □ Not applicable
(1) Utilization of raised funds
□ Applicable □ Not applicable
242023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Unit: RMB ten thousand
Percenta
Amou
Aggregat ge of the
Aggregat Amount nt of
The e amount aggregat
e of funds Purpose funds
amount of funds e amount
Year Way amount raised in Amount and use raised
Total of funds raised as of funds
of of of funds the of funds of the put
amount raised of the raised as
fund- fund- raised current raised funds aside
of funds used in current of the
raisin raisin used as period not yet raised for
raised the period current
g g of the that were used not yet more
current that were period
current repurpos used than
period repurpos that were
period ed two
ed repurpos
years
ed
Non-
public
Deposit
offeri 508983. 322380. 322380. 188205.
2023 0 0 0.00% ed in 0
ng of 26 17 17 31
banks
share
s
508983.322380.322380.188205.
Total -- 0 0 0.00% -- 0
26171731
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 293103400 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 5099999160.00 and
after deducting RMB 10166575.28 (excluding VAT) the cost associated with issuance the actual net amount of funds
raised is RMB 5089832584.72 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 3223801700 (including RMB 2156868200 invested in advance) received
RMB 16022200 of net interest income from banks and as of June 30 2023 the balance of unused raised funds is
RMB 1882053100 (excluding RMB 1272800 of unpaid issuance fees).
(2) Projects with pledged investments using raised funds
□ Applicable □ Not applicable
Unit: RMB ten thousand
Projects
with
pledged Whethe
investm r the Investm
Cumula The Whethe Whethe
ents projects ent
Total Amount tive date the r r there
and have progres Benefits
pledged Total Investe investm project expecte are
investm been s as of realized
investm adjuste d in the ents as reaches d major
ent change the end during
ents d Current of the its benefits change
directio d of the
using investm Reporti end of intende have s in
ns of (includi reportin reportin
raised ents (1) ng reportin d been project
excess ng g period g period
funds Period g period usable achieve feasibilit
funds partial (3)=(2)/(
(2) status d y
due to change 1)
oversub s)
scriptio
n
Projects with pledged investments
Project
Not
of 92990. 92990. 92990. 92990. 100.00 3009.7
No 2023 applica No
Smart 00 00 00 00 % 4
ble.IoT
252023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Solution
R & D
and
Industri
alizatio
n
The
phase II
constru
ction
project
Not Not
of the 77580. 77580. 62981. 62981.No 81.18% 2024 applica applica No
smart 00 00 78 78
ble. ble.manufa
cturing
base in
Hangzh
ou
Constru
ction
Not Not
Project 88960. 88960. 53260. 53260.No 59.87% 2026 applica applica For
of Xi'an 00 00 17 17
ble. ble. details
R & D
refer to
Center
the
New
notes
project
on
of
major
Southw
change
est Not Not
100470 100470 10237. 10237. s in
R&D No 10.19% 2026 applica applica.00 .00 23 23 project
Center ble. ble.feasibilit
of
y
Dahua
Co.Ltd.Repleni
shment Not Not Not
148983148983102910102910
of No 69.08% applica applica applica No.26.26.99.99
working ble. ble. ble.capital
Subtota
ls for
projects
5089835089833223803223803009.7
with -- -- -- -- --.26.26.17.174
pledged
investm
ents
Investment directions of excess funds due to oversubscription
N/A
5089835089833223803223803009.7
Total -- -- -- -- --.26.26.17.174
Explain the circumstances
and reasons for failing to
achieve the planned Due to the uneven benefits of smart IoT solution R&D and industrialization projects
progress and expected around the year whether the expected benefits can be achieved will be measured
benefits for each project after an entire year. The phase-2 project of Smart manufacturing base in Hangzhou is
(including the reasons for still under construction and there was no corresponding expected benefit in this
selecting "Not applicable" for reporting period."Whether expected benefits
have been achieved")
Since the start of the Company's fundraising and investment projects at the beginning
of 2021 the macroeconomic and external market environment has undergone great
Notes on major changes in changes and for some uncompleted fundraising and investment projects the
project feasibility Company is still evaluating the investment directions and schedules of relevant
fundraising and investment projects based on factors such as external environment
corporate strategy and investment benefits. If subsequent adjustments are made the
262023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
review and disclosure procedures will be performed in a timely manner in accordance
with relevant regulations.The amount purpose and
progress of the use of the
Not applicable.excess funds due to
oversubscription
Changes of the
implementation location of
Not applicable.the projects using raised
funds
Applicable
Such cases happened during the reporting period
Changes of the On May 19 2023 the 43rd meeting of the seventh session of the board of directors
implementation method of and the 30th meeting of the 7th session of the Board of Supervisors were held to
the projects using raised deliberate and approve the "Proposal on Increasing the Implementation Entities of
funds Some Fundraising and Investment Projects" agreeing to add Chengdu Dahua Zhilian
Information Technology Co. Ltd. a wholly-owned subsidiary as one of the
implementation entities of the "New Construction Project for Dahua Southwest R&D
Center".Applicable
On May 19 2023 the 43rd meeting of the 7th Board of Directors and the 30th
Advance investments and meeting of the 7th Board of Supervisors were held to deliberate and approve the
replacements of raised funds "Proposal on Replacing Self-Financing Funds Pre-invested in Fundraising Projects
in projects and Payment of Issuance Expenses with Raised Funds" agreeing that the Company
would use the raised funds to replace the self-financing funds pre-invested in
fundraising projects and pre-paid issuance expenses totaling RMB 215908.93 million.Temporary replenishment of
working capital with idle Not applicable.raised funds
The amount and reasons for
the balance of funds raised
Not applicable.in the implementation of the
project
The intended use and The unused raised funds are deposited in the special account of the raised funds
disposal of the unused funds opened by the Company and will be used for the subsequent payment of projects
raised using the funds raised.Problems or other
circumstances in the use and
N/A
disclosure of the funds
raised
(3) Change of projects that use raised funds
□ Applicable □ Not applicable
There is no change of projects that use raised funds in the reporting period
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.
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%.
272023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Unit: RMB
Registe
Company Company Main Total Net Operating Operating
red Net Profit
Name Type businesses Assets Assets revenue Profit
Capital
Design
construction
and installation
of construction
projects;
technology
development
services
consultation
and transfer;
development
manufacturing
Zhejiang
installation and
Dahua
marketing of 50000 -
System Subsidiary 362386 1245654 4093317 239959.6
electronic 0000.0 1253179
Engineeri Company 4337.22 436.81 64.22 1
products 0 2.49
ng Co.safety
Ltd.equipment and
communicatio
n devices;
manufacturing
and marketing
of computer
hardware and
software;
import and
export of
goods and
technologies
Technology
development
services
consultation
and transfer;
manufacturing
marketing and
system
services of
computer
hardware and
software;
Zhejiang design
Dahua development
13068211252
Vision Subsidiary manufacturing 2553627 9803988 2197929 1878858
10000.46871.9
Technolo Company and marketing 693.83 813.24 28.45 48.26
009
gy Co. of electronic
Ltd. products and
safety
equipment;
marketing and
technical
services of
IOT
equipment;
warehousing
services
bonded
warehouse
operation
Zhejiang Technology 11100
Subsidiary 684360 1543911 3102609 8931309 6711880
Dahua development 00000.Company 8380.27 552.09 372.48 9.99 0.18
Zhilian services 00
282023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Co. Ltd. consultation
and transfer;
manufacturing
and marketing
of computer
hardware and
software;
development
manufacturing
and marketing
of electronic
products and
electronic
components
safety
equipment and
communicatio
n devices;
leasing of self-
owned
houses;
warehousing
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
management and performance
period
No significant impact on overall
Zhejiang Huajian Technology Co.Equity purchase production operation and
Ltd.performance
No significant impact on overall
Dahua Technology Belgium BV Established with investment production operation and
performance
No significant impact on overall
Dahua Technology Regional
Established with investment production operation and
Headquarters
performance
No significant impact on overall
Dahua Technology Azerbaijan LLC Established with investment production operation and
performance
No significant impact on overall
Dahua Technology Vietnam
Established with investment production operation and
Company Limited
performance
IX. Structured Entity Controlled by the Company
□ Applicable □ Not applicable
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
292023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 AI video cloud 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 network communications cloud computing big data and
AI among other technologies as well as the upgrades of smartphone 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 capitals 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) 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.
(5) 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.
(6) 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
302023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.
(7) 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 trade protection (e.g.FCC ban in the U.S.) and political situations (e.g. local wars) 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.
(8) Risk of the supply chain: The Company comprehensively reviews all kinds of potential risks in the supply chain and
strengthens the ability of continuous safe supplies of key materials to ensure supply chain security by developing
backup solutions and building rich channels with diversified supply sources.
312023 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 Conference
Conference Session Investors
Type Conference Disclosure Resolution
Involved
Resolution of the
First Extraordinary First
Extraordinary
General Meeting of Extraordinary
General 39.75% March 6 2023 March 7 2023
Shareholders in General Meeting
Meeting
2023 of Shareholders
in 2023
Resolution of the
2022 Annual Annual
2022 Annual
General Meeting of General 52.63% May 26 2023 May 27 2023
General Meeting
Shareholders Meeting
of Shareholders
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 Causes
Electing an additional
Zhao Yuning Director Elected March 6 2023
director
III. Profit Distribution and Capital Reserve Converted to Share Capital in the
Reporting Period
□ Applicable □ Not applicable
The Company plans not to pay cash dividends or bonus shares or convert capital reserve into share capital in the first
half of 2023.IV. Implementation of the Company's Equity Incentive Plan Employee Stock
Ownership Plan or Other Employee Incentive Measures
□ Applicable □ Not applicable
1. Equity incentive
In 2022 with the approval of the Company's Board of Directors the Board of Supervisors and 2021 Annual General
meeting of shareholders the Company implemented the 2022 Stock Options and Restricted Stock Incentive Plan
(hereinafter referred to as the "2022 Incentive Plan").
322023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) On April 27 2023 the Company held the 42nd meeting of the 7th Board of Directors and the 29th meeting of the
7th Board of Supervisors at which the “Proposal on Cancellation of Some Stock Options of 2022 Stock Options andRestricted Stock Incentive Plan" and the "Proposal on Repurchase of some Restricted Stock Options of 2022 Stock
Options and Restricted Stock Incentive Plan" were deliberated and approved agreeing to cancel/repurchase of stock
options/restricted stock that did not meet the conditions to exercise/cancel the restriction. The independent directors of
the Company provided independent opinions and the lawyers issued legal opinions.
(2) On May 26 2023 the Company held the 2022 Annual General Meeting of Shareholders at which the "Proposal onCancellation of Some Restricted Shares of 2022 Stock Options and Restricted Stock Incentive Plan” were deliberated
and approved and relevant capital reduction was announced. Upon review and confirmation by the Shenzhen Branch
of China Securities Depository and Clearing Co. Ltd. the Company completed and disclosed the cancellation of the
aforementioned restricted stock repurchase on August 15 2023. On June 7 2023 the Company released the
"Announcement on the Completion of the Cancellation of some Stock Options" and canceled the stock options that did
not meet exercise conditions.
(3) On June 16 2023 the Company held the 44th meeting of the 7th Board of Directors and the 31st meeting of the
7th Board of Supervisors at which the "Proposal on the Company's 2022 Stock Option and Restricted Stock Incentive
Plan (Revised Draft) and its Summary" and the "Proposal on the Assessment Management Measures for the
Company's 2022 Stock Option and Restricted Stock Incentive Plan (Revised)" were deliberated and approved. The
Company proposed to revise the 2023 and 2024 company-level performance indicators in the 2022 Incentive Plan
and the relevant amendments are yet to be submitted to the shareholders' meeting for consideration.
2. Implementation of employee stock ownership plan
□ Applicable □ Not applicable
3. Other employee incentive measures
□ Applicable □ Not applicable
332023 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
II. Social Responsibilities
In 2023 the Company will continue to adhere to the core concept of "Customer-centered and striving for the goal"
and practice the mission of "enabling a safer society and smarter living" and come up with innovative ways to facilitate
pollution prevention and control through digital intelligence. The Company has enhanced forest fire prevention
efficiency through a variety of fire monitoring and perception technologies built an all-round perception system to
protect arable land helped upgrade elderly care services and make them become more considerate and reduced
carbon emissions through science and technology. The Company has been working on scenarios with quantifiable and
measurable value while optimizing clients’ security systems improving their production efficiency assisting their
business management and facilitating the digital upgrade of thousands of industries. Meanwhile the Company has
continuously optimized governance systems and governance efficiency. With an efficient reasonable decision-making
mechanism a supervision mechanism of checks and balances and a stable and long-term incentive mechanism we
have ensured the healthy stable and sustainable development of the Company.
342023 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.
352023 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
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 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
For details see "7. Other significant related-party transactions" in this section.
4. Related-party creditor's rights and debts
□ Applicable □ Not applicable
No such case as related credits and debts during the reporting period.
5. Transactions with related financial companies
□ Applicable □ Not applicable
No deposit loan credit or other financial business between the Company and the related financial company and the
related parties.
6. Transactions between the financial company controlled by the Company and the related
parties
□ Applicable □ Not applicable
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
362023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
1. On February 17 2023 the "Proposal on Proposed Increase of Capital by Some Senior Managers and Core
Employees of the Company to the Spin-off Subsidiaries and Related Transactions" was reviewed and approved at the
39th session of the 7th Board of Directors and the 27th session of the 7th Board of Supervisors. It has been agreed
that some senior managers and core employees of the Company can increase the capital of RMB 6049190(where
the registered capital was increased by RMB 1675676 and the balance was included in the capital reserves) to the
holding subsidiary Zhejiang HuaRay Technology Co. Ltd.(hereinafter referred to as “HuaRay Technology”). 11 natural
persons consisting of senior managers including Zhao Yuning Zhu Jiantang etc. increased directly the capital by RMB
4839353 in total. After this capital increase the equity of the Company in HuaRay Technology will be changed from
42.228% to 41.0878% and HuaRay Technology will still be a holding subsidiary of the Company covered by the
Company’s consolidated statements.
2. On March 17 2023 the "Proposal on Capital Increase and Share Expansion in the Holding Subsidiary to
Introduce Investors and Related Transactions" was reviewed and approved at the 40th session of the 7th Board of
Directors held by the Company. It has been agreed that the holding subsidiary HuaRay Technology can introduce
through capital increase and share expansion a total of 8 investors including Yibin Lvneng Equity Investment
Partnership (Limited Partnership) and Zhu Jiangming. The Investors will increase the monetary capital of HuaRay
Technology by RMB 260000061 (where RMB 8934710 is taken as the new registered capital and the balance is
included in the capital reserves) and obtain a total of 12.58% equity in HuaRay Technology after the capital increase.After this capital increase the equity of the Company in HuaRay Technology will be changed from 41.0878% to
35.9171% and HuaRay Technology will still be a holding subsidiary of the Company covered by the Company’s
consolidated statements.
3. On April 7 2023 the "Proposal on Giving up the Subsidiary's Right of First Refusal(ROFR) and Related-party
Transactions" was reviewed and approved at the 41st meeting of the 7th Board of Directors where Zhejiang Huashi
Investment Management Co. Ltd. the shareholder of Zhejiang Huaxiao Technology Co. Ltd.(hereinafter referred to
as "Huaxiao Technology") transferred its 20% equity to Huaxiao's employee stock ownership platform and core
management-level staff and the Board of Directors agreed that the Company may give up the right of first refusal.
4. On April 7 2023 the Company held the 41st meeting of the 7th Board of Directors and the 28th mee ting of the
7th Board of Supervisors at which the "Proposal on the Implementation of Equity Incentive and Related Transactions
of Controlled Subsidiaries" was deliberated and approved agreeing that Hangzhou Huacheng Network Technology
Co. Ltd. (hereinafter referred to as "Huacheng Network") one of the Company's controlled subsidiaries would
propose to offer stock option incentives to its directors supervisors and management and core employees by means
of capital increase. Among them the Company's director Zhao Yuning supervisor Zheng Jieping and senior
executives Liu Ming Zhu Jiantang Li Zhijie Xu Zhicheng Wu Jian Song Ke Xu Qiaofen etc. injected RMB
7881049.75 into Huacheng Network (an increase in registered capital of RMB 2236316). After this stock option
372023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
incentives the equity of the Company in Huacheng Network was changed from 51% to 44.61% and Huacheng
Network is still a holding subsidiary of the Company covered by the Company's consolidated statements.
5. On June 25 2023 the Company held the 45th meeting of the 7th Board of Directors and the 32nd meeting of
the 7th Board of Supervisors at which the "Proposal on Capital Increase and Implementation of Equity Incentive and
Related Transactions of Controlled Subsidiaries" was deliberated and approved and agreeing that Zhejiang Huagan
Technology Co. Ltd. ("Huagan Technology") one of the Company's controlled subsidiaries would injected RMB
539.8647 million into Huagan Technology (an increase in registered capital of RMB 281.09169 million) based on the
value of its the thermal imaging business and related assets. At the same time Huagan Technology offered incentives
to some directors supervisors senior executives core employees and their core management team through capital
increase and the issue price is RMB 1 / registered capital.Website for disclosing the interim report on significant related-party transactions
Announcement name Disclosure date Website for the disclosure
Announcement on Proposed
Increase of Capital by Some Senior
Managers and Core Employees of Juchao Information Network
February 18 2023
the Company to the Spin-off http://www.cninfo.com.cn/
Subsidiaries and Related
Transactions
Announcement on Capital Increase
and Share Expansion in the Holding Juchao Information Network
March 21 2023
Subsidiary to Introduce Investors and http://www.cninfo.com.cn/
Related Transactions
Announcement on Giving up the
Subsidiary's Right of First Juchao Information Network
April 8 2023
Refusal(ROFR) and Related-party http://www.cninfo.com.cn/
Transactions
Announcement on Implementation of
Equity Incentive and Related Juchao Information Network
April 8 2023
Transactions of the Controlled http://www.cninfo.com.cn/
Subsidiaries
Announcement on Capital Increase
and Implementation of Equity Juchao Information Network
June 27 2023
Incentive and Related Transactions http://www.cninfo.com.cn/
of Controlled Subsidiaries
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.
382023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Leasing
□ Applicable □ Not applicable
Explanations on leases
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)
Guar
Announc
ante
ement
e for
date of Actual Actual Type of Due
Guarantee Term of relat
Guaranteed party disclosur occurrence guarantee guarant or
amount guarantee ed
e of the date amount ee not
parti
guarante
es or
e cap
not
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
guarantees approved by the
at the end of the
end of the reporting period (A3)
reporting period (A4)
Company's guarantees to subsidiaries
Guar
Announc
ante
ement
e for
date of Actual Actual Type of Due
Guarantee Term of relat
Guaranteed party disclosur occurrence guarantee guarant or
amount guarantee ed
e of the date amount ee not
parti
guarante
es or
e cap
not
Three years
Joint
after the maturity
June 10 liability
30000.00 of the debts in Yes No
2022 guarant
the master
ee
contract
Zhejiang Dahua From effective
April 28
Vision Technology 840000.00 date of the
2023
Co. Ltd. Joint Commitment
June 10 liability Letter to three
20000.00 Yes No
2022 guarant years after the
ee maturity date of
each note
discounted by
392023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
the China
Merchants Bank
within the credit
extension period
From effective
date of the
Commitment
Letter to three
years after the
Joint
maturity date of
June 9 liability
20000.00 each note Yes No
2023 guarant
discounted by
ee
the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
Joint Two years after
October liability the maturity of
22000.00 No No
13 2017 guarant the debts in the
ee master contract
Joint Two years after
28903.20
September liability the maturity of
(USD 40 No No
21 2018 guarant the debts in the
million)
ee master contract
Joint
From April 7
April 7 liability
53000.00 2020 to March No No
2020 guarant
312024
ee
Joint Two years after
August 12 liability the maturity of
60000.00 No No
2020 guarant the debts in the
ee master contract
Joint Two years after
August 18 liability the maturity of
33000.00 No No
2020 guarant the debts in the
ee master contract
Joint Five years upon
September liability expiration of
30000.00 No No
1 2020 guarant debt period of
ee master contract
Three years
Joint
after the maturity
February liability
100000.00 of the debts in No No
4 2021 guarant
the master
ee
contract
Three years
Joint
after the maturity
July 26 liability
44000.00 of the debts in No No
2021 guarant
the master
ee
contract
Joint
From August 1
August 1 liability
3500.00 2021 to July 31 No No
2020 guarant
2023
ee
Three years
Joint
after the maturity
September liability
90000.00 of the debts in No No
27 2021 guarant
the master
ee
contract
Three years
Joint
after the maturity
October liability
20000.00 of the debts in No No
20 2021 guarant
the master
ee
contract
July 22 Joint Three years
20000.00 No No
2022 liability after the maturity
402023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
guarant of the debts in
ee the master
contract
Three years
Joint
after the maturity
July 25 liability
35000.00 of the debts in No No
2022 guarant
the master
ee
contract
Joint From September
September liability 19 2022 to
60000.00 No No
19 2022 guarant September 18
ee 2024
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
Joint Branch of China
June 9 liability Merchants Bank
40000.00 No No
2023 guarant or the advance
ee 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
Joint maturity date of
June 25 liability each note
20000.00 No No
2023 guarant discounted by
ee the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
Joint One years upon
43354.80
April 29 liability expiration of
(USD 60 Yes No
2022 guarant debt period of
million)
Zhejiang Dahua April 28 ee master contract
270000.00
Zhilian Co. Ltd. 2023 Joint
39741.90 From May 14
May 14 liability
(USD 55 2022 to May 14 Yes No
2022 guarant
million) 2023
ee
412023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Three years
Joint
after the maturity
June 10 liability
16000.00 of the debts in Yes No
2022 guarant
the master
ee
contract
From effective
date of the
Commitment
Letter to three
Joint years after the
June 10 liability maturity date of
16000.00 Yes No
2022 guarant each note
ee discounted by
the China
Merchants Bank
within the credit
extension period
Joint
15896.76 From November
November liability
(USD 22 16 2022 to May Yes No
16 2022 guarant
million) 14 2023
ee
From effective
date of the
Commitment
Letter to three
years after the
Joint
maturity date of
June 9 liability
16000.00 each note Yes No
2023 guarant
discounted by
ee
the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
Joint Two years after
September liability the maturity of
30000.00 No No
24 2020 guarant the debts in the
ee master contract
Three years
Joint
after the maturity
July 26 liability
16500.00 of the debts in No No
2021 guarant
the master
ee
contract
Three years
Joint
after the maturity
November liability
20000.00 of the debts in No No
10 2021 guarant
the master
ee
contract
Joint From December
3612.9
December liability 3 2021 to
(USD 5 No No
3 2021 guarant December 2
million)
ee 2024
Joint From March 25
March 25 liability 2022 to
8000.00 No No
2022 guarant December 31
ee 2023
Joint One years upon
April 29 liability expiration of
1000.00 No No
2022 guarant debt period of
ee master contract
Joint
From August 25
August 25 liability
20000.00 2022 to August No No
2022 guarant
252025
ee
Joint From September
September
15000.00 liability 19 2022 to No No
192022
guarant September 18
422023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
ee 2024
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
Joint Branch of China
June 9 liability Merchants Bank
16000.00 No No
2023 guarant or the advance
ee 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
June 19 liability June 19 2023-
12000.00 No No
2023 guarant June 18 2024
ee
Joint
June 19 liability June 19 2023-
35000.00 No No
2023 guarant June 18 2024
ee
Three years
Joint
after the maturity
June 10 liability
4000.00 of the debts in Yes No
2022 guarant
the master
ee
contract
From effective
date of the
Commitment
Letter to three
Joint years after the
Zhejiang Dahua
June 10 liability maturity date of
System April 28 4000.00 Yes No
30000.00 2022 guarant each note
Engineering Co. 2023
ee discounted by
Ltd.the China
Merchants Bank
within the credit
extension period
Joint Two years after
August 30 liability the maturity of
1000.00 No No
2019 guarant the debts in the
ee master contract
November Joint Three years
6000.00 No No
10 2021 liability after the maturity
432023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
guarant of the debts in
ee the master
contract
Three years
Joint
after the maturity
July 25 liability
5000.00 of the debts in No No
2022 guarant
the master
ee
contract
Joint
From August 25
August 25 liability
500.00 2022 to August No No
2022 guarant
252025
ee
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
Joint Branch of China
June 9 liability Merchants Bank
4000.00 No No
2023 guarant or the advance
ee 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
1445.16 From March 25
March 25 liability
(USD 2 2022 to March Yes No
2022 guarant
million) 25 2023
Dahua Technology April 28 ee
60000.00
(HK) Limited 2023 Joint
1445.16 From April 21
April 21 liability
(USD 2 2023 to April 21 No No
2023 guarant
million) 2024
ee
Joint
722.58 September 1
September liability
(USD 1 2021-December No No
DAHUA 1 2021 guarant
million) 1 2023
TECHNOLOGY April 28 ee
8000.00
MEXICO S.A. DE 2023 Joint From October
3612.90
C.V October liability 21 2022 to
(USD 5 No No
21 2022 guarant October 20
million)
ee 2023
Hangzhou Joint Two years after
Huacheng Network April 28 August 30 liability the maturity of
17000.00 5000.00 No No
Technology Co. 2023 2019 guarant the debts in the
Ltd. ee master contract
442023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Three years
Joint
after the maturity
July 26 liability
5500.00 of the debts in No No
2021 guarant
the master
ee
contract
Joint
From August 25
August 25 liability
6500.00 2022 to August No No
2022 guarant
252025
ee
Joint August 12 2020
1060.61
Dahua Technology April 28 August 12 liability - Signature of
2000.00 (GBP 1.16 No No
UK Limited 2023 2020 guarant notice of
million)
ee termination
From effective
date of the
Commitment
Letter to three
Joint years after the
June 10 liability maturity date of
1000.00 Yes No
2022 guarant each note
ee discounted by
the China
Merchants Bank
within the credit
extension period
From effective
date of the
Commitment
Letter to three
years after the
Joint
maturity date of
June 9 liability
1000.00 each note Yes No
2023 guarant
discounted by
ee
Zhejiang Huayixin the Hangzhou
April 28
Technology Co. 4500.00 Branch of China
2023
Ltd. Merchants Bank
within the credit
extension period
Three years
Joint
after the maturity
April 29 liability
1000.00 of the debts in No No
2022 guarant
the master
ee
contract
Three years
Joint
1445.16 after the maturity
May 16 liability
(USD 2 of the debts in No No
2022 guarant
million) the master
ee
contract
Joint
From August 25
August 25 liability
200.00 2022 to August No No
2022 guarant
252025
ee
Joint From October
October liability 21 2022 to
800.00 No No
21 2022 guarant September 18
ee 2024
From effective
date of the
Commitment
Letter to three
Joint
Zhejiang Fengshi years after the
April 28 June 10 liability
Technology Co. 15000.00 2000.00 maturity date of Yes No
2023 2022 guarant
Ltd. each note
ee
discounted by
the China
Merchants Bank
within the credit
452023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
extension period
From effective
date of the
Commitment
Letter to three
years after the
Joint
maturity date of
June 9 liability
2000.00 each note Yes No
2023 guarant
discounted by
ee
the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
Joint
From August 25
August 25 liability
10000.00 2022 to August No No
2022 guarant
252025
ee
Joint From October
October liability 21 2022 to
2000.00 No No
21 2022 guarant September 18
ee 2024
From the start of
the guarantee
period to three
years after the
Joint maturity date of
June 25 liability each note
2000.00 No No
2023 guarant discounted by
ee the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
From effective
date of the
Commitment
Letter to three
Joint years after the
June 10 liability maturity date of
1000.00 Yes No
2022 guarant each note
ee discounted by
the China
Merchants Bank
within the credit
extension period
From effective
date of the
Jiangsu Huaruipin
April 28 Commitment
Technology Co. 4500.00
2023 Letter to three
Ltd.years after the
Joint
maturity date of
June 9 liability
1000.00 each note Yes No
2023 guarant
discounted by
ee
the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
Three years
Joint
after the maturity
October liability
1000.00 of the debts in No No
20 2021 guarant
the master
ee
contract
462023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Joint
From August 25
August 25 liability
800.00 2022 to August No No
2022 guarant
252025
ee
Joint From October
October liability 21 2022 to
1500.00 No No
21 2022 guarant September 18
ee 2024
From effective
date of the
Commitment
Letter to three
Joint years after the
June 10 liability maturity date of
1000.00 Yes No
2022 guarant each note
ee discounted by
the China
Merchants Bank
within the credit
extension period
From effective
date of the
Commitment
Zhejiang Huaxiao Letter to three
April 28
Technology Co. 2000.00 years after the
2023 Joint
Ltd. maturity date of
June 9 liability
1000.00 each note Yes No
2023 guarant
discounted by
ee
the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
Joint
From August 25
August 25 liability
200.00 2022 to August No No
2022 guarant
252025
ee
Joint From October
October liability 21 2022 to
800.00 No No
21 2022 guarant September 18
ee 2024
From effective
date of the
Commitment
Letter to three
Joint years after the
June 10 liability maturity date of
5000.00 Yes No
2022 guarant each note
ee discounted by
the China
Merchants Bank
within the credit
Xi'an Dahua Zhilian extension period
April 28
Technology Co. 20000.00 From effective
2023
Ltd. date of the
Commitment
Letter to three
years after the
Joint
maturity date of
June 9 liability
5000.00 each note Yes No
2023 guarant
discounted by
ee
the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
472023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Joint
From August 25
August 25 liability
10000.00 2022 to August No No
2022 guarant
252025
ee
Joint From October
October liability 21 2022 to
2500.00 No No
21 2022 guarant September 18
ee 2024
From the start of
the guarantee
period to three
years after the
Joint maturity date of
June 25 liability each note
5000.00 No No
2023 guarant discounted by
ee the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
From effective
date of the
Commitment
Letter to three
Joint years after the
June 10 liability maturity date of
5000.00 Yes No
2022 guarant each note
ee discounted by
the China
Merchants Bank
within the credit
extension period
From effective
date of the
Commitment
Letter to three
years after the
Joint
maturity date of
June 9 liability
5000.00 each note Yes No
Zhengzhou Dahua 2023 guarant
discounted by
Zhian Information April 28 ee
10000.00 the Hangzhou
Technology Co. 2023
Branch of China
Ltd.Merchants Bank
within the credit
extension period
Joint
From August 25
August 25 liability
3000.00 2022 to August No No
2022 guarant
252025
ee
From the start of
the guarantee
period to three
years after the
Joint maturity date of
June 25 liability each note
5000.00 No No
2023 guarant discounted by
ee the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
From effective
Chengdu Dahua Joint date of the
Zhian Information April 28 June 10 liability Commitment
15000.00 10000.00 Yes No
Technology Service 2023 2022 guarant Letter to three
Co. Ltd. ee years after the
maturity date of
482023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
each note
discounted by
the China
Merchants Bank
within the credit
extension period
From effective
date of the
Commitment
Letter to three
years after the
Joint
maturity date of
June 9 liability
8000.00 each note Yes No
2023 guarant
discounted by
ee
the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
From the start of
the guarantee
period to three
years after the
Joint maturity date of
June 25 liability each note
8000.00 No No
2023 guarant discounted by
ee the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
From effective
date of the
Commitment
Letter to three
Joint years after the
June 10 liability maturity date of
1000.00 Yes No
2022 guarant each note
ee discounted by
the China
Merchants Bank
within the credit
extension period
From effective
date of the
Commitment
Changsha Dahua Letter to three
April 28
Technology Co. 8000.00 years after the
2023 Joint
Ltd. maturity date of
June 9 liability
1000.00 each note Yes No
2023 guarant
discounted by
ee
the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
Joint
From August 25
August 25 liability
3000.00 2022 to August No No
2022 guarant
252025
ee
Joint From October
October liability 21 2022 to
2000.00 No No
21 2022 guarant September 18
ee 2024
492023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
From the start of
the guarantee
period to three
years after the
Joint maturity date of
June 25 liability each note
1000.00 No No
2023 guarant discounted by
ee the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
From effective
date of the
Commitment
Letter to three
Joint years after the
June 10 liability maturity date of
500.00 Yes No
2022 guarant each note
ee discounted by
the China
Merchants Bank
within the credit
extension period
From effective
Zhejiang Pixfra date of the
April 28
Technology Co. 1000.00 Commitment
2023
Ltd. Letter to three
years after the
Joint
maturity date of
June 9 liability
500.00 each note Yes No
2023 guarant
discounted by
ee
the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
Joint
From August 25
August 25 liability
500.00 2022 to August No No
2022 guarant
252025
ee
From effective
date of the
Commitment
Letter to three
Joint years after the
June 10 liability maturity date of
500.00 Yes No
Zhejiang Huafei 2022 guarant each note
Intelligent April 28 ee discounted by
700.00
Technology CO. 2023 the China
LTD. Merchants Bank
within the credit
extension period
Joint
From August 25
August 25 liability
200.00 2022 to August No No
2022 guarant
252025
ee
From effective
date of the
Commitment
Joint Letter to three
Zhejiang Huajian
April 28 June 10 liability years after the
Technology Co. 1000.00 500.00 Yes No
2023 2022 guarant maturity date of
Ltd.ee each note
discounted by
the China
Merchants Bank
502023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
within the credit
extension period
From effective
date of the
Commitment
Letter to three
years after the
Joint
maturity date of
June 9 liability
500.00 each note Yes No
2023 guarant
discounted by
ee
the Hangzhou
Branch of China
Merchants Bank
within the credit
extension period
Joint
From August 25
August 25 liability
200.00 2022 to August No No
2022 guarant
252025
ee
From effective
date of the
Commitment
Letter to three
Joint years after the
June 10 liability maturity date of
500.00 Yes No
2022 guarant each note
Hangzhou Xiaohua
April 28 ee discounted by
Technology CO. 700.00
2023 the China
LTD.Merchants Bank
within the credit
extension period
Joint
From August 25
August 25 liability
200.00 2022 to August No No
2022 guarant
252025
ee
Zhejiang Dahua Joint
From August 25
Security Network April 28 August 25 liability
500.00 500.00 2022 to August No No
Operation Service 2023 2022 guarant
252025
Co. Ltd. ee
Zhejiang Dahua
April 28
Jinzhi Technology 500.00 No such case during the reporting period
2023
Co. Ltd.Guangxi Dahua
Information April 28
500.00 No such case during the reporting period
Technology Co. 2023
Ltd.Guangxi Dahua
April 28
Technology Co. 300.00 No such case during the reporting period
2023
Ltd.Anhui Dahua
Zhilian Information April 28
800.00 No such case during the reporting period
Technology Co. 2023
Ltd.Anhui Dahua
Zhishu Information April 28
800.00 No such case during the reporting period
Technology Co. 2023
Ltd.Chengdu Dahua
Zhilian Information April 28
800.00 No such case during the reporting period
Technology Co. 2023
Ltd.Chengdu Dahua
April 28
Zhishu Information 800.00 No such case during the reporting period
2023
Technology Service
512023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Co. Ltd.Chengdu Huishan
Smart Network April 28
800.00 No such case during the reporting period
Technology Co. 2023
Ltd.Chengdu
Zhichuang Yunshu April 28
800.00 No such case during the reporting period
Technology Co. 2023
Ltd.Hangzhou Fuyang
April 28
Hua'ao Technology 500.00 No such case during the reporting period
2023
Co. Ltd.Henan Dahua
Zhilian Information April 28
800.00 No such case during the reporting period
Technology Co. 2023
Ltd.Hunan Dahua
Zhilong Information April 28
500.00 No such case during the reporting period
Technology Co. 2023
Ltd.Tianjin Dahua
Information April 28
500.00 No such case during the reporting period
Technology Co. 2023
Ltd.Tianjin Huajian
April 28
Technology Co. 200.00 No such case during the reporting period
2023
Ltd.Yiwu Huaxi
April 28
Technology Co. 500.00 No such case during the reporting period
2023
Ltd.Zhejiang Dahua
Intelligent IoT April 28
500.00 No such case during the reporting period
Operation Service 2023
Co. Ltd.Zhejiang Huakong April 28
500.00 No such case during the reporting period
Software Co. Ltd. 2023
Dahua Technology April 28
15000.00 No such case during the reporting period
USA Inc. 2023
Dahua Technology April 28
100.00 No such case during the reporting period
Japan LLC 2023
DAHUA EUROPE April 28
10000.00 No such case during the reporting period
B.V. 2023
Dahua Technology April 28
200.00 No such case during the reporting period
Singapore Pte.Ltd. 2023
Dahua Technology April 28
1000.00 No such case during the reporting period
Poland Sp.Zo.O. 2023
Dahua Technology April 28
1000.00 No such case during the reporting period
Hungary Kft 2023
Dahua Technology
April 28
India Private 2000.00 No such case during the reporting period
2023
Limited
DAHUA
TECHNOLOGY
BRASIL
COMéRCIO E April 28
1000.00 No such case during the reporting period
SERVI?OS EM 2023
SEGURAN?A
ELETR?NICA
LTDA
Dahua Technology April 28
1000.00 No such case during the reporting period
Middle East FZE 2023
Dahua Technology April 28
1000.00 No such case during the reporting period
Perú S.A.C 2023
522023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Dahua Technology April 28
500.00 No such case during the reporting period
Australia PTY LTD 2023
Dahua Technology
April 28
South Africa 500.00 No such case during the reporting period
2023
Proprietary Limited
Dahua Technology April 28
1000.00 No such case during the reporting period
Canada INC. 2023
Dahua Guvenlik
April 28
Teknolojileri Sanayi 1000.00 No such case during the reporting period
2023
ve Ticaret A.S.Dahua Technology April 28
100.00 No such case during the reporting period
SRB d.o.o. 2023
Dahua Technology April 28
100.00 No such case during the reporting period
Bulgaria EOOD 2023
April 28
Dahua Iberia S.L. 100.00 No such case during the reporting period
2023
Dahua Security
April 28
Malaysia SDN. 100.00 No such case during the reporting period
2023
BHD.Dahua Technology April 28
100.00 No such case during the reporting period
Kazakhstan LLP 2023
PT. Dahua Vision
April 28
Technology 100.00 No such case during the reporting period
2023
Indonesia
Dahua Technology
April 28
Korea Company 100.00 No such case during the reporting period
2023
Limited
Dahua Technology April 28
100.00 No such case during the reporting period
S.R.L. 2023
Dahua Technology April 28
700.00 No such case during the reporting period
France SAS 2023
April 28
Dahua Vision LLc 500.00 No such case during the reporting period
2023
Dahua Technology
April 28
New Zealand 100.00 No such case during the reporting period
2023
Limited
Dahua Technology April 28
300.00 No such case during the reporting period
GmbH 2023
Dahua Technology April 28
500.00 No such case during the reporting period
Colombia S.A.S. 2023
Dahua Technology April 28
100.00 No such case during the reporting period
Panama S.A. 2023
Dahua Technology April 28
100.00 No such case during the reporting period
Chile SpA 2023
Dahua Technology
April 28
Tunisia Limited 100.00 No such case during the reporting period
2023
Liability Company
Dahua Technology April 28
100.00 No such case during the reporting period
Kenya Limited 2023
Dahua Technology
April 28
Pakistan (private) 100.00 No such case during the reporting period
2023
Limited
Dahua Technology April 28
100.00 No such case during the reporting period
Morocco SARL 2023
Dahua Argentina April 28
100.00 No such case during the reporting period
S.A. 2023
Dahua Technology April 28
100.00 No such case during the reporting period
Czech s.r.o. 2023
Dahua Technology April 28
100.00 No such case during the reporting period
Denmark ApS 2023
532023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Dahua
April 28
Technology(Thailan 100.00 No such case during the reporting period
2023
d) Co.LTD.Dahua Technology April 28
100.00 No such case during the reporting period
Italy S.R.L. 2023
Luoyang Dahua
Zhiyu Information April 28
500.00 No such case during the reporting period
Technology Co. 2023
Ltd.Dahua Technology April 28
100.00 No such case during the reporting period
Belgium B.V. 2023
VISMEXTECH
April 28
DHM SERVICIOS 100.00 No such case during the reporting period
2023
S.A. DE C.V.Total amount of
Total amount of guarantees to guarantees to
subsidiaries approved during 1360000.00 subsidiaries actually 210445.16
the reporting period (B1) occurred during the
reporting period (B2)
Total balance of
Total amount of guarantees to guarantees actually
subsidiaries approved by the 1360000.00 paid to subsidiaries at 939702.51
end of the reporting period (B3) the end of the
reporting period (B4)
Subsidiaries' guarantees to subsidiaries
Guar
Announc
ante
ement
e for
date of Actual Actual Type of Due
Guarantee Term of relat
Guaranteed party disclosur occurrence guarantee guarant or
amount guarantee ed
e of the date amount ee not
parti
guarante
es or
e cap
not
Total amount of
Total amount of guarantees to guarantees to
subsidiaries approved during subsidiaries actually
the reporting period (C1) occurred during the
reporting period (C2)
Total balance of
Total amount of guarantees to guarantees actually
subsidiaries approved by the paid to subsidiaries at
end 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 1360000.00 occurred during the 210445.16
period (A1+B1+C1) reporting period
(A2+B2+C2)
Total balance of
Total amount of guarantees guarantees actually
approved by the end of the 1360000.00 paid at the end of the 939702.51
reporting period (A3+B3+C3) reporting period
(A4+B4+C4)
Total amount of actual guarantees (A4+B4+C4) as a
29.03%
percentage 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
887202.51
guaranteed objects with asset-liability ratio exceeding 70%
542023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(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) 887202.51
Notes on unexpired guarantees with guarantee
responsibilities occurred or possible joint liabilities within the
reporting period (if any)
Notes on providing external guarantees in violation of
specified procedures (if any)
3. Entrusted Financing
□ Applicable □ Not applicable
Unit: RMB ten thousand
Impairment
Overdue amount accrued
Entrusted Unexpired
Specific type Funding source outstanding for overdue
amount balance
amount financial
management
Financial
products of
Equity Fund 32000.00 82000.00
securities
companies
Total 32000.00 82000.00
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
Am
Act Wh
ount
ual ethe
of
Na Act reco r
prov
me ual very ther Item
Ref isio Wh
of Tru profi of e over
Pay ere n ethe
trust stee t profi will vie
men nce Exp for r it
ee org Inve and ts be w
Ter t for ecte imp pas
org aniz Cap stm loss and entr and
Pro Star min dete ann d airm sed
aniz atio Am ital ent duri loss uste relat
duct ting atio rmin uali ear ent the
atio n ount Sou dire ng es d ed
type date n atio zed ning accr lega
n (or rce ctio the duri fina que
date n rate s (if ued l
(or trust n rep ng ncia ry
met of any) in proc
nam ee) ortin the l inde
hod retu the edu
e of type g rep plan x (if
rn curr res
trust peri ortin in any)
ent
ee) od g the
year
peri futu
(if
od re
any)
Priv
ate
equit Pay
y men
Guo Ass fund t of
sen et Febr Febr prod princ
Equi
Sec Sec Man 820 uary uary ucts ipal Une
ty 432
uritie uritie age 00.0 10 9 fixed and xpire Yes Yes
Fun 9.93
s s men 0 202 203 inco inco d
d
co. t 1 1 me me
Ltd. Plan asse at
ts mat
equit urity
y
asse
552023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
ts
publi
c
equit
y
hybri
d
fund
s
820
432
Total 00.0 -- -- -- -- -- -- -- -- -- --
9.93
0
Cases of entrusted financing expected to be unable to recover the principal or cases that may result in impairment
□ Applicable □ Not applicable
4. Other Significant Contracts
□ Applicable □ Not applicable
No such case as other significant contract during the reporting period.XIII. Explanations on Other Significant Matters
□ Applicable □ Not applicable
The Company initiated its non-public offering of shares to China Mobile Communications Group Co. Ltd. in 2021 and
obtained the Approval of Non-public Offering of Shares of Zhejiang Dahua Technology Co. Ltd. (Z.J.X.K. (2022) No.
853) issued by China Securities Regulatory Commission on April 24 2022. The Company disclosed the Report on
Non-public Offering of Shares to Specific Investors Announcement on Non-public Offering of Shares to Specific
Investors and other documents on March 31 2023 and April 12 2023. The Company completed its non-public offering
of shares to China Mobile Communications Group Co. Ltd. The 293103400 shares issued in this non-public offering
shall be listed on the exchange as of April 14 2023. The announcements above have been disclosed on Securities
Times and www.cninfo.com.cn as designated by the Company.XIV. Significant Events of the Company's Subsidiaries
□ Applicable □ Not applicable
The Company's subsidiaries Zhejiang Dahua System Engineering Co. Ltd. Hangzhou Huacheng Software
Technology Co. Ltd. Zhejiang Huaruijie Technology Co. Ltd. and Zhejiang Waythcan Technology Co. Ltd. have
been identified as high-tech enterprises and received the High-tech Enterprise Certificate approved and issued by the
Science and Technology Department of Zhejiang Province Zhejiang Provincial Department of Finance Zhejiang
Provincial Tax Service State Taxation Administration during the reporting period.
562023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section VII Changes in Shares and Information about
Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before the change Increase or decrease in the change (+ -) After the change
Shares
Shares convertePercenta Bonus Percenta
Number newly d from Others Subtotal Number
ge shares ge
issued capital
reserves
I. Shares
with
107505293103292201136725
limited 35.44% 0 0 -902114 41.10%
38504002865136
sales
condition
1.
Shares
00.00%0000000
held by
state
2.
Shares
held by
293103293103293103
state- 0 0.00% 0 0 0 8.81%
400400400
owned
legal
persons
3.
Other 107505 107415
35.44%000-902114-90211432.29%
domestic 3850 1736
shares
Of
which:
Shares
held by 0 0.00% 0 0 0 0 0 0 0.00%
domestic
legal
persons
Shar
es held
by 107505 10741535.44% 0 0 0 -902114 -902114 32.29%
domestic 3850 1736
natural
persons
4.
Foreign 0 0.00% 0 0 0 0 0 0 0.00%
shares
Of
which:
Shares
held by 0 0.00% 0 0 0 0 0 0 0.00%
foreign
legal
persons
Shar
es held 0 0.00% 0 0 0 0 0 0 0.00%
by
572023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
foreign
natural
persons
II.Shares
195810195900
without 64.56% 0 0 0 902114 902114 58.90%
73209434
restrictio
ns
1.
RMB 195810 195900
64.56%00090211490211458.90%
ordinary 7320 9434
shares
2.
Foreign
shares 0 0.00% 0 0 0 0 0 0 0.00%
listed in
China
3.
Foreign
shares
00.00%0000000.00%
listed in
foreign
countries
4.
00.00%0000000.00%
Other
303316293103293103332626
III. Total 100.00% 0 0 0 100.00%
11704004004570
Reasons for changes in shares
□ Applicable □ Not applicable
1. The Company completed its offering of shares to China Mobile Communications Group Co. Ltd. during the
reporting period. The 293103400 shares issued in this offering shall be listed on the exchange as of April 14 2023.
2. According to relevant regulations the Company shall lock the shares held by its directors supervisors and senior
management through reverification 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
1. On April 18 2022 the application of the Company for issuance of shares to China Mobile Communications Group
Co. Ltd. was reviewed and approved by the Issuance Examination Committee of the China Securities Regulatory
Commission.
2. On April 24 2022 the CSRC issued the Reply on Approving the Non-public Issuance of Shares by Zhejiang Dahua
Technology Co. Ltd. (Zheng Jian License [2022] No. 853).Transfer for changes in shares
□ Applicable □ Not applicable
The Company completed its offering of shares to China Mobile Communications Group Co. Ltd. during the reporting
period. The 293103400 shares issued in this offering shall be listed on the exchange as of April 14 2023.The progress on share repurchases
□ Applicable □ Not applicable
582023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
common shareholders of the Company and other financial indexes over the last year and last period
□ Applicable □ Not applicable
Where the Company issued shares to specific parties resulting in changes in its share capital during the reporting
period see “Section II IV. Key Accounting Data and Financial Indicators” for the effects of changes in shares on
the basic earnings per share ("EPS") diluted EPS net assets per share attributable to common shareholders of the
Company and other financial indexes over the last year and last period.Other contents that the Company considers necessary or are required by the securities regulatory authorities to
disclose
□ Applicable □ Not applicable
2. Changes in restricted stocks
□ Applicable □ Not applicable
Unit: share
Number Of Number of Number of Number of
Shares With unlocked increased shares with
Name of Limited Sales shares with shares with limited sales Reasons for Date of
Shareholder Condition At limited sales limited sales condition at limited sales unlocking
The Beginning condition in condition in the end of the
Of The Period current period current period period
Unlocking
according to
Lock-up
the relevant
shares for
Fu Liquan 767901735 0 0 767901735 provisions of
senior
executives
management
shares
management
China Mobile
Subscription
Communicatio
0 0 293103400 293103400 of non-public April 14 2026
ns Group Co.shares
Ltd.Unlocking
Lock-up according to
shares for the relevant
Zhu
120433117 301500 0 120131617 resigned provisions of
Jiangming
senior executives
management shares
management
Unlocking
according to
Lock-up
the relevant
shares for
Chen Ailing 53447110 0 0 53447110 provisions of
senior
executives
management
shares
management
Unlocking
according to
Lock-up
the relevant
shares for
Wu Jun 51860164 0 19500 51879664 provisions of
senior
executives
management
shares
management
Lock-up Unlocking
Zhang
2710153 677538 0 2032615 shares for according to
Xingming
resigned the
592023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
senior regulations on
management senior
and restricted management
shares for and equity
equity incentive
incentive shares
award
Senior
management'
s lock-up
shares Unlocking
restricted according to
shares for the
equity regulations on
Zhao Yuning 1132750 0 300500 1433250 incentive senior
award and management
transferable and equity
amount incentive
management shares
of different
trusteeship
units
Senior Unlocking
management' according to
s lock-up the
shares and regulations on
Wu Jian 1401251 0 8250 1409501 restricted senior
shares for management
equity and equity
incentive incentive
award shares
Senior
management'
s lock-up
shares Unlocking
restricted according to
shares for the
equity regulations on
Zhu Jiantang 932669 0 224000 1156669 incentive senior
award and management
transferable and equity
amount incentive
management shares
of different
trusteeship
units
Unlocking
Lock-up according to
shares for the relevant
Chen Yuqing 1073963 0 19500 1093463 resigned provisions of
senior executives
management shares
management
Senior Unlocking
management' according to
Other senior s lock-up the
executives shares and regulations on
and equity 74160938 494826 0 73666112 restricted senior
incentive shares for management
objects equity and equity
incentive incentive
award shares
Total 1075053850 1473864 293675150 1367255136 -- --
602023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
II. Issuance and listing of securities
□ Applicable □ Not applicable
Issuan
Name of Transa
ce Number of
the stock ction
Issue price Quantity of Listing approved Disclosure Date of
and its termina
Date (or issuance date listed Index Disclosure
derivative tion
interest transactions
securities date
rate)
Stocks
Juchao
Informatio
March 23 April 14 April 12
DAHUA 17.4 293103400 293103400 n Network
202320232023
Announce
ment
Description of the issuance of securities during the reporting period
According to the Approval of Non-public Offering of Shares of Zhejiang Dahua Technology Co. Ltd. (Zheng Jian
License (2022) No. 853) issued by the China Securities Regulatory Commission the Company issued 293103400
shares to China Mobile Communications Group Co. Ltd. at an issue price of RMB 17.40 per share which were listed
on Shenzhen Stock Exchange on April 14 2023.III. Total number of shareholders and their shareholdings
Unit: share
Total Number of Preferred
Total Number of
Shareholders (If Any) (Refer to Note
Common Shareholders
188544 8) Whose Voting Rights have been 0
at The End of The
Recovered at the End of the
Reporting Period
Reporting Period
Shareholding list of common shareholders with over 5% shares or top ten common shareholders
Number of Pledges markings or
Number of Number of
common freezing
common common
Sharehold Changes shares
Name of Nature of shares shares
ing in the held
Sharehold Sharehold held at the held with
Percentag reporting without State Of
er er end of the limited Number
e period limited Shares
reporting sales
sales
period conditions
condition
Domestic
1023868767901725596721560000
Fu Liquan Natural 30.78% 0 Pledge
980354500
Person
China
Mobile State-
Communi owned 2931034 2931034 2931034
8.81%0
cations Legal 00 00 00
Group Person
Co. Ltd.Domestic
Zhu 1601754 1201316 4004387
Natural 4.82% 0
Jiangming 90 17 3
Person
Domestic
Chen 7126281 5344711 1781570 3180000
Natural 2.14% 0 Pledge
Ailing 3 0 3 0
Person
Domestic 6917288 5187966 1729322
Wu Jun 2.08% 0
Natural 6 4 2
612023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Person
Hong
Kong Overseas -
68496246849624
Securities Legal 2.06% 8963836 0
55
Clearing Person 3
Co. Ltd.National
Social 3973200 3973200
Others 1.19% 39732000 0
Security 0 0
Fund 103
Domestic
China
Non-state-
Securities 3961124 3961124
owned 1.19% 0 0
Finance 1 1
Legal
Co. Ltd.Person
China State-
Galaxy owned 2982473 2982473
0.90%-60894300
Securities Legal 0 0
Co. Ltd. Person
China
Constructi
on Bank
Corporatio
n Limited -
Qianhai 2329860 2329860
Others 0.70% 23298603 0
Kaiyuan 3 3
Utility
Stock
Securities
Investmen
t Fund
Strategic investors or
general legal entities
becoming top 10
China Mobile Communications Group Co. Ltd. as a strategic investor of the Company
common shareholders
undertakes not to transfer any shares of the Company subscribed in any way within 36
as a result of the
months from the first day of listing of the new shares
placement of new
shares (if any) (see
Note 3)
Description of the
association relationship Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company Is Unaware Of
or concerted action of Whether Other Shareholders Have Associated Relationship Or Are Persons Acting In
above-mentioned Concert
shareholders
Explanation of the
above shareholders
involved in
Not applicable.proxy/trustee voting
rights and abstention
from voting rights
Special note on the
existence of repurchase
special accounts
Not applicable.among the top 10
shareholders (if any)
(see Note 11)
Shareholding of the top ten common shareholders without limited sales condition
Type of shares
Number of common shares held without limited sales condition
Name of Shareholder
at the end of the reporting period Type of Number
shares
RMB
2559672
Fu Liquan 255967245 common
45
stock
RMB
Hong Kong Securities 6849624
68496245 common
Clearing Co. Ltd. 5
stock
622023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
RMB
4004387
Zhu Jiangming 40043873 common
3
stock
RMB
National Social Security 3973200
39732000 common
Fund 103 0
stock
RMB
China Securities 3961124
39611241 common
Finance Co. Ltd. 1
stock
RMB
China Galaxy Securities 2982473
29824730 common
Co. Ltd. 0
stock
China Construction
Bank Corporation
RMB
Limited - Qianhai 2329860
23298603 common
Kaiyuan Utility Stock 3
stock
Securities Investment
Fund
Industrial and
Commercial Bank of
China Limited - Qianhai
RMB
Kaiyuan New Economy 1806745
18067450 common
Flexible Allocation 0
stock
Hybrid Securities
Investment Fund
RMB
1781570
Chen Ailing 17815703 common
3
stock
RMB
1729322
Wu Jun 17293222 common
2
stock
Explanation on
associated relationship
or persons acting in
concert among top ten
common shareholders Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company Is Unaware Of
without limited shares Whether Other Shareholders Have Associated Relationship Or Are Persons Acting In
and between top ten Concert
common shareholders
without limited shares
and top ten common
shareholders
Explanation on Top Ten
Common Shareholders’
Participation in
N/A
Securities Margin
Trading (If Any) (see
Note 4)
Whether the Company's top ten common shareholders or top ten common shareholders without limited shares agree
on any repurchase transaction in the reporting period
□ Yes □ No
None of the Company's top ten common shareholders or top ten common shareholders without limited shares agreed
on repurchase in the reporting period.IV. Shareholding Changes of Directors Supervisors and Senior 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 2022 Annual Report for more information.
632023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
642023 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.
652023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Section IX Situation on Corporate Bonds
□ Applicable □ Not applicable
662023 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: yuan
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co. Ltd.June 30 2023
Unit: RMB
Item June 30 2023 January 1 2023
Current Assets:
Cash and Bank Balances 11936864545.30 8029878650.77
Deposit Reservation for Balance
Loans to Banks and Other
Financial Institutions
Trading Financial Assets 1470000.00 1470000.00
Derivative Financial Assets
Notes receivable 643621901.77 872302071.18
Accounts receivable 16026362081.73 15411908561.50
Receivables Financing 592817184.48 679441917.62
Prepayments 198699221.08 121691239.14
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves
Receivable
Other Receivables 355240242.40 401849246.88
Including: interest receivable
Dividends Receivable 4373583.72 8519063.17
Buying Back the Sale of Financial
Assets
Inventory 6254601963.07 7315372440.02
Contract Assets 135350874.39 106335405.35
Holding for-sale assets
Non-current Assets Due within 1
450902515.94476871949.75
Year
Other Current Assets 676284489.75 1352406151.72
Subtotal of Current Assets 37272215019.91 34769527633.93
Non-current Assets:
Granting of loans and advances
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables 1297305069.07 1436256651.54
Long-term Equity Investment 1192130131.68 1461099644.55
Investment in Other Equity
672023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Instruments
Other Non-current Financial Assets 1378948318.26 931043130.33
Investment Property 434725805.77 423035823.82
Fixed Assets 4527953284.98 4643617574.85
Projects under Construction 594110798.33 423535552.03
Productive Biological Assets
Oil and gas assets
Right-of-use Assets 317699205.96 314700977.50
Intangible Assets 585321371.93 557183251.12
Development Expenditure
Goodwill 6615294.18 6615294.18
Long-term Deferred Expenses 125478289.77 130626422.97
Deferred Income Tax Assets 1010703390.49 1014419944.15
Other Non-current Assets 114590062.60 141231903.57
Subtotal of Non-current Assets 11585581023.02 11483366170.61
Total assets 48857796042.93 46252893804.54
Current Liabilities:
Short-term loan 489869105.97 257943618.51
Borrowings from the Central Bank
Borrowings from Banks and Other
Financial Institutions
Transactional financial liabilities 24514280.75 26652319.25
Derivative Financial Liabilities
Notes Payable 3405804594.55 4364097761.17
Accounts Payable 5382245929.49 7340277388.29
Received Prepayments
Contract liabilities 997166396.05 1219548011.88
Financial Assets Sold for
Repurchase
Deposit Taking and Interbank
Deposit
Receiving from Vicariously Traded
Securities
Receiving from Vicariously Sold
Securities
Payroll payable 1052578177.93 1583203165.43
Tax Payable 438124777.04 326881747.78
Other Payables 726192979.56 1004056999.91
Including: interest payable
Dividends Payable 10349050.92
Service Charge and Commission
Payable
Reinsurance Accounts Payable
Holding for-sale liabilities
Non-current Liabilities Due within 1
1998344960.102558010785.73
Year
Other Current Liabilities 133734672.39 166004612.27
Subtotal of Current Liabilities 14648575873.83 18846676410.22
Non-current Liabilities:
Insurance Contract Reserves
Long-term loan 402000000.00 453825000.00
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities 193897179.10 196340654.27
Long-term Payables
Long-term payroll payable
Expected Liabilities 224345821.95 227764387.93
682023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Deferred Income 177727208.90 104663047.38
Deferred Income Tax Liabilities 2217705.84 1168473.33
Other Non-current Liabilities 156913075.39 204084072.08
Subtotal of Non-current Liabilities 1157100991.18 1187845634.99
Total Liabilities 15805676865.01 20034522045.21
Shareholders' Equity:
Share Capital 3294468990.00 3033161170.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 8768776583.46 3950209243.25
Less: Treasury Share 340058648.28 609859632.00
Other Comprehensive Incomes 41111643.94 36942339.77
Special Reserves
Surplus Reserves 1553691005.92 1553691005.92
General Risk Reserves
Undistributed Profits 19054706138.21 17872654791.67
Total Shareholders' Equity
32372695713.2525836798918.61
Attributable to the Parent Company
Minority Shareholders' Equity 679423464.67 381572840.72
Total Shareholders' Equity 33052119177.92 26218371759.33
Total Liabilities and Shareholders'
48857796042.9346252893804.54
Equity
Legal representative: Fu Liquan Person in charge of accounting: Xu Qiaofen Person in charge of the accounting institution: Zhu Zhuling
2. Balance Sheet of the Parent Company
Unit: RMB
Item June 30 2023 January 1 2023
Current Assets:
Cash and Bank Balances 6481351040.64 4022841447.49
Trading Financial Assets
Derivative Financial Assets
Notes receivable 182887476.99 178821430.81
Accounts receivable 4704118990.27 4837478515.65
Receivables Financing 823973067.57 1061433149.01
Prepayments 15248016.01 11881594.83
Other Receivables 12942027391.89 13025162686.64
Including: interest receivable
Dividends Receivable
Inventory 641536401.04 950125105.39
Contract Assets 35788312.15 27158633.27
Holding for-sale assets
Non-current Assets Due within 1
25327113.1235911131.98
Year
Other Current Assets 67355677.70 627219565.83
Subtotal of Current Assets 25919613487.38 24778033260.90
Non-current Assets:
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables 9031389.34 12287217.89
Long-term Equity Investment 8025866329.90 5482249288.75
Investment in Other Equity
Instruments
Other Non-current Financial Assets 1356478318.26 908573130.33
Investment Property 450042133.15 317849081.03
Fixed Assets 1407576973.45 1627286403.38
692023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Projects under Construction 32163840.96 34991576.38
Productive Biological Assets
Oil and gas assets
Right-of-use Assets 101518274.31 114223037.09
Intangible Assets 116406209.39 132109501.05
Development Expenditure
Goodwill
Long-term Deferred Expenses 61821008.41 69447374.46
Deferred Income Tax Assets 45410505.97 39347253.53
Other Non-current Assets 26589469.75 25825038.50
Subtotal of Non-current Assets 11632904452.89 8764188902.39
Total assets 37552517940.27 33542222163.29
Current Liabilities:
Short-term loan 3632141.60
Transactional financial liabilities
Derivative Financial Liabilities
Notes Payable 402382017.38 485319623.33
Accounts Payable 837784081.91 1074133501.08
Received Prepayments
Contract liabilities 101173804.36 169956348.75
Payroll payable 774671215.51 1116235627.09
Tax Payable 143447661.25 140279695.45
Other Payables 1162760668.79 1328875885.44
Including: interest payable
Dividends Payable 10349050.92
Holding for-sale liabilities
Non-current Liabilities Due within 1
1838288181.232393499176.95
Year
Other Current Liabilities 18377273.71 85397527.74
Subtotal of Current Liabilities 5278884904.14 6797329527.43
Non-current Liabilities:
Long-term loan 350000000.00 350000000.00
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities 54428133.81 64598842.13
Long-term Payables
Long-term payroll payable
Expected Liabilities 2004971.69 2204024.80
Deferred Income
Deferred Income Tax Liabilities
Other Non-current Liabilities 406094.85 392972.39
Subtotal of Non-current Liabilities 406839200.35 417195839.32
Total Liabilities 5685724104.49 7214525366.75
Shareholders' Equity:
Share Capital 3294468990.00 3033161170.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 8538112902.95 3788412149.09
Less: Treasury Share 340058648.28 609859632.00
Other Comprehensive Incomes
Special Reserves
Surplus Reserves 1553691005.92 1553691005.92
Undistributed Profits 18820579585.19 18562292103.53
Total Shareholders' Equity 31866793835.78 26327696796.54
Total Liabilities and Shareholders' 37552517940.27 33542222163.29
702023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Equity
3. Consolidated Income Statement
Unit: RMB
Item 2023 Semi-Annual 2022 Semi-Annual
I. Total Operating Revenue 14633547280.64 14087085840.97
Including: Operating Revenue 14633547280.64 14087085840.97
Interest Income
Earned Premiums
Service Charge and
Commission Income
II. Total Operating Cost 12639678879.61 12627463461.27
Including: Operating Cost 8363987899.64 8802576621.32
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 116183814.53 79474198.57
Sales Expenses 2190619243.64 2039728296.24
Administration expenses 574719904.27 416806198.58
Research and development
1814620715.061563479271.17
expense
Financial Expenses -420452697.53 -274601124.61
Including: interest
58636214.4166900870.38
expenses
Interest Income 139792759.54 99279785.76
Add: Other income 362570654.41 500467768.02
Investment Income (Mark "-"
-14144210.12-167792112.54
for Loss)
Including: Investment
Income from Affiliates and Joint -154531486.76 -190450701.35
Ventures
Profits from
recognition Termination of Financial -196693.85 -515403.33
Assets at Amortized Cost
Exchange Gains (Mark "-" for
Losses)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in fair
135198336.41138606187.66
value (losses marked with "-")
Credit Impairment Losses
-188589781.56-226803032.66
(Mark "-" for Loss)
Asset Impairment Losses
-51813530.75-68919039.80
(Mark "-" for Loss)
Asset Disposal Income (Mark
1762054.22921560.18
"-" for Loss)
III. Operating Profit (Mark "-" for
2238851923.641636103710.56
Loss)
Add: Non-operating Revenues 7290762.49 4176182.18
Less: Non-operating Expenses 4137712.72 3553253.46
IV. Total Profit (Mark "-" for Total
2242004973.411636726639.28
Loss)
Less: Income Tax Expense 201745311.54 93448750.74
V. Net Profit (Mark "-" for Net Loss) 2040259661.87 1543277888.54
712023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(I) Classified by operation
continuity
1. Net Profit as a Going Concern
2040259661.871543277888.54
(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 1976018373.13 1519848967.71
(Mark "-" for Net Loss)
2. Minority Shareholders' Profit
64241288.7423428920.83
and Loss (Mark "-" for Net Loss)
VI. Net Amount of Other
4075172.57-3570948.60
Comprehensive Incomes after Tax
Net Amount of Other
Comprehensive Incomes after Tax
4169304.17-3554206.18
Attributable to the 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
4169304.17-3554206.18
that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L
under the equity method
2. Changes in the fair value of
investment in other creditor's rights
3. Financial assets reclassified
into other comprehensive income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge reserves
6. Currency translation
4169304.17-3554206.18
difference
7. Others
Net Amount of Other
Comprehensive Incomes After Tax -94131.60 -16742.42
Attributable to Minority Shareholders
VII. Total Comprehensive Income 2044334834.44 1539706939.94
Total Comprehensive Income
Attributable to the Parent Company's 1980187677.30 1516294761.53
Owner
Total Comprehensive Income
64147157.1423412178.41
Attributable to Minority Shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.63 0.51
(II) Diluted Earnings per Share 0.63 0.51
Legal representative: Fu Liquan Person in charge of accounting: Xu Qiaofen Person in charge of the accounting institution: Zhu Zhuling
722023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
4. Income Statement of the Parent Company
Unit: RMB
Item 2023 Semi-Annual 2022 Semi-Annual
I. Operating Revenue 4184317063.89 3866053547.81
Less: Operating Cost 719784720.11 445347117.51
Taxes and Surcharges 54229390.73 56800667.28
Sales Expenses 1015381496.95 899736981.65
Administration expenses 317706226.18 220965637.90
Research and development
1289644332.691151255899.09
expense
Financial Expenses -36661815.34 -6125001.13
Including: interest expenses 46683379.85 44101316.61
Interest Income 81624138.58 49528634.04
Add: Other income 276803489.04 415570228.58
Investment Income (Mark "-"
-188877854.91-218295447.12
for Loss)
Including: Investment
Income from Affiliates and Joint -189891800.93 -216827314.09
Ventures
Profits from
Derecognition of Financial Assets at -3367354.25 -3745833.33
Amortized Cost (Mark "-" for Loss)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in fair
133060297.91162677125.00
value (losses marked with "-")
Credit Impairment Losses
-9113671.32-8464769.91
(Mark "-" for Loss)
Asset Impairment Losses
1499115.65-2529272.38
(Mark "-" for Loss)
Asset Disposal Income (Mark
432756.61681965.58
"-" for Loss)
II. Operating Profit (Mark "-" for Loss) 1038036845.55 1447712075.26
Add: Non-operating Revenues 756053.99 2450575.07
Less: Non-operating Expenses 682163.61 1283456.12
III. Total Profit (Mark "-" for Total
1038110735.931448879194.21
Loss)
Less: Income Tax Expense -14143772.32 55485544.69
IV. Net Profit (Mark "-" for Net Loss) 1052254508.25 1393393649.52
(I) Net Profit as a Going Concern
1052254508.251393393649.52
(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
732023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
under the equity method
2. Changes in the fair value of
investment in other creditor's rights
3. Financial assets reclassified
into other comprehensive income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge reserves
6. Currency translation
difference
7. Others
VI. Total Comprehensive Income 1052254508.25 1393393649.52
VII. Earnings per Share:
(I) Basic Earnings per Share 0.34 0.47
(II) Diluted Earnings per Share 0.34 0.47
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2023 Semi-Annual 2022 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
15419789484.3215265440930.92
and Provision of Services
Net Increase in Customer's Bank
Deposits and Interbank Deposits
Net Increase in Borrowings from
the Central Bank
Net Increase in Borrowings from
Other Financial Institutions
Cash Arising from Receiving
Premiums for the Original Insurance
Contract
Net Amount Arising from
Reinsurance Business
Net Increase in Deposits and
Investments from Policyholders
Cash Arising from Interests
Service Charges and Commissions
Net Increase in Borrowings from
Banks and Other Financial
Institutions
Net Increase in Repurchase
Business Funds
Net Amount of Cash Received
from the Vicariously Traded
Securities
Tax Refund 562339362.06 821998893.46
Other Received Cashes Related to
620225332.09643355851.17
Operational Activities
Subtotal of cash inflow from
16602354178.4716730795675.55
operational activities
Cash Paid for Merchandise and
10753333485.7012250857651.04
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
742023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Cash Paid for Policy Dividends
Cash Paid to and for Employees 3776397158.68 4166888180.62
Cash Paid for Taxes and
816894394.931086604856.49
Surcharges
Other Paid Cashes Related to
993032393.45954239634.16
Operational Activities
Subtotal of cash outflow from
16339657432.7618458590322.31
operational activities
Net cash flow generated by operating
262696745.71-1727794646.76
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
999781208.811424220516.19
Investments
Cash Arising from Investment
14922299.2914408600.68
Incomes
Net Cash Arising from Disposal of
Fixed Assets Intangible Assets and 2406406.21 3618138.04
Other Long-term Assets
Net Cash Arising from Disposal of
Subsidiaries and Other Business 1078062.03
Units
Other Received Cashes Related to
6756472.7817359422.11
Investment Activities
Subtotal of cash inflow from
1023866387.091460684739.05
investment activities
Cash Paid for Purchase and
Construction of Fixed Assets
639960429.28671321793.27
Intangible Assets and Other Long-
term Assets
Cash Paid for Investments 518446286.75 899086646.00
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of
Subsidiaries and Other Business
Units
Other Paid Cashes Related to
36957997.392189282.90
Investment Activities
Subtotal of cash outflows from
1195364713.421572597722.17
investment activities
Net amount of cash flow generated
-171498326.33-111912983.12
by investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
5389711811.41624169632.00
Investments
Including: Cash Arising from
Subsidiaries Absorbing Investments 293712651.41 14310000.00
by Minority Shareholders
Cash Arising from Borrowings 1212246016.69 3497977041.60
Other Received Cashes Related to
453263.81
Financing Activities
Subtotal of cash inflow from financing
6601957828.104122599937.41
activities
Cash Paid for Debts Repayment 1627680609.51 2184297390.00
Cash Paid for Distribution of
Dividends and Profits or Payment of 836082043.03 858441875.43
Interests
Including: Dividends and Profits
Paid to Minority Shareholders by 1104770.95
Subsidiaries
Other Paid Cashes Related to
355403014.42433219341.33
Financing Activities
Subtotal of cash outflow from
2819165666.963475958606.76
financing activities
Net cash flow generated by financing 3782792161.14 646641330.65
752023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
activities
IV. Impact of Fluctuation in Exchange
45593862.6686013805.25
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
3919584443.18-1107052493.98
Equivalents
Add: Cash and Cash Equivalents
7878465052.637617576852.32
at the Commencement of the Period
VI. Cash and Cash Equivalents at the
11798049495.816510524358.34
End of the Period
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2023 Semi-Annual 2022 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
4641334206.694901653844.89
and Provision of Services
Tax Refund
Other Received Cashes Related to
413453400.08485465467.41
Operational Activities
Subtotal of cash inflow from
5054787606.775387119312.30
operational activities
Cash Paid for Merchandise and
347160343.46380698114.67
Services
Cash Paid to and for Employees 2289406464.99 2540544711.65
Cash Paid for Taxes and
391459849.51657020098.45
Surcharges
Other Paid Cashes Related to
483866340.52545699527.90
Operational Activities
Subtotal of cash outflow from
3511892998.484123962452.67
operational activities
Net cash flow generated by operating
1542894608.291263156859.63
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
696333948.05528823920.19
Investments
Cash Arising from Investment
3522690.736666341.48
Incomes
Net Cash Arising from Disposal of
Fixed Assets Intangible Assets and 4782857.98 11212058.02
Other Long-term Assets
Net Cash Arising from Disposal of
Subsidiaries and Other Business
Units
Other Received Cashes Related to
Investment Activities
Subtotal of cash inflow from
704639496.76546702319.69
investment activities
Cash Paid for Purchase and
Construction of Fixed Assets
185751851.23280356493.56
Intangible Assets and Other Long-
term Assets
Cash Paid for Investments 3177146235.00 168623191.19
Net Cash Paid for Acquisition of
Subsidiaries and Other Business
Units
Other Paid Cashes Related to
Investment Activities
Subtotal of cash outflows from
3362898086.23448979684.75
investment activities
Net amount of cash flow generated
-2658258589.4797722634.94
by investment activities
III. Cash Flow from Financing
762023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Activities:
Cash Arising from Absorbing
5095999160.00609859632.00
Investments
Cash Arising from Borrowings 1143632141.60
Other Received Cashes Related to
1431261852.19984338789.26
Financing Activities
Subtotal of cash inflow from financing
6527261012.192737830562.86
activities
Cash Paid for Debts Repayment 553632141.60 140000000.00
Cash Paid for Distribution of
Dividends and Profits or Payment of 819579768.57 834910324.11
Interests
Other Paid Cashes Related to
1547840710.102291278042.11
Financing Activities
Subtotal of cash outflow from
2921052620.273266188366.22
financing activities
Net cash flow generated by financing
3606208391.92-528357803.36
activities
IV. Impact of Fluctuation in Exchange
228637.48387560.48
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
2491073048.22832909251.69
Equivalents
Add: Cash and Cash Equivalents
3933169520.922408352525.10
at the Commencement of the Period
VI. Cash and Cash Equivalents at the
6424242569.143241261776.79
End of the Period
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
2023 Semi-Annual
Shareholders' Equity Attributable to the Parent Company's Owner
Other Equity Oth Min Tot
Instruments Les er Gen ority al
Und
Cap s: Co Spe Sur eral Sha Sha
Item Sha istriPref Per ital Tre mpr cial plus Ris reh reh
re but Oth Sub
erre pet Res asu ehe Res Res k olde olde
Cap Oth ed ers total
d ual erv ry nsiv erv erv Res rs' rs'
ital ers Prof
Sto Bon es Sha e es es erv Equ Equ
its
cks ds re Inco es ity ity
mes
303915172526
60936381
335053872836218
I. Balance 85 942 57
161209691657937
at the End 96 33 28
172400478917
of Last Year 32. 9.7 40.
0.03.25.991.18.59.
00772
052676133
Add:
Changes in
Accounting
Policies
Co
rrection of
Errors in the
Previous
Period
Co
nsolidated
under the
Same
Control
Ot
hers
772023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
303915172526
60936381
335053872836218
II. Balance 85 942 57
161209691657937
at the Start 96 33 28
172400478917
of This Year 32. 9.7 40.
0.03.25.991.18.59.
00772
052676133
III.Increases 48 - 11 65 68
261297
or 18 269 41 82 35 33
3085
Decreases 567 80 69 051 896 747
7806
in This 34 09 304 34 79 41
20.23.
Period 0.2 83. .17 6.5 4.6 8.5
0095
(Mark "-" for 1 72 4 4 9
Decreases)
191920
64
41768044
(I) Total 147
69018187334
Comprehen 15
304376783
sive Income 7.1.173.17.34.4
4
304
(II)
Shareholder 261 322
262695880
s' 30 85
97380081938
Contribution 78 68
17099883
and 20. 53.
7.983.1.64.9
Reduction 00 27
37252
in Capital
261290
1． Commo 69 269 00 90
3041
n stock 072 80 181 59478 26
invested by 83 09 63 2820. 51.the owner 1.9 83. 5.6 7.000 41
27245
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share- 157 157 32 190
based 90 90 444 34
Payments
03032045
Recorded 46. 46. 1.8 47.into 01 01 6 87
Shareholder
s' Equity
4． Others
---
793793793
(III) Profit 96 96 96
Distribution 70 70 70
26.26.26.
595959
1． Appropr
iation of
Surplus
Reserves
2． Appropr
iation of
General
Risk
Reserves
3． Distribu - - -
tion to 793 793 793
Owners (or 96 96 96
782023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Shareholder 70 70 70
s) 26. 26. 26.
595959
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
Retained
Earnings of
the
Comprehen
sive Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
-
9191
8924
594594
15340
(VI) Others 16 16
38775
2.22.2
6.4.82
88
6
328715193233
34041679
IV. Balance 94 68 53 054 372 052
0511142
at the End 468 776 691 70 69 11
866434
of This 99 58 00 61 57 91
48.3.964.
Period 0.0 3.4 5.9 38. 13. 77.
28467
062212592
Amount of the previous year
Unit: RMB
792023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2022 Semi-Annual
Shareholders' Equity Attributable to the Parent Company's Owner
Other Equity Oth Min Tot
Instruments Les er Gen ority al
Und
Cap s: Co Spe Sur eral Sha Sha
Item Sha istriPref Per ital Tre mpr cial plus Ris reh reh
re but Oth Sub
erre pet Res asu ehe Res Res k olde olde
Cap Oth ed ers total
d ual erv ry nsiv erv erv Res rs' rs'
ital ers Prof
Sto Bon es Sha e es es erv Equ Equ
its
cks ds re Inco es ity ity
mes
292915162324
27776552
943953331617170
I. Balance 16 005 74
550512691016034
at the End 95 79 19
732300222545
of Last Year 24. 2.4 94.
0.05.75.973.13.08.
09959
052485514
Add:
Changes in
Accounting
Policies
Co
rrection of
Errors in the
Previous
Period
Co
nsolidated
under the
Same
Control
Ot
hers
292915162324
27776552
943953331617170
II. Balance 16 005 74
550512691016034
at the Start 95 79 19
732300222545
of This Year 24. 2.4 94.
0.05.75.973.13.08.
09959
052485514
III.Increases -
38304332-737743717
or 25
610046935135579
Decreases 753
44940154531074
in This 56
0.088.07.20693.07.44.
Period 3.3
01091.18707136
(Mark "-" for 5
Decreases)
151515
-23
191639
(I) Total 35 412
848294706
Comprehen 54 17
967693
sive Income 206 8.4
7.71.59.9.181
134
(II)
Shareholder 38 300 332 21 27
61
s' 610 26 69 610 799
88
Contribution 44 77 01 96 05
080
and 0.0 48. 07. 9.4 0.4.97
Reduction 0 88 91 9 6
in Capital
-
3827833214-
1． Commo 16
610016931017
n stock 06044 89 01 00 50
invested by 76
0.005.07.0.0762
the owner 2.80 02 91 0 .89
9
802023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share- 22 22 29
based 73248 248 549
Payments 00 84 84 81
Recorded 969
3.83.83.3
into .49 6 6 5
Shareholder
s' Equity
4． Others
---
782782782
(III) Profit 71 71 71
Distribution 35 35 35
74.74.74.
010101
1． Appropr
iation of
Surplus
Reserves
2． Appropr
iation of
General
Risk
Reserves
---
3． Distribu
782782782
tion to 71 71 71
Owners (or
353535
Shareholder 74. 74. 74.s) 01 01 01
4． Others
(IV) Internal
Carry-
forward of
Shareholder
s' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the
defined
812023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehen
sive Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
--
37377066
8181776994
(VI) Others
7397397197.22.221.22.0
53
303215172424
60972526
IV. Balance 33 43 53 068 361 888
8545198
at the End 161 561 691 14 15 14
965884
of This 17 72 00 76 35 19
32.6.331.
Period 0.0 3.8 5.9 67. 21. 52.
00124
052182650
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
2023 Semi-Annual
Other Equity Other Total
Undis
Instruments Capit Less: Comp Speci Surpl Share
Item Share tributPrefe Perpe al Treas rehen al us Other holde
Capit ed
rred tual Other Reser ury sive Reser Reser s rs'
al Profit
Stock Bond s ves Share Inco ves ves Equit
s
s s mes y
30333788155318562632
I. Balance 6098
16141269122927696
at the End 5963
170.0149.0005.9103.796.
of Last Year 2.00
0925354
Add:
Changes in
Accounting
Policies
Co
rrection of
Errors in the
Previous
Period
Ot
hers
30333788155318562632
II. Balance 6098
16141269122927696
at the Start 5963
170.0149.0005.9103.796.
of This Year 2.00
0925354
III. 4749 - 5539
26132582
Increases 700 2698 097
07828748
or 753.8 0098 039.2
0.001.66
Decreases 6 3.72 4
822023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
in This
Period
(Mark "-" for
Decreases)
10521052
(I) Total
254254
Comprehen
508.2508.2
sive Income
55
(II)
Shareholder
s' 2613
3362698445
Contribution 0782
754.30098558.0
and 0.00
33.725
Reduction
in Capital
1． Commo 4569 - 5100
2613
n stock 072 2698 1810782
invested by 831.9 0098 635.60.00
the owner 2 3.72 4
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share-
based
14921492
Payments 6392 6392
Recorded 2.41 2.41
into
Shareholder
s' Equity
4． Others
--
(III) Profit 7939 7939
Distribution 6702 6702
6.596.59
1． Appropr
iation of
Surplus
Reserves
2． Distribu
--
tion to 7939 7939
Owners (or 6702 6702
Shareholder 6.59 6.59
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)
832023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the
defined
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehen
sive Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
31363136
(VI) Others 3999 3999.53.53
IV. Balance 3294 8538 1553 1882 3186
3400
at the End 468 112 691 0579 6793
5864
of This 990.0 902.9 005.9 585. 835.
8.28
Period 0 5 2 19 78
Amount of the previous year
Unit: RMB
2022 Semi-Annual
Other Equity Other Total
Undis
Instruments Capit Less: Comp Speci Surpl Share
Item Share tributPrefe Perpe al Treas rehen al us Other holde
Capit ed
rred tual Other Reser ury sive Reser Reser s rs'
al Profit
Stock Bond s ves Share Inco ves ves Equit
s
s s mes y
29942925155317372456
I. Balance 2771
55002069109867079
at the End 6952
730.0649.6005.9709.571.
of Last Year 4.09
0825203
Add:
Changes in
Accounting
Policies
Co
rrection of
Errors in the
Previous
Period
Ot
hers
29942925155317372456
II. Balance 2771
55002069109867079
at the Start 6952
730.0649.6005.9709.571.
of This Year 4.09
0825203
842023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
III.Increases
or
38613039332661066205
Decreases
04400956901080070997
in This.008.327.915.515.92
Period
(Mark "-" for
Decreases)
13931393
(I) Total
393393
Comprehen
649.5649.5
sive Income
22
(II)
Shareholder
-
s' 3861 2929 3326
1115
Contribution 0440 6454 9010
127.
and .00 0.35 7.91
56
Reduction
in Capital
1． Commo -
386127803326
n stock 1606
044018909010
invested by 0762.00 5.02 7.91
the owner .89
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of Share-
based
14941494
Payments 5635 5635
Recorded.33.33
into
Shareholder
s' Equity
4． Others
--
(III) Profit 7827 7827
Distribution 1357 1357
4.014.01
1． Appropr
iation of
Surplus
Reserves
2． Distribu
--
tion to 7827 7827
Owners (or 1357 1357
Shareholder 4.01 4.01
s)
3． Others
(IV) Internal
Carry-
forward of
Shareholder
s' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
852023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the variation
of the
defined
benefit plan
5． Other
Carry-
forward
Retained
Earnings of
the
Comprehen
sive Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
10941094
(VI) Others 5027 5027.97.97
IV. Balance 3033 3228 1553 1798 2518
6098
at the End 161 930 691 1666 7589
5963
of This 170.0 218.0 005.9 785. 546.
2.00
Period 0 0 2 03 95
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 June 30 2023 the Company has issued a total of 3294468990 shares with a registered capital of RMB
3294468990.00. The registered address is No.1187 Bin'an Road Binjiang District Hangzhou and the headquarters
is located at No.1399 Binxing Road Binjiang District Hangzhou.
862023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The main operating activities of the Company include the follows: general items: software development; manufacturing
of digital video surveillance systems; marketing of digital video surveillance systems manufacturing of safety
equipment; marketing of safety equipment; manufacturing of IoT equipment; marketing of IoT devices; research and
development of IoT technologies; IoT technical services; IoT application services; big data services; services of 5G
communication technologies; manufacturing of computer hardware software and peripheral equipment; wholesale of
computer hardware software and auxiliary equipment; retail of computer hardware software and auxiliary equipment;
manufacturing of cloud computing equipment; marketing of cloud computing equipment; technical services of cloud
computing equipment; manufacturing of communication devices; marketing of communication devices; manufacturing
of mobile communication devices; marketing of mobile communication devices; manufacturing of network equipment;
marketing of network equipment; manufacturing of display devices; marketing of display devices; manufacturing of
intelligent unmanned aerial vehicles; marketing of intelligent unmanned aerial vehicles; manufacturing of general
equipment (not including manufacturing of special equipment); manufacturing of radars and auxiliary equipment;
research and development of distribution switch controllers; manufacturing of distribution switch controllers; marketing
of distribution switch controllers; manufacturing of instruments and apparatuses; marketing of instruments and
apparatuses; manufacturing of electronic components; wholesale of electronic components; retail of electronic
components; manufacturing of photovoltaic equipment and components; marketing of photovoltaic equipment and
components; manufacturing of metal products for safety and fire control; manufacturing of lighting appliances;
marketing of lighting appliances; research and development of mechanical equipment; marketing of mechanical
equipment; manufacturing of mechanical and electrical equipment; marketing of mechanical and electrical equipment;
marketing of electronic products; manufacturing of wearable intelligent devices; marketing of wearable intelligent
devices; manufacturing of metal structures; marketing of metal structures; manufacturing of stereo equipment;
marketing of stereo equipment; manufacturing of special equipment for environmental protection; marketing of special
equipment for environmental protection; production of special labor protection supplies; marketing of special labor
protection supplies; manufacturing of VR equipment; online marketing (except for marketing of licensed commodities);
technical services technology development technology consultation technology exchange technology transfer
technology popularization; services of information system integration; integration of intelligent control systems; AI
public data platform; system integration services of AI applications; computer system services; Internet data services;
data processing and storage support services; security system monitoring services; electronic and mechanical
equipment maintenance (not including special equipment); leasing services (not including licensed leasing 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 25 2023.For details of the scope of the consolidated financial statements for the current period refer to Notes IX “Equity inOther Entities” and for details of the changes in the scope of the consolidated financial statement for the current
period refer to Notes VIII “Changes in the Scope of Consolidation”.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
872023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.
1. Statement on compliance with Accounting Standards for Business Enterprises
This financial statement is in compliance with the requirements in the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance and presents truly and completely the financial position of the merged
companies and the parent company as at June 30 2023 and the operating results and cash flows of the merged
companies and the parent company in half of year 2023.
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. The accounting treatment of business combinations involving enterprises under common
control and business combinations not involving enterprises under common control
Business combination involving entities under common control: The assets and liabilities acquired by the merging party
in business combination (including goodwill incurred in the acquisition of the merged party by ultimate controlling party)
shall be measured at the book value of the assets and liabilities of the merged party in the consolidated financial
statements of the ultimate controlling party on the date of combination. The difference between the book value of the
net assets obtained and the book value of the consideration paid for the combination (or total nominal value of the
issued shares) is adjusted to capital premium in capital reserve. Adjustments shall be made to retained earnings in the
event that the share premiums in the capital reserves are not sufficient for write-down.Business combination involving entities not under common control: The cost of combination is the fair value of the
assets paid the liabilities incurred or assumed and the equity securities issued by the acquirer to acquire the control
of the acquiree on the date of acquisition. Where the cost of combination is higher than the fair value of the identifiable
net assets acquired from the merging party in business combination such difference shall be recognized as goodwill;
where the cost of combination is less than the fair value of the identifiable net assets acquired from the merging party
in business combination such difference shall be charged to the profit or loss for the period. The identifiable assets
liabilities and contingent liabilities of the acquiree obtained in the combination that satisfy the recognition criteria shall
be measured by the fair value on the date of acquisition.
882023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.
6. Preparation method of consolidated financial statements
(1) Scope of Consolidation
The scope of consolidation of the consolidated financial statements is based on controlling interests and includes the
Company and all the subsidiaries. Control means that the Company has the power with respect to the investee to
obtain variable returns by engaging in relevant activities of the investee and has the ability to influence the amount of
its returns by applying its power with respect to the investee.
(2) Procedures of Consolidation
The Company 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 financ ial 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.* 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.* Disposal of Subsidiaries or Business
892023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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:
ⅰ. These transactions are achieved at the same time or the mutual effects on each other are considered;
ⅱ. A complete set of commercial results can be achieved with reference to the series of transactions as a whole;
ⅲ. Occurrence of a transaction depends on the occurrence of at least one of the other transactions;
ⅳ. One transaction recognized separately is not economical but it is economical when considered together with other
transactions.If multiple transactions are recognized as a package deal these transactions shall be subject to accounting treatment
as a transaction to dispose of the subsidiaries and lose control. The differences between the price on each disposal
and disposal of investment on the subsidiary's net assets shall be recognized in other comprehensive income in the
consolidated financial statements and included in profit or loss for the period when the control is lost.If the transactions are not a package deal accounting treatment for partial disposal of equity investments of the
subsidiary without losing control shall be applied before control is lost. When the control is lost general accounting
treatment for disposal of a subsidiary shall be used.* 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.* Partial Disposal of Equity Investment in Subsidiaries without Losing Control
The difference between the disposal consideration and the share of net assets in the subsidiaries calculated from
disposal of long-term equity investment as of the date of acquisition or combination date shall be adjusted to share
premium in the capital reserve in the consolidated balance sheet. Adjustments shall be made to retained earnings in
the event that the share premiums in the capital reserves are not sufficient for write-down.
7. Classification of joint venture arrangement and accounting treatment methods for joint
operation
Joint venture arrangement is classified into joint operation and joint venture.Joint operation means the joint venture arrangement in which the joint venture parties have the assets and assume the
liabilities related to such arrangement.The Company recognizes the following items related to the share of interests in the joint operation:
(1) The assets separately held by the Company and assets jointly held as recognized by the share of the Company;
902023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(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 - 19. Long-term equity investment.
8. Recognition criteria of cash and cash equivalents
Cash means the cash on hand and deposits that are available for payment at any time of the Company. Cash
equivalents mean the investments held by the Company which are short-term highly liquid easy to be converted into
known amounts of cash and have little risk of value change.
9. Conversion of transactions and financial statements denominated in foreign currencies
(1) Foreign currency transactions
Foreign currency transactions shall be translated into functional currency at the spot exchange rate on the day when
the transactions occurred.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.For disposal of overseas operation the translation difference as stated in the foreign currency financial statements
relating to overseas operation is accounted for in the profit and loss account in the current period from owners' equity
items.
10. Financial instruments
A financial asset financial liability or equity instrument is recognized when the Company becomes a party to the
financial instrument contract.
(1) Classification of the financial instruments
According to the Company's business model for management of the financial assets and the contractual cash flow
features of the financial assets the financial assets when initially recognized are classified as: financial assets at
amortized cost financial assets at fair value through other comprehensive income (debt instruments) and financial
assets at fair value through profit or loss.The financial assets which satisfy the following conditions and are not designated as financial assets at fair value
through profit or loss will be classified by the Company as financial assets at amortized cost:
－ The business model is designed to collect the contractual cash flow;
－ The contractual cash flow is only used to pay the principal and the interests based on the outstanding principal
amount.The financial assets which satisfy the following conditions and are not designated as financial assets at fair value
through profit or loss will be classified by the Company as the financial assets (equity instruments) at fair value through
other comprehensive income:
－ The business model is designed to both collect the contractual cash flow and sell the financial assets;
912023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
－ The contractual cash flow is only used to pay the principal and the interests based on the outstanding principal
amount.For non-trading investments in equity instruments the Company may at the time of initial recognition irrevocably
designate them as financial assets (equity instruments) at fair value through other comprehensive income. Such
designation is based on the individual investments and relevant investments fall within the definition of the equity
instrument from the perspective of the issuer.Except for the financial assets at amortized cost and financial assets at fair value through other comprehensive
income all the remaining financial assets are classified as the financial assets at fair value through profit or loss. At the
time of initial recognition the financial assets which should have been classified as financial assets at amortized cost
or financial assets at fair value through other comprehensive income can be irrevocably designated by the Company
as financial assets at fair value through profit or loss if the accounting mismatch can be eliminated or significantly
reduced.The financial liabilities when initially recognized are classified as: financial liabilities at fair value through profit or loss
and financial liabilities at amortized cost.Financial liabilities which meet one of the following conditions will be when initially measured designated as financial
liabilities at fair value through profit or loss:
1) Such designation may be able to eliminate or significantly reduce the accounting mismatch.
2) The portfolio of financial liabilities or the portfolio of financial assets and financial liabilities shall be subject to
management and performance evaluation on the basis of fair value according to the enterprise risk management or
investment strategy contained in the formal documentations and a report shall be made to the key management
personnel within the enterprise on this basis.
3) Such financial liabilities shall contain embedded derivatives to be split separately.
(2) Recognition and measurement of financial instruments
* Financial assets at amortized cost
Financial assets at amortized cost include notes receivable accounts receivable other receivables long-term
receivables and creditors investment which shall be initially measured at fair value and the relevant transaction
expenses should be initially capitalized; The accounts receivable that do not contain material financing compositions
and those for which the Company decides to not take into account the financing compositions of no more than one
year shall be initially measured at the contract transaction price.The interest calculated by effective interest method during the holding period is recorded into the current profit and loss.At the time of recovery or disposal the difference between the price obtained and the book value shall be included in
the current profit or loss.* 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.* Financial assets measured at fair value and whose changes are included in other comprehensive income (equity
instruments)
922023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.* Financial assets at fair value through profit or loss in this period
Financial assets at fair value through profit or loss include trading financial assets derivative financial assets and
other non-current financial assets. They are initially measured at fair value and the transaction expenses related to
them are included in the current profit 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.* 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.* Financial liabilities at amortized cost
Financial liabilities at amortized cost include short-term loans notes payable accounts payable other payables long-
term loans bonds payable and long-term payables. They are initially measured at fair value and the transaction
expenses shall be initially capitalized.The interest calculated by effective interest method during the holding period is recorded into the current profit and loss.Upon derecognition the difference between the consideration paid and the book value of these financial liabilities is
included in the current profit or loss.
(3) Derecognition and transfer of financial assets
When one of the following conditions is met financial assets are derecognized by the Company:
－ The contractual right to receive cash flows from financial assets is terminated;
－ The financial assets have been transferred and nearly all the risks and rewards related to the ownership of the
financial assets have been transferred to the transferee;
－ The financial assets have been transferred and although the Company neither transfers or retains all the risks and
rewards related to the ownership of the financial assets the Company retains no control of the financial assets;
The financial assets when transferred will not be derecognized if the Company has retained nearly all the risks and
rewards related to the ownership of the financial assets.The substance-over-form principle shall be adopted while making judgment on whether the transfer of financial assets
satisfies the above conditions for termination of recognition.The transfer of financial assets can be classified into entire transfer and partial transfer. If the transfer of an entire
financial asset satisfies the conditions for termination of recognition the difference between the two amounts below
shall be recorded into profit or loss for the period:
* The book value of the financial asset transferred;
* 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 whose changes are included in other comprehensive income (debt instruments)).
932023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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:
* The book value of the recognition terminated portion;
* The sum of consideration of the derecognized portion and the corresponding portion of accumulated change in fair
value previously recorded into owners' equity (in cases where the transferred financial assets are financial assets
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
When the current obligation under a financial liability is completely or partially discharged the recognition of the whole
or relevant portion of the liability is terminated; an agreement is entered between the Company and a creditor to
replace the original financial liabilities with new financial liabilities with substantially different terms terminate the
recognition of the original financial liabilities as well as recognize the new financial liabilities.If all or part of the contract terms of the original financial liabilities are substantially amended the recognition of the
original financial liabilities will be terminated in full or in part and the financial liabilities whose terms have been
amended shall be recognized as a new financial liability.When recognition of financial liabilities is terminated in full or in part the difference between the book value of the
financial liabilities terminated and the consideration paid (including transferred non-cash assets or new financial liability)
is recognized in profit or loss for the current period.Where the Company repurchases part of its financial liabilities the book value of such financial liabilities will be
allocated according to the relative fair value between the continued recognized part and terminated part on the
repurchase date. The difference between the book value of the financial liabilities terminated and the consideration
paid (including transferred non-cash assets or new financial liability) is recognized in profit or loss for the current period.
(5) Method of determining the fair values of financial assets and liabilities
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active
market. The fair value of a financial instrument that is not traded in an active market is determined by using a valuation
technique. The Company uses the valuation technique when it is applicable under current conditions and there are
enough available data and other information to support and the technique should maximize the use of relevant
observable. It chooses the inputs which are consistent with the asset or liability's characteristics considered by market
participants in the transaction of the relevant asset or liability and makes the maximum use of relevant observable
inputs. Unobservable inputs are used under the circumstance that the relevant observable inputs cannot be obtained
or not feasible.
(6) Test method and accounting treatment for impairment of financial assets
The Company estimates the expected credit loss on the financial assets at amortized cost the financial assets at fair
value through other comprehensive income (debt instruments) and the financial guarantee contracts either alone or in
combination.Taking into the reasonable and well-grounded information including past matters current situation and prediction of
future economic conditions the Company calculates the possibly weighted amount of the present value of the
difference between the cash flows receivable under the contract and the cash flows expected to be received taking
the risk of default as the weight and recognizes the expected credit loss.If the credit risk of this financial instrument has been significantly increased upon initial recognition the Company
measures its loss provision in accordance with the amount equivalent to the expected credit loss of the financial
942023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
instrument throughout the duration; if the credit risk of this financial instrument is not significantly increased upon initial
recognition the Company will measure the loss provision of this financial instrument by the amount of its expected
credit loss in the 12 months to come. The increased or reversed amount of the loss provision resulting therefrom is
included in the current profit or loss as the impairment loss or profit.By comparing the risk of default of financial instruments on the balance sheet date with the risk of default on the initial
recognition date the Company determines the relative change in the risk of default over the expected life of financial
instruments to assess whether the credit risk of financial instruments has increased significantly since initial recognition.If the financial instrument becomes overdue for more than 30 days the Company believes that the credit risk of this
financial instrument has been significantly increased unless there are concrete evidences that the credit risk of this
financial instrument has not been significantly increased upon initial recognition.If the financial instrument carries low credit risk at the balance sheet date the Company believes that the credit risk of
this financial instrument is not significantly increased upon initial recognition.If there are objective evidences showing that a certain financial asset has been subject to credit impairment the
Company will accrue impairment provision for this financial asset on the individual asset basis.The Company will always measure the loss provision for the accounts receivable and contract assets arising from the
transactions regulated by "Accounting Standard for Business Enterprises No.14 — Revenue" (2017) whether they
contain material financing compositions or not by the amount of the expected credit loss throughout the duration.For the lease receivables the Company will always measure the loss provision for the accounts receivable by the
amount of the expected credit loss throughout the duration.If the Company no longer reasonably expects that the cash flow of the financial asset contract can be recovered as a
whole or in part the book balance of such financial assets will be directly reduced.
11. Notes receivable
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial
instruments
12. Accounts receivable
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial
instruments
13. Receivables financing
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial
instruments
14. Other receivables
Determination method and accounting treatment for the expected credit loss of other receivables
Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial
instruments
15. Inventories
(1) Category of inventory
952023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Inventories are classified as raw materials commodity stocks products in progress and materials commissioned for
processing.The inventories are initially measured at cost which comprises the cost of purchase cost of conversion and other
expenditure incurred in bringing the inventories to their present location and condition.
(2) Determination of cost
Cost of inventories is determined using the weighted average method.
(3) Basis for the determination of net realizable value and different type of inventories
At the balance sheet date inventories are measured at the lower of cost and net realizable value. When the cost of
inventories is higher than their net realizable value reserve for stock depreciation shall be accrued. The net realizable
value means the amount after deducting the estimated cost of completion estimated selling expenses and relevant
taxes from the estimated selling price of inventories in the daily activities.Net realizable value of held-for-sale commodity stocks such as finished goods goods-in-stock and held-for-sale raw
materials during the normal course of production and operation shall be determined by their estimated sales less the
related selling expenses and taxes; the net realizable value of material inventories which need to be processed
during the normal course of production and operation shall be determined by the amount after deducting the
estimated cost of completion estimated selling expenses and relevant taxes from the estimated selling price of
finished goods; the net realizable value of inventories held for execution of sales contracts or labor contracts shall be
calculated on the ground of the contracted price. If an enterprise holds more inventories than the quantity stipulated in
the sales contract the net realizable value of the exceeding part shall be calculated on the ground of general selling
price.If the factors influencing the write-down of the inventory value have disappeared resulting in higher net realizable
value of inventories than their book value after the reserve for stock depreciation is accrued a reversal shall apply in
the amount of reserve for stock depreciation previously accrued and the reserved amount shall be included in the
current profit or loss.
(4) Inventory system
The perpetual inventory system is adopted.
(5) Amortization of low-value consumables and packaging materials
* Low-value consumables are amortized using the immediate write-off method;
* Packaging materials are amortized using the immediate write-off method.
16. Contract assets
(1) Recognition method and criteria of contract assets
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between
performance obligations and customer payments. Considerations that the Company has the right to collect for
commodities transferred or services provided to customers (and such right depends on other factors than passing of
time) are presented as contract assets. The contract assets and contract liabilities under the same contract are
presented in net amount. The Company separately presents the right possessed to collect consideration from
customers unconditionally (only depending on the passing of time) as accounts receivable.
(2) Determination method and accounting treatment method for the expected credit loss of contract assets
962023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
For the determination method and accounting treatment method for the expected credit loss of contract assets refer to
this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial instruments.
17. Contract costs
The contract costs comprise the contract performance cost and the cost to obtain a contract.The costs incurred by the Company for contract performance which fall outside the scope of the enterprise accounting
standards such as inventories fixed assets or intangible assets will be identified as an asset of the contract
performance costs upon satisfying all of the following conditions:
* The costs are directly related to one existing contract or one contract that is expected to be obtained.* The costs enrich the Company's resources for future contract performance.* The costs are estimated to be recovered.The incremental costs which are incurred by the Company to obtain the contract and are expected to be recovered will
be identified as an asset of the costs to obtain a contract.The assets related to the contract costs will be amortized on the same basis for recognition of the income from
commodities or services related to the assets; but if the amortization period of the costs to obtain the contract is no
more than 1 year the Company will include such costs in the current profit or loss once occurred.In case that the book value of assets related to contract costs is higher than the difference between the two items
below the Company will accrue the impairment provision for the extra part and recognize that part as impairment loss:
(1) Estimated residual consideration to be obtained from transfer of commodities or services related to the assets;
(2) Estimated costs incurred from transfer of relevant commodities or services.
If the factors for impairment in the previous periods are subsequently changed making the aforesaid difference higher
than the book value of the assets the Company will reverse the accrued impairment provision and include it in the
current profit or loss provided that the book value of the reversed assets does not exceed the book value of the assets
without impairment provision accrued on such date of reversal.
18. Holding assets for sale
An asset of which the book value is recovered mainly through sale (including exchange of non-monetary asset of a
commercial nature) rather than non-continuous use of a non-current asset or disposal group is classified as a holding
asset for sale.A non-current asset or disposed group is classified by the Company as holding for sale if it meets the following criteria
at the same time:
(1) Immediate sale could be made under the current circumstances in accordance with the convention of selling such
kind of assets or disposal groups in similar transactions;
(2) Selling is 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
972023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.
19. Long-term equity investment
(1) Joint control or significant influence criterion
Joint control is the contractually agreed sharing of control of an arrangement and exists only when requiring the
unanimous consent of the parties sharing control before making decisions about the relevant activities of the
arrangement. The Company together with the other joint venture parties can jointly control over the investee and are
entitled to the right of the net assets of the investee as the investee is joint venture of the Company.Significant influence refers to the power to participate in making decisions on the financial and operating policies of an
enterprise but not the power to control or jointly control the formulation of such policies with other parties. Where the
Company can exercise significant influence over the investee the investee is an associate of the Company.
(2) Determination of initial investment cost
* 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.* 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
* Long-term equity investment calculated by cost method
982023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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.* 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 impairment of assets shall be fully recognized.The net loss incurred by the Company to the joint ventures or affiliates is capped when the carrying amount of long-
term equity investment and the long-term equity that substantially constitutes the net investment in the joint ventures or
affiliates have been wrote down to zero except to the extent that the Company has an additional loss obligation. If the
joint ventures or affiliates later realize net profit the Company will resume recognition of the income share after the
income share makes up the unrecognized loss share.* 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.
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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.
20. Investment property
Investment property refers to the real estate held to generate rental income or capital appreciation or both including
leased land use rights land use rights held for transfer after appreciation and leased buildings (including buildings that
are leased after completion of self-construction or development activities and buildings in construction or development
that are used for rental in the future).The Company adopts the cost mode to measure the existing investment property. The subsequent expenditure related
to the investment property will be included in the cost of the investment property when relevant economic benefits are
likely to flow in and costs can be measured reliably or otherwise be included in the current profit or loss when occurred.Investment property measured at cost - buildings held for leasing shall adopt the same depreciation policy for fixed
assets of the company land use rights held for leasing shall adopt the same amortization policy for the intangible
assets.
21. Fixed assets
(1) Determination and initial measurement of fixed assets
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 asset is recognized
when it meets the following conditions at the same time: * It is probable that the economic benefits associated with
1002023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
the fixed asset will flow to the enterprise; * 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 apply and each part is depreciated separately.
(3) Disposal of fixed assets
When fixed assets are disposed of or when no economic benefits can be expected through use or disposal thereof
such fixed assets will be derecognized. The income from disposal of the fixed assets through sale transfer scrapping
or damage with the book value thereof and relevant taxes deducted is included in the current profit or loss.
22. Projects under construction
The projects under construction are measured at the actual cost. The actual cost comprises the building cost
installation cost borrowing cost qualified for capitalization and other necessary expenditures incurred to bring the
projects under construction to the conditions before they are made ready for the intended use. The projects under
construction will be converted into fixed assets when they are ready for intended use and will be depreciated from the
next month on.
23. Borrowing costs
(1) Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to the acquisition construction or production
of assets qualified for capitalization the costs will be capitalized and included in the costs of the related assets. Other
borrowing costs shall be recognized as expense in the period in which they are incurred and included in profit or loss
for the current period.Assets qualified for capitalization are assets (fixed assets investment property inventories etc.) that necessarily take
a substantial period of time for acquisition construction or production to get ready for their intended use or sale.
(2) Capitalization period of borrowing costs
The capitalization period shall refer to the period between the commencement and the cessation of capitalization of
borrowing costs excluding the period in which capitalization of borrowing costs is temporarily suspended.Capitalization of borrowing costs begins when the following three conditions are fully satisfied:
1012023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
* 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;
* Borrowing costs have been incurred;
* Acquisition construction or production necessary to enable the asset 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 costs commences.
(4) Calculation of capitalization rate and amount of borrowing costs
Specific borrowings for the acquisition construction or production of assets qualified for capitalization borrowing costs
of the specific borrowings actually incurred in the current period minus the interest income earned on the unused
borrowing loans as a deposit in the bank or as investment income earned from temporary investment will be used to
determine the amount of borrowing costs for capitalization.General borrowings for the acquisition construction or production of assets qualified for capitalization the to-be-
capitalized amount of interests on the general borrowing shall be calculated and determined by multiplying the
weighted average asset disbursement of the part of the accumulative asset disbursements minus the specifically
borrowed loans by the capitalization rate of the general borrowing used. The capitalization rate shall be calculated and
determined according to the weighted average interest rate of the general borrowing.During the capitalization the difference between the principal and interest of special borrowings in foreign currency
shall be capitalized and included in the cost of assets qualified for capitalization. The difference between the principal
and interest of the borrowings in foreign currency other than the special borrowings in foreign currency shall be
included in the current profit or loss.
24. Intangible assets
(1) Valuation method of intangible assets
* 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.* 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.
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(2) Estimation of service life of the intangible assets with limited service life
Item Estimated useful lives Basis
Land use rights 40 or 50 years Land use certificate
Non-patented technology 5-10 years Expected benefited period
Software 2-5 years Expected benefited period
Trademark rights 6 years Expected benefited period
Software copyright 10 years Expected benefited period
For an intangible asset with a finite service life review on its service life and amortization method is performed at the end
of each end.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.
(4) 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.
(5) 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:
* Complete such intangible asset to make it technically feasible for use or for sale;
* There is intention to complete the intangible asset for use or sale;
* 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;
* 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;
* 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.
25. Impairment of long-term assets
Long-term assets such as long-term equity investment investment properties that are measured at cost fixed assets
construction in progress intangible assets with limited service life and oil and gas assets are tested for impairment if
there is any indication that an asset may be impaired at the balance sheet date. If the result of the impairment test
indicates that the recoverable amount of the asset is less than its book value a provision for impairment and an
impairment loss are recognized for the amount by which the asset's book value exceeds its recoverable amount. The
recoverable amount is the higher of an asset's fair value less costs to sell and the present value of the future cash
flows expected to be derived from the asset. Provision for asset impairment is determined and recognized on the
1032023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 allocate it to the sets of asset groups. Relevant asset groups or the sets of asset
groups mean those can benefit from the synergy of business combination.For the purpose of impairment test on the relevant asset groups or the sets of asset groups containing goodwill if any
evidence shows that the impairment of asset groups or sets of asset groups related to goodwill is possible an
impairment test will be made first on the asset groups or sets of asset groups not containing goodwill thus calculating
the recoverable amount and comparing it with the relevant book value so as to recognize the corresponding
impairment loss. An impairment test will be made on the asset groups or sets of asset groups containing goodwill to
compare the book value of these asset groups or sets of asset groups with the recoverable amount. Where the
recoverable amount is lower than the book value the amount of impairment loss shall set off and be apportioned to the
book value of the goodwill in the asset groups or sets of asset groups and then set off the book value of other assets
pro rata according to the proportion of the book value of other assets other than the goodwill in the asset groups or
sets of asset groups.Once the above asset impairment loss is recognized it will not be reversed in the subsequent accounting periods.
26. Long-term deferred expenses
Long-term deferred expenses are expenses which have occurred but will benefit over 1 year and shall be amortized
over the current period and subsequent periods.The amortization period and amortization method of various expenses are:
Item Amortization method Amortization period
Improvement expenditure of fixed assets
Straight-line method By period of benefit
leased by operating lease
Renovation Cost Straight-line method By period of benefit
27. Contract liabilities
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between
performance obligations and customer payments. The Company lists the obligation to transfer commodities or offer
services to customers for the consideration received or receivable from customers as contract liabilities. The contract
assets and contract liabilities under the same contract are presented in net amount.
28. Employee compensation
(1) Accountant 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
1042023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
* Defined contribution plan
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.* 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.
29. Estimated liabilities
The Company shall recognize the obligations related to contingencies as estimated liabilities when all of the following
conditions are satisfied:
(1) The obligation is a present obligation of the Company;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities shall be initially measured at the best estimate of the expenditure required to settle the related
present obligation.Factors pertaining to a contingency such as risk uncertainties and time value of money shall be taken into account as
a whole in reaching the best estimate. Where the effect of the time value of money is material the best estimate shall
be determined by discounting the related future cash outflow.The expenses required have a successive range in which the possibilities of occurrence of each result are the same
and the best estimate should be determined as the middle value for the range; in other circumstances the best
estimate will be handled as follows respectively:
1052023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
* For the contingencies involving a single item it will be determined according to the amount most likely to occur.* For the contingencies involving several items it will be determined according to the possible results and the relevant
possibilities.Where some or all of the expenditure required to settle an estimated liability is expected to be reimbursed by a third
party the reimbursement is separately recognized as an asset when it is virtually certain that the reimbursement will
be received. The amount recognized for the reimbursement is limited to the book value of the estimated liability.The Company will review the book value of the estimated liabilities on the balance sheet date and if there are concrete
evidences that such book value cannot reflect the current best estimate the book value will be adjusted according to
the current best estimate.
30. Share-based payment
The Company's share-based payment refers to a transaction in which an enterprise determines the liabilities on the
basis of equity instruments granting or bearing for the acquisition of service from its employees or other parties. The
Company's share-based payment is equity-settled.As to an equity-settled share-based payment in return for services of employees calculation will be based on the fair
value of the equity instrument granted to the employees. The share-based payment transactions vested immediately
after the date of grant will be included in the relevant cost or expense based on the fair value of the equity instrument
on the date of grant and the capital reserve will be increased accordingly. For the services within the waiting period or
the share-based payment transactions that may only be vested when the specified performance conditions are met
after the date of grant the Company will include the services obtained in the current period in relevant cost or expense
and increase the capital reserve at the fair value on the date of grant according to the best estimate of the number of
the exercisable equity instruments on each balance sheet date in the waiting period.If the terms of the equity-settled share-based payment are amended the Company shall recognize the services
received at least based on the situation before the amendment was made. In addition any amendment resulting in the
increase of the fair value of the equity instrument granted or changes that are beneficial to the staff on the amendment
date will be recognized as an increase in the service received.If the equity instruments vested are canceled during the waiting period the Company will take the vested equity
instruments canceled as accelerated exercise and immediately include the amount to 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.
31. Income
(1) Accounting policies for revenue recognition and measurement
If the Company performed the obligations in the contract revenue shall be recognized when the customer acquires the
right of control over relevant commodities or services. Acquisition of control over relevant commodities or services
means gaining the ability to direct the use of such commodities or services and obtain nearly all the economic benefits
therefrom.
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If the contract contains two or more performance obligations the Company shall apportion the transaction price to
each individual performance obligation on the contract commencement date according to the relative proportion of the
individual selling price of the commodities or services promised by each individual performance obligation. The
Company measures the revenue according to the transaction price apportioned to each individual performance
obligation.The transaction price refers to the amount of consideration that the Company is expected to be entitled to collect due
to the transfer of commodities or services to customers excluding the payments collected on behalf of third parties and
the payments expected to be returned to customers. The Company will determine the transaction price according to
the contract provisions and its past practices and may take into account the impact from the variable consideration
the major financing components in the contract the non-cash consideration the payable customer consideration and
other factors when determining the transaction price. The Company shall determine the transaction price containing
the variable consideration according to the amount not exceeding the amount by which the accumulative recognized
revenue is much more unlikely to be significantly reversed when relevant uncertainties are eliminated. If there are
major financing components in the contract the Company shall determine the transaction price according to the
amount due assumed to be paid in cash when the customer acquires the control over the commodities or services
and shall amortize the difference between such transaction price and the contract consideration using the effective
interest rate method during the contract period.When one of the following conditions is met it belongs to the performance obligation within a certain period of time or
otherwise it belongs to the performance obligation at a certain point of time:
* The customer acquires and consumes the economic benefits arising from the Company's performance while the
company performs the contract.* The customer can control the commodities in progress during the Company's performance.* The commodities produced by the Company during the performance possess have irreplaceable usage and the
company has the right to collect payment for the performance part accumulated so far during the entire contract period.For the performance obligations performed within a certain period of time the Company shall recognize the revenue
according to the performance progress within that period of time except that the performance progress cannot be
reasonably determined. The Company will determine the performance progress through the output or input method by
taking into account the nature of commodities or services. If the performance progress cannot be reasonably
recognized and the costs incurred are expected to be compensated the Company will recognize the revenue
according to the amount of costs incurred until the performance progress can be reasonably recognized.For the performance obligations performed at a certain point of time the Company will recognize the revenue when
the customer acquires the right of control over relevant commodities or services. While determining whether the
customer has acquired the control over the commodities or services the Company shall take the following into
consideration:
* The Company has the current collection right for the such commodities or services that is the customer has the
current payment obligation for such commodities or services.* The Company has transferred the legal title of such commodities to the customer that is the customer already has
the legal title of such commodities.
1072023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
* The Company has transferred the physical commodities to the customer that is the customer has possessed the
physical commodities.* The Company has transferred the major risks and rewards of the commodity title to the customer that is the
customer has acquired the major risks and rewards of the commodity title.* The customer has accepted such commodities or services.
(2) Specific principles
* Principle for recognizing revenue from the domestic sales of standard products: The Company sells its security
standard products 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.* Principle for recognizing revenue from the overseas sales of standard products: If the domestic company makes
direct export the FOB and CIF terms are generally adopted and the Company recognizes the sale income after the
product is declared and exported. If a foreign subsidiary sells the goods abroad the goods will be sent to the customer
or the customer will collect the goods according to the delivery method agreed with the customer and the income will
be recognized when the customer receives and accepts the goods.* Principle for recognizing system-integrated sales revenue: The sales of the system-integrated products of the
Company include providing the supporting services such as plan design supporting products installation debugging
and system trial running. The sales income will be recognized upon acceptance.* Principle for recognizing the income from labor services: The income is recognized when the labor service is
provided.Difference in the accounting policies for revenue recognition arising from different business models of the same kind of
business
N/A
32. Government subsidies
(1) Type
Government grants are monetary assets and non-monetary assets acquired by the Company from the government
free of charge. Government grants are classified into government grants related to assets and government grants
related to revenue.Government grants related to assets refer to government grants acquired by the Company for the purpose of
purchasing or constructing or otherwise forming long-term assets. Government grants related to revenue refer to the
government grants other than those related to assets.
(2) Confirmation of time point
Government grants related to assets will be measured at the actual amount of money received at the time of receipt.The assets (bank deposits) and deferred income shall be period by period included in the profits and losses of the
current period in a reasonable and systematic manner from the time the assets are available for use (those related to
1082023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 amount receivable for government grants obtained under fixed quota standards otherwise they will be recognized
as profit and loss of the current period when it is actually received.
(3) Accounting treatment
Government grants related to assets shall write off the book value of relevant assets or be recognized as deferred
income. When recognized as deferred income the government grant related to assets will be period by period credited
to the profits and losses of the current period in a reasonable and systematic manner within the service life of relevant
assets (those related to the Company's daily activities shall be recognized as other income; those unrelated to the
Company's daily activities shall be recognized as non-operating 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:
* 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.* 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.
33. Deferred income tax assets / deferred income tax liabilities
Income tax comprises current income tax and deferred income tax. Except for the income taxes arising from the
business combination and the transactions or matters that are directly included in the owner's equity (including other
comprehensive income) the Company will include the current income tax and deferred income tax into the current
profit or loss.Deferred income tax assets and deferred income tax liabilities will be calculated and recognized according to the
difference (temporary difference) between the tax basis and the book value of assets and liabilities.
1092023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 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:
* Initial recognition of the goodwill;
* 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 difference is much more unlikely to be reversed in the predictable future. Deductible temporary
difference related to investment in the subsidiaries affiliates and joint ventures will be recognized as deferred income
tax assets when such temporary difference is much more likely to be reversed in the predictable future and is much
more likely to be obtained to deduct the taxable income of the deductible temporary difference.On the balance sheet date the deferred income tax assets and the deferred income tax liabilities will be measured at
the tax rate applicable during the recovery of relevant assets or payment of relevant liabilities as expected according to
the provisions of the tax law.On the balance sheet date the Company will review the book value of the deferred income tax assets. If no sufficient
taxable income is likely to be obtained to offset the benefits of deferred income tax assets in the future the book value
of deferred income tax assets shall be written down. The amount written down shall be reversed when it is likely to
obtain sufficient taxable income.After granted the legal rights of net settlement and with the intention to use net settlement or obtain assets and repay
debt at the same time the net amount after offsetting its current income tax assets and current income tax liabilities
shall be recorded.On the balance sheet date the deferred income tax assets and the deferred income tax liabilities will be presented by
the net amount after offsetting when the following conditions are fulfilled:
* The taxpayer is granted the legal rights to settle current income tax assets and current income tax liabilities on a net
basis;
* 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.
34. Lease
Lease means the contract by which the lessor transfers the right to use the assets to the lessee for a given period to
obtain the consideration. On the commencement of the contract the Company will assess whether the contract is a
lease or contains the lease. If a party to the contract conveys the right to control the use of one or more identified assets
for a given period to obtain a consideration this contract is a lease or contains the lease.
1102023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
If a contract contains several individual leases the Company will split the contract and conduct accounting treatment of
each individual lease separately. If a contact contains both lease and non-lease the lessee and the lessor will split the
lease and non-lease parts.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:
* 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;
* Other terms and conditions of lease are identified without significant change after taking the qualitative and quantitative
factors into full account.
(1) The Company as a lessee
* Right-of-use assets
The Company recognizes the right-to-use assets for the lease other than short-term lease and low-value asset lease on
the commencement of the lease term. The right-to-use assets are initially measured at cost which includes:
* Initial measurement amount of lease liabilities;
* The lease payment paid on or before the commencement of the lease term; if there are lease incentives the relevant
amount of lease incentives enjoyed shall be deducted;
* Initial direct cost incurred by the Company;
* The estimated costs incurred by the Company for dismantling and removing the leased asset restoring the site where
the leased asset is located or restoring the leased asset to the state agreed in the lease terms but excluding the cost
incurred to produce the inventory.The Company will depreciate the right-to-use assets through the straight-line method. If it can be reasonably recognized
that the title of the leased asset is acquired at the expiration of the lease term the Company shall accrue depreciation
within the remaining service life of the leased asset; or otherwise the leased asset shall be depreciated within the shorter
of the lease term and the remaining service life of the leased asset.The Company will determine whether the right-of-use assets are impaired and conduct accounting treatment over the
identified impairment loss according to the principles set out in this section Financial Report - V. Significant Accounting
Polices and Accounting Estimates - 25. Impairment of long-term assets.* Lease liabilities
The Company recognizes the lease liabilities for the lease other than short-term lease and low-value asset lease on the
commencement of the lease term. Lease liabilities shall be initially measured at the present value of the unpaid lease
payments. Lease payments include:
* Fixed payment (including actual fixed payment) and if there are lease incentives the relevant amount of lease
incentives shall be deducted;
* Variable lease payment depending on the index or ratio;
* Predicted payment on the basis of the guaranteed residual value provided by the Company;
* Exercise price of the call option provided that the Company will exercise such option as reasonably determined;
* Payment for exercise of the lease termination option provided that the lease term reflects the Company’s future
exercise of the lease termination option.The interest rate implicit in lease is applied by the Company as the discount rate. If the interest rate implicit in lease
cannot be reasonably determined the Company's interest rate on incremental borrowings is applied as the discount rate.The Company shall calculate the interest expense of the lease liabilities during each period of the lease term at a fixed
periodic interest rate and include it in the current profit or loss or relevant asset cost.
1112023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The variable lease payment which is not included in the measurement of lease liabilities shall be included in the current
profit or loss or relevant asset cost when actually incurred.If any of the following circumstances happens on commencement of the lease term the Company will remeasure the
lease liabilities and adjust the corresponding right-of-use assets and if the book value of the right-of-use assets has
been reduced to zero but the lease liabilities still need to be further reduced the difference shall be included in the
current profit or loss:
* When the assessment result of the call option renewal option or termination option is changed or the actual exercise of
the aforesaid option is inconsistent with the original assessment result and the Company remeasures the lease liabilities
at the present value worked out according to the changed lease payment and the revised discount rate;
* When there are changes in the actual fixed payment the estimated payable amount of guaranteed residual value or
the index or ratio applied to determine the amount of lease payments the Company remeasures the lease liabilities
at the present value worked out according to the changed lease payment and the original discount rate. If the
change in the lease payment originates from the change in the floating interest rate the present value will be
calculated using the revised discount rate.* Short-term lease and low-value asset lease
The Company chooses not to recognize the right-of-use assets and lease liabilities for the short-term lease and low-
value asset lease and records relevant lease payment into the current profit or loss or relevant asset cost according to
the straight-line method in each period of the lease term. Short-term lease means the lease of no more than 12 months
and excluding the call option on the commencement of the lease term. Low-value asset lease means a lease of lower
value when the single leased asset is brand-new. If the Company sublets or is expected to sublet the leased assets the
original lease is not a low-value asset lease.* Lease change
If the lease is changed and meets all of the following conditions the Company will conduct accounting treatment with
respect to such lease change as a single lease:
* Such lease change has expanded the scope of lease by adding the right to use one or more leased assets;
* The increased consideration and the separate consideration for the expanded part of the scope of lease shall be
equivalent to the amount adjusted according to this contract.If the lease change is not 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) The Company as a lessor
On commencement of the lease term the Company will divide the lease into financial lease and operating lease.Financial lease means the lease that has substantially transferred almost all the risks and rewards related to the title of
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.* Accounting treatment of operating lease
The lease receipts for the operating lease will be recognized as the rental income according to the straight-line method
1122023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
during each period of the lease term. The initial direct fee related to the operating lease to be incurred by the Company
will be capitalized and will be apportioned and included in the current profit or loss on the same basis as that for
recognition of the rental income in the lease term. The variable lease payments that are not included in the lease receipts
shall be included in the current profit or loss when they actually occur. In case of a change to the operating lease the
Company will conduct accounting treatment with respect to the changed operating lease as a new lease as of the
effective date of the change and the lease payments received in advance or receivable with respect to the lease before
the change will be taken as the lease receipts for the new lease.* 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 - 10. Financial
instruments.The variable lease payments that are not included in the measurement of the net lease investment shall be included in
the current profit or loss when they actually occur.If the financial lease is changed and meets all of the following conditions the Company will conduct accounting treatment
with respect to such change as a single lease:
* Such change has expanded the scope of lease by increasing the right to use one or more leased assets;
* The increased consideration and the separate consideration for the expanded part of the scope of lease shall be
equivalent to the amount adjusted according to this contract.If the change in the financial lease is not subject to accounting treatment as a single lease the Company will treat the
changed lease in the following circumstances:
* If the change takes effect on commencement of the lease term and the lease is classified as operating lease the
Company will conduct accounting treatment with respect to such lease as a new lease as of the effective date of the
lease change and will take the net lease investment before the effective date of the lease change as the book value of
the leased asset;
* If the change takes effect on the commencement 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 - 10. Financial
instruments.
(3) Sale and leaseback transaction
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to a
sale in accordance with the provisions of this section Financial Report - V. Significant Accounting Polices and Accounting
Estimates - 31. Income.* 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
1132023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
to recognize the transferred asset and recognize a financial liability equal to the transfer income. For accounting
treatment of the financial liabilities refer to this section Financial Report - V. Significant Accounting Polices and
Accounting Estimates - 10. Financial instruments.* 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 treatment with respect to the asset purchase and conduct accounting treatment with respect to the asset
lease according to the policy in the foregoing "2. The Company as a lessor"; if the asset transfer in the sale and
leaseback transaction is not a sale the Company as the lessor shall derecognize the transferred asset but recognize
a financial asset equal to the transfer income. For accounting treatment of the financial assets refer to this section
Financial Report - V. Significant Accounting Polices and Accounting Estimates - 10. Financial instruments.
35. Other significant accounting policies and accounting estimates
(1) Termination of operation
Termination of business is a separately distinguishable constituent part that satisfies one of the following conditions
and that has been disposed of or classified by the Company as held for sale:
* This constituent part represents an independent primary business or a separate principal operating area;
* This constituent part is part of an associated plan to dispose an independent primary business or a separate
principal operating area;
* This constituent part is a subsidiary acquired for resale.The profit or loss from going concern and the profit or loss from discontinued operation will be separately presented in
the income statement. The operating profit or loss and the profit or loss from disposal including impairment loss and
reversed amount from discontinued operation will be presented as the profit or loss from discontinued operation. For
the discontinued operation presented in the current period the Company will present the information previously
presented as the profit or loss from going concern as the profit or loss from discontinued operation during the
comparable accounting period.
(2) Repurchase of the Company's shares
The Company's shares repurchased by the Company for reducing the registered capital or rewarding employees shall
be treated as the treasury shares based on the actual amount paid and shall be checked and registered at the same
time. If the repurchased shares are canceled the difference between the actual amount paid for the repurchase and
the total par value of shares calculated 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 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.
1142023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
36. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□ Applicable □ Not applicable
Contents and causes of changes in
Approval Procedures Notes
accounting policies
The provisions of the Interpretation of
Accounting Standards for Business
Enterprises No.16 that "the
accounting treatment of initial have no financial implications on the
Not applicable.recognition exemption shall not apply Company
to the deferred income tax related to
assets and liabilities arising from a
single transaction"
Other notes:
Since January 1 2023 the Company has implemented the provisions of the Interpretation of Accounting Standards for
Business Enterprises No.16 that "the accounting treatment of initial recognition exemption shall not apply to the
deferred income tax related to assets and liabilities arising from a single transaction" and this change in accounting
policy has no financial implications on the Company.
(2) Changes in significant accounting estimates
□ Applicable □ Not applicable
Ⅵ. Taxes
1. Major categories of taxes and tax rates
Tax Type Taxation basis Tax rate
According to the provisions of the tax
law the sales tax shall be calculated
on the basis of the income by selling
goods and taxable services. After 13% 9% 6% simple collection rate
deducting the input tax that is of 5% simple collection rate of 3%
VAT
allowed to be deducted from the 0% and tax-free
sales tax in the current period the
difference shall be the value added
tax
Urban Maintenance and Construction Actually paid turnover tax 7% 5%
Tax
Taxable income 15% 16.5% 20% 25%
Enterprise Income Tax
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%
1152023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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%
Xinjiang Dahua Zhixin Information Technology Co. Ltd. 15%
Xinjiang Dahua Zhihe Information Technology Co. Ltd. 15%
Xinjiang Dahua Zhitian Information Technology Co. Ltd. 15%
Xinjiang Dahua Huayue Information Technology Co. Ltd. 15%
Xinjiang Dahua Xinzhi Information Technology Co. Ltd. 15%
Inner Mongolia Dahua Zhimeng Information Technology
15%
Co. Ltd.Guangxi Dahua Zhicheng Co. Ltd. 15%
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%
Guizhou Dahua Information Technology 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.
20%
Ltd.Tianjin Dahua Information Technology Co. Ltd. 20%
Chengdu Dahua Zhishu Information Technology Service
20%
Co. Ltd.Chengdu Huazhiwei Technology Co. Ltd. 20%
1162023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Chengdu Dahua Wisdom Information Technology Co.
20%
Ltd.Nanyang Dahua Intelligent Information Technology Co.
20%
Ltd.Zhejiang Huaqi Intelligent Technology Co. Ltd. 20%
Luoyang Dahua Zhiyu Information Technology Co. Ltd. 20%
Other domestic companies 25%
Other overseas companies Applicable to local tax rate
2. Preferential tax rate
(1) According to the Reply on the Filing of the First Batch of High-tech Enterprises in Zhejiang Province in 2020 (Guo
Ke Huo Zi [2020] No. 251) issued by the Office for the Administration of the Certification of National High-tech
Enterprises on December 29 2020 the Company was certified as a high-tech enterprise valid for 3 years. The
corporate income tax for this year was reduced to a rate of 15%.
(2) According to the 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 Reply on the Filing of the First Batch of High-tech Enterprises in Zhejiang Province in 2020 (Guo
Ke Huo Zi [2020] No.251) issued by the Office for the Administration of the Certification of National High-tech
Enterprises on December 29 2020 our subsidiary Zhejiang Huafei Intelligent Technology Co. Ltd. was certified as a
high-tech enterprise with 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 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 Individual 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 that 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.
1172023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Guangxi Dahua Technology Co. Ltd. Zhejiang Huakong Software Co. Ltd. Guizhou Dahua Information Technology
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. and Luoyang Dahua Zhiyu Information Technology Co. Ltd.
(6) 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 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%.
(7) 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 Zhejiang 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.
(8) 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 subsidiaries 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.
1182023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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 2651.58 2535.81
Bank Balance 11445126846.05 7787399232.70
Other Cash and Bank Balances 491735047.67 242476882.26
Total 11936864545.30 8029878650.77
Including: Total Amount
1085422629.751259307799.53
Deposited in Overseas Banks
The total amount
restricted for use due to mortgage 116444661.11 130637542.35
pledge or freeze
Other notes
The amount restricted for use due to mortgage pledge or freeze:
Balance at the end of
Item Closing balance
the previous year
Bid/performance bond 78122041.62 110737143.60
Deposits for notes 5575784.85
Frozen funds 32746834.64 19900398.75
Total 116444661.11 130637542.35
2. Trading Financial Assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through
1470000.001470000.00
profit or loss in this period
Including:
Financial products 1470000.00 1470000.00
Total 1470000.00 1470000.00
3. Notes Receivable
(1) Disclosure of Notes Receivable
Unit: RMB
Item Closing balance Opening balance
Bank Acceptance Notes 515477400.12 631542296.47
Commercial Acceptance Notes 128144501.65 240759774.71
Total 643621901.77 872302071.18
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
Accrued Book Accrued Book
y Percent Percent
Amount Amount proporti value Amount Amount proporti value
age age
on on
Notes
670350100.0026728643621911616100.0039314872302
Receiva 3.99% 4.31%
137.11%235.34901.77343.99%272.81071.18
ble with
1192023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
the Bad
Debt
Provisio
n
Accrue
d
Based
on
Combin
ations
Inclu
ding:
Bank
Accepta 521478 60006 515477 638799 72576 631542
77.79%1.15%70.07%1.14%
nce 089.61 89.49 400.12 974.81 78.34 296.47
Notes
Comme
rcial
1488722072712814427281632056240759
Accepta 22.21% 13.92% 29.93% 11.75%
047.50545.85501.65369.18594.47774.71
nce
Notes
670350100.0026728643621911616100.0039314872302
Total
137.11%235.34901.77343.99%272.81071.18
A combination of provision for bad debts: RMB 26728235.34
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrued proportion
Bank Acceptance Notes 521478089.61 6000689.49 1.15%
Commercial Acceptance
148872047.5020727545.8513.92%
Notes
Total 670350137.11 26728235.34
Please refer to the disclosing methods of other receivables for the information disclosure of bad debts provisions if the
bad debt provisions of notes receivable are made according to the general model of expected credit losses:
□ Applicable □ Not applicable
(2) Provision for bad debts accrued recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Closing
Category Opening balance Recovered or
Accrued Written Off Others balance
Reversed
Bank
Acceptance 7257678.34 1256988.85 6000689.49
Notes
Commercial
Acceptance 32056594.47 11329048.62 20727545.85
Notes
Total 39314272.81 12586037.47 26728235.34
Significant amount of recovered or reversed bad debt provision in this period:
□ Applicable □ Not applicable
1202023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Notes receivable that the Company has pledged at the end of the period
Unit: RMB
Item Pledged amount by the end of period
Bank Acceptance Notes 418288504.80
Total 418288504.80
(4) Notes receivable that the Company has endorsed or discounted at the end of the period
and that have not yet expired on the balance sheet date
Unit: RMB
Derecognised amount at the end of Not derecognised amount at the end
Item
period of period
Bank Acceptance Notes 19193301.61
Total 19193301.61
(5) Notes that are converted by the Company into accounts receivable at the end of the period
for non-performance of the drawer
Unit: RMB
Amount Converted into Accounts Receivable at the End
Item
of the Period
Commercial Acceptance Notes 58671191.08
Total 58671191.08
4. Accounts Receivable
(1) Categorical disclosure of accounts receivable
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
Accrued Book Accrued Book
y Percent Percent
Amount Amount proporti value Amount Amount proporti value
age age
on on
Account
s
receiva
bles
with the
bad
debt 591775 591775 100.00 591779 591779 100.00
3.07%3.20%
provisio 118.50 118.50 % 632.41 632.41 %
n
accrued
based
on
single
item
Inclu
ding:
1212023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Account
s
receiva
ble with
insignifi
cant
single
amount
591775591775100.00591779591779100.00
but 3.07% 3.20%
118.50118.50%632.41632.41%
accrued
for
separat
e
provisio
n of bad
debt
Account
s
receiva
bles
with the
bad
186962669916026178812469415411
debt
34486596.93%82784.14.28%36208136609696.80%57535.13.81%908561
provisio.7502.73.8232.50
n
accrued
based
on
combin
ations
Inclu
ding:
Portfoli
o 2:
Aging 18696 26699 16026 17881 24694 15411
Analysi 344865 96.93% 82784. 14.28% 362081 366096 96.80% 57535. 13.81% 908561
s .75 02 .73 .82 32 .50
Portfoli
o
192883261716026184733061215411
100.00100.00
Total 119984 57902. 362081 145729 37167. 908561
%%.2552.73.2373.50
Individual provision for bad debts: RMB 591775118.50
Unit: RMB
Closing balance
Name Reason for making
Book balance Bad debt provision Accrued proportion
bad debt provision
Expected to be
Customer 1 260153530.00 260153530.00 100.00%
unable to recover
Expected to be
Customer 2 225140645.36 225140645.36 100.00%
unable to recover
Expected to be
Customer 3 49001963.55 49001963.55 100.00%
unable to recover
Expected to be
Customer 4 38688726.59 38688726.59 100.00%
unable to recover
1222023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Expected to be
Customer 5 18790253.00 18790253.00 100.00%
unable to recover
Total 591775118.50 591775118.50
A combination of provision for bad debts: RMB 2669982784.02
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 year (including 1
13759126692.40688087701.825.00%
year)
1 to 2 years 2024351732.54 202435173.25 10.00%
2 to 3 years 990854080.92 297256224.28 30.00%
3 to 4 years 647438547.00 323719273.50 50.00%
4 to 5 years 580447008.58 464357606.86 80.00%
5 years or above 694126804.31 694126804.31 100.00%
Total 18696344865.75 2669982784.02
Please refer to the disclosing methods of other receivables for the information disclosure of bad debts provisions if the
bad debt provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable □ Not applicable
Disclosure by age
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 13759126692.40
1 to 2 years 2024414154.27
2 to 3 years 1018451112.20
3 years or above 2486128025.38
3 to 4 years 656476145.71
4 to 5 years 1086523111.81
5 years or above 743128767.86
Total 19288119984.25
(2) Provision for bad debts accrued recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
balance Accrued Written Off Others balance
Reversed
Bad debt 3061237167 199209805.4 3261757902
2748496.414059425.73
provision .73 7 .52
3061237167199209805.43261757902
Total 2748496.41 4059425.73.737.52
(3) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Accounts receivable actually written off 2748496.41
1232023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(4) Accounts receivable of the top five closing balances collected by debtors
The accounts receivable of the top five balances collected by the debtors at the end of the period was summed up to
RMB 2134336225.05 accounting for 11.07% of the total balance at the end of the period of accounts receivable.The balance at the end of the period for bad debt provision accrued was RMB 277756485.51 accordingly.
(5) Accounts receivable derecognized due to the transfer of financial assets
1) In accordance with the non-recourse accounts receivables purchase agreement signed between Dahua Hong Kong
the subsidiary and J.P.Morgan Chase in this period the Company transferred the accounts receivables of USD
193297.18 to J.P.Morgan Chase which is equivalent to RMB 1396726.76. The amount of accounts receivables was
derecognised after the transfer.
2) In accordance with the non-recourse accounts receivables purchase agreement signed between Dahua USA the
subsidiary and JPMorgan Chase in this period the Company transferred the accounts receivables of USD 14006.00
to J.P.Morgan Chase which is equivalent to RMB 101204.55. The amount of accounts receivables was derecognised
after the transfer;
3) In accordance with the non-recourse accounts receivables purchase agreement signed between Dahua Vision the
subsidiary and Jinan Branch of China Merchants Bank Co. Ltd. in this period the Company transferred the accounts
receivables of RMB 1430000.00 to Jinan Branch of China Merchants Bank Co. Ltd. The amount of accounts
receivables was derecognised after the transfer;
4) In accordance with the non-recourse accounts receivables purchase agreement signed between the Company and
Sinosure Commercial Factoring (Shenzhen) Co. Ltd. in this period the Company transferred the accounts receivables
of RMB 563882.00 to Sinosure Commercial Factoring (Shenzhen) Co. Ltd. The amount of accounts receivables was
derecognised after the transfer;
5) In accordance with the non-recourse accounts receivables purchase agreement signed between the Company and
Shenzhen Qianhai Anlutong Commercial Factoring Co. Ltd. in this period the Company transferred the accounts
receivables of RMB 456689.25 to Shenzhen Qianhai Anlutong Commercial Factoring Co. Ltd. The amount of
accounts receivables was derecognised after the transfer;
6) In accordance with the non-recourse accounts receivables purchase agreement signed between the subsidiary
Huacheng Network and Shenzhen Qianhai Lianjie Commercial Factoring Co. Ltd. in this period the Company
transferred the accounts receivables of RMB 673762.00 to Shenzhen Qianhai Lianjie Commercial Factoring Co. Ltd.The amount of accounts receivables was derecognised after the transfer.
(6) The amount of assets and liabilities generated due to transferred receivables that the
Company keeps recourse or retains part of corresponding rights or interests
There are no assets or liabilities generated due to transferred receivables that the Company keeps recourse or retains
part of corresponding rights or interests.
5. Receivables Financing
(1) Disclosure of receivables financing
Unit: RMB
1242023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Item Closing balance Opening balance
Bank Acceptance Notes 592817184.48 679441917.62
Total 592817184.48 679441917.62
The increase and decrease of accounts receivable financing in the current period and the changes in the fair value.□ Applicable □ Not applicable
Please refer to the disclosing methods of other receivables for the information disclosure of depreciation provisions if
the depreciation provisions of accounts receivable financing are made according to the general model of expected
credit losses:
□ Applicable □ Not applicable
(2) 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 Notes 488024039.44
Total 488024039.44
(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 Notes 192175864.76
Total 192175864.76
6. Prepayments
(1) Aging analysis of prepayments is as follows
Unit: RMB
Closing balance Opening balance
Aging
Amount Percentage Amount Percentage
Within 1 year 178046180.29 89.61% 98788464.16 81.18%
1 to 2 years 6911396.49 3.48% 11055223.64 9.08%
2 to 3 years 5230393.45 2.63% 8871438.20 7.29%
3 years or above 8511250.85 4.28% 2976113.14 2.45%
Total 198699221.08 -- 121691239.14 --
(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 100720836.42 accounting for 50.69% of the total closing balance of the advance payment.
1252023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
7. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Dividends Receivable 4373583.72 8519063.17
Other Receivables 350866658.68 393330183.71
Total 355240242.40 401849246.88
(1) Dividends Receivable
1) Classification of Dividends Receivable
Unit: RMB
Project (or Invested Unit) Closing balance Opening balance
Intelbras S.A. 4373583.72 8519063.17
Total 4373583.72 8519063.17
2) Provision for bad debts
□ Applicable □ Not applicable
(2) Other receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Deposits 166134967.45 189076400.18
Prepaid or advance expense 115884281.36 117681402.84
Equity Transfer Fund 50290362.72 41929391.85
Export tax rebate 2834.15 1759198.88
Employee home loan 97585397.00 108572799.00
Others 3334557.02 14710466.36
Total 433232399.70 473729659.11
2) Provision for bad debts
Unit: RMB
Phase One Phase Two Phase Three
Expected credit Expected credit
Expected credit
Bad debt provision losses for the entire losses for the entire Total
losses in the next 12
extension (without extension (with credit
months
credit impairment) impairment)
Balance as of
42812272.8836962447.67624754.8580399475.40
January 1 2023
Balance in the
current period as of
January 1 2023
--Transfer to phase
-1305446.861305446.86
two
--Transfer to phase
-25353.16-3201.8628555.02
three
Provisions of this
5961029.7517470.005978499.75
period
1262023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Reversals in this
3941391.3471094.854012486.19
period
Write off in this
189361.07232930.9924640.20446932.26
period
Other variations 447184.32 447184.32
Balance as of June
37797904.7743992791.43575044.8282365741.02
302023
Book balance changes with significant changes in loss provision in the current period
□ Applicable □ Not applicable
Disclosure by age
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 232380884.22
1 to 2 years 80715038.51
2 to 3 years 58160576.54
3 years or above 61975900.43
3 to 4 years 29701698.70
4 to 5 years 9490155.51
5 years or above 22784046.22
Total 433232399.70
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
80399475.405978499.754012486.19446932.26447184.3282365741.02
provision
Total 80399475.40 5978499.75 4012486.19 446932.26 447184.32 82365741.02
4) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Other accounts receivable actually written off 446932.26
5) Other receivables of the top five closing balances collected by debtors
Unit: RMB
As a percentage
of total other Bad debt
Nature of the
Name of Unit Closing balance Aging receivables at provision at the
funds
the end of the end of the period
period
Equity Transfer
Company 1 44495010.38 Within 1 year 10.27% 2224750.52
Fund
Company 2 Deposits 14790000.00 2 to 3 years 3.41% 4437000.00
Company 3 Deposits 12000000.00 5 years or above 2.77% 12000000.00
1272023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Equity Transfer
Company 4 5495352.34 Within 1 year 1.27% 274767.62
Fund
Prepaid or
Company 5 advance 5174856.00 Within 1 year 1.19% 258742.80
expense
Total 81955218.72 18.91% 19195260.94
6） Accounts receivable related to government subsidies
There are no accounts receivable related to government subsidies.
7) Other accounts receivable derecognised due to transfer of financial assets
There are no other accounts receivable derecognised due to transfer of financial assets.
8) Assets and liabilities generated due to other transferred receivables that the Company
keeps recourse or retains part of corresponding rights or interests
There are no assets and liabilities generated due to other transferred receivables that the Company keeps recourse or
retains part of corresponding rights or interests.
8. Inventory
(1) Categories of inventories
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Impairment of Impairment of
Inventories or Inventories or
Item
Book balance Provision for Book value Book balance Provision for Book value
Impairment of Impairment of
Performance Performance
Cost Cost
2209868528215097179929384778422895383180
Raw materials 58896729.19 43094661.62.71.52.47.85
Work-in- 1193742140 1170020645 1198499421 1180412331
23721495.0018087089.24
progress .58 .58 .22 .98
Finished 2720909558 2650819498 3045977790 2993401370
70090060.5552576420.27
goods .70 .15 .56 .29
Outsourced
282790019.8282790019.8246175556.9246175556.9
work-in-
2200
progress
6407310247152708284.762546019637429130611113758171.17315372440
Total.814.07.153.02
(2) Provision for impairment of inventories and provision for impairment of contract
performance cost
Unit: RMB
Opening Increased in the current Closing
Item Decreased in the current period
balance period balance
1282023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Reversals or
Accrued Others Others
write-offs
Raw materials 43094661.62 23404360.56 8144957.12 -542664.13 58896729.19
Work-in-
18087089.248694653.603376446.62-316198.7823721495.00
progress
Finished
52576420.2722903812.186445361.82-1055189.9270090060.55
goods
113758171.1152708284.7
Total 55002826.34 17966765.56 -1914052.83
34
9. Contract Assets
Unit: RMB
Closing balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Completed
but unsettled 16580299.89 117499.67 16462800.22 8632619.32 100346.47 8532272.85
assets
O&M service 26664066.33 269522.24 26394544.09 6968929.49 71994.55 6896934.94
Quality
113036749.9113734287.2
guarantee 20543219.90 92493530.08 22828089.70 90906197.56
86
deposit
156281116.2135350874.3129335836.0106335405.3
Total 20930241.81 23000430.72
0975
Please refer to the disclosing methods of other receivables for the information disclosure of impairment provisions if
the provision for impairment accrued for contract assets are made according to the general model of expected credit
losses:
□ Applicable □ Not applicable
Provision for impairment accrued for contract assets in this period:
Unit: RMB
Provisions of this Reversals in this Write-off in this
Item Causes
period period period
Completed but
17153.20
unsettled assets
O&M service 197527.69
Quality guarantee
2284869.80
deposit
Total 214680.89 2284869.80
10. Non-current Assets Due within 1 Year
Unit: RMB
Item Closing balance Opening balance
Long-term accounts receivables due
450902515.94476871949.75
within 1 year
Total 450902515.94 476871949.75
Note: The amount of long-term receivables due within 1 year as pledged at the end of the period is RMB
28239667.72. See "XIV. Commitments and Contingencies/1. Significant commitments" for details.
1292023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
11. Other Current Assets
Unit: RMB
Item Closing balance Opening balance
Not deducted input tax 628757641.77 790981344.36
Prepaid enterprise income tax 38078298.03 27989091.94
Return cost receivable 5741946.17 8005696.54
National debt reverse repurchase 520497000.00
Issue expenses 3706603.78 4933018.88
Total 676284489.75 1352406151.72
12. Long-term Receivables
(1) Long-term receivables
Unit: RMB
Closing balance Opening balance
Range
Bad Bad of
Item
debt debt discou
Book balance Book value Book balance Book value
provis provi nt rate
ion sion
Installment
Payment 1297305069.0 1436256651. 1436256651.5
1297305069.07
for Selling 7 54 4
Products
Including:
3.69%
Unrealized
169693734.98169693734.98203616598.02203616598.02-
Financing
7.62%
Income
1297305069.01436256651.1436256651.5
Total 1297305069.07 --
7544
Book balance changes with significant changes in loss provision in the current period
□ Applicable □ Not applicable
(2) Long-term receivables derecognised due to transfer of financial assets
There are no long-term receivables derecognised due to transfer of financial assets.
(3) Assets/liabilities generated due to transferred long-term receivables that the Company still
keeps recourse or retains part of corresponding rights or interests
There are no assets or liabilities generated due to transferred long-term receivables that the Company keeps
recourse or retains part of corresponding rights or interests.Other notes
The amount of long-term receivables pledged by the Company at the end of the period is RMB 122659963.34. See
"XIV. Commitments and Contingencies/1. Significant commitments" for details.
13. Long-term equity investments
Unit: RMB
The Openin Decrease/Increase in the current period Closin Closin
1302023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
investe g Invest g g
d entity balanc ment balanc balanc
e profit Adjust Cash e e of
(book and ment dividen Provisi (book provisi
value) Invest Invest loss on Other ds or on for value) on for
ments ment recogn other chang profit impair decline
Others
increas decrea ized compr es in declar ment in
ed sed under ehensi equity ed to accrue value
the ve distribu d
equity income te
metho
d
Ⅰ. Joint ventures
Ⅱ. Affiliates
57028145553538046037
Intelbr 9105 9366
2566.0711.468.93304.
as S.A. 213.84 194.55
4648362
Ruicity
Digital
71175-62969
Techn
718.88206513.0
ology
1205.792
Co.Ltd.Zhejia
ng
Leapm -
650472679049799
otor 17926
0259.456.53447.
Techn 7268.
18339
ology 32
Co.Ltd.Hangz
hou
Juhua
nyan
Inform 72349
ation 6.39
Techn
ology
Co.Ltd.Shaoxi
ng
Dahua
Securit 50437 50437
y 5.75 5.75
Servic
es Co.Ltd.Guang
dong
Zhishi
-
Digital 7919.
7919.
Techn 12
12
ology
Co.Ltd.
1312023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Ningbo
Huaya
n
Chuan
gxi
Ventur
e
6305463432
Capital 37788
968.0850.4
Invest 2.39
32
ment
Partne
rship
(Limite
d
Partne
rship)
Dezho
u
Shuzhi
Inform
3407187203426
ation
519.63.28239.91
Techn
ology
Co.Ltd.Sichua
n
Hengji
Anhua
Interne -
12911203
t of 88230
851.54621.21
Things .33
Techn
ology
Co.Ltd.Guang
xi FTZ
Huaqin
Wisdo
m Park
Techn 46152 77697 53922
ology 9.12 .22 6.34
Resear
ch
Institut
e Co.Ltd.Ningbo
Cida
Yongs
hun
-
Intellig 1638 1532
10577
ent 200.59 429.49
1.10
Techn
ology
Co.Ltd.
1322023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejia
ng
Huach
uang 98812 - 10065
4573
Vision 655.4 2726 9499.
543.00
Techn 4 699.16 28
ology
Co.Ltd.-
146114605313631192
Subtot 15453 9105 9358 72349
099645087.999.513013
al 1486. 213.84 275.43 6.39
4.552331.68
76
-
146114605313631192
154539105935872349
Total 09964 5087. 999.5 13013
1486.213.84275.436.39
4.552331.68
76
14. Other Non-current Financial Assets
Unit: RMB
Item Closing balance Opening balance
Investment in equity instruments 460508886.77 375902994.01
Investment in financial products 918439431.49 555140136.32
Total 1378948318.26 931043130.33
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
505929279.9715815729.08521745009.05
Balance
2. Increased in 40604761.37 4772679.01 45377440.38
the Current Period
(1)
Purchase
(2) Transfer
of fixed 40604761.37 4772679.01 45377440.38
assets\intangible
assets
(3)
Acquisition
3. Decreased in
the Current Period
(1) Disposal
(2) Transfer
to fixed
assets/intangible
assets
4. Closing 546534041.34 20588408.09 567122449.43
1332023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Balance
Ⅱ. Accumulated
Depreciation and
Amortization
1. Opening 96192178.83 2517006.40 98709185.23
Balance
2. Increased in 32171616.18 1515842.25 33687458.43
the Current Period
(1) Accrual 12384064.71 166309.34 12550374.05
or Amortization
(2) Transfer
of fixed 19787551.47 1349532.91 21137084.38
assets\intangible
assets
3. Decreased in
the Current Period
(1) Disposal
(2) Transfer
to fixed
assets/intangible
assets
4. Closing 128363795.01 4032848.65 132396643.66
Balance
Ⅲ. Impairment
Provision
1. Opening
Balance
2. Increased in
the Current Period
(1) Accrual
3. Decreased in
the Current Period
(1) Disposal
(2) Other
Transfer-out
4. Closing
Balance
Ⅳ. Book value
1. Closing 418170246.33 16555559.44 434725805.77
Balance on Book
Value
2. Opening
Balance on Book 409737101.14 13298722.68 423035823.82
Value
(2) Investment properties measured at fair value
□ Applicable □ Not applicable
(3) Investment properties with certificates of title not granted
Unit: RMB
Reasons for Certificates of Title not
Item Book value
Granted
1342023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Dahua Digital Intelligence Industry
23684905.12 Completed in July 2023
Park - New Headquarters Building
In the process of obtaining the real
Xi’an Sales Center of Dahua 112720776.27
estate certificates
16. Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Fixed Assets 4527953284.98 4643617574.85
Total 4527953284.98 4643617574.85
(1) Fixed assets
Unit: RMB
Machinery and Means of Electronic and
Item Housing and building Total
equipment transport other equipment
Ⅰ. Original
book value:
1. Opening
4094635347.73535141351.7334175953.101709315308.326373267960.88
Balance
2. Increased in
the Current 82697158.55 19884507.36 2127062.43 73009404.17 177718132.51
Period
(1) Purchase 19884507.36 2127062.43 73009404.17 95020973.96
(2) Transferred
From
82697158.5582697158.55
Construction in
Progress
(3) Acquisition
(4) Transfer of
investment
properties
3. Decreased in
the Current 40604761.37 146017.70 6664045.87 17468332.45 64883157.39
Period
(1) Disposal or
146017.706664045.8717468332.4524278396.02
Scrapping
(2) Transfer to
investment real 40604761.37 40604761.37
estate
(3) Disposal of
subsidiaries
4. Currency
Translation 180317.40 110548.39 391414.68 1903423.73 2585704.20
Difference
5. Closing
4136908062.31554990389.7830030384.341766759803.776488688640.20
Balance
II. Accumulated
depreciation
1. Opening
466625531.84164408002.7224578997.581074037853.891729650386.03
Balance
2. Increased
in the Current 97561413.85 24528968.19 1872489.23 141619385.26 265582256.53
Period
1352023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(1) Accrual 97561413.85 24528968.19 1872489.23 141619385.26 265582256.53
(2) Transfer
of investment
properties
3. Decreased
in the Current 19787551.47 13871.66 4583367.24 11664292.10 36049082.47
Period
(1) Disposal or
13871.664583367.2411664292.1016261531.00
Scrapping
(2) Transfer to
investment real 19787551.47 19787551.47
estate
(3) Disposal of
subsidiaries
4. Currency
Translation 40571.42 104093.90 249697.80 1157432.01 1551795.13
Difference
5. Closing
544439965.64189027193.1522117817.371205150379.061960735355.22
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 3592468096.67 365963196.63 7912566.97 561609424.71 4527953284.98
Book Value
2. Opening
Balance on 3628009815.89 370733349.01 9596955.52 635277454.43 4643617574.85
Book Value
(2) Fixed assets with certificates of title not granted
Unit: RMB
Reasons for certificates of title not
Item Book value
granted
Dahua Digital Intelligence Industry
1131700012.24 Completed in July 2023
Park - New Headquarters Building
Xi’an R&D and Sales Center of In the process of obtaining the real
829666754.69
Dahua estate certificates
17. Construction in Progress
Unit: RMB
Item Closing balance Opening balance
1362023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Projects under Construction 594110798.33 423535552.03
Total 594110798.33 423535552.03
(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 37183163.71 37183163.71 37183163.71 37183163.71
Industry
Construction
Project
The phase II
construction
project of the
smart 16685912.78 16685912.78
manufacturing
base in
Hangzhou
Project of
Smart IoT
Solution R &
19100734.1819100734.1819100734.1819100734.18
D and
Industrializatio
n
New project of
Southwest
159059898.2159059898.2
R&D Center 84276952.86 84276952.86
66
of Dahua Co.Ltd.New projects
of
Southwestern
217405879.9217405879.9154424552.6154424552.6
China
1177
Operation
Center of
Dahua
Henan Smart
IoT base of 73200948.90 73200948.90 36643528.49 36643528.49
Dahua
Others 88160173.37 88160173.37 75220707.34 75220707.34
594110798.3594110798.3423535552.0423535552.0
Total
3333
(2) Changes in significant construction in progress
Unit: RMB
Increa Amou Other Projec Accu Includi Capita
Openi Closin Projec Capita
Bu sed in nt of amou t mulat ng: lizatio
Item ng g t l
dg the fixed nts accu ed capital n rate
Name balan balan Progr Sourc
et curren assets decre mulati capital ized of the
ce ce ess e
t transf ased ve ized intere intere
1372023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
period erred in invest intere st st in
in the curren ment st amou the
curren t as a amou nt in curren
t period perce nt the t
period ntage curren period
of the t
budge period
t
Project of
Smart R
IoT MB 139.0 Equity
1910191098.36
Solution 91 6% funds/
0734.0734.%
R & D 2 (Note raised
1818
and mill 1) funds
Industriali ion
zation
The
phase II
constructi
R
on
MB 114.0 Equity
project of 1668 5819 7487
82 3% 100.0 funds/
the smart 5912. 0616. 6529.
7 (Note 0% raised
manufact 78 85 63
mill 2) funds
uring
ion
base in
Hangzho
u
Phase I
Urban
R
Intelligent
MB
Informati 3718 3718
39. 94.53 94.53 Equity
on 3163. 3163.
33 % % Fund
Industry 71 71
mill
Construct
ion
ion
Project
New
R
project of
MB
Southwe 8427 7478 1590 Raise
4141.5441.54
st R&D 6952. 2945. 5989 d
7%%
Center of 86 40 8.26 funds
mill
Dahua
ion
Co. Ltd.New
projects
R
of
MB
Southwe 1544 6298 2174
39 59.78 59.78 Equity
stern 2455 1327. 0587
6 % % Fund
China 2.67 24 9.91
mill
Operatio
ion
n Center
of Dahua
R
Henan MB
366436557320
Smart 18 44.33 44.33 Equity
3528.7420.0948.
IoT base 0 % % Fund
494190
of Dahua mill
ion
3483232574875059
Total 1484 1230 6529. 5062
4.699.90634.96
Note 1: Fixed assets of RMB 1144353421.58 were transferred to the project in 2022.Note 2: Fixed assets of RMB 443849828.33 were transferred to the project in 2021. Fixed assets of RMB
346497144.84 were transferred to the project in 2022.
1382023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
18. Right-of-use Assets
Unit: RMB
Item Buildings and constructions Machinery and equipment Total
Ⅰ. Original book value
1. Opening Balance 469271896.25 8884640.73 478156536.98
2. Increased in the
74207132.2774207132.27
Current Period
3. Decreased in the
43023561.2143023561.21
Current Period
4. Currency
6709620.716709620.71
Translation Difference
5. Closing Balance 507165088.02 8884640.73 516049728.75
II. Accumulated
depreciation
1. Opening Balance 162419018.11 1036541.37 163455559.48
2. Increased in the
69157504.97444231.9669601736.93
Current Period
(1) Accrual 69157504.97 444231.96 69601736.93
3. Decreased in the
36904436.4236904436.42
Current Period
(1) Disposal 36904436.42 36904436.42
4. Currency
2197662.802197662.80
Translation Difference
5. Closing Balance 196869749.46 1480773.33 198350522.79
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
310295338.567403867.40317699205.96
Book Value
2. Opening Balance on
306852878.147848099.36314700977.50
Book Value
19. Intangible Assets
(1) Details of intangible assets
Unit: RMB
Non-
Land use Trademark Software
Item Patent right patented Software Total
rights rights copyright
technology
Ⅰ. Original
book value
1. Opening 56934590 68530508. 15859769 2056299.2 4000000.0 80253041
Balance 9.79 70 6.33 0 0 4.02
2.
Increased in 41220600. 11323053. 52543653.the Current 00 64 64
Period
(1)41220600.5529930.846750530.
Purchase 00 3 83
(2) Internal
research
1392023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
and
developmen
t
(3)
Acquisition
(4) Transfer
of 5793122.8 5793122.8
construction 1 1
in progress
3.
Decreased
4772679.01145630.65918309.6
in the
123
Current
Period
1145630.61145630.6
(1) Disposal
22
(2) Transfer
to 4772679.0 4772679.0
investment 1 1
real estate
(3) Disposal
of
subsidiaries
4. Currency
Translation 22710.00 39474.34 21801.60 83985.94
Difference
5. Closing 60581654 68530508. 16881459 2078100.8 4000000.0 84923974
Balance 0.78 70 3.69 0 0 3.97
Ⅱ.Accumulate
d
amortization
1. Opening 54210434. 53757725. 13132270 2056299.2 4000000.0 24534716
Balance 77 67 3.26 0 0 2.90
2.6823071.3
Increased in 4 2431761.4 10812923. 20067755.the Current 0 05 79
Period
6823071.32431761.410812923.20067755.
(1) Accrual
400579
(2) Transfer
of
investment
properties
3.1349532.9
Decreased 1
2119365.3
in the 769832.45
6
Current
Period
(1) Disposal 769832.45 769832.45
(2) Transfer 1349532.9
to 1 1349532.9
investment 1
real estate
(3) Disposal
of
subsidiaries
1402023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
4. Currency
Translation 601017.11 21801.60 622818.71
Difference
5. Closing 59683973. 56189487. 14196681 2078100.8 4000000.0 26391837
Balance 20 07 0.97 0 0 2.04
Ⅲ.Impairment
Provision
1. Opening
Balance
2.
Increased in
the Current
Period
(1) Accrual
3.
Decreased
in the
Current
Period
(1) Disposal
4. Closing
Balance
Ⅳ. Book
value
1. Closing
5461325612341021.26847782.58532137
Balance on
7.5863721.93
Book Value
2. Opening
5151354714772783.27274993.55718325
Balance on
5.0203071.12
Book Value
(2) No land use right without the certificate of title at the end of the period
20. Goodwill
(1) Original book value of goodwill
Unit: RMB
The invested Increased in the current period Decreased in the current period
entity or
Opening Generated Closing
matters which
balance from business Disposal balance
formed
combination
goodwill
Dahua
Technology 6615294.18 6615294.18
Italy S.R.L.Total 6615294.18 6615294.18
(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
1412023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
goodwill
Dahua
Technology 0.00 0.00
Italy S.R.L.Total 0.00 0.00
Information about the asset group or asset group combination where the goodwill is located
The invested entity or
Amount of Information about the asset group or asset group
matters which formed
goodwill combination where it is located
goodwill
The asset group relating to the goodwill formed by acquisition of
Dahua Technology Italy S.R.L. that is the long-term asset
Dahua Technology Italy S.R.L. 6615294.18
group including fixed assets and intangible assets formed for
Dahua Technology Italy S.R.L. on June 30 2023.Explain the goodwill impairment test process key parameters (e.g. growth rate at forecast period growth rate at
steady period profit rate discount rate forecast period etc. when the present value of future cash flow is estimated)
and the confirmation method of goodwill impairment loss:
The recoverable amount is determined mainly according to the present value of the expected future cash flow of the
relevant asset group. Its future cash flow is determined based on the 5-year financial budget for 2023-2027 approved
by the management with a discount rate of 14% to 18%. Cash flows over 5 years are calculated on the basis of zero
growth rate. The growth rate is determined based on the growth forecast of the relevant industry and does not exceed
the long-term average growth rate of the industry. Future cash flow estimates are based on management’s estimated
sales amount cost of sales and operating expenses during the forecast period based on past performance and
expectations of market development.Result of goodwill impairment test
The Company assessed the recoverable amount of goodwill. The recoverable amount of the asset group of Dahua
Technology Italy S.R.L. was higher than the book value. There was no sign of impairment of the goodwill of the asset
group.
21. Long-term Deferred Expenses
Unit: RMB
Prepaid
Increased in the Other Amounts
Item Opening balance Expenses in This Closing balance
current period Decreased
Period
Improvement
expenditure of
fixed assets 73500488.41 13906694.80 20156792.00 -751941.02 68002332.23
leased by
operating lease
Renovation Cost 57125934.56 8597353.11 8247330.13 57475957.54
Total 130626422.97 22504047.91 28404122.13 -751941.02 125478289.77
22. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred income tax assets not written off
Unit: RMB
1422023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Closing balance Opening balance
Item Deductible temporary Deferred Income Tax Deductible temporary Deferred Income Tax
difference Assets difference Assets
Provision for
3118731852.71613095560.682926506726.22578958458.15
Impairment of Assets
Unrealized Profit
from Internal 631244240.99 155113283.66 871706793.72 172050495.83
Transactions
Deductible Losses 511913360.73 93129974.97 819688449.21 143540714.98
Equity incentive
241519305.4337790172.2727100033.664227763.19
expense
Expected Liabilities 196348470.64 29752832.34 192813041.57 29194206.38
Payroll payable 254607869.99 41823845.53 255864043.82 42002714.30
Costs from Tax
Increase Due to 469010588.20 92101218.70 358704786.40 75803754.22
Absence of Invoice
Changes in fair value
576349.44144087.361458799.36364699.84
gains and losses
Book-tax difference 148869605.53 25641745.75 167625574.63 28803549.48
of lease liabilities
Others 110880966.14 17938854.69 113086781.94 21087983.51
Total 5683702609.80 1106531575.95 5734555030.53 1096034339.88
(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
69786870.9712216318.8377645933.8813600068.25
sales by installments
Changes in fair value
of financial 406436605.87 60965490.88 273376308.00 41006446.20
instruments
Book-tax difference 144151281.75 24864081.59 114223037.07 28176354.61
of right-of-use assets
Total 620374758.59 98045891.30 465245278.95 82782869.06
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Offset
Unit: RMB
Amount of Deferred Balance of Deferred Amount of Deferred Balance of Deferred
Income Tax Assets Income Tax Assets Income Tax Assets Income Tax Assets
Item Offset against or Liabilities after Offset against or Liabilities after
Liabilities at the End Offset at the End of Liabilities at the Start Offset at the Start of
of the Period the Period of the Period the Period
Deferred Income Tax 95828185.46 81614395.73
1010703390.491014419944.15
Assets
Deferred Income Tax 95828185.46 81614395.73
2217705.841168473.33
Liabilities
(4) Deferred income tax assets or liabilities listed by net amount after offset
Unit: RMB
Item Closing balance Opening balance
1432023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Deductible temporary difference 467927570.09 428369185.61
Deductible Losses 1386899184.42 1228910987.48
Total 1854826754.51 1657280173.09
(5) Details of unrecognized deferred income tax assets
Unit: RMB
Year Closing balance Opening balance Notes
202330930182.2031938173.71
2024120226409.84123444991.24
2025260527212.98260585329.81
2026326035848.35331765660.29
2027468953623.70481176832.43
2028180225907.35
Total 1386899184.42 1228910987.48
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
21861376.6221861376.6229115751.7429115751.74
Assets
Prepayments
for purchase
71618626.9871618626.9850986092.8350986092.83
of engineering
equipments
Prepayments
for acquisition 40020000.00 40020000.00
of land
Prepayments
for acquisition 21110059.00 21110059.00 21110059.00 21110059.00
of real estate
114590062.6114590062.6141231903.5141231903.5
Total
0077
24. Short-term Loans
(1) Categories of short-term loan
Unit: RMB
Item Closing balance Opening balance
Pledged loans 400000000.00
Fiduciary loans 89800000.00 249800000.00
Discount of notes not matured 7912141.60
Interest payable for short-term loan 69105.97 231476.91
Total 489869105.97 257943618.51
Description of the categories of short-term loan:
The secured borrowings refer to the acceptance bill 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.
1442023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) Unpaid short-term loans that have been overdue
At the end of this period there are no unpaid short-term loans that have been overdue.
25. Trading financial liabilities
Unit: RMB
Item Closing balance Opening balance
Transactional financial liabilities 24514280.75 26652319.25
Including:
Derivative Financial
24514280.7526652319.25
Liabilities
Total 24514280.75 26652319.25
26. Notes payable
Unit: RMB
Types Closing balance Opening balance
Commercial acceptance bill 2087183576.57 2821289185.08
Bank acceptance bill 1318621017.98 1542808576.09
Total 3405804594.55 4364097761.17
27. Accounts payable
(1) Details of accounts payable
Unit: RMB
Item Closing balance Opening balance
Payment for purchase of materials 4937193073.40 6577743073.06
Payment for engineering equipments 445052856.09 762534315.23
Total 5382245929.49 7340277388.29
(2) Important accounts payable aged over 1 year
There are no important accounts payable aged over 1 year.
28. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Payments for sales of goods 266814850.10 378029459.81
Pre-payments from construction
426890926.73559859741.12
projects
Sales of points 39286347.42 55754785.19
Service expense collected in
264174271.80225904025.76
advance
Total 997166396.05 1219548011.88
29. Payroll payable
(1) Details of payroll payable
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
1452023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Ⅰ. Short-term
1562938094.003052271889.363566786219.071048423764.29
remuneration
Ⅱ. Dimission
benefits - defined 2988616.11 171909975.29 170763422.14 4135169.26
contribution plan
Ⅲ. Dismissal welfare 17276455.32 21590306.53 38847517.47 19244.38
Total 1583203165.43 3245772171.18 3776397158.68 1052578177.93
(2) Details of short-term remuneration
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
1. Wages or salaries
bonuses allowances 1265686016.61 2657218688.55 3199503208.76 723401496.40
and subsidies
2. Staff welfare 21457.48 56061853.03 56061853.03 21457.48
3. Social insurance
1414489.58100173097.93100226575.661361011.85
contributions
Including: medical
1243067.1495446746.9795512586.241177227.87
insurance
Work injury
171422.444264311.264253142.02182591.68
insurance premium
Maternity
462039.70460847.401192.30
insurance premium
4. Housing funds 70886.51 190864282.60 190849059.01 86110.10
5. Labor union and
295745243.8247953967.2520145522.61323553688.46
education funds
Total 1562938094.00 3052271889.36 3566786219.07 1048423764.29
(3) Details of defined contribution plans
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
1. Basic pension
2740907.32164074724.97162907886.223907746.07
insurance
2. Unemployment
247708.797835250.327855535.92227423.19
insurance
Total 2988616.11 171909975.29 170763422.14 4135169.26
30. Taxes and fees payable
Unit: RMB
Item Closing balance Opening balance
VAT 179244896.05 174205171.22
Enterprise Income Tax 194917495.70 94127161.97
Individual income tax 22763270.94 27792426.06
Urban Maintenance and Construction
12158382.168019521.09
Tax
Education surcharges (including local
8695277.615728229.41
education surcharges)
Stamp duty 5271253.56 7984104.22
Others 15074201.02 9025133.81
Total 438124777.04 326881747.78
1462023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
31. Other payables
Unit: RMB
Item Closing balance Opening balance
Dividends Payable 10349050.92
Other Payables 715843928.64 1004056999.91
Total 726192979.56 1004056999.91
(1) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Equity Incentive Restricted Stock
10349050.92
Dividend
Total 10349050.92
(2) Other payables
1) Other payables listed by nature of funds
Unit: RMB
Item Closing balance Opening balance
Deposits 127304857.76 118085781.49
Temporarily borrowed and advance
225045725.28230952097.15
payments
Restricted share repurchase
340058648.28609859632.00
obligations
Others 23434697.32 45159489.27
Total 715843928.64 1004056999.91
2) Significant other payables aged over 1 year
There are no significant other payables aged over 1 year.
32. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Long-term debt due within one year 1825500000.00 2376950000.00
Lease liabilities due within 1 year 116302698.28 123421101.68
Interest payable due within 1 year 1542261.82 2639684.05
Other loans due within 1 year 55000000.00 55000000.00
Total 1998344960.10 2558010785.73
Other notes:
The Company and CDB Development Fund reached a cooperation intention to increase the capital of the Company's
subsidiary Zhejiang Dahua Zhilian Co. Ltd. The Capital Increase Agreement stipulates that CDB Development Fund
will not send senior management personnel such as directors and supervisors to Dahua Zhilian; the Company shall
pay an annual investment profit of 1.2% to CDB Development Fund through dividends and repurchase premium. The
Company shall redeem the equity of CDB Development Fund in Dahua Zhilian on a phase-by-phase basis from 2022
to 2024 of which RMB 55000000.00 is recognized as non-current liabilities due within 1 year at the end of the period.
1472023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
33. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
To-be-transferred sales taxes in
48088812.5446811489.60
installments
To-be-transferred sales taxes of
66452558.2494461157.60
contract liabilities
Notes not derecognised 19193301.61 24731965.07
Total 133734672.39 166004612.27
34. Long-term loans
(1) Classification of long-term loans
Unit: RMB
Item Closing balance Opening balance
Pledged loans 52000000.00 77000000.00
Fiduciary loans 350000000.00 376825000.00
Total 402000000.00 453825000.00
35. Lease liabilities
Unit: RMB
Item Closing balance Opening balance
Lease Liabilities 193897179.10 196340654.27
Total 193897179.10 196340654.27
36. Accrued liabilities
Unit: RMB
Item Closing balance Opening balance Causes
Pending litigation 1239749.00 1111463.96 Pending litigation
Others 127728.34 135647.46 Loss-making contract
Expected after-sales
213026628.47 213524280.22 After-sales maintenance
maintenance cost
Expected return amount
9951716.14 12992996.29 Expected sales return
after the period
Total 224345821.95 227764387.93
37. Deferred income
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance Causes
current period current period
Received
Government government
104663047.3890857100.0017792938.48177727208.90
subsidies subsidies related
to assets/income
Total 104663047.38 90857100.00 17792938.48 177727208.90
Projects related to government subsidies:
Unit: RMB
1482023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The
The Amount The
Amount
amount of recorded Amount Related to
Recorded
Opening new as non- Written off Other Closing assets/rel
Liabilities as Other
balance subsidies operating Costs in variations balance ated to
Income in
in this revenue in This income
This
period this period Period
Period
Special
awards for
Fuyang
Dahua
4600303 1586311. 4441672 Related to
Intelligenc
9.48 74 7.74 assets
e (IoT)
Industrial
Park
Project
Investmen
t financial
incentive
fund for
security
5110268 5350500 3169406. 1014382 Related to
video
7.57 0.00 09 81.48 assets
surveillanc
e product
production
base
project
Funding of
Hangzhou
for
manufactu
ring 7557320. 7617500. 3125687. 1204913 Related to
enterprise 33 00 33 3.00 assets
technologi
cal
transform
ation
Other
2973460 9911533. 1982306 Related to
special
0.00 32 6.68 income
subsidies
1046630908571017792931777272
Total
47.380.008.4808.90
Other notes:
1. According to the FuJingGuan [2017] No.35 document and the FuCaiQi [2017] No.506 document issued by
Economic Development Zone Management Committee and the Finance Bureau of Fuyang District Hangzhou the
subsidiary Zhejiang Dahua Zhilian Co. Ltd. received the special subsidies for the Fuyang Dahua Intelligent (IoT)
Industrial Park in 2015 and 2017 respectively RMB 31660000 each time totaling RMB 63320000. As the
government grant related to assets it is recognized as deferred income and will be recognized as other income in
installments based on the estimated service life of the asset (20 years).
2. According to the FuJingGuan [2019] No.18 [2020] No. 39 and [2023] No. 15 documents and the FuCaiQi [2019]
No.286 document issued by Fuyang Economic Development Zone Management Committee and the Finance Bureau
of Fuyang District Hangzhou in 2019 2020 and 2023 the subsidiary Zhejiang Dahua Zhilian Co. Ltd. received
financial incentive funds of RMB 27455000 RMB 26050000 and RMB 53505000 respectively for the investment
1492023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
of the production base of security video surveillance products which was recognized as deferred income as a
government subsidy related to assets and recognized as other income in installments based on the estimated service
life of the asset (20 years).
3. According to the FuJingXinCai [2019] No.49 document and the FuCaiQi [2019] No.804 document issued by
Economic and Information Bureau of Fuyang District Hangzhou and the Finance Bureau of Fuyang District Hangzhou
in 2019 the subsidiary Zhejiang Dahua Zhilian Co. Ltd. received a total of RMB 9197700 in 2019 from the first batch
of funds for technical renovation projects of municipal manufacturing enterprises as government subsidies related to
assets which were recognized as deferred income and recognized as other income in installments based on the
estimated service life of the assets (15-111 months). According to the HangCaiQi [2022] No.35 document issued by
the Finance Bureau of Hangzhou City and the Economic and Information Bureau of Hangzhou City the subsidiary
Zhejiang Dahua Zhilian Co. Ltd. received RMB 7617500 in 2022 and 2023 respectively a total of RMB 15235000
from the funds for technical renovation projects of municipal manufacturing enterprises as government subsidies
related to assets which were recognized as deferred income and recognized as other income in installments based
on the estimated service life of the assets (9-115 months).
4. Other special subsidies are income related government subsidies received and other benefits are recognized based
on expenses actually incurred during the year.
38. Other non-current liabilities
Unit: RMB
Item Closing balance Opening balance
To-be-transferred sales taxes in
156913075.39169084072.08
installments
Other loans 35000000.00
Total 156913075.39 204084072.08
39. Share capital
Unit: RMB
Increased or decreased amount in this period (+/-)
Shares
Opening Shares Closing Bonus converted
balance newly Others Subtotal balance
shares from capital
issued
reserves
-
Total 30331611 29310340 26130782 32944689
31795580.
shares 70.00 0.00 0.00 90.00
00
Other notes:
(1) According to the Proposal on the Company's 2021 Private Offering Plan passed and adopted in the 12th 19th
23rd 29th and 31st meetings of the Seventh Board of Directors and 2020 Annual General Meeting of the Company
and other issuance related proposals and the Proposal on Extending the Validity Period of Resolutions and
Authorization on Non-Public Shares at the General Meeting of Shareholders adopted by the First Extraordinary
Shareholders' Meeting in 2022 and approved by the Reply from China Securities Regulatory Commission on Approval
of Non-public Offering of Shares by Zhejiang Dahua Technology Co. Ltd. (Securities Regulatory License [2022] No.
853) the Company issued 293103400 A shares (RMB ordinary shares) to specific parties increasing the registered
capital by RMB 293103400.00. The above investment has been verified by Verification Report Xin Kuai Shi Bao Zi
1502023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
[2023] No. ZF10231 issued by BDO China Shu Lun Pan CPAs (special general partnership). The change registration
filed with Administration for Industry and Commerce was completed in June 2023 by the Company.
(2) According to the decision of the 42nd Session of the 7th Board of Directors of the Company held on April 27 2023
and the amended Articles of Association and the solution of the 2022 Annual Shareholders' General Meeting of the
Company the Company repurchased and canceled 31795580 Restricted RMB Ordinary Shares (A Shares) that had
been granted but not been released to 4249 incentive objects reduced the registered capital by RMB 31795580.00
and the registered capital after the change was reduced to RMB 3294468990.00. The above capital reduction has
been verified by Verification Report Xin Kuai Shi Bao Zi [2023] No. ZF11079 issued by BDO China Shu Lun Pan CPAs
(special general partnership). The change registration filed with Administration for Industry and Commerce was
completed in August 2023 by the Company.
40. Capital reserve
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
Capital premium
(capital share 1982401079.59 4939077416.30 242577214.75 6678901281.14
premium)
Other capital
1967808163.66155867745.0033800606.342089875302.32
reserves
Total 3950209243.25 5094945161.30 276377821.09 8768776583.46
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 168150131.40. Other capital reserve was increased by RMB 113857373.42. Capital reserve (share premium)
was increased by RMB 54292757.98. The income tax impact amount of RMB 10646372.05 for the deductible
amount before income tax which exceeds the costs and expenses related to share payments recognized under
accounting standards is recognized to increase other capital reserves.
(2) In this period the Company repurchased 31795580 restricted shares that had been granted but had not been
unlocked by cancellation of the share incentive subject reducing the share capital by RMB 31795580.00 and
reducing the capital reserves (share premium) by RMB 227656352.80.
(3) The portion of an equity-settled share payment to which minority shareholders are entitled increased by RMB
32444201.86 in the current period (among them the portion to which minority shareholders are entitled as a result of
changes in shareholding in subsidiaries was RMB 11548044.42) less capital reserves (equity premium) by RMB
14914003.86 and other capital reserves by RMB 17530198.00.
(4) According to the Proposal on the Company's 2021 Private Offering Plan passed and adopted in the 12th 19th
23rd 29th and 31st meetings of the Seventh Board of Directors and 2020 Annual General Meeting of the Company
and other issuance related proposals and the Proposal on Extending the Validity Period of Resolutions and
Authorization on Non-Public Shares at the General Meeting of Shareholders adopted by the First Extraordinary
Shareholders' Meeting in 2022 and approved by the Reply from China Securities Regulatory Commission on Approval
of Non-public Offering of Shares by Zhejiang Dahua Technology Co. Ltd. (Securities Regulatory License [2022] No.
853) the Company issued 293103400 A shares (RMB ordinary shares) to specific parties and premium of RMB
4796729184.72 is recognized to increase the capital reserves (equity premium).
1512023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(5) The impact of changes in other owners' equity of the joint venter that the Company should enjoy under the current
equity method increased other capital reserves by RMB 31363999.53.
(6) For the equity of the associated enterprises disposed of in the current period the corresponding part of the capital
reserves (other capital reserves) is carried forward to the investment income of RMB 16270408.34.
(7) Due to the change in the shareholding ratio of subsidiaries the capital reserves (equity premium) increase by RMB
88055473.60; the capital reserves decrease of RMB 11548044.42 due to the change in share payments entitled by
minority shareholders as a result of the change in shareholding ratio is reflected in the preceding paragraph (3).
(8) Due to the withdrawal of minority shareholders of the subsidiaries the Company assumed part of the losses
incurred therefrom reducing the capital reserves (equity premium) by RMB 6858.09.
41. Treasury share
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
Restricted shares 609859632.00 269800983.72 340058648.28
Total 609859632.00 269800983.72 340058648.28
Other notes including increases or decreases in this period and their reasons:
(1) In this period the Company repurchased 31795580 shares of the granted but unlocked restricted shares
reducing the share capital by RMB 31795580.00 reducing the capital reserves (share premium) by RMB
227656352.80 and reducing the corresponding treasury stock amount by RMB 259451932.80 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 10349050.92.
42. Other comprehensive income
Unit: RMB
Amount Occurred in the Current Period
Less:
Less: Recorded
recorded into other
into other comprehe
comprehe nsive
Attributabl
nsive incomes
Less: Attributabl e to the
Opening Before tax incomes in Closing
Item Income e to the minority
balance balance in in previous balance
Tax Company sharehold
this period previous period and
Expense after tax ers after
period and transferre
tax
transferre d to
d to P/L in retained
current earnings
period in current
period
I. Other
comprehe
36942334075172.4169304.-4111164
nsive
9.77571794131.603.94
income
that will be
1522023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
reclassifie
d into P/L
Curre
ncy
36942334075172.4169304.-4111164
conversio
9.77571794131.603.94
n
difference
Other
comprehe
36942334075172.4169304.-4111164
nsive
9.77571794131.603.94
incomes
in total
43. Surplus reserves
Unit: RMB
Increased in the Decreased in the
Item Opening balance Closing balance
current period current period
Statutory surplus
1553691005.921553691005.92
reserve
Total 1553691005.92 1553691005.92
44. Undistributed profits
Unit: RMB
Item Current Period Previous Period
Undistributed Profit before
Adjustment at the End of Previous 17872654791.67 16331012273.48
Period
Undistributed Profit after Adjustment
17872654791.6716331012273.48
at the Start of the Period
Add: net profit attributable to parent
1976018373.131519848967.71
company's owner in current period
Less: Payable Dividends on Ordinary
801629761.37798774336.90
Shares
Add: Common stock dividends
corresponding to repurchase and 7662734.78 16060762.89
cancellation of restricted stocks
Undistributed Profit at the End of the
19054706138.2117068147667.18
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 14469809650.17 8240387614.63 13898516963.09 8658952304.51
Other businesses 163737630.47 123600285.01 188568877.88 143624316.81
Total 14633547280.64 8363987899.64 14087085840.97 8802576621.32
(2). Information related to operating revenue and operating cost (by product)
Unit: RMB
Amount Occurred in the Current Period
Item
Income Cost
1532023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Smart IoT Products and Solutions 12161117387.94 6726306045.85
Including: Software Business 757373050.95 241174322.48
Innovated Businesses 2258998031.19 1466634666.72
Others 213431861.51 171047187.07
Total 14633547280.64 8363987899.64
(3). Information related to operating revenue and operating cost (by region)
Unit: RMB
Amount Occurred in the Current Period
Item
Income Cost
Domestic 7771201571.54 4750611105.50
Overseas 6862345709.10 3613376794.14
Total 14633547280.64 8363987899.64
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 unti l the performance progress can be reasonably recognized.
46. Taxes and surcharges
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Urban Maintenance and Construction
43889100.0736718256.75
Tax
Education Surcharges 31363812.17 26234984.65
House property tax 29761364.19 9387845.32
Land usage tax 917177.94 805237.56
Vehicle and vessel use tax 15510.00 24479.92
Stamp duty 9103927.09 5578393.44
Others 1132923.07 725000.93
Total 116183814.53 79474198.57
1542023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
47. Sales expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 1377761831.04 1187269669.35
After-sales service expense 156571610.31 148829148.87
Transportation and vehicle expenses 21706516.27 16465074.97
Marketing expense 165481310.04 176978073.06
Administrative expenses 71422657.28 80022542.82
Traveling expense 114091416.69 91766855.31
Business entertainment 93645690.49 92619608.96
Taxation and insurance expense 56829765.54 100350665.31
Communication expense 13263245.01 11111515.46
Knowledge resource fee 21686620.89 30432774.68
Depreciation cost and asset
80806563.3074651967.38
amortization
Others 17352016.78 29230400.07
Total 2190619243.64 2039728296.24
48. Administrative expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 340564439.76 280594841.45
Depreciation cost and asset
94767007.1253213335.22
amortization
Administrative expenses 46095106.28 34129796.48
Consumables and service fees 12081798.50 576527.78
Knowledge resource fee 49587678.01 28298266.89
Transportation and vehicle expenses 1232107.90 1911522.48
Traveling expense 4803169.65 1620658.73
Business entertainment 4945263.49 3672417.72
Others 20643333.56 12788831.83
Total 574719904.27 416806198.58
49. R&D expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Labor cost 1643019116.19 1393586316.61
Research consumables and service
62150572.8575363485.69
fees
Depreciation cost and asset
51399973.8044639295.55
amortization
Traveling expense 25060775.54 19466826.45
Administrative expenses 14542301.96 16726601.70
Communication expense 12116451.51 6055324.87
Others 6331523.21 7641420.30
Total 1814620715.06 1563479271.17
1552023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
50. Financial expenses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Interest expense 58636214.41 66900870.38
Including: interest expenses on lease
7433492.475981899.91
liabilities
Less: interest income 139792759.54 99279785.76
The profit or loss on foreign
-349111677.73-261735730.67
exchange
Others 9815525.33 19513521.44
Total -420452697.53 -274601124.61
51. Other incomes
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Sources of other incomes
Period Period
Government subsidies 362570654.41 500467768.02
Total 362570654.41 500467768.02
52. Investment income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
权益法核算的长期股权投资收益-154531486.76-190450701.35
处置长期股权投资产生的投资收益173111849.541408167.28交易性金融资产在持有期间的投资收
124950.00
益
处置交易性金融资产取得的投资收益-34387624.1915170140.75
债务重组收益-411312.80其他非流动金融资产在持有期间的投
2372827.096666341.48
资收益
国债逆回购投资收益569386.14515701.75
金融资产终止确认收益-1279161.94-815399.65
合计-14144210.12-167792112.54
53. Income from changes in fair value
Unit: RMB
Source of the income from changes Amount Occurred in the Current Amount Occurred in the Previous
in fair value Period Period
Trading Financial Assets -1132045.17
Including: gains from changes at
fair value of derivative financial -1132045.17
instruments
Transactional financial liabilities 2138038.50 -22938892.17
Other Non-current Financial Assets 133060297.91 162677125.00
Total 135198336.41 138606187.66
54. Credit impairment loss
Unit: RMB
Item Amount Occurred in the Current Amount Occurred in the Previous
1562023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Period Period
Bad debt losses of other receivables -1966013.56 -2879731.41
Bad debt losses of accounts
-199209805.47-224421053.62
receivable
Bad debt losses of notes receivable 12586037.47 497752.37
Total -188589781.56 -226803032.66
55. Asset impairment losses
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Loss from Impairment of Inventories
-53883719.66-66144237.60
and Impairment of Performance Cost
Impairment losses on contract assets 2070188.91 -2774802.20
Total -51813530.75 -68919039.80
56. Asset disposal income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Sources of the asset disposal income
Period Period
Income from disposal of fixed assets 1395021.50 793237.32
Income from the disposal of right-of-
367032.72128322.86
use assets
Total 1762054.22 921560.18
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
Government subsidies 100000.00
Gains and losses of non-
1025738.07884340.571025738.07
current asset retirement
Others 6265024.42 3191841.61 6265024.42
Total 7290762.49 4176182.18 7290762.49
Government subsidies recorded into current period P/L:
Unit: RMB
Subsidies
Influence
This Previous
Profit and Related to
Special period's period's
Subsidy Distributin Distributin Types of Loss in assets/rel
Subsidy or amount of amount of
items g Entity g Reason Nature the ated to
not occurrenc occurrenc
Current income
e e
Year or
not
2021 Economic Subsidies
"Straight and received
Through Informatio due to
100000.0 Related to
Wuzhen" n Bureau Reward engageme Yes No
0 income
Global of nt in
Internet Tongxiang specific
Competiti City industries
1572023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
on and trades
encourage
d and
supported
by the
State
(obtained
by
national
policies
and
regulation
s)
58. Non-operating expenditures
Unit: RMB
Amount recorded into non-
Amount Occurred in the Amount Occurred in the
Item recurring profit and loss in
Current Period Previous Period
current period
Donations 496915.96 847470.37 496915.96
Gains and losses of non-
1213612.70925642.441213612.70
current asset retirement
Including: Losses from
1213612.70925642.441213612.70
disposal of fixed assets
Water conservancy fund 172476.39 46580.72
Others 2254707.67 1733559.93 2254707.67
Total 4137712.72 3553253.46 3965236.33
59. Income tax expense
(1) Income tax expense statement
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Current income tax expense 183337096.59 194680405.47
Deferred income tax expense 18408214.95 -101231654.73
Total 201745311.54 93448750.74
(2) Adjustment process of accounting profit and income tax expenses
Unit: RMB
Item Amount Occurred in the Current Period
Total Profit 2242004973.41
Income tax expense calculated at statutory/applicable tax
336300746.01
rate
Impact by applying different tax rates to subsidiaries 79538240.28
Impact of income tax before adjustment in this period -31785940.15
Impact of the non-deductible costs expenses and losses 15819626.27
Impact of additional deduction of the research and
-257742986.38
development expenses
Others 59615625.51
1582023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Income tax expense 201745311.54
60. Other Comprehensive Incomes
See Note 42 for details
61. Items of Cash Flow Statement
(1) Other cash receipts relating to operating activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Interest Income 98282325.78 53924373.58
Government subsidies 435552183.85 505524702.76
Tender and performance guarantee
67899798.1144240031.49
deposit
Others 18491024.35 39666743.34
Total 620225332.09 643355851.17
(2) Other cash payments relating to operating activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Administrative expenses 149122402.24 165216105.08
Communication expense 38779887.00 23139986.23
Business entertainment 102420881.92 99624245.68
Traveling expense 149346782.15 118844892.10
Marketing expense 160316584.19 126985353.96
Transportation and vehicle expenses 31419022.85 20220184.20
Knowledge resource fee 76423481.68 57145019.67
Research and development
consumption and external inspection 42767935.93 27754640.95
fee
Taxation and insurance expense 30195538.61 39617759.32
Tender and performance guarantee
65636480.9862584702.74
deposit
Incomings and outgoings and
20590104.9176954970.33
advanced payments
Consumables and service fees 113724030.41 127531222.41
Others 12289260.58 8620551.49
Total 993032393.45 954239634.16
(3) Other cash receipts relating to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Receipts of cash from forward
2049875.8117359422.11
exchange contracts
1592023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Recovered frozen funds relating to
4706596.97
the investment
Total 6756472.78 17359422.11
(4) Other cash payments related to investing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Cash paid for forward exchange
36437500.002189282.90
contracts
Paid frozen funds relating to the
520497.39
investment
Total 36957997.39 2189282.90
(5) Other cash receipts related to financing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Recovered loan deposit 453263.81
Total 453263.81
(6) Other cash payments related to financing activities
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Leasing fees paid 91338342.56 69487198.65
Listing fees paid 3312739.06 1329000.00
Cashes paid for purchasing minority
1300000.0077940000.00
equity
Equity repurchase cash paid 259451932.80 284463142.68
Total 355403014.42 433219341.33
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 2040259661.87 1543277888.54
Add: provision for impairment of
240403312.31295722072.46
assets
Depreciation of fixed assets
277966321.24195134259.34
oil and gas assets productive
1602023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
biological assets
Depreciation of Right-of-use
69601736.9363854814.97
Assets
Amortization of Intangible
20234065.1325702611.06
Assets
Amortization of long-term
28404122.1313315596.89
deferred expenses
Losses on disposal of fixed
assets intangible assets and other
-1762054.22-921560.18
long-term assets (mark "-" for
incomes)
Losses on scrapping of fixed
187874.6341301.87
assets (mark "-" for incomes)
Losses on fair value changes
-135198336.41-138606187.66
(mark "-" for incomes)
Financial expenses (mark "-"
-290475463.32-194834860.29
for incomes)
Losses on investment (mark "-
12865048.18166976712.89
" for incomes)
Decrease on deferred income
14362925.71-123292036.03
tax assets (mark "-" for increases)
Increase on deferred income
1049232.5119937280.65
tax liabilities (mark "-" for decreases)
Decrease on inventories (mark
1021820363.34293702798.38
"-" for increases)
Decrease on operational
-231086828.89-344730035.51
receivables (mark "-" for increases)
Increase on operational
-2974085366.83-3572625117.49
payables (mark "-" for decreases)
Others 168150131.40 29549813.35
Net cash flow generated by
262696745.71-1727794646.76
operating activities
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 11798049495.81 6510524358.34
Less: opening balance of cash 7878465052.63 7617576852.32
Add: closing balance of cash
equivalents
Less: opening balance of cash
equivalents
Net Increase in Cash and Cash
3919584443.18-1107052493.98
Equivalents
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
Ⅰ. Cash 11798049495.81 7878465052.63
Including: cash on hand 2651.58 2535.81
1612023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Bank deposit for payment at
11390009623.037746722778.16
any time
Other cash and bank balances
408037221.20131739738.66
for payment at any time
II. Balance of Cash and Cash
11798049495.817878465052.63
Equivalents at the End of the Period
63. Assets whose Ownership or Rights to Use is Restricted
Unit: RMB
Item Book value at the end of the period Cause of restrictions
Guarantee letter security deposit and
Cash and Bank Balances 116444661.11
other restricted funds
Pledge used to issue bank
Notes receivable and receivables acceptance bills and endorsed
925505845.85
financing or discounted notes not
derecognized
Long-term Receivables 122659963.34 Pledge for bank borrowings
Non-current Assets Due within 1
28239667.72 Pledge for bank borrowings
Year
Total 1192850138.02
64. Monetary Items in Foreign Currencies
(1) Monetary items in foreign currencies
Unit: RMB
Closing balance in foreign Exchange rate for Closing Balance Converted
Item
currencies conversion into RMB
Cash and Bank Balances
Including: USD 41981672.17 7.2258 303351166.77
EUR 32468928.69 7.8771 255760998.18
HKD 34781385.91 0.9220 32067808.00
BRL 233190841.81 1.4878 346929674.90
INR 888738154.59 0.0880 78230755.82
ZAR 85205291.14 0.3864 32921947.04
Total amount of
195598494.03
other currencies
Accounts receivable
Including: USD 560913263.19 7.2258 4053047057.16
EUR 95469770.89 7.8771 752024932.28
HKD 2614855.03 0.9220 2410848.99
INR 4714339045.52 0.0880 414977465.33
AED 101350587.78 1.9741 200080249.36
AUD 36349127.98 4.7992 174446735.00
Total amount of
520873858.07
other currencies
Long-term loan
Including: USD
EUR
HKD
Accounts Payable
Including: USD 38645753.74 7.2258 279246487.37
1622023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
INR 2100359025.00 0.0880 184883110.03
EUR 1700060.71 7.8771 13391548.23
HUF 298132668.32 0.0212 6326718.03
MXN 14386714.66 0.4235 6093483.55
BRL 2586322.75 1.4878 3847801.67
Total amount of
17854743.10
other currencies
(2) Notes on overseas business entities including that for the important overseas business
entities the overseas main premises functional currency and selection basis shall be
disclosed. If there are changes on its functional currency the causes for the changes shall be
disclosed as well.□ Applicable □ Not applicable
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.
65. Government subsidies
(1) Basic information about government subsidies
Unit: RMB
Amount taken to current
Types Amount Items reported
P&L
VAT refund 293408826.71 Other Incomes 293408826.71
Financial subsidy for
science and technology 18657399.13 Other Incomes 18657399.13
R&D plan projects
Special financial award
10569900.00 Other Incomes 10569900.00
funds
Tax refund 9911711.55 Other Incomes 9911711.55
Subsidies for stable
2499359.77 Other Incomes 2499359.77
positions
Talent subsidy funds 2300000.00 Other Incomes 2300000.00
Standard incentive funds 1950000.00 Other Incomes 1950000.00
Funding of Hangzhou for
manufacturing enterprise Deferred income/other
24432700.003125687.33
technological incomes
transformation
Investment financial
incentive fund for security Deferred income/other
107010000.003169406.09
video surveillance product incomes
production base project
Special awards for Fuyang
Deferred income/other
Dahua Intelligence (IoT) 63320000.00 1586311.74
incomes
Industrial Park
Changsha leased plant Deferred income/other
29734600.009911533.32
renovation project incomes
Subsidies for enterprise
1218844.51 Other Incomes 1218844.51
practical training
High-tech enterprise 1200000.00 Other Incomes 1200000.00
1632023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
subsidies
Zhejiang Province's first
1000000.00 Other Incomes 1000000.00
(set) of equipment rewards
Reward for Manufacturing
570000.00 Other Incomes 570000.00
Enterprises
Patent subsidies 325500.00 Other Incomes 325500.00
Subsidy funding for R&D
expenses of high-tech 260000.00 Other Incomes 260000.00
businesses
Intellectual property
129300.00 Other Incomes 129300.00
incentive funds
VAT deduction 74172.66 Other Incomes 74172.66
VAT exemption 8459.42 Other Incomes 8459.42
Others 694242.18 Other Incomes 694242.18
(2) Return of government subsidies
□ Applicable □ Not applicable
VIII. Changes in the Scope of Consolidation
1. Business combination not under common control
(1) Business consolidation under non-common control during this period
Unit: RMB
Acquiree's
Acquiree's
Net
Income
Basis for Income
from the
Equity Equity Equity Equity determinat from the
Acquiree's Date of date of
acquisition acquisition acquisition acquisition ion of the date of
name purchase purchase
time cost ratio method date of purchase
to the end
purchase to the end
of the
of the
period
period
Zhejiang
Completio
Huajian February Equity February
0.00 100.00% n of 0.00 0.00
Technolog 24 2023 transfer 24 2023
closing
y Co. Ltd.Other notes:
Zhejiang Huajian Technology Co. Ltd. was established on December 7 2022. By the closing date the original
shareholders have not made actual investment nor did any operation occur; the Company acquired 100% of the
company's equity in consideration of zero and completed the industrial and commercial registration of change on
February 24 2023.
2. No business consolidation under common control during this period
3. 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:
1642023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The Company invested to establish four overseas subsidiaries including Dahua Technology Belgium BV Dahua
Technology Regional Headquarters Dahua Technology Azerbaijan LLC and Dahua Technology Vietnam Company
Limited. The above subsidiaries have been incorporated into the scope of consolidation since the date of
establishment.IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of the enterprise group
Name of Main Place of Registered Business Shareholding Percentage Acquisition
Subsidiaries Business Address Nature Direct Indirect Method
Dahua Binjiang Binjiang Electronics
System District District and 100.00% Establishment
Engineering Hangzhou Hangzhou information
Binjiang Binjiang Electronics
Dahua Vision
District District and 100.00% Establishment
Technology
Hangzhou Hangzhou information
Dahua Binjiang Binjiang Electronics
Security District District and 100.00% Establishment
Network Hangzhou Hangzhou information
Binjiang Binjiang Electronics
Dahua Ju'an District District and 51.00% Establishment
Hangzhou Hangzhou information
Guangxi Electronics
Youjiang Youjiang
Dahua and 100.00% Establishment
District Baise District Baise
Information information
Qingxiu Qingxiu
Guangxi
District District Service 100.00% Establishment
Yunlian
Nanning Nanning
Binjiang Binjiang Electronics
Hangzhou 78.00%
District District and Establishment
Xiaohua (Note 1)
Hangzhou Hangzhou information
Fuyang Fuyang Electronics
90.09%
Dahua Zhilian District District and Establishment
(Note 2)
Hangzhou Hangzhou information
Dahua Fuyang Fuyang Investment &
investment District District investment 75.00% Establishment
management Hangzhou Hangzhou management
Electronics
Guangxi Youjiang Youjiang
and 65.00% Establishment
Zhicheng District Baise District Baise
information
Binjiang Binjiang Electronics
Hangzhou 44.61%
District District and Establishment
Huacheng (Note 3)
Hangzhou Hangzhou information
Electronics
Xinjiang Shihezi Shihezi
and 92.00% Establishment
Information Xinjiang Xinjiang
information
Binjiang Binjiang Sci-tech
HuaRay 35.92%
District District popularization Establishment
Technology (Note 4)
Hangzhou Hangzhou and
1652023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
application
services
industry
Fuyang Fuyang Electronics
Fuyang
District District and 51.00% Establishment
Hua'ao
Hangzhou Hangzhou information
Binjiang Binjiang Electronics
Huafei 45.50%
District District and Establishment
Intelligent (Note 5)
Hangzhou Hangzhou information
Guanshanhu Guanshanhu Electronics
Guizhou
District District and 100.00% Establishment
Huayi
Guiyang Guiyang information
Qira County Qira County Electronics
Xinjiang Zhihe Hotan Hotan and 97.00% Establishment
Xinjiang Xinjiang information
Electronics
Guangxi Wuzhou Wuzhou
and 90.00% Establishment
Huacheng Guangxi Guangxi
information
Electronics
Meitan Dahua Zunyi Zunyi
and 100.00% Establishment
Technology Guizhou Guizhou
information
New District New District
Inner Bai County Bai County Electronics
Mongolia Chahar Right Chahar Right and 95.00% Establishment
Zhimeng Wing Back Wing Back information
Banner Banner
Hetian Hetian
Electronics
Xinjiang County County
and 97.00% Establishment
Zhitian Hetian Hetian
information
Xinjiang Xinjiang
Shache Shache
County County Electronics
Xinjiang
Kashgar Kashgar and 100.00% Establishment
Xinzhi
District District information
Xinjiang Xinjiang
Electronics
Xinjiang Kashgar Kashgar
and 100.00% Establishment
Huayue Xinjiang Xinjiang
information
Electronics
Tianjin Binhai Tianjin Binhai
Tianjin Dahua and 100.00% Establishment
New Area New Area
information
Shuangpai Shuangpai
Electronics
Dahua County County
and 90.00% Establishment
Zhilong Yongzhou Yongzhou
information
City City
Fuyang Fuyang
District District Electronics
Vision
Hangzhou Hangzhou and 100.00% Establishment
Technology
City Zhejiang City Zhejiang information
Province Province
Fuyang Fuyang
District District Electronics
Huaxiao
Hangzhou Hangzhou and 51.00% Establishment
Technology
City Zhejiang City Zhejiang information
Province Province
Xi'an City Xi'an City Electronics
Xi'an Dahua 100.00% Establishment
Shaanxi Shaanxi and
1662023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Province Province information
Wuxi City Wuxi City Electronics
Huaruipin Jiangsu Jiangsu and 51.00% Establishment
Province Province information
Xicheng Xicheng Electronics
Beijing
District District and 100.00% Establishment
Huayue
Beijing Beijing information
Electronics
Shanghai Putuo District Putuo District
and 100.00% Establishment
Huashang Shanghai Shanghai
information
Wucheng Wucheng
District District Electronics
Dahua Jinzhi Jinhua City Jinhua City and 100.00% Establishment
Zhejiang Zhejiang information
Province Province
Zhoushan Zhoushan Electronics
Zhoushan
City Zhejiang City Zhejiang and 58.80% Establishment
Operation
Province Province information
Lijiang City Lijiang City Electronics
Yunnan Zhili Yunnan Yunnan and 90.00% Establishment
Province Province information
Liuzhou City Liuzhou City
Guangxi Guangxi Guangxi Electronics
Dahua Zhuang Zhuang and 100.00% Establishment
Technology Autonomous Autonomous information
Region Region
Binjiang Binjiang Electronics
Huayixin District District and 51.00% Establishment
Hangzhou Hangzhou information
Binjiang Binjiang Electronics
Huaruijie District District and 51.00% Establishment
Hangzhou Hangzhou information
Longquanyi Longquanyi Electronics
Chengdu
District District and 100.00% Establishment
Zhilian
Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu
District District and 100.00% Establishment
Zhian
Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu
District District and 100.00% Establishment
Zhishu
Chengdu Chengdu information
Longquanyi Longquanyi Electronics
Chengdu
District District and 100.00% Establishment
Zhichuang
Chengdu Chengdu information
Chengdu Electronics
Dayi County Dayi County
Smart and 90.00% Establishment
Chengdu Chengdu
Network information
Electronics
Huakong Wuyi County Wuyi County
and 100.00% Establishment
Software Jinhua City Jinhua City
information
Binjiang Binjiang Electronics
Huacheng
District District and 100.00% Establishment
Software
Hangzhou Hangzhou information
Nanming Nanming Electronics
Guizhou
District District and 100.00% Establishment
Dahua
Guiyang Guiyang information
Henan Dahua Zhengzhou Zhengzhou Electronics 100.00% Establishment
1672023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Henan Henan and
information
Binjiang Binjiang Electronics
45.00% (Note
Huajian District District and Establishment
6)
Hangzhou Hangzhou information
Electronics
Zhengzhou Zhengzhou Zhengzhou
and 100.00% Establishment
Dahua Zhian Henan Henan
information
Electronics
Dahua
Singapore Singapore and 100.00% Establishment
International
information
Electronics
Anhui Zhilian Hefei Anhui Hefei Anhui and 100.00% Establishment
information
Electronics
Anhui Zhishu Hefei Anhui Hefei Anhui and 100.00% Establishment
information
Electronics
Wuhu Huajian Wuhu Anhui Wuhu Anhui and 100.00% Establishment
information
Electronics
Changsha Changsha Changsha
and 100.00% Establishment
Dahua Hunan Hunan
information
Electronics
Tianjin Hexi District Hexi District
and 100.00% Establishment
Huajian Tianjin Tianjin
information
Xiaoshan Xiaoshan Electronics
Zhejiang
District District and 51.00% Establishment
Pixfra
Hangzhou Hangzhou information
Yiwu City Yiwu City Electronics
Yiwu Huaxi Zhejiang Zhejiang and 100.00% Establishment
Province Province information
Xiaoshan Xiaoshan Electronics
Dahua
District District and 100.00% Establishment
Operation
Hangzhou Hangzhou information
Nanyang City Nanyang City Electronics
Nanyang
Henan Henan and 100.00% Establishment
Intelligent
Province Province information
Yibin City Yibin City Electronics
Yibin Huahui Sichuan Sichuan and 100.00% Establishment
Province Province information
Chengdu City Chengdu City Electronics
Chengdu
Sichuan Sichuan and 100.00% Establishment
Huazhiwei
Province Province information
Xi'an City Xi'an City Electronics
IMOU Xi'an Shaanxi Shaanxi and 100.00% Establishment
Province Province information
Luoyang City Luoyang City Electronics
Luoyang
Henan Henan and 100.00% Establishment
Zhiyu
Province Province information
Binjiang Binjiang Electronics
Huaqi
District District and 100.00% Establishment
Intelligence
Hangzhou Hangzhou information
Chongzhou Chongzhou Electronics
Chengdu
City Chengdu City Chengdu and 100.00% Establishment
Information
City City information
Huajian Binjiang Binjiang Electronics 100.00% Business
1682023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Technology District District and combination
Hangzhou Hangzhou information not under
common
control
Electronics
Dahua Hong
Hong Kong Hong Kong and 100.00% Establishment
Kong
information
Electronics
Dahua USA USA USA and 100.00% Establishment
information
Electronics
Dahua Europe Netherlands Netherlands and 100.00% Establishment
information
Electronics
Dahua Middle United Arab United Arab
and 100.00% Establishment
East Emirates Emirates
information
Electronics
Dahua Mexico Mexico Mexico and 100.00% Establishment
information
Electronics
Dahua Chile Chile Chile and 100.00% Establishment
information
Electronics
Dahua
Columbia Columbia and 100.00% Establishment
Colombia
information
Electronics
Dahua
Australia Australia and 100.00% Establishment
Australia
information
Electronics
Dahua
Singapore Singapore and 100.00% Establishment
Singapore
information
Electronics
Dahua South
South Africa South Africa and 100.00% Establishment
Africa
information
Electronics
Dahua Peru Peru Peru and 100.00% Establishment
information
Electronics
Dahua Brazil Brazil Brazil and 100.00% Establishment
information
Electronics
Dahua Russia Russia Russia and 100.00% Establishment
information
Electronics
Dahua
Canada Canada and 100.00% Establishment
Canada
information
Electronics
Dahua
Panama Panama and 100.00% Establishment
Panama
information
Electronics
Dahua
Hungary Hungary and 100.00% Establishment
Hungary
information
Electronics
Dahua Poland Poland Poland and 100.00% Establishment
information
Electronics
Dahua Tunisia Tunisia Tunisia 100.00% Establishment
and
1692023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
information
Electronics
Dahua Kenya Kenya Kenya and 100.00% Establishment
information
Electronics
Dahua UK UK UK and 100.00% Establishment
information
Electronics
Dahua
Bulgaria Bulgaria and 100.00% Establishment
Bulgaria
information
Electronics
Dahua Serbia Serbia Serbia and 100.00% Establishment
information
Electronics
Dahua
Germany Germany and 100.00% Establishment
Germany
information
Electronics
Dahua
Malaysia Malaysia and 100.00% Establishment
Malaysia
information
Electronics
Dahua Korea South Korea South Korea and 100.00% Establishment
information
Electronics
Dahua
Indonesia Indonesia and 67.00% Establishment
Indonesia
information
Electronics
Dahua India India India and 100.00% Establishment
information
Electronics
Dahua Turkey Turkey Turkey and 100.00% Establishment
information
Electronics
Czech Czech
Dahua Czech and 100.00% Establishment
Republic Republic
information
Electronics
Dahua
Argentina Argentina and 100.00% Establishment
Argentina
information
Electronics
Dahua Spain Spain Spain and 100.00% Establishment
information
Electronics
Dahua
Kazakhstan Kazakhstan and 100.00% Establishment
Kazakhstan
information
Electronics
Dahua
Denmark Denmark and 100.00% Establishment
Denmark
information
Electronics
Dahua France France France and 100.00% Establishment
information
Dahua Electronics
Technology Hong Kong Hong Kong and 100.00% Establishment
Holdings information
Electronics
Dahua
Morocco Morocco and 100.00% Establishment
Morocco
information
Dahua Electronics Business
Italy Italy 100.00%
Technology and combination
1702023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Italy information not under
common
control
Electronics
Dahua
Uzbekistan Uzbekistan and 100.00% Establishment
Uzbekistan
information
Electronics
Dahua
Netherlands Netherlands and 100.00% Establishment
Netherlands
information
Electronics
Dahua Sri
Sri Lanka Sri Lanka and 100.00% Establishment
Lanka
information
Electronics
Dahua
Pakistan Pakistan and 100.00% Establishment
Pakistan
information
Electronics
Dahua New
New Zealand New Zealand and 100.00% Establishment
Zealand
information
Electronics
Dahua
Thailand Thailand and 99.98% Establishment
Thailand
information
Electronics
Dahua
Romania Romania and 100.00% Establishment
Romania
information
Electronics
Dahua Nigeria Nigeria Nigeria and 100.00% Establishment
information
Electronics
Dahua Israel Israel Israel and 100.00% Establishment
information
Electronics
Dahua Mexico
Mexico Mexico and 100.00% Establishment
Service
information
Electronics
Huacheng
Netherlands Netherlands and 100.00% Establishment
Netherlands
information
Electronics
Dahua Japan Japan Japan and 100.00% Establishment
information
Electronics
Dahua Qatar Qatar Qatar and 100.00% Establishment
information
Electronics
Huacheng
Hong Kong Hong Kong and 100.00% Establishment
Hong Kong
information
Electronics
Dahua Pacific Panama Panama and 100.00% Establishment
information
Electronics
Dahua Saudi
Saudi Arabia Saudi Arabia and 100.00% Establishment
Arabia
information
Electronics
Dahua Bengal Bangladesh Bangladesh and 100.00% Establishment
information
Electronics
IMOU
Australia Australia and 100.00% Establishment
Australia
information
1712023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Electronics
IMOU
Vietnam Vietnam and 100.00% Establishment
Vietnam
information
Electronics
HuaRay
Singapore Singapore and 100.00% Establishment
Singapore
information
Electronics
Dahua
Belgium Belgium and 100.00% Establishment
Belgium Co.information
Electronics
Dahua Saudi
Saudi Arabia Saudi Arabia and 100.00% Establishment
Arabia Co.information
Electronics
Dahua
Azerbaijan Azerbaijan and 100.00% Establishment
Argentina Co.information
Dahua Electronics
Vietnam Co. Vietnam Vietnam and 100.00% Establishment
Ltd. information
Explanations on the fact that the proportion of the shares held by a subsidiary differs from that of voting rights:
(1) The Company previously held 45% equity in Hangzhou Xiaohua Technology Co. Ltd. and accepted the transfer of
33% equity from individual shareholders in 2023. Following such change the Company directly holds 78% equity in
Hangzhou Xiaohua Technology Co. Ltd. and exercises its voting rights according to its changed equity ratio.
(2) Based on the industrial and commercial registration data the CDB Development Fund holds equity in the Compa ny.
According to the cooperation agreement between the Company and CDB Development Fund CDB Development Fund
shall not appoint senior management personnel such as directors and supervisors to Dahua Zhilian; regarding its
investment the Company shall pay an annual investment profit of 1.2% to CDB Development Fund through dividends
repurchase premiums etc. In addition the Company shall redeem the CDB Development Fund's equity in Dahua
Zhilian period by period from 2022 to 2024 using its amount of investment as other non-current liabilities and
reclassifying those due within one year to "non-current liabilities due within one year". The Company effectively holds
100% voting rights and equity in Dahua Zhilian.
(3) In May 2023 Hangzhou Huacheng Network Technology Co. Ltd. implemented stock option incentives for its
management and core employees through capital increase and share expansion with the registered capital increased
by RMB 7163000. After these stock option incentives were completed the equity of the Company in Hangzhou
Huacheng was changed from 51.00% to 44.61%. After the dilution of equity the Company is still the largest
shareholder of Hangzhou Huacheng and Hangzhou Huacheng is still a controlling subsidiary of the Company covered
by the Company’s consolidated statements.
(4) In March to April 2023 Zhejiang HuaRay Technology Co. Ltd. implemented equity incentives for its management
and core employees through capital increase and share expansion twice with the registered capital increased by RMB
10610400. After these two stock option incentives were completed the equity of the Company in HuaRay Technology
was changed from 42.23% to 35.92%. After the dilution of equity the Company is still the largest shareholder of
HuaRay Technology. The remaining shareholders have a relatively low and dispersed shareholding ratio and HuaRay
Technology is still a controlling subsidiary of the Company covered by the Company’s consolidated statements.
(5) The Company directly holds 45.50% equity in Zhejiang Huafei Intelligent Technology Co. Ltd. and as agreed upon
Ningbo Hualing Venture Capital Investment Partnership (Limited Partnership) grants 16% of its voting rights to the
Company. The Company effectively holds 61.50% of the voting rights in Zhejiang Huafei Intelligence Technology Co.Ltd. which constitutes working control so as to incorporate it into the scope of consolidation.
1722023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(6) 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.
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 March to April 2023 the registered capital of HuaRay Technology increased from RMB 60386500 to RMB
70996900. Due to the Company's abandonment of the same proportion of capital increase right and preemptive right
of HuaRay Technology the Company's original 42.23% equity holding in HuaRay Technology was diluted to 35.92%.After the dilution of equity the Company is still the largest shareholder of HuaRay Technology. The remaining
shareholders have a low and dispersed shareholding ratio and HuaRay Technology is still a subsidiary of the
Company and is incorporated into the scope of consolidation.
2) In May 2023 the registered capital of Hangzhou Huacheng increased from RMB 50000000 to RMB 57163000.
Due to the Company's abandonment of the same proportion of capital increase right and preemptive right of Hangzhou
Huacheng the Company's original 51.00% equity holding in Hangzhou Huacheng was diluted to 44.61%. After the
dilution of equity the Company is still the largest shareholder of Hangzhou Huacheng. Hangzhou Huacheng is still a
subsidiary of the Company and is incorporated into the scope of consolidation.
3) In June 2023 the Company acquired 33.00% equity of three individual shareholders in Hangzhou Xiaohua
Technology Co. Ltd. with a consideration of RMB 3300000. After the acquisition of equity the Company’s original
45.00% equity in Hangzhou Xiaohua Technology Co. Ltd. was increased to 78.00% and following such change the
Company exercises its voting rights according to its changed equity ratio.
(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
Xiaohua Technology Huacheng Network HuaRay Technology
Purchase cost/Disposal
consideration
-- Cash 3300000.00
-- Fair value of non-cash
assets
Purchase cost/ Total
3300000.00
disposal consideration
Less: the share of net
assets of the subsidiary
calculated based on the 738685.13 -1992124.53 81060868.58
ratio of equity
obtained/disposed
Difference 2561314.87 1992124.53 -81060868.58
1732023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Among them: adjust the
-2561314.87-1992124.5381060868.58
capital reserve
Adjusted surplus
reserve
Adjusted
undistributed profits
3. Equity in joint venture arrangements or affiliates
(1) Financial Summary of Non-essential Joint Ventures and Affiliates
Unit: RMB
Closing balance / amount occurred in Opening balance / amount occurred
the current period in the previous period
Joint ventures:
The total count of the following items
based on the shareholding ratios
Affiliates:
Total book value of investments 1192130131.68 1461099644.55
The total count of the following items
based on the shareholding ratios
--Net profit -154531486.76 -190450701.35
--Other comprehensive income 9366194.55 -1895750.09
--Total comprehensive income -145165292.21 -192346451.44
X. Risks Relating to Financial Instruments
In the business operation the Company is facing with various financial risks: credit risk liquidity risk and market
risk (including exchange rate risk interest rate risk and other price risks).The overall objective of the Company's risk management is to formulate risk management policies that can
minimize risks without affecting the Company's competitiveness and adaptability to changes too much.(I) Credit Risk
The credit risk refers to the risk of financial loss to the Company as a result of a counterparty's failure to fulfill its
contractual obligations. The Company is mainly facing with the customer credit risk arising from sales on account.Before signing a new contract the Company will assess the new customer's credit risk including external credit rating
and the credibility letter from a bank under some circumstances (if such information is available). The Company has
set a credit limit for sales on account for each customer. Such limit shall be the maximum amount with no additional
approval needed.The Company ensures that the overall credit risk is within the controllable range through quarterly monitoring of
credit ratings of existing customers and monthly review of aging analysis on accounts receivable. When monitoring
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.
1742023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
For overseas customers the Company mainly uses wire transfer as a payment method. According to the credit
evaluation of each customer the Company gives different credit lines and credit account periods and agrees on the
payment method and account period in the commodity procurement contract between the two parties. After the sales
of products the Company has a dedicated person responsible for tracking reconciliation and payment reminding. In
addition the Company introduced export credit insurance to ensure that the return risk from overseas customers is
within controllable range.(II) Liquidity Risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of settlement by cash
or other financial assets.The Company's policy is to ensure that there is sufficient cash to repay the liabilities due. The liquidity risk is
under the concentrated control of the Company's Financial Department. Through monitoring the balance of cash and
securities cashable at any time and rolling forecasting the cash flow in the next 12 months the Financial Department
ensures that the Company has sufficient funds to repay its debts under all reasonable predictions.The financial liabilities of the Company are listed as follows based on the undiscounted contractual cash flow:
Unit: RMB
June 30 2023
Item
Within 1 year 1 years or above Total
Short-term loan 489869105.97 489869105.97
Notes Payable 3405804594.55 3405804594.55
Accounts Payable 5382245929.49 5382245929.49
Other Payables 726192979.56 726192979.56
Non-current Liabilities Due
2008798155.622008798155.62
within 1 Year
Long-term loan 402000000.00 402000000.00
Lease Liabilities 206135695.46 206135695.46
Total 12012910765.19 608135695.46 12621046460.65
December 31 2022
Item
Within 1 year 1 years or above Total
Short-term loan 257943618.51 257943618.51
Notes Payable 4364097761.17 4364097761.17
Accounts Payable 7340277388.29 7340277388.29
Other Payables 1004056999.91 1004056999.91
Non-current Liabilities
2569150636.832569150636.83
Due within 1 Year
Long-term loan 453825000.00 453825000.00
Lease Liabilities 209266176.61 209266176.61
Total 15535526404.71 663091176.61 16198617581.32
(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
1752023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The interest rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes
due to the change of market interest rate. The interest rate risk faced with by the Company is mainly from bank loans.The Company's assets and liabilities relating to interest rate are respectively bank deposits and short-term loans
whose interest rate risk is low.
2. Exchange rate risk
The exchange rate risk refers to the risk in which the fair value or future cash flow of financial instruments
changes due to the change of foreign exchange rate. The Company will try its best to match the revenues with the
expenses in foreign currency to lower the exchange rate risk. In addition the Company may also sign forward foreign
exchange contracts or currency swap contracts to avoid exchange rate risks.The exchange rate risk faced with by the Company is mainly from financial assets and liabilities in USD. The
amounts of assets and liabilities in foreign currencies and converted into RMB are listed as below:
Unit: RMB
Closing balance Opening balance
Item USD Other foreign Total USD Other foreign Total
currencies currencies
Cash and
Bank 303351166.77 941509677.97 1244860844.74 1014793102.46 593320421.14 1608113523.60
Balances
Accounts
4053047057.162064814089.036117861146.194171664421.392134877260.226306541681.61
receivable
Accounts
279246487.37232397404.61511643891.981764995765.35342688103.072107683868.42
Payable
Total 4635644711.30 3238721171.61 7874365882.91 6951453289.20 3070885784.43 10022339073.63
XI. Disclosure of Fair Values
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
Fair values at period-end
Item First level Second level Third level
measurement at measurement at fair measurement at fair Total
fair value value value
I. Constant
measurement at fair -- -- -- --
value
(I) Trading Financial 1470000.00 1470000.00
Assets
1. Financial assets
measured at fair value 1470000.00 1470000.00
through profit or loss in
this period
(1) Investment in debt
instrument
(2) Investment in equity
instrument
1762023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(3) Derivative Financial
Assets
(4) Others 1470000.00 1470000.00
(II) Investment in Other
Creditor's Rights
(III) Investment in Other
Equity Instruments
(IV) Investment
Property
(V) Biological Assets
(VI) Receivables
592817184.48592817184.48
Financing
(VII) Other Non-current
918439431.49460508886.771378948318.26
Financial Assets
1. Financial assets
measured at fair value
918439431.49460508886.771378948318.26
through profit or loss in
this period
(1) Investment in debt
instrument
(2) Investment in
460508886.77460508886.77
equity instrument
(3) Derivative
Financial Assets
(4) Others 918439431.49 918439431.49
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 1512726615.97 460508886.77 1973235502.74
measured at fair value
(VIII) Transactional 24514280.75 24514280.75
financial liabilities
Of which: Derivative 24514280.75 24514280.75
financial liabilities
Total amount of
liabilities constantly 24514280.75 24514280.75
measured at their fair
values
1772023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2. For the continuous and non-continuous second-level fair value measurement items the
valuation techniques adopted and the qualitative and quantitative information of important
parameters
The fair value of 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.
3. For the continuous and non-continuous third-level fair value measurement items the
valuation techniques adopted and the qualitative and quantitative information of important
parameters
Evaluate the value and net book assets based on the income method and asset-based method.
4. The fair value of financial assets and financial liabilities not measured at fair value
The fair value of financial assets and financial liabilities measured by the Company at amortized cost is equivalent to
the book value.XII. Related Parties and Related-party Transactions
1. The Company's Parent Company
Proportion of
Shareholding
Name of parent Registered Registered voting rights of
Business Nature ratio of the
company Address Capital the parent
parent company
company
Fu Liquan 30.78% 30.78%
Chen Ailing 2.14% 2.14%
The final controllers of the Company are Mr. Fu Liquan and Ms. Chen Ailing.
2. Information about the Company's subsidiaries
For details of subsidiaries of the Company see Note "IX. Equities in other entities".
3. Information about the Company's joint ventures and affiliates
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
1782023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Leapmotor Technology Co. Ltd. and its affiliates Affiliate and enterprise where the actual controller has
(Note 1) significant influence
Ruicity Digital Technology Co. Ltd. Affiliate
Hangzhou Juhuanyan Information Technology Co. Ltd. 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
Institute Co. Ltd.Shaoxing Dahua Security Services Co. Ltd. (Note 2) Previous Affiliate
Other notes
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. Hangzhou Leapmotor Automobile Sales Service Co. Ltd. Wuhan Lingchao Automobile Sales Service Co. Ltd.Zhejiang Leapmotor Automobile Sales Service Co. Ltd. Jinhua Leapmotor New Energy Automotive Parts Technology
Co. Ltd. Zhejiang Lingsheng Technology Co. Ltd. and Shanghai Leapmotor Automobile Marketing Service Co. Ltd.Note 2: Shaoxing Dahua Security Services Co. Ltd. ended the affiliated relationship in March 2023.
4. Information about other related parties
Relationship between the Company and other related
Names of other related parties
parties
Zhejiang Huanuokang Technology Co. Ltd. Enterprise controlled by the actual controller
Huayan Capital (Hangzhou) Private Equity Fund
Enterprise controlled by the actual controller
Management Co. Ltd.China Mobile Communications Group Co. Ltd. and its Group controlled by the major shareholder of the
affiliates Company
Enterprise once controlled by the spouse of senior
Hangzhou Nuojia Technology Co. Ltd. (Note 1)
manager of the Company
Zhejiang Zhihua Internet of Things Technology Co. Ltd.Subsidiary of the previous affiliate
(Note 2)
Company A and other companies under its control Related parties
Enterprise where the actual controller served as a
Lorex Technology Inc.director within 12 months
Enterprise where the actual controller served as a
Lorex Corporation
director within 12 months
Enterprise where the actual controller served as a
Zhejiang Lancable Technology Co. Ltd. (Note 3)
director within 12 months
Enterprise significantly influenced by the major
Hangzhou Vision Robot Technology Co. Ltd. (Note 3)
shareholder of the Company with 12 months
Enterprise controlled by the major shareholder of the
Hangzhou Xintu Technology Co. Ltd. (Note 3)
Company within 12 months
Other notes
Note 1: Hangzhou Nuojia Technology Co. Ltd. was a business controlled by the spouse of a senior manager of the
Company. The spouse disposed of shares and lost the control over the business in January 2022 but it is st ill
recognized as an associated party within 12 months after the disposal and the associated relationship will end in
January 2023. In February 2023 its name was changed as “Hangzhou Nuoja Yunlian Technology Co. Ltd.”
Note 2: Zhejiang Zhihua Internet of Things Technology Co. Ltd. was a controlling subsidiary of Shaoxing Dahua
Security Services Co. Ltd. and ended the affiliated relationship in March 2023.
1792023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Note 3: Zhejiang Lancable Technology Co. Ltd. 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 Over the Amount
Approved
Related parties related - party Occurred in the transaction limit Occurred in the
transaction limit
transaction Current Period or not Previous Period
Company A and
Purchase of
other companies 87944986.38 No 130451406.39
materials
under its control
Zhejiang
Material
Huachuang
procurement
Vision 49224850.97 No
acceptance of
Technology Co.services
Ltd.China Mobile Material
Communications procurement
26348234.68 No 11413569.54
Group Co. Ltd. acceptance of
and its affiliates services
Hangzhou Vision Material
Robot procurement
114093.70 No 5685.12
Technology Co. acceptance of
Ltd. services
Zhejiang
Huanuokang Purchase of
98230.08 No 99999.97
Technology Co. materials
Ltd.Zhejiang
Material
Leapmotor
procurement
Technology Co. 44520.00 No
acceptance of
Ltd. and its
services
affiliates
Hangzhou Nuojia
Acceptance of
Technology Co. No 210616.99
services
Ltd.Sales of merchandise and provision of services
Unit: RMB
Content of the related - Amount Occurred in the Amount Occurred in the
Related parties
party transaction Current Period Previous Period
Intelbras S.A. Sales of merchandise 446779132.82 364654929.70
Lorex Corporation Sales of merchandise 173583588.70
Zhejiang Leapmotor
Sales of merchandise and
Technology Co. Ltd. and 120340837.10 167405053.69
provision of services
its affiliates
China Mobile
Sales of merchandise and
Communications Group 102813489.29 170642375.20
provision of services
Co. Ltd. and its affiliates
1802023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Lorex Technology Inc. Sales of merchandise 23250958.71
Ruicity Digital Technology
Sales of merchandise 8946222.30 8592707.81
Co. Ltd.Ningbo Cida Yongshun
Intelligent Technology Co. Sales of merchandise 7655090.67
Ltd.Zhejiang Huachuang
Sales of merchandise and
Vision Technology Co. 3007439.49
provision of services
Ltd.Dezhou Shuzhi Information Sales of merchandise and
2199876.10
Technology Co. Ltd. provision of services
Guangdong Zhishi Digital
Sales of merchandise 1839830.02 10008308.98
Technology Co. Ltd.Zhejiang Huanuokang
Sales of merchandise 549768.52 1123013.63
Technology Co. Ltd.Guangxi FTZ Huaqin
Wisdom Park Technology Sales of merchandise 63004.88
Research Institute Co. Ltd.Zhejiang Lancable
Sales of merchandise 20300.89
Technology Co. Ltd.Company A and other
companies under its Sales of merchandise 17638.82 69437.96
control
Hangzhou Vision Robot
Sales of merchandise 4513.28 1061.95
Technology Co. Ltd.Hangzhou Xintu
Provision of labor services 3066.44 2358.48
Technology Co. Ltd.Hangzhou Nuojia
Sales of merchandise 64601.77
Technology Co. Ltd.Zhejiang Zhihua Internet of
Things Technology Co. Sales of merchandise 1769.91
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
Buildings and constructions 901966.90 102857.15
Technology Co. Ltd.Zhejiang Leapmotor
Technology Co. Ltd. and Buildings and constructions 134487.98 129297.61
its affiliates
Huayan Capital
(Hangzhou) Private Equity
Buildings and constructions 52702.78
Fund Management Co.Ltd.Zhejiang Huachuang
Vision Technology Co. Buildings and constructions 10045.87
Ltd.Company A and other
companies under its Transport equipment 15486.73
control
1812023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
The Company being the lessee:
Unit: RMB
Simplified rental Variable lease
expenses for payments not
Interest expense
short-term leases included in the Increased right-
Rent paid on lease
and low-value measurement of of-use assets
liabilities borne
asset leases (if lease liabilities (if
Type applicable) applicable)
Name
of the Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
of the
leased t t t t t t t t t t
lessor
assets Occurr Occurr Occurr Occurr Occurr Occurr Occurr Occurr Occurr Occurr
ed in ed in ed in ed in ed in ed in ed in ed in ed in ed in
the the the the the the the the the the
Curren Previo Curren Previo Curren Previo Curren Previo Curren Previo
t us t us t us t us t us
Period Period Period Period Period Period Period Period Period Period
Zhejia
ng
Leapm
otor Machin
Techn ery
1034103412235134938884
ology and
915.00915.007.014.57640.73
Co. equip
Ltd. ment
and its
affiliate
s
(3) Related guarantee
The Company being the guarantor:
Unit: RMB
Guarantee
fulfilled
Secured parties Amount guaranteed Starting date Maturity date
completely
or not
Three years after the
Zhejiang Dahua Vision
300000000.00 June 10 2022 maturity of the debts in the Yes
Technology Co. Ltd.master contract
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Dahua Vision
200000000.00 June 10 2022 of each note discounted by Yes
Technology Co. Ltd.the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Dahua Vision of each note discounted by
200000000.00 June 9 2023 Yes
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
Two years after the maturity
Zhejiang Dahua Vision
220000000.00 October 13 2017 of the debts in the master No
Technology Co. Ltd.contract
1822023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Dahua Vision
Two years after the maturity
Technology Co. Ltd.
40000000.00 September 21 2018 of the debts in the master No
(guarantee currency is
contract
US dollar)
Zhejiang Dahua Vision
530000000.00 April 7 2020 March 31 2024 No
Technology Co. Ltd.Two years after the maturity
Zhejiang Dahua Vision
600000000.00 August 12 2020 of the debts in the master No
Technology Co. Ltd.contract
Two years after the maturity
Zhejiang Dahua Vision
330000000.00 August 18 2020 of the debts in the master No
Technology Co. Ltd.contract
Five years upon expiration
Zhejiang Dahua Vision
300000000.00 August 15 2020 of debt period of master No
Technology Co. Ltd.contract
Three years after the
Zhejiang Dahua Vision
1000000000.00 February 4 2021 maturity of the debts in the No
Technology Co. Ltd.master contract
Three years after the
Zhejiang Dahua Vision
440000000.00 July 26 2021 maturity of the debts in the No
Technology Co. Ltd.master contract
Zhejiang Dahua Vision
35000000.00 August 1 2021 July 31 2023 No
Technology Co. Ltd.Three years after the
Zhejiang Dahua Vision
900000000.00 September 27 2021 maturity of the debts in the No
Technology Co. Ltd.master contract
Three years after the
Zhejiang Dahua Vision
200000000.00 October 20 2021 maturity of the debts in the No
Technology Co. Ltd.master contract
Three years after the
Zhejiang Dahua Vision
200000000.00 July 22 2022 maturity of the debts in the No
Technology Co. Ltd.master contract
Three years after the
Zhejiang Dahua Vision
350000000.00 July 25 2022 maturity of the debts in the No
Technology Co. Ltd.master contract
Zhejiang Dahua Vision
600000000.00 September 19 2022 September 18 2024 No
Technology Co. Ltd.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
Zhejiang Dahua Vision Branch of China Merchants
400000000.00 June 9 2023 No
Technology Co. Ltd. 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.From the start of the
guarantee period to three
years after the maturity date
Zhejiang Dahua Vision of each note discounted by
200000000.00 June 25 2023 No
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
Zhejiang Dahua Zhilian One years upon expiration
Co. Ltd. (guarantee 60000000.00 May 1 2022 of debt period of master Yes
currency is US dollar) contract
1832023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Dahua Zhilian
Co. Ltd. (guarantee 55000000.00 May 14 2022 May 14 2023 Yes
currency is US dollar)
Three years after the
Zhejiang Dahua Zhilian
160000000.00 June 10 2022 maturity of the debts in the Yes
Co. Ltd.master contract
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Dahua Zhilian
160000000.00 June 10 2022 of each note discounted by Yes
Co. Ltd.the China Merchants Bank
within the credit extension
period
Zhejiang Dahua Zhilian
Co. Ltd. (guarantee 22000000.00 November 16 2022 May 14 2023 Yes
currency is US dollar)
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Dahua Zhilian of each note discounted by
160000000.00 June 9 2023 Yes
Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
Two years after the maturity
Zhejiang Dahua Zhilian
300000000.00 March 28 2019 of the debts in the master No
Co. Ltd.contract
Three years after the
Zhejiang Dahua Zhilian
165000000.00 July 26 2021 maturity of the debts in the No
Co. Ltd.master contract
Three years after the
Zhejiang Dahua Zhilian
200000000.00 November 10 2021 maturity of the debts in the No
Co. Ltd.master contract
Zhejiang Dahua Zhilian
Co. Ltd. (guarantee 5000000.00 December 3 2021 December 2 2024 No
currency is US dollar)
Zhejiang Dahua Zhilian
80000000.00 March 25 2022 December 31 2023 No
Co. Ltd.One years upon expiration
Zhejiang Dahua Zhilian
10000000.00 May 1 2022 of debt period of master No
Co. Ltd.contract
Zhejiang Dahua Zhilian
200000000.00 August 25 2022 August 25 2025 No
Co. Ltd.Zhejiang Dahua Zhilian
150000000.00 September 19 2022 September 18 2024 No
Co. Ltd.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
Zhejiang Dahua Zhilian Branch of China Merchants
160000000.00 June 9 2023 No
Co. Ltd. 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 Zhilian
120000000.00 June 19 2023 June 18 2024 No
Co. Ltd.Zhejiang Dahua Zhilian 350000000.00 June 19 2023 June 18 2024 No
1842023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Co. Ltd.Zhejiang Dahua Three years after the
System Engineering 40000000.00 June 10 2022 maturity of the debts in the Yes
Co. Ltd. master contract
From effective date of the
Commitment Letter to three
Zhejiang Dahua years after the maturity date
System Engineering 40000000.00 June 10 2022 of each note discounted by Yes
Co. Ltd. the China Merchants Bank
within the credit extension
period
Zhejiang Dahua Two years after the maturity
System Engineering 10000000.00 August 30 2019 of the debts in the master No
Co. Ltd. contract
Zhejiang Dahua Three years after the
System Engineering 60000000.00 November 10 2021 maturity of the debts in the No
Co. Ltd. master contract
Zhejiang Dahua Three years after the
System Engineering 50000000.00 July 25 2022 maturity of the debts in the No
Co. Ltd. master contract
Zhejiang Dahua
System Engineering 5000000.00 August 25 2022 August 25 2025 No
Co. Ltd.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
Zhejiang Dahua
Branch of China Merchants
System Engineering 40000000.00 June 9 2023 No
Bank or the advance date of
Co. Ltd.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.Dahua Technology
(HK) Limited
2000000.00 March 25 2022 March 25 2023 Yes
(guarantee currency is
US dollar)
Dahua Technology
(HK) Limited
2000000.00 April 21 2023 April 21 2024 No
(guarantee currency is
US dollar)
DAHUA
TECHNOLOGY
MEXICO S.A. DE C.V 1000000.00 September 1 2021 December 1 2023 No
(guaranteed currency
is US dollar)
DAHUA
TECHNOLOGY
MEXICO S.A. DE C.V 5000000.00 October 21 2022 October 20 2023 No
(guaranteed currency
is US dollar)
Hangzhou Huacheng Two years after the maturity
Network Technology 50000000.00 August 30 2019 of the debts in the master No
Co. Ltd. contract
Hangzhou Huacheng Three years after the
Network Technology 55000000.00 July 26 2021 maturity of the debts in the No
Co. Ltd. master contract
1852023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Hangzhou Huacheng
Network Technology 65000000.00 August 25 2022 August 25 2025 No
Co. Ltd.Dahua Technology UK
Sign the Termination Notice
Limited (guaranteed 1160000.00 August 12 2020 No
Letter
currency is GBP)
Three years after the
Zhejiang Huayixin
10000000.00 April 29 2022 maturity of the debts in the No
Technology Co. Ltd.master contract
Zhejiang Huayixin
Three years after the
Technology Co. Ltd.
2000000.00 May 16 2022 maturity of the debts in the No
(guarantee currency is
master contract
US dollar)
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Huayixin
10000000.00 June 10 2022 of each note discounted by Yes
Technology Co. Ltd.the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Huayixin of each note discounted by
10000000.00 June 9 2023 Yes
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
Zhejiang Huayixin
2000000.00 August 25 2022 August 25 2025 No
Technology Co. Ltd.Zhejiang Huayixin
8000000.00 October 21 2022 September 18 2024 No
Technology Co. Ltd.From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Fengshi
20000000.00 June 10 2022 of each note discounted by Yes
Technology Co. Ltd.the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Fengshi of each note discounted by
20000000.00 June 9 2023 Yes
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
Zhejiang Fengshi
100000000.00 August 25 2022 August 25 2025 No
Technology Co. Ltd.Zhejiang Fengshi
20000000.00 October 21 2022 September 18 2024 No
Technology Co. Ltd.From the start of the
guarantee period to three
years after the maturity date
Zhejiang Fengshi of each note discounted by
20000000.00 June 25 2023 No
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
Jiangsu Huaruipin years after the maturity date
10000000.00 June 9 2023 Yes
Technology Co. Ltd. of each note discounted by
the Hangzhou Branch of
China Merchants Bank
1862023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Jiangsu Huaruipin
10000000.00 June 10 2022 of each note discounted by Yes
Technology Co. Ltd.the China Merchants Bank
within the credit extension
period
Three years after the
Jiangsu Huaruipin
10000000.00 October 20 2021 maturity of the debts in the No
Technology Co. Ltd.master contract
Jiangsu Huaruipin
8000000.00 August 25 2022 August 25 2025 No
Technology Co. Ltd.Jiangsu Huaruipin
15000000.00 October 21 2022 September 18 2024 No
Technology Co. Ltd.From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Huaxiao
10000000.00 June 10 2022 of each note discounted by Yes
Technology Co. Ltd.the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Huaxiao of each note discounted by
10000000.00 June 9 2023 Yes
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
Zhejiang Huaxiao
2000000.00 August 25 2022 August 25 2025 No
Technology Co. Ltd.Zhejiang Huaxiao
8000000.00 October 21 2022 September 18 2024 No
Technology Co. Ltd.From effective date of the
Commitment Letter to three
years after the maturity date
Xi'an Dahua Zhilian
50000000.00 June 10 2022 of each note discounted by Yes
Technology Co. Ltd.the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Xi'an Dahua Zhilian of each note discounted by
50000000.00 June 9 2023 Yes
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
Xi'an Dahua Zhilian
100000000.00 August 25 2022 August 25 2025 No
Technology Co. Ltd.Xi'an Dahua Zhilian
25000000.00 October 21 2022 September 18 2024 No
Technology Co. Ltd.From the start of the
guarantee period to three
years after the maturity date
Xi'an Dahua Zhilian
50000000.00 June 25 2023 of each note discounted by No
Technology Co. Ltd.the Hangzhou Branch of
China Merchants Bank
within the credit extension
1872023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
period
From effective date of the
Commitment Letter to three
Zhengzhou Dahua years after the maturity date
Zhian Information 50000000.00 June 10 2022 of each note discounted by Yes
Technology Co. Ltd. the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhengzhou Dahua
of each note discounted by
Zhian Information 50000000.00 June 9 2023 Yes
the Hangzhou Branch of
Technology Co. Ltd.China Merchants Bank
within the credit extension
period
Zhengzhou Dahua
Zhian Information 30000000.00 August 25 2022 August 25 2025 No
Technology Co. Ltd.From the start of the
guarantee period to three
years after the maturity date
Zhengzhou Dahua
of each note discounted by
Zhian Information 50000000.00 June 25 2023 No
the Hangzhou Branch of
Technology Co. Ltd.China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
Chengdu Dahua Zhian years after the maturity date
Information Technology 100000000.00 June 10 2022 of each note discounted by Yes
Service Co. Ltd. the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Chengdu Dahua Zhian
of each note discounted by
Information Technology 80000000.00 June 9 2023 Yes
the Hangzhou Branch of
Service Co. Ltd.China Merchants Bank
within the credit extension
period
From the start of the
guarantee period to three
years after the maturity date
Chengdu Dahua Zhian
of each note discounted by
Information Technology 80000000.00 June 25 2023 No
the Hangzhou Branch of
Service Co. Ltd.China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Changsha Dahua
10000000.00 June 10 2022 of each note discounted by Yes
Technology Co. Ltd.the China Merchants Bank
within the credit extension
period
1882023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
From effective date of the
Commitment Letter to three
years after the maturity date
Changsha Dahua of each note discounted by
10000000.00 June 9 2023 Yes
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
Changsha Dahua
30000000.00 August 25 2022 August 25 2025 No
Technology Co. Ltd.Changsha Dahua
20000000.00 October 21 2022 September 18 2024 No
Technology Co. Ltd.From the start of the
guarantee period to three
years after the maturity date
Changsha Dahua of each note discounted by
10000000.00 June 25 2023 No
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Pixfra
5000000.00 June 10 2022 of each note discounted by Yes
Technology Co. Ltd.the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Pixfra of each note discounted by
5000000.00 June 9 2023 Yes
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
Zhejiang Pixfra
5000000.00 August 25 2022 August 25 2025 No
Technology Co. Ltd.From effective date of the
Commitment Letter to three
Zhejiang Huafei years after the maturity date
Intelligent Technology 5000000.00 June 10 2022 of each note discounted by Yes
CO. LTD. the China Merchants Bank
within the credit extension
period
Zhejiang Huafei
Intelligent Technology 2000000.00 August 25 2022 August 25 2025 No
CO. LTD.From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Huajian
5000000.00 June 10 2022 of each note discounted by Yes
Technology Co. Ltd.the China Merchants Bank
within the credit extension
period
From effective date of the
Commitment Letter to three
years after the maturity date
Zhejiang Huajian of each note discounted by
5000000.00 June 9 2023 Yes
Technology Co. Ltd. the Hangzhou Branch of
China Merchants Bank
within the credit extension
period
Zhejiang Huajian
2000000.00 August 25 2022 August 25 2025 No
Technology Co. Ltd.
1892023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
From effective date of the
Commitment Letter to three
years after the maturity date
Hangzhou Xiaohua
5000000.00 June 10 2022 of each note discounted by Yes
Technology CO. LTD.the China Merchants Bank
within the credit extension
period
Hangzhou Xiaohua
2000000.00 August 25 2022 August 25 2025 No
Technology CO. LTD.Zhejiang Dahua
Security Network
5000000.00 August 25 2022 August 25 2025 No
Operation Service Co.Ltd.
(4) Asset transfer and debt restructuring of related parties
Unit: RMB
Content of the related - Amount Occurred in the Amount Occurred in the
Related parties
party transaction Current Period Previous Period
China Mobile
Procurement of Projects
Communications Group 1767786.05
under Construction
Co. Ltd. and its affiliates
Zhejiang Huachuang
Vision Technology Co. Selling of fixed assets 612608.16
Ltd.Zhejiang Huachuang
Procurement of fixed
Vision Technology Co. 40630.42
assets
Ltd.Zhejiang Huanuokang
Selling of fixed assets 2792.34 3078.06
Technology Co. Ltd.Zhejiang Leapmotor
Procurement of fixed
Technology Co. Ltd. and 842105.08
assets
its affiliates
(5) Remuneration to key management personnel
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Salary of key management personnel 4650848.77 4860645.75
(6) Other related-party transactions
1. On February 17 2023 the "Proposal on Proposed Increase of Capital by Some Senior Managers and Core
Employees of the Company to the Spin-off Subsidiaries and Related Transactions" was reviewed and approved at the
39th session of the 7th Board of Directors and the 27th session of the 7th Board of Supervisors. It has been agreed
that some senior managers and core employees of the Company can increase the capital of RMB 6049190(where
the registered capital was increased by RMB 1675676 and the balance was included in the capital reserves) to the
holding subsidiary Zhejiang HuaRay Technology Co. Ltd.(hereinafter referred to as “HuaRay Technology”). 11 natural
persons consisting of senior managers including Zhao Yuning Zhu Jiantang etc. increased directly the capital by RMB
4839353 in total. After this capital increase the equity of the Company in HuaRay Technology will be changed from
1902023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
42.228% to 41.0878% and HuaRay Technology will still be a holding subsidiary of the Company covered by the
Company’s consolidated statements.
2. On March 17 2023 the "Proposal on Capital Increase and Share Expansion in the Holding Subsidiary to Introduce
Investors and Related Transactions" was reviewed and approved at the 40th session of the 7th Board of Directors held
by the Company. It has been agreed that the holding subsidiary HuaRay Technology can introduce through capital
increase and share expansion a total of 8 investors including Yibin Lvneng Equity Investment Partnership (Limited
Partnership) and Zhu Jiangming. The Investors will increase the monetary capital of HuaRay Technology by RMB
260000061 (where RMB 8934710 is taken as the new registered capital and the balance is included in the capital
reserves) and obtain a total of 12.58% equity in HuaRay Technology after the capital increase. After this capital
increase the equity of the Company in HuaRay Technology will be changed from 41.0878% to 35.9171% and
HuaRay Technology will still be a holding subsidiary of the Company covered by the Company’s consolidated
statements.
3. On April 7 2023 the "Proposal on Giving up the Subsidiary's Right of First Refusal(ROFR) and Related-party
Transactions" was reviewed and approved at the 41st meeting of the 7th Board of Directors where Zhejiang Huashi
Investment Management Co. Ltd. the shareholder of Zhejiang Huaxiao Technology Co. Ltd.(hereinafter referred to
as "Huaxiao Technology") transferred its 20% equity to Huaxiao's employee stock ownership platform and core
management-level staff and the Board of Directors agreed that the Company may give up the right of first refusal.
4. On April 7 2023 the Company held the 41st meeting of the 7th Board of Directors and the 28th meeting of the 7th
Board of Supervisors at which the "Proposal on the Implementation of Equity Incentive and Related Transactions of
Controlled Subsidiaries" was deliberated and approved agreeing that Hangzhou Huacheng Network Technology Co.Ltd. (hereinafter referred to as "Huacheng Network") one of the Company's controlled subsidiaries would propose to
offer stock option incentives to its directors supervisors and management and core employees by means of capital
increase. Among them the Company's director Zhao Yuning supervisor Zheng Jieping and senior executives Liu Ming
Zhu Jiantang Li Zhijie Xu Zhicheng Wu Jian Song Ke Xu Qiaofen etc. injected RMB 7881049.75 into Huacheng
Network (an increase in registered capital of RMB 2236316). After this stock option incentives the equity of the
Company in Huacheng Network was changed from 51% to 44.61% and Huacheng Network is still a holding subsidiary
of the Company covered by the Company's consolidated statements.
5. On June 25 2023 the Company held the 45th meeting of the 7th Board of Directors and the 32nd meeting of the
7th Board of Supervisors at which the "Proposal on Capital Increase and Implementation of Equity Incentive and
Related Transactions of Controlled Subsidiaries" was deliberated and approved and agreeing that Zhejiang Huagan
Technology Co. Ltd. ("Huagan Technology") one of the Company's controlled subsidiaries would injected RMB
539.8647 million into Huagan Technology (an increase in registered capital of RMB 281.09169 million) based on the
value of its the thermal imaging business and related assets. At the same time Huagan Technology offered incentives
to some directors supervisors senior executives core employees and their core management team through capital
increase and the issue price is RMB 1 / registered capital.
6. According to the business planning of Xiaohua Technology the Company purchases from the related person Zuo
Pengfeng his 1% equity in Xiaohua Technology at the price of RMB 1/registered capital with a total price of RMB
100000 during the reporting period.
1912023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
6. Receivables and payables of the related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Item Name Related parties Bad debt Bad debt
Book balance Book balance
provision provision
Accounts
Intelbras S.A. 449893614.14 22494680.70 397867692.70 19895705.61
receivable
Accounts Lorex
352596125.6217629806.28421294479.9522971174.01
receivable Corporation
China Mobile
Accounts Communications
165934267.8214451265.81169771631.7813418528.87
receivable Group Co. Ltd.and its affiliates
Zhejiang
Leapmotor
Accounts
Technology Co. 143164276.34 7158213.82 125228191.88 6287574.59
receivable
Ltd. and its
affiliates
Zhejiang
Huachuang
Accounts
Vision 22689604.31 1898801.99 66484746.14 6468047.41
receivable
Technology Co.Ltd.Ruicity Digital
Accounts
Technology Co. 19834500.62 991725.03 18091127.92 904556.40
receivable
Ltd.Accounts Lorex
15957711.60797885.581589271.4287438.04
receivable Technology Inc.Ningbo Cida
Yongshun
Accounts
Intelligent 9704319.01 485215.95 6944214.63 347210.73
receivable
Technology Co.Ltd.Guangdong
Accounts Zhishi Digital
8159003.45541082.997558397.45377919.87
receivable Technology Co.Ltd.Zhejiang
Accounts Huanuokang
5549046.16487937.145029172.47319416.79
receivable Technology Co.Ltd.Company A and
Accounts
other companies 2708124.52 1039399.02 2703192.68 694554.83
receivable
under its control
Dezhou Shuzhi
Accounts Information
2295990.00114799.50
receivable Technology Co.Ltd.Hangzhou
Juhuanyan
Accounts
Information 1208000.00 391683.00 1208000.00 344113.20
receivable
Technology Co.Ltd.
1922023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang
Accounts Lancable
18970.00948.50
receivable Technology Co.Ltd.Hangzhou Xintu
Accounts
Technology Co. 223.14 11.16 81.66 4.08
receivable
Ltd.Huayan Capital
(Hangzhou)
Accounts Private Equity
60.503.03181.509.08
receivable Fund
Management
Co. Ltd.Hangzhou Nuojia
Accounts
Technology Co. 652335.00 32616.75
receivable
Ltd.Shaoxing Dahua
Accounts Security
50000.0025000.00
receivable Services Co.Ltd.Hangzhou Vision
Accounts Robot
850.0042.50
receivable Technology Co.Ltd.China Mobile
Communications
Contract Assets 7960611.90 1278565.67 7126589.32 1219481.49
Group Co. Ltd.and its affiliates
Ruicity Digital
Contract Assets Technology Co. 118133.36 5906.67 481393.33 24069.67
Ltd.Dezhou Shuzhi
Information
Contract Assets 71010.00 3550.50
Technology Co.Ltd.China Mobile
Other Communications
2670834.39199277.001523267.68401163.38
Receivables Group Co. Ltd.and its affiliates
(2) Payables
Unit: RMB
Item Name Related parties Closing balance Opening balance
China Mobile
Accounts Payable Communications Group 38611071.30 40781816.94
Co. Ltd. and its affiliates
Zhejiang Huachuang
Accounts Payable Vision Technology Co. 14387162.95 4578103.79
Ltd.Zhejiang Huanuokang
Accounts Payable 706491.42 586402.95
Technology Co. Ltd.Ruicity Digital Technology
Accounts Payable 200000.00 200000.00
Co. Ltd.Hangzhou Vision Robot
Accounts Payable 88495.58
Technology Co. Ltd.
1932023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang Leapmotor
Accounts Payable Technology Co. Ltd. and 71868.00 19080.00
its affiliates
Zhejiang Lancable
Accounts Payable 3970.00 175176.90
Technology Co. Ltd.Hangzhou Nuojia
Accounts Payable 1346249.09
Technology Co. Ltd.China Mobile
Contract liabilities Communications Group 2431321.15 7772167.32
Co. Ltd. and its affiliates
Zhejiang Leapmotor
Contract liabilities Technology Co. Ltd. and 645765.56 491074.23
its affiliates
Ruicity Digital Technology
Contract liabilities 463878.18
Co. Ltd.Zhejiang Huachuang
Contract liabilities Vision Technology Co. 20011.51
Ltd.Hangzhou Xintu
Contract liabilities 3721.09 1362.62
Technology Co. Ltd.Dezhou Shuzhi Information
Contract liabilities 105185.84
Technology Co. Ltd.Zhejiang Zhihua Internet of
Contract liabilities Things Technology Co. 2830.19
Ltd.China Mobile
Other Payables Communications Group 1320000.00 1070000.00
Co. Ltd. and its affiliates
Zhejiang Leapmotor
Other Payables Technology Co. Ltd. and 173520.00 173520.00
its affiliates
Zhejiang Huanuokang
Other Payables 63070.00 63070.00
Technology Co. Ltd.XIII. Share-based payment
1. Overview of share-based payment
□ Applicable □ Not applicable
Unit: RMB
Total amount of equity instruments granted by the
Company in current period
Total amount of equity instruments exercised by the
Company in current period
Total amount of equity instruments of the Company 31795580 restricted stocks and 31861466 stock
invalidated in current period options
The range of the exercise prices of outstanding stock The exercise price of stock option is RMB 16.59 per
options issued by Company at the end of the period and share and the remaining period of the contract is 36
the remaining contractual term months
The range of the exercise prices of other outstanding The granting price of restricted stock is RMB 8.16 per
equity instruments issued by Company at the end of the share and the remaining term of the contract is 36
period and the remaining contractual term months
Other notes
(1) Overview to Equity Incentive Plan
1942023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Granting of restricted stocks and stock options in 2022
According to the "Proposal on the Company's Stock Option and Restricted Stock Incentive Plan in 2022 (Draft) and itsAbstracts” reviewed and approved at the 27th session of the 7th Board of Directors held by the Company on April 1
2022 and approved at the 2021 Annual Shareholders' General Meeting held on May 16 2022 the Company granted
74.864 million restricted stocks and 74.864 million stock options under its equity incentive plan.
After review at the 32nd session of the 7th Board of Directors held on June 27 2022 the Company granted the
restricted stocks and stock options on the granting date of June 27 2022. The Company actually granted 74737700
restricted stocks to 4249 senior managers other managers and key business personnel on the granting date of June
27 2022 at the granting price of RMB 8.16; and granted 74735300.00 stock options on the granting date of June 27
2022 at the granting price of RMB 16.59.
The validity period lock-up period and unlocking period of the equity incentive plan are as follows: the validity period of
the restricted stock incentive plan is from the date of registration of the grant of the restricted stocks to the date of
unlocking or repurchase and cancellation of all the restricted stocks granted to the incentive objects which shall be no
longer than 48 months. The restricted stocks granted shall be unlocked in three phases upon expiry of a 12-month
period from the date of registration of the grant and the percentage of restricted stocks unlocked in these phases shall
be 40% 30% and 30% respectively.The previous unlocking performance conditions are as follows:
Unlocking time Period of unlocking Performance conditions
It starts from the first trading date upon
expiry of the 12-month period from the Based on the operating revenue in 2021 the annual
date of registration of the grant and ends revenue growth rate in 2022 was not less than 16%; or
Unlocking condition for the first time
on the last trading date within the 24- based on the net profit in 2021 the net profit growth
month period from the date of registration rate in 2022 was not less than 16%;
of the grant
It starts from the first trading date upon
expiry of the 24-month period from the Based on the operating revenue in 2021 the annual
date of registration of the grant and ends revenue growth rate in 2023 is not less than 34%; or
Unlocking condition for the second time
on the last trading date within the 36- based on the net profit in 2021 the net profit growth
month period from the date of registration rate in 2023 is not less than 34%
of the grant
It starts from the first trading date upon
expiry of the 36-month period from the Based on the operating revenue in 2021 the annual
date of registration of the grant and ends revenue growth rate in 2024 will be not less than 56%;
Unlocking condition for the third time
on the last trading date within the 48- or based on the net profit in 2021 the net profit growth
month period from the date of registration rate in 2024 will be not less than 56%
of the grant
For new unlocking performance conditions see “4. Modification and termination of share-based payment” below.
1952023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
(2) The employees of the Company and its subsidiaries hold the equity of the subsidiary HuaRay Technology through
capital increase direct or indirect equity transfers. According to the fair value of the investors recently introduced by
the subsidiary Huaray Technology the confirmed share-based payment fee is RMB 77456116.90.
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
The method for determining the fair value of equity or stock price of the most recent external investor entry
instruments on the day of granting as at the grant date while the fair value of the stock
options shall be determined under the Black-Scholes
Model
The basis for determining the amount of exercisable Estimated according to equity instruments held by the
equity instruments employees
Reason for the significant difference between the
N/A
estimation of current period and the previous period
The accumulated amount of equity-settled share-based
304082051.26
payment counted into the capital reserve
Amount of equity-settled share-based payment confirmed
168150131.40
in current period
Other notes
The amount of employee service that the Company received in exchange by equity payments in this period was RMB
168150131.40 in which minority shareholders enjoyed RMB 32444201.86.
3. Situation of cash-settled share-based payment
□ Applicable □ Not applicable
4. Modification and termination of share-based payment
According to the resolution of the 44th session of the 7th Board of Directors held by the Company on June 16 2023 the"Proposal on the Company's Stock Option and Restricted Stock Incentive Plan in 2022 (Draft) and its Abstracts” was
reviewed and approved to adjust the exercise conditions and as of the date of disclosure of this Report the Proposal was
to be submitted to the shareholders' meeting for review. The adjusted performance conditions are as follows:
Period of unlocking Performance evaluation targets
Based on the operating revenue in 2021 the annual revenue growth rate in
First period of unlocking 2022 was not less than 16%; or based on the net profit in 2021 the net profit
growth rate in 2022 was not less than 16%
Based on the operating revenue in 2022 the annual revenue growth rate in
Second period of unlocking 2023 is not less than 35%; or based on the net profit in 2022 the net profit
growth rate in 2023 is not less than 35%
Based on the operating revenue in 2022 the annual revenue growth rate in
Third period of unlocking 2024 will be not less than 83%; or based on the net profit in 2022 the net
profit growth rate in 2024 will be not less than 83%
Note: "Operating Revenue" above means the operating revenue as used in the audited consolidated statements of listed
companies and the first period of unlocking for the "Net Profit" above means the value of net profit attributable to
shareholders of the company as used in the audited consolidated statements of listed companies and the second period of
unlocking and the third period of unlocking mean the value of net profit attributable to shareholders of the company after
deducting non-recurring gains and losses as used in the audited consolidated statements of listed companies.The corresponding coefficient of proportionality is set for the two evaluation years of 2023 and 2024 as follows according
to the current performance completion rate (R) in consideration of the factors including changes in the macro market
environment:
Performance R≥100% 100%〉R≥90% 90%〉R≥80% R〈80%
1962023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
completion rate (R)
Corresponding
10.90.80
coefficient of R
Note: 1. Current performance completion rate (R) means the higher of the current operating revenue completion rate and
the completion rate of the current net profit after deducting the non-recurring gains and losses.
2. Current operating revenue completion rate = actual growth rate of the current operating revenue/target growth rate of
the current operating revenue * 100%; current net profit = actual growth rate of the current net profit/target growth rate of
the current net profit * 100%.
3. According to the indicator of the performance completion rate (R) the Company unlocks the restricted stocks held by
the incentive objects in the very year of evaluation the number of which is: number of restricted stocks held by the
incentive objects in the very year of evaluation * corresponding coefficient of R; and confirms the number of stock options
to be exercised by the incentive objects in the very year of evaluation the number of which is: number of stock options to
be exercised by the incentive objects in the very year of evaluation * corresponding coefficient of R.XIV. Commitments and contingencies
1. Significant commitments
Important commitments on the balance sheet day
As of June 30 2023 the Company's pledge information was as follows:
(1) On August 19 2016 the subsidiary Xinjiang Dahua Zhixin Information Technology LLC pledged its future accounts
receivable amounting to RMB 351064980.00 incurred from the available service fee under the Franchise Agreement
for the Shihezi "Safe Shicheng" PPP Project and signed the Fixed Assets Loan Contract (total contract amount: RMB
230000000.00 contract No.: 2016-01) with Shihezi Sub-Branch of the Construction Bank of China to provide a
guarantee for the loan (term of borrowing: from August 2016 to August 2027 loan contract No.: 2016-01) of Xinjiang
Dahua Zhixin Information Technology LLC amounting to RMB 230000000.00. As of June 30 2023 the pledged
receivables amounted to RMB 150899631.06 (including the long-term receivable balance RMB 122659963.34 and
the balance of the non-current assets mature within one year RMB 28239667.72). The loan balance under the
guarantee contract was RMB 77500000.00 (where the long-term loan balance was RMB 52000000.00 and the
balance of non-current liabilities mature within one year was RMB 25500000.00).
(2) On July 6 2022 the Company and Hangzhou Branch of Zheshang Bank Co. Ltd. entered into the "Guarantee
Contract for Pledge of Asset Pool" with the number (33100000) Zheshang Asset Pool Quality (2022) No. 13331 (the
contract term is from July 6 2022 to June 28 2023) to provide a guarantee for the "Asset Pool Business Cooperation
Agreement" signed by the Company together with the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. the
subsidiary Zhejiang Dahua System Engineering Co. Ltd. and Hangzhou Branch of Zheshang Bank Co. Ltd. The
financing amount for the fund's pledge pool cannot be more than RMB 2.5 billion. On June 20 2023 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 (2023) No. 08879 (the contract term is from June 20 2023 to
January 12 2024) 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.
1972023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Under the notes pool business as of June 30 2023 the Company had undue notes receivable of RMB
482817011.98 (where RMB 470000000.00 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
424043456.38 (where RMB 50000000.00 was related party notes receivable that should be included in the scope of
consolidation) and the subsidiary Zhejiang Dahua System Engineering Co. Ltd. had undue notes receivable of RMB
1959350.00. Under the pledge the Company issued the bank acceptance bills in the amount of RMB 68609609.34
the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. issued the bank acceptance bills in the amount of RMB
435322650.22 and the subsidiary Zhejiang Dahua System Engineering Co. Ltd. issued the bank acceptance bills in
the amount of RMB 59937.90.
(3) On June 30 2022 the subsidiary Zhejiang Dahua Zhilian Co. Ltd. and Hangzhou Branch of Zheshang Bank Co.
Ltd. entered into the "Guarantee Contract for Pledge of Asset Pool" with the number (33100000) Zheshang Asset Pool
Quality (2022) No. 13592 (the contract term is from June 30 2022 to June 28 2023) to provide a guarantee for the
"Asset Pool Business Cooperation Agreement" signed by 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. On June 21 2023 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 (2023) No. 08817 (the contract term is from June 21 2023 to January 12 2024) 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 2023 RMB 237285850.82 of undue notes receivable (of which RMB
100000000.00 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
221222966.91.
(4) 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. 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 the Company had undue notes receivable of RMB 208754566.01 as of June 30 2023
(where RMB 200000000.00 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 226429679.81
(where RMB 50000000.00 was related party notes receivable that should be included in the scope of consolidation)
1982023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
the subsidiary Zhejiang Fengshi Technology Co. Ltd. had undue notes receivable of RMB 6422598.71 (where RMB
214528.20 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 8628663.12 the subsidiary
Zhejiang Huaxiao Technology Co. Ltd. had undue notes receivable of RMB 9279552.04 the subsidiary Zhejiang
Huajian Technology Co. Ltd. has undue notes receivable of RMB 1168000.00 and the subsidiary Zhejiang Dahua
Intelligent IoT Operation Service Co. Ltd. had undue notes receivable of RMB 2210000.00 pledged for issuing bank
acceptance bills. Under the pledge the Company issued the bank acceptance bills in the amount of RMB 336412.30
the subsidiary Zhejiang Fengshi Technology Co. Ltd. issued the bank acceptance bills in the amount of RMB
230488710.27 the subsidiary Zhejiang Huafei Intelligent Technology Co. Ltd. issued the bank acceptance bills in the
amount of RMB 552457.00 the subsidiary Zhejiang Huayixin Technology Co. Ltd. issued the bank acceptance bills in
the amount of RMB 98874.32 the subsidiary Zhejiang Huajian Technology Co. Ltd. issued the bank acceptance bills
in the amount of RMB 545972.10 the subsidiary Zhejiang Huaxiao Technology Co. Ltd. issued the bank acceptance
bills in the amount of RMB 36871.90 the subsidiary Zhejiang Zhilian Co. Ltd. issued the bank acceptance bills in the
amount of RMB 23149388.87 and the subsidiary Xi'an Dahua Zhilian Technology Co. Ltd. issued the bank
acceptance bills in the amount of RMB 1785114.60.
(5) On May 26 2021 the subsidiary Zhejiang Dahua Vision Technology Co. Ltd. and Bank of Hangzhou Co. Ltd.
entered into the "Pledge Contract for Maximum Amount of Individual Asset Management" (No.: 7514ATMG202100073
the contract term is from May 26 2021 to May 25 2024) to provide a guarantee for the "Asset Management Service
Agreement" signed by the subsidiary Zhejiang Dahua 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 2023 76144146.23 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.
(6) Under the Asset Pool Charge-off Agreement PPHJHYZCZ 20220801 No.001 made by and between the Company
and Ping An Bank Limited Hangzhou Branch on August 3 2022 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 2023 the Company had undue notes receivable of RMB
170980000.00 (where RMB 170000000.00 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
81770276.81 (where RMB 50000000.00 was related party notes receivable that should be included in the scope of
consolidation) the subsidiary Jiangsu Huaruipin Technology Co. Ltd. had undue notes receivable of RMB
2655606.00 and the subsidiary Zhejiang Pixfra Technology Co. Ltd. had undue notes receivable of RMB 868620.00
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 160779797.77 the subsidiary Jiangsu Huaruipin
Technology Co. Ltd. issued the bank acceptance bills in the amount of RMB 6681928.50 the subsidiary Zhejiang
1992023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Pixfra Technology Co. Ltd. issued the bank acceptance bills in the amount of RMB 1434684.27 and the subsidiary
Changsha Dahua Technology Co. Ltd. issued the bank acceptance bills in the amount of RMB 5698927.11.
(7) The subsidiary Zhejiang HuaRay Technology Co. Ltd. and Hangzhou Branch of China Merchants Bank Co. Ltd.
entered into the "Credit Agreement for Notes Pool Business" agreeing on a credit limit of RMB 0.2 billion for notes
pool business. Under the notes pool business as of June 30 2023 RMB 55109694.53 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
52707757.59.
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.XV. Events after the Balance Sheet Date
No events after the balance sheet date to be disclosed in this period.XVI. Other Significant Events
1. Subsection information
(1) Basis for determining the reporting subsection and the accounting policy
The Company determines the operation subsection based on internal organization structure management
requirements internal reporting system etc. The Company has only one operational subsection namely the R&D
production and sales of intelligent IoT products. The accounting policy of the reporting subsection is consistent with
that of the Company.
(2) Financial information of the reporting subsection
Regional subsection
Unit: RMB
Item Operating revenue Operating Cost
Domestic 7771201571.54 4750611105.50
Overseas 6862345709.10 3613376794.14
Total 14633547280.64 8363987899.64
Product subsection
2002023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Unit: RMB
Item Operating revenue Operating Cost
Smart IoT Products and
12161117387.946726306045.85
Solutions
Including: Software Business 757373050.95 241174322.48
Innovated Businesses 2258998031.19 1466634666.72
Others 213431861.51 171047187.07
Total 14633547280.64 8363987899.64
XVII. Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Categorical disclosure of accounts receivable
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrued Book Accrued Book Percent Percent
Amount Amount proporti value Amount Amount proporti value
age age
on on
Account
s
receiva
bles
with the
bad
3868838688100.003869338693100.00
debt 0.80% 0.78%
726.59726.59%240.50240.50%
provisio
n
accrued
based
on
single
item
Inclu
ding:
Account
s
receiva
ble with
insignifi
cant
single
3868838688100.003869338693100.00
amount 0.80% 0.78%
726.59726.59%240.50240.50%
but
accrued
for
separat
e
provisio
n of bad
debt
2012023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Account
s
receiva
bles
with the
bad 48142 47041 49334 48374
11016096000
debt 79100. 99.20% 2.29% 18990. 79139. 99.22% 1.95% 78515.
110.25623.96
provisio 52 27 61 65
n
accrued
based
on
combin
ations
Inclu
ding:
Portfoli
o 1:
37333373333990039900
Related
70117.76.93%70117.54640.80.25%54640.
Parties
83837272
Portfoli
o
Portfoli
o 2:
Aging 10809
11016097074894342496000847423
Analysi 08982. 22.27% 10.19% 18.97% 10.18%
110.25872.44498.89623.96874.93
s 69
Portfoli
o
48529470414972148374
100.00148848100.00134693
67827.18990.72380.78515.
Total % 836.84 % 864.46
11271165
Individual provision for bad debts: RMB 38688726.59
Unit: RMB
Closing balance
Name Reason for making
Book balance Bad debt provision Accrued proportion
bad debt provision
Expected to be
Customer 1 38688726.59 38688726.59 100.00%
unable to recover
Total 38688726.59 38688726.59
A combination of provision for bad debts: RMB 110160110.25
Unit: RMB
Closing balance
Name
Book balance Bad debt provision Accrued proportion
Within 1 Year 767881976.89 38394098.85 5.00%
1 to 2 years 188511025.21 18851102.52 10.00%
2 to 3 years 88816318.68 26644895.60 30.00%
3 to 4 years 15591097.85 7795548.93 50.00%
4 to 5 years 8170498.53 6536398.82 80.00%
5 years or above 11938065.53 11938065.53 100.00%
Total 1080908982.69 110160110.25
2022023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Please refer to the disclosing methods of other receivables for the information disclosure of bad debts provisions if the
bad debt provisions of accounts receivable are made according to the general model of expected credit losses:
□ Applicable □ Not applicable
Disclosure by age
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 4287453467.66
1 to 2 years 272716314.22
2 to 3 years 191132510.28
3 years or above 101665534.95
3 to 4 years 62503709.68
4 to 5 years 18349239.90
5 years or above 20812585.37
Total 4852967827.11
(2) Provision for bad debts accrued recovered or reversed in this period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
balance Accrued Written Off Others balance
Reversed
Bad debt 134693864.4 148848836.8
14157131.662159.28
provision 6 4
134693864.4148848836.8
Total 14157131.66 2159.28
64
(3) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Accounts receivable actually written off 2159.28
(4) Accounts receivable of the top five closing balances collected by debtors
The accounts receivable of the top five balances collected by the debtors at the end of the period was summed up to
RMB 3614431941.67 accounting for 74.48% of the total balance at the end of the period of accounts receivable.The balance at the end of the period for bad debt provision accrued was RMB 15635357.71 accordingly.
(5) Accounts receivable derecognized due to the transfer of financial assets
1) In accordance with the non-recourse accounts receivables purchase agreement signed between the Company and
Sinosure Commercial Factoring (Shenzhen) Co. Ltd. in this period the Company transferred the accounts receivables
of RMB 563882.00 to Sinosure Commercial Factoring (Shenzhen) Co. Ltd. The amount of accounts receivables was
derecognised after the transfer;
2032023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
2) In accordance with the non-recourse accounts receivables purchase agreement signed between the Company and
Shenzhen Qianhai'an Lutong Commercial Factoring Co. Ltd. in this period the Company transferred the accounts
receivables of RMB 456689.25 to Shenzhen Qianhai'an Lutong Commercial Factoring Co. Ltd. The amount of
accounts receivables was derecognised after the transfer.
(6) The amount of assets and liabilities generated due to transferred receivables that the
Company still keeps recourse or retains part of corresponding rights or interests
There are no assets or liabilities generated due to transferred receivables that the Company keeps recourse or retains
part of corresponding rights or interests.
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other Receivables 12942027391.89 13025162686.64
Total 12942027391.89 13025162686.64
(1) Other receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening balance
Deposits 44218286.45 42975357.36
Prepaid or advance expense 45941825.28 42425892.12
Equity Transfer Fund 5495352.34
Employee home loan 77910497.00 84743250.00
Incomings and outgoings 12795487732.65 12872094567.04
Others 2766684.67 14709388.90
Total 12971820378.39 13056948455.42
2) Provision for bad debts
Unit: RMB
Phase One Phase Two Phase Three
Expected credit Expected credit
Expected credit
Bad debt provision losses for the entire losses for the entire Total
losses in the next 12
extension (without extension (with credit
months
credit impairment) impairment)
Balance as of
25225412.466120196.70440159.6231785768.78
January 1 2023
Balance in the
current period as of
January 1 2023
--Transfer to phase
-648634.56648634.56
two
--Transfer to phase
-6640.006640.00
three
Provisions of this
1507616.4217470.001525086.42
period
Reversals in this 3450469.70 3450469.70
2042023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
period
Write off in this
43899.004500.0019000.0067399.00
period
Balance as of June
21075769.208271947.68445269.6229792986.50
302023
Book balance changes with significant changes in loss provision in the current period
□ Applicable □ Not applicable
Disclosure by age
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 11827523828.99
1 to 2 years 708388104.08
2 to 3 years 119391456.85
3 years or above 316516988.47
3 to 4 years 112309009.53
4 to 5 years 201319803.16
5 years or above 2888175.78
Total 12971820378.39
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
坏账准备31785768.781525086.423450469.7067399.0029792986.50
合计31785768.781525086.423450469.7067399.0029792986.50
4) Accounts receivable actually written off in this period
Unit: RMB
Item Write-off amount
Other accounts receivable actually written off 67399.00
5) Other receivables of the top five closing balances collected by debtors
Unit: RMB
As a percentage
of total other Bad debt
Nature of the
Name of Unit Closing balance Aging receivables at provision at the
funds
the end of the end of the period
period
RMB
8231632540.3
Incomings and 8232307498.5
Company 1 2 within 1 year 63.46%
outgoings 8
RMB 673777.87
for 1-2 years
2052023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
RMB 1180.39
for 3-4 years
Incomings and 2340800423.4
Company 2 Within 1 year 18.05%
outgoings 3
RMB
915609068.76
within 1 year
RMB
540820030.77
Incomings and 1496524099.5
Company 3 for 1-2 years 11.54%
outgoings 2
RMB
5901013.50 for
2-3 years RMB
34193986.49
for 3-4 years
RMB
149064317.88
Incomings and within 1 year
Company 4 234434115.91 1.81%
outgoings RMB
85369798.03
for 1-2 years
RMB
9080630.14
within 1 year
RMB
10006656.50
for 1-2 years
RMB
8757718.98 for
Incomings and
Company 5 200717516.83 2-3 years RMB 1.55%
outgoings
8918883.13 for
3-4 years RMB
11689423.04
for 4-5 years
RMB
152264205.04
for 5 years or
above
12504783654.Total 96.41%
27
6) Accounts receivable related to government subsidies
There are no accounts receivable related to government subsidies.
7) Other accounts receivable derecognised due to transfer of financial assets
There are no other accounts receivable derecognised due to transfer of financial assets.
2062023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
8) Assets and liabilities generated due to other transferred receivables that the Company keeps recourse or
retains part of corresponding rights or interests
There are no assets and liabilities generated due to other transferred receivables that the Company keeps recourse or
retains part of corresponding rights or interests.
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in 7353632259 7353632259 4651487417 4651487417
subsidiaries .60 .60 .05 .05
Investment in
672957566.6672234070.3831485368.0830761871.7
affiliates and 723496.39 723496.39
9090
joint ventures
8026589826802586632954829727855482249288
Total 723496.39 723496.39.29.90.14.75
(1) Investment in subsidiaries
Unit: RMB
Decrease/Increase in the current period Closing
Opening Closing
The balance of
balance Provision balance
invested
(book Investments Investment for
provision for
entity Others
(book
value) increased decreased impairment
decline in
value)
accrued value
Zhejiang
Dahua
535013135396915.554041004
System
0.4235.95
Engineering
Co. Ltd.Zhejiang
Dahua
Security
1021500710219796
Network 47888.58
7.265.84
Operation
Service Co.Ltd.Zhejiang
Dahua
5100000.05100000.0
Ju'an
00
Technology
Co. Ltd.Guangxi
6159547.76197737.9
Dahua 38190.24
37
Information
Technology
2072023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Co. Ltd.Dahua
Technology 66894111 66968734
746235.00
(HK) 2.00 7.00
Limited
Zhejiang
Dahua
129501633210460.812982267
Vision
12.10972.99
Technology
Co. Ltd.Guangxi
Dahua
Yunlian 20002580. 20002580.Information 76 76
Technology
Co. Ltd.Hangzhou
Xiaohua 5851433.4 3513024.4 9364457.9
Technology 7 3 0
CO. LTD.Zhejiang
Dahua 10016575 77648958 17781471
Zhilian Co. 17.59 4.51 02.10
Ltd.Zhejiang
Dahua
62175000.62175000.
Investment
0000
Manageme
nt Co. Ltd.Guangxi
Dahua 71262264. 71302414.
40150.02
Zhicheng 85 87
Co. Ltd.Hangzhou
Huacheng
30102814.1709443.431812257.
Network
35984
Technology
Co. Ltd.Zhejiang
HuaRay 33919748. 4652104.0 38571852.Technology 87 8 95
Co. Ltd.Hangzhou
Fuyang
5110520.65121041.2
Hua'ao 10520.64
37
Technology
Co. Ltd.
2082023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhejiang
Huafei
25619309.26158631.
Intelligent 539322.08
3442
Technology
CO. LTD.Guizhou
Huayi
1800000.01800000.0
Shixin
00
Technology
Co. Ltd.Zhejiang
Fengshi 9028975.3 9052588.5
23613.12
Technology 8 0
Co. Ltd.Dahua
8102000.08102000.0
Technology
00
Holdings
Limited
Zhejiang
Huaxiao 38317405. 38881457.
564052.16
Technology 37 53
Co. Ltd.Xi'an Dahua
Zhilian 10071879 89012723 99084603
Technology 8.71 5.01 3.72
Co. Ltd.Jiangsu
Huaruipin 17927211. 17996726.
69514.56
Technology 61 17
Co. Ltd.Beijing
Huayue
Shangchen
g 10675125. 10829736.
154611.04
Information 73 77
Technology
Service Co.Ltd.Zhejiang
Dahua
60000000.60000000.
Jinzhi
0000
Technology
Co. Ltd.Shanghai
Huashang
1931398.92349439.3
Chengyue 418040.42
35
Information
Technology
Service Co.
2092023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Ltd.Zhejiang
Zhoushan
Digital
17640000.17640000.
Developme
0000
nt
Operation
Co. Ltd.Guangxi
Dahua 30000000. 30000000.Technology 00 00
Co. Ltd.Yunnan
Zhili 4500000.0 4500000.0
Technology 0 0
Co. Ltd
Zhejiang
Huayixin 41380258. 41157376.-222881.43
Technology 10 67
Co. Ltd.Zhejiang
Huaruijie 52349278. 1200674.5 53549953.Technology 69 3 22
Co. Ltd.Chengdu
Dahua
Zhilian 50346032. 55031083 60065687
Information 57 9.30 1.87
Technology
Co. Ltd.Chengdu
Dahua
Zhian
100000004547000055470000
Information
0.000.000.00
Technology
Service Co.Ltd.Chengdu
Huishan
Smart 5800000.0 5800000.0
Network 0 0
Technology
Co. Ltd.Zhejiang
Huajian 23520802. 1077451.9 24598254.Technology 07 3 00
Co. Ltd.Xinjiang 2055.08 2055.08
Dahua
2102023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Zhixin
Information
Technology
Co. Ltd.Guangxi
Huacheng
123727.0328702.02152429.05
Technology
Co. Ltd.Hangzhou
Huacheng 1838147.1 1296442.1 3134589.3
Software 9 7 6
Co. Ltd.Dahua
72864.0072864.00
Technology
Canada Inc.Chengdu
Dahua
Zhishu
10000000.10000000.
Information
0000
Technology
Service Co.Ltd.Zhengzhou
Dahua
Zhian 30000000. 30000000.Information 00 00
Technology
Co. Ltd.Dahua
1000000.01000000.0
Technology
00
Internationa
l Pte. Ltd.Changsha
Dahua 10000985 10001971
9858.24
Technology 8.24 6.48
Co. Ltd.Zhejiang
Pixfra 50982181. 51103016.
120835.34
Technology 36 70
Co. Ltd.Zhejiang
Dahua
Intelligent
15285360.15568089.
IoT 282729.07
3239
Operation
Service Co.Ltd.
2112023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Henan
Dahua
Zhilian
54567.3054567.30109134.60
Information
Technology
Co. Ltd.Yibin
Huahui
Information 13092.42 13092.42
Technology
Co. Ltd.Luoyang
Dahua
Zhiyu 10000000. 10000000.Information 00 00
Technology
Co. Ltd.Xi'an IMOU
Zhilian
21625.8621625.86
Technology
Co. Ltd.
46514874270664484500000.073536322
Total 17.05 42.55 0 59.60
(2) Investment in affiliates and joint ventures
Unit: RMB
Decrease/Increase in the current period
Cash Closin
Investme divid g
Name Opening nt profit Adjustm ends Provis
balanc
Closing
Invest Invest and loss ent on or ion for e of of balance Other balance provisi
Investe (book ments ment recogniz other profit impair Othchanges (book on for
es value) increa decre ed under compreh decla ment ers in equity value)
sed ased the ensive red accru declin
equity income to ed e in
method distri value
bute
Ⅰ. Joint ventures
Ⅱ. Affiliates
Zhejia
ng
Leapm
-
otor 650470 26790 497993
179267
Techn 259.18 456.53 447.39
268.32
ology
Co.Ltd.Hangz
7234
hou
2122023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
Juhua 96.39
nyan
Inform
ation
Techn
ology
Co.Ltd.Ruicity
Digital
-
Techn 711757 629695
820620
ology 18.81 13.02
5.79
Co.Ltd.Ningbo
Huaya
n
Chuan
gxi
Ventur
e
Capital 630549 377882. 634328
Invest 68.03 39 50.42
ment
Partne
rship
(Limite
d
Partne
rship)
Dezho
u
Shuzhi
Inform
34075118720.2342623
ation
9.6389.91
Techn
ology
Co.Ltd.Sichua
n
Hengji
Anhua
Interne -
129185120362
t of 88230.3
1.541.21
Things 3
Techn
ology
Co.Ltd.-
Zhejia 413615 45735 432083
272669
ng 54.51 43.00 98.35
9.16
Huach
2132023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
uang
Vision
Techn
ology
Co.Ltd.-
830761313636722347234
Subtot 189891
871.70999.53070.3096.39
al 800.93
-
830761313636722347234
189891
Total 871.70 999.53 070.30 96.39
800.93
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 4154588989.34 698750728.04 3850652856.67 435118265.70
Other businesses 29728074.55 21033992.07 15400691.14 10228851.81
Total 4184317063.89 719784720.11 3866053547.81 445347117.51
5. Investment income
Unit: RMB
Amount Occurred in the Current Amount Occurred in the Previous
Item
Period Period
Long-term equity investment income
1149863.64
calculated by cost method
Long-term equity investment income
-189891800.93-216827314.09
measured by equity method
Investment income from disposal of
539223.39-4330000.00
long-term equity investment
Investment income on other non-
current financial assets during the 2372827.09 6666341.48
holding period
Investment income from national
569386.14515701.75
debt reverse repurchase
Profits from recognition termination of
-3617354.24-4150055.55
financial assets
Gain on debt restructuring -170120.71
Total -188877854.91 -218295447.12
XVIII. Supplementary Information
1. Breakdown of non-recurring gains and losses for this period
□ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Profits or losses from disposal of
non-current assets (including the 174686029.13
write-off for the accrued impairment
2142023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
of assets)
The government subsidies included
in the current profits and losses
(excluding the government subsidies
closely related to regular businesses 69161827.70
of the Company in line with national
policies and consecutively received
by a standard quota or quantity)
Gains or losses from investment or
asset management entrusted to 43299295.17
others
Profits and losses resulting from the
changes in fair value for holding
trading financial assets and trading
financial liabilities and investment
income from disposal of trading
financial assets trading financial 59884244.14
liabilities and financial assets
available for trading excluding the
effective hedging businesses related
to the regular business operation of
the Company
Reversal of the receivables
depreciation reserves for separate 4513.91
impairment test
Non-Operating Revenue and
3513400.79
expenses other than the above
Other gains and losses items that fit
the definition of non-recurring gains -55002533.78
and losses
Less: Impact of income tax 72883163.54
Impact of minority equity 1415070.35
Total 221248543.17 --
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
Weighted Average ROE Basic Earnings per Share Diluted Earnings per Share
period
(RMB/Share) (RMB/Share)
Net profit attributable to
common shareholders of 6.70% 0.63 0.63
the Company
Net profit attributable to
common shareholders of
the Company after 5.95% 0.56 0.56
deducting non-recurring
gains and losses
2152023 Semi-Annual Report of Zhejiang Dahua Technology Co. Ltd.
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
Zhejiang Dahua Technology Co. Ltd.Legal representative: Fu Liquan
August 26 2023
216