大华股份:2025 Semi-Annual Report

Zhejiang Dahua Technology Co., Ltd.
2025 Semi-Annual Report
August 16, 2025
This document is a translated version of the Chinese version 2025 Semi-Annual Report (“2025 年半年度报告
全文”), and the published annual report in the Chinese version shall prevail.
The complete published Chinese 2025 Semi-Annual Report may be obtained at http://www.cninfo.com.cn.

Section I Important Notes, Table of 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 AIoT industry is a prime example of a
technology-intensive sector, characterized by rapid advancements and upgrades.
If the Company is unable to keep up with development trends of industrial
technologies, to pay full attention to customers' diversified needs, and to devote
sufficient R&D investments, it may still face the risk of losing market
competitiveness due to discontinuous innovation. By increasing R & D investment,
the Company continues to strengthen research on such core technologies as
multi-dimensional perception, large model in AI, video cloud, big data, network
communication, network security, and machine vision, and reserves product,
technology, management and talent resources for a broader market in the future,
so as to achieve sustainable and steady business development.
(2) Risk of business model transformation: With the development of
technologies such as artificial intelligence, big data, cloud computing, network
communication, and IoT, as well as the upgrading of intelligent terminal
application methods, the business models in the era of artificial intelligence may
impact the development of traditional industries. If enterprises fail to timely grasp
the opportunities brought by the transformation of business models, they may
face the risk of their original market patterns being disrupted. The company
continuously monitors and studies significant changes in the global economy,
industry, and technology sectors, analyzes industry development logic, assesses
the evolution of the AIoT industry, the integration of video technology with digital
technologies including artificial intelligence, and the potential diversified needs of
customers. It consolidates its existing advantageous markets, actively explores
and pilots new businesses and new commercial models, and carries out business
and technology deployments.
(3) Risks of International Operations: The Company's products and solutions
cover more than 100 countries and regions overseas, and international business
operations face uncertainties and new challenges. On the one hand, the global
economic growth rate continues to slow down, geopolitical and political conflicts
in some regions have intensified, and some countries are facing risks such as
foreign exchange difficulties and exchange rate fluctuations, which pose certain
threats and risks to the continued expansion of business in the host countries. On
the other hand, increasingly complex compliance requirements in the international
business environment, intensified regional trade protectionism and controls, and
tariff policy volatility have heightened pressures on overseas market expansion.
Additionally, local manufacturing rules imposed by certain countries and regions
have escalated supply chain challenges, leading to continuously rising demands
for compliance capacity building and corresponding cost investments. To this end,
the Company actively prevents and responds to risks in international operations,
continuously improves the overall overseas compliance and risk control system,
enhances proactive risk anticipation and systematic response capabilities for
various risks, and continuously strengthens the Company's reserves and
development of local production and manufacturing capabilities. At the same time,
the company continuously strengthens its understanding of and adaptability to
the laws, regulations, and political and economic environments of the regions
involved in its business. It