大华股份:2024Semi-AnnualReport

Zhejiang Dahua Technology Co., Ltd.
2024 Semi-Annual Report
August 24,2024
This document is a translated version of the Chinese 2024 Semi-Annual Report (“2024 年半年度报告全文 ”),
and the published semi-annual report in the Chinese version shall prevail.
The complete published Chinese 2024 Semi-Annual Report may be obtained athttp://www.cninfo.com.cn.

SectionI ImportantNotes,ContentsandDefinitions
The Board of Directors, Board of Supervisors, Directors, Supervisors and Senior
Management hereby guarantee that the information presentedin this report are true, accurate,
and complete without any false records, misleading statements or material omissions, and they
will bear joint and severalliability 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 beentrying toidentify all kinds of risks and activelytake counter-
measures to avoid and reduce the risks.
(1) Risk of technology upgrading: The smart IoT industry is atypical technology-intensive
industry, featuring extremely fast upgrading. If the Company is unable to keep up with
development trends of industrial technologies, to pay full attention to customers' diversified
needs, and to devote sufficient R&D investments, it may still face the risk of losing market
competitiveness due to discontinuous innovation. By increasing R & D investment, the
Company continues to strengthen research on such core technologies as multi-dimensional
perception, large model inAI, video cloud, big data, network communication, network security,
and machine vision, and reserves product, technology, management and talent resources for a
broader market in the future, so as to achieve sustainable and steadybusiness development.
(2) Risk of business model change: With the development of Internet of Things, AI, big
data, cloud computing, network communications, among other technologies, as well as the
upgrades of intelligent terminal applications, the business model in the IoT era may have an
impact on the traditional industry development. If an enterprise fails to grasp opportunities
brought about by the business model transformation in a timely manner, it may face the risk
that the original market patternbecomes broken. The Company continues tofocus onand 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,extendthe collectionof capital, and delay
customers' payment. The Company continues to improve the internal control system and
optimize the project review methods, select local projects carefully and assess project risks
systematically with prudent assessment of the market logic and cash flow balance logic, and
reasonable control of risks. In addition, it formulates plans to deal with potential risks such as
cash flow shortage, project delay, and payment delay.
(4) Risk of international operations: The Company's products and solutions are available
in more than 100 countries and regions overseas.As such, its international business operations
may be exposed to risks of regional trade protection, political conflicts in local regions,
increasingly complex law compliance requirements and continuous global growth slowdown in
the countries and regions where it operates.The Company activelyguards against and responds
to risks of international operations by establishing an overseascompliance 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 differentiatedbusiness strategiesbased on "one country, one policy" in accordance
with the changes in politics and economy of different regions to reduce operational risks.
(5) Exchange rate risk: The Co