ZHEJIANG DAHUA TECHNOLOGY CO., LTD.Environmental, Social andGovernance Repo
2023
Contents
About This ReportStatement from the ChairmanIntroduction to Dahua
Feature: Technology for Social Good,Empowered by Digital Intelligence
Environment
Society
Appendix
Appendix 1: Key Performance IndicatorsAppendix 2: Awards and RecognitionsAppendix 3: UNGC Principles IndexAppendix 4: SDGs IndexAppendix 5: GRI Index
Corporate IntroductionDevelopment HistoryCorporate StrategyESG Honors
0103
Governance
Empowering Employees' DevelopmentCreating Customer ValueResponsible Supply ChainBuilding Industrial EcosystemInvesting in Public Welfare
Environmental ManagementGreen R&DGreen DevelopmentGreen Operation
ESG GovernanceCorporate GovernanceCompliance ManagementRisk ManagementBusiness EthicsCybersecurity and Privacy Protection
About This Report
Basis of PreparationTime ScopeData Source
Data DescriptionCon?rmation and Approval
This report describes the actual practice of Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as the Company or Dahua) in environment, society and governance (ESG) in 2023. It also details theCompany's e?orts at corporate governance, integrity management, the protection of shareholders' rights and interests, technological innovation, environmental protection, and public service activities, so as tostrengthen the communication and connection between interested parties and the Company.
This report is prepared in accordance with the Global ReportingInitiative's (GRI) GRI Standards 2021, and with reference to the
Shenzhen Stock Exchange Social Responsibility Instructions toListed Companies.It also responds to the issues of concern raised bycapital market ESG index rating agencies such as Morgan Stanley'sESG ratings (MSCI ESG ratings) .
This report covers the ESG work of Zhejiang Dahua Technology Co.,Ltd. and its major subsidiaries in the financial year from January1, 2023, to December 31, 2023 (the Reporting Period). Someinformation may trace back to previous years or extend to March2024.
This report can be downloaded from Juchao Information Network(www.cninfo.com.cn) and the website of Dahua (www.dahuatech. com).For more information beyond this report, refer to the Company's annualreport or visit the Company's website.
The Company's ?nancial statements of this year, the related documents,and the Company's statistics. Zhejiang Dahua Technology Co., Ltd.reserves the right to interpret this report.
This report, con?rmed by the Company's management, was approvedby the Board of Directors on April 15, 2024. The Board of Directors isresponsible for the authenticity, accuracy, and completeness of thecontent.
Statement from the Chairman
The year 2023 marked a period of both diligent e?orts and signi?cant accomplishments for Dahua. Despite facing various challenges suchas geopolitical con?icts and shifts in the industrial landscape, we remained steadfast in our commitment to excellence. We implementednumerous measures to propel the Company forward on the path of high-quality and sustainable development.Re?ecting on 2023, we enhanced the Dahua Think#2.0 strategy, transitioning from "intelligence" to "integrated intelligence." We continuedto prioritize the city-oriented strategy and enterprise-oriented strategy as the two key business strategies, with AIoT and IoT digitalintelligence platforms as the two key technical strategies. By fully leveraging the value of data elements centered around video, wefacilitated the establishment of e?cient urban governance systems and the transformation and upgrading of enterprise digital intelligence.Furthermore, we officially joined the United Nations Global Compact, thereby making substantial contributions to global sustainabledevelopment through tangible actions.We dive into various industries, harnessing technology to inspire positive actions. Guided by the principle of "harmonious coexistencebetween man and nature, man and society, and man and the city," we utilize digital intelligence to bolster the construction of ecologicalcivilization and facilitate efficient urban governance through innovative technologies. In our pursuit of high-quality development, weenhance people's well-being and collaborate with partners worldwide to create a bright future for global digitalization.We strengthen responsibility management, continuously enhancing corporate governance. We adhere to compliance operations anduphold business ethics. Through ongoing enhancements to our corporate governance and risk management systems, we enhance theCompany's competitiveness on the global stage. With ESG governance as our driving force, we advocate for the Company's sound, steady,and sustainable development.
We strive to achieve "dual carbon" goals, contributing to greener industries. We actively pursue a green development strategy,leveraging a robust environmental management system. We prioritize green research and development, green products, and greenoperations, thereby making signi?cant contributions to the advancement of green industries and the preservation of lush mountains andlucid waters.We ful?ll our social responsibilities, striving to improve the lives of more individuals. We respect and value each employee, o?eringthem a comprehensive support system to foster mutual growth. We dedicate ourselves to cultivating an ecosystem of "joint contribution,shared bene?ts, and coexistence," generating greater value for both customers and partners. Furthermore, we place equal emphasis oncorporate development and public welfare initiatives, mobilizing diverse resources to spread love and serve our society, spreading beautyand friendship to a broader audience.Looking back, our exploration and innovation have never ceased; in the coming year, new journeys and challenges lie ahead. We willpersist in our vision of becoming a world-leading provider of video-centric smart IoT solutions and services, endeavoring to establishourselves as the preferred brand for smart IoT. We will continue to ful?ll our great mission of "enabling a smarter society and better living,"steadfastly advancing towards a safer, low-carbon, more beautiful, and harmonious world.
Chairman and President
Fu Liquan
Introduction to Dahua
Corporate IntroductionZhejiang Dahua Technology Holdings Co., Ltd. is aworld-leading video-centric smart IoT solutions andservice provider. The Company has more than 23,000employees, over 50% of which are engaged in R&D.Its products are available in over 180 countries andregions worldwide. In 2023, we upgraded the DahuaThink#2.0 strategy, shifting from "intelligence" to"integrated intelligence." We maintained our focus onour two core business segments: City and Enterprise,while steadfastly reinforcing our technologicalstrategies, which encompass AIoT and IoT digitalintelligence platforms. By fully harnessing the value ofdata elements centered around video, we facilitated theestablishment of efficient urban governance systemsand spearheaded the digital-intelligent transformationof enterprises. With a keen understanding and strategicdeployment of AIoT, the Company continues to exploreemerging opportunities, expanding its portfolio ofinnovative businesses, including Imou, iRAYPLE, Pixfra,Hirige, Waythcan, Wisualarm, Operating Companies,Dahua Memory, and more.
23,000+employees
9,700+patents
overseas branches180+countries and regionscovered
200+domestic o?ces
NO.2*market share inthe world
2023
Dahua HQ
*Data source:
2023 Global Video Surveillance Market and Analysis released by Omdia, a market research organization
Development History
2001The Group was foundedand started to enterthe ?eld of videosurveillance.
2003The Company went global.2007
We launched theIntegrated IntelligentTra?c Machine, whichbecame a standard forelectronic police in China.
2010 ●We introducedCMOS technologyand launched high-de?nition and high-magni?cation chips. ●We established the ?rstpost-doctoral stationin China's securityindustry. ●Dahua SecurityNetwork OperationService Co., Ltd. wasfounded.
2014 ●We introduced IT UniversalCloud Technology.
●We established the ?rstoverseas branch.
2016
The Company's CMMIScerti?cation establishes itsposition as a global leaderin software developmentcapabilities.
2018 ●We launchedthe Dahua HoCNew Smart CityArchitecture. ●The Europeansupply center wentin operation.
2021We newly upgraded andlaunched the Dahuathink# strategy.
2022
Dahua's "Cloud Connectsof Everything, DigitalIntelligence for theFuture" Forum was held.
2019
We launched the AloT and SDTVstrategies.The Gaia Big Data Platform wasreleased.
2017Dahua Intelligence(IoT) Industrial Parkwent into operation.
2020 ●We launched a body temperaturemeasurement system with ultra-high precision thermal imagingtechnology within a week to helpwith pandemic prevention andmanagement. ●8 regional software developmentcenters were landed to enhancesoftware capability of sinkinginto lower tier markets.
2023We upgrade the Dahua Think#2.0 Strategy.Dahua Galaxy was released.We launched new corporatemission.
Going forwardWe will continue toserve as a video-centricAIoT solution andservice provider.We will facilitatee?cient urbangovernance anddigital intelligenceupgrading, and upholdthe corporate missionof "Enabling a SmarterSociety and BetterLiving."
2012We launched self-developed HDCVItechnology, which was adopted byHDcctv Alliance and became the ?rstinternational standard in domesticsecurity industry.2013We introduced "softwareplatform hardware" technology,making large-scale deploymentand maintenance extremelysimple.
2008On May 20, theCompany was listedon the ShenzhenStock Exchange.2002We invented 8-channelaudio and videosynchronous embeddedDVR, becoming the ?rstbrand of embeddedDVR.
2023
Corporate Strategy
2.0 strategyThe new upgrade of
IntelligenceIntegrated Intelligence
MultimodalintegrationIndustrial large
models
Image and data
integrationIntegratedconnection
……
InnovationBusinesses
Machine Visionand RobotsSmart LivingAutomotiveelectronicsSmart Security
CheckSmart FireProtectionSmart StorageThermal Imaging
……
Full Ecosystem
ServiceEcosystemBusinessEcosystemSoftwareEcosystemAlgorithmEcosystemHardwareEcosystem……
City 2.0Enterprise 2.0
IoT Digital Intelligence Platform 2.0AloT 2.0
City
Enterprise
AloT 2.0
2.0
2.0
2.0
Improving urbanmanagement
Efficient urbanmanagementEnsuring orderly
operations
Ensuring self-harmoniousurban operations
Enhancing publicsecurity
Upgrading thesecurity systemEcologicalenvironmentmonitoring
Ecological coordinatedgovernance
Digital Intelligence Platform 2.0
2.0
Full Sensing
| Full Sensing | Full Intelligence | Full Connection | Full Computing |
Integrated SensingFull-domain
Intelligence
Integratedconnection
Whole-network
Computing
Activating the value of data elements centered around video
Turning data into resourcesTurning date into assets
AIoT 2.0Building stronger AIoT capabilitiesthrough large-scale models
Vision asthe core
Multimodalintegration
Industrial largemodels
Integrated connection capabilityfor intelligent intent
Turning data into products
Optimizing thesecurity system
Building a comprehensive
security systemImprovingproductivity
Forging digital-intelligentproductivityAssisting in businessmanagement
Enhancing decision-makingcapability in businessmanagement
Industry-network
integration
Data-networkintegration
Network-network
integration
2023
ESG Honors
Honors and certi?cations
The 13th Public WelfareFestival 2023 Annual ESGPioneer Enterprise Award
Joining the UnitedNations Global Compact
Sedex Business EthicsCerti?cation
Ecovadis Silver
2023Zhejiang Dahua Technology Co., Ltd.?Environmental, Social and Governance Report
Technology for Social Good,Empowered by Digital Intelligence
Dahua ?rmly believes that innovation is the primary catalyst for development. Guided by the vision of "technology for social good," weconsistently drive e?cient urban governance and the digital-intelligent transformation of enterprise, from conceptualization to research anddevelopment, and from technology to practical application. We collaborate with customers and partners to embark on a new era of digitaldevelopment, fostering a smarter society and enhancing the quality of life for all.
Closely related to human well-being, the ecosystem serves as the bedrock of our existence and progress, o?ering a crucial resource base for the sustainable advancement of human society. To establish an intelligent and comprehensivebiodiversity monitoring network, the Company has devised a sophisticated monitoring program with extensive coverage. This program facilitates precise observation and assessment of wildlife and plant behaviors, ecological changes, and therami?cations of human activities. Through the fusion of science and technology, our aim is to cultivate a harmonious and visually captivating habitat for all living beings.
In 2021, the Company joined the Hainan Gibbon Preservation Program. Throughthe integration of technology, it has played a significant role in enhancingconservation efforts, offering a more intelligent and convenient approach togibbon monitoring.We feed high-sensitivity motion algorithms into the smart camera. Leveragingthe Genius Open Platform, we continuously re?ne these algorithms by trainingthem to recognize and capture images of swiftly moving gibbons based ontheir fur colors and behavioral patterns. This process enables us to accuratelyidentify and gather data on gibbon population size, age distribution, sex ratio,developmental trends, and the dynamic changes in their habitats.According to the latest data released by the National Forestry and GrasslandAdministration, the number of Hainan gibbons has increased from 7-9 to37 across 5 populations over the past 40 years, demonstrating significantprogress in conservation e?orts. Dahua continues to explore digital ecologicalconservation models and has protected over 50 endangered species includingHainan gibbons, Yunnan golden monkeys, Oriental white storks, Tibetanantelopes, and Yangtze finless porpoises, contributing to the protection ofbiodiversity.
According to the2020 Detection Report of the Main Indicators of Forest Resources in Yunnan Province, the forest area in Dali, YunnanProvince, has reached 1.855 million hectares, ranking among the top in the country. It plays an important role in absorbing carbon dioxide,conserving water sources, and sheltering wildlife and plants.The Company assists the forestry and grassland departments in Dali in building a video monitoring system for forest ?re, enabling real-timemonitoring of forest ?res 24/7, high-precision and multi-dimensional positioning of ?re situations, e?cient assessment and handling ofdisasters, and full coverage of network transmission in forest areas. Since December 2022, when Dali entered a new round of ?re preventionperiod, the system has detected over 500 cases of illegal ?eld ?re use and 7 forest ?re incidents. By controlling forest ?res at the source, wee?ectively safeguard ecological security.
Protecting Hainan gibbons and creating anenabling environment for endangered species
Protecting the forests in Dali and building a solid defense againstforest ?res
Feature
Protecting Ecological Civilization
2023Zhejiang Dahua Technology Co., Ltd.?Environmental, Social and Governance Report
As the economy and society progress, there is a growing demand for smarter, more e?cient, and convenient living environments. Leveraging our technological advantages, Dahua has contributed to variousscenarios such as urban governance, tra?c management, and community operations. We consistently enhance e?cient urban governance and upgrade safety systems, thereby aiding in the enhancement ofpublic services and improving people's quality of life.
In Lin'an District, Hangzhou City, Dahua has created a citizen service system for thegovernment service center. Through functions such as convenient queuing, remoteprocessing, document sharing, and intelligent guidance, 80% of relevant matters inthe district can be handled "at the doorstep." We enable residents to handle a?airs"at most one time," greatly improving e?ciency.Currently, the system has covered 19 service centers in Lin'an District, providing over
1.15 million times of services, and the average processing time has been reduced by
79.1%. Dahua helps strengthen the deep integration of online and o?ine services at
the Lin'an District government service center, bridging the "last mile" of governmentservices, making them more convenient and of higher quality.
Dahua fully leverages its technological advantages to integrate holographic perception, graph and data computing,simulation deduction, intelligent decision-making, and precise service across the entire business chain. It delivers self-dependent tra?c governance and intelligent services, contributing to self-harmonious urban operations.
Assisting in Urban Governance
Building smart transportation to deliver safer travel
Fluorescent Camera
This technology enables high-de?nition and true-color imaging in dark conditions,breaking the industry's record of image quality in weak-light environment andsolving the problem of excessively bright ?ll lights on the road.
Digital Twin TechnologyWe integrate digital twin technology into traffic safety management, create aholographic intersection to deliver three-dimensional road management, andhelping transform tra?c governance into a more re?ned process.
Vehicle-Road Coordinated Roadside System
Based on precise real-time perception, this system can quickly transmit andprocess tra?c information, predict and warn of tra?c safety risks, and enhancetra?c safety and e?ciency.
Helping upgrade the Lin'an District government service centersystem and bridging the "last mile" of government services
Located in the province of Córdoba, Argentina, Jesús María is a vibrant and bustlingcity. During the Reporting Period, Dahua helped the city create a "safe corridor"intelligent monitoring system, which signi?cantly improved local tra?c congestionthrough AI cameras and advanced control centers. In addition, the "safe corridor"can provide support to public departments such as ?re and ambulance services incase of emergencies, ensuring that alarms receive efficient and timely responsesand providing safety guarantees for the lives and travels of urban residents.
Constructing a "safe corridor" to ensure the safety andwell-being of urban residents
Dahua empowers industries through technology, utilizing smart IoT technology and our products to assist various sectors in establishing comprehensive safety systems, enhancing decision-making capabilities, and fostering digital-intelligentproductivity. This ongoing support facilitates the digitalization and transformation of industries.
Over the past 30 years, Dahua has prioritized safety and efficiency,continuously partnering with the coal industry for mutual growth andsupport. Dahua has worked with regulatory bodies and coal miningenterprises to build a management mode featuring co-governance anddigital intelligence, harness innovative technologies to drive industrydevelopment, and collaborate with customers to bring safer coal mining.In addressing the potential risks and hazards in mining, we utilize videoAI intelligence to ensure the safety of underground miners and vehicles,effectively enhancing the safety level of the mining area. In drillingoperation scenarios, we employ AI-powered drilling and business platformsto manage the entire process of detecting water and gases, achievinga new model of joint inspection between surface and undergroundoperations. For the core process of coal transportation in the main coal?ow transportation system, we provide e?ective data support for intelligentspeed control and start-stop of coal mine belts through AI visualizationmanagement, ensuring the safety of equipment and personnel.Dahua has been using advanced technology to contribute to theconstruction of smart and digital-intelligent mines. The Company hasassisted over 1,000 coal mining enterprises nationwide in upgradingto digital intelligence, benefiting millions of miners, and continuouslysupporting the coal industry in safe and e?cient operations.
The power industry is a pillar industry in China. Dahua utilizes digital-intelligent technology to assist the power industry in achieving intelligent perception,integrated connectivity, and decision support throughout the processes of "generation, transmission, transformation, distribution, and utilization" inproduction and businesses, providing a new direction for intelligent management in the power industry.In terms of new energy generation, we integrate technology with the inspection model of photovoltaic power stations to create the "thousand-mile eyes," asystem for monitoring ?re incidents in photovoltaic power stations. This allows inspection personnel to monitor small incidents around the power stationwithout having to travel through mountainous and ?elds. For transmission lines, we utilize technologies such as low-power supply, wireless transmission, andAI recognition to provide intelligent visual control capabilities, thereby facilitating the safe and stable operation of transmission lines. In substations, we havedeveloped specialized equipment, software, and AI algorithms for remote inspection, enhancing the quality and e?ciency of substation inspections.
Dahua continues to apply advanced technologies such as arti?cial intelligence, the Internet of Things, and big data to power generation, safeguarding safetyand e?ciency in the power industry and serving the construction of new power systems.
Working together with the coal industry tobring safer coal mining
Using digital-intelligent technology to serve the construction of newpower systems
Empowering Industrial Development
The Company has assisted over
1,000coal mining enterprises nationwide in upgrading todigital intelligence
Promoting Social Welfare
Dahua actively ful?lls its corporate social responsibility, embodying the role of technology companies in promoting human well-being and nurturing a better quality of life. We prioritize vulnerable groups and address social livelihood issues byleveraging technological innovation to develop a range of products and solutions. Through our contributions, we aim to foster the construction of a harmonious society that guarantees access to elderly care, childcare, social assistance, andmedical services for all.
The Company, in collaboration with the Hangzhou Disabled Persons' Federation, has launched several public welfare projects aimedat assisting the disabled, such as the ''100 Free Lock Replacement Program'' and the ''Disabled Persons' Home Security EnhancementProgram.'' Leveraging our technological and operational advantages, we provide a range of services for people with disabilities, includingthe installation of smart door locks and remote unlocking via mobile apps. Through technology, we bring greater convenience to disabledindividuals and help them enjoy a better life.Dahua remains committed to supporting the construction of smart hospitals. Recognizingthe intricate environment, extensive equipment, and multiple hazard sources withinhospitals, we have signi?cantly upgraded our Safe Hospital Solution. This solution, basedon digital twin technology and multi-system data integration, enables visualized, intelligent,and re?ned management of hospital security, o?ering robust technological support for thesafety of patients and medical sta?.
Dahua has always been at the forefront of creating the intelligent interactive learning environment. Through the development of smart toolslike DeepHub intelligent interactive whiteboards, we actively participate in the construction of digital education, utilizing technology to createa better future.During the Reporting Period, Dahua donated DeepHub equipment to charitable educational institutions and special education centers inSpain, Malaysia, and other places. By empowering teaching with intelligent products, we aim to improve the level of education and provide abetter learning experience for disadvantaged student groups in these areas, promoting access to quality education for more students.
At the same time, Dahua fully utilizes new methods and technologies of digital intelligenceto assist hospitals in enhancing the quality of medical services and improving the patientexperience. In outpatient clinics and wards, we have introduced smart triage and smartward solutions, facilitating efficient transmission and exchange of information amongmedical staff, patients, and ward administrators. This initiative further enhances theoptimization of diagnosis and treatment services, improves nursing e?ciency, and providesdigital empowerment for the high-quality development of hospitals.
Smart technology for the disabled, enabling them to enjoya better lifeSmart hospitals empower the high-quality developmentof the medical system with digital intelligence
Smart whiteboards facilitate the digital transformation inthe education sector
2023
GovernanceZhejiang Dahua Technology Co., Ltd.Environmental, Social and Governance Repo
Governance
ESG Architecture 14Corporate Governance 19Compliance Management 20Risk Management 22Business Ethics 24Cybersecurity and Privacy Protection 26
As a global leader in video-centric smart IoT solutions andservices, Dahua is dedicated to the mission of "Enablinga Smarter Society and Better Living," while fostering agreen, environmentally friendly, and secure world driven byintelligence. We aim to establish an open, integrated, andcollaborative ecosystem to deliver enhanced value to ourcustomers and drive social sustainability.
ESG Governance
ESG Architecture
Dahua adheres to the principle of open and transparent information disclosure, establishing and improving the corporate ESG governance framework. Currently, we have built a clear and comprehensive ESGgovernance structure, and have developed ESG objectives and strategies tailored to the Company's operational realities. With this guidance, we scienti?cally implement ESG-related initiatives to ensure theire?ective implementation.
ESG Architecture
Oversees all ESG matters, and makes decisions on corporate ESG strategic planning, risk
management, policy formulation, etc.●Be responsible for clarifying the strategies and goals of the Company'senvironmental, social and governance development, and continuing to promotegreen and low-carbon development●Reviews the Company's ESG report and other ESG-related disclosures●Be responsible for coordinating the implementation of all ESG-
related tasks and facilitating the implementation of key projects. Beresponsible for organizing the preparation of ESG reports based oninternational standards and the industry's best practices
●Be responsible for the implementation of ESG-related work inthis module
Board ofDirectorsEnvironmental, Socialand GovernanceManagement Committee
Executive Working Group of
the Environmental, Socialand Governance Management
Committee
Functional Departments
Dahua has established a comprehensive ESG governanceframework. The Board of Directors, as the highest decision-making body, is responsible for the overall management anddecision-making of ESG-related issues. The Environmental,Social, and Governance (ESG) Management Committeeis responsible for formulating ESG strategies, de?ningobjectives, and facilitating information disclosure.The Executive Working Group of the Environmental,Social and Governance Management Committeeoversees and manages the Company's ESGexecution and prepares ESG reports. Relevantfunctional departments are responsiblefor the specific implementation of ESG-related issues within the Company.They collaborate closely withmanagement to fulfill ESG-related tasks and effectively
drive the implementation andenhancement of specific ESGinitiatives.
Stakeholder EngagementDahua actively communicates with shareholders, investors, customers, employees, partners, government departments and regulatory agencies, and communities on material issues of shared interest. The Boardof Directors reviews and identi?es material issues, and incorporates key disclosures and responses in this report to better address the needs of all stakeholders.
StakeholderMain ConcernsCommunication MechanismsCorporate Response
Shareholder/Investor
●Transparent and compliantinformation disclosure
●Continuous improvement ofcorporate governance standards
●
Risk and hazard management
●Business integrity and honesty
●Shareholders' meeting, information disclosure, theCompany's website●Irm.cninfo.com.cn, investor hotlines, investormeetings, ?eld research, strategy meetings, investorpresentations, etc.●Questionnaires, o?cial accounts for investor relations
●Timely, accurate and truthful disclosure of business information●Improve the governance structure, and regulate the operation of the generalmeeting of shareholders, the board of directors, the board of supervisors regularly●
Continuously Improve Risk Governance Framework and Enhance RiskManagement Capability
Customer
●
Product safety and servicequality●Customer health and safety
●Cyber security and userprivacy protection
●Customer satisfaction●
Climate change response andenergy management
●400 customer service hotlines●Customer satisfaction survey●Customer meeting●Customer evaluation, research and cooperationprojects●Questionnaires
●
Insist on customer-centric, quality-backed craftsman spirit that meets customerdemands
●Establish a strict product safety control mechanism, and implement strict productsafety standards
●Take network security and user privacy protection as important components ofcorporate governance
●
Enhance daily communication with customers, establish additional complaintchannels, and ensure smooth feedback of opinions●Strive to reduce the carbon emissions in operations and increase the use ofrenewable energy
Employee
●Remuneration and welfare●Career development●Humanistic care●Health and safety at work
●Employee representative meeting●Employee survey●Manager feedback●Dahua Sta? electronic magazine●Hotline and e-mail for receiving complaints,suggestions, reports and grievance
●Provide competitive remuneration and bene?ts●Establish a sound training system and path for career development●
Safeguard employee rights, and enhance employee bene?ts●Conduct occupational health and safety education and training
StakeholderMain ConcernsCommunication MechanismsCorporate Response
Partner
●
Supplier Management●Integrity Management●Training and Empowerment●
Win-Win Cooperation●
Sustainable Development
●
Field Investigation●Supplier Conference●Supplier Training●Channel conference●Cloud-ecommerce platform●Questionnaires
●Conduct supplier training and coaching and carry out supplier developmentprogram●Adhere to ethical and compliant procurement, and strength anti-corruptione?orts●Adhere to the sinking strategy, continuously empower partners, achieve mutualcontribution, shared bene?ts and win-win cooperation
Governmentsand Regulators
●
Compliance with Law
●Employment Creation●Environmental Protection●Tax Payment According to Law
●
Policy Consultation●Governmental Meetings●Compliance management●
Information declaration●
Government training and conferences
●Adhere to laws, regulations, and business ethics●Tax compliance●Work safety●Actively promote local employment and procurement, provide job opportunities,and stimulate the local economy●Reduce carbon emissions in operations and increase the use of renewable energy
Community
●Public Welfare●Communication withCommunities●Environmental Protection
●
Community Activities●
Interviews and investigations
●Allocate time and funds for community development●Actively engage in philanthropic projects●Implement waste sorting in industrial parks●Rectify and control wastewater discharge
Material IssuesDahua has incorporated the analysis and identi?cation of material issues into the Company's ESG assessment process, which has beensystematically conducted since 2022. This approach ensures that the assessment results accurately re?ect the signi?cance of stakeholders'concerns regarding each ESG issue. Subsequently, the Board of Directors reviews and ?nalizes the material issues.
Review
Review the material issues of theprevious yearConduct internal and externalcomprehensive benchmarking analysisCompare with the Company's strategy
AnalyzeConduct substantive issue analysisbased on stakeholders' feedback andrank issues by degree of importance
Identi?cationDetermine the scope of stakeholders andconduct investigationBenchmark and identify topics of interestto regulatory agencies and ESG ratingindicators
DeliberationBased on expert opinions, the Companydeliberates and identi?es substantiveissues. Disclose more details of veryimportant issues
Of moderate importance
Of moderate importance
Of high importance
Of low importance
Materiality Matrix
Public Welfare Waste and Hazardous
Substance ManagementCommunityParticipation
Resource utilizationCompliance
OperationsIPR ProtectionCorporate
Governance
Supply ChainManagement
Employee Bene?ts and
Development
R&D and Innovation
Biodiversity
Clean Technologyand Applications
Industrial Cooperation
and Development
Anti-corruption and Anti-commercial BriberyCreatingEconomic Value
Occupational Health andSafety Management
ManufacturingDigitalization
Energy Management Climate Change and Green
House Gas Emissions
Chemicals ManagementRespect for Human Rights
and Labor Practices
Customer Serviceand Satisfaction
Data Security and
Privacy Protection
Product Liability
Environmental Social Governance
Importance to the sustainable development of Dahua
Importance to stakeholders
High
Social
Respect for Human Rights and Labor PracticesEmployee Bene?ts a nd DevelopmentOccupational Health and Safety ManagementSupply Chain ManagementIPR ProtectionR&D and InnovationCustomer Service and SatisfactionIndustrial Cooperation and DevelopmentProduct LiabilityData Security and Privacy ProtectionManufacturing DigitalizationPublic WelfareCommunity Participation
Governance
Compliance OperationsCorporate GovernanceCreating Economic ValueAnti-corruption and Anti-commercial Bribery
List of issues
Environmental
Waste and Hazardous Substance ManagementResource utilizationClean Technology and ApplicationsEnergy ManagementBiodiversityClimate Change and Green House Gas EmissionsChemicals Management
Meddie
Corporate Governance
The Company strictly adheres to the requirements of relevantlaws, regulations, rules, and normative documents such as theCompany Law of the People's Republic of China,Securities Lawof the People's Republic of China, and theCode of CorporateGovernance for Listed Companies. It has established the legalperson governance structure based on "three meetings and themanagement"
, that is, the general meeting of shareholders, theBoard of Directors, the Board of Supervisors, and the management.Under the Board of Directors, there are four specialized committees:
the Strategic Committee, the Audit Committee, the NominationCommittee, and the Remuneration and Appraisal Committee. Eachcommittee has its own rights and responsibilities and operates incoordination with each other.
Dahua actively fosters a diverse Board of Directors to navigate the intricate and ever-evolving market landscape. We adhere strictly to theprinciple of appointing individuals based solely on merit, considering a range of factors including gender, age, and expertise when selectingdirector candidates. Additionally, we conduct thorough assessments of candidates' industry experience, professional background, andother pertinent quali?cations. As of the end of the Reporting Period, Dahua's Board of Directors comprised 9 members, including 6 non-independent directors, 3 independent directors, and 1 female director.
"Three meetings and the management": "three meetings" refer to the general meeting of shareholders, including the shareholders' meeting, the Board of Directors, and the Board of Supervisors. The Board of Directors has four specializedcommittees: the Strategic Committee, the Audit Committee, the Nomination Committee, and the Remuneration and Appraisal Committee; "the management" refers to the management of Dahua Technology.
Director TypeNameGender
ExpertiseIndustrialExperience
RiskManagement
FinancialManagementNon-independent director -ChairmanFu LiquanMaleNon-independent director -Vice ChairmanWu JunMale
Non-independent directorChen AilingFemaleNon-independent directorZhao YuningMaleNon-independent directorYuan LihuaMaleNon-independent directorZhang XiaomingMale
Independent directorCao YanlongMaleIndependent directorLiu HanlinMaleIndependent directorZhang YuliMale
Board ofDirectors
Board ofSupervisors
The general meeting ofshareholders
StrategicCommittee
AuditCommitteeNominationCommitteeRemunerationand Appraisal
CommitteeManagement
Compliance Management Department
Overseas Supervision andCompliance O?ce
Compliance ManagementAs a responsible global commercial entity, Dahua consistently prioritizescompliance in all its operations. Through strict adherence to local lawsand regulations in the regions where we operate, we have established acomprehensive internal compliance management system and efficientoperational mechanisms. This enables us to accurately identify andproactively mitigate compliance risks on a global scale, ensuring theCompany's long-term and stable development.Dahua's Ethics Compliance and Compliance Management Committee isresponsible for making signi?cant decisions regarding ethical complianceand compliance management. The Compliance Management Office,a subordinate entity of the committee, is tasked with formulating theCompany's compliance policies and regulations, establishing annualcompliance goals and plans in alignment with the committee's directives,and overseeing the actual implementation of the Company's compliancepolicies and requirements. The Compliance Management O?ce consists ofthe Compliance Management Department and the Overseas Supervisionand Compliance O?ce, which are respectively responsible for the speci?cimplementation of internal compliance work and overseas supervision andcompliance situations.In addition, the Company has established the Special Compliance andCompliance Management Group, the Business Compliance and ComplianceManagement Group, and Overseas Supervision and Compliance Risk ControlGroups. We ensure the implementation of compliance requirements acrossall compliance modules, business segments, and aspects of overseascompliance management.
Ethics Compliance and Compliance
Management CommitteeCompliance Management O?ce
Special Compliance andCompliance Management Group
Business Compliance andCompliance.Management Group
Overseas Supervision andCompliance Risk Control Groups-
Science andTechnology Ethics
· Dahua adheres to the concept of using technology for good, strengthens governance of science and technology ethics, and improves the system of technology ethics. Werigorously comply with relevant laws and regulations on science and technology ethics and e?ectively prevent and control risks related to technology ethics.· The Company emphasizes compliance with science and technology ethics in areas such as technology research and application, innovative technology implementation,and product and solution development, ensuring both high-quality development and high-level safety in technological innovation.
TradeCompliance
· Dahua strictly complies with relevant laws and regulations on import and export in operating areas. It has formulated policies and systems such as theDahuaExport Control Compliance Manualand theExport Control Compliance Statement. Additionally, Dahua has established comprehensive internal managementprocesses to track local laws and regulations in a timely manner, clarify and manage controlled product attributes and sales processes, and identify and assessrisks in purchasing controlled products and cooperative development projects.· Dahua attaches great importance to cybersecurity and data security and continuously monitors the dynamics of relevant laws and regulations. Westrictly adhere to relevant laws and regulations in operating locations such as theCyber Security Law of the People's Republic of China, the EUGeneralData Protection Regulation, the CaliforniaConsumer Privacy Actin the United States, and thePersonal Data Protection Bill in India.
· The Company integrates the varying requirements for data and privacy protection in each operating location and formulates internal policies and
systems such as thePersonal Data and Privacy Protection Speci?cation. Privacy protection concepts are integrated into product design and the wholeprocess of product use.Cybersecurityand DataProtection
· Dahua upholds the tenet of "Clean Dahua, Righteous Success" and has established the Integrity Construction Committee. It has also formulateda series of integrity management systems, including theDahua Business Ethics and Anti-Corruption Policy, to guide the Company's efforts inbusiness ethics, and compliance with laws and regulations.· The Company continues to conduct integrity internal audits and integrity training, promptly identifying and correcting potential business ethicsand compliance risks, creating a corporate atmosphere of integrity and righteousness.
High-RiskEmployee
Behavior· Dahua's financial and tax department establishes a standardized global financial and tax compliance system for the Company's business operations worldwide andcomprehensively manages ?nancial and tax risks. In response to the complexity and speci?city of compliance in various countries and regions, the Company has established
a special ?nancial and tax compliance team to gradually improve the global ?nancial and tax compliance system.· The Company continues to optimize related processes, including the construction of ?nancial and tax information systems, improvement of electronic document managementsystems, establishment of standardized templates for tax calculation, and revision of operational manuals for daily ?nancial and tax work.Financial and Tax
Compliance
Within the compliance framework, Dahua conducts thorough risk identification and management for key projects and business operations. The Company's focal compliance projects encompass scienceand technology ethics, trade compliance, cybersecurity and data protection, high-risk employee conduct, and ?nancial and tax compliance. Key business domains encompass domestic marketing, overseasmarketing, research and development, supply chain management, delivery and services, and procurement management.
Risk ManagementBased on the COSO-ERM framework and BCM business continuity management systems, the Company has continuously improved its "1-3-6" risk management system framework. This approach ischaracterized as "risk-oriented and system-based, with process as a connector, control as a facilitator, and IT as an enabler." Through a robust risk management structure, comprehensive risk identi?cation,precise risk assessment, timely risk response, objective risk monitoring, and a well-established reporting mechanism, we systematically bolster the e?ectiveness of the three lines of defense against risks,thereby ensuring the achievement of our strategic objectives.
The internal audit line is the third line of defense in risk management, responsiblefor overseeing the Company's management and evaluating the e?ectiveness of risksolutions and measures at Dahua headquarters.The internal control line is the second line of defense in risk management,responsible for organizing and coordinating the risk management work of allbusiness units. It ensures the implementation and execution of the Company's riskmanagement and continuously monitors related work.The business line is the first line of defense in risk management, integrating riskmanagement tools and internal control procedures into its daily work to e?ectivelymanage various risks faced in the Company's operations and management.CompanyStrategy
RiskIdenti?cationReportingMechanism
RiskMonitoring
RiskAssessment
Foundationbuilding
RiskResponse
The ?rst line of defenseThe second line of defenseThe third line of defense
Meanwhile, the Company has formulated a series of internal systems tailored to address material risks, continuously optimizing process management to bolster the Company's risk management capabilitiesthrough comprehensive systems and standardized procedures. Dahua also places signi?cant emphasis on fostering risk awareness. We routinely conduct risk management training and disseminate informationacross all departments, aiming to cultivate a risk-aware culture and empower every employee to identify and mitigate risks e?ectively.
Risk management processesRisk management measures
Foundation Building
Dahua has established risk control committees such as the Strategic Decision Committee, Audit Committee, Ethics Compliance Management Organization, Information SecurityCommittee, Work Safety Committee, and Compliance Committee.Establish the Three Lines of Defense model (business departments, internal control departments, internal audit departments) and construct a risk-oriented internal controlframework.The Company's main business functional departments and subsidiaries have appointed department-level internal control liaisons.Risk Identi?cation
The Company has identi?ed and reviewed the risks at the level of the Group, branches and subsidiaries through interviews, special internal audit reports, and has built andcontinuously enriched the risk databases of various business sectors and departments.
Risk Assessment
Based on the risk database, by introducing various sources of risk information such as regulatory tips, industry risks, research, audit ?ndings, manager feedback, the Companyevaluates the risk level of the possibility of risk events, the degree of impact caused and the vulnerability of response measures, and then makes an overall evaluation incombination with the major risk categories to achieve comprehensive risk analysis and evaluation.
Risk Response
The Company determines the risk response strategies based on the risk evaluation results, including risk reporting, risk taking, risk avoidance, risk mitigation and risk transfer,which include:
Risk response compliance: Consolidate the support of internal control management according to the internal control requirements of regulatory authorities at all levels;Scenario-based risk response: Conduct in-depth evaluation on the process and internal control in ESG-related high-risk internal control fields, and adopt different risk
management modes for di?erent business scenarios;
Hierarchical risk response: Promote the organization of high-risk issues in various ?elds of ESG, gradually establish a hierarchical authorization mechanism, and clarify theauthorization contents at all levels;Risk response specialization: Establish special internal control projects at the company level and the department level for high-risk businesses to closely and effectivelyintegrate internal control with business processes to avoid or reduce risks.Risk Monitoring
A risk monitoring mechanism is established to routinely monitor and check the response to risks and ensure that the outcomes of risk response are guaranteed both in thedesign of response plans and in their implementation.Reporting Mechanism
Establish a risk reporting mechanism in the form of regular routine reports, special risk reports and major risk/risk emergency reports to comprehensively, timely andobjectively re?ect the status of substantive risks faced by the management of subsidiaries and departments during the Reporting Period in order to better manage risks.
Business EthicsDahua upholds stringent standards of business ethics and has established the Dahua Integrity Construction Committee. Chaired by the Company's chairman, the committee is tasked with coordinating integrity-related initiatives, devising integrity systems, overseeing the implementation of related measures, facilitating integrity assessments, and fostering a culture of integrity within the Company. Furthermore, Dahuahas established internal policies and systems, including theDahua Business Ethics and Anti-Corruption Policy, theAnti-Fraud System, and theMeasures for the Administration of Corporate Accountability andPunishment, to fortify the Company's integrity and compliance standards, thereby ensuring sound business and management practices.
The Board of Directors establishes the Integrity Construction Committee, jointly operated by the Legal and Compliance Department, Compliance ManagementO?ce, Human Resources Center, and Internal Audit Department.The Integrity Construction Committee is responsible for overall anti-corruption and anti-bribery e?orts, including identifying compliance obligations, assessingcompliance risks, establishing systems, implementing measures, conducting inspections, and driving enhancements.The Internal Audit Department operates independently from other primary departments and is responsible for identifying and investigating instances ofcorruption, ensuring the authenticity and objectivity of reporting. In cases where corruption is con?rmed, decisions regarding the disposition of implicatedpersonnel are made collaboratively by the Human Resources Department, Compliance Management O?ce, and Legal and Compliance Department, basedon the severity of the situation, to ensure fairness. The Human Resources Center handles internal penalties for implicated personnel, while the Legal andCompliance Department and Compliance Management O?ce report such individuals to external authorities for appropriate action.
The Boardof Directors
The Board of Directors is the highest governing body responsible for overseeing business ethics issues within the Company. It is entrusted with reviewing thelegality and compliance of business ethics practices and preventing unethical behaviors.It oversees the Company's management and emphasizes the need for heightened awareness of unethical behaviors, urging management to take prompt ande?ective actions to prevent and address such behaviors.
The IntegrityConstruction
Committee
During the Reporting Period, Dahua conducted numerous anti-corruption training sessions and campaigns targeting all directors, executives, and employees, aiming to instill a culture of integrity company-wide.Internally, Dahua distributed theIntegrity Initiativeto underscore the Company's zero-tolerance stance against corruption and bribery, serving as both a warning and an educational resource. For suppliers andchannel partners, the Company required them to sign theIntegrity Agreementupon entry into the system. After entry, the Company also sent them theDahua Integrity and Compliance Ecosystem ConstructionInitiative to emphasize its commitment to creating a fair competition environment and building an ethical and fair supply chain.
Integrity and Compliance Publicity MonthDahua's channels for reporting and complaints
regarding business ethics
Hotline: 0571-28816326Email: jbrx@dahuatech.comWeChat Official Account: Fanghua Community - DahuaIntegrity- Petition and Reporting ChannelMailing Address: Internal Audit Department, A20,No. 1399, Binjiang District, Hangzhou City, ZhejiangProvince.
In 2021, Dahua launched its ?rst Integrity and Compliance Publicity Month, followed by a series of orderly integrity and compliancepublicity activities held annually in August. In August 2023, under the theme of "Integrity and Compliance, Transparency andIntegrity," Dahua sent theDahua Integrity and Compliance Ecosystem Construction Initiativeto external suppliers and channelpartners, demonstrating the Company's commitment to creating a fair competition environment. Internally, the Companydistributed theIntegrity Initiative to its employees, emphasizing its zero-tolerance stance towards corruption.
In addition to implementing preventive measures such as training and promotion, Dahua also supervises and audits its businesseswith significant ethical risks and potential corruption risks related to suppliers. The Company conducts a comprehensive businessethics audit covering all operational areas and processes at least every three years. During the Reporting Period, Dahua's Internal AuditDepartment focused on business ethics audits in the sales sector to identify any irregular transactions with customers. In cases wherecon?rmed instances of corruption are discovered, the Company adopts a zero-tolerance stance, terminating the employment of implicatedemployees and referring them to legal authorities for prosecution. Additionally, in 2023, Dahua conducted 14 supply chain audits andfound no violations of business ethics.The anti-corruption reporting system and its associated processes are integral components of the integrity culture development. Dahuahas established a variety of reporting channels, including hotlines, email, WeChat official accounts, letters, and others, to continuallyreceive feedback from various stakeholders through diverse and accessible means, fostering ongoing communication.In 2023, Dahua conducted
supply chain audits
Dahua accepts anonymous reports and complaints and hasimplemented a whistleblower protection system. This systemexplicitly prohibits the disclosure of the whistleblower's identity,department, address, and other personal details. Materialscontaining the personal information of whistleblowers, suchas the reporting letter, are not disclosed to the individuals ordepartments under investigation. We encourage the reportingof fraudulent behavior. If the information provided by thewhistleblower is found to be inaccurate, no action will be takenagainst the whistleblower.
Cybersecurity and PrivacyProtection
Cybersecurity
Dahua places great emphasis on cybersecurity and privacyprotection. While ensuring compliance with relevant laws andregulations in each operational area, the Company has alsoestablished a comprehensive cybersecurity managementframework and continuously improves personal privacyprotection systems. Dahua actively engages in external auditsand system certi?cations, while conducting emergency drills andtraining to safeguard the cybersecurity and privacy rights of boththe Company and its customers.
We have successfully completed audits conducted by independentthird-party organizations and acquired ISO 27001, ISO 27017,and other system certifications. We conduct comprehensive andsystematic reviews of the Company's information security systemand cloud security management to ensure the effectiveness ofDahua's cybersecurity management.
Dahua has formulated theAnti-virus and Malware ManagementRegulations, theInformation Asset Confidentiality ManagementSystem, theData Backup Management Regulationsand otherrelated system documents to support the Company in maintainingthe reliability and security of software, hardware, data, andinformation management from a systemic perspective.Under a rigorous cybersecurity management system, Dahuacontinues to implement a range of cybersecurity measures,including hardware network upgrades and software managementoptimizations. Leveraging technology and policies as thecornerstone, we are committed to fully safeguarding theCompany's cybersecurity.
Dahua strictly adheres to theCybersecurity Law of the People'sRepublic of Chinaand other relevant network security lawsand regulations in each operational area. The Company hasestablished a cybersecurity management system, which includesthe Cybersecurity Committee, Cybersecurity Execution Group,Cybersecurity Research Institute, and cybersecurity engineeringteams for each product line. These entities are responsible fordecision-making, implementing measures, and conductingtechnical research related to the Company's cybersecuritymatters.
CybersecurityCommittee
Cybersecurity Execution
Group
CybersecurityResearch Institute
Cybersecurity engineeringteams for each product line
As a supreme decision-makingorganization of cybersecurity,the Cybersecurity Committeeis responsible for the overallplanning, coordination, guidance,and monitoring of cybersecuritywork at a strategic level.
As a joint executive team acrossbusinesses, the CybersecurityExecution Group is responsiblefor leading discussion andformulating mechanismsand strategies relevant tocybersecurity at a tactical level,and for developing, tracking andprocessing daily cybersecurityat an executive level. It coversresearch, market, supply chain,delivery and service, and legalservice, and quickly implementsDahua's cybersecurityresolutions in every of itsbusiness systems.
The Cybersecurity ResearchInstitute, as an entity organization,undertakes research on keysecurity and privacy technologies,security engineering capacitybuilding, and security ecologyconstruction, responsible for theimplementation of security andprivacy requirements, securityand privacy risk assessment,security and privacy design,penetration testing, vulnerabilitymanagement, and incidentresponse, as well as thedevelopment of security processsystems and security compliancesystems.
Cybersecurity engineeringteams are set up for everyproduct line to closely interactwith the Cyber Security ResearchInstitute, so as to achievethe rapid implementationof security standards andregulations, security and privacytechnologies, and vulnerabilityrepair and handling across allproducts.
In terms of hardware networks, Dahua has established multipledata centers, enabling a global ring and redundant architecturenetwork for o?ce networks, ensuring the reliability of data centernetworks.In software management, Dahua adopts a hybrid IT architecturemodel and establishes a data sharing platform based on thedata middle platform and data lake, achieving integrated datamanagement.
During the Reporting Period, Dahua's cybersecurity management efforts received a number of recognitions, and the Company alsoleveraged its expertise in cybersecurity by actively contributing to the development of industry standards.
Dahua has established a product security incident response team to promptly address cybersecurity incidents. Throughout the ReportingPeriod, we refined and updated our cybersecurity incident response process, encompassing key steps such as reception, verification,solution implementation, disclosure, and improvement.
Awards and Honors
Awards and Honors
Certi?cations andRecognitions
Certi?cations and RecognitionsStandard SettingCSA Security Golden Shield Award- Cloud Security Alliance GreaterChina RegionFirst Prize of the Third InformationTechnology Service IndustryApplication Skills Competition -China Information Association
Ministry of Industry andInformation Technology'sNetwork Security Threat andVulnerability InformationDatabase (NVDB) - AdvancedEnterprise in VulnerabilityManagement PracticeChina National VulnerabilityDatabase of InformationSecurity (CNNVD) - ExcellentTechnical Support UnitChina National VulnerabilityDatabase (CNVD) -Outstanding ContributionUnit in VulnerabilityHandling
China Industrial ControlSystem VulnerabilityDatabase's (CICSVD) usergroup member unitChina National VulnerabilityDatabase of InformationSecurity's (CNNVD) technicalsupport unit (Level Two)China National APPVulnerability Database's(CAPPVD) three-startechnical support unit
2023 Industrial Information SecurityMonitoring Emergency Support Unitof National Industrial InformationSecurity Development ResearchCenter
GB/T 35274 - 2023 InformationSecurity Technology Big DataService Security CapabilityRequirementsGB/T 43026 - 2023 Public SafetyVideo Surveillance NetworkInformation Security TestingSpeci?cation
ReceptionVeri?cation
SolutionDisclosureImprovement
It proactively monitors and receives reports of suspected security issues with our productsIt coordinates relevant teams to conduct vulnerability validation and risk rating assessmentsIt analyzes the causes of vulnerabilities, designs, and implements remediation plansIt proactively discloses vulnerability information and releases repair proceduresIt enhances vulnerability scanning capabilities to meet product security requirements
During the Reporting Period, Dahua issued security alerts toglobal users on three occasions, with an average response time ofwithin 24 hours and a 100% response rate for security emergencyservices. Additionally, Dahua received numerous awards andcerti?cations related to vulnerability management.
Response rate for security emergency servicesAverage response time
%
within
hours
Cybersecurity Awareness Publicity Month
Dahua also places signi?cant emphasis on cultivating a corporate culture of cybersecurity. For several consecutive years, the Company has organized cybersecurity training sessions and promotional activities,including Cybersecurity Awareness Month, to deepen employees' understanding of the significance of network and information security. This ongoing initiative is designed to raise awareness among staffmembers and continually enhance their cybersecurity knowledge, thereby strengthening their capacity to e?ectively manage cybersecurity.
Dahua emphasizes the cultivation of a culture of cybersecurity and the enhancement of cybersecurity awareness. The Company has been organizing Cybersecurity Awareness Publicity Month activitiessince 2021. In September 2023, we held the Cybersecurity Awareness Publicity Month event themed "Security Relies on Everyone in Dahua". This event featured four main topics: cybersecurity,information security, legal and regulatory compliance, and brand compliance. Additionally, there were interactive components including online knowledge quizzes and o?ine activities aimed atreinforcing employees' cybersecurity awareness through engagement.
Privacy Protection
Dahua continues to enhance cybersecurity measures and remains committed to empowering product safety and privacy protection. We have implemented a comprehensive privacy protection managementsystem and successfully passed ISO 27701 and ISO 27018 system audits. We strictly adhere to relevant laws and regulations in operating locations such as thePersonal Information Protection Law of the People'sRepublic of China, theEU General Data Protection Regulation, theCalifornia Privacy Rights Act, CPRA, and thePersonal Data Protection Billin India, and we have formulated a series of comprehensive privacyprotection systems, process guidelines, and regulations.Information Security and PrivacyProtection Management Manual and
Information Security and Privacy
Protection Policy
They have provided direction for privacy protection at Dahua and established the CEO's accountability for privacy protection at Dahua.
Regulations for the SecurityManagement of CustomerInformation Data Protection at
Dahua
It provides a detailed de?nition of customer information and proposes speci?c security protection requirements.Dahua Personal Data Classi?cationand Grading Speci?cation
It categorizes the types of personal data that products and services may involve, defines security levels, and sets different usage and protection
requirements for data of di?erent levels.Product Privacy Protection Design
Guidelines
It provides guidance for privacy protection throughout the product lifecycle, with privacy design as its core principle.
Privacy Impact Assessment
Management Procedure
It focuses on the assessment of user data security and the protection of user privacy rights, clarifying the process of privacy impact assessment and the
responsibilities of relevant departments.User Rights Response ProcessIt outlines the procedures for handling user rights requests, maximizing the protection of user privacy rights.
An Overview of Dahua's Main Privacy Protection Systems, Process Guidelines, and Regulations
Under the constraints and guidance of laws, regulations, and policies, Dahua conducts internal testing and audits, external audits, and specialized work on data security governance for privacy protection.
Internaltesting and
audits
The Cybersecurity Research Institute and the Legal and Compliance Department conduct privacy compliance checks on apps once or twice a year. We thoroughly assess the privacycompliance of all Dahua apps in the app market using a combination of manual and automated tools, and subsequently generate privacy compliance reports. Any identi?ed potential riskpoints are promptly and e?ectively addressed by the corresponding development departments.During the Reporting Period, guided by a special initiative from the Zhejiang Communication Administration, we conducted privacy compliance self-assessments and recti?cations on sevenapps.
Externaltesting and
audits
During the Reporting Period, we underwent an independent third-party audit and obtained ISO 27701 certi?cation, which involved a comprehensive and systematicevaluation of Dahua's privacy protection management practices. Additionally, we conducted focused audits on Dahua's privacy impact assessments to ensure thee?ectiveness of our privacy protection e?orts.
Data
securitygovernance
DMSS Special Project: The Cybersecurity Research Institute, as an internal independent third-party organization, conducted a special project on data security, especially personal data
security governance, for DMSS. This time, it comprehensively reviewed all personal and business data involved in DMSS, and conducted detailed analysis on the encryption storage ofpersonal data, thereby enhancing the level of data security governance for DMSS.Macro Data Special Project: Dahua conducted a comprehensive review of Macro Data assets, completed important data analysis and identi?cation, and completed a data protection impact
assessment. Through research on information processing, we identi?ed data security management and technical risks, data processing activity risks, and risks related to handling personalinformation. We thereby generated data security risk assessment reports.Privacy Impact Assessment: Dahua adheres to the principles of Privacy by Design and Privacy by Default in the design and development of information technology products and services,
protecting personal data and privacy through default design. We regularly conduct privacy impact assessments, comprehensively review the collection of personal data in various businessareas, and analyze the legality and privacy risks of each stage of collection, storage, transmission, use, provision, and destruction of data. Based on the impact of these risks on the rightsand freedoms of natural persons, we rate the privacy risks. For identified privacy risks, business owners will formulate risk mitigation plans and regularly monitor the results of theirimplementation.In 2023, Dahua's Cybersecurity Research Institute and product lines jointly completed privacy impact assessments for the Dolynk series products and Macro Data series products.
In addition, while implementing privacy protection measures and adhering to the concept of privacy protection, we actively provide privacy protection guidelines to customers and showcase the progress ofDahua's privacy protection e?orts to the public.
Since the R&D stage, Dahua has placed a high emphasis on integrating privacy protection principles and features into its products. TheCompany initiated the "Security Baseline" plan in 2016, adhering to core principles such as "Security by Design" and "Security by Default,"as well as "Privacy by Design" and "Privacy by Default." We delve deeply into cybersecurity and privacy protection technologies to provideusers with secure products. The Security Baseline plan embodies security and privacy design principles, designing architectures based onsecurity elements such as identity authenticity, consistent permissions, non-repudiation, con?dentiality, integrity, availability, and privacy.This forms a systematic AIoT product security framework covering physical security, system security, application security, data security,network security, and privacy protection.During the Reporting Period, theLife Cycle Process Speci?cation for Dahua sSDLC Secure Software Developmenthas been iterated toversion 3.0. By implementing the sSDLC process management specification, we have implemented refined and differentiated securitycontrols to software development projects. We ensure that products and services adequately consider cybersecurity and privacy risks inaccordance with relevant laws and regulations in the regions where they are o?ered. We propose mitigation measures and ensure thatsecurity responsibilities are ful?lled in every software project.
The "Trust Center" on the O?cial Website
UpdatingHow Dahua Products Help Users
Comply with GDPR
Dahua Product Security Whitepaper V3.0
Through the three modules of security andtrustworthiness, privacy protection, and opennessand transparency, Dahua showcases to the publicits progress in network security, data security,privacy protection, emergency response, securitycerti?cation, and other aspects.
We have updatedHow Dahua Products Help UsersComply with GDPR, providing users with privacyprotection compliance guidelines for using Dahuadevices, allowing users to better understand theprivacy protection features of Dahua products. Thisdocument has been made available on the TrustCenter.
Dahua products that involve the processing ofpersonal information are all equipped with privacypolicies. The privacy policy includes the types of datacollected, purposes of use, methods of processing,storage periods, user rights, and responses relatedto personal information, ensuring transparency andopenness in the process of personal informationhandling. We guide users to carefully read the privacypolicy when they ?rst use the device, and also supportusers in accessing it at any time during subsequentuse, making it easier for users to fully understandprivacy protection-related information.
2023
Environment
Zhejiang Dahua Technology Co., Ltd.
Environmental, Social and Governance Repo
EnvironmentEnvironmental Management 33Green R&D 35Green Development 39Green Operation 40
Ensuring a healthy ecological environment is fundamentalfor the sustainable growth of a company. At Dahua,as we continually enhance the quality of our productsand services, we actively embrace current trends byemphasizing the harmonious coexistence of businessoperations and environmental preservation. In additionto strengthening our own environmental managementsystem, we have developed a comprehensive sustainableenvironmental management policy. We proactivelyaddress climate change risks and grasp opportunities,and efforts are made in key operational areas suchas R&D, logistics, products, and office operations tocontinuously optimize resource utilization efficiencyand reduce the overall environmental impact of theCompany's operations.
Environmental ManagementDahua adheres to the environmental management system guideline of"safe and environment-friendly, green and healthy, compliance with lawsand regulations, continuous improvement". The Company has establishedan environmental management framework that encompasses R&D,products, and operations. Dahua diligently identi?es and strictly adheresto relevant environmental laws and regulations in the areas where itoperates. We have formulated theList of Laws, Regulations and OtherRequirements Recognized and Evaluated. Additionally, the Companyhas developed theRegulation on the Recognition and Evaluation ofEnvironmental Factorsto comprehensively identify, assess, control,and update environmental factors related to the Company's businessactivities.
Environmental management framework
Green Raw MaterialGreen Platform
Green TechniqueGreen PackagingGreen AttributeGreen Certi?cation
Green R&D
Green Product
Green Logistics
Green O?ce
Green ManufacturingGreen Operation
In waste management, Dahua has formulated theSolid Waste Pollution Prevention and Control Management Normsand theManagementMeasures for Hazardous Waste Disposal, resulting in standardized management systems and processes, to ensure that the generation,collection, storage, utilization, and disposal of solid waste strictly adhere to local laws and regulations.For the management of hazardous substances, Dahua has established a hazardous substance process management system and obtainedthe IECQ QC080000:2017 Hazardous Substances Process Management System Certi?cation. Collaborating with suppliers, the Companyworks to reduce the use of hazardous substances in production.
Re?ned Energy ManagementEstablish a smart energy consumption system to
monitor and optimize energy e?ciency through real-time dashboards.Encourage all employees to take the initiative to set
up energy-saving projects and implement refinedenergy management.
Energy Monitoring and ReviewEnergy Monitoring: Dahua conducts regular inventoriesand monitoring of key energy-consuming equipment.Regarding energy monitoring devices, the Companyfollows theMonitoring and Measuring Equipment ControlProceduresto maintain and calibrate them, ensuring areliable data foundation for energy-saving e?orts.Energy Review: Dahua has formulated theEnergy ReviewManagement Proceduresto conduct regular energy reviewsbased on energy monitoring data. We use past data todevelop future energy management plans.
Based on the requirements of ISO 14001:2015 EnvironmentalManagement System, Dahua has established a robust environmentalmanagement system and developed a set of comprehensiveenvironmental management regulations. This system plays a pivotalrole in mitigating potential adverse impacts on the environment.The Company meticulously manages aspects such as water, air,noise, and waste, and engage third-party agencies to produceenvironmental supervision and evaluation reports such as thereport of three waste detection. This approach ensures thoroughinternal management and external oversight, providing a duallayer of assurance. During the Reporting Period, Dahua successfullyobtained the ISO 14001:2015 Environmental Management Systemcerti?cation.
In terms of energy management, Dahua has formulated theEnergyReview Management Proceduresand theEnergy Benchmark,Energy Performance Parameter Management Control Procedures
to systematically monitor the Company's energy consumptionindicators on a regular basis. Additionally, we have establishedtheEnergy Management Factor Identi?cation Checklistto overseeand inspect energy usage in o?ces. Implementing an intelligent,re?ned, and visualized energy management and control system, weleverage smart IoT technology to enhance our energy managementsystem. During the Reporting Period, Dahua obtained the ISO50001:2018 Energy Management System certi?cation.
ISO14001环境管理体系
ISO14001EnvironmentalManagementSystem
| ISO50001Energy Management SystemISO45001Occupational Health & Safety Management SystemISO50001能源管理体系ISO22301Business Continuity Management SystemsQC080000Hazardous Substance Process Management SystemISO28000供应链安全管理体系ISO28000Security Management System for the Supply Chain |
体系图片 ISO14001、ISO45001、 QC08000、ISO50001、ISO22301、ISO28000、国家级绿色供应链、绿色工厂认证图标
ISO22301业务连续性管理体系
ISO45001职业健康安全管理体系
QC080000有害物质过程管理体系
ISO14001环境管理体系
ISO14001EnvironmentalManagementSystem
ISO50001EnergyManagementSystem
| ISO45001Occupational Health & Safety Management System |
ISO50001
能源管理体系
ISO22301Business ContinuityManagementSystems
QC080000Hazardous SubstanceProcess ManagementSystem
ISO28000供应链安全管理体系
ISO28000SecurityManagement Systemfor the Supply Chain
体系图片 ISO14001、ISO45001、 QC08000、ISO50001、ISO22301、ISO28000、国家级绿色供应链、绿色工厂认证图标
ISO22301业务连续性管理体系
ISO45001职业健康安全管理体系
QC080000有害物质过程管理体系
| ISO14001环境管理体系ISO14001Environmental Management SystemISO50001Energy Management SystemISO45001Occupational Health & Safety Management SystemISO50001能源管理体系ISO22301Business Continuity Management SystemsQC080000Hazardous Substance Process Management SystemISO28000供应链安全管理体系ISO28000Security Management System for the Supply Chain | 体系图片 ISO14001、ISO45001、 QC08000、ISO50001、ISO22301、ISO28000、国家级绿色供应链、绿色工厂认证图标ISO22301业务连续性管理体系ISO45001职业健康安全管理体系QC080000有害物质过程管理体系ISO14001环境管理体系ISO14001Environmental Management SystemISO50001Energy Management SystemISO45001Occupational Health & Safety Management SystemISO50001能源管理体系ISO22301Business Continuity Management Systems |
QC080000Hazardous SubstanceProcess ManagementSystem
Green R&DEmpowerment by Management PlatformsAt Dahua, we view environmental protection as our responsibility, integrating clean technology into the Company's strategy and increasing investment outputs in this area. We embed green principles throughoutthe entire product lifecycle by establishing a Green Product Management Platform (GPM), facilitating integrated management of product green attributes. This platform signi?cantly promotes standardized andprocess-oriented management of green R&D e?orts, thereby enhancing the e?ciency of our green product management.Additionally, Dahua has developed theProduct Full Lifecycle Environmental Management Speci?cation,which imposes rigorous standards and strict requirements for internal environmental management acrossvarious stages including product design and development, processes, production, logistics, sales, maintenance, and product recycling.
ProductDevelopment
Business Opportunity
Data interaction
Demand Management
SCP
Visualized Data Integration
Environmental QualityManagement
EBS
Customer Support
OA
Design, Development and Veri?cation of DesignsManufacturingProduct Life Cycle (PLC)
GMP
Customer environmentalprotection agreement reviewOnline environmentalprotection declarationCompliance informationoutputTechnicaldocumentation delivery
Supplier approvalmanagementRegular sampling inspectionof chemical substances forincoming materialsDisposal process forabnormal incomingenvironmental goods
Material import
Componentidenti?cation
BOMconvolution
Changemanagement
Samplinginspection
Reports and
statisticsComplianceinformation updateOnline substancedeclaration
Regulationtrend update
Basicdatabase
Collection of regulationsDiversi?ed customer demands for
environmental protectionIndustry-speci?c environmental
requirementsDynamic trackingSubstance declarationprocess
Data update process
Environmentalknowledge base
DatainteractionPLM
Supported by Green Raw MaterialDahua places significant emphasis on managing green product attributes by integrating environmental requirements into theearly stages of R&D. The Company actively identi?es and adheres to environmental regulations and standards for products in bothdomestic and international operations, encompassing key requirements such as RoHS, REACH, CA65, PAHs, among others. Theserequirements are internalized and integrated intoDahua's Hazardous Substance Restriction Requirements,which also extend to theCompany's suppliers, ensuring that our products meet stringent environmentally friendly and low-carbon standards right from thesource.The Company strictly adheres to the Hazardous Substance Process Management System (HSPM) in accordance with the IECQQC080000:2017. This includes enhancing environmental data control mechanisms, developing multiple material library functions,and utilizing green materials to support green product development. Throughout the Reporting Period, the HSPM operatede?ectively, resulting in zero recall or customer complaint related to environmental compliance issues.During the Reporting Period, Dahua added and updated 1,718 RoHS reports, covering over 97% of production materials. TheCompany also introduced new environmental testing equipment, conducting inspections on over 1,000 types of productionmaterials with a 100% pass rate for self-developed RoHS sampling. Additionally, all types of di?erent materials achieved a 100%coverage rate for REACH declarations. Over 1,000 products sold in Europe completed SCIP registration declarations, and the overallrecovery rate for WEEE (Waste Electrical & Electronic Equipment of the European Union) products reached 80%.
Upgrading R&D Technique
While building a green product R&D platform and system,Dahua is dedicated to developing simulation designs. Ourconstructed Galaxy Cloud Simulation Management Platformfacilitates multidisciplinary simulation and cross-domainintegration, characterized by high precision and efficiency.This platform significantly diminishes the necessity foractual testing or experiments in the R&D process, leveragingcontinuous technological innovation to support greendevelopment. Currently, 100% of the Company's new productR&D has achieved simulation coverage.
During the Reporting Period, Dahua was honored with theExcellent Organizational Award in Engineering SimulationInnovation Design at the Belt and Road Initiative and BRICSCountries Skills Development and Technological InnovationCompetition. Several employees also received the SecondPrize, Third Prize, and Excellent Award for EngineeringSimulation Innovation Design in this competition.
The number of various simulation project on the GalaxyCloud Simulation Management Platform during theReporting Period
Thermal simulation:
projects
Mechanical simulation:
projects
Electrical simulation:
projects
R&D of Green PackagingDahua closely monitors the environmental impact of product packaging. The Company follows theEU 2005/20/EC Packaging and Packaging Waste Directive, as well as relevant standards such astheGB/T 12123-2008 General Requirements for Packaging Design, theGB/T 8166-2011 Cushioning Packaging Design, theGB/T 6544 Corrugated Board,and theGB/T 13024 Carton Boardsbaselinerequirements. Adhering to principles of light weighting, standardization, and green sustainability in packaging materials, Dahua actively conducts research and development on green packagingmaterials, guided by theDH JS 1730 Packaging Design Technical Specificationand theT/ZJAF 9-2021 Green Packaging Technical Specification for electronic security products.
Lightweight PackagingDahua is committed to a strategy of lightweight packaging, ensuring that packagingeffectively protects our products while minimizing the use of packaging materialsand reducing packaging weight wherever possible. This approach not only reducesresource consumption but also lowers carbon emissions.We have developed an industry-leading film composite packaging technology,which utilizes a flat paper-film packaging structure to provide three-dimensionalproduct protection in a flat package. This innovative design is 100% recyclable,resulting in a 40% reduction in packaging material usage and a 50% decreasein storage space requirements. Our patented non-equal-length composite coreproduction process with paper film significantly reduces the average volume ofproduct packaging by over 15%. On average, every million sets of products can save
12.5 tonnes of cardboard usage. This technology has been granted 31 authorized
invention patents and 42 utility patents and is continuously being applied to keyproducts in front-end, consumption, and storage segments.
We have also developed EHS ecological pallet with paper replacing plastic. Theseeco-pallets use paper instead of plastic or wooden pallets, reducing the weight ofthe pallets by 50% and lowering energy consumption and carbon emissions duringproduct transportation.
Corrugated cardboardHoneycombed pattern
Increase packagingreusability by 30%
Reduce materialusage by 40%
Improve storage spaceutilization by 50%
Enhance productioncapacity by 30%
Current assembly / heavy load packaging
Assembly / heavy load packaging using EHSecological pallet with paper replacing plastic
Upgrading Green Packaging
Dahua is dedicated to utilizing more environmentally friendly packaging materials, aiming to reduce the plastic content in packagingto lower non-renewable resource consumption, minimize environmental impact, and promote the green recycling of packagingmaterials. Through initial research on degradable films and cushioning foam materials, along with the development of high-strength all-paper cushioned linings, plastic-free color printing curing technology, and novel-coating moisture-proof boxes, we haveintroduced green plastic-free packaging technologies to replace non-degradable plastic components in our packaging. This initiativeeffectively reduces plastic waste, standardizes packaging materials, decreases solid waste disposal requirements, promotes recyclingand reuse, and enhances the overall degradability of the upgraded packaging. As a result of these efforts, we have achieved a 9%reduction in plastic content in product packaging, equating to an annual reduction of 8 tonnes of single-use plastic per million units.
Packaging StandardizationDahua implements packaging standardization to ensurethat packaging materials meet the requirements of variousproducts while promoting uniformity in packaging. Thisapproach enhances the reusability and space utilization ofpackaging materials.Based on the standardized design of basic logisticsmodules, we have developed a modular packagingtechnology featuring 1 standard box specification and 22packaging solutions, catering to the packaging needs ofover 1,000 components. This technology is characterizedby high reusability and significantly enhances the spaceutilization of packaged products in transport vehicles.Additionally, our innovative film packaging technologynot only reduces the consumption of materials but alsoincreases the reuse rate of product packaging by 30%.
灵活适配标准栈
1.1*1.1m栈板
1.1*1.1m栈板
1.2*1.0m栈板
| 1.2*1.0m栈板 |
····
1.1*1.1m栈板
1.1*1.1m栈板
1.2*1.0m栈板
····
····
灵活适配标准栈
灵活适配标准栈
1.1*1.1m栈板
1.1*1.1m栈板
1.2*1.0m栈板
····
Dahua mainly uses paper, plastic, wood and metal as packages. During the Reporting Period, the Company's consumption intensity of paperand plastic packaging was as follows:
TypeUnit202320222021PaperTonne/Million units325357412Plastic（EPE）Tonne/Million units425062
Adaptive to standardpallets
Technology incubation &transportation safety studies
Modular solutions adaptive to different components
·EPE foam cushioning inserts·High-strength all-paper cushioned lining
·New biodegradable composite materials· Plastic-free color printing curingtechnology·Novel-coating moisture-proof box
· Single-use transparent PEplastic bags· Thin film colorful boxes
· Protective kit boxes
Green DevelopmentBased on the overall strategy of "digital intelligence empowerment, low-carbon future, shared ecology, and compliant operation", Dahua integrates digital intelligence into sustainable development acrossall aspects of our business. We actively embrace the opportunities o?ered by clean technology and consistently involve in clean tech activities. Our aim is to deliver greener and more low-carbon productsthrough the adoption of clean technology, thereby supporting sustainable and high-quality development across various industries.
During the Reporting Period, Dahua obtained a number of authoritative green certi?cations both domestically and internationally, including China Environmental Labeling Certi?cation (Type II), ChinaCerti?cation of Environmental Products (CCEP), and Attestation of Chinese environment mark.
Green certi?cation
Clean technology application - alternative energy
Integrated solar power transmission monitoring systemThe small reservoir solar power systemThe transmission monitoring system utilizes solar powerto ensure normal operations for over 72 hours even duringrainy days. It provides su?cient energy support for intelligentmanagement in transmission scenarios, saving around380,000 kWh of electricity per ten thousand units annually.
The system provides a low-cost solar power solution for smallreservoir construction, addressing the challenge of difficultaccess to electricity due to the large area and complex terrainof reservoirs. It saves around 1.53 to 2.55 million kWh ofelectricity per ten thousand units per year.
Attestation of Chineseenvironment markChina EnvironmentalLabeling Certi?cation (Type II)
China Certi?cation ofEnvironmental Products (CCEP)
Revenues from clean tech products andservices during the Reporting PeriodRMB
487.61
Million
Green OperationDahua takes environmental protection as its responsibility,continuously strengthening its environmental managementcapabilities across three main operational aspects: greenmanufacturing, green logistics, and green office. We widelyadopt energy-saving and emission-reducing measures toachieve green development.
While promoting green transportation both upstream anddownstream, Dahua places significant emphasis on energyconservation and emission reduction in our production andmanufacturing processes. We implement intelligent andre?ned management of energy consumption to consistentlyenhance the efficiency of recycling raw materials and waterresources. Furthermore, we prioritize the compliant andharmless disposal of all types of waste generated duringproduction, striving to establish green factories.We continue to improve the efficiency of energy utilizationin our production and operations through our energymanagement system, which integrates refined energymanagement and energy monitoring and evaluation. Thisinvolves real-time online monitoring of electricity, gas,and other energy consumption measurements and billing,along with reporting analysis and energy consumption data.Through functions such as energy consumption diagnosisand analysis, we o?er comprehensive approaches to energymanagement for management personnel, thereby elevatingthe efficiency and effectiveness of energy managementwhile reducing operation and maintenance costs. In 2023,we achieved significant progress in constructing smartenergy consumption systems, optimizing energy structures,transforming park equipment, and reducing carbon emissionsin green data centers.
Green Manufacturing
Energy Management
The intelligent energy consumption system
Clean energy utilization
During the Reporting Period, Dahua remained committed to optimizingthe energy consumption platform for the park, gathering categorizedenergy consumption statistics. We established a park energy consumptiondata dashboard to enable real-time monitoring of energy consumption,providing precise data support for targeted improvements in energyusage efficiency. Simultaneously, we developed an intelligent energyconsumption system for the park, capable of accurately identifying high-energy consumption points or inefficient electricity usage methods. Thissystem automatically calculates equipment energy consumption andcorresponding carbon emissions. Additionally, it analyzes the usage rate ofworkstations through electricity data, enabling us to optimize workstationzoning and enhance energy usage e?ciency in the park.
Dahua's Fuyang Phase II Factory installed a rooftop photovoltaic system covering an area of 60,000 square meters, connected to thegrid for operations. It was put into use in 2023, and by December 2023, it had generated a total of 5.447 million kWh of electricity.In the 1399 New Park, green energy is fully utilized, with 140+ kW photovoltaic panels installed on the rooftops of buildings. Thephotovoltaic panels were put into operation in 2023 and had generated 45,000 kWh of electricity by December 2023.
Rooftop photovoltaic system at Fuyang Phase II Factory
Electricity by December202345,000kWhPhotovoltaic panels installedon the rooftops
140+KW
By December 2023, it hadgenerated a total of electricity
5.447
million kWhRooftop photovoltaic60,000square meters
Park equipment upgradesGreen data centerWe conducted a thorough assessment of the public electricalequipment and facilities in the park, delving deep into potentialenergy-saving opportunities. We devised plans for electricityconservation and proceeded with energy-saving upgrades,achieving signi?cant results in energy e?ciency improvement.Utilize intelligent methods to set timed temperature adjustmentsand air conditioning shutdown strategies.Install motion-sensing radar above the stadium to monitor whetherthere are people on the premises in real-time, enabling automaticlight shutdown when the area is vacant, with an estimated annualelectricity savings of approximately 62,000 kWh.Utilize residual heat from workshop air conditioning boilers in theFuyang base to heat water tanks for dormitories.Upgrade streetlights, replacing energy-saving and ?uorescent lightswith 26W LED lights, with an estimated annual electricity savings ofapproximately 13,880 kWh.
Dahua continues to dive into innovative cloud services, leveraging cloud computing technology to further empower carbon neutrality. With the goal of building a"green" cloud, Dahua constructed the Dahua Cloud Platform, integrating cloud computing, big data, and data centers during the Reporting Period. In 2023, DahuaCloud Platform's data centers continued to optimize and integrate server resources, reducing the dependence of cloud products on hardware and decreasing thedemand for server procurement by 27%.The Dahua Cloud Platform features efficient dynamicscheduling capabilities. It calculates power consumptionbased on workload utilization rates, and when business loadsdecrease, it can transition redundant resources into energy-saving mode.Based on the more flexible scheduling, higher resourceutilization, and more simpli?ed structure of the Dahua CloudPlatform, we have transferred software development andtesting to the cloud. This has resulted in a substantial increasein research and development efficiency and a significantimprovement in cost-e?ectiveness.Dahua's cloud computing center adopts standardized andmodular data center design, equipped with intelligent powersupply systems, adaptive temperature sensing systems, andstandardized management systems. Compared to traditionaldata center models, it consumes signi?cantly less energy.
The peak resource utilization rateincreased by over
%
Cloud-based software development reduced the Company's electricityconsumption by about
83,000kWhThe Power Usage Effectiveness (PUE) of the cloud computing center has beenoptimized to
1.32
The energy consumption of primary equipment andmachine rooms both decreased by over
%
Energy Consumption
Unit2023 20222021Indirect Energy Consumption
Indirect Energy Consumptionkg standard coal12,785,68011,676,7218,910,584Indirect Energy Consumption Intensitykg standard coal /RMB million revenues397382271Direct Energy Consumption
Direct Energy Consumptionkg standard coal2,520,4442,053,3651,529,811Direct Energy Consumption Intensitykg standard coal /RMB million revenues786747Comprehensive EnergyConsumption
Comprehensive Energy Consumptiontonne standard coal15,306,12513,730,08710,440,394Comprehensive Energy Consumption Intensitytonne standard coal /RMB million revenues475449318
The energy consumption data in this table is calculated by various energy-standard coal conversion coe?cients from Appendix A ofGB/T 2589-2020
General Rules for Calculation of the Comprehensive Energy Consumption(reference values).
Water Management
Dahua has established a strict water management system in accordance with the productionprocess and relevant local laws, regulations and standards. This system ensures the scientificand rational use of water while comprehensively enhancing water utilization e?ciency. We haveestablished dedicated working groups and devised annual water-saving plans. Through initiativessuch as water balance testing, water usage monitoring, water-saving renovations, and rainwaterrecycling, we strive to decrease water consumption and waste, thereby increasing the reuse rateof water resources.
Rainwater recycling systemThe recycled rainwater is used for landscape ponds, greenery irrigation systems,road washing, etc., significantly reducing the demand for municipal water in dailyoperations.Water-saving renovation
The Company actively adopts advanced water-saving technologies, uses water-savingequipment and appliances, and installs over?ow prevention devices, trying to reducewater consumption.
Water consumptionUnit202320222021Water Consumptiontonne798,597807,292790,857Water ConsumptionIntensity
tonne/RMB millionrevenues
252624
Production Resource ManagementWe prioritize the management of resource utilizatione?ciency, leveraging digital-intelligent technologies tooptimize the use of production materials. We continuallyenhance production processes to minimize resourcewaste and actively explore product recycling systems.
Product recycling andcirculation
Frequent line changes can lead to prolongedidle states of equipment, resulting inine?cient equipment utilization and energywaste. During the Reporting Period, Dahuaoptimized the production line con?gurationbased on the order structure and combinedequipment resources to schedule productsthat could be batched together in advance.The e?orts increased the batching rate from3% to 18%, reduced downtime due to linechanges by 2,885 hours, and improvedequipment utilization by 1.05%.
We recycle, dismantle, and reuse returnedproducts and scrapped materials in acompliant and re?ned manner. During theReporting Period, we recycled 14 types ofmaterials from returned goods, weighing atotal of 1,663 tonnes.
Production schedulingoptimization
Data transparency: By categorizing materials, consumption data becomes transparent. From material requisition to distribution on the production line, all consumption can be quicklyveri?ed for rationality and abnormalities through the system's records. This targeted approach provides e?ective support for cost analysis and control.
E?cient assessment: By analyzing historical data in the system, we can promptly and accurately evaluate demand information, thereby improving the accuracy and rationality of monthlydemand forecasts. This enables balanced procurement and reduces waste caused by overstocking.
Clear responsibilities: The status and ownership of engineering equipment materials are available for online inquiry, allowing responsible individuals and administrators to access real-time information. This facilitates the handover of materials when employees transfer or depart. Additionally, it speci?es accountable personnel to prevent material loss or waste.
Platform-based operations: We implement standardized and systematic management, regulating the application, issuance, and distribution of consumables across all departments toachieve uni?ed and standardized operations.
Idle assets sharing: By establishing an idle resource repository, we achieve resource sharing, e?ectively increasing the utilization rate of consumables and reducing waste.
Consumables Management PlatformDahua has enhanced the transparency, re?nement, and standardization of consumables, engineering equipment, and labor protection supplies management through the construction of the energyconsumption management platform system. The platform provides data support for the control of business departments, enabling rational procurement, reducing material waste, and increasing theutilization rate of idle resources.
In 2023, the waste emissions during production and operations of Dahua are as follows:
Types of emissionsUnit202320222021
Solid waste
Total disposal amount of hazardouswaste
tonne765152Legal transfer rate of hazardous waste%100100100Compliance disposal rate of hazardouswaste
%100100100Disposed hazardous waste density
tonne/RMB million
revenues
0.002//Total recyclable wastetonne2,209.51,524/Total non-recyclable wastetonne5,540.51,228568
Emissions ManagementBuilding upon our comprehensive and compliant waste managementsystem, we exercise stringent control over the generation, handling,and discharge of waste during production and operations. We ensurethat all waste meets the environmental standards of the operatinglocations before promoting waste and emissions reduction initiatives,thus driving forward green manufacturing throughout the industrialchain.Waste gas managementWe invite third-party testing agencies to conduct regular on-site waste
gas testing and issue theIndustrial Waste Gas Testing Report. Duringthe Reporting Period, all indicators of waste gas emissions fromDahua complied with relevant national standards.For cafeteria fumes, we have installed oil fume purification devices
certi?ed by the environmental protection department. It is stipulatedthat fumes must be treated before discharge.Wastewater management
The Company's wastewater mainly consists of sanitary sewage
and cafeteria oily wastewater. After treatment in oil separators, itmeets theComprehensive Wastewater Discharge Standardsandis discharged into the municipal water supply network. Every year,the wastewater of the Company is analyzed by the Binjiang WaterQuality Analysis Monitoring Station, to ensure that all indicators meetrelevant national standards.
Solid waste managementThe main hazardous waste generated by Dahua includes toner
cartridges, ink cartridges, batteries, and fluorescent tubes. Inaccordance with theLaw of the People's Republic of China on thePrevention and Control of Environmental Pollution by Solid Wasteand other relevant laws and regulations, we have formulatedmanagement measures for the disposal of hazardous waste. Thesemeasures ensure that the identification, collection, storage, anddisposal processes of hazardous waste adhere to national andlocal laws and regulations, thereby effectively controlling potentialenvironmental pollution risks.
Integrated exhaust and ventilation system
During the Reporting Period, to reduce the emission of waste gases during production due to glue volatilisation and ensure the healthand safety of employees, we introduced an environmentally friendly exhaust system for glue dispensing.This system adopts an integrated exhaust and ventilation solution. Combined with two secondary activated carbon ?ltration boxes, itmeets the emission standards speci?ed inDB33/2146-2018Table 1. Additionally, the control end has been enhanced with timing andfrequency conversion functions to further reduce energy consumption.
Green Logistics
Dahua collaborates with industry partners both upstream anddownstream to collectively establish a green and intelligentlogistics system. This system spans the entire industrychain, encompassing upstream supplier material supply,internal warehouse management, and product distributionand transportation. Our goal is to enhance the efficiency ofthe industry chain while simultaneously achieving energyconservation and emission reduction.Full-process tracking: Dahua collaborates closely with logisticscompanies to monitor the real-time routes and operationalstatus of transportation vehicles. Through big data analysisand cloud computing, transportation routes are optimizedto improve transportation efficiency while reducing energyconsumption caused by detours, transfers, and trafficcongestion.Delivery waybill optimization: Through data exchanges betweenWarehouse Management Systems (WMS) and TransportationManagement Systems (TMS), order information is electronicallytransmitted to logistics companies. Dahua's logistics sortinglabels and network waybill manifest labels are integrated intoa single label, allowing logistics companies to directly input theinformation into the network without the need for secondarylabeling, thus reducing resource usage and the negativeenvironmental impact of adhesive.Specialized vehicles for large items: By setting a weightbaseline in the SCP system, shipments meeting the criteria areautomatically intercepted and identified in the system. Thisallows large shipments to be directly converted into specializedvehicle deliveries, reducing intermediate transportationlinks, shortening transportation cycles, and achieving energyconservation, emission reduction, and cost reduction in thetransportation process.
Reusable Straps: During the Reporting Period, we replaced the commonly used wrapping ?lm material in warehouses. For situationsinvolving medium to short-distance transportation or short-haul scenarios, we use reusable straps instead of wrapping film tosecure entire pallets of materials, reducing the use of plastic wrapping ?lm.Supply Chain Sharing: We continue to implement packaging sharing programs, collaborating with suppliers to recycle turnoverboxes. Additionally, we combine the packaging for the same order to reduce the use of cardboard boxes.
Intelligent Distribution Center: Through "digital intelligence" and "energy conservation and emission reduction," we implementgreen warehousing. The intelligent distribution center of Dahua Phase II has built algorithm models for inventory distribution,wave formation, and AGV scheduling. It has also applied automated equipment such as automatic conveyors, AGVs, lifts, automaticmeasurement devices, heat sealing packaging machines, and RFID systems. We have deployed 376 AGVs in both raw material and?nished product warehouses, achieving unmanned operations. The ?oor area of the dark warehouse has increased from 100,000square meters to 120,000 square meters, saving energy costs of RMB900,000 per year.Dark Warehouse: Dahua has transformed the Fuyang bonded warehouse into an unmanned dark intelligent warehouse, achievinglow-carbon operations within the warehouse. Customs can remotely monitor this warehouse to ensure real-time data exchangesand systematic integration for customs declaration. Entry and exit data are collected through intelligent AGVs and smart industrialcameras, enabling the entire process to be paperless.Green transportation
Recycling and circulation
Green warehousing
The ?oor area of the dark warehouse120,000square meters
Number of deployed AGVs
Saving energy costs of per yearRMB900,000
Green O?ceWhile promoting green production, Dahua also placesemphasis on improving management and implementingmeasures for green offices, with the objective of establishinga green industrial park. Throughout the Reporting Period, weintroduced various energy-saving equipment in the park andprovided environmental protection training and awarenesscampaigns for employees.
Smart lighting
In our new park, we have implemented a smart lightingsystem equipped with dimmable lights and motion sensors. Incommon areas such as elevator halls, pantry areas, corridors,and meeting rooms, the lighting intensity can be adjustedbased on natural light levels, ensuring that lights are only onwhen people are present and turn off when the area is vacant.
In the underground parking lot, the smart lighting systemactivates lights within the visual range (30-50 meters) upondetecting movement from people or vehicles. Once the vehicleleaves or pedestrians depart, the lights dim to reduce energywaste while ensuring adequate illumination for passage.Water-saving practices
We have placed signs in the o?ce areas encouraging employeesto use water wisely and reduce waste.
To avoid water waste from automatic flushing systems, therestrooms in our new building have been equipped with manual?ushing mode.Environmental awareness promotion
We post energy saving and consumption reduction signs inthe park, advocating "Achieve multiple use of water to reducewaste from the source", "Save energy by turning off lights toreduce residential electricity consumption", "Promote double-sided printing to reduce waste from the source".
Dahua's energy-saving publicity posters
Zhejiang Dahua Technology Co., Ltd.
Environmental, Social and Governance Repo2023
Society
Society
Empowering Employees' Development 48Creating Customer Value 56Responsible Supply Chain 62Building Industrial Ecosystem 66Investing in Public Welfare 69
Dahua remains steadfast in upholding the principle of equality, clearlyarticulating in the Company'sEmployee Handbookits commitment toproviding equal job opportunities. We adamantly oppose discriminationin all its forms, regardless of nationality, race, gender, education level,religious beliefs, age, or any other factors. At Dahua, we ensure thatemployees receive fair and equitable treatment across all stages of theiremployment journey, encompassing recruitment, employment, salary,training, promotion, and compensation. This dedication serves to nurturea diverse talent system within the organization.During the Reporting Period, Dahua became a signatory to the UnitedNations Global Compact. The Company is committed to upholdingthe ten principles set forth by the organization, with a specific focus onrespecting and safeguarding human rights. In alignment with the SA8000social responsibility standard, Dahua developed aSocial ResponsibilityManagement Manual. This comprehensive manual is designed to eliminatechild labor, forced labor, infringements on freedom, and all forms ofpotentially illegal labor practices. It establishes reasonable working hours
and upholds employees' rights to freedom of association and collectivebargaining under legal and voluntary conditions.To ensure the harmonious and stable development of our workforce andeffectively safeguard the rights and interests of our employees, we haveestablished the Dahua Labor Union. We actively listen to employees'feedback to enhance organizational vitality. Moreover, we adhere to thelegal framework governing workers' congresses, continuously innovatingdemocratic management practices, and safeguarding employees' rights toaccess information, participate in decision-making processes, and exerciseoversight.
Empowering Employees'DevelopmentDahua values its employees as a valuable asset and embraces a talentphilosophy centered on "respecting, nurturing, caring for, and empoweringemployees." We consistently invest in attracting and developing talent,fostering organizational vitality, and promoting employee well-being. Thisdedication enables our employees to recognize their self-worth and evolvealongside the Company.
AwardAwarding Agency
MostIn Global Attractive EmployerLinkedin.comTop 30 Employers in HangzhouLanding.zhaopin.comEcho Annual Employer for CherishingTalents
zhipin.com2023 Most In?uential Employerhaitou.ccBest Collaborative PartnerBeisen.comOutstanding Employerwow.liepin.com
Diverse and Inclusive WorkplaceDahua strictly adheres to laws and regulations, such as theLabor Law of the People's Republic of Chinaand theLabor Contract Law of the People's Republicof China. Our recruitment practices are guided by principles of openness, transparency, scienti?c rigor, standardization, and procedural e?ciency. We activelyseek external talent while ensuring that our employment practices are both legal and compliant, thus fortifying our business development initiatives. As of theend of the Reporting Period, the employment situation is as follows:
The number of employees by genderThe number of employees by ageIn 2023, Dahua received the following major employer-relatedawards：
Number of employeesworldwide:
23,452
As of the end of the Reporting Period, the percentage of workforcecovered by Dahua Labor Union is
%
Providing employmentopportunities for
persons with disabilities
malefemaleunknown
below 3030 to 50above 50
17,62312,8175,788
10,475
Due to privacy protection policy requirements in some overseas operating locations, gender information for some employees has not been disclosed.
Employee Growth and DevelopmentDahua consistently upholds the concept of "Empowering Customers, Empowering Strivers." Through the establishment of a scientific performancemanagement system, dual-channel career development paths, and comprehensive talent training and development programs, the Company o?ers employeesa fair, diverse, and expansive platform for personal and professional growth.
Dahua is dedicated to upholding principles of fairness, transparency, impartiality, scienti?c rigor, and clarity. To ensure e?ective performance management,the Company has implemented a comprehensive system encompassing goal setting, process guidance, performance evaluation, application of assessmentresults, and performance improvement measures. We have developedPerformance Management Measuresand conduct annual performance evaluationsand feedback sessions for all employees. Based on these evaluations, we provide opportunities for promotions and salary adjustments. Furthermore, we haveintegrated indicators related to environmental protection, occupational health and safety, and sustainability into the employee performance appraisal system,thereby consistently enhancing both employee and Company sustainability performance.
Performance Management
Companyobjective KeyPerformanceIndicator (KPI)
Company Strategy Map
Company quantitative KPI(Finance+Operation+Customer)
Department quantitative KPI(Finance+Operation+Customer)
KPI+ Personal performancecontribution
PersonnelManagementGoal
Individualdevelopmentobjective
Corporate strategic initiativesbreakdown (strategic events)+
+
OrganizationPerformance
IndividualPerformance
BreakdownBreakdown
BreakdownBreakdownBreakdown
UndertakeUndertake
UndertakeUndertakeDepartment strategic initiativesbreakdown (strategic events)
Performance breakdown process
Company level
Operational business level
Sta? level
Department objective
KPI
Sta? objectiveKPI
1.1
2.1
1.2
2.2
3.2 3.33.1
FinancialPersonnel
OperationCustomer
To ensure that employees have access to better career developmentopportunities, we have implemented a dual-channel mechanism forboth professional and managerial growth. This framework is tailored toindividual job characteristics, career interests, and employee capabilities.We have developed corresponding job standards and learning resourcesfor each of these development channels, aimed at better supportingemployee skill enhancement initiatives.
Employee Career Development Channel
Dahua actively engages in campus recruitment programs andhas established the Top Talents Program for doctoral candidates,the Starburst Program for high-potential fresh graduates, andthe Starforce (Global Campus Recruitment). Through theseprograms, we ensure the establishment of a stable talentpipeline. Embracing the concept of "learning by doing andapplying what you learn," we have designed customized trainingpaths for campus recruits and provide resources such as newemployee mentors and systematic quality courses to help theseemployees grow rapidly.In addition, to attract more young talents, the Company establishedthe Dahua Scholarship in many universities and organized a seriesof activities themed Coming from Campus and Going to Campus,including Open Day events, University- Enterprise Forums, andAlumni and Experts into Campus.
To help employees find more suitable career developmentpaths, Dahua has established the Dandelion Plan and theDynamic Water Plan, which inspire employees to unleash theirfull potential.
Dandelion Plan: Establishing a pathway for R&D talents to
adapt to the market, providing excellent core technical talentswith broader development opportunities and more robustmechanism support.Dynamic Water Plan: Encouraging the orderly ?ow of technical
and marketing talents to develop an internal talent pool.The Company provides sustainable development possibilities andopportunities for employees on the basis of their abilities shown throughjob performance, in the form of organizational nomination, competitiverecruitment, internal recruitment, and various resource pools.
Aligned with our overall business goals and strategic planning, we havedevised organizational objectives spanning dimensions such as finance,customer satisfaction, internal operations, and learning and growth. Theseobjectives are passed down to departments, teams, and individuals,forming a goal-oriented performance management framework.At Dahua, each employee collaborates with their manager to establishindividual performance goals. Leveraging key KPI commitments, personalperformance contributions, personnel management objectives, and skillsenhancement plans, we objectively assess, systematically track, andcollectively enhance employee performance. We utilize both absoluteand relative evaluations to gauge the actual attainment of individualperformance objectives. Absolute evaluation involves direct supervisorsand project managers assigning scores to individuals. Drawing from theseabsolute evaluations, we compare and rank employees in similar positionsand ranks, ultimately determining performance levels to further inspireemployees and bolster their work enthusiasm.
Employee Career Development Channel
Management channel
Professional technologychannelSenior manager
Junior sta?Beginner
Senior expertMiddle and senior managersExpertsJunior and middle managersBackbone sta?
Graduate Development Program
Internal Recruitment Program
General skills trainingFor all employees, we conduct skill training courses oncultural values, o?ce software applications, workplacecommunication, and other relevant skills to lay afoundation for their career.
Leadership trainingFor di?erent employee groups, we provide managementand leadership training through various programs suchas new employee training, youth training systems,and business management training. These initiativesstrengthen talent pool development by o?ering trainingin management capabilities and leadership skills toemployees at various stages of their careers.
Professional skills training
For all employees, customized training plans areestablished based on job requirements to supportemployees in acquiring the knowledge and skillsnecessary for their roles, enabling them to achievesubstantial development.
Professional quali?cation training
Dahua encourages all employees to pursue academicadvancement and professional qualifications.During the Reporting Period, we actively promotedthe certification and evaluation of mid-to-seniorprofessional titles. Around 600 employees completedthe professional title application process, with over60% of them undergoing evaluation for senior engineertitles.
Employee TrainingDahua remains committed to fostering a learning culture characterizedby "empowering excellence with excellence and replicating success withsuccess." Through a training mechanism that combines various methodssuch as learning, training, practical application, and assessment, we aimto develop employees' capabilities across multiple dimensions, therebyenriching their overall experience. During the Reporting Period:
We have also established a comprehensive training system based on job role models, o?ering various training courses to continuously enhance employees'professional skills and work ethics.
In addition, we have established the Dahua Global Training Center and significantly upgraded training facilities and hardware/software infrastructure.Leveraging innovative platforms such as the Dahua E-learning platform, Dahua Training Live-room, Smart Classroom, and others, we cater to both online ando?ine multifunctional training needs, thus enhancing training e?ectiveness and instructional e?ciency.
training sessions have beenconducted
A total of4,635
Total investment in employeetrainingRMB
4.108
million
Our employees spent a total of
659,491hours
in training
Employee Compensation and Bene?tsDahua o?ers competitive salaries and a comprehensive bene?ts system to its employees, aiming to motivate them to grow alongside the Company, and continuously enhancing their sense of belonging and satisfaction.
Dahua adheres to the principle of equal pay for equal work and routinelyreviews and analyzes the Company's salary levels. We conduct annualsalary adjustments to safeguard employee rights while ensuring theCompany's competitiveness within the industry.We have established a salary structure comprising fixed and variablecomponents. Additionally, we have implemented a performance bonusincentive mechanism covering all employees. This mechanism tiesemployee variable pay to work performance and individual performanceevaluations, enabling employees who contribute to the Company's growthto partake in its success.We advocate for a "striver-orientation" approach and, alongsideperformance bonus incentives, we have introduced a long-term incentiveplan encompassing stock options, restricted stock awards, and innovativebusiness follow-on investment plans for all employees. This comprehensivestructure integrates short-term incentives with long-term rewards,offering robust talent support for the Company's sustained and steadydevelopment. We have implemented the2022 Stock Option and RestrictedStock Incentive Plan, with over 4,000 individuals receiving incentives by theend of the Reporting Period.
Dahua is committed to providing comprehensive benefits for its employees. Considering the diverse customs, practices, legal requirements, andemployee needs across our global operational locations, we have implemented non-monetary bene?t programs that encompass all employees. Theseinitiatives are designed to enhance employees' sense of belonging and well-being.
Employee Bene?tsEmployee Compensation
Health support
Public holidays,
rest days, sickleave, wedding orbereavement leave,maternity leave,paternity leave,breastfeeding breaks,annual leave, etc.Basic endowment
insurance, medicalinsurance,unemploymentinsurance, work injuryinsurance, maternityinsurance, and housingprovident fund
Supplementary medical
insurance Health check-ups Fitness facilitiesEAP (Employee
Assistance Program)
mental health
counseling
Interest-free loan for
house purchaseMeal allowance, high
temperature allowance,
communication
allowance, travel fundPoints and discounts
shopping
Extended maternity
leave and extendednursing leave Parental leaveCaregiver leave for
parents Mother and baby room
Additional annual leaveAfternoon tea and
supper Hobby clubs Holiday and team-
building activities
Monetarysupport
Work-lifebalanceFamily supportLegal bene?ts
Employee Engagement
Dahua promotes an open and inclusive corporate culture. Every year, we conduct surveys onemployee engagement to gain a comprehensive understanding of employees' expectations andneeds regarding job content, salary, career development opportunities, work-life balance, andother aspects. During the Reporting Period, we organized an annual engagement survey, collectinga total of 12,746 questionnaire responses, resulting in an overall employee engagement rate of82%. To address feedback from the survey, we have implemented policy optimizations, upgradedbene?t systems, and made improvements to provide employees with a higher quality and moreful?lling work experience.
In-the-park kindergarten
The overall employeeengagement rate is
%
Dahua provides comprehensive health services for employees, includingannual physical examinations, lectures on interpreting examination reports,and monthly traditional Chinese medicine consultations. Additionally, weplace a strong emphasis on employees' mental health by establishing the"Legal Aid Home" and providing EAP mental health counseling to helpemployees relieve stress and address emotional issues.Furthermore, we continue to upgrade our hardware facilities and haveestablished a physiotherapy room, gymnasium, badminton hall, basketballhall, and other sports and leisure facilities in the Company's headquarter.These initiatives enable employees to strike a balance between life and work.
Dahua cares for and supports employees' families by providing extended maternity leave, breastfeeding breaks, nursingleave, parental leave, and caregiver leave on top of statutory allowances. These measures enable employees to care forand be present with their parents and children during signi?cant family moments. Additionally, we regularly organizefamily days, Children's Day carnivals, autumn hiking events, and other family activities to foster a family-friendly workenvironment.To achieve the goal of "friendly environments, friendly courses, friendly services, and friendly mechanisms", the Companybuilt the in-the-park kindergarten, which provides convenience for employee childcare and education, ensuring aconducive environment for the growth of employees' children.
Employee health servicesFamily care services
Badminton hall
Gymnasium
Family Day
Employee Health and Safety
Safety Management System
Occupational Health Management
Dahua adheres to the "safety first" policy, continuously enhancing worksafety management. We actively participate in various safety cultureactivities to foster a positive safety culture atmosphere, prioritizing thehealth and safety of our employees. This commitment ensures the stableand orderly operation of the Company.
Dahua strictly complies with theWork Safety Law of the People's Republicof China, theLaw of the People's Republic of China on the Preventionand Treatment of Occupational Diseases, and other laws and regulations.We have formulated a comprehensive safety management system andobtained the certification of ISO 45001 Occupational Health and SafetyManagement System.Our safety management framework is well-established. The SafetyProduction Committee serves as the highest safety management bodywithin the Company, responsible for coordinating and making decisionson safety-related matters. The committee is chaired by a senior vicepresident of the Company, with members comprising heads of variousprimary departments. Each primary department has secondary safetymanagement groups tasked with implementing safety and occupationalhealth requirements in their respective business areas, in alignment withthe Company's overall safety plan.We consistently prioritize compliance. Conducting annual EHS systemreviews and quarterly safety inspections, we uphold standardized safetyproduction and graded safety risk management requirements. During theReporting Period, we conducted special safety hazard inspections for gas,?re prevention, hazardous chemicals, laboratories, etc., and issued detailedinspection analysis reports. All identi?ed hazards were promptly recti?ed,bolstering our safety defenses.
We focus on employee health and carry out occupational health management work from multipledimensions, serving as guardians of employee health.
Occupational hazard identi?cationOccupational health noti?cationOccupational health recordsConducting occupational hazardidenti?cation work in accordance withlegal regulations and system standardsrequirements;Regularly commissioning third-party agencies to conduct testing onoccupational hazard factors.
Providing safety education andoperational guidance for employeesexposed to occupational hazard factors;Providing relevant employees withpersonal protective equipment;Posting occupational hazard andsafety noti?cation cards at productionsites to communicate protection andemergency response requirements.
Organizing regular occupational healthchecks;Establishing and improving employees'occupational health records;Continuously monitoring policyand societal trends, enhancing theconstruction of a safe and healthy workenvironment.
During the Reporting Period, there isno occupational diseasein the Company
Safety Culture Construction
We prioritize employee safety education, consistently advancing safety awareness to fortify the foundation of our safety culture. This ensures enduring and stable security for the Company's business operations.During the Reporting Period, we organized a range of safety culture activities, including Work Safety Month, safety business capability training, emergency drills, and more. These initiatives cultivate anenvironment where every individual learns safety knowledge and enhances safety awareness.
Work Safety MonthComprehensive emergency drills
We conducted Work Safety Month with the theme"Everyone knows about safety, and everyone isprepared for emergencies." Through specializedtraining, safety knowledge competitions, distributionof safety manuals, and other engaging forms, we helpemployees integrate safety awareness into their dailywork and lives, fostering good safety habits.During these activities, we organized special safetytraining sessions on safety laws and regulations,accident case analysis, ?re safety, hazardous operationcontrol, emergency response, and more. These sessionsreached a total of 7,509 participants.
To optimize the Company's emergency responsemechanism, we annually formulate an emergency drillplan based on production risk types and characteristics.We then refine the Company's safety risk emergencyplans according to the results of the drills.During the Reporting Period, we conducted fire drillsand gas leak emergency evacuation drills coveringall employees at our offices and production bases.These exercises aim to enhance employees' handlingcapabilities when it comes to accidents or emergencies.
These sessions reached a total of
7,509participants
Six Sigma training campsCreating Customer Value
Dahua upholds the core values of "Empowering Customers, Empowering Strivers," and remains dedicated to our mission of "Makingsociety smarter, making life better." Through the provision of outstanding products and services, we strive to create additional value for ourcustomers.
Dahua has implemented a comprehensive whole -process quality management system, which encompasses ?ve core processes (LTC, IPD,ISC, ISD, and ITR) as well as other supporting processes. The Company's Quality Management Center is responsible for managing qualityacross the organization, integrating quality requirements and standards into various business processes and management practices. Weconsistently strive to optimize the quality of our R&D, manufacturing, supply chain, and delivery processes, with the aim of enhancingcustomer satisfaction. Dahua has obtained ISO 9001 Quality Management System certi?cation.
We utilize a training and practicing model to conduct
Six Sigma Green Belt and Six Sigma Yellow Belt training
camps with the goal of achieving "zero defects."
By continuously improving quality management
techniques, we aim to drive an increase in quality levels.
During the Reporting Period, a total of 48 employees
received Six Sigma Green Belt certification, while 12
employees received Six Sigma Yellow Belt certi?cation.
Among the 52 projects that passed the ?nal defense, it
is anticipated that they will generate ?nancial bene?ts
exceeding RMB83 million for the Company.
During the Reporting Period, Dahua's commitment to excellencein products and services was recognized by the China QualityInspection Association, which honored us as a "NationalDemonstration Enterprise for Product and Service QualityIntegrity." Moreover, in the Asia Quality Improvement Competitionhosted by the Asia Quality Function Deployment and InnovationCommittee, all three of our participating projects emerged asfrontrunners, underscoring our exceptional achievements in therealms of quality and innovation.
Ensuring Product QualityQuality System
Building upon a comprehensive end-to-end system and full-process business digitalization, we continuously re?ne our digital managementpractices to elevate our quality management standards. During the Reporting Period, we developed a quality data analysis model thatintegrates data from various sources including R&D, supply chain, delivery, and marketing systems. Through precise digital analysis, wedrive enhancements in quality across R&D, product lines, and the supply chain.Meanwhile, we place a high emphasis on quality culture. Guided by our quality policy of "actively listening to customer feedback,meticulously constructing product quality, sincerely providing satisfactory service, and continuously creating customer value," we havecultivated an organizational atmosphere of "whole-staff participation and continuous improvement." During the Reporting Period, weorganized various quality improvement and training programs such as Quality Training Camps, Six Sigma Training Camps, and QualityEnhancement Seasons. These initiatives aim to further instill a culture of quality excellence among all employees.
Quality Actions
It is anticipated that they will generate ?nancial bene?ts
exceeding
for the Company
RMB
millionQuality Management Center
QualityOperations
SystemCerti?cation
QualityImprovement
SafetyManagement
R&D Quality
Supply ChainQuality
Delivery andService Quality
Upgrading Service Quality
Service SystemDahua adheres to the philosophy of "Empowering Customers" andhas established four major service systems consisting of an integrateddelivery system, technical support system, operation and maintenancemanagement system, and training and certification system. We arecommitted to building a world-class professional delivery platform withservice networks spanning 180 countries. Our goal is to provide customerswith services covering the full lifecycle of products and solutions, strivingto become superb service value creator.
We highly value customer feedback and strictly adhere to internal management systems such as theCustomer Complaint Handling Processand theMajor Incident Response Mechanismto standardize the entire process of customercomplaint handling and continuously optimize our after-sales service.
With a comprehensive service system and outstanding service capabilities, Dahua has obtained the five-star certification in GB/T 27922-2021EvaluationSystem for After-sales Service of Commodities.
Multiple customer communication channelsCustomer Complaint Classi?cation and Grading Closed-Loop Handling of Customer Complaints
Setting a 24/7 service hotline, WeChat o?cial account, WeChat
mini-program, service email, and other communicationchannels to ensure that customer opinions and suggestionsare promptly addressed.
Based on the content of the complaints, categorize them into
types such as product-related, service-related, pricing-related,and business-related. Standardize the handling processes foreach type accordingly.Based on the impact of complaints on customers and companyoperations, categorize complaints into Level 1 - General issues,Level 2 - Serious problems, and Level 3 - Critical issues. Implementtargeted actions such as quick resolution, comprehensiveanalysis, root cause analysis, etc., for each level.
After the call center receives complaints, the complaint
engineer should respond to the issue within 30 minutes andprovide feedback to the relevant department.The receiving department should respond within 2 hours,
provide an initial solution within 24 hours, and close the loopwithin 3 working days.The ITR dispatch system continuously monitors dispatching,
response times, order acceptance, progress updates, customersatisfaction surveys, and other processes to ensure thatcustomer complaints are e?ectively addressed.
Integrated DeliveryTechnical supportO&M managementTraining and certi?cation
Cooperation environmentService organization construction
Network layoutCompetence
standards
Servicesupervisionframework
design
Trainingcerti?cation
Consultation and designProblem solvingO&M solutionsTraining managementPlan managementTroubleshootingRouting inspection foroperation and maintenanceUniversity-enterprisecooperationIntegrated managementTechnical supportMajor incident coverageCerti?cation managementQuality controlSpare partsFault handlingClient trainingOperation managementCustomer careIncident responseTalent developmentResource management
Provincial and municipal
organizations
Regionalorganizations
SchedulingoperationNationalorganizations
Headquartersorganizations
Service CapabilitiesCustomer Satisfaction
As the Company's business continues to grow, the demand forcustomer service is on the rise. We prioritize the enhancementof service quality and the development of service capabilities.Investments are consistently made in upgrading serviceplatforms, developing technical tools, training service personnel,and ensuring prompt and e?ective responses to customer serviceneeds.During the Reporting Period, we successfully completed acomprehensive upgrade of the Global After-Sales Service System(GASP). This upgrade introduced features such as automaticspare parts forecasting, intelligent fault detection in repairs,and intelligent allocation of repair work orders. As a result, weachieved online visualization, standardization, and intelligentmanagement of the entire customer repair process, therebyenhancing customer service efficiency. Additionally, for ouroverseas clients, we launched an online robot that provides 24-hour service, featuring intelligent keyword association, smartrecommendations for common issues, detailed data analysis, andmore. This initiative e?ciently addresses customer problems andsupports rapid market and customer expansion.At the same time, we conduct specialized training programs toenhance the capabilities of internal service teams, ecosystempartners, and other key groups. These efforts strengthen ourprofessional service building, ultimately leading to enhancedcustomer satisfaction.
Dahua places a strong emphasis on ensuring customer satisfactionacross all business processes. We have formulated theCustomerSatisfaction Survey Methodsand established a CustomerSatisfaction and Issue Management Committee. In alignment withour commitment to enhancing customer satisfaction throughoutour entire business process, we conduct annual customersatisfaction surveys to cater to di?erent customer groups.During the Reporting Period, to further enhance the e?ectivenessof our customer satisfaction initiatives, we conducted a thoroughreview of the customer satisfaction survey questionnaire designand indicator system. We designed tailored questionnaire contentfor di?erent business models and customer types. Subsequent tothe collection of survey results, we conducted multidimensionaldata analysis to generate a comprehensive customer satisfactionsurvey report. We included key factors influencing customersatisfaction in priority action items, with improvement measuresidentified and monitored for progress, and implemented tocontinually enhance the customer experience.
Empowerment of distributors
Dahua upholds the concept of "joint construction andsharing" and grows hand in hand with our distributors.We have established a comprehensive distributorempowerment mechanism, providing distributors withrich training programs such as o?ine training sessions,high-quality online courses, service provider days, etc.,covering customer management, product presentations,warehouse logistics, e-commerce operations, and more.This all-encompassing approach aims to enhance thecapabilities of our distributors.During the Reporting Period we organized a competitionwhere distributors engaged in activities such as onlinelearning challenges, knowledge quizzes, productsolution debates, and practical delivery competitions.Through these various forms, we promoted distributors'understanding of our products and solutions, supportedthe development of our partners' businesses, andsimultaneously increased end-user satisfaction.
Promoting R&D Innovation
R&D Innovation System
Dahua consistently harnesses technological innovation as a strategic cornerstone for high-quality development. With our headquarters in Hangzhou as the primary hub, we have established R&D centers in Xi'an,Chengdu, Poland, and Mexico to bolster our global R&D capabilities. We remain committed to driving innovation through industry operations, continually enhancing our technological innovation capabilities tointroduce new technologies, products, and momentum for industrial development. Our unwavering dedication is aimed at contributing to the construction of a safer, smarter, more harmonious, and inclusivesociety.
Building upon the Dahua Think#2.0 strategy, we have establisheda comprehensive and e?cient R&D innovation system. Adheringto the AIoT and IoT digital intelligent platforms as our two majortechnology strategies, we rely on five research institutes—Advanced Technology, Big Data, Central Research, Cyber Security,and Future Communications—as foundational support. Wecontinuously enhance our autonomous innovation capabilitiesand competitive advantages in core technologies such as arti?cialintelligence, AIoT, big data, software, and more. This focusedapproach enables us to create greater value for our customers.
Five Research Institutes
AdvancedTechnology Institute
Cyber SecurityInstitute
Future CommunicationInstituteBig DataInstitute
Central ResearchInstitute
Global Leading AITechnology Researchand Industrialization
Core AI Capabilities
Cloud-OriginalTechnologies
FoundationalEngineeringTechnologies
Key Research onSecurity and PrivacyTechnologies
NetworkConnectivityTechnologiesAI Scenario-basedand IndustrializationCapabilities
Large-Scale StorageTechnologies
Internet of Things(IoT) Technologies
Security EngineeringBuilding Capabilities
Data ExchangeTechnologiesAI InfrastructureSupportCapabilities
Big Data Platformsand DataIntelligence
Incubation ofCutting-EdgeTechnologies
Security EmergencyResponse Center
Cutting-EdgeNetworkingTechnologies
Research on Cloudand Big DataTechnologies
Research on BasicSoftware and HardwareTechnologies andEmerging Technologies
Research onSecurity and PrivacyTechnologies andSecurity EngineeringCapabilities
Research on NetworkSwitching Technologiesand InformationEnhanced TransmissionTechnologies
R&D Center Innovation Conference
Signing a strategic cooperation agreement with South-Central Minzu University
Innovative Talent StrategyIndustry-Academia-Research Exchange and CollaborationWe are committed to fostering a diverse and innovative cultural atmosphere,nurturing R&D teams that are eager to push boundaries. Over the years, wehave conducted leadership programs that focus on breakthroughs in coretechnologies across various industries and domains. These programs aredesigned to fortify our expert team and bolster the Company's R&D innovationcapabilities, enhancing our competitiveness within the industry. Additionally,we foster a culture of continuous innovation among our employees byimplementing a multi-dimensional, multi-level innovation incentive policy.This policy ignites creative energy among our talented workforce, ensuringrobust talent support for high-quality development initiatives.
During the Reporting Period, we organized the fourth R&DCenter Innovation Conference. This event aimed to select andrecognize signi?cant innovative achievements that have madevaluable contributions, lead in key technological areas, and havenotable impacts. The conference encouraged all R&D personnelto actively embrace challenges, innovate enthusiastically, andfoster a culture of innovation among all team members.
In 2023, the Company signed a strategic cooperation agreement with South-Central Minzu University. The collaboration focuseson various aspects such as jointly building talent development bases, scienti?c research, research outcome commercialization,and social services. This aims to promote the integration of talent, education, industry, and innovation chains, creating a newparadigm of industry-education integration. Additionally, the Company established a college-level "Professional Master's DegreeJoint Training Base" with Zhejiang University to facilitate the deep integration of talent development in higher education andindustrial development.
With outstanding R&D capabilities and a team of innovative talents, Dahuawon the ?rst prize in the National China Innovation Methods Competition,and the first prize in the Zhejiang Region of China Innovation MethodsCompetition for seven consecutive years.
The signing ceremony of the strategic cooperation agreement between Dahua and
South-Central Minzu University
For many years, Dahua has been actively engaged in university-enterprisecooperation. Through partnerships with several universities, we haveestablished industry-education integration communities and achievedsignificant advancements in areas such as the Internet of Things, bigdata, artificial intelligence, and new materials. In 2023, we continue toleverage our existing strengths by engaging in exchange and collaborationwith renowned institutions across various fields to collectively drivetechnological innovation.
2022 Innovative Engineering Ph.D. Students Leadership Study Tour of the Engineering College in
Zhejiang University - Enter Dahua
Dahua has been nominated for the Zhejiang Science and Technology Progress Award2022 Innovative Engineering Ph.D. Students Leadership Study Tour of theEngineering College in Zhejiang UniversityDahua collaborated with ZhejiangUniversity to organize the activity of"2022 Innovative Engineering Ph.D.Students Leadership Study Tour ofthe Engineering College in ZhejiangUniversity - Enter Dahua". This activityincluded three parts: exhibitionhall tours, company presentations,and themed discussions. It showedDahua's commitment and achieve-ments in exploring the path of uni-versity-enterprise cooperation andindustry-education integration.
Dahua won the second prize of the Zhejiang Science and Technology Progress Award for its "Key
Technology of High-Speed and Large-Scale Visual Computing Engine."
This project, based on several national key R&D projects, Zhejiang Provincial Department of Science
and Technology public welfare projects, and Zhejiang Provincial Natural Science Foundation key
projects, conducted research in collaboration with China Jiliang University, Zhejiang Gongshang
University, Zhejiang University, and other universities. The research focused on addressing
internationally recognized challenges in intelligent visual computing in complex environments. It
broke through technological bottlenecks such as ultra-high-speed comparison of visual content
combining software and hardware, cross-scenario multi-angle object detection and tracking, and
real-time delivery of massive perceptual events. This achievement truly maximized the value of
industry-academia integration.
In addition, Dahua participated in projects such as "Key Technologies and Platform Applications
for Automatically Developing Vision Algorithms for Heterogeneous Hardware," "Research and
Application of Key Technologies for Cross-Domain Intelligent Detection and Tracking of Multiple
Targets in Complex Environments," and "Technology and Industrialization Application of
Microdefect Detection in Large-Caliber Optical Elements". These projects all won the first prize of
the Zhejiang Science and Technology Progress Award.
Responsible Supply Chain
A stable and robust supply chain serves as a crucial foundationfor ensuring product and service quality. Dahua consistentlyupholds the principles of "win-win cooperation, transparency,and compliance," continuously re?ning its supplier managementsystem, and collaborating closely with suppliers to cultivate aresponsible supply chain.
Dahua maintains stringent oversight over supplier admission andconducts regular evaluations and audits of suppliers. We haveestablished internal processes such as theSupplier AdmissionManagement Process,theSupplier Performance ManagementProcess, and theSupplier Resource Deployment ManagementProcess to cover the entire lifecycle of supplier management.
We have established diverse channels for supplier self-recommendation, including the Company's public account and procurementwebsite. We conduct multidimensional evaluations of potential suppliers, assessing their management, technology, environmentalpractices, and social impact. This approach enables us to select high-quality supplier resources and improve our ecosystem cooperationprocess. Through initial reviews, sample testing, on-site audits, and other steps, we identify suppliers that meet our requirements andinclude them in the Company's quali?ed supplier database. Utilizing a one-stop supplier management platform, we consistently reinforcee?cient and transparent control over supplier admissions.
We classify quali?ed suppliers into four categories based on material category, technical di?culty, and materiality to business: strategicsuppliers, key suppliers, bottleneck suppliers, and general suppliers. We then implement di?erent management strategies based on theclassi?cation to enhance management e?ciency.
Supplier Management
Supplier Admission
Supplier admission process
To further enhance the supplier management system, we conduct comprehensive assessments of suppliers based on theSupplier PerformanceManagement Process. We establish supplier grading management rules to continuously improve the level of the supply chain.We conduct monthly performance evaluations of suppliers, focusing on aspects such as compliance, supply quality, service capability, anddelivery performance. Based on the evaluation results, we categorize suppliers into A, B, C, or D levels, and implement corresponding incentives,corrective actions, or elimination measures. Dahua publishes assessment results through the supplier management platform to promote a fairand transparent competitive environment. Additionally, we conduct on-site assessments and spot checks of suppliers according to annual plansto promptly identify supply chain risks and ensure the sustainability of production operations.
Supplier Evaluation
Supplier self-recommendation
become a potential supplier
Signing of supplier agreementsEntry into the quali?edsupplier database.Initial reviewSample testing
On-site audit
Supplier Admission Management ProcessSupplier Performance Management ProcessSupplier Resource Deployment Management Process
...
StrategicsuppliersKeysuppliers
Enhancemanagemente?ciency
BottlenecksuppliersGeneralsuppliersDi?erent management strategies
Supplier quality training
We highly value our suppliers and aim to establish long-term, stable partnerships with each supplier. In response to feedback received during daily supplier communication and evaluations, we empowersuppliers through training, support, exchange meetings, and various other means to continuously improve their capabilities.
The quality of our suppliers is crucial for the quality of our products and services. Each year, based on the operational needs of the Company and any exceptional issues with suppliers, we develop asupplier quality training plan that covers comprehensive quality management, lean production, performance management, and other aspects. During the Reporting Period, we conducted specializedempowerment training on the theme of "Innovation and E?ciency" for 48 key suppliers to continually enhance their quality management capabilities.
Supplier Empowerment
Comprehensive quality management
Lean productionPerformance management
...
Empower suppliers
Exchange meetingsSupportTraining
Speci?c training for supplier quality improvement
Sustainable Supply Chain
Dahua is committed to building a sustainable supply chain. We adhere to environmental, social, and governance standards to screen and evaluate suppliers, enhancing supplier awareness andmanagement capabilities in areas such as anti-corruption, environmental protection, and labor rights protection.
With a comprehensive supplier management system and supply chain security system in place, we have obtained ISO 28000 certi?cation for the supply chain security management system.
Environmental standardSocial standardGovernance standard
We put forward environmental protection requirements to
suppliers, including eco-friendly design, resource conservation,hazardous substance control, and greenhouse gas emissionmanagement. We sign the Environmental Commitment Letterwith all suppliers,requiring them to comply with ISO 14001 environmentalmanagement system requirements. All materials, includingprocess production, must strictly adhere to the RoHS 2.0standard. For suppliers that do not meet environmentalrequirements, we set red lines.We adhere to green selection, where suppliers must provide
environmental information for materials, which undergoes aspecialized environmental audit by Dahua.
We require suppliers to adhere to social responsibility standards,
including labor standards, health and safety regulations, qualitymanagement, and responsible mineral management.We sign theSupplier Social Responsibility Agreement
and theQuality Assurance Agreementwith all suppliers,requiring them to establish and comply with the ISO 45001Occupational Health and Safety Management System and theISO 9001 Quality Management System, committing to ful?llingsocial responsibilities.
We o?er business ethics requirements for suppliers, including
integrity in operations, anti-corruption, whistleblowerprotection, intellectual property rights, and privacy protection.We sign theSupplier Compliance Commitment Letterand theIntegrity Commitment Letterwith all suppliers, requiring themto uphold a fair, open, and transparent business environment.We conduct regular supply chain business ethics audits and
training to strengthen ethical awareness, ensuring clean ande?cient supply chain management.
Responsible Mineral ManagementDahua Technology adheres to responsible procurement practices, continuously driving the sustainable development of the industry chain. Following the framework process outlined in theDue DiligenceGuidance for Responsible Supply Chains of Minerals from Con?ict-A?ected and High-Risk Areasissued by the Organization for Economic Cooperation and Development (OECD), we have developed aResponsible Mineral Procurement Policy. We have established a control system for con?ict minerals, encompassing tin, tungsten, tantalum, gold, cobalt mineral resources, and their products. Leveragingresources such as the Responsible Minerals Initiative, we encourage suppliers to procure and utilize non-con?ict minerals, jointly ful?lling social responsibility.
During the Reporting Period, Dahua conducted con?ict minerals due diligence with a total of 100 suppliers, and the response rate from suppliers was 100%. Dahua did not experience any violations due to con?ict minerals.
In order to cope with possible con?ict minerals risks, Dahua has de?ned the responsible team and formulated the corresponding emergency plan, clari?ed the response mechanism and processingprocedures for con?ict minerals-related issues.
Supplier importreview
The management and control of con?ict minerals is listed in theSupplier Approval Management Process as one of the baselines for supplier admission;All production suppliers are required to sign and comply with theDeclaration of Con?ict-Free Mineralsto ensure that the products provided to Dahua and its a?liates do notcontain con?ict minerals or metals.Due diligence forthe supply chain
Dahua conducts due diligence on con?ict minerals in the supply chain through the supplier portal periodically, and requires its suppliers to e?ectively disclose the relevant
information of the country of origin of the minerals, smelters and re?neries used and their downstream supply chains according to the report template of the ResponsibleMinerals Initiative: Con?ict Minerals (Cobalt) Questionnaire (CRT) and Con?ict Minerals (Gold, Tantalum, Tungsten, Tin) Questionnaire (CMRT).Dahua further improves the understanding of regulations on con?ict minerals through training and promotion of the supply chain, assist suppliers in completing Dahua's due
diligence on con?ict minerals quickly, and support the formulation of suppliers' internal con?ict-free mineral procurement policies, carry out sub-level due diligence plans.Regular supplierreview
Dahua conducts regular supplier reviews. If the information provided by the supplier can't be veri?ed or the supplier fails to take e?ective measures to comply with Dahua's
policies related to con?ict minerals, Dahua reserves the right to terminate the cooperation with the supplier.
Risk warning in advanceEmergency settlement in the middle of an eventSummary and improvement afterwards
Interpret relevant regulations on con?ict mineralsfor each supplier in advance, and publicize theimpacts of using con?ict minerals. If a supplier isfound to have illegal use, immediately carry outthe suspension investigation of its products andidentify and warn early potential risks resulted.
Stop using current materials of non-compliant
suppliers, make rectifications, and adjust thequota of its new products;The illegal products shall be destroyed from
the market and replaced by reliable products;In case of serious impacts on the Company or
customers, suppliers should be held legally
accountable.
We diligently assess and enhance our business
processes, taking swift action upon discoveringany violations. This includes revising productdesign standards or supplier managementregulations to ensure appropriate resolution ofincidents. Our objective is to cultivate an ethicalsupply chain ecosystem that abstains fromutilizing conflict minerals and mitigates risksassociated with material sourcing and supplierpartnerships.
Building Industrial Ecosystem
Eco-development is a pivotal strategic initiative for Dahua. With ecology at its core, we are advancing ecosystem development at full throttle, leveraging ecological prowess to achieve collective progress. The year2023 marks the "?rst year of the ecosystem" for Dahua, during which we collaborated closely with our partners to establish an ecosystem characterized by co-construction, win-win cooperation, and coexistence.Our aim is to cultivate an ecological community of intelligent IoT. In the future, building upon the advantages of digital and intelligent eco-development, Dahua remains steadfast in enhancing capabilities suchas market expansion, resource investment, and channel diversi?cation. Through these e?orts, along with other key initiatives and services, we are committed to creating value and fostering mutually bene?cialdevelopment with our partners. Together, we embark on a new journey of digital and intelligent development.
Adhering to the concept of "Full Ecosystem," Dahua has prioritized the realization of customer value. We have established a comprehensive opening capability spanning technology, business, and service domains.By collaborating with ecosystem partners, we are forging new pathways, shaping fresh dynamics, and unlocking boundless possibilities for industrial development. Our goal is to empower digital intelligenceacross a myriad of industries. In fostering the prosperous development of business ecology, Dahua endeavors to create scenario-based application paradigms tailored to various industries and sectors. Drawingfrom our profound understanding of urban and enterprise business scenarios, we are poised to deliver tailored solutions that meet the unique needs of each industry.
Ecological co-construction, development and co-creation, jointly open up a new journey
Achieve collective progress.Everagingecological
prowessadvancingecosystemdevelopment atfull throttle
In the field of intelligent transportation, we address the public's significant concernsregarding tra?c congestion and parking challenges by collaborating with our partners.Together, we explore technological applications including traffic signal optimization,intelligent holographic intersections, intelligent green bands, and green parkingsolutions. These innovations aim to o?er smarter tra?c management solutions for tra?ccontrol departments, ultimately enhancing the e?ciency of tra?c management for theconvenience of public travel.In the field of intelligent buildings, we collaborate with our partners to cater to numerouscommunities, parks, and complexes. Through automated sensing, ubiquitous connectivity,timely transmission, and information integration, we are pioneering a comprehensiveintelligent solution that spans the entirety of a building's lifecycle. Our objective is toachieve a built environment that is safe, reliable, green, ecological, e?cient, convenient,and economically viable. By doing so, we aim to reduce costs and enhance e?ciency forenterprises.
In the ?eld of intelligent energy, we have collaborated with enterprises such as SUPCONto delve deeply into the capabilities and scenarios of video IoT. Together, we assistenterprises in sectors including electric power, coal, iron and steel, and petrochemicals tooptimize their safety systems. Through the integration of AI, we safeguard the well-beingof personnel, equipment, and the environment, while also fostering a smarter and moree?cient mode of production and management. This initiative serves as a safeguard forenterprises and enhances production e?ciency.In the ?eld of smart agriculture, we leverage the high-quality capabilities of our partnersto deliver comprehensive digitalization services across various agricultural productionscenarios. These services encompass intelligent collection of environmental data,visualization and supervision of growth processes, livestreaming of agricultural products,AI-based smart counting, digital cockpit management, and more. By providing thesesolutions, we contribute to enhancing the efficiency of agricultural operation andmanagement, ultimately augmenting production value.
Technology EcosystemBusiness Ecosystem
The technology ecosystem contains four major segments: hardware openness, intelligence openness, data openness and platformopenness. We ?rmly believe that fostering openness and collaborative development within the technology ecosystem will ignite boundlessmarket vitality and scene vitality, propelling the future of digital intelligence forward.
A business ecosystem entails constructing a business ecologicalalliance through channel sharing and resource complementation.Dahua systematically integrates its own R&D, supply chain,channel, and ecological capabilities, thereby completing thebusiness closed loop through various methods including businessopportunity sharing, traffic mutual guidance, assessment andincentives, and market supervision.Currently, Dahua has amassed a wealth of scenario applicationstailored for government and enterprise settings. Speci?cally, wehave delivered over 5,000 city segmented scenes, and more than120+ industry solutions for government scenarios. Similarly, ourenterprise scene applications are equally diverse, encompassingmore than 3,000 segmented scenes, and more than 110 sets ofindustry solutions.
Applications tailored for government and enterprise settings
8,000+
sets of industry solutions
sets of segmented scenes
230+
The essence of technology ecosystem
Hardware openness: Provide uni?ed hardware open platform DHOP, network SDK, playback librarySDK and other open capabilities, to create a complete tool chain and development tool suite forpartners.
Intelligent openness: realize north-south algorithm openness for customers. Northboundreleases a uni?ed algorithm open layer, while southbound releases a standard protocol foralgorithm as well as the Genius Open Platform to provide one-stop algorithmic services.
Data openness: Provide one-stop data development engine to support data access,storage, computation, visualized mining, and open container cloud and other IaaS layerand PaaS layer to empower our partners to quickly access the cloud.Platform openness: Based on the bottom layer of IoT Digital Intelligence Platform, we integrate IoT,AI, big data engine and other technologies, provide standard API interfaces, build a closed loop ofenterprise-wide applications, and create a digital intelligence IoT ecosystem.
On May 13, 2023, Dahua held the 2023 Dahua Software Eco-Partnership Conference with the theme of "Building anEcosystem of Everything, Creating Digital Intelligence andInternet of Things". More than 160 partners from all over thecountry came to the conference, and we discussed with themthe role and value of AIoT, big data, AI and other technologiesin urban governance and enterprise management, discussedthe development direction and future opportunities ofdigital intelligence in the industry, and sought the conceptof co-construction, win-win, and symbiosis cooperation anddeepened the cooperation for the intelligent IoTs industry.
Holding the Eco-Partnership Conference to openup a new chapter for cooperation
In the future, Dahua will take "co-construction, win-win andcoexistence" as the core value and guideline of ecologicalcooperation, unswervingly uphold cooperation, carry outaltruism, and create value and win-win development withour partners, so as to embark on a new journey of digital andintellectualized development together.
Fu Liquan, Chairman and President of Dahua, delivering a speech
Service EcosystemIn the ?eld of service ecosystem, Dahua is dedicated to establishing an e?cient and professional delivery platform. We have developedfour open systems, namely integrated delivery, technical support, operation and maintenance management, and training and certi?cation.Through these systems, we aim to provide the market with comprehensive product and solution lifecycle services.
On October 27, the "2023 Dahua First Service Ecology/ASC Skills Competition" was successfully concluded in Hangzhou. Thiscompetition invited 17 Dahua ASCs (Authorized Service Centers) and excellent service eco-partners, with a total of 32 seniortechnical engineers participating.This competition covers product knowledge, service speci?cation requirements, practical ability and other aspects. Fromthe intelligent IOT, vehicle access, pedestrian access, intelligent building 4 practical track and through the knowledge of thequiz competition, practical competition in two modes of evaluation, we comprehensive considered the service ecologicalability, and e?ectively promote the eco-partner's professional exchanges and ability to grow.
2023 Dahua's First Service Eco/ASC Skills Classic
2023 Dahua's First Service Eco/ASC Skills Competition Site 2023 Dahua's First Service Eco/ASC Skills Competition Site
Investing in Public Welfare
While pursuing its own growth, Dahua remains steadfast in its commitment to public welfare, actively ful?lling its social responsibility and demonstrating its dedication. We are eager to share the bene?ts of ourbusiness with society and contribute to the prosperity of the community. Dahua has a long-standing dedication to public welfare and volunteerism, investing in areas such as agriculture, education, and disabilitysupport. In 2023, our public welfare initiatives focus on empowering youth education, aiding disaster-stricken areas, and supporting employee volunteering, among others. To spearhead these e?orts, we haveestablished the Huayu Public Welfare Development Center and Volunteer Association. These entities lead our employees and community members in making meaningful contributions to community welfare.
Dahua Huayu Public Welfare Development Centerhas been a social organization dedicated to socialservices and public service activities. With the aimof "Giving Love, Helping Others and Serving theSociety", it has become a practical organizationwith emphasis on teamwork, full of volunteerservice consciousness and strong will power.Huayu public welfare centers around the purposeof the organization and combines with the businessof Dahua, so as to start special programs in helpingagriculture, education, and disability respectively.In addition, it sets up the Common Wealth ActionRunner Project, Yongquan Education Project, andDigital Intelligence Disability Project, and continuesto explore a smart model in helping the elderly.
Huayu Public Welfare Development Center
The Volunteer Association is a non-pro?t socialorganization formed by the employees of Dahua,which is committed to serve the Company andsocial welfare activities for a long time. With theaim of "giving love, serving the society and realizingoneself", the association aims to cultivate Dahuaemployees to establish a social culture of solidarity,love, helpfulness, courage and sel?essness.At present, the Association has more than 200volunteers, and since 2019, it has served more than80 volunteer activities, the number of volunteersis more than 800, and the total service hours aremore than 7,000. In 2023, the Association is alsoactively involved in participating in the Company'sinternal activities, as well as volunteering in theAsian Games torch relay, Hangzhou Horse Race,and other grand international events.
Volunteer Association
Education plays a pivotal role in shaping the destinies and futures of young people. With their dynamic minds and innovative spirits, youth are at the forefront of shaping their own paths forward. Consequently,we consider empowering youth education as a cornerstone of Dahua's social responsibility initiatives.Empowering Youth Education
On November 14 to 15, 2023, the labor union of Dahua and Huayu Public Welfare jointly carried out a clothing and book donationactivity with the theme of " Clothes for love, Books for warmth" at 5 locations of 3 parks in Hangzhou. The activity collected morethan 900 pieces of clothing and 500 books. Among them, the clothes were shipped directly to Yushu, Qinghai Province, and thebooks were given to the bookstore in Dazhuang Village, Siachen County, bringing warmth and care to the children in these areas.Since 2014, Dahua has been continuously carrying out clothing donation activities, donating a total of more than 8,500 pieces ofclothing and more than 5,000 books for 10 consecutive years.
Clothes for love, Books for warmth
Donating books and clothes
During the Reporting Period, we carried out Dahua's"Mini Wish" program, donating RMB 46,800 to PujiaPrimary School, 6 second-hand laptops and 200 booksof extracurricular readings for primary students. Theproject aims to improve the quality of school operationand the living conditions of students, deepening theEast-West education collaboration and boosting thequality development of local schools.
Dahua's "Mini Wish" program
Donations to Pujia Primary School
Donated
RMB46,800
to Pujia Primary School
Dahua, in conjunction with the Arawana CharityFoundation, donated RMB 350,000 of equipment to beused for the installation of monitoring out of securitypurpose at Yihai School in Guanyun County, JiangsuProvince, and some Yihai Schools in Shandong Province.
Student aid project
The donation ceremony
Donated in conjunction with the ArawanaCharity Foundation
RMB350,000
Dahua joins hands with Zhejiang University to establish theDahua Scholarship. The Company takes the establishmentof the scholarship as an opportunity to provide importantsupport for the education of talents in the university.In 2023, Dahua donated RMB 150,000 to the College ofOptical Science and Engineering and RMB 170,000 to theCollege of Information Science & Electronic Engineeringin education fund. We hope that in the future, Dahuaand the university will make joint efforts in cutting-edge technology innovation, transformation of scientificresearch results, and training of talents to achieve win-wincooperation, and with the help of the college's excellentalumni power, to create a cooperative ecosystem andrealize the breakthrough of the industrial chain.
Establishing Zhejiang University Education Fund
Donation ceremony held by Zhejiang University Education
Foundation
Helping disaster-stricken areaNatural disasters are merciless, yet they bring out the best in humancompassion. Dahua recognizes the profound social responsibilityentailed in responding to natural disasters. We hold deep respectfor nature and stand in solidarity with the communities a?ected bysuch calamities. Promptly mobilizing resources, we extend aid to thea?ected areas during times of crisis.
On August 4, 2023, a severe rainstorm hit Zhuozhou,Hebei Province. In response to the disaster, Dahuaimmediately mobilized a rescue team, urgentlyprocured and coordinated relief supplies, and donatedpharmaceuticals, hygiene products, and food worthover RMB 50,000 to the relevant authorities. We alsoissued a donation appeal to all employees. Nearly100 employees extended their hands and stood insolidarity with the a?ected people during this di?culttime.
Rushing to Zhuozhou and Hebei for disaster relief
Rushing to Zhuozhou for disaster relief
Donated
RMB150,000
to the College of OpticalScience and Engineering
RMB170,000to the College of InformationScience & ElectronicEngineering in educationfund
Encouraging Employees to Partake in Public Welfare
As a responsible enterprise, Dahua always believes that the success of an enterprise is not only re?ected in the economic bene?ts, but also inthe contributions made to society; similarly, the self-worth of an individual can be realized and manifested by contributing to public welfare.Thus, we actively foster an environment where our employees are encouraged to participate in such activities, aligning their e?orts with theCompany's mission to foster the prosperity and development of society.
On August 18, 2023, the Binjiang District's "Chinese Charity Day", titled "Building a Charitable City, Protecting the Hangzhou AsianGames," o?cially kicked o? on Hualian Xingguang Avenue in Binjiang District.As a specially invited company for this event, Dahua set an example by establishing the ?rst named fund in Binjiang District andactively participated in the " One-Day Donation" initiative. We donated 100 robots and 10 smart locks to participate in the "Xinzie-Reach" public charity bazaar.
Charity bazaar aiding Binjiang Charity Carnival
Public charity bazaar
To systematically promote poverty alleviation work, accelerate the paceof poverty alleviation and wealth creation for targeted populations, leadimpoverished households to increase income and become prosperous,Huayu Public Welfare Development Center is deepening paired assistance toboost rural revitalization. They are recommending the high-mountain organictomatoes from Zhou'an Village, Yuyan Town, Songyang County to the peopleof Dahua. Furthermore, they are conducting on-site sales activities in the parkarea. All proceeds from the on-site sales were entirely given to the farmers ofZhou'an Village, Yuyan Town, Songyang County, with a total sales target of RMB30,000.Huayu Public Welfare Development Center has established channels with theZhejiang Federation of Industry and Commerce, the Zhejiang Committee ofthe CPPCC, the Binjiang District Government, Zhejiang Satellite TV QianjiangChannel, among others. They are providing assistance to 26 mountainouscounties through donations, purchasing agricultural products, and other means.These counties include Guangyuan in Sichuan, Zhou'an in Lishui, Changshan inQuzhou, Taishun in Wenzhou, among others. As of 2023, they have accumulatedsales of approximately RMB 430,000.
Helping farmer: the "Common Wealth Action Runner Plan"
Trophy of the "Common Wealth Action Runner Plan"
On July 12, 2023, Dahua's Party Committee, labor union,Red Cross, and Huayu Public Welfare joined handswith the Zhejiang Blood Center to carry out the blooddonation activity of " Joining hands for the Asian Games". The activity was held simultaneously in 1199 Park,1399 Park and Fuyang Base. Employees respondedpositively and signed up enthusiastically, and a total ofmore than 350 people bravely donated their blood.The year 2023 is the 7th year for the Company to holdthe blood donation activity. More and more employeesparticipate in these activities, connecting the bondof love with blood, and showing the care for life andresponsibility for the society with practical actions.
On May 20, 2023, Dahua carried out a bubble run activityaround the lake, in which participants accompaniedwith their teams, brought their families and friends, andcontributed to the public welfare fund by recording theirown steps. In 2023, public welfare running totaled morethan 2,690,000 steps, and RMB 10,000 of the fund wasdonated to the Hangzhou Charity Federation.
The UK subsidiary held a fundraising event on October20, 2023 to help breast cancer patients. At the event, ouremployees were in pink and gave what they could tohelp these patients.
In response to Dubai's "One Billion Meals " initiative, the Companyhas provided a large number of free meals in the Middle Eastand North Africa to workers who have been away from home forlong periods of time and who have been working under harshconditions. Employees of our subsidiaries have also participatedin the delivery process, spreading warmth and love. At the sametime, we also make donations to community groups in need ofsocial care in other MENA countries.
Joining hands for the Asian Games Bubble run for charityThe UK subsidiary launching breast cancer
fundraising campaign
Joining donating programs to support local communities in MENA
Blood donation activity
The UK subsidiary launching breast cancer fundraising
campaign
Supporting donating programs in MENA
Public welfare running
AppendixAppendix 1: Key Performance Indicators
IndicatorUnit202120222023Key Performance IndicatorsRevenueRMB100 million328.35305.65322.18Cash dividendsRMB100 million8.098.0212.50Tax revenueRMB100 million12.0420.6919.24
Key Performance Indicators for Environmental ProtectionRevenue from cleantech servicesand products
RMB10,000／／48,761Paper consumption intensityTonne/Million units412357325Plastic(EPE)consumption intensityTonne/Million units625042Consumption for purchasedpowers
10,000 kWh7,2509,50110,403Installed capacity of roof PVMW//5.99PV generationMWh//5,492.4Indirect energy consumptionKg standard coal8,910,58411,676,72112,785,680Indirect energy consumptionintensity
Kg standard coal/RMB
million revenues
271382397GasolineLiter34,31636,00427,466DieselLiter42,95555,14244,110Natural gasCubic meter1,040,3921,088,3631,324,917
IndicatorUnit202120222023Direct energy consumptionKg standard coal1,529,8112,053,3652,520,444Direct energy consumptionintensity
Kg standard coal/RMBmillion revenues
476778Total energy consumptionTonne standard coal10,440,39413,730,08715,306,125Total energy consumptionintensity
Tonne standard coal/RMBmillion revenues
318449475Scope 1
tCO
e2,4832,6653,038Scope 2
tCO
e51,00666,84059,330Scope 1 and Scope 2tCO
e53,48969,50562,368Scope 1 and Scope 2 emissionintensity
tCO
e/RMB million revenues1.632.271.94Total amount of waterconsumption
Tonne790,857807,292798,597Water consumption intensityTonne/RMB million revenues242625Total disposal amount ofhazardous waste
Tonne525176Legal transfer rate of hazardouswaste
%100100100Compliant disposal rate ofhazardous waste
%100100100
The low calori?c value, unit heat value carbon content, and fuel carbon oxidation rate used in Scope 1 calculations are from "Guidelines for Greenhouse Gas Emission Accounting Methods and Reporting for Mechanical EquipmentManufacturing Enterprises (Trial)" Appendix 2: Recommended Values for Relevant Parameters.
Scope 2 calculations are based on the 2022 national grid average emission factor of 0.5703 t CO
/MWh as published in the "Notice on Management of Greenhouse Gas Emission Reporting for Power Generation Enterprises for the Period 2023-2025" by the Ministry of Ecology and Environment.
IndicatorUnit202120222023Intensity of disposed hazardouswaste
Tonne/RMB million revenues//0.002Recyclable wasteTonne/1,5242209.5Non-recyclable wasteTonne5681,2285,540.5Key Social Performance Indicators
Number of employeesNumber of employees worldwidePeople22,86423,58723,452Number of employees by genderMalePeople//17,623FemalePeople//5,788UnknownPeople//41Number of employees by ageBelow 30People//10,47530 to 50People//12,817Above 50People//160Employees' rights and interestsCoverage of labor union%//100Coverage of Collective BargainingAgreement
%//100Employee diversityProportion of female directors%//11
IndicatorUnit202120222023Proportion of female managers%//13Proportion of local-employedexecutives
%//89Number of employees withdisabilities
People//3Employee trainingAverage employee training hoursHour42.625.428.1Proportion of trained employees%//96Occupational health and safetyNumber of work-related fatalitiesCase 000Occupational disease caseCase000Safety education coverage%100100100R&D innovationR&D investmentRMB100 million34.5238.8339.67Number of new patents duringthe Reporting Period
Pcs 7621,3221,318Number of new softwarecopyrights during theReporting Period
Pcs 6183127Number of new trademarksduring the Reporting Period
Pcs 355390Cumulative number of patentsand software copyrights
Pcs 3,5744,9797,079
Rewards
2022 Annual Growth Potential Enterprise in Intelligent IoT and Security EcosystemTop 10 Copyright Holders of 20222023 Top 100 Brand Software Enterprises in the Yangtze River DeltaNational Product and Service Quality Integrity Demonstration EnterpriseNational Quality and Credit Benchmarking EnterprisesNationally Trusted Quality Inspected ProductsNational Quality-Inspected Quali?ed ProductsNationally Guaranteed Quality ProductsNational Product and Service Quality Integrity Demonstration EnterpriseZhejiang Provincial Leading Science and Technology Enterprise2022 China Standard Innovation Contribution Award-Second Prize-Video Surveillance System Architecture2023 Top Enterprise in Software and Information Technology ServicesGroup Member of the China Quality Inspection AssociationNational Intellectual Property Demonstration EnterpriseSecond Prize of Science and Technology Award by Zhejiang Institute of Communications-Ethernet Multi-MediumAdaptation and Long-Distance Enhancement and Independent Chip Research and ApplicationFirst Prize of Zhejiang Science and Technology Progress Award – Key Technologies and Platform Applications forAutomatic Development of Vision Algorithms for Heterogeneous HardwareFirst Prize of Zhejiang Science and Technology Progress Award – Research and Application of Key Technologiesfor Intelligent Detection and Tracking of Multiple Targets across Domains in Complex EnvironmentsFirst Prize of Zhejiang Science and Technology Progress Award – Micro-nano Defect Detection Technology andIndustrial Application for Large-Aperture Optical Components
Appendix 2: Awards and Recognitions
Human rights Chapter
Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; and
Social-Empowering Employee'sDevelopmentPrinciple 2: make sure that they are not complicit in human rightsabuses.
Social-Empowering Employee'sDevelopmentLabourChapterPrinciple 3: Businesses should uphold the freedom of association andthe e?ective recognition of the right to collective bargaining;
Social-Empowering Employee'sDevelopmentPrinciple 4: the elimination of all forms of forced and compulsorylabour;
Social-Empowering Employee'sDevelopmentPrinciple 5: the e?ective abolition of child labour; and
Social-Empowering Employee'sDevelopmentPrinciple 6: the elimination of discrimination in respect ofemployment and occupation.
Social-Empowering Employee'sDevelopmentEnvironmentChapterPrinciple 7: Businesses should support a precautionary approach toenvironmental challenges;
Environmental - EnvironmentalManagementPrinciple 8: undertake initiatives to promote greater environmentalresponsibility; and
Environmental - EnvironmentalManagementEnvironmental - Green Research andDevelopmentEnvironmental - Green ProductsEnvironmental - Green OperationPrinciple 9: encourage the development and di?usion ofenvironmentally friendly technologies.
Environmental - Green Research andDevelopmentEnvironmental - Green ProductsAnti-CorruptionChapterPrinciple 10: Businesses should work against corruption in all itsforms, including extortion and bribery.
Governance-Business Ethics
Appendix 3：UNGC Principles Index
Appendix 4: SDGs Index
IndicatorChapter
Social-Empowering Employee'sDevelopmentSocial-Responsible Supply Chain
Feature: Technology for Social Good,Empowered by Digital Intelligence
Social-Empowering Employee'sDevelopment
Environmental-Green Operation
Environmental-Green ProductsEnvironmental-Green Operation
IndicatorChapter
Social-Empowering Employee'sDevelopmentFeature: Technology for Social Good,Empowered by Digital IntelligenceEnvironmental-Green ProductsSocial- Creating Customer ValueFeature: Technology for Social Good,Empowered by Digital IntelligenceEnvironmental-EnvironmentalManagementEnvironmental-Green Research andDevelopmentEnvironmental-Green ProductsEnvironmental-Green OperationEnvironmental-Green Research andDevelopmentEnvironmental-Green Operation
IndicatorChapter
Environmental-Green Operation
Environmental-Green Research andDevelopmentEnvironmental-Green OperationFeature: Technology for Social Good,Empowered by Digital IntelligenceEnvironmental-Green Research andDevelopmentEnvironmental-Green OperationGovernance-Corporate GovernanceGovernance-Compliance ManagementGovernance-Business Ethics
Social-Building Industrial Ecosystem
DisclosureItem
Disclosure TitleSectionsUniversal Standards
GRI 1: Foundation 2021GRI 2: General Disclosures 2021The organization and its reporting practices2-1Organizational detailsIntroduction to Dahua2-2
Entities included in the organization's sustainability
reporting
About This Report2-3Reporting period, frequency and contact pointAbout This Report2-4Restatements of information
There were no restatements of
information during the Reporting
Period2-5External assurance
There were no external assurance
obtained for the reportActivities and workers2-6Activities, value chain and other business relationships3.3.1 Supplier Management2-7Employees
3.1.1 Diverse and Inclusive
Workplace2-8Workers who are not employeesNot applicableGovernance2-9Governance structure and composition
1.1.1 ESG Architecture
1.2 Corporate Governance
2-10
Nomination and selection of the highest governancebody
1.2 Corporate Governance
2-11Chair of the highest governance body1.2 Corporate Governance
DisclosureItem
Disclosure TitleSections2-12
Role of the highest governance body in overseeing the
management of impacts
1.2 Corporate Governance
2-13Delegation of responsibility for managing impacts
1.2 Corporate Governance
1.1.1 ESG Architecture
2.1 Environmental Management
2-14
Role of the highest governance body in sustainability
reporting
1.1.1 ESG Architecture
2-15Con?icts of interestSee our 2023 Annual Report2-16Communication of critical concerns
1.1.2 Stakeholder Engagement
1.1.3 Material Issues
2-17Collective knowledge of the highest governance body1.2 Corporate Governance2-18
Evaluation of the performance of the highest
governance body
See our 2023 Annual Report2-19Remuneration policies
3.1.3 Employee Compensation and
Bene?t2-20Process to determine remuneration
3.1.3 Employee Compensation and
Bene?t2-21Annual total compensation ratio
Omitted due to con?dentiality
constraintsStrategy, policies and practicesAnnual total compensation ratio2-22Statement on sustainable development strategy Statement from the Chairman2-23Policy commitments
1.5 Business Ethics
3.3.2 Sustainable Supply Chain
2-24Embedding policy commitments
1.3 Compliance Management
1.5 Business Ethics
2-25 Processes to remediate negative impacts 1.5 Business Ethics
Appendix 5：GRI Index
DisclosureItem
Disclosure TitleSections
2-26Mechanisms for seeking advice and raising concerns1.5 Business Ethics2-27Compliance with laws and regulationsSee sections of the report for details2-28Membership associationsSee sections of the report for detailsStakeholder engagement2-29Approach to stakeholder engagement1.1.2 Stakeholder Engagement2-30Collective bargaining agreements
3.1.1 Diverse and Inclusive
WorkplaceGRI 3: Material Topics 20213-1 Process to determine material topics1.1.3 Material Issues3-2 List of material topics1.1.3 Material Issues3-3 Management of material topics1.1.3 Material IssuesTopic StandardsGRI 201: Economic Performance 2016201-1 Direct economic value generated and distributedAppendix1: Key Performance Indicators201-2
Financial implications and other risks and opportunitiesdue to climate change
Omitted due to con?dentiality
constraints201-3
De?ned bene?t plan obligations and other retirementplans
3.1.3 Employee Compensation and
Bene?t201-4 Financial assistance received from governmentNot applicableGRI 202: Market Presence 2016202-1
Ratios of standard entry level wage by gender compared tolocal minimum wage
Omitted due to con?dentiality
constraints202-2
Proportion of senior management hired from the localcommunity
Appendix1: Key Performance Indicators
DisclosureItem
Disclosure TitleSections
GRI 203: Indirect Economic Impact2016203-1 Infrastructure investments and services supported
Feature: Technology for Social Good,Empowered by Digital Intelligence203-2 Signi?cant indirect economic impacts
Feature: Technology for Social Good,Empowered by Digital IntelligenceGRI 204: Procurement Practices 2016204-1 Proportion of spending on local suppliers
Omitted due to con?dentialityconstraintsGRI 205: Anti-corruption 2016205-1
Operations assessed for risks related tocorruption
1.5 Business Ethics
205-2
Communication and training about anti-corruptionpolicies and procedures
1.5 Business Ethics
205-3 Con?rmed incidents of corruption and actions taken1.5 Business EthicsGRI 206: Anti-competitive Behavior 2016206-1
Legal actions for anti-competitive behavior, anti-trust,and monopoly practices
There were no relevant legal actionsduring the Reporting PeriodGRI 301: Materials 2016301-1 Materials used by weight or volume2.2.4 R&D of Green Packaging301-2 Recycled input materials used2.2.4 R&D of Green Packaging301-3 Reclaimed products and their packaging materials2.2.4 R&D of Green PackagingGRI 302: Energy 2016302-1 Energy consumption within the organization
2.4.1 Green Manufacturing
2.4.2 Green Logistics
2.4.3 Green O?ce
DisclosureItem
Disclosure TitleSections302-2 Energy consumption outside of the organization2.4.2 Green Logistics302-3 Energy intensity2.4.1 Green Manufacturing302-4 Reduction of energy consumption
2.2.3 Upgrading R&D Technique
2.4.1 Green Manufacturing
2.4.2 Green Logistics
2.4.3 Green O?ce
302-5
Reductions in energy requirements of
products and services
2.2.3 Upgrading R&D Technique
2.3 Green Development
2.4.1 Green Manufacturing
2.4.2 Green Logistics
GRI 303: Water and E?uents 2018303-1 Interactions with water as a shared Resource
2.4.1 Green Manufacturing
2.4.3 Green O?ce
303-2 Management of water discharge-related impacts
2.1 Environmental Management
2.4.1 Green Manufacturing
303-3 Water withdrawal2.4.1 Green Manufacturing303-4 Water discharge
2.1 Environmental Management
2.4.1 Green Manufacturing
303-5 Water consumption2.4.1 Green ManufacturingGRI 305: Emissions 2016305-1 Direct (Scope 1) GHG emissions2.4.1 Green Manufacturing305-2 energy indirect/Scope 2 GHG emissions2.4.1 Green Manufacturing305-3 Other indirect/Scope 3 GHG emissionsInformation unavailable305-4 GHG emissions intensity2.4.1 Green Manufacturing305-5 Reduction of GHG emissionsInformation unavailable305-6 Emissions of ozone-depleting substances (ODS)Not applicable305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other
signi?cant air emissions
Not applicableGRI 306: E?uents and Waste 2016
DisclosureItem
Disclosure TitleSections
306-1
Waste generation and signi?cant waste-relatedimpacts
2.4.1 Green Manufacturing
306-2 Actions taken to prevent waste generation
2.1 Environmental Management
2.4.1 Green Manufacturing
306-3 Composition of waste generated2.4.1 Green Manufacturing306-4
Recovery operations used to divert waste fromdisposal
2.4.1 Green Manufacturing
306-5 Disposal operations2.4.1 Green ManufacturingGRI 308: Supplier Environmental Assessment 2016308-1
New suppliers that were screened using environmentalcriteria
3.3.1 Supplier Management
308-2
Negative environmental impacts in the supply chainand actions taken
3.3.1 Supplier Management
GRI 401: Employment2016401-1 New employee hires and employee Turnover
3.1.1 Diverse and Inclusive
Workplace401-2
Bene?ts provided to full-time employees that are notprovided to temporary or part-time employees
3.1.3 Employee Compensation and
Bene?t401-3 Parental leave
3.1.3 Employee Compensation and
Bene?tGRI 402: Labor/Management Relations 2016402-1
Minimum notice periods regarding operationalchanges
Not applicableGRI 403: Occupational Health and safety 2018403-1 Occupational health and safety management system 3.1.4 Employee Health and Safety403-2
Hazard identi?cation, risk assessment, and incidentinvestigation
3.1.4 Employee Health and Safety
403-3 Guidance for Disclosure 3.1.4 Employee Health and Safety403-4
Worker participation, consultation, andcommunication on occupational health and safety
3.1.4 Employee Health and Safety
DisclosureItem
Disclosure TitleSections
403-5 Worker training on occupational health and safety 3.1.4 Employee Health and Safety403-6 Promotion of worker health3.1.4 Employee Health and Safety403-7
Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
3.1.4 Employee Health and Safety
403-8
Workers covered by an occupational health and safetymanagement system
3.1.4 Employee Health and Safety
403-9 Work-related injuries3.1.4 Employee Health and Safety403-10 Work-related ill health3.1.4 Employee Health and SafetyGRI 404: Training and Education 2016404-1 Average hours of training per year per employeeAppendix1: Key Performance Indicators404-2
Programs for upgrading employee skills and transitionassistance programs
3.1.2 Employee Growth and
Development404-3
Percentage of employees receiving regularperformance and career development reviews
3.1.2 Employee Growth and
DevelopmentGRI 405: Diversity and Equal Opportunity 2016405-1
Disclosure 405-1 Diversity of governance bodies andemployees
Appendix1: Key Performance Indicators405-2
Ratio of basic salary and remuneration of women tomen
Omitted due to con?dentiality
constraintsGRI 406: Non-discrimination 2016406-1
Incidents of discrimination and corrective actionstaken
3.1.1 Diverse and Inclusive
WorkplaceGRI 407: Freedom of Association and Collective Bargaining 2016407-1
Operations and suppliers in which the right to freedomof association and collective bargaining may be at risk
3.1.1 Diverse and Inclusive
WorkplaceGRI 408: Child Labor 2016
DisclosureItem
Disclosure TitleSections
408-1
Operations and suppliers at signi?cant risk forincidents of child labor
3.1.1 Diverse and Inclusive
Workplace
3.3.2 Sustainable Supply Chain
GRI 409: Forced or Compulsory Labor 2016409-1
Operations and suppliers at signi?cant risk forincidents of forced or compulsory labor
3.1.1 Diverse and Inclusive
Workplace
3.3.2 Sustainable Supply Chain
GRI 413: Local Communities2016413-1
Operations with local community engagement, impactassessments, and development programs
1.1.3 Material Issues Feature:
Technology for Social Good,Empowered by Digital Intelligence413-2
Operations with signi?cant actual and potentialnegative impacts on local communities
2.4 Green Operation
GRI 414: Supplier Social Assessment 2016414-1 New suppliers that were screened using social criteria3.3.1 Supplier Management414-2
Negative social impacts in the supply chain andactions taken
3.3.1 Supplier Management
GRI 416: Customer Health and Safety2016416-1 Political contributions3.2.1 Ensuring Product Quality416-2
Incidents of non-compliance concerning the healthand safety impacts of products and services
There were no relevant incidentsduring the Reporting PeriodGRI 417: Marketing and Labeling 2016417-1
Requirements for product and service information andlabeling
3.2.2 Upgrading Service Quality
417-2
Incidents of non-compliance concerning product andservice information and labeling
There were no relevant incidentsduring the Reporting Period417-3
Incidents of non-compliance concerning marketingcommunications
There were no relevant incidentsduring the Reporting PeriodGRI 418: Customer Privacy2016418-1
Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data
There were no relevant complaintsduring the reporting period
让社会更智能，让生活更美好Enabling a Smarter Society and Better Living
This document is a translated version of theChinese version 2023 Environmental, Socialand Govemance Report (“2023年度环境、社会及管治报告”)and the published ESGreport in the Chinese version shall prevail.