大华股份：2024Annual Report

Zhejiang Dahua Technology Co., Ltd.

2024 Annual Report

Code of Securities: 002236Abbreviation of Securities: DAHUA

Date of Disclosure: March 2025

2024 Annual Report

Section I Important Notes, Table of Contents, and DefinitionsThe Board of Directors, Board of Supervisors, Directors, Supervisors and SeniorManagement of Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as the"Company") hereby guarantee that the information presented in this report shall beauthentic, accurate and complete and free of any false records, misleading statements ormaterial omissions, and they will bear joint and several liability for such information.Fu Liquan, the Company's legal representative, Xu Qiaofen, chief accountant, andZhu Zhuling, person in charge of accounting institution (chief accountant) hereby declareand warrant that the financial report in the annual report is authentic, accurate, andcomplete. All directors attended the meeting of the Board of Directors for deliberation ofthis annual report.During the reporting period, there was no significant change in the risks faced by theCompany. The Company has been trying to identify all kinds of risks and actively takecountermeasures to avoid and reduce the risks.

(1) Risk of Technology Upgrading: The AIoT industry is a prime example of atechnology-intensive sector, characterized by rapid advancements and upgrades. If theCompany is unable to keep up with the development trends of industry technologies,fully address the diverse individual needs of customers, and invest adequately in R&D, itwill still face the risk of declining market competitiveness due to an inability to maintaincontinuous innovation. By increasing R & D investment, the Company continues tostrengthen research on such core technologies as multi-dimensional perception, largemodel in AI, video cloud, big data, network communication, network security, and

machine vision, and reserves product, technology, management and talent resources fora broader market in the future, so as to achieve sustainable and steady businessdevelopment.

(2) Risk of business model change: With the development of IoT, AI, big data, cloudcomputing, network communications, among other technologies, as well as the upgradesof intelligent terminal applications, the business model in the IoT era may have an impacton traditional industry development. If an enterprise fails to grasp opportunities broughtabout by the business model transformation in a timely manner, it may face the risk thatthe original market pattern becomes broken. The Company continues to focus on andstudy significant changes in the global economy, industry, and technology. It analyzesindustry development logic and anticipates the evolution of the AIoT industry, the ongoingintegration of video technology with information communication and digital technologies,and the diversification and uncertainty of customer demands. While consolidating itsadvantageous markets, the Company is actively exploring and piloting new businesses,innovative commercial models, and strategic business and technology deployment.

(3) Risk of declined local fiscal payment capacity: At present, local fiscal debt isrelatively high. If the local fiscal payment capacity declines, it may slow down the growthof industry demands, prolong the construction period of projects, extend the collection ofcapital, and delay customers' payment. The Company continues to improve the internalcontrol system and optimize the project review methods, select local projects carefullyand assess project risks systematically with prudent assessment of the market logic andcash flow balance logic, and reasonable control of risks. In addition, it formulates plansto deal with potential risks such as cash flow shortage, project delay, and payment delay.

(4) Risks of international operations: The Company’s products and solutions cover

more than 100 countries and regions overseas, and international business operationsface an ever-changing environment and new challenges. On the one hand, the globaleconomic growth rate continues to slow down, geopolitical and political conflicts in someregions have intensified, and some countries are facing risks such as foreign exchangedifficulties and exchange rate fluctuations, which pose certain threats and risks to thecontinued expansion of business in the host countries. On the other hand, pressuressuch as regional trade protectionism and regulation, increasingly complex compliancerequirements in the international business environment, and local manufacturingrequirements in some countries and regions continue to intensify, leading to increasingdemands and cost investments in the Company's compliance capacity building. In thisregard, the Company actively prevents and responds to international business risks,continuously enhances the overall overseas compliance risk control system, improvesthe capacity for proactive compliance risk prediction and systematic response, andcontinuously strengthens the Company's reserves and development of local productionand manufacturing capabilities. At the same time, the Company continues to strengthenits understanding and adaptability to the laws and regulations and political and economicenvironment in the regions where its business is involved, and formulates differentiatednational business operation strategies based on "one country, one policy" under thechanges in politics and economy of different regions to reduce business operations andlocal operation risks.

(5) Exchange rate risk: The Company's export transactions have been mostly settledin U.S. dollars. As our overseas business is in continuous growth, the fluctuation ofexchange rate may affect our profitability. The Company hedges and avoids exchangerate risks by centralized management of foreign exchange funds and hedging of

purchase payments in line with its main use of U.S. dollars as the settlement currency.

(6) Product security risks: The Company attaches great importance to and continuesto set up special funds to strengthen product security construction, in order to preventand respond to security risks of products in the Internet application environment, butthere may still be risks of being attacked by denial of service, brute-force access, SQLinjection, malware, etc., which may lead to system failure or service interruption. TheCompany has established a Network and Data Security Committee to establish andimprove a global end-to-end network and data security system in terms of policies,organizations, processes, management, technology, and specifications, actively respondto cyber security challenges, and be vigilant and prevent major cyber security incidents.

(7) Intellectual property risk: The promotion of the Company's globalization strategyand its own brand strategy may expose the Company to intellectual property rights risksand patent infringement, as well as such risks as business relations, fluctuations in thepublic opinion environment, increased legal proceedings and rising costs. With a highpriority on technological innovation, the Company has established a mechanism for theprotection and management of intangible assets such as innovation achievements, ownbrands and trade secrets, so as to continuously gather advantageous intellectualproperty assets; with the establishment of an intellectual property compliance and riskcontrol system, the Company continuously strengthens its ability to understand andmaster intellectual property laws and regulations as well as the administrative andjudicial environment in the regions where it operates.

(8) Supply chain security risks: The supply market is generally sufficient. TheCompany has built a sustainable supply ecosystem to ensure supply and deliverythrough various means such as new material selection, development of exclusive

second-party suppliers, and flexible inventory strategies. The Company pays attention tothe operational risks of suppliers and monitors the operational conditions of suppliers inreal time through the operational risk data management platform to avoid potential risks.Based on the profit distribution plan reviewed and approved by the Board ofDirectors, the Company plans to distribute a cash dividend of RMB 4.58 (tax inclusive)for every 10 shares to all shareholders, based on the share capital of 3,279,257,910shares after deducting the repurchased shares (totaling 19,819,601 shares), with 0bonus shares (tax inclusive), and will not convert capital reserve into share capital.

Table of Contents

Section I Important Notes, Table of Contents, and Definitions ...... 2

Section II Company Profile and Key Financial Indicators ...... 17

I. Company Information ..................................................................................................................... 17

II. Contact Person and Contact Information ..................................................................................... 17

III. Information Disclosure and Location ........................................................................................... 17

IV. Registration Change .................................................................................................................... 18

V. Other Related Information............................................................................................................. 18

VI. Key Accounting Data and Financial Indicators ............................................................................ 18

VII. Differences in Accounting Data Under Domestic and Foreign Accounting Standards .............. 19

VIII. Key Financial Indicators by Quarter .......................................................................................... 19

IX. Non-recurring Gains and Losses Items and Their Amounts ....................................................... 20

Section III Management Discussion and Analysis ...... 22

I. Industry Overview during the Reporting Period ............................................................................. 22

II. Main Businesses of the Company during the Reporting Period ................................................... 23

III. Core Competitiveness Analysis ................................................................................................. 127

IV. Main Business Analysis ............................................................................................................. 131

V. Non-Main Business Analysis ...................................................................................................... 140

VI. Analysis of Assets and Liabilities ............................................................................................... 140

VII. Investment Analysis .................................................................................................................. 142

VIII. Major Assets and Equity Sales ................................................................................................ 151

IX. Analysis of Major Subsidiaries and Associates ......................................................................... 151

X. Structured Entity Controlled by the Company ............................................................................ 153

XI. Prospects for the Future Development of the Company ........................................................... 153XII. Reception of Visits, Communication, Interviews, and Other Activities in the Report Period ... 155

13. Development and implementation of market value management system and valuationenhancement plan ...... 155

XIV. Implementation of the “Increase in Both Quality and Returns” Action Plan ............................ 156

Section IV Corporate Governance ...... 158

I. Basic Situation on Corporate Governance .................................................................................. 158II. The Company’s Independence from the Controlling Shareholder and Actual Controller in termsof the Company’s Assets, Personnel, Finance, Organization, Business, etc. ................................ 160

III Horizontal competition ...... 161IV. Relevant Situation of the Annual General Meeting of Shareholders and the ExtraordinaryGeneral Meeting of Shareholders Held in the Reporting Period ...... 162

V. Directors, Supervisors, and Senior Management ....................................................................... 162

VI. Performance of Directors' Duties during the Reporting Period ................................................. 170VII. Performance of Duties of the Special Committee under the Board of Directors during theReporting Period ...... 171

VIII. Work of the Board of Supervisors ........................................................................................... 172

IX. Employee Situation in the Company ......................................................................................... 172

X. Distribution of Company Profits and Capital Reserve Conversion to Share Capital Situation .. 173XI. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Plan orOther Employee Incentive Measures ...... 175

XII. Construction and Implementation of Internal Control System during the Reporting Period .... 178XIII. The Company's Management and Control of Subsidiaries during the Reporting Period ....... 179XIV. Internal Control Evaluation Report or Internal Control Audit Report ....................................... 179

XV. Rectification of Self-Examination Issues in the Special Action on Corporate Governance ofListed Companies ...... 181

Section V Environmental and Social Responsibilities ...... 182

I. Major Environmental Protection Issues ....................................................................................... 182

II. Social Responsibilities ................................................................................................................ 183III. Consolidation and Expansion of Achievements in Poverty Alleviation and Rural Revitalization183Section VI Significant Events ...... 184

I. Performance of Commitments ..................................................................................................... 184II. Non-operational capital occupation over listed companies by controlling shareholders and theirrelated parties ...... 185

III. Illegal external guarantees ......................................................................................................... 185IV. Statement by the Board of Directors on the recent "Non-Standard Audit Report" relatedsituation ...... 185

V. Explanations Made by the Board of Directors, the Board of Supervisors and IndependentDirectors (If Any) on the "Non-standard Audit Report" from the Accounting Firm during theReporting Period ...... 186

VI. Changes in Accounting Policies, Accounting Estimates, or Corrections of Major AccountingErrors Compared with the Previous Year's Financial Report ...... 186

VII. Changes in the Scope of Consolidated Financial Statements Compared with the PreviousYear's Financial Report ...... 186

VIII. Appointment and Dismissal of Accounting Firms .................................................................... 186IX. Suspension of Listing and Termination of Listing after Disclosure of the Annual Report ......... 187X. Bankruptcy Reorganization Matters ........................................................................................... 187

XI. Significant Lawsuits and Arbitration Matters ............................................................................. 187

XII. Penalties and Rectification ....................................................................................................... 187

XIII. Integrity of the Company, Its Controlling Shareholders and Actual Controllers ...................... 187

XIV. Significant Related-Party Transactions ................................................................................... 187

XV. Significant Contracts and Their Performance .......................................................................... 188

XVI. Explanations on Other Significant Matters .............................................................................. 207

XVII. Significant Events of the Company's Subsidiaries................................................................. 207

Section VII Changes in Shares and Information about Shareholders ...... 208

I. Changes in Shares....................................................................................................................... 208

II. Issuance and listing of securities ................................................................................................ 212

III. Particulars about the shareholders and actual controller .......................................................... 213

IV. Specific Implementation of Share Buybacks during the Reporting Period ............................... 218

Section VIII Information of Preferred Shares ...... 219

Section IX Situation on Corporate Bonds ...... 220

Section X Financial Report ...... 221

I. Audit Reports ................................................................................................................................ 221

II. Financial Statements .................................................................................................................. 226

III. Basic Information about the Company ...................................................................................... 254

IV. Basis for Preparing the Financial Statement ............................................................................. 254

V. Significant Accounting Polices and Accounting Estimates ......................................................... 255

VI. Taxes .......................................................................................................................................... 291

VII. Notes to the Items in the Consolidated Financial Statements ................................................. 294

VIII. R&D expenditures ................................................................................................................... 346

IX. Changes in the Scope of Consolidation .................................................................................... 346

X. Equity in Other Entities ............................................................................................................... 348

XI. Government Subsidies .............................................................................................................. 356

XII. Risks Relating to Financial Instruments ................................................................................... 357

XIII. Disclosure of Fair Value ........................................................................................................... 359

XIV. Related Parties and Related-party Transactions .................................................................... 361

XV. Share-based Payment .............................................................................................................. 375

XVI. Commitments and Contingencies ........................................................................................... 377

XVII. Events after the Balance Sheet Date ..................................................................................... 380

XVIII. Other Significant Events........................................................................................................ 381

XIX. Notes to Main Items in the Financial Statements of the Parent Company ............................. 381

XX. Supplementary Information ...................................................................................................... 395

Documents Available for Reference

i. Financial statements signed and sealed by the Company's person in charge, the chief accountant, andthe person in charge of accounting department (accounting officer).ii. The original copy of the Audit Report with the seal of the Accounting Firm and signed and stamped byCertified Public Accountants;iii. The original of all the Company's documents publicly disclosed during the reporting period and theoriginal of the announcement.iv. The said documents need to be prepared and placed at the Company's Securities Department forreference by investors.

Definitions

Item of definition	Refers To	Definitions
Reporting Period	Refers To	From January 1, 2024 to December 31, 2024
Dahua, company, the company	Refers To	Zhejiang Dahua Technology Co., Ltd.
Dahua System Engineering, System Engineering Company	Refers To	Zhejiang Dahua System Engineering Co., Ltd.
Dahua Vision Technology	Refers To	Zhejiang Dahua Vision Technology Co., Ltd.
Dahua Security Network, Operation Company	Refers To	Zhejiang Dahua Security Network Operation Service Co., Ltd.
Dahua Ju'an	Refers To	Zhejiang Dahua Ju'an Technology Co., Ltd.
Guangxi Dahua Information	Refers To	Guangxi Dahua Information Technology Co., Ltd.
Guangxi Yunlian	Refers To	Guangxi Dahua Yunlian Information Technology Co., Ltd.
Xiaohua Technology, Hangzhou Xiaohua	Refers To	Hangzhou Xiaohua Technology CO., LTD.
Dahua Zhilian	Refers To	Zhejiang Dahua Zhilian Co., Ltd.
Dahua Investment, Dahua Investment Management	Refers To	Zhejiang Dahua Investment Management Co., Ltd.
Guangxi Zhicheng, Dahua Zhicheng	Refers To	Guangxi Dahua Zhicheng Co., Ltd.
Hangzhou Huacheng, Huacheng Network	Refers To	Hangzhou Huacheng Network Technology Co., Ltd.
HuaRay Technology	Refers To	Zhejiang HuaRay Technology Co., Ltd.
Fuyang Hua'ao	Refers To	Hangzhou Fuyang Hua'ao Technology Co., Ltd.
Huafei Intelligent	Refers To	Zhejiang Huafei Intelligent Technology CO., LTD.
Huachuang Vision	Refers To	Zhejiang Huachuang Vision Technology Co., Ltd.
Guizhou Huayi	Refers To	Guizhou Huayi Shixin Technology Co., Ltd.
Guangxi Huacheng	Refers To	Guangxi Huacheng Technology Co., Ltd.
Meitan Dahua Technology	Refers To	Guizhou Meitan Dahua Information Technology Co., Ltd.
Inner Mongolia Zhimeng	Refers To	Inner Mongolia Dahua Zhimeng Information Technology Co., Ltd.
Leapmotor Technology	Refers To	Zhejiang Leapmotor Technology Co., Ltd.
Leapmotor	Refers	Leapmotor Automobile Co., Ltd.

	To
Tianjin Dahua Information, Tianjin Dahua	Refers To	Tianjin Dahua Information Technology Co., Ltd.
Hunan Dahua Zhilong, Dahua Zhilong	Refers To	Hunan Dahua Zhilong Information Technology Co., Ltd.
Huaxiao Technology	Refers To	Zhejiang Huaxiao Technology Co., Ltd.
Vision Technology	Refers To	Zhejiang Fengshi Technology Co., Ltd.
Xi'an Dahua Zhilian, Xi'an Dahua	Refers To	Xi'an Dahua Zhilian Technology Co., Ltd.
Huaruipin	Refers To	Jiangsu Huaruipin Technology Co. Ltd.
Beijing Huayue	Refers To	Beijing Huayue Shangcheng Information Technology Service Co., Ltd.
Shanghai Huashang	Refers To	Shanghai Huashang Chengyue Information Technology Service Co., Ltd.
Dahua Jinzhi	Refers To	Zhejiang Dahua Jinzhi Technology Co., Ltd.
Dahua Hong Kong, Dahua (HK) Limited	Refers To	Dahua Technology (HK) Limited
Zhoushan Operation	Refers To	Zhejiang Zhoushan Digital Development Operation Co. Ltd.
Yunnan Zhili	Refers To	Yunnan Zhili Technology Co., Ltd
Guangxi Dahua Technology	Refers To	Guangxi Dahua Technology Co., Ltd.
Huayixin	Refers To	Zhejiang Huayixin Technology Co., Ltd.
Huaruijie	Refers To	Zhejiang Huaruijie Technology Co., Ltd.
Chengdu Zhilian	Refers To	Chengdu Dahua Zhilian Information Technology Co., Ltd.
Chengdu Zhian	Refers To	Chengdu Dahua Zhian Information Technology Service Co., Ltd.
Chengdu Zhishu	Refers To	Chengdu Dahua Zhishu Information Technology Service Co., Ltd.
Chengdu Zhichuang	Refers To	Chengdu Zhichuang Yunshu Technology Co., Ltd.
Chengdu Smart Network	Refers To	Chengdu Huishan Smart Network Technology Co., Ltd.
Huakong Software	Refers To	Zhejiang Huakong Software Co., Ltd.
Huacheng Software	Refers To	Hangzhou Huacheng Software Co., Ltd.
Henan Dahua	Refers To	Henan Dahua Zhilian Information Technology Co., Ltd.
Huajian	Refers To	Zhejiang Huajian Technology Co., Ltd.

Zhengzhou Dahua Zhian	Refers To	Zhengzhou Dahua Zhian Information Technology Co., Ltd.
Dahua International	Refers To	Dahua Technology International Co., Ltd.
Anhui Zhilian	Refers To	Anhui Dahua Zhilian Information Technology Co., Ltd.
Anhui Zhishu	Refers To	Anhui Dahua Zhishu Information Technology Co., Ltd.
Changsha Dahua	Refers To	Changsha Dahua Technology Co., Ltd.
Tianjin Huajian	Refers To	Tianjin Huajian Technology Co., Ltd.
Wuhu Huajian	Refers To	Wuhu Huajian Technology Co., Ltd.
Zhejiang Pixfra	Refers To	Zhejiang Pixfra Technology Co., Ltd.
Yiwu Huaxi	Refers To	Yiwu Huaxi Technology Co., Ltd.
Dahua Operation	Refers To	Zhejiang Dahua Intelligent IoT Operation Service Co., Ltd.
Nanyang Intelligent	Refers To	Nanyang Dahua Intelligent Information Technology Co., Ltd.
Yibin Huahui	Refers To	Yibin Huahui Information Technology Co., Ltd.
Chengdu Huazhiwei	Refers To	Chengdu Huazhiwei Technology Co., Ltd.
IMOU Xi'an	Refers To	Xi'an IMOU Zhilian Technology Co., Ltd.
Luoyang Zhiyu	Refers To	Luoyang Dahua Zhiyu Information Technology Co., Ltd.
Huaqi Intelligence	Refers To	Zhejiang Huaqi Intelligent Technology Co., Ltd.
Chengdu Information	Refers To	Chengdu Dahua Wisdom Information Technology Co., Ltd.
HJ Technology	Refers To	Zhejiang HJ Technology Co., Ltd.
Huaxiyue	Refers To	Guangdong Huaxiyue Intelligent Technology Co., Ltd.
Huajie Operation	Refers To	Zhejiang Huajie New Energy Operation Service Co., Ltd.
Shuhang Intelligent	Refers To	Zhejiang Shuhang Intelligent Technology Co., Ltd.
Qingdao Ruifa	Refers To	Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co., Ltd.
Shandong Digital Intelligence	Refers To	Shandong Dahua Digital Intelligence Technology Co., Ltd.
Fujian Qingchuang	Refers To	Fujian Dahua Qingchuang Digital Technology Co., Ltd.
Jilin Zhilian	Refers	Jilin Dahua Zhilian Technology Co., Ltd.

	To
Zhengzhou Huaao	Refers To	Zhengzhou Airport Economy Zone Huaao Technology Co., Ltd.
Hainan Huizhi	Refers To	Hainan Dahua Huizhi Technology Co., Ltd.
Dahua Europe	Refers To	Dahua Europe B.V.
Dahua Middle East	Refers To	Dahua Technology Middle East FZE
Dahua Mexico	Refers To	Dahua Technology Mexico S.A. DE C.V
Dahua Chile	Refers To	Dahua Technology Chile SpA
Dahua Malaysia	Refers To	Dahua Security Malaysia SDN. BHD.
Dahua Korea	Refers To	Dahua Technology Korea Company Limited
Dahua Indonesia	Refers To	PT. Dahua Vision Technology Indonesia
Dahua Colombia	Refers To	Dahua Technology Colombia S.A.S
Dahua Australia	Refers To	Dahua Technology Australia PTY LTD
Dahua Singapore	Refers To	Dahua Technology Singapore Pte. Ltd.
Dahua South Africa	Refers To	Dahua Technology South Africa Proprietary Limited
Dahua Peru	Refers To	Dahua Technology Perú S.A.C
Dahua Russia	Refers To	Dahua Technology Rus Limited Liability Company
Dahua Brazil	Refers To	DAHUA TECHNOLOGY BRASIL COM?RCIO E SERVI?OS EM SEGURAN?A ELETR?NICA LTDA
Dahua Canada	Refers To	Dahua Technology Canada INC.
Dahua Panama	Refers To	Dahua Technology Panama S.A.
Dahua Hungary	Refers To	Dahua Technology Hungary Kft
Dahua Poland	Refers To	Dahua Technology Poland Sp. z o.o.
Dahua Italy	Refers To	Dahua Technology Italy S.R.L.
Dahua Tunisia	Refers To	Dahua Technology Tunisia Limited Liability Company
Dahua Kenya	Refers To	Dahua Technology Kenya Limited
Dahua UK	Refers To	Dahua Technology UK Limited

Dahua Germany	Refers To	Dahua Technology GmbH
Dahua Serbia	Refers To	Dahua Technology SRB d.o.o.
Dahua India	Refers To	Dahua Technology India Private Limited
Dahua Turkey	Refers To	Dahua Guvenlik Teknolojileri Sanayive Ticaret A.S.
Dahua Czech	Refers To	Dahua Technology Czech s.r.o.
Dahua Argentina	Refers To	Dahua Argentina S.A.
Dahua Spain	Refers To	Dahua Iberia, S.L.
Dahua Kazakhstan	Refers To	Dahua Technology Kazakhstan LLP
Dahua Denmark	Refers To	Dahua Technology Denmark Aps.
Dahua France	Refers To	Dahua Technology France SAS
Dahua Technology Holdings	Refers To	Dahua Technology Holdings Limited
Dahua New Zealand	Refers To	Dahua Technology New Zealand Limited
Dahua Netherlands	Refers To	Dahua Technology Netherlands B.V.
Dahua Morocco	Refers To	Dahua Technology Morocco SARL
Dahua Romania	Refers To	Dahua Technology S.R.L
Dahua Uzbekistan	Refers To	Dahua Vision LLc
Dahua Bulgaria	Refers To	Dahua Technology Bulgaria EOOD
Dahua Sri Lanka	Refers To	Dahua Technology China (Pvt) LTD
Dahua Pakistan	Refers To	Dahua Technology Pakistan (private) Limited
Dahua Thailand	Refers To	Dahua Technology (Thailand) Co.,LTD.
Dahua Nigeria	Refers To	Dahua Technology Nigeria Representative Ltd
Dahua Israel	Refers To	Dahua Technology Israel Ltd.
Dahua Mexico Service	Refers To	VISMEXTECH DHM SERVICIOS, S.A. DEC.V.
Huacheng Netherlands	Refers To	Imou Network Technology Netherlands B.V.
Dahua Japan	Refers	Dahua Technology Japan LLC

	To
Huacheng Hong Kong	Refers To	Huacheng Network (HK) Technology Limited
Dahua Qatar	Refers To	Dahua Technology QFZ LLC
Dahua Pacific	Refers To	Dahua Technology Pacific S.A
Intelbras S.A.	Refers To	INTELBRAS S.A. IND?STRIA DE TELECOMUNICA??O ELETR?NICA BRASILEIRA
Dahua Saudi Arabia	Refers To	Dahua Technology Middle East for Maintenance Single Person Company
Dahua Bengal	Refers To	Dahua Technology Bangladesh Private Limited
IMOU Australia	Refers To	IMOU NETWORK TECHNOLOGY AUSTRALIA PTY LTD
IMOU Vietnam	Refers To	C?NG TY TNHH C?NG NGH? IMOU NETWORK VI?T NAM
HuaRay Singapore	Refers To	HUARAY TECHNOLOGY SINGAPORE PTE. LTD.
Dahua Belgium Co.	Refers To	Dahua Technology Belgium BV
Dahua Saudi Arabia Co.	Refers To	Dahua Technology Regional Headquarters
Dahua Argentina Co.	Refers To	Dahua Technology Azerbaijan LLC
Dahua Vietnam Co., Ltd.	Refers To	Dahua Technology Vietnam Company Limited
HuaRay Korea	Refers To	HUARAY TECHNOLOGY KOREA COMPANY LIMITED
HuaRay Germany	Refers To	Huaray technology GmbH
Dahua Angola	Refers To	DAHUA EUROPE B.V -SUCURSAL EM ANGOLA
IMOU Teknologi Indonesia	Refers To	PT IMOU TEKNOLOGI INDONESIA
IMOU Indonesia Senantiasa	Refers To	PT IMOU INDONESIA SENANTIASA
Hirige MaLaysia	Refers To	Hirige Technology MaLaysia Sdn.Bhd.
Dahua Egypt	Refers To	Dahua Technology Egypt LLC
DAHUA Abu Dhabi	Refers To	DAHUA TECHNOLOGY AUH FOR SECURITY & SURVEILLANCE – SOLE PROPRIETORSHIP L.L.C.

Section II Company Profile and Key Financial IndicatorsI. Company Information

Stock Abbreviation	DAHUA	Stock Code	002236
Stock Exchange	Shenzhen Stock Exchange
Company Name in Chinese	Zhejiang Dahua Technology Co., Ltd.
Company Abbreviation in Chinese	DAHUA
Company Name in Foreign Language (If any)	ZHEJIANG DAHUA TECHNOLOGY CO.,LTD.
Legal Representative	Fu Liquan
Registered Address	No.1187, Bin'an Road, Binjiang District, Hangzhou City
Post Code of Registered Address	310053
Change of the Company’s Registered Address	On November 9, 2005, the Company’s registered address changed from the 15th floor of Tianyuan Building, 508 Wensan Road, Hangzhou to the present registered address.
Office Address	No. 1399 Bixing Road, Binjiang District, Hangzhou City
Post Code of Office Address	310053
Website	www.dahuatech.com
E-mail	[e-mail]

II. Contact Person and Contact Information

	Secretary of the Board	Representative of Securities Affairs
Name	Wu Jian	Li Sirui
Contact Address	No. 1399 Bixing Road, Binjiang District, Hangzhou City	No. 1399 Bixing Road, Binjiang District, Hangzhou City
Phone	0571-28939522	0571-28939522
Fax	0571-28051737	0571-28051737
E-mail	[e-mail]	[e-mail]

III. Information Disclosure and Location

The stock exchange website where the Company discloses the annual report	Shenzhen Stock Exchange (http://www.szse.cn)
The media outlets and their websites where the Company discloses the annual report	Securities Times and Juchao Information Network http://www.cninfo.com.cn/
Location for Annual Report of the Company	Securities Investment Department

IV. Registration Change

Unified Social Credit Code	91330000727215176K
Changes in Main Business Since Listing (If any)	No Change
Change of Controlling Shareholders (If any)	No Change

V. Other Related InformationAccounting Firm Hired by the Company

Name of the Accounting Firm	BDO China Shu Lun Pan CPAs (special general partnership)
Office Address of the Accounting Firm	4/F, New Huangpu Financial Plaza, No.61, Nanjing East Road, Shanghai
Name of Certified Public Accountant	Du Na, Zhang Junhui

The sponsor institution hired by the company to perform the continuous supervision in the reporting period?Applicable □ Not applicable

Name of Sponsor Institution	Office Address of Sponsor Institution	Name of Sponsor Representative	Continuous Supervision Period
Guosen Securities Co., Ltd.	5th Floor, Kaixiya Building, No. 105, Tiyuchang Road, Hangzhou, Zhejiang Province	Lou Yu, Sun Yu	2023.4.14-2024.12.31

The financial adviser hired by the company to perform the continuous supervision in the reporting period

□ Applicable ?Not applicable

VI. Key Accounting Data and Financial Indicators

Whether the Company needs retroactive adjustment or restatement of accounting data in prior years or not

□ Yes ?No

	2024	2023	Increase/Decrease Compared with the Same Period of the Previous Year	2022
Operating revenue (RMB)	32,180,931,827.17	32,218,317,636.77	-0.12%	30,565,370,012.64
Net profit attributable to shareholders of the listed Company (RMB)	2,905,728,684.03	7,361,892,404.52	-60.53%	2,324,356,092.20
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB)	2,347,399,066.67	2,961,742,139.01	-20.74%	1,580,552,515.57
Net cash flow generated by operational activities (RMB)	2,710,237,609.30	4,598,778,654.47	-41.07%	1,053,587,649.46

Basic Earnings per Share (RMB/Share)	0.90	2.31	-61.04%	0.79
Diluted Earnings per Share (RMB/Share)	0.90	2.31	-61.04%	0.79
Weighted Average ROE	8.19%	22.43%	-14.24%	9.49%
	End of 2024	End of 2023	Increase/Decrease at the End of the Current Year Compared with the End of the Previous Year	End of 2022
Total assets (RMB)	52,735,912,081.82	52,881,927,214.00	-0.28%	46,252,893,804.54
Net assets attributable to shareholders of the listed company (RMB)	36,028,046,171.08	34,719,173,825.42	3.77%	25,836,798,918.61

The Company’s net profits before and after deducting non-recurring profits and losses, whichever is lower, arenegative in the last three fiscal years, and the audit report of last year shows that there is uncertainty in the Company’sability to continue as a going concern.

□ Yes ?No

The net profits before and after deducting non-recurring profits and losses, whichever is lower, is negative.

□ Yes ?No

VII. Differences in Accounting Data Under Domestic and Foreign AccountingStandards

(1) Differences of net profits and net assets in the financial reports disclosed according to theinternational accounting standards and Chinese accounting standards

□ Applicable ?Not applicable

During the reporting period of the company, there is no difference between the net profits and net assets in thefinancial reports disclosed according to international accounting standards and Chinese accounting standards.

(2) Differences between the net profits and net assets in the financial reports disclosedaccording to the overseas accounting standards and Chinese accounting standards

□ Applicable ?Not applicable

During the reporting period of the company, there is no difference between the net profits and net assets in thefinancial reports disclosed according to overseas accounting standards and Chinese accounting standards.VIII. Key Financial Indicators by Quarter

Unit: RMB

	Q1	Q2	Q3	Q4
Operating income	6,180,916,716.70	8,685,705,853.11	7,583,459,308.10	9,730,849,949.26
Net Profit Attributable	561,037,985.01	1,248,551,460.45	735,420,826.51	360,718,412.06

to Shareholders of the Listed Company
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses	501,290,511.61	1,260,946,957.92	499,230,279.03	85,931,318.11
Net cash flow generated by operating activities	-1,306,666,360.66	799,480,739.95	382,269,899.01	2,835,153,331.00

Whether the above financial indicators or their totals are significantly different from the financial indicators disclosed inthe Company’s quarterly and semi-annual reports

□ Yes ?No

IX. Non-recurring Gains and Losses Items and Their Amounts

?Applicable □ Not applicable

Unit: RMB

Item	Amount in 2024	Amount in 2023	Amount in 2022	Note
Profits or losses from disposal of non-current assets (including the write-off for the accrued impairment of assets)	104,348,459.46	4,778,983,828.56	694,299,856.79
The government subsidies included in the current profits and losses (excluding the government subsidies closely related to regular businesses of the Company, in line with national policies, entitled to according to the established standard, and continuously impacting the Company’s profits and losses)	249,665,678.30	199,003,183.46	245,885,438.60
Profits and losses resulting from the changes in fair value for financial assets and financial liabilities held by non-financial enterprises, and from disposal of financial assets and liabilities, excluding the effective hedging businesses related to the regular business operation of the Company	124,956,271.40	103,119,981.50	-14,286,907.57
Gains or losses from investment or asset management entrusted to others	175,635,135.76	1,819,647.72	-40,735,247.48
Reversal of the receivables depreciation reserves for separate impairment test	4,602,004.26	4,513.91	2,151,340.72
Profits and losses on debt restructuring	-394,660.00	-16,242,445.24	-414,996.80
Non-Operating Revenue and expenses other than the above	12,821,255.27	-18,035,840.08	5,535,034.55
Other gains and losses items that fit the definition of non-recurring gains and losses	-1,833,839.60	-57,989,909.93	-134,254,380.85
Less: Impact of income tax	85,954,207.29	555,973,378.97	49,067,502.67

Impact of minority equity (after tax)	25,516,480.20	34,539,315.42	-34,690,941.34
Total	558,329,617.36	4,400,150,265.51	743,803,576.63	--

Other gains or losses that fit the definition of non-recurring gains or losses:

□ Applicable ?Not applicable

The Company has no other gains or losses that fit the definition of non-recurring gains or losses.Note for the definition of non-recurring gains and losses listed in the No. 1 Explanatory Announcement on InformationDisclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses, as recurring gainsand losses.

□ Applicable ?Not applicable

The Company did not define any non-recurring gains and losses listed in the No. 1 Explanatory Announcement onInformation Disclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses asrecurring gains and losses.

Section III Management Discussion and AnalysisI. Industry Overview during the Reporting PeriodIn 2024, domestic business faces insufficient market demand, while overseas business facesrisks such as regional trade protectionism, localized conflicts, and a slowdown in global economicgrowth, putting pressure on performance. However, concurrent with this, the domestic policyenvironment is undergoing positive changes, offering the Company greater opportunities to capitalizeon emerging market potential. Demand in emerging economies remains relatively robust, andChinese enterprises are rapidly pursuing international expansion, thereby providing new momentumfor overseas business growth.At the same time, the digital economy, with artificial intelligence as its important Engine, isbecoming an important force in promoting global economic recovery and sustainable development,opening up a broad space for China to achieve high-quality economic and social development. Theemergence of large models has profoundly reshaped the development path of artificial intelligence,driving the rapid evolution of multimodal, RAG, Agent, and other technologies, greatly expanding theapplication boundaries of artificial intelligence, and opening a rare window period for the developmentof intelligent processes in various industries. The AIoT industry is driven by the business needs ofcustomers in thousands of industries. It can give full play to the accumulation of experience inprofessional algorithms and scenario applications, and realize the effective implementation ofadvanced technologies represented by artificial intelligence in various application fields, therebycontinuously consolidating the industry's moat. In addition, data elements will gradually become a keystrategic resource that affects industrial development. The AIoT industry will focus on the IoTperception data element industry chain to help promote data as a resource, data as an asset, anddata as a commodity, and continuously enrich business content.With the development of technology, digitalization and intelligence have become key forces inpromoting social progress and economic development. In the future, the demand for governmentdigital construction and enterprise digital and intelligent transformation will be further released, andthe AIoT industry capability circle is also changing from the integration of customer peripheralsystems into core production and management systems, and the industry space is still broad.

II. Main Businesses of the Company during the Reporting Period

1. Business Overview

The Company is a global leading video-centric AIoT solution provider and operation serviceprovider. With AIoT and the intelligent IoT data platform as its two major technological strategies, theCompany effectively integrates artificial intelligence, big data, and IoT technologies into its productsand solutions, serving the digital innovation of cities and the digital and intelligent transformation ofenterprises.In the urban business field, centering on the goal of "efficient urban governance, urban operationautonomy, enhanced security system, and ecological collaborative governance", we establish aninnovative smart city ecosystem with "unified architecture, compatible reuse, shared capabilities, andopen business." In industries such as transportation, traffic police, social governance, public wellbeing,and ecological environment, we deeply cultivate urban business scenarios, provide leading AIoTsolutions for various industries in the city, serve urban digital innovation, and help realize the beautifulvision of harmonious coexistence between man and nature, man and society, and man and city.In the field of enterprise business, the Company deeply integrates advanced technologies suchas AI and big data with industry scenarios, gaining insight into the trend of industrial transformation. Itdelves into various industries to explore the digital and intelligent needs of enterprises, providing eachcustomer with high-quality digital intelligence upgrade solutions. In the fields of construction,education, manufacturing, petrochemistry, coal, electricity, iron and steel, agriculture, logistics, culture& tourism, healthcare, finance, and commercial chains, the Company is actively engaged ininnovative practices, focusing on ensuring production safety, enhancing production capacity,promoting operational efficiency, and optimizing the quality of service (QoS) to achieve customervalue, and is committed to becoming a trusted partner for the digital intelligence upgrade ofenterprises.

In the innovative business, the Company, based on its in-depth understanding of customers'diversified needs and years of experience in AIoT, continues to explore emerging businesses,including: machine vision, mobile robots, thermal imaging, automotive electronics, smart securityinspection, smart fire control, and storage media.

In 2024, the Company has built a broader AIoT capability, strengthened integrated connectivitycapabilities, activated the value of data elements centered on video, and made solid progresstowards the goal of becoming the preferred brand of AIoT.

In the technology field, the Company continues to strengthen its technological capabilities. Interms of AIoT, we insist on taking video as the core, continuously deepening the full-domain 6Dperception capability, and building broader connectivity capabilities through visual network integration;relying on the deep integration of multimodal technologies such as images, voice, and text with theCompany's industry accumulation, we continue to improve the industry's large model architecturesystem and build comprehensive scenario-based AI capabilities; through the collaboration of largeand small models and combined with industry business scenarios, we accelerate the implementationof industry large models. In terms of intelligent IoT data platform, based on a deep insight into urbangovernance and enterprise needs, a new platform upgrade has been carried out, with data fulllifecycle management as the core, to help promote the process of data as a resource, data as anasset, and data as a commodity, and inject new impetus into high-quality development; relying on thefull-domain 6D multi-dimensional perception technology and multi-connectivity capabilities, efficientaggregation of data across the entire network is achieved, a dynamic data base for cities andenterprises is built, and data as a resource is promoted; a graph-digit fusion computing system isconstructed to break through the barriers between view data and business data, explore multi-dimensional features and establish a multimodal relationship network, activate the deep value of data,and promote data as an asset; upgrade software engineering capabilities to achieve the free

orchestration of industry scenario modules, large models, and graph-digit fusion technologies,enabling efficient urban governance and enterprise digital and intelligent transformation.In the business field, the Company continues to empower industry customers to release businessvalue. In terms of urban business, the Company is committed to implementing digital and intelligentcapabilities in thousands of urban scenarios, focusing on the four major business areas of socialsecurity, urban order, governance efficiency improvement, and green benefits for the people. It hasprofound insights into industry scenario needs and continues to build industry-leading product andsolution capabilities. Through digital and intelligent integration and application innovation, itsafeguards the implementation of urban business, helps improve urban management efficiency, andprovides scientific decision-making support. In terms of enterprise business, the Company focuses onscenario-based digital and intelligent business and actively carries out innovative practices. Throughtechnology co-creation and business sharing with partners, it provides customers with high-qualitydigital and intelligent solutions, builds a large security system for users, creates digital and intelligentproductivity, and enhances operational decision-making, helping enterprises achieve digital andintelligent transformation.

2. Organization Structure

The Company has established five major research institutes, namely Advanced TechnologyResearch Institute, Big Data Research Institute, Central Research Institute, Cyber Security ResearchInstitute, and Product Engineering Institute, to support the two major R&D product lines of AIoT and

intelligent IoT data platform, empower the three major solution departments of urban business,enterprise business and small and medium-sized enterprise business, and with Hangzhouheadquarters as the center, establish R&D sub-centers in Xi'an, Chengdu, Europe and Latin America,orderly expand the layout of the global R&D system, meet the ever-changing business needs, andexplore the infinite possibilities of technology. After years of development, the Company has anational postdoctoral workstation, is a nationally recognized enterprise technology center, a NationalIndustrial Design Center, and a national innovative pilot enterprise. With its continuous innovationcapabilities, it continues to make breakthrough contributions and lead the industry's development.In terms of innovative business, subsidiaries including HuaRay Technology, Pixfra Technology,Hirige, Zhejiang Huajian, Huaxiao Technology, and Huayixin are constantly carrying out technologicalinnovation, continuously expanding business boundaries based on the field of AIoT, and formingintegration and complementarity with the Group's main business.

Under the global business trend, the Company has orderly promoted the layout of domestic andoverseas marketing and service systems, providing customers with full lifecycle services such asproduct and solution consulting, design, sales, delivery, and after-sales. As of now, the DomesticMarketing Center covers all provinces and cities and more than 70% of districts and counties, and theOverseas Marketing Center has established 69 overseas branches, and its products cover more than180 countries and regions. The Company has more than 1,000 service partners worldwide and hasestablished more than 170 spare parts centers and spare parts stations.

3. Main Products and Capabilities

In 2024, the Company continues to increase its investment and construction in the "five full"capabilities pedestal of "full perception, full intelligence, full connectivity, full computing, and fullecology", and establish an industry-leading "video and non-video multimodal perception, full coverageof perception to cognitive intelligence, diversified connectivity, and end-edge-cloud fusion computing"

with video as the core of the IoT infrastructure R&D and solution closed-loop services, and continuesto maintain the industry leadership of technology and products. At the same time, the Company isactively building an open, cooperative, and win-win digital technology ecosystem, and is firmlypromoting full openness to partners and industry developers from digital infrastructure, industryparadigm applications, algorithm capabilities to data intelligence.Full Perception: Through the multi-dimensional fusion application of vision, multi-spectrum, time,space, etc., we can maintain the accurate adaptation of products and technologies to the scenarios,build an industry-leading all-around perception system, and accurately present the physical world inthe digital world.Full Intelligence: In response to industry needs, to achieve a closed loop from perceptionintelligence to data intelligence and then to business intelligence, we have built an autonomoussystem based on algorithms, big data, and business platforms to realize customer data value miningand intelligent decision-making.

Full Connectivity: Build a data connection system that adapts to the needs of diversifiedscenarios, consolidate the data value connection foundation that integrates IoT perception andinformation interconnection, and continuously improve IoT perception access and integrationcapabilities.

Full Computing: Fully realize the computing resources, including image computing power, AIcomputing power, general computing power, etc., uniformly schedule and coordinate end-edge-cloudcomputing power and algorithms, and build a full-network computing architecture system.

Full Ecosystem: The Company aims to facilitate a comprehensive ecosystem for collaborationacross business, software, algorithms, hardware, and more, fostering an environment of co-construction, win-win, and symbiosis, while creating an AIoT ecological community.

3.1 Full Perception

The Company insists on taking video as the core, continuously strengthening its video perceptioncapabilities in various extreme environments, and under the full-domain 6D perception architecture,continues to expand perception methods in non-video dimensions such as audio, radar, thermalimaging, hyperspectral, and laser, enriching product forms to adapt to segmented scenarios invarious industries and providing customers with more comprehensive perception services.

3.1.1 Video perception technology and products

The Company drives the core with AI technology to achieve full-link intelligent reconstruction ofthe video perception system. Driven by the dual engines of vision engine and thinking engine, thecognitive upgrade of traditional camera device to intelligent vision terminal is completed.Regarding technical architecture, we continue to consolidate core technology foundations suchas optical imaging, intelligent motion control, efficient coding transmission, and complexenvironmental adaptability, build a solid technical foundation, and fully enable product iteration andperformance leaps. At the terminal product level, the Company continues to improve its multi-cameraperception product matrix, and through innovative designs such as intelligent multi-camera linkage,multi-camera collaboration, and multi-camera stitching, it significantly improves the multi-dimensionalscenario coverage capabilities and business execution efficiency of a single device. Aiming atsegmented industry scenarios, we have created a professional camera product system coveringvertical fields such as smart security, energy and chemical industry, industrial inspection, and trafficmanagement, which deeply meets the needs of industry scenarios and continuously expands theboundaries of commercial applications.

(1) Full-color night vision enhancement

With AI vision reconstructing the imaging system, the second generation of AI ISP technology islaunched, breaking through the performance boundaries of traditional ISPs and comprehensivelyupgrading the product matrix: through AI algorithms, the SNR of low illumination scenes, colorrendition, and motion blur suppression are deeply optimized, achieving full-color imaging and detailenhancement at night, while completing algorithm lightweight adaptation for the whole series ofproducts, promoting the accessibility of AI night vision. At the same time, it promotes three-dimensional innovation in "algorithm-hardware-scenario" and builds an intelligent vision closed loopfrom night imaging to analysis of complex light environments.

The Nightvision King series is the first to introduce full-color monitoring without fill light, supportsprecise detection of a 100-meter perimeter, and has the characteristics of anti-flying insectinterference and low power consumption; the Skyscanner/Skyline series are equipped with a largemodel enhancement algorithm, which significantly improves the capture effect of non-motor vehicles

and people in the vehicle at night, and the mixed-exposure 3.0 technology realizes adaptive speedtracking of all targets, and the hyper DoF technology upgrades the DOF focus to automatic one-clickjoint debugging; the Yizhen series is loaded with backlight hunting technology, which effectivelyeliminates the monitoring blind zones caused by strong light from vehicle lights and ensures allweather visibility in high-speed scenarios.

(2) Intelligent scenario adaptation

With AI active vision technology as the core, it breaks through the bottleneck of complex scenarioimaging and realizes the comprehensive evolution of the product matrix. By dynamically adjusting theimaging system and optimizing the algorithm, the adaptability to scenarios such as backlight, fog andrain, and complex indoor light sources is significantly improved, achieving a dual upgrade in detectionaccuracy and mode switching fluency. In terms of perimeter detection, the collaborative computing oflarge and small models is introduced to effectively suppress false alarms caused by sudden changesin light and rain interference, enhance the ability to recognize unconventional postures such ascrawling/rolling, and simultaneously improve the detection distance and accuracy. In terms ofinnovative and precise retrieval functions, it relies on real-time structured feature extraction on theterminal side and distributed edge computing architecture to achieve concurrent image search onmultiple devices in the local area network, getting rid of the dependence on traditional high-computingpower servers.The Acupick/TIOC series are equipped with collaborative perimeter and scenario adaptationtechnologies; the triple-lens 100-meter perimeter camera achieves 100-meter coverage with a singledevice through multi-focal length range relay; binocular box camera/PTZ and other devices build amulti-directional multi-camera surveillance network, supporting flexible adjustment of visual anglesand ultra-wide-area monitoring; the multi-camera linkage series upgrades AST variable-levelacceleration and target association deduplication technology, greatly improving the linkage trackingefficiency and stability. Technological innovation deeply empowers accurate perception and efficientoperation and maintenance in scenarios such as security and traffic.

(3) Definition of professional scenarios

The scenario-defined series deeply integrates technological innovation and scenariorequirements, relies on technological accumulation and scenario insights, targets the pain points ofthe industry's digital transformation, and provides customers with products precisely defined byscenarios.In the field of electricity, related products can achieve millimeter-level precise positioning of thePTZ system, complete automatic collection of instrument data, and realize AI identification of foreignobjects on power lines in an environment without network or electricity. In the field of hydrologicalmonitoring, 4G radar water level meters are used to achieve an accuracy of ±1mm, breaking throughthe bottleneck of extreme weather monitoring. In mining scenarios, the first self-cleaning camerasolves the problem of lens contamination underground, its ultra-small size enables enhanced controlof dangerous areas, and its sound-seeking technology optimizes underground intercom effects. In thefield of transportation, the product can respond rapidly and combine with ITO heated glass to adapt tovehicle-road collaborative scenarios. In the field of urban management, smart parking construction ispromoted through 4G wiring-free high-position cameras or video poles. In the port and shipping field,remote-controlled cameras conquer the challenges of strong vibration scenarios, enabling remote andprecise control of port machinery. In the field of intelligent manufacturing, the camera adopts aminiaturized body and a triple anti-vibration structure, combined with high frame rate imaging toaccurately capture high-speed moving targets, comprehensively improving industrial qualityinspection efficiency.

(4) All-time guarding without electricity or network

In response to the country's low-carbon environmental protection transformation requirements,the Company upgraded its low power consumption technology platform and significantly reduced thepower consumption of devices through technologies such as dynamic partition power-off control. Thenewly added AOV (low power consumption full-time video duty) mode can still ensure 24-houruninterrupted recording under extremely low power consumption, and you can get the experience of along-power camera without wiring.

Based on a new generation of low power consumption platform, the Company has launched aseries of energy-saving wireless cameras equipped with a wide operating temperature battery designthat can cope with the needs of use in various temperature environments. Relying on the features ofimproved product endurance and wide operating temperature batteries, the application scenarios ofcameras can be expanded.

(5) HD coaxial

The high-definition coaxial series continues to innovate based on customer scenario needs: thefull-color 3.0 is equipped with sharp/zoning illumination technology to solve the pain point of unevenbrightness; the dual-light full-color achieves full-time monitoring through dynamic perception andintelligent light switching, reducing deployment costs; the new PT series products use self-developedtechnologies such as dual-light coaxial and senseless hybrid zoom, breaking through the limitationsof traditional zoom and expanding application scenarios such as perimeter protection.

3.1.2 Full-domain perception technology and products

Based on the "full-domain 6D perception" product technical architecture, the Company continuesto expand perception methods in more non-video dimensions such as audio, millimeter wave, and

radio frequency, integrating intelligent analysis and judgment of data from various dimensions, furtherimproving the product's perception adaptability and information correlation capabilities, and tappingthe value of the AIoT industry.

(1) Millimeter-Wave Radar Perception Products

Through algorithm optimization, we continuously improve detection precision and effectivelyreduce the false alarm rate. We have built four major product matrices for security, transportation,volume, and health care: security radar, which can be used to cover the perimeter protection of powerstations; traffic radar, which can support overload control, traffic dispatching, and railway intrusionprevention scenarios; volume radar, which can achieve three-dimensional measurement of stock pilesand silos; health care radar, which monitors human posture and health status.We further expand products in the field of radar and vision fusion, and form a full-link solutionfrom perimeter protection to smart transportation through scenario-based product combinations. Forexample, the "Sentinel" series is equipped with the VRF2.0 algorithm to achieve feature-level fusionof video and radar, and is widely used in scenarios such as holographic intersections and traffic alerts.The overseas Spotter speed measurement column adopts a modular design to meet the needs ofspeeding capture and violation management.

(2) Audio perception products

The Company continues to build and improve a full-link audio and video technology system,covering the entire process of audio collection, transmission, and processing. Through enterprise-level development standards and audio encoding and decoding, quality optimization, event detection,speech recognition, and other technologies, it ensures sound field adaptability and sound qualityintelligence. In the field of industrial audio, we have made breakthroughs in exclusive filteringalgorithms, frequency domain feature extraction, and cross-channel simulation technology, created aclosed-loop link between vibration collection and algorithm analysis, and launched the ASD8000audio intelligent hub product, which realizes functions such as anomaly detection of industrialtransformers and bearings, and identification of square dance nuisances. It is widely used inscenarios such as electricity, steel, and public security. At the same time, we further deepen theinnovation of interactive audio, form a multimodal solution matrix, and deeply empower industrialdetection and public safety management.

(3) Multi-frequency domain perception products

The Company innovatively integrates multi-spectrum technologies to construct a full-domainperception system. Spectral detection device conducts corresponding component analysis based on

the absorption characteristics of materials, such as laser gas meters to detect leaks of flammable andnoxious gases, and hyperspectral water quality meters to sense and ensure water safety; the full-domain Hubble system achieves panoramic monitoring and smoke identification by integrating visiblelight and thermal imaging, and is used in forest fire prevention, border and coastal defense and otherfields; the digital license plate and radio frequency video all-in-one device uses independentlydeveloped UHF RFID technology to enable electric vehicle management, contactless passage, andurban illegal parking management. At the same time, we expand visibility detectors, sonar "Sentinel",and other diversified perception device to continuously deepen the scenario solution capabilities.

(4) Wireless alarm products

The Company's alarm product series has been deeply engaged in wireless technology, releasedAirFly4.0 technology, optimized and expanded protocol standards, and built a new softwareframework, which has greatly improved data transmission speed, stability, access efficiency, and lowpower consumption performance. Based on customer needs and business scenarios, the productsystem and functions have been improved: cloud business capabilities are continuously improved tooptimize user experience, the Converter baseline functions and cloud API interfaces are improved tomake ecological access more convenient, and the connection between multiple alarm software andalarm operation centers is completed to help the product open the alarm operation pipeline.

3.1.3 Intelligent interactive technology and products

The world of physics is rich and colorful. In many scenarios, there are rich interactions betweenpeople and people, as well as people and things. Multidimensional awareness is applied to refine thereal world, with multivariate connection to collect data and intelligent computing to build scenarios ofdigital intelligence, so as to finally make things an extension of people's touch, improve the interactionbetween people and things, and bring people closer. The Company has launched various intelligentinteractive products in multiple fields and scenarios, including vehicle management, personnel accessmanagement, smart office, access control intercom and alarm, hospital care, industry, new energy,

etc., to promote the continuous progress of society.

(1) Human settlement field

? Vehicle management induction scenario

In the field of smart parking, we perfectly combine video with display and mechanical control tocontinuously optimize the entrance and exit experience, improve the accuracy of license platerecognition and product stability, create a series of industry-leading products such as springlessbarrier gates and springless barrier gate all-in-one devices, reduce the operating costs of parking lotsand improve management efficiency. At the same time, we provide innovative integrated parking andcharging solutions to address the issue of new energy charging space occupation and optimize userexperience.? Personnel entrance and exit management scenario

In the field of personnel access, the Company has created an intelligent personnel accesssystem that integrates intelligent identity verification, access behavior perception and interaction, andlocal and remote management. It can be widely used in unmanned passages in high-end officebuildings, smart parks, smart campuses, smart culture & tourism, transportation hubs, commercialcomplexes and other building entrances and exits, bringing users an ultimate seamless accessexperience.? Building interaction scenarios

Building interaction scenarios have penetrated into people's daily lives, including various smartproducts such as access control, video intercom, and emergency assistance.

In the access control series, the company has comprehensively upgraded product value basedon technological progress: improving the security protection capabilities of the access control system,and launching the national secret and palm vein recognition series access control; bringing users asmoother user experience, achieving 0.1 second ultra-fast and seamless recognition; helpingcustomers achieve business value-added, the product supports one-click cloud access, realizesMobile Client configuration and management, and integrates advertising playback functions, whichare applied to electronic doorplate display, park community announcement release, and commercialadvertising.

In the field of video intercom, the Company always adheres to the people-oriented concept,provides owners with a convenient living experience, and builds a solid line of defense for communitysafety. Optimize the business processes between visitors, owners, and property management centers,and integrate humanized functions such as one-click elevator call, community announcementbroadcast, and intelligent voice dialing.? Smart office scenarios

Relying on the foundation of AIoT capabilities, the Company has intensively researched coretechnologies of interaction and video, continuously enriched its smart office product system,continued to innovate and hone its competitiveness, improved product performance and userexperience, and helped expand the global education and conference markets. In 2024, we launchedthe new "Yuexiang Pro S2" and "Professional S2" series of conference tablet products and a series ofeducational tablet products, and collaborated with Deephub board, Deephub Class and othersoftware to provide the ultimate audio and video interactive experience and create selected solutionsfor education and meetings.? Medical intercom scenarios

In the hospital nursing scenario, the Company takes "building a barrier-free communicationbridge between nurses and patients" as its core goal and fully upgrades the intelligent medicalintercom system. It supports one-click dressing change and high-definition audio and video instantintercom, ensuring that medical staff can respond to patient needs at the first time; through precisenursing positioning function, it optimizes the scheduling efficiency of medical staff; the systemdisplays its nursing level identification on the bedside extension to effectively prevent the occurrenceof nursing omissions. The system design fully embodies the patient-centered service philosophy andprovides strong technical support for establishing a harmonious doctor-patient relationship.? Display and control scenarios

In the field of display and control, the Company aims to meet the efficient command needs ofscenarios such as urban operation centers, hub dispatch centers, and medium and large command

centers, while improving project deployment efficiency and user experience. It has launchedinnovative products and solutions such as the integrated video platform M80, K series MLEDcontroller, and Taishan decoder. By integrating AI technology, it has created three smart scenarioapplications: unmanned screen shutdown, large-screen fire protection, and intelligentdehumidification, providing users with more efficient and convenient services.

(2) Industrial field

In the field of smart electricity use, by integrating information technology and IoT technology, wehelp improve the safety, economy, and convenience of the power system. The Company launched thethird-generation smart air switch products, upgrading the metering accuracy and breaking capacity toprovide more accurate and safer power supply protection. We apply load identification technology tosmart plug products to monitor the end circuit in real time to meet the needs of dormitories, officeareas, and other places for the control of prohibited electrical appliances. We enrich the intelligent airconditioner control system and improve the level of intelligent operation and energy utilizationefficiency.

(3) New energy field

The Company has seized the development trend of new energy and achieved a majorbreakthrough from scratch in the field of new energy chargers, launching a variety of chargerproducts to fully meet the charging needs of new energy vehicles. We have released solutions such

as integrated charging and parking, commercial operation, and home IoT for parks, cities, and cloudscenarios, providing one-stop services such as vehicle parking management, charging management,intelligent operation and maintenance, and station operation to create a safer, smarter, and moreconvenient ultimate user experience.

3.1.4 Intelligent IoT edge technology and products

The intelligent IoT edge series is an intelligent product that combines IoT and edge computing.As an edge management and control center, it is combined with video perception products to formdifferent application solutions. Various video, audio, alarm, and sensor devices can be accessed andmanaged, and data can be collected, processed, stored, and analyzed in real time to achieve alocalized business closed loop without relying on the cloud, supporting rapid decision-making andresponse. The product integrates multiple industry application algorithms and is widely used inscenarios such as industrial automation, logistics warehousing, and commercial buildings.

The Company has launched a series of products based on domestically produced hardware andthe Harmony operating system. The product supports massive IoT protocols and super AI computingpower, meets the access management of IoT sensors and control devices in various industries,realizes the deep integration of IoT data and video AI capabilities, and provides end-to-end AIoTsolutions for the edge of various industries.

3.2 Full Connectivity

In the era of digital video, network products and video systems need to be deeply integrated.With "visual and network integration" as the core concept and "easy to install, easy to configure, andeasy to maintain" as the goal, the Company has created a "one integration and three easy-to" productand technology system to upgrade the "full connectivity" capability. The cloud has reshaped thestartup, configuration, and operation and maintenance methods of video and network systems,allowing for quicker startups, simpler configurations, and more efficient operation and maintenance. Inaddition, we have launched a complete product portfolio and solutions, including wired networks,wireless networks, optical networks, industrial networks, etc. for different usage scenarios.

3.2.1 Wired transmission

In 2024, the Company built a new generation of network operating system, continuously enrichthe wired transmission product system, and completely upgraded the core, aggregation, accessmanagement, and access cloud management switches to achieve zero-configuration startup, whole-network management, whole-network VLAN batch division, and other visual and network integrationfeatures, effectively simplifying the configuration and operation and maintenance methods of wiredtransmission products and improving user operation and maintenance efficiency.

3.2.2 Wireless transmission

In the field of wireless transmission, the company aims to meet users' needs for convenient use,simple installation, and diversified access. It loads the innovative technology of "visual and networkintegration" into wireless transmission products for various scenarios, enriches the wireless

transmission product system, optimizes product performance, and makes wireless transmissionproducts start faster, configure easier, and use smoother. For example, based on the eSync fastnetworking technology, wireless terminal devices can be configured with one click, the roamingalgorithm is optimized to bring users an ultimate seamless roaming experience, and the videonetwork and office network can be isolated with one click, creating a convenient and stable wirelesstransmission network for users.

3.2.3 Industrial scenario transmission

In the industrial transmission scenario, the Company has upgraded its entire series of industrialnetwork products, achieving cloud integration for these products. The product supports fast ringnetwork, visual topology, batch VLAN configuration, intelligent analysis and alarm, and cloudconfiguration management, improving the usability and reliability of network products in industrialscenarios.

3.2.4 All-optical network

In the field of all-optical networks, in response to the converged communication needs of video,data, and voice services in park networks in scenarios such as enterprise parks and schools, passiveoptical communication technology is used. In 2024, a full range of frame-type and small-box local-end

aggregation OLT products and terminal access ONU products with rich features and completespecifications were launched to create a new generation of all-optical park networks with highcapacity, large bandwidth, long distance, and simple deployment for users.

3.3 Full Computing

When facing diverse scenarios, the diversity of computing becomes an inevitable trend. TheCompany's "full computing" architecture is based on multiple dimensions such as edge intelligentcomputing, central intelligent computing, intelligent storage, and cloud computing, providing stronger,faster, more secure, and reliable computing power for multiple fields. Combined with the application oflarge models in "full computing", it builds a sustainably driven full-stack innovation to help citiesgovern efficiently and enterprises achieve digital intelligence upgrade.

3.3.1 Intelligent computing

With the application of intelligent technology, the integration of digital technology and the realeconomy continues to accelerate; data has become a new productive force, and intelligence hasbecome the most effective and powerful production tool. With the promotion and application of largemodel technology in the AIoT industry, intelligent computing has gradually moved from traditionalpure-view algorithms to a new stage of multimodal algorithms. New algorithms generated by largemodel zero-sample capabilities can quickly verify business scenarios and complete businessmatching evaluations. Through the fine-tuning capabilities of large models with few samples,intelligent project construction can be quickly implemented, accelerating the process of industryintelligence. The Company's intelligent computing makes breakthroughs in computing powerconstruction, architecture complementation, and digital intelligence middle platform integration.

Through virtualization, containerization, and other deployment methods, the Company can quicklyrealize the full compatibility of high-performance computing resources, adapt to all kinds of CPUs,GPUs, and NPUs, and fully realize resource pooling.

(1) Computing power construction: As localization and independently controllable open sourceprojects become increasingly mature, the Company has completed the localization of full-linkproducts, covering end-edge-cloud computing power; realized the resource pooling of computingpower (such as image computing power, AI computing power, general computing power, and specialcomputing power); leveraged accumulated industry experience and collaborated with partners tocarry out technological innovation, such as chip virtualization computing power segmentation andprofessional comparison computing, to provide strong computing power support for full-linklocalization. To meet customers' high requirements for algorithm performance, we continuouslyoptimize cross-hardware model quantization, achieve cross-hardware precision alignment, realizeend-edge-cloud computing power collaboration, and efficiently leverage the value of computing power.

(2) Architecture complementation: In order to meet customers' scenario-based needs indifferentiated long-tail scenarios, the Company uses the advantages of four different architectures,namely multi-agent architecture, embedded computing architecture, video cloud computingarchitecture, and training architecture, based on professional algorithms, open algorithms, and largemodel algorithm capabilities.

(3) Digital intelligence middle platform: In order to maximize the advantages of the Company'scomputing power and architecture, the digital intelligence middle platform will focus on the capabilitylevel, provide intelligent services for the upper-level application platform, connect multiple capabilitiessuch as professional algorithms, training algorithms, large model algorithms and data computing,enhance the intelligent application of algorithms, assist in the incubation of emerging intelligentbusinesses, and provide an intelligent foundation for ecological partners.

In order to process massive amounts of AIoT data, the Company has carried out comprehensiveproduct upgrades in the field of intelligent computing. Including: central intelligent products, edgeintelligent boxes, storage and intelligence all-in-one devices, intelligent storage EVS and otherproduct series.

3.3.1.1 Edge intelligent computing

The Company is committed to deepening edge computing in the industry, continuously exploringbusiness specifications in various fields, upgrading technical applications such as algorithmorchestration, false alarm filtering, and algorithm paradigms, and effectively solving the problems ofmassive data processing, real-time response, and data security faced by AI in industry applications,realizing more intelligent management and services.The Company has released the Dahua Shensuan all-in-one device. Dahua Shensuan integratesstorage, computing, and management. Based on reliable storage, safe monitoring, and efficient query,it continuously enhances capabilities in image recognition, video analysis, and behavior prediction.The algorithm shelf covers energy security, electricity, coal mining, emergency management, financialcompliance, natural resources, behavior analysis, and other subdivided industry intelligence. Thealgorithm shelf realizes the free combination of algorithms in different industries, and combines thehighlight functions such as multi-intelligent parallel, intelligent patrol, tidal intelligence, etc., to providemore accurate and efficient intelligent monitoring solutions. At the same time, the product has recentlyintroduced advanced large model technology, applying the generalization and high precision of largemodels to quickly respond to the fragmented needs of edge scenarios. This enables faster, moreaccurate, and intelligent decision-making during the application process.

3.3.1.2 Central intelligent computing

In terms of technology, the Company continues to build a unified open intelligent architecture,

and by improving the intelligent middle platform framework and upgrading the view intelligenceengine, it provides a basic foundation for intelligent advancement, thereby building an intelligent

ecosystem and incubating emerging intelligent businesses.At the same time, based on different business demands, we comprehensively upgraded our corecapabilities in two fields: in the field of specialized intelligence in all factors of storage, computing, andinspection; Through multimodal algorithms, feature indexing technology and domestic hardwareadaptation, high-precision perception analysis and large-scale data retrieval are achieved, enablingcity-level big data applications; in the emerging long-tail intelligence field, the "algorithm trainingengine + algorithm warehouse + rule engine" model is used to support cloud-edge-end collaborativescheduling, quickly generate adaptation algorithms and flexibly deploy them, and open up ecologicalcooperation links through standardized interfaces.In terms of products, the Company launched the Sky Series all-in-one devices and large modelintelligent engines, carrying the Dahua large model capabilities, and fully promoting theimplementation of the industry's large model product business.

The Sky Series all-in-one device integrates computing power, industry algorithms, platformapplications, computing warehouse management, and algorithm training through deep collaborationbetween software and hardware, providing customers with a one-stop solution. The all-in-one devicecomes with a built-in capability base, integrating innovative technologies such as AI supervisionoptimization, multi-algorithm orchestration, and holographic multi-dimensional engine. At the sametime, it can be organically combined with the business of ecological partners to achieve a single-device scenario-based AI closed loop, leading the implementation of industry intelligence.The large model intelligent engine product adopts a software-hard decoupling solution,integrating capabilities such as large- and small-model collaboration, zero-sample new algorithmgeneration, and small-sample large model fine-tuning to create a private, localized, self-closed-looplarge model solution. Based on the capabilities of multimodal large models, we can objectively andaccurately describe real business scenarios, form intelligent applications in vertical fields,autonomously plan business paths from the end to the beginning, deeply explore the value of graphs,and efficiently coordinate multiple algorithm models to serve the industry's intelligent upgrade.Through technologies such as domain distillation and model quantization, the miniaturization of largemodels is achieved, ensuring efficient operation of the model and resource optimization. Inengineering practice, we combine small model applications to achieve multi-model collaboration,optimize computing power resource allocation, accelerate the application of large models inthousands of industries, and build large model products that can think, reason, and be affordable.

3.3.1.3 Intelligent storage

With the advent of the IoT information age, multi-dimensional perception data such as videos,images, audio, and documents are growing explosively, and the diversification and complexity ofstorage needs are placing higher demands on data storage.Traditional storage is limited by hardware space, storage data access methods, and other factors,making it unable to meet users' huge data storage and high-performance processing challenges. TheCompany's intelligent storage uses single controller and dual controller as the hardware base, based onstreaming storage capabilities, it integrates data redundancy, cluster strategy, encryption, and othertechnologies to reduce the risk of single point failure and achieve safe and reliable data storage.Combining technologies such as intelligent analysis, rapid data structuring, storage, intelligence andmanagement integration, we achieve quick pick of target data, long-term storage of value data, and aclosed-loop operation of edge data, thereby imparting new value to centralized data storage.

The intelligent storage EVS product adopts a modular design and supports multiple product formssuch as single-control, dual control, dual-channel, and high-density storage. It integrates RAIDtechnology and unified cluster management technology to build multiple data protection mechanismsand combines large-capacity hard drives to ensure long-term and highly reliable data storage. Therelevant products have technical features such as multi-channel intelligent balanced scheduling,complete localization of all components of the device, and dynamic storage strategy adjustment.

3.3.2 Cloud computing

In the process of transformation from traditional data centers to the cloud, we face manychallenges, such as chimney-style duplicate construction and long construction cycles. In order toimprove resource utilization, simplify management and O&M, and ensure safe and stable businessoperation, the Company has launched cloud computing solutions to integrate underlying physicalresources, provide rich cloud services such as computing, storage, network, and PaaS, and managecloud infrastructure throughout its full lifecycle, becoming a powerful engine for customers' digitaltransformation.

(1) Cloud platform: The Company provides a new generation of efficient and agile cloud-nativecomputing base for diverse computing scenarios of AIoT, realizing resource pooling of basiccomputing resources and hybrid deployment of multiple loads such as big data/intelligentanalysis/application software, meeting the needs of unified management, efficient resource utilization,flexible service deployment and reliable disaster recovery. Based on a deep understanding of cloudnative and video industry business, we have launched a series of cloud products such as cloudmanagement platform, container cloud platform, hyper-convergence, and universal storage, coveringhigh, medium, and low product forms, and seamlessly elastically expanding from a single device to alarge-scale cluster, providing users with more inclusive cloud solutions and helping government andenterprise customers build a new generation of digital infrastructure.

(2) Cloud storage: The Company provides large-scale video cloud storage services for city-leveland enterprise-level customers. After more than ten years of technological accumulation, it offerscapabilities such as multi-device access, multi-channel large-scale video access and storage, andstreaming media distribution. Relying on long-term technical research and development, such asnative distributed file system technology, domain optimization, software and hardware integration, and

dynamic fault tolerance, it has built an ultra-large-scale four-level (disk level, node level, rack level,storage pool level) reliable data storage capability.

(3) Big data storage and computing components: Over the past decade, the Company hasbeen facing the real-time access, storage, and retrieval of massive perception data, as well as theprocessing needs of complex scenarios. It has continuously accumulated a wealth of practicalexperience and has made long-term investments in the fields of software and hardware integration,dynamic fault tolerance, index optimization, reliability, distributed technology, and data security. It canprovide customers with centralized databases, distributed database services, Hadoop, and otherstorage components with industry-specific capabilities, automatically complete the access of IoTperception device data, automatically and evenly distribute data, and provide efficient retrievalservices, achieving a stable, reliable, and out-of-the-box experience. On the other hand, in the face ofdiversified video IoT data computing scenarios, we continue to optimize the kernels of computingcomponents such as Spark and Flink, provide industry-specific differentiated capabilities, and meetthe offline and real-time computing needs of graph-digit fusion services. The big data storage andcomputing components on the cloud significantly reduce the development, operation andmaintenance, and implementation costs of the business platform docking with storage and computingcomponents, and can serve a wide range of government and enterprise customers.

3.4 Full Intelligence

As artificial intelligence and big data technologies accelerate their industrialization, the Companyis guided by scenario-based applications, focuses on core technology research, insists on scientificand technological innovation, actively explores and promotes breakthroughs and applications of newtechnologies such as large models and multimodal AI, continuously consolidates the foundation of AIengineering, builds full-stack capabilities of large models, and continuously promotes theindustrialization and commercial success of AI. At the same time, we deeply explore the connotationof view data, release the value of data, promote the comprehensive upgrade of human-computerinteraction, and fully assist the digital intelligence upgrade of cities and enterprises, so as to achievethe closed loop from perceptual intelligence to data intelligence and then to business intelligence,creating business value for customers with "full intelligence" capabilities.

(1) Artificial intelligence

Artificial intelligence large models have become an important tool for industrial innovation andunlocking new quality productivity. Multimodal large model technology with vision as the core hasgradually begun to be applied in various industries. The Company regards artificial intelligence as oneof its core strategies and has always been committed to the research and innovation of the world's

leading artificial intelligence technologies, focusing on vision as the core main channel, andcontinuously optimizing its comprehensive and leading artificial intelligence research and engineeringcapabilities. Focusing on industry business and driven by large model technology, we continue toconsolidate AI industrialization capabilities and accelerate the digital and intelligent transformation ofvarious industries.

At present, the Company has national enterprise technology centers, national post-doctoralscientific research workstations, Zhejiang Enterprise Research Institute, Zhejiang EngineeringResearch Center, Zhejiang Provincial Key Laboratory, and AI R&D teams with more than 1,000members. It has won the first place in more than 70 AI algorithm competitions and evaluations athome and abroad, published more than 140 papers in core journals, applied for more than 2,700 AIpatents, and undertaken 26 national and provincial-level AI research projects. During the reportingperiod, the Company applied for more than 270 AI invention patents, obtained more than 400 patentsauthorization, and undertook four national and provincial and ministerial artificial intelligence scientificresearch projects.

3.4.1.1 Development trends of artificial intelligence

The emergence of large models has greatly changed the trajectory of AI development.Multimodal large models, RAG, Agent, and other technologies have developed rapidly, expanding theapplication areas of artificial intelligence and bringing unprecedented opportunities and challenges toall walks of life. In 2023, the Company launched the Dahua large model, a multimodal big model withvision as its core, which greatly improves visual analysis capabilities by integrating multimodal data.In 2024, the Company rapidly iterated large model applications around actual business operations,accelerated the implementation of industry intelligence, and realized value from multiple angles. Insome industries, large models have penetrated into core businesses, and by reshaping core businesssystems, the industrial and commercial value of large models can be truly realized.

(1) Rapid development of multimodal large models

The traditional large model is only good at processing text information. Some new technologiestry to allow large models to integrate data from multiple modalities, such as images, videos, and audio,and have launched a variety of multimodal large models. Among them, visual language models (VLM)are particularly noteworthy. The visual language model can learn rich visual language correlationsfrom massive amounts of image text. Only one VLM is needed to achieve visual parsing tasks suchas image understanding, target localization, and image-text question and answer. Although thegeneral VLM may not be as good as the dedicated small model in specific functional indicators, it canoutperform the small model in the field on specific tasks by generating multiple task plug-ins withsmaller parameters through industry data supervised fine-tuning (SFT). In addition, VLM is also

developing towards miniaturization. Small models with a parameter scale of about 0.5B to 3B canalso achieve good results in visual parsing tasks and have strong generalization capabilities. Therapid development of VLM will have a great impact on the AIoT industry and video application fields.

(2) AI agents are moving towards applications

Recently, people have built a series of agents based on traditional LLMs, that is, users inputinstructions, and after the large model understands them, it calls the corresponding tools in theintelligent body to output the desired results, thus realizing an intelligent closed loop of the business.The intelligent agent is endowed with the ability to actively think, plan, and execute tasks. It canactively perceive the environment and understand task objectives, independently select solutions,interact with the external environment, continuously improve model capabilities through the "dataflywheel", and continuously enrich functions by concentrating various intelligent tools, ultimatelyautonomously realizing a closed business loop.

(3) Large model technology migrates from the center to the edge

In 2024, with the emergence of various optimization technologies, powerful large models arebecoming compact, and the enhancement of edge computing power creates conditions for thedeployment of large models on terminals. The edge-side large model can process data locally,avoiding privacy leaks and compliance risks that may occur during the transmission process, and itdoes not need to transmit data and interact over the network. The response is more timely, and it canbe customized according to user needs, providing personalized services and improving timelinessand flexibility. In addition, the enhancement of the capabilities of the edge-side large models will makedevices smarter and services more precise. Through the coordinated deployment of cloud-edge largemodels, more powerful AI solutions can be created, promoting the widespread application of largemodels in all walks of life.

3.4.1.2 Strengthening the “1+2” artificial intelligence capability system

After years of continuous accumulation, the Company has built a "1+2" artificial intelligencecapability system, namely 1 set of architecture system plus 2 supports of scientific research capabilityand engineering capability. In 2024, the Company focused on comprehensive upgrades of largemodel technology, achieved significant improvements in large model technology research andengineering implementation capabilities, and released version 3.0. The four-layer technicalarchitecture enables seamless integration of large and small models, giving full play to the technicaladvantages of each model. In terms of scientific research capabilities, we have laid out advancedbasic technology research such as language large models, visual large models, and multimodal largemodels. In terms of engineering capabilities, a research and development system centered onalgorithm components has been established to promote small models with large models and assist

large models with small models, supporting the efficient deployment of algorithms in the cloud, edge,and end user.

(1) Continue to improve the four-layer architecture system to efficiently meet scenario-based AI needs? Continuous upgrade of the Ginn AI platformTo achieve large-scale industrialization of AI, it is necessary to possess efficient end-to-endsolution development and delivery capabilities. The Company continues to focus on investing inbuilding the Ginn one-stop AI development platform. The Ginn development platform is a one-stop AIdevelopment platform for developers, which realizes the full work flow management of AIdevelopment from data processing, model training, optimization and transplantation, algorithmmanagement, solution development, to algorithm verification and testing. In 2017, the Company builta high-performance computing center; in 2019, the Company released a full-stack algorithmdevelopment platform to realize a full-chain closed loop from data management to solution delivery; in2021, the Company upgraded and released an assembly solution development platform; in 2023, itdeveloped a work flow system for scenario-based algorithm development. In 2024, with thewidespread application of large models in natural language processing, computer vision, speechrecognition, and other fields, efficient large model development and delivery capabilities wererequired. The Ginn AI development platform focuses on large model business and continuouslyupgrades and improves the full-link online capabilities of AI development. It supports intelligentannotation of different types of data such as images, texts, videos, and audios, with a processingcapacity of 100 million per day; it develops its own large model reasoning framework to supportcross-platform deployment of mainstream models; it upgrades the large model work flow system toachieve full-link support for large model data processing, training, reasoning, evaluation, applicationdeployment, and traceability, thereby improving the development efficiency of large model businesses.? Algorithm components complete the technical upgrade of large models

Based on a large number of scenario-based application solutions, the Company hasaccumulated a series of general algorithm components, switching the algorithm development modelfrom "solution-centric" to "algorithm component-centric", effectively improving the reusability of thealgorithm. The large model technology of multimodal fusion has achieved a qualitative improvementin visual understanding capabilities. By adopting large model technology, we have achieved technicalupgrades of small model algorithm components, and the algorithm effect has been significantlyimproved while maintaining low computing power consumption. At the same time, relevant largemodel algorithm components have been accumulated, significantly improving the development speedof industry large models. The entire system has opened up the collaboration and call of large andsmall models, accelerating the upgrading of small model technology and the implementation of largemodel technology.? Build comprehensive scenario-based AI capabilitiesFaced with the massive scenario-based intelligence demands that have emerged during theindustry’s digital and intelligent transformation, the Company has gradually established a scenario-based intelligent algorithm development system that can be efficiently implemented after years ofexploration and innovation, covering technical models such as professional customized development,general algorithm paradigms, lightweight training, large model custom functions, and more accurateon-site use. Comprehensive scenario-based AI capabilities enable different customers to selectsuitable AI development models according to their unique business characteristics, significantlyenhancing the richness and efficiency of scenario-based algorithm supply and accelerating theprocess of inclusive AI.The general algorithm paradigm extracts general technical methods from numerous fragmenteddemands to meet specific types of demands, transforms customization into generality, and realizesnew function support through rapid configuration to satisfy scenario-based intelligent needs. Largemodel custom recognition technology opens up the imagination space for scenario-based intelligentbusiness, quickly converting what users want into smart features while ensuring the effectiveness ofthe algorithm; the more accurate on-site use technology achieves continuous optimization of AIsolutions to better meet actual business needs.

(2) Actively lay out new AI technology fields around industry development trends? Innovative integration technology of AI and spatial intelligence, creating a new form ofapplication in the digintelligent twin industry

Spatial intelligence technology has greatly promoted the deep integration of the digital world and

the physical world. In 2024, the Company proposed the concept of digintelligent twin and created theLuban series of products, which originated from the Company's accumulation and breakthroughs inthree-dimensional spatial intelligence technology. The Company has developed video fusiontechnology that allows video images from multiple cameras to be synchronously stitched and fused ina three-dimensional model, giving the traditional twin model rich real-time dynamic information. TheCompany continues to delve into automated modeling technology and has launched a complete setof modeling algorithm solutions, including reconstruction and texture mapping, which solves theproblems of high cost and poor realism of traditional manual modeling, and significantly reduces thedelivery and O&M costs of projects. The Company has developed 3D vector positioning technology,which can accurately locate sensors and target positions based on the structural relationshipconstraints of spatial vectors in the scenario, realize smart features such as field of view analysis,camera recommendation, and smart deployment, and has applied it to scenarios such as enterprise,energy, and public wellbeing.? Build audio algorithm basic capabilities to improve the audio capabilities of industryproductsAs an important perception dimension, the Company continues to build an audio algorithmtechnology system, and effectively implements audio processing, speech recognition, audio detection,and other technologies into various product series of the front and back ends of AIoT. In terms ofaudio processing technology, the main goal is to improve audio quality and retain the target voice.Audio AI noise reduction technology is used to effectively remove non-target audio signals, improveaudio quality, and make communications clearer and more understandable. In terms of speechrecognition technology, it realizes speech content recognition and builds lightweight wake-up wordand command word algorithms from 0 to 1. In terms of audio detection technology, by detecting andidentifying specific types of signals, combined with other perceptions such as vision, event alert andanalysis are be achieved; by loading AI detection technology, abnormal audio detection algorithmssuch as sound intensity, sudden change, mute, and smashing are improved; specific audio signaldetection algorithms are upgraded to improve product operation and maintenance automation, andsound event detection such as baby crying and audio detection algorithms for industrial device failureare developed.? Relying on the intelligent practical experience in the field of AIoT, develop low-altitudeintelligent scenario applications

The Company actively responds to the low-altitude economic policy and is committed to

expanding the innovative application and intelligent development of the Company's technologies andrelated products across multiple industries. We researched and sorted out the technicalcharacteristics of low-altitude mobile scenarios, refined generic object positioning operators andalgorithm modules such as target detection and scenario comparison, and quickly launched morethan 30 intelligent solutions, such as smoke and fire, illegal construction, and engineering truckdetection and positioning. We deeply explore the pain points of customers in low-altitude scenarios,use intelligent algorithms in the low-altitude field as a link, connect satellite and high-point cameradata, provide unified geographic information embedding capabilities, complete the spatiotemporalalignment and feature fusion of three-dimensional multi-data, and achieve efficient integration andanalysis of multi-scale and multi-dimensional spatial information. We have launched algorithmsolutions such as natural disaster detection, forest destruction, and coastal change monitoring, andeffectively support customers in multiple industries such as emergency response, urban governance,and public wellbeing to create low-altitude intelligent application demonstrations.? Develop a new generation of radar vision multimodal fusion technology to advance thedevelopment of the vehicle-road collaboration industry

We have developed end-to-end radar-vision multimodal fusion technology. From the perspectiveof Bird's Eye View (BEV), the point cloud features that represent spatial position, speed, and size arealigned and fused with fine visual texture features. The traditional radar vision target-level fusionmethod is upgraded to a feature-level fusion method, fully tapping the advantages of radar spatialperception and deeply understanding visual semantic information. The radar vision multimodal fusiontechnology realizes the complementary advantages of multi-sensor data and significantly enhancesthe target perception capability in various harsh environments. The data fusion accuracy is improvedby 20%, and the effective perception range is extended to hundreds of meters, realizing ultra-long-distance target capture, speed measurement, traffic statistics, event detection, and active safetywarning. The lane-level steering flow accuracy is over 95%, and the speed measurement and captureaccuracy is over 99%. Related technologies have been applied in the Company's monocular radar,binocular radar, speed measurement all-in-one device, and other products, helping to upgrade trafficsignal control, holographic intersections, vehicle-road-cloud and other businesses.? Systematic safety technology throughout the entire process ensures the safety andreliability of large modelsLarge model technology is booming, and its capabilities are constantly being enhanced andextended. The accompanying large model security risks have attracted widespread attention and

become a major challenge to the application of large models. From the perspective of model training,the security issues of large models mainly include the source security of data corpus, the contentsecurity of corpus, and the annotation security of corpus. From the perspective of model application,the main dimensions are traditional security (property privacy, crime, ethics), command attacks(negative inducement, unsafe role-playing, unsafe command themes, target hijacking), andresponsibility (social harmony, psychology, and compliance with laws and regulations). In order toensure the security and reliability of the delivered large model algorithms, the Company mainly usesdata enhancement, perturbation, and cleaning to reduce data risks, and fine-tunes the model toeliminate the original model backdoors and data poisoning. It uses collaborative feedbackreinforcement learning between humans and AI to ensure that the model’s values are consistent withexpectations, and calibrates model biases based on contextual learning technology. The abovetechnologies can effectively improve the reliability, robustness, privacy, and fairness of large models.

(3) Continuous optimization of AI engineering capabilities

? Orderly promote the localization deployment of large modelsLarge models with billions of parameters require powerful computing power to support them.Based on the experience in small model industry applications, the Company has accumulated richfoundational capabilities for model deployment in domestic chip applications. Starting from theindustry’s large model R&D stage in 2023, the Company has deepened cooperation with mainstreamdomestic chip manufacturers to explore training and verification work based on domesticallyproduced chips. In 2024, the Company completed the migration of the Dahua large model todomestic chips, ensuring the sustainable development of the business. Release a unified and efficientlarge model training framework

To achieve efficient training of large models, the training framework is optimized in many aspects:

it supports FP32 and FP8 mixed precision training to maximize video memory utilization andcomputing efficiency while maintaining model accuracy; it can dynamically adjust numerical precisionaccording to different parts of the model and training stages, balance accuracy and performance, andimprove training efficiency. Based on data parallelism, we deepen the model parallelization strategyand comprehensively use model parallelism and pipeline parallelism technologies to solve the trainingdifficulties caused by the huge scale of large model parameters and improve the training efficiencyafter model splitting. In addition, the addition of the Machine Learning Accelerator (MLA) modulefurther improves the speed and efficiency of large model training by optimizing the computingarchitecture, providing efficient parallel processing capabilities and specialized operators.? Build a 1+1+N algorithm training system

Build a 1+1+N algorithm training system, namely: algorithm model training + algorithmincremental training + algorithm orchestration. The 1+1+N algorithm training system enriches theapplicable scenarios of the algorithm, is closer to customer business processes, and significantlyshortens the algorithm delivery cycle. By providing customers with professional, timely, andpersonalized training, we can quickly build algorithm capabilities for customers, support the broadneeds of government business, and assist enterprises in intelligent upgrades, transformation, andtransition. The Company has launched two core platforms: an offline all-in-one device and an AItraining online platform, which support on-demand application for training resources, dynamicallocation, multi-person collaboration, task allocation, online verification, online deployment andupgrade capabilities.

3.4.1.3 Comprehensively upgrade the multimodal capabilities of the Dahua large model toaccelerate implementation and promotion

In 2024, the Company released an industry intelligent application framework centered aroundMAAS architecture, achieving efficient computing, convenient delivery, and simple use. The bottomlayer of the system is the IoT perception terminal, which provides a variety of rich raw data. Above theIoT perceptron layer are the view intelligence engine and data intelligence engine, which enableefficient governance of multi-dimensional perception data and provide high-quality structured andunstructured data support for industry intelligent entities. The overall industry intelligent entity consistsof two parts: MAAS and SAAS.

Unified Industry Intelligent Application Framework? Three series of industry large modelsThe Dahua large model is an industry large model that takes visual analysis as its core,integrates multimodal capabilities, and combines industry experience. Driven by industry business,the Company has comprehensively upgraded the Dahua large model: launching the V series largemodel with vision as the core, the L series large model with language as the core, and the M serieslarge model with multimodality as the core. Relying on three types of industry large models, we buildindustry intelligent entities and reshape industry applications.

Visual large model (V series): The large model with visual analysis as the core has two majoradvantages. First, the algorithm analysis effect moves from accurate to precise, and the accuracy isgreatly improved. The performance of target detection for small targets and the accuracy of low-probability events are greatly improved. Second, it realizes automatic scenario understanding and ismore convenient to deploy. For example, smart tags can realize functions such as automatic scenarioclassification and dynamic segmentation, enhance image understanding, and perform functions suchas image description and event analysis.Language large model (L Series): It has text interaction capabilities and can achieve semanticunderstanding, task decomposition, work flow execution, and result generation. Its language abilityhas been significantly improved, and it can deeply understand industry knowledge and data,promoting the transformation of human-computer interaction to human-computer collaboration. Inspecific applications, the model supports functions such as knowledge-enhanced retrieval, semantic

understanding and interaction, and can automatically schedule work flow tasks, including thoughtchain and work flow orchestration, task execution, and result generation.Multimodal large model (M series): Through the image and text fusion technology, a largemodel of image and text mutual search and visual analysis is realized, while having all the capabilitiesof the V series. This model can not only achieve the transformation of requirements frompersonalization to generalization and shorten the development cycle, but also implement newfunctions through graphic prompts without customized development. It has gone from simplerecognition to deep understanding, breaking through visual cognitive capabilities, and can identifyvarious complex behaviors through video sequences, such as destroying facilities, climbing overguardrails, and pulling vehicle doors. In addition, the multimodal capabilities of the model have beensignificantly enhanced, expanding the application value of multimodal data collaboration, andsupporting new functions such as text search for images, text-based behavior search, text search forvideos, global image search, local image search, full-factor image search, and cross-modal combinedsearch.? MAAS computing architecture with graph-digit fusionThe application of Dahua large models in vertical fields is complex and diverse. In order toefficiently and conveniently deliver the big model algorithms, the company has built a unified bigmodel service architecture. For each application scenario, one-click delivery can be completedthrough a unified MAAS service. During the process, you only need to replace the vertical field bigmodel in each business scenario.1+1+1+N graph-digit fusion MAAS computing architecture: 1 computing architecture to unify thelarge model architecture of multiple industries; 1 computing power base to achieve unifiedmanagement of computing power and unified task scheduling; 1 application portal to innovate newhuman-computer interaction methods and unify the text-based interaction portals; and provide flexibleexpansion capabilities for N types of industry applications for government and enterprise businesses.

The MAAS architecture is designed based on a multimodal large model algorithm, integratingmultimodal information such as video, audio, and text. It mainly includes a language large model, avisual large model, a model feature library, and a large and small model collaborative module. Allbusiness scenarios use the language large model as the interaction entry. The language large modelextracts semantic features, and the visual large model extracts features of images and videos, andaligns multimodal features such as views and semantics, which can effectively realize the knowledgeand capability alignment of the multimodal large model in each modality. The feature data of eachmodality can be effectively exported to the feature library and used as internal multimodal feature

knowledge to realize offline and online semantic search. In addition, based on the industry multimodalknowledge, an external knowledge base can be further constructed to reduce the illusion of the largemodel and further improve the richness of knowledge acquisition. MAAS also supports algorithmimplementation solutions that collaborate with large and small models. The multimodal data perceivedby the small model on the front end is aggregated to the back end for secondary analysis andsecondary feature alignment through the large model, further upgrading the algorithm applicationsolution and effectively reducing the cost of algorithm implementation.Language large model technology is an important component of the large model architecture andthe core part of the multimodal large model architecture. It can serve as the key entry point to thesoftware application platform. The intelligent agent framework based on the language large modelcan not only understand the alignment semantic features, but also automatically call various platformresources and tools, such as function calls, domain knowledge retrieval, data retrieval, automateddocument analysis, risk assessment, compliance checks, etc., which can greatly enhance theintelligence level of the entire software and hardware products, provide cross-domain intelligentsolutions for enterprises and governments, and promote the digital and intelligent transformation ofbusinesses.? SAAS with natural language interaction

The SAAS platform provides flexible expansion capabilities for government industries (publicsecurity, transportation, urban governance, etc.) and enterprise industries (electricity, coal,manufacturing, etc.) with a new way of human-computer interaction. By building a unified text-basedinteractive portal, the complex interface of the traditional application system is broken, allowing usersto easily access and operate various services in the most natural and intuitive way, greatly loweringthe usage threshold. Government and enterprise customers can get started quickly and enjoy anefficient and convenient work experience.? Upgrading from large models to intelligent agents to reshape business application modelsLarge model technology is usually used for understanding and generating multimodal data suchas text, images, videos, and audio. With the development of the large model application paradigm,the Company has been constantly thinking about how to enable large models to mimic humanproblem-solving through the use of various tools. As a result, intelligent agents (AI Agents) centeredaround various tool calls and task orchestration are becoming an important form of implementation inthe industry. Large models can not only understand tool calls but also carry out independent thinking,planning, and task execution based on task requirements.Industry intelligence agents have achieved remarkable results in promoting the intelligentupgrade of business applications, and have been successfully implemented in scenarios such as

government and enterprises. The Company's industry intelligence agent demonstrates its uniquevalue with the following five advantages:

Reshaping the software form: The deep understanding capabilities of the multimodal largemodel enable us to quickly build a complete business flow from visual analysis, evaluation, decision-making, to execution when faced with new business. Upgrading from the traditional function stackingmodel to an efficient closed-loop work flow has significantly improved business processing efficiency.Reinventing the interaction method: The traditional interaction method of clicking the keyboard,mouse, and screen can be transformed into multimodal interaction modes such as text, images, andvideos. Through the powerful understanding ability of the multimodal large model, the system canaccurately capture user intentions and provide timely and effective suggestions. It has a unified entryand convenient operation, which greatly reduces the learning cost and optimizes the user experience.Continuous evolution, the more you use it, the better it gets: The intelligent agent possessesexceptional business understanding capabilities, and its understanding of data and businesscontinues to deepen as the frequency of use increases. The intelligent agent continues to grow in use,and its performance is increasingly optimized, accelerating the digital and intelligent process of theindustry.

Helping to deepen business: In response to the diverse needs of the long-tail market, theindustry intelligent agent with multimodal large models as its core can accurately precipitateprofessional knowledge of users and industries. By continuously accumulating industry knowledge,we have developed products that better meet user needs and help business development andinnovation.

Optimizing computing network collaboration: The intelligent agent can automaticallycomplete the optimal scheduling of computing power according to specific business needs, build anend-edge-cloud computing network, realize the coordinated operation of end-edge intelligence andcenter intelligence, and further improve the efficiency of computing resource utilization.

Driven by the core of multimodal large models, the industry intelligent agent has demonstrated itsrevolutionary advantages in multiple dimensions, injecting strong impetus into the industry's intelligenttransformation.? Large and small models collaborate to achieve efficient utilization of computing power

In order to accelerate the product application scope of large models, we continue to upgrade thecollaborative computing architecture of large and small models to reduce the hardware deploymentcost of large models. Through multimodal distillation, domain knowledge is transferred from largemodels to small models. While maintaining high generalization of the model, the number of model

parameters is reduced, and the model reasoning speed is improved. At the same time, the largemodel technology is used to upgrade the small model to enhance model accuracy and cross-scenarioadaptability. In order to give full play to the effect advantages of large models and the reasoningspeed advantages of small models, large and small models are deployed together to achievecollaborative computing. The small model performs real-time analysis and feature extraction on thedata flow, the large model shares the feature information of the small model, and performs secondaryanalysis on key frame images or sequences to achieve information fusion output. In order to furtherimprove the utilization rate of computing power, by integrating heterogeneous computing powerresources, realizing virtualized scheduling and load balancing of computing power resources,dynamically allocating computing power resources according to the amount of task analysis andmodel scale, reducing the waste of computing power caused by excessive task dispersion, andachieving optimal allocation and efficient utilization of computing power.

In terms of hardware infrastructure, the Company provides comprehensive cluster managementsoftware and reasoning devices. It not only includes its own large model reasoning all-in-one device,but also supports the rapid deployment of large model intelligent computing center-level computingclusters on computing power cards or computing power servers at home and abroad. Through aunified computing system, full utilization of computing power can be achieved: it supports unifiedscheduling of multi-site and heterogeneous computing power, as well as on-demand storage andcomputing power allocation; it supports full coverage of cloud-edge-end product reasoning, supportscoordinated deployment of large and small models, optimizes overall computing power consumption,and accelerates the industrial application and promotion of large models.? The large model industry has been established, and its application value has been revealed

The industry large model has made significant progress in recognition accuracy, reducingcomputing power consumption and localization, and has entered the stage of industrial applicationand promotion from the technical research stage. Through continuous technological innovation, theCompany accelerates the research and application deployment of large models of end-side products.At the same time, it expands the application of large models in more industries, helps users improvequality and efficiency, enhance operational production efficiency, and accelerate the digital andintelligent transformation and upgrading of businesses.

(1) End-side product deployment

Multi-label recognition of scenario points will support scenarios expanded from 30 to morethan 60, covering over 90% of daily monitoring categories, significantly improving scenarioclassification efficiency and reducing manual screening costs. It also supports zero-sample

recognition and small-sample online fine-tuning, allowing users to add new categories online toimprove support for long-tail business scenarios, greatly enhancing the processing capabilities fordiversified scenarios and making the algorithm more accurate in practical applications.

Behavior recognition. It has achieved technical upgrades for functions such as making phonecalls, playing with mobile phones, smoking, falling down, and fighting, solving pain points such asinterference and perspective of similar actions. At the same time, it can recognize more semanticallycomplex actions through full-scenario understanding. Compared with the small model, false alarmsare reduced by over 90%. It has been successfully applied to projects such as a nursing home inJiangsu and an education bureau in Shandong to better meet the users' practical needs.Smoke and fire recognition. It has achieved a leap in results. The detection rate for difficultevents, such as smaller flames and thin smoke, has been significantly improved, with the overalldetection rate exceeding 98%. At the same time, false alarms are significantly reduced, with less thanone false alarm per video channel per month. It has been published on the Shensuan All-in-OneDevice. The large model solution for smoke and fire identification has been deployed and used inemergency projects in many provinces, and its application is being promoted in the remainingprovinces. The promotion and application will be accelerated in 2025, and the accuracy of alarms willbe greatly improved through secondary analysis of the fire hazard, reducing the cost of personnelverification.Perimeter algorithm. Relying on large model technology, it has completed comprehensiveoptimization and upgrades. Not only has the capture distance for targets such as people, motorvehicles, and non-motor vehicles been increased by more than 20%, but through technologicalupgrades, the algorithm can more accurately identify targets in complex scenarios. In particular,significant progress was made in distinguishing between humans and animals in a crawling state,thanks to the large model's powerful understanding of subtle movements and form factor differences.This series of upgrades has laid a solid foundation for building a more secure and efficient monitoringsystem.In addition, the edge-side large model technology has been upgraded in many algorithmsolutions, such as crowd situation and wearable compliance.

(2) Accelerate the pilot promotion of large models in the government and enterpriseindustries

The large mode of the transportation industry. It integrates multimodal capabilities, upgradesinteractive modes, achieves full-scenario enhanced analysis and visual understanding, and increasesindustry application value. Based on the powerful view understanding ability of the large model, it isupgraded from the structuring of people and vehicles to the analysis of the full scenario elements of

people, vehicles and roads, realizing the recognition of more than 90 types of traffic scenarioinformation such as traffic signs, markings, facilities, etc., and quickly expanding new businessessuch as traffic light operation and maintenance, facility inspection, and road maintenance.Breakthroughs in view recognition capabilities have been made to improve the availability of complextraffic events and traffic accident detection. The large model has expanded the types of accidentdetection from 4 to more than 20, from only supporting motor vehicle accidents to all-target accidentsinvolving motor vehicles, non-motor vehicles, and pedestrians. The application scenarios have beenexpanded from closed scenarios, such as highways, to open scenarios, such as urban roads, with anaccuracy rate increased by 70%, making it available for actual business operations. The road debrisdetection capability has been upgraded. Compared with the small model, not only is the all weatheraccuracy increased by 50%, it also supports debris type recognition, automatic determination of thedanger level of the debris, and hierarchical management of minor and serious incidents, significantlyimproving the conversion rate of effective alarm services and providing a basis for business decision-making. Multimodal interaction expands new business governance models, defines new functionsthrough text prompts, and quickly meets the differentiated needs of users. The semanticunderstanding of the large model supports functions such as event process description and eventcause analysis, such as traffic accident tracing and traffic event aggregation and correlation analysis,which effectively solves the pain points of isolated alarm events, inability to form a complete eventchain, and inefficient business use value in the industry.The large model of the urban governance industry. It accurately describes the characteristicsof many events in urban life and helps upgrade the AI capabilities of urban governance. In 2024, themodel was upgraded and iterated, with performance improved by about 50%. At the same time,compared with the small model, the average accuracy of common functions such as out-of-storeoperation and unlicensed stall vendors was still increased by more than 10%; the accuracy of fivedifficult events such as street begging and missing manhole covers was increased by more than 20%,providing stronger guarantees for urban appearance, public facilities management, etc. The numberof supported scenarios has increased from 10 to 20, expanding from urban streets, residential parks,etc., to more fields such as water banks, construction sites, etc., which improves the applicationscope of large models. In addition, the point governance algorithm continues to expand and optimize,and currently supports more than 60 point scenarios, while also supporting intelligentrecommendations for functional configuration solutions suitable for each point. In 2024, trials werecarried out in multiple pilot projects, including a certain service carrier in Shaanxi.The large model in the public security industry. It supports complex behavior recognition andalert, user-defined information retrieval, and natural language interactive intelligent agents. It realizes

the transition from perception to cognition, from understanding to execution, and reshapes the publicsecurity industry business. The large model can achieve complex behavior recognition byunderstanding subtle movements, related objects, and surrounding environment information. It canaccurately identify abnormal behaviors such as running, pulling rolling doors, and holding weapons,and its accuracy can be improved by more than 20% compared to small models. Based on full-scenario information extraction, it supports super image search and local image search functions,such as text search for images, text search for videos, and text-based behavior search, and canperform quick pick according to user-defined needs. It enables rapid querying of clues and greatlyimproves work efficiency compared to the previous method of manually reviewing recordings inmassive amounts of video. The intelligent agent launched by the large model in the public securityindustry can understand, find, and adjust quickly, reshaping the software form and interaction mode. Itsupports functions such as data retrieval, knowledge Q&A, task orchestration, etc., through naturallanguage. Data retrieval, based on the agent function call capability, realizes convenient human-computer non-equivalent data interaction retrieval and reduces software operation costs. KnowledgeQ&A, based on retrieval augmentation generation (RAG) technology, realizes the retrieval and queryof the industry knowledge base, lowers the threshold for acquiring industry knowledge, and reducesthe illusion of large models. Relying on a pilot project in Beijing, we continuously improved themodel’s functions and optimized its effects, and presented it at a national public security bureauconference, where it was highly recognized by experts in the field, including the Minister of Ministry ofPublic Security. After the meeting, more than 10 key units from various provinces and citiesconducted visits, and a large number of new business opportunities and pilot projects were createdacross the country.The large model in the power industry. It supports more than 70 common functionalrecognitions in the industry, such as instruments, smoke and fire, and foreign object detection,replacing the original 7 special small model functions, and realizes zero calibration configuration,reducing the algorithm deployment cycle by more than 90%. The large model uses the fusion ofimage and text features to improve the algorithm's feature expression capabilities, increasing theaverage accuracy by more than 20% compared to the small model. It enables zero-sample newfunction development through graphic and text prompt technology and supports customer-definedfunction deployment. It has now been implemented in a digital technology company in Guizhou toenhance the overall smart level of the industry.The large model in the mining industry. It is able to comprehensively monitor the operatingstatus of devices and assist the coal and steel industries in achieving intelligent upgrades. Comparedwith small models, its average accuracy has improved by more than 10%, and no rule parameter

configuration is required, which reduces the workload of personnel operation and maintenance,improving efficiency and quality. The solution has more than 20 smart recognition functions for theconveyor belt, which can analyze the operating status in real time, identify abnormal conditions suchas anchor rods, foreign objects, water coal, etc., and issue timely alerts to ensure smooth coaltransmission. At the same time, it supports ore quality analysis, including real-time analysis of coalblock size distribution, ore loading rate, etc., improves the utilization efficiency of conveyor belts, andenables users to timely control coal quality. In addition, the large model also supports real-timeanalysis of device operating status through graphic prompts, such as determining whether the deviceis in motion or stationary, and accurately capturing the start and stop moments. There is no need foradditional material collection and model retraining, which effectively reduces repetitive work, providesstrong support for device status identification and analysis, and helps enterprises make efficientdecisions. This solution has been implemented in a large coal mine project in Shanxi.

3.4.2 Data intelligence

The Company focuses on video IoT scenarios and relies on cloud native, big data framework,heterogeneous fusion computing, data middle platform, and other technologies to provide a one-stopdata intelligence base, including view and information fusion, integration, governance, development,and services. Based on technologies such as artificial intelligence, graph-digit fusion, data mining,and knowledge graph, we deeply explore the connotation of view data, build a high-value datawarehouse with graph-digit fusion, release the value of data, assist cities and enterprises in theirdigital and intelligent transformation and development, and jointly open up new development of digitalsociety and digital economy.

In 2024, the Company continued to explore the connotation of view data, activate data value, andinnovatively launch data analysis intelligent agents. Driven by view data value computing, it continuedto build industry-specific capabilities such as AI + big data fusion computing framework and diversedata heterogeneous computing, empowering data application innovation, and assisting domestic and

overseas government and enterprises in their digital and intelligent transformation.

(1) Driven by data value computing, we continued to build multi-source heterogeneous bigdata platform capabilitiesFocusing on data value computing, we continued to consolidate the capabilities of multi-sourceheterogeneous big data platforms, including products such as data computing platform, data hub,data discovery platform, data low-code platform, and big data platform, providing one-stop dataintegration, data governance, data development, data services, and other capabilities to meet thedigital and intelligent governance of governments and the digital and intelligent transformation ofenterprises. Guided by the strategy of focusing on video data value computing and stimulating thevalue potential of view data, in terms of data integration, the Company has built-in self-accesscapabilities for various video IoT data and accumulated a number of industry data standards; in termsof data governance, it has loaded intelligent governance algorithm capabilities to automatically realizedata mapping, standardization, and quality inspection, greatly improving governance efficiency; interms of data development, it provides real-time unified development and orchestration of offlinetasks, and relies on self-developed low-code engine technology for data applications to quicklyconfigure business applications, greatly improving the delivery efficiency of fragmented scenarios; interms of diversified heterogeneous data computing formed by unstructured data such as views andtexts and structured data, it builds an AI + big data fusion computing framework, a graph-digit fusioncomputing framework to break the limitations of traditional big data computing boundaries, and aheterogeneous computing power scheduling framework to break the computing power boundaries,making computing more efficient and business innovation more convenient.

(2) Continuously delve deeper into the connotations of view data to enable data businessinnovation

The Company has deeply explored the value of data, built a data system from data to informationand knowledge, developed a variety of data algorithms and industry-specific models, andaccumulated a large number of data element standards and view data assets. In 2024, the Companyrelied on the data intelligence system to innovate and launch data analysis intelligence, it has openedup the last link of data intelligence and provided conversational full-chain data analysis, naturallanguage modeling, attribution analysis and decision support, intelligent interaction for thousands ofpeople, and other capabilities to enable business innovation, assist government and enterprisecustomers in their digital and intelligent transformation, and drive business development in depth inthe industry.

3.5 Full Ecosystem

Ecological development is one of the Company's most important strategic initiatives. TheCompany has always been committed to building a cooperative and win-win ecosystem to co-createvalue with partners. The Company's purpose is to achieve customer success, adhering to the "fullecosystem" concept, anchoring on serving customer value realization, building comprehensive opencapabilities from technology, business, to services, and being fully open to industry customers anddevelopers through hardware, software, algorithms, services, and business ecosystems. We workwith ecological partners to open up new areas, create new momentum, and jointly create unlimitedpossibilities for industrial development, empower the digital and intelligent development of thousandsof industries, and achieve co-creation, symbiosis, and win-win results.

3.5.1 Business opening and ecological cooperation

3.5.1.1 Integrator customer business ecosystem

The Company continues to advance the construction of the integrator cooperation system andresource investment, prioritizing service and committed to providing partners with higher qualityproducts and solution services across the industry, upholding altruism and achieving win-win results.The company continues to improve the integrated management of customers and businessopportunities and strengthen front-line combat capabilities; it advocates releasing more industryresources to partners to jointly explore market segments; at the same time, it establishes anecological cooperation organization to integrate product R&D resources, improve ISV customercooperation efficiency, focus on valuable customers, and achieve more effective resource allocation,thereby improving customer satisfaction and cooperation stickiness.

During marketing activities, we empower and train customers, strengthen all-around ecologicalcooperation with integrator partners in technology, business, services, etc., and further enhance thedepth and breadth of cooperation with customers.

3.5.1.2 Business ecosystem for SMEs

In 2024, the Company comprehensively deepened the construction of the global SME ecosystem.Through a three-dimensional marketing network, partner growth plans, and precise resourceallocation, we work together with global channel partners to build a sell-out-driven model, strengthenchannel business penetration and coverage, optimize service layout, build a healthy and sustainableecological structure, and jointly achieve a leap in the business value of small and medium-sizedenterprises. In the domestic market, the Company continues to promote the "district and countylower-tier" strategy, deepen local operations, and build a new ecosystem for the low-tier market; inoverseas markets, it focuses on innovation in cooperation models, management models, and tools,

attaches importance to coverage in weak areas and depth in strong areas, and drives changes in thebusiness landscape.

3.5.1.3 Industry customer business ecosystem

In order to realize the digital transformation of the government, we integrate the advantages ofecological partners in the subdivided fields in terms of product solution innovation and integration,data resource application, etc., to create an "end-to-end closed-loop" solution and enhance thecompetitiveness of the solution. In terms of product solution innovation and integration, we deepencooperation with the industry ecosystem. For example, in the field of smart water conservancy, wefocus on typical environments and application scenarios, carry out product solution innovation, andimprove the scientific level of water conservancy decision-making and management. We cooperateextensively with the industry ecosystem in terms of data resource integration and application. Forexample, in the field of emergency disaster reduction, the Company gathers multi-source IoT data inmulti-frequency domain application scenarios to achieve dynamic video fusion and event linkage,improve auxiliary decision-making, and coordinate precise rescue.Aiming at the digital intelligence upgrade of enterprises, we integrate the ecological capabilities insubdivided fields, create full-scenario, high-value solutions, and serve the digital and intelligentscenarios. For example, in the industrial and commercial enterprise sector, we work with ecologicalpartners to jointly create professional solutions such as logistics warehousing, digital workshops,digital stores, and digintelligent marketing, enabling enterprises to build new quality productivity andimprove operational efficiency; in the cultural, educational, and health business sector, we provideecological partners with comprehensive IoT and AI capabilities, and empower the digital intelligenceof the industry through technical and business cooperation.

3.5.2 Technical openness and ecological cooperation

3.5.2.1 Software open platform and ecological cooperation

In terms of the technology open system, the Company has accumulated core capabilities basedon the three major areas of IoT perception, view intelligence, and data intelligence. It continuouslyoptimizes the open system capability for partners, continuously enriches the content of ecologicalproducts and ecological solutions, and reduces the technology integration costs of partners. Throughtechnical support, we provide partners with various technical services, empowerment support, andtraining certification, continuously reducing partners' learning costs and ensuring that partnersmaximize the use of various capabilities provided by the Company's open software system and profitfrom them. Through the above-mentioned value co-creation and sharing actions, the breadth anddepth of the technical cooperation between the two parties have been continuously enhanced,

ultimately forming a highly trustworthy and stable technical ecosystem.

At the market cooperation level, the Company classifies partner needs based on region, industry,and customer characteristics, carries out targeted cooperation, and continuously explores efficientcooperation models to ensure continuous value creation for partners. By establishing hierarchicalcustomer management organizations, sharing pipeline resources, building ecological shelves, jointmarketing activities, and brand cooperation, we promote the collaborative construction of solutionsand joint technological innovation between the two parties.In 2024, relying on the full-process support of the digital system, the Company has built acomprehensive software ecological resource operation system to enable the digitalization ofecological operations and the standardization of process management, and to promote the orderlyimplementation of ecological partners' business expansion.

3.5.2.2 Hardware open platform and ecological cooperation

The Company's open hardware ecosystem mainly includes the opening of device hardwarecapabilities (DHOP), the opening of third-party platform access capabilities (cross-platform unifiedprotocol, device network SDK, HTTP API), as well as various ecological cooperation solutions suchas HarmonyOS, Ora, and others.

Opening of device hardware capabilities: It supports software and hardware decoupling,provides hardware resource services such as storage and computing power, multimedia functionservices, AI acceleration engine services, various device basic information services, etc., to meetvarious custom business needs of third-party developers, and provides a rich tool development kitfrom model conversion, compilation, packaging, debugging to operation and maintenance, reducingthe difficulty of third-party development. In 2024, the Company signed cooperation agreements withmany algorithm manufacturers around the world to develop applications in various industry scenariosthrough mutually beneficial cooperation, effectively meet the business needs of end customers, andprosper the AIoT ecological application market. In addition, the hardware open platform supportsmainstream domestic chips, and the product matrix landing cameras, PTZ cameras, buildings,centralized storage, and other edge devices. In order to explore new intelligent scenarios, thesupporting company opens the Ginn training server and algorithm warehouse to achieve a full-linkclosed loop for the rapid implementation of new intelligent scenarios.

Cross-platform unified open protocol: It mainly includes the device open API protocol (EZAPI),the object model access protocol (STAP), etc. The device open API protocol provides basic functionalinterfaces such as system management, audio and video transmission and storage, AI intelligentanalysis, and a variety of industry business interfaces, to help third parties quickly connect. Theobject model access protocol is designed to address the diversity and resource limitations of devices.

It provides complete device descriptions and efficient data transmission, facilitating the rapidnetworking of IoT devices.HarmonyOS ecosystem cooperation: The Company actively participates in industryorganizations such as the OpenAtom Foundation and the HarmonyOS Ecosystem PromotionCommittee, tracks the development of the HarmonyOS ecosystem industry, and conducts in-depthresearch on OpenHarmony certification requirements and 6 industry HarmonyOS certificationrequirements. We have promoted technical cooperation with multiple hardware suppliers andsoftware service suppliers. As of the end of 2024, 15 hardware products in six categories havepassed the OpenHarmony certification, and several other products have passed the proprietaryindustry HarmonyOS certification.

3.5.2.3 Algorithm opening and ecological cooperation

In this trend of digital transformation, many clients from different industries use AI to improveproduction efficiency. The Company provides targeted empowerment tools for partners with differentlevels of needs, and at the same time, introduces more algorithm ecosystem manufacturers to bettermeet the increasing scenario-based needs in various industries. It pools the power of the industry toaccelerate the industrialization of artificial intelligence and the digital and intelligent transformation ofthe industry, and works with partners and customers to jointly build an artificial intelligence industryecosystem.

Mature algorithm, out-of-the-box: The Company's AI algorithms have accumulated a largenumber of mature solutions in industry business applications, with the following advantages to help

partners expand their business: a wide range of choices, developing dedicated algorithm solutionscovering different industries to meet the different needs of various industries; good results, polishedby actual business, with strong scenario generalization capabilities, and has won championships ininternational competitions in the fields of target detection and target recognition; simple to use,selecting algorithms as needed in the algorithm warehouse and simply configuring them to achievefunctions; save time on deployment and reduce usage costs by optimizing technology.

AI open platform, build partners’ AI capabilities, and enable independent development: Forusers with low thresholds and no algorithm capabilities, they only need to input relevant data on theAI open platform to efficiently complete the desired algorithm function development with a lowthreshold, help build users' algorithm development capabilities, enable users to developindependently, and implement it in products for commercial realization. The AI open platform providesa one-stop graphical AI algorithm development platform for partners, which has flexible platformdeployment, zero-code development, efficient training, online verification, and one-click deploymentcapabilities.

AI open toolchain, accelerate the commercialization of partner algorithms: It is mainlyaimed at customers who can develop algorithms themselves but cannot develop product hardware.Users can develop algorithms through self-research, and then use the "Ginn Artificial IntelligenceAlgorithm Deployment Tool" to deploy the developed algorithms to the Company's hardware products,and use DHOP to implement the development and implementation of business software products,and quickly productize the algorithms.Introducing ecological algorithm manufacturers to accelerate the fulfillment of industryscenario-based algorithm requirements: The Company has established comprehensive algorithmresearch and engineering capabilities and possesses efficient algorithm supply capabilities. However,compared to the various fragmented demands in the industry, the Company's supply capacity stillneeds to be improved. At the same time, in order to better enhance the input-output efficiency, theCompany strengthens cooperation with industry algorithm ecosystem manufacturers. Through closecollaboration between both parties, it provides industry users with more cost-effective and high-qualityintelligent products and solutions.

3.5.3 Service opening and ecological cooperation

The Company consistently upholds altruism, empowers ecological development, and is steadfastin growing together with its partners. More than 100 talent development and training centers forcollege-industry cooperation have been established in provinces and regions nationwide to cultivateand supply professional and skilled talents in AIoT for industry and ecological partners, and provideefficient service support for customers and the market. We have built the Dahua Ecosystem LearningCenter, focusing on technology empowerment and comprehensive business enablement, to assistpartners in business expansion and improving delivery efficiency, ensuring end-customer satisfaction.

3.6 Software Products and Business

With the continuous implementation of technologies such as IoT, big data, and large models, andthe gradual improvement of data industry standards by major countries around the world, thetechnical system and circulation system of data elements are becoming increasingly mature. Amongthem, unstructured data mainly based on video images has become an important breakthrough indata value realization due to its diversity, circulation, scale, and privacy.

As a leading enterprise in the AIoT industry, the Company has always been committed topromoting the value-added process of data elements. Faced with the opportunities and challengesbrought by data elements, the Company has completely upgraded the intelligent IoT data platform 2.0from the dimensions of multi-dimensional perception, multi-connection, view intelligence, and openplatform. It has deeply integrated the Dahua large model and graph-digit fusion capabilities, built

efficient software engineering capabilities, and released two major industry product systems, UrbanTianji and Enterprise Tianyan, to comprehensively assist efficient urban governance and digitalintelligence upgrades for enterprises.

3.6.1 Deeply excavate the value of the software business and comprehensivelyupgrade core capabilities? Build intelligent competitivenessIn terms of product research and development, the Company actively integrates cutting-edgetechnologies such as large models, digital twins, low code, and graph-digit fusion to continuouslyimprove product competitiveness. Empowered by the Dahua large model, the view intelligenceengine realizes efficient processing and analysis of massive unstructured data, significantly improvingthe intelligence level of security scenarios. At the same time, the Company has built a powerfuldevelopment toolchain based on the HuaDesign system and microservice architecture platform, andthrough the low-code business engine of the Firefly Component Mall, it can quickly respond to theneeds of scenarios such as enterprise parks and digital twin, and achieve flexible and efficienttechnology reuse and business assembly.? Close to customers, empowering the frontlineIn terms of service, the Company always adheres to the "customer-centric" concept, promotesthe deep integration of software development centers in various provinces and regions with front-linebusinesses, and stays close to customer needs. Through efficient software engineering capabilities,the Company can quickly combine emerging industry technologies to achieve business innovationand scenario implementation, creating greater value for customers.? Join hands with partners to co-create the future of the industryBased on the intelligent IoT data platform, the Company has formed three cooperation modelsaround ecological customers: solution co-construction, product co-creation, and capability sharing.Through in-depth collaboration with partners, the Company jointly promotes the digital intelligenceupgrade of the industry, helps customers grow bigger and stronger, and achieves the ecological goalof "co-construction, win-win, and symbiosis".

3.6.2 Deepen the data industry chain and jointly create a prosperous data elementmarket

Data elements have become the core engine driving social and economic development. However,the current AIoT data element industry chain with video as the core still faces challenges such asinsufficient coordination between upstream, midstream and downstream, and hindered value release.As a technology service provider deeply rooted in the industry, the Company positions itself as a dataresource provider, assetization practitioner, and commercialization enabler. It works with ecologicalpartners to break through industry bottlenecks and help build a prosperous data element market.? Problems facing the data element industry chainIn terms of upstream data acquisition, it faces the dilemma of scenario complexity and devicefragmentation. On the data supply side, there are problems such as fragmented perception scenarios,non-interoperable IoT device protocols, and difficulty in cross-network data interconnection. Thecollection efficiency and quality of massive unstructured video data need to be improved urgently; interms of midstream data governance, there is an imbalance between intelligent long-tail demand andcollaborative efficiency. Data processing service providers need to deal with pain points such asinsufficient adaptability of intelligent algorithms to scenarios, low efficiency of end-edge-cloud networkresource collaboration, and difficulty in multimodal data fusion and analysis; in terms of downstreamdata application, there is a lack of value presentation and circulation mechanisms, and the existingdata services in various industries are difficult to match dynamic business needs, resulting in aprominent "data sleep" phenomenon.? Empowering data elements to realize value throughout the entire lifecycleTo address the pain points in the industry chain, the Company used technology and ecology asdual drivers to build solutions covering the entire lifecycle of data.

We broke through the upstream, built multi-dimensional perception and full-domaininterconnection, and realized the standardized collection of video, IoT and other data in complexscenarios through multimodal perception terminals and a unified IoT protocol stack; relying on cross-

network secure interconnection technology, we connected private networks, government clouds andedge devices to build a full-domain data base. We tackled tough issues in the middle platform,realized intelligent collaboration and open computing, continued to build a view intelligence engine,integrated industry algorithm warehouses and low-code development tools, and met the agiledevelopment needs of long-tail scenarios. At the same time, we built a distributed computingframework to achieve elastic collaboration of lightweight reasoning on the end-user side, real-timeanalysis on the edge side, and deep training on the cloud side. We activated downstream to meetscenario innovation and ecosystem co-creation, and work with leading industry customers and ISVpartners to incubate data application paradigms in various industry scenarios, promoting efficienturban governance and digital and intelligent transformation of enterprises.

3.6.3 Upgrading the intelligent IoT data platform to empower urban governanceand digital and intelligent enterprises

With the rapid development of the IoT, large models, and big data technologies, the Companyhas comprehensively upgraded its intelligent IoT data platform based on its deep insight into urbangovernance and enterprise needs. With data full lifecycle management as the core, it has promotedthe process of data as an asset, data as a resource, and data as a commodity, injecting new impetusinto high-quality development.? Empowering the entire data workflow to release new intelligent valueIn terms of data as a resource, relying on the full-domain 6D multi-dimensional perceptiontechnology and multi-connectivity capabilities, we have achieved efficient aggregation of data acrossthe entire network; combining AI technology to enhance data acquisition accuracy and contentdescription capabilities, we have built a dynamic data base for cities and enterprises. In terms of data

as an asset, the view intelligence engine deeply integrates the "Dahua large model", breaks throughthe boundaries of traditional visual cognition, realizes autonomous analysis of the entire scenario, andsupports the implementation of complex scenarios with higher generalization capabilities andaccuracy; through the data intelligence engine, it creates a graph-digit fusion computing system,breaks through the barriers between view data and business data, and activates the deep value ofdata. In terms of data as a commodity, through the upgrade of software engineering capabilities, wehave achieved the free orchestration of industry scenario modules, large models, and graph-digitfusion technologies, built two major product systems, "Urban Tianji" and "Enterprise Tianyan", andenabled application innovation in thousands of industries.? Innovating the business paradigm of government and enterprises, moving towards a newstage of cognitive intelligenceIn the field of urban governance, through dynamic perception, intelligent analysis, and decision-making closed loops, we helped urban governance achieve self-optimization, learning, and evolution,and promoted the transition of the governance model from "perceptual intelligence" to "cognitiveintelligence". Focusing on the four dimensions of "public security, orderly urban management, greendevelopment for the benefits of the people, and governance efficiency improvement" in urbanbusiness, the Company launched the Tianji series of products, with CV large model, computingnetwork self-intelligence and graph-digit fusion technology as the core, to create four functionalmodules: industry model intelligent computing engine, twin scenario generation engine, data assetmanagement service and data element operation center.In the field of enterprise services, the Company took the Tianyan series of products as the core,providing four engines: data operation management, intelligent computing decision-making, scenarioapplication construction, and digital twin interaction. Relying on the practical experience of tens ofthousands of industry projects every year, the Tianyan series has accumulated massive businessparadigms and deeply integrated the Dahua large model capabilities to help enterprises achievehuman resource replacement for high-risk and high-intensity positions, production safety risk alerts,and management decision-making optimization, and promote companies to transition from"comprehensive security" to "digital and intelligent operations".

3.6.4 Upgrading the view intelligence engine based on the large model to realizethe self-intelligence of the computing network

In the AIoT industry, scenario fragmentation and diversified demands have always beendifficulties in intelligent upgrades. The current AI market has a variety of product forms, andalgorithms and computing power are difficult to coordinate, resulting in wasted customer investment.In addition, traditional AI algorithms rely on a large amount of labeled data and are unable to meet thecustomized needs of long-tail scenarios, resulting in a large number of scenarios being unable to beeffectively covered, which restricts the industry's intelligent process. To this end, the Companyinnovatively launched the Dahua large model, empowering the intelligent long-tail market in the AIoTindustry with technological breakthroughs and opening a new chapter of global intelligence.Build a computing power "network" to achieve optimal resource allocationIn response to the pain point of scattered computing power resources and low utilization, theCompany innovatively proposed a unified computing power quantification and pooling solution toeffectively shield the differences between different chip architectures and integrate scatteredcomputing power resources into "one network". By accurately sensing computing power needs,dynamically scheduling and allocating computing power resources, we have achieved coordinatedoptimization of algorithms, computing power, and data, maximized resource utilization, and reducedcustomer investment costs.Technology leadership: Dahua large model reshapes the intelligent capabilities of AIoTThe Dahua large model independently developed by the Company realized low-sample learningand rapid distillation of small models through massive data pre-training and industry small data fine-tuning, greatly reducing the dependence on labeled data. Whether it is smart city, traffic management,energy, education, community, or other segmented scenarios, it can be quickly adapted to meetpersonalized needs. The collaborative processing of large and small models not only ensures highprecision but also improves computing efficiency, truly realizing "one network for multiple uses andone network for multiple capabilities".

3.6.5 Public cloud makes management more efficient and operations moreintelligent

The public cloud business has completed the 3.0 architecture upgrade, building a full cloudproduct system for channels, industries, and ecosystems based on a cloud-based low-codedevelopment middle platform, providing customers with rich SaaS applications and creating efficient,open, and minimalist cloud product capabilities. The cloud middle platform includes the low-codedevelopment platform Dahua IoT Studio and six core middle platform capabilities, making it easier toget devices to the cloud and making business development more efficient. Based on the cloud middleplatform, the Company provides SaaS series products such as Yunlian, DoLynk, and Yunrui tochannel partners. With the advantages of low-cost, high elasticity, scalability, and configurable SaaSservices, it provides enterprises with a new operating model, transforming from manual to "data +intelligence" upgrades, and enabling enterprises to transform into digital and intelligent management.

Cloud ecosystem empowers domestic enterprises to upgrade their digital intelligence

For domestic customers, Dahua CloudLink serves small and medium-sized enterprises.Focusing on online devices, online users, and online services, it drives massive devices to the cloudand provides one-stop product solutions covering video monitoring, access control, attendance, videointercom, visitor management, alarm linkage, etc. It goes deep into segmented scenarios such ascorporate offices, residential communities, small chains, factory parks, hotels and homestays, scenicareas, construction sites, etc. to create scenario-based application solutions, injecting strong impetusinto the digital and intelligent transformation of small and medium-sized enterprises.

DoLynk Enterprise serves industry users and is deeply engaged in the SAAS service field. Withits scenario-based and professional advantages, it helps enterprises to move their digital andintelligent transformation to new heights. By continuously exploring customer usage scenarios and

refining core business modules such as video cloud intelligence, store inspection management, parkaccess, and unattended parking, we can meet differentiated needs with refined services and ensurethat enterprise operations and management are accurate and efficient.Relying on Dahua Cloud Developer Platform, the Company has opened up diversifieddevelopment resources represented by low-code product development tool, Yinhe low-code IoTaccess tool, and Beidou online operation, maintenance, and testing tool to ecological customers,helping ecological customers to build innovative products that adapt to market demand andcommercial value at low cost. At the same time, Dahua Easy Installation serves its partners, focusingon the key links of product debugging, and fully optimizing tool design. It significantly improvesdebugging efficiency with professional and streamlined operating procedures, accelerates projectimplementation and delivery, and provides partners with better quality and more efficient support tojointly build a wide-area AIoT ecosystem.Cloud platform creates an intelligent connection foundation for global customersFor overseas customers, the Company provides DoLynk overseas cloud services, focusingprecisely on the field of AIoT, empowering enterprises and developers in all aspects, and is committedto providing an accurate, intelligent and convenient platform. From the perspective of connectingdevices, solutions, and business partners, we deeply create a one-stop scenario-based solutioncovering multiple applications such as cloud video management, device operation and maintenance,data communication network, wireless alarm, video intercom, access control and attendance, andchain operation, to help enterprises refine process control, achieve cost reduction and efficiencyimprovement, activate the digital transformation engine, and move towards a new level of leanoperation.At the same time, we provide installers with convenient and efficient quick-start tools to improvedevice debugging efficiency, ensure project delivery, and lower the threshold for entry into the industry.Adhering to the principle of openness, DoLynk provides developers with extremely simple AIoTintegration capabilities. Relying on a convenient construction process, developers can quickly buildtheir own AIoT cloud platform, seamlessly access rich functional modules in one stop, and acceleratebusiness innovation and iteration. The Company will make every effort to build a marketing chain thatdirectly reaches the terminal, gain in-depth insights into demand, integrate cutting-edge AIoTtechnologies into business scenarios, continue to build an AIoT foundation for global customers, andjointly create a new future of the Internet of Everything.

3.6.6 Co-build an industry innovation ecosystem and share a digital and intelligentfuture

The AIoT industry is accelerating its transformation from "single product competition" to

"ecological collaborative innovation". As a practitioner of the industry's digital and intelligenttransformation, the Company takes the intelligent IoT data platform as its core foundation and workswith ecological partners to explore the three major cooperation models of "solution co-construction,product co-creation, and capability sharing", promote the efficient integration of industrial chainresources, and build an open and win-win new AIoT ecosystem.Solution co-creation: complementary advantages to build closed-loop competitivenessBased on the deep vertical cultivation capabilities of ecological partners and the Company'splatform technology advantages, the two parties achieved the rapid implementation of scenario-basedsolutions through "modular assembly". For example, the integrated event management and disposalsolution launched by the Company in cooperation with ISV deeply integrates the real-time perceptioncapabilities of the intelligent IoT data platform with the event management platform of the ISV,connects users, permission, and data links, and forms a "risk alert-collaborative disposal-intelligentreview" business closed loop to help customers improve emergency response efficiency. This type ofcooperation not only fills the business gaps of a single enterprise but also builds differentiatedsolution competitiveness through ecological collaboration.

Product co-creation: technology empowerment, activating the value of data elements.Relying on the low-code development engine and open interface of the intelligent IoT dataplatform, ecological partners can efficiently develop vertical industry joint products and quickly reachthe market through our global sales network. In the medical field, to address the pain points of datasilos and privacy security, the Company and ISV jointly launched a privacy computing platform,innovatively applying multi-party secure computing (MPC) and trusted execution environment (TEE)technologies to achieve "available but invisible" data across institutions, helping medical researchinstitutions to complete joint modeling and analysis without leaking raw data, promoting theimprovement of scientific research efficiency, and becoming a benchmark for the "security base" forthe circulation of data elements.Capability sharing: agile innovation, empowering business upgradesThe intelligent IoT data platform provides standardized capability modules such as AIoTperception, big data, and intelligent analysis, which ecological partners can flexibly call and quicklybuild customized applications. In the field of urban emergency management. By integrating theplatform's video analysis, plan management, and digital twin capabilities, ISV partners can quicklydevelop urban disaster simulation systems, shortening the development cycle from months to days,and reducing partners' development thresholds and trial-and-error costs.The Company will continue to improve the openness and compatibility of the intelligent IoT dataplatform and support partners in joint research and development in cutting-edge fields such as AI

large models and digital twins. Only by building a technological foundation together with ecologicalpartners, expanding scenario boundaries, and sharing data value can we truly achieve the leap of thesecurity industry from "connecting everything" to "intelligently connecting all industries", allowing theresults of digital intelligence to benefit thousands of industries.

3.7 Security and Privacy Protection

The Company attaches great importance to cyber security and privacy protection, establishing aNetwork and Data Security Committee as the highest decision-making organization tocomprehensively plan, coordinate, and oversee the development and implementation of cybersecurity efforts from the Company's strategic level. As one of the Company’s five major researchinstitutes, the Cyber Security Research Institute is an independent organization within the Companyfor cyber security supervision and capacity building. It focuses on areas such as security engineeringcapability building, key security and privacy technology research and application, and securityemergency response services. By combining technological innovation with engineering capabilities, itensures the security and reliability of the entire series of products, platforms, and services.

3.7.1 Security Products and Solutions

The Company has launched a series of products including security database, video protectionsystem, video security hub, video encryption server and video security certificate, which integratesecurity protection service capabilities such as video terminal security access, video stream integrityverification, video stream encryption, user and video data secret key management, CA certificate andsecurity authentication.

The Company continues to improve and optimize the security solution for secret evaluation.Focusing on the full lifecycle of data acquisition, transmission, storage, sharing, and use, it integratescryptographic modules and products with commercial cryptographic certification qualifications toachieve end-to-end encryption protection of video, access control, and other data. It supports strongsecurity capabilities such as source encryption, encrypted direct storage, encrypted secret key, two-factor authentication, national secret-level SSL & two-way identity authentication, and provides userswith optional password machines and secret key management servers to help information systems indifferent scenarios better meet the security requirements of secret evaluation standards.

3.7.2 Security technology and engineering

The Company continues to increase its research investment in key technologies such as trustedcomputing, end-to-end encryption, and privacy protection. Relevant technological achievements havebeen integrated and applied in products to further enhance the security capabilities of products andallow users to enjoy better security protection.During the product development stage, the Company continues to promote and improve theconstruction of the secure software development lifecycle, strengthen the security managementrequirements and capabilities of the software development process, and improve and optimize thesecure software development process suitable for the Company through in-depth security activitymaturity assessments.

During the lifecycle of the product, the Company's product security incident response teamPSIRT provides users with 7x24 hours security emergency response services to maximize theprotection of users' security rights and interests. At the same time, PSIRT actively participates inindustry and public activities and has joined multiple authoritative vulnerability management andtechnology organizations, including the China National Vulnerability Database (CNVD), the ChinaNational Vulnerability Database of Information Security (CNNVD), the China National Industrial CyberSecurity Vulnerability Database (CICSVD), and the Ministry of Industry and Information Technology'smobile internet APP product security vulnerability professional database, etc., fully utilizing its role asa member unit within the organization to establish a collaborative mechanism for sharing cybersecurity threat information.

3.7.3 Data security and privacy protection

With the promulgation of laws and regulations such as the Cybersecurity Law of the People'sRepublic of China, the Data Security Law of the People's Republic of China, the Personal InformationProtection Law of the People's Republic of China, and the EU's General Data Protection Regulation,the global cyber security, data security, and privacy protection supervision and compliancerequirements are becoming increasingly stringent. The Company has adopted a pragmatic attitudeand strategy to actively respond, adhered to the concept of "active, open, cooperative, andresponsible", formulated a complete security and privacy management system, and relied on maturesecurity engineering capabilities to strictly implement in the planning, design, development, delivery,and other stages of the product to ensure product security and privacy compliance.

In the face of the EU NIS2 Directive, EU RED Directive and UK PSTI Act that have come intoeffect or are about to come into effect, the Company established a special compliance team duringthe reporting period to closely track regulatory developments and adjust compliance strategies in atimely manner. At the same time, we invited third-party organizations to cooperate, deeply interpretedregulatory requirements, and proactively conducted product testing and evaluation based on relevant

safety standards, formulated compliance measures that fit business scenarios, and helped customersbetter comply with laws and regulations.In addition, the Company actively cooperated with third-party authoritative organizations andintroduced external assessment and certification. We have passed ISO27001 information securitymanagement system certification, ISO27701 privacy information management system certification,ISO27017 cloud service information security management system certification, ISO27018 publiccloud personal privacy information security management system certification, CSA STAR certification,ETSI EN 303645 certification, CC EAL3+ certification, commercial encryption certification, etc.

4. Main Business

4.1 Domestic Business

4.1.1 City-level business

4.1.1.1 Business overview

With the advancement of urbanization, cities have become the core carriers of government digitalconstruction, and the whole country is faced with the urgent task of building resilient cities. Urbanconstruction faces multiple risks, such as natural disasters, public security incidents, and challengessuch as the increasingly complex urban operation systems. To meet these challenges, governmentdigital construction requires the use of IoT technology, big data technology, artificial intelligencetechnology, cloud computing technology, etc., to improve urban safety levels, promote sustainabledevelopment, and enhance governance capabilities and residents' quality of life.Under the general trend of improving the quality and efficiency of the government's digitaltransformation, the Company keeps pace with the industrial development of digital infrastructureconstruction, value of data elements, and implementation of digital applications. With video IoTperception data as the core, it focuses on the four major urban business sectors of public security,orderly urban management, governance efficiency improvement, and green development for thebenefits of the people. Through digital and intelligent integration and application innovation, it escortsthe implementation of urban business, helps to improve urban management efficiency, and providesscientific decision-making support.

4.1.1.2 Core strategy

The Company is committed to implementing digital and intelligent capabilities in numerous urbanscenarios, focusing on the main channel of AIoT business, and continuously exploring theimplementation of scenarios in which digital intelligence empowers urban digital innovation. Focus ondeploying new opportunities in industries such as integrated transportation, natural resources, smartwater conservancy, emergency management, etc., we deeply understand industry scenario needs,

focus on the implementation of digital and intelligent capability scenarios, continue to build industry-leading product and solution capabilities, and empower urban development and governance modelinnovation with digital intelligence. At the same time, the Company continues to deepen its ecologicalcooperation strategy, continuously strengthens technology co-creation and business sharing aroundcore customers, industry experts, outstanding manufacturers and other partners in the urbangovernance business field, jointly empowers efficient urban governance, and creates an AIoTecological community of "co-construction, win-win and symbiosis".

(1) Building a digital and intelligent urban foundation

Based on AIoT2.0 and the intelligent IoT data platform 2.0, the urban platform utilizes the unifiedbase of Urban Tianji, focusing on capabilities such as industry model intelligent computing, twinscenario generation, intelligent computing decision-making, and scenario application construction. Ithelps users achieve efficient urban governance, autonomous urban operations, and ecologicalcollaboration around multiple urban scenarios. Combining the best business practice paradigms invarious fields of the industry, it quickly builds a digital intelligence system with comprehensivemanagement decision-making capabilities. It helps urban governance achieve self-optimization, self-learning, and self-evolution, and gradually move towards a new stage of cognitive intelligence anddecision-making intelligence.

(2) Deepen the implementation of scenario-based business

Based on the unified platform of City Secret, and combined with years of deep experience inbusiness areas such as smart transportation, social governance, smart emergency response, smartwater conservancy, natural resources, etc., we have developed scenario-based solutions for various

industries and fields, continuously advancing the process of urban digitalization, enabling efficienturban governance, and striving to achieve a new picture of urban governance with public security,orderly urban management, governance efficiency improvement, and green development for thebenefits of the people.

4.1.1.3 Industry value practice

The Company has always adhered to the social mission of "making society safer, making citiesmore orderly, making governance more efficient, and making life better". We continue to deepen thedigital and intelligent practice of business in the fields of public security, orderly urban management,governance efficiency improvement, green development for the benefits of the people, etc., relying onAIoT2.0 and intelligent IoT data platform 2.0 to activate the value of urban IoT data elements andempower urban digital transformation with digital and intelligent innovation.

(1) Making society safer

The Company focuses on the goals of social stability and order, people's safe travel, the stabilityof people's lives, and enterprises' peace of mind in production. It actively fulfills its social mission andis committed to building a higher level of safe China. Focusing on the four business areas of publicsafety, traffic safety, life safety, and production safety, we opened up the "urban lifelines" such aswater, electricity, gas, heat, and transportation, and built a safety "immune" system for the urban lifebody. Digital and intelligent empowerment helped upgrade the city's overall safety system, strengthenthe city's lifeline, and build a safe life body.

Public Safety: We focused on the country's "14th Five-Year Plan", focused on deepening thecomprehensive visual system, actively embraced emerging technologies, and continued to deepenthe combination of AIoT technology and public security industry scenarios, provided customers withmore convenient urban IoT capabilities, smarter integrated connection capabilities, and more efficientsocial governance capabilities, and provided security protection in all aspects from cities to villages,from highways to railways, from forest protection to river basins, to help modernize urban publicsecurity systems and capabilities. In 2024, the Company focused on the mining of view data elements,and relied on the view large model to continue to help customers improve the depth and efficiency ofdata utilization, provided strong protection for the people and public security, and contributed tobuilding a safer China at a higher level.

Traffic safety: Guided by the "14th Five-Year Plan" National Road Traffic Safety Plan, andfocusing on the three major scenarios of refined urban traffic safety management, highway safetyprevention and control, and rural safety grassroots management, we further deepened the "reductionin quantity and control of major traffic accidents" in traffic accident prevention, created a traffic safety

management model that covers all scenarios and combines multiple means, and deeply explored theapplication of big data and AI technology in the field of traffic management. Focusing on governancescenarios, the "Yizhen" series of cameras were launched in 2024 to solve problems such as stronglight interference from headlights and video jitter, restore the "Zhen" colorful world of highways aroundthe clock, and truly achieve all weather intelligent monitoring of highways; focusing on vehicle-roadcollaboration, we have realized a closed loop of roadside applications such as holographic perception,traffic autonomy, and situation monitoring; focusing on road network monitoring, starting frompanoramic monitoring and video clouding, we have put forward targeted video encryption solutionsand lightweight video cloud hub products to help the operation status of highways to be accurate,efficient, safe, and smooth.Life safety: The Company focused on the safety monitoring scenarios of urban lifelines that areclosely related to life, such as water, electricity, gas, heat, and transportation, with the goal of"monitoring, alerting, and quick disposal". By building front-end IoT perception, video intelligentanalysis, and urban safety index models for urban infrastructure, the Company monitored urbaninfrastructure, used big data technology to analyze and predict disaster data, and used artificialintelligence technology to provide scientific decision-making suggestions, effectively reducing theprobability and impact of disasters and improving the level of urban safety. We have realized onlinemonitoring of the safe operation data of lifeline projects and intelligent analysis and judgment ofvarious risk factors, meeting the integrated business closed loop of risk classification alert, trendintelligent judgment, and event linkage disposal, promoting the transformation of safety supervisionfrom "passive response" to "active supervision", and creating a safety "immune" system for urban life.Emergency disaster reduction: In response to the information construction requirementsissued by the Ministry of Emergency Management in 2024, the Company's first digintelligent twinengine represents a new generation of intelligent emergency management model. The engine buildsa three-dimensional scenario model and integrates multi-source heterogeneous data to create anapplication environment where the virtual and the real coexist. This innovative technology canintelligently realize dynamic video fusion and event linkage in special scenarios such as emergencychemical parks, mining enterprises, and high-risk areas for natural disasters, thereby improvingauxiliary decision-making and coordinated command capabilities; the thermal imaging “four-warehouse” technology assists in precise rescue, combining visible light, thermal imaging, laser filllight, and ranging. This technology can ensure the accuracy of fire point identification under extremeconditions such as thick smoke and strong light; through intelligent equipment such as intelligent fire-fighting robots, UAVs, and mobile arming PTZ cameras, remote monitoring and task coordination canbe achieved, truly creating an integrated air-ground-space emergency disaster alert and rescue

system.In the field of production safety: With "source control, process supervision and gradeddisposal" as its core idea, the Company focused on key regulatory areas such as hazardouschemicals, mines, industry and trade, fireworks and firecrackers, and hazardous chemical parks, andprovided support for front-line employees, enterprise leaders, and regulatory departments in theareas of major hazard source supervision, operation process risk alert, and emergency rescue. Wecontinued to pay attention to special rectification of production safety focusing on hazardouschemicals, mines, fire protection, transportation, urban construction, industrial parks, hazardouswaste, etc. In 2024, we strengthened and upgraded the production safety risk monitoring and alertsystem in key industries, assisted in the dual prevention work mechanism of production safety riskclassification management and hidden danger investigation and control, and effectively protected theproduction of enterprises and the safety of people’s lives and property.

(2) Making cities more orderly

Focusing on urban traffic management and urban infrastructure management, the Companyintegrated various digital capabilities such as holographic perception, intelligent computing, graph-digit fusion, and visual large models, and provided advanced digital and intelligent solutions forbusiness areas such as smooth urban traffic and urban infrastructure management, to build astandardized, orderly, convenient, and efficient urban management system.Smooth urban traffic: Co-create an autonomous urban transportation service system and openup the entire business chain of holographic perception, graph-digit computing, simulation anddeduction, intelligent decision-making, and precise services. Focusing on intersection scenarios, all-factor traffic data, such as machines, vehicles, people, and infrastructure, are collected, and the trafficrisks/congestion levels at intersections are actively analyzed. The traffic light signal timing isintelligently adjusted, and the autonomous effect is objectively and quantitatively evaluated tooptimize the operation efficiency and safety level of intersection traffic. Relying on the city-levelholographic perception network, the traffic operation situation of the urban road network is activelypredicted, and intelligent and autonomous decision-making of city-level traffic is realized, whichpromotes the autonomy of traffic management and the intelligence of services, and ultimately drivesthe transformation of urban traffic management from "manual management" to "operation autonomy".Urban infrastructure management: Taking the airport scenario as an example, green airportenergy management automation has become the focus of airport construction. Focusing on the fourmajor business scenarios of energy monitoring, control, analysis, and decision-making in the airportenergy center, the Company provided smart energy automation management system solutions forairport energy center customers by integrating intelligent patrol robots and back-end intelligent

analysis capabilities. At a 4F-level airport, through the intelligent transformation of 6 35kV substations,boiler rooms, and cold machine rooms in the airport, online collection, unmanned inspections, andautomatic control of airport energy management were realized, greatly improving managementefficiency and reducing management costs.Urban parking management: In order to help improve the national urban comprehensivetransportation system, perfect the layout of the facility network, and enhance operational efficiency,overall benefits, and the level of intensiveness, intelligence, and greenness; the Company haslaunched the Dahua City-wide Integrated Parking, Charging, and Energy Storage Solution. Thesolution integrates data from two scenarios: integrated parking and charging operations, andcentralized energy control of photovoltaic storage and charging microgrids. While achieving efficientuse of parking space resources, reducing operational costs and increasing efficiency, and improvingthe owner experience, it optimizes and improves the layout of the charging network through intelligent,refined, and green management methods, thereby facilitating the construction of low-carbon cities. Atthe same time, in 2024, the Lingtan high-position camera was released. It is powered by solar energyand has ultra-low power consumption, long battery life, 4G, and no need to pull wires to access thenetwork or electricity. It greatly reduces the difficulty of front-end construction and operation andmaintenance manpower costs, and cooperates with the back-end intelligent parking space monitoringserver to ensure more accurate vehicle identification and efficiently enable intelligent management ofurban on-street parking.

(3) Make governance more efficient

The Company has always practiced the concept of "business traction and scenarioimplementation" to empower efficient urban governance with digital intelligence. We seize theopportunity to promote the modernization of the urban governance system and governance capacity,and provide solutions for application scenarios such as urban operation, urban management,grassroots governance, and community governance. We use intelligent means and real-time onlinedata to solve various complex problems in urban governance, improve urban governance efficiency,and enhance public satisfaction.

City operation: The Company has built an urban operation system with "comprehensivesituation perception, intelligent trend analysis, coordinated resource scheduling, and multi-crossbusiness collaboration" to empower the modernization of urban governance with perception data. Theunified video IoT convergence center realizes a one-screen overview of the entire region, the unifiedalgorithm supermarket realizes rapid discovery of urban events, the unified integrated command anddispatch system realizes the coordinated dispatch of event handling resources, and the unified eventcenter realizes business collaboration across multiple departments. The monitoring of urban

infrastructure, the analysis and prediction of disaster data using big data technology, and the scientificdecision-making suggestions provided by artificial intelligence technology effectively reduce theprobability and impact of disasters, enhancing the level of urban safety.Urban management: With the goals of urban governance, operational safety and serving thepeople, the Company has built an operational management system of "smart management of bigcities, detailed management of big cities, and public management of big cities", focusing on areassuch as street management, urban sanitation, and comprehensive governance, and realizingintelligent detection and alert of street violations, illegal garbage dumping, urban waterlogging,spillage and dripping of construction trucks, illegal urban construction, and lost manhole covers. It haslaunched innovative scenario applications such as AI-powered patrol and unlicensed stall vendormanagement, and built an urban operation management model that integrates "real-time monitoring,dynamic analysis, overall coordination, command and supervision", and is committed to making urbangovernance "smarter", urban operations "safer", and public services "more precise".

(4) Making life better

"With the help of AI, we practice the concept of green water and green mountains and enhancepeople's well-being." The Company focused on the two major fields of ecological protection andadministrative service, providing integrated applications of IoT perception in industry-specific businessscenarios including biodiversity monitoring, ecological environment protection, arable land red linesafeguarding, digital twin of water conservancy, intelligent elderly caring, and food safety supervision,to boost ecological civilization construction and make life better.Smart water conservancy: In order to promote advanced and applicable technologies to enablehigh-quality development of water conservancy, in 2024, the Company actively participated in theWater Expo China and the 19th China (International) Water Innovation Technology ExchangeConference co-organized by the China Water Resources Society and the China Water ResourcesEngineering Association. Focusing on the needs of the construction and development of the nationalwater network and water conservancy digital twin, the Company comprehensively enhanced its corecompetitiveness in technical fields such as AI, 5G, and IoT. By utilizing a number of innovativeproducts in the water conservancy industry, such as the video twin engine all-in-one device,hyperspectral water quality analyzer, and digital-visual fusion all-in-one device, real-time acquisition ofwater environment data, atmospheric data, and video images is achieved; through water qualitymonitoring stations, atmospheric monitoring stations, etc., the water environment can be displayedmore scientifically based on various data, and the management center uniformly gathers andintegrates data resources from multiple parties and displays them visually on maps; relying on videointelligence technology and rich AIoT device data, the smart AIoT perception platform has

comprehensively and accurately organized the water conservancy data of Dujiangyan, making itappear in an orderly manner, accelerating the process of transitioning from traditional experiencemanagement to information-based intelligent monitoring methods, and improving the efficiency,accuracy, and safety of water protection work.Biodiversity conservation: In order to achieve the intelligent monitoring of rare protectedanimals, the Company's relevant industry solutions focus on business scenarios and needs, efficientlyand accurately identify rare species, analyze activity patterns, manage human activities, monitorforest and grass fires, record meteorological, hydrological, water quality, soil, and other ecologicalfactor data, fully leverage and enhance the application of ecological perception and monitoring datafusion analysis, and assist in the construction of China's nature reserve system. The Company hasimplemented biodiversity monitoring and protection programs in many national parks and naturereserves in China, loaded hundreds of bird and mammal identification algorithms, and conducteddetection, identification, classification, and statistical analysis of wild protected animals in variousregions, achieving real-time and precise observation of animal habitats. At the same time, in responseto the boundary management requirements of various types of protected areas, we strengthened themanagement and guidance of human activities, reduced human interference with wild animals, andfully assisted managers to carry out more refined ecological protection work based on rich monitoringdata records and statistical analysis results.Forest and grassland fire prevention: In order to improve the efficiency of forest and grasslandfire prevention and reduce the workload of managers, the Company's corresponding industrysolutions use digital and intelligent technology to achieve real-time alert of multi-dimensional fireconditions in the sky, tower, and ground, multi-dimensional and precise positioning of fire points,secondary analysis and filtering of fire hazards, comprehensive analysis and judgment, and closed-loop task handling processes, thereby improving the accuracy of forest and grassland fire monitoringand alarm and fire prevention and extinguishing emergency response capabilities, better gainingmore "golden time" for early fire extinguishing, and further achieving the goal of "timely response,quick control, and speedy extinguishment" in forest fire prevention. At the same time, it also providesa wider and freer green space for wild protected animals, and promotes the harmonious developmentof man and nature.

4.1.2 Enterprise-level business

4.1.2.1 Business overview

The Company is committed to becoming the preferred supplier of AIoT infrastructure, theprofessional service provider of scenario-based digital intelligence applications, and the key builder ofthe AIoT ecology. The Company focuses on scenario digitalization business and carefully creates scene

cameras, IoT devices, industry algorithms, and industry platforms. By optimizing the security system,improving production efficiency, and assisting business management, the Company helps enterprisesachieve digital and intelligent transformation. The Company actively carries out innovative practices andcontinues to assist the digital intelligence upgrades of enterprises in thousands of industries such asmanufacturing, construction, electricity, petrochemicals, coal, steel, finance, education, medical care,culture and tourism, agriculture, logistics, and retail. It enables the realization of value in all scenarios,builds a large security system for users, constructs digital and intelligent productivity, and improvesbusiness decision-making. It is committed to becoming a trustworthy enterprise digital intelligenceupgrade partner for customers. In this process, through technology co-creation and business sharingwith partners, we have built an AIoT ecological community of co-construction, win-win, and symbiosis,and jointly empowered the digital intelligence upgrades of enterprises.

4.1.2.2 Core strategy

With the continuous exploration of business scenarios, the Company has further deepened itspresence in the core areas of enterprise production, focused on scenario digital and intelligent business,and continued to carefully create scene cameras, IoT devices, industry algorithms, and industryplatforms. At the important juncture of promoting new industrialization, it helps enterprise customersachieve "digital intelligence" upgrades and create new momentum for the high-quality development ofenterprises.

(1) Focus on scenario-based business and serve as a service provider for the digital andintelligent transformation needs of enterprise scenarios

The Company has served more than 50,000 enterprises across China in the field of enterprisedigital and intelligent transformation, and has accumulated profound experience in enterprise digital andintelligent transformation. It has ultimately formed four major business directions: safe production,production execution, testing and measurement, and green and low-carbon, and continues to providegood services and upgrades.

Safety production: Continue to delve into high-risk production and operation scenarios ofenterprises, and deeply integrate digital intelligence capabilities and scenarios. Through a series ofproducts such as leak detection, thermal imaging temperature monitoring, and device status inspection,equipped with a variety of intelligent algorithms such as personnel wear, behavior, environmentalanomalies, and device status, we have created an intelligent management and control solution basedon safe production and efficient operation and maintenance, to achieve operation process control, riskhazard monitoring, and environmental anomaly alert, to complete the management of unsafe factors forpeople, unsafe conditions of objects, and unsafe factors in the environment, to safeguard safeproduction.

Production execution: Digitally express, control, and optimize the workshop production process,and realize production visualization, data interconnection, and intelligent management through visualmanagement systems, production process traceability systems, etc., to create a new generation ofsmart factory management system. Based on the Company's own multi-dimensional intelligentintegration advantages, using digital twin technology as the top-level presentation, to create a human-computer interaction platform for industrial sites, efficiently realize the management of the entireproduction process from order to finished product, and greatly improve the Company's operating andmanagement efficiency.Detection and measurement: Focusing on the enhancement and expansion of perceptioncapabilities, we continue to invest in technology research and application exploration, expanding theperception domain in the perception spectrum to low and high frequencies, and obtaining moredimensional collection methods. For example, in the management of production devices, audio andvibration perception capabilities are used to perceive abnormal internal conditions of devices duringoperation, and to adjust the production rhythm in a timely manner to avoid device damage andproduction interruptions. We continue to work hard in the next breakthrough direction other than visiblelight, achieving the transition from visible and knowable to invisible and knowable.

Green and low-carbon: The Company focused on "source, network, load, storage, charging, andinspection" to implement the "dual carbon" strategy through energy conservation and emissionreduction, focusing on scenarios such as photovoltaic storage and charging, production andmanufacturing, and enterprise parks. Through advanced technologies such as power electronics, cloudcomputing, and artificial intelligence, it created new zero-carbon parks/factories and provides full-stacksolutions for green energy to help enterprises achieve energy conservation and consumption reduction.

In addition, in response to the fragmented, small-scale, and multi-category digital and intelligentneeds of SMEs, the Company's smart enterprise has created a flexible and lightweight DoLynkEnterprise business, focusing on SME customer scenarios, and using "cloud + AI" technology toprovide professional services around the entire process of "assessment, design, implementation, andoptimization". At the same time, we provide an open platform with rich interfaces, and open up IoTcapabilities, AI algorithm capabilities, and business capabilities to ecological partners for free, allowingthe value of AI to benefit more industries and enterprises, helping more enterprises reduce costs andimprove efficiency.

(2) Rooted in digital and intelligent scenarios, driving technological innovation

Based on its profound technology layout and forward-looking market insights, the Company issupported by the IoT technology system, the artificial intelligence technology system, and the softwareoperation technology system. It insists on entering every specific scenario, giving full play to decades of

industry experience, and promoting the realization of the digital and intelligent value of scenarios.The integration of vision and data develops to amplify the value of the industry: In thecooperation and practice with global leading enterprises, the Company has continuously innovated,accumulated and summarized, relying on the full-frequency domain IoT perception capabilities to createa comprehensive AIoT infrastructure, build a comprehensive connection from information, people,objects, scenarios to services, provide visual detection for production in all walks of life, use smart datato assist production decisions, and realize the innovative development of the industry based on digitaland visual fusion technology. At the same time, it goes deep into industry scenarios to bring customersfour major values: safety, reliability, convenience, and efficiency.The collaborative application of large and small models is more efficient and cost-effective:

The Company continues to invest heavily in the field of AI, focusing on building the multimodal fusionDahua industry vision large model. By integrating multimodal data such as images, point clouds, text,and voice, it greatly improves visual analysis capabilities, and develops industry-specific small modelsfor different business scenarios, generalizing the application of IoT perception technology to variousfields. Through the fusion and collaboration of large model + small model computing power, the largemodel supervises the small model to improve performance, and the small model solves the problem ofthe high cost of the large model, allowing enterprises to control computing power costs and makealgorithm training more efficient, bringing more efficient and intelligent solutions to various industries.

(3) Strengthen the "1+6+N" unified architecture, empowering enterprises to innovate in allbusiness scenarios

In the process of serving enterprises' digital intelligence upgrades, the Company uses commonmiddle platform capabilities as a foundation to quickly build a large number of basic business andindustry business applications on a unified framework. In order to more efficiently serve the digital andintelligent transformation of customers in various industries, the Company's solution basic frameworkhas been upgraded to a unified framework of "1+6+N", which means "1 unified framework to servedigital and intelligent transformation business, 6 major middle platforms to build an internal engine, andpromote the implementation of N types of applications", truly accelerating the launch of industryapplications and speeding up the coverage of industry customer scenarios and businesses.

? Strengthen the enterprise middle platform capabilities and build the enterprise digitalintelligence foundationIoT middle platform: By adopting a set of intelligent IoT architecture, the growing number of IoTdevices in the enterprise business can be accessed in a low-code manner. It can not only solve theproblem of unified element access of IoT devices from multiple manufacturers, multiple systems, andmultiple types, but also cope with the scale of group networking at the park level, provincial level, andnational level.Data middle platform: It provides storage, computing, exploration, and security capabilities for avariety of data, including videos, images, and structured data. This helps to address the issues ofexpanding data scales, increasing varieties of data, and the need for mutual integration in enterprisebusinesses. At the same time, utilizing a combination of big data technology, expert knowledge, andexperience accumulation, we have transformed scenario perception data into more valuable industrybusiness big data.Intelligent middle platform: It provides an algorithm generation center to solve the problem ofintelligent implementation of general scenarios and personalized business scenarios of enterprises.Core algorithm assets are managed and allocated through the algorithm asset center, and thecomputing power resources of intelligence devices are fully utilized through the computing powerscheduling center.Interaction middle platform: Through technical means such as AR display, VR display, 3D display,real-life three-dimensional and video twins, we can improve twin capabilities, enhance data expressioncapabilities through low-code image walls, and improve control capabilities through smart displaymanager, so that the value of enterprise digital transformation can be made concrete.

Business middle platform: We integrate multiple engines to build a business middle platform,improve the reusability of software, shorten the development cycle of various fragmented industryapplications, accelerate the implementation of digital and intelligent applications of N types ofenterprises, create solutions for customers that are in line with the enterprise’s own business andscenario applications, continue to consolidate traditional existing businesses, quickly match customerbusinesses, and continuously accumulate replicable and popularizable digital and intelligent businessscenarios.Open middle platform: On one hand, we attract professional manufacturers within the industry tointegrate into the Company's business system to collectively strengthen our foundational capabilities;on the other hand, we open the Company's capability system to empower our ecosystem partners,facilitating more efficient services for our enterprise customers.? Promote public cloud SaaS applications, helping enterprises upgrade their servicesIn response to the fragmented, small-scale, and multi-category digital and intelligent needs ofvarious enterprises, the Company's smart enterprise has created a flexible and lightweight DoLynkEnterprise, using "cloud + AI" technology to provide professional services around the entire process of"assessment, design, implementation, and optimization". By providing standard lightweight cloudsolutions, DoLynk Enterprise achieves lightweight deployment and convenient management, guidingenterprises to optimize management efficiency, boost business efficiency, explore data value, and avoidoperational risks. In addition, DoLynk Enterprise also provides an open platform with a rich set ofinterfaces, offering ecological partners free access to IoT capabilities, AI algorithm capabilities, andbusiness capabilities, allowing AI value to benefit more industries and enterprises, enabling moreenterprises to reduce costs and improve efficiency.In processing factories, DoLynk Enterprise provides device management solutions, includingdevice status monitoring, real-time alarm for abnormalities, and device maintenance management,achieving asset digitization and process standardization; in logistics parks, DoLynk Enterprise offersvehicle management and intelligent scheduling solutions to standardize vehicle entry and reduce laborcosts; in workshops, DoLynk Enterprise loads various AI algorithms to detect violations and assist insafe production; in office buildings, based on the needs for visitor access, parking, propertymanagement, etc., DoLynk Enterprise implements intelligent scenario applications to enhanceoperational management efficiency.? Build a business engine pool to accelerate the implementation of N types of applicationsBased on the evolution of the enterprise digital and intelligent framework, the continuousconsolidation of the enterprise's middle platform capabilities and the expansion of its business, the

Company has gone deep into the subdivided scenarios of various industries, and has worked hard inmultiple industry scenarios such as factories, hospitals, schools, parks, chemical parks, etc.,continuously polishing scenario-based solutions, and deeply refining the industry's business value toprovide customers with scenario-based digital and intelligent solutions that are feasible, quantifiable,and value-calculated.

4.1.2.3 Industry value practice

The Company focuses on enterprise business scenarios, aiming for online resources, intelligentbusiness, and data-driven decision-making. It explores the operational and decision-making value ofenterprise production management data, provides a means for business management, and enhancesdecision-making capabilities. We work hard in the fields of manufacturing, construction, education,electricity, petrochemicals, coal, steel, finance, medical care, logistics, culture and tourism, agriculture,and retail, focusing on core scenarios such as "5+X" (factory manufacturing, energy production, schooleducation, healthcare, and park management), providing customers with high-value digital intelligencesolutions, empowering the realization of enterprise value in all scenarios and enabling businessinnovation.Factory manufacturing: AI + industrial vision applications assist enterprises in improvingquality and efficiencyIn the industrial field, AI + big data, cloud computing, and other advanced technologies are used toachieve visual management and traceability of the entire production process, realize unmannedproduction sites, and visualize problem tracing.The Company fully leverages its in-depth accumulation in the fields of AI and vision, appliesleading machine vision, automation, digitalization, AIoT, and other technologies, and uses digital twintechnology as the top-level presentation to create a human-computer interaction platform for industrialsites. Through the digital twin platform, the Company's factory scenario solutions have achievedcoverage from single scenarios to multiple businesses, from factory security and workshop energyconsumption to production business, comprehensively improving the depth and breadth of theinterconnection between people, machines, and systems. Through the digital integration of product dataflow, manufacturing control flow, and order delivery flow information, it more efficiently realizes thevisualization of the entire production process from order to finished product.

At the same time, based on the enterprise group management platform architecture, the Companyrealizes unified management of intelligent management systems such as energy consumption, vehicles,perimeter, and integrated security and fire control, accurately controls abnormal situations such aspersonnel and vehicles, and effectively controls the real-time status of factory fire protection andsecurity IoT facilities, etc., helping enterprises to achieve comprehensive management of the park.

Energy production: Combining video AI with AIoT to create a new model for risk and hiddendanger supervision

The production scenarios of energy enterprises face numerous risks and hidden dangers, withcommon issues including a lack of diverse traditional regulatory methods, limited operation andmaintenance personnel, and a complex environment. The Company has long been committed to usingvideo AI, large models, and AIoT technologies to achieve online automatic monitoring and intelligentalert of risks and hidden dangers in production scenarios, reduce production risks, improve personneloperation and maintenance efficiency, and efficiently assist energy enterprises in safe production.

Based on the full perception capabilities of "looking, smelling, asking, and touching", the Companyhas realized a new model of online supervision with machines assisting people. By loading AIintelligence and visual large model capabilities into videos, industrial televisions are given a second"life". Combined with infrared, laser, hyperspectral, voiceprint and other AIoT multi-dimensionalperception technologies, remote intelligent visual monitoring of the operating status of devices, onlinecompliance management of work sites, and safe and stable management of production environmentsare achieved, providing energy enterprises with new digital and intelligent management and controlmodels such as risk monitoring.

Currently, the Company has applied it in multiple energy sub-industries, such as the electricity andcoal industries. Based on new regulatory requirements and integrating new technologies, it hasachieved online visual intelligent monitoring and early alert of safety management and intelligentinspections, effectively improving the level of production supervision, reducing accident rates, andsimultaneously reducing labor costs. The Company will continue to explore the deep integration of AIoTtechnology and productivity to help energy enterprises upgrade their safe production to digitalintelligence levels.

School education: Focusing on "balance, precision, efficiency, and safety", providing acomprehensive solution for campus digital intelligence

The Company empowers the digital transformation of universities with digital intelligence. Based onvideo capabilities, it has created campus safety big data, campus AI Hero, Luban digital twin, classinspection supervision and other solutions, built a campus IoT digital intelligence middle platform,focused on the integration and innovation of university business, realized data value empowerment,and assisted the digital transformation of universities. The Company integrates artificial intelligence andbig data technology into video scenarios, focusing on the campus AI large model, making it possible forvideos to move from static recognition to dynamic behavior understanding. It uses large modeltechnology to help schools solve effective prevention and control of unsafe behaviors such as illegaldistribution of leaflets, posting of small advertisements, and violent destruction of facilities on campus.

Campus safety big data has transformed security work from passive to active, providing active alertcapabilities for university safety pain points such as students losing contact, abnormal work and restschedules, and high-frequency occurrences in key areas. It also applies large models and big datatechnology to achieve human-computer interactive retrieval, such as text search for images and fusionsearch, making finding people and cars quick and efficient. Luban digital twin enables the overallcampus security prevention and control situation to shift from a limited glimpse to a global visual angle,and provides all-around and three-dimensional protection for the safety of university teachers andstudents.

In a high-tech school, the Company helped the school build a campus AI Hero system. Throughintelligent audio and video analysis means, it implemented campus safety risk prevention and controland anti-bullying solutions, greatly improving students' sense of security. At a comprehensive university,the Company used campus safety big data technology and tactics solutions to help the school addressthe issue of missing students on campus. At a certain polytechnic university, by building a classinspection and supervision solution, the system can analyze classroom process data, including keyindicators such as students' attendance rate, head-up rate, front-row seating rate, as well as instructors'teaching behaviors, classroom interactions, etc., providing an objective basis for teaching evaluationand comprehensively improving the school's digital intelligence capabilities.Healthcare: Focusing on the construction of “three-in-one” smart hospitals, promotinghigh-quality development of the medical industryThe Company takes the national "three-in-one" smart hospital construction standards as itsguideline, deeply integrates IoT, big data and artificial intelligence technologies, and builds acollaborative development system of "smart management - smart services - smart healthcare",comprehensively promoting a new pattern of high-quality development of public hospitals. By creatingan intelligent nursing decision-making system, a smart ward management platform, and a full-processmedical service system, we have achieved significant results such as improving the precision of nursingoperations, increasing the efficiency of medical resource scheduling, and shortening patients' waitingtime for medical treatment. Building on the foundation of continuously consolidating the securityprevention construction of smart hospitals, the Company focused on breakthroughs in eight corescenarios, including smart outpatient clinics, smart wards, perioperative safety supervision, and AIsupervision of medical behavior, to assist hospitals in their digital upgrades.

In 2024, the Company continued to deepen its smart ward business, with the core goal of"improving hospital nursing services and optimizing patients' medical experience", and developed smartward solutions for all business entities, including doctors, nurses, patients, and managers. By deeplymining system data, conducting information cleaning and governance, we have presented key data in

an intuitive and convenient way on smart terminals in various scenarios, assisting hospitals in achievingintelligent management. At the same time, the solution comprehensively covers the entire scenario ofpatients from admission to discharge, from registration to consultation, and from the lobby to theexamination room. By matching the optimal diagnosis path through intelligent algorithms and combiningguide screens and smart terminals for real-time diagnosis guidance, the hospital's service efficiencyand patient experience have been significantly improved, further promoting the intelligent upgrade ofmedical services.Park management: Creating a digital headquarters and smart parks to deeply empowerenterprises

As the construction carrier and physical foundation of digital operations and smart cities, the park’sintelligent operation level directly affects the management and operations of the enterprise. With thecontinuous development of technologies such as large models and AIoT, the Company continues toupgrade its digital solutions for the park, realize the collaboration of multiple scenarios and multiplebusinesses, and transform from the original five-dimensional integration to the construction of a five-star(new) park. It integrates new energy, new services, new capabilities, new security, and newperspectives to establish a "green, efficient, and safe" digital benchmark park.More industries: Focus on policy guidance and customers' internal needs, and participate inthe development of new opportunity points in various industries

In the tourism industry: In-depth interpretation of industry documents, supporting design of smartscenic area solutions, helping scenic areas to create A-level upgrades in management, service,operation, safety, environmental protection and other aspects; actively responding to the requirementsof the Cultural Relics Protection Law to strengthen the digitalization of cultural relics protection, andlaunching smart museums, smart cultural relics (preventive protection, digital protection of cultural relics,cultural relics warehouse management, intelligent management of cultural relics), smart culturalheritage protection (protection of immovable cultural relics, preventive protection of cultural relics andhistorical sites, AI cultural relics protection), actively contributing digital intelligence in the field of culturalheritage protection.

In the financial industry: The construction of smart outlets is no longer a traditional securitybusiness, but a digital empowerment centered on the efficient and high-quality development of outletservices. It fully loads solutions such as screen display, smart electricity use, and video twins, coveringsix major scenarios: comprehensive reception, product launch, interactive marketing, non-cash areaservices, wealth management, and convenience services. It comprehensively improves the servicelevel of outlets and enhances user service experience.

In the construction industry: 1) Actively participate in the construction of affordable housing,

focusing on the IoT access, operation and supervision applications of affordable housing, with thearchitecture of community solutions + two meters and one lock + rental application platform, to achievethe three-in-one intelligent integration of property on-site services, group network operations, andgovernment unified supervision, to help customers improve service content, operational efficiency andregulatory transparency; 2) Focus on building gas terminal supervision applications, with urban pipelinegas users and rural gas cylinder gas users as the core, to explore a set of strong landing applicationsolutions integrating unified networking, multi-dimensional alert, rapid linkage, and intelligent disposal.On the premise of meeting the unified supervision of the government, it can also adapt to a variety ofmaintenance modes, greatly reducing the threat of gas leakage to people’s lives and property; 3) Forindustrial parks, through AIoT, intelligent middle platform, precise investment promotion, and enterpriseservices, a unified management platform for industrial parks is created, with a unified entrance andunified data. Multiple business scenarios are centrally managed, data resources from all parties areintegrated, interconnected, and a park data center is built. Digital twins are used to empower, improvethe park’s operational management efficiency, and assist in decision-making.The Company's enterprise business is based on a new starting point for digital and intelligentdevelopment, and continues to focus on the practice and innovation of enterprise digital and intelligenttransformation. It always insists on the development of quantifiable, calculable, and feasible productsolutions, helping users build a large security system, build digital and intelligent productivity, andimprove operational decision-making. It is committed to becoming the most trustworthy enterprisedigital intelligence upgrade partner for customers.

4.1.3 SME business (SMB)

In 2024, facing the complex and changing market environment and continuously upgradedindustry demands, the Company's small and medium-sized enterprise business took "local operationand district and county lower-tier" as its strategic core, continuously enhanced customer value,expanded market coverage horizontally, deepened market penetrating power vertically, andcontinuously optimized the channel ecology. We have promoted the in-depth development of smalland medium-sized enterprise business towards refinement, scenario-based, and digital and intelligenttransformation, empowered the digital and intelligent transformation of millions of small and medium-sized enterprises with AIoT technology, and built a symbiotic and prosperous channel ecologicalsystem.

(1) Deepen local operations and build a new ecosystem for the lower-tier markets

The Company is unswervingly promoting the strategy of "local operation and district and countylower-tier", guiding customers to localized operations, product balance, and the continuousprofitability of customers. The Company accurately allocated resources to city, district, and county

markets, continued to assist first-tier distributors in closely connecting with the local service providersystem, and reshaped the channel value distribution system. Through the "district and countyresponsibility contracting system", the business mechanism of "whoever cultivates the land, harveststhe crops" was clarified to protect the rights and interests, and benefits of distributors' localizedoperations. At the same time, the Company continued to expand the market demand for small andmedium-sized enterprises through sellout policies such as "installation red envelopes", "onlinerewards", "sales staff running & signing incentives", etc., to stimulate the enthusiasm and subjectiveinitiative of partners, effectively support the implementation of localized operations and district andcounty lower-tier strategies, and ensure the continued profitability of channel ecological partners.

(2) Technology drives product innovation and consolidates scenario-basedcompetitivenessRelying on the "video + AI + IoT" technology base, the Company continued to optimize YunlianPlatform 2.0, comprehensively upgraded Yunlian’s core business and functions, and launched moreabundant value-added services, achieving a year-on-year growth of 252% in new devices and 69% innew users. In terms of products, the Company has iteratively upgraded its circulation-type dual-lightproducts and newly launched indoor and outdoor wireless products, Nightvision King 2.0,HarmonyOS NEXT series, Door God series, HarmonyOS Camera series, 4G lifetime free flowproducts, etc., to improve the "wired + wireless" product series layout and win wide recognition andpraise from customers. At the same time, the Company has deployed exclusive online products onmultiple e-commerce platforms, achieved online and offline product segmentation and productcoverage of all sales channels, and fully demonstrated the value and market competitiveness of theCompany’s AIoT products to its partners. In the field of scenario solution innovation, based on newbusiness scenarios, the Company has launched a series of small and micro scenario innovationsolutions, such as e-commerce return video tracing solutions, express station misdelivery controlsolutions, smart agriculture and fishery breeding, etc. It has firmly followed the direction of scenarioproducts + district- and county-level characteristic economic industry supporting facilities, andrealized the implementation of multiple domestic small and micro scenario solutions.

(3) Build a comprehensive, full-chain three-dimensional marketing system, and create awin-win partnership

In terms of marketing and brand building, the Company has supported partners in building digitalstores on various online local life platforms, enhancing brand voice and online traffic, and helpingpartners improve their digital marketing capabilities. Offline, we have increased support for theconstruction and operation subsidies of district and county specialty stores, city showrooms, andstorefronts to achieve comprehensive coverage of "small and beautiful". The Company has built a full-

chain service ecosystem of "pre-sales, sales, and after-sales", continuously introducing valuablesmall and medium-sized customers to responsible distributors in districts and counties, assisting first-level distributors and service providers to develop small and medium-sized scenario users in theresponsible districts and counties, and providing distributors and service providers withcomprehensive technical and business support to enhance the project service capabilities and profitmargins of distributors and service providers. By building a three-dimensional digital marketingsystem, shaping a digital channel ecosystem of online marketing, online stores, and online services,we have helped customers achieve a full closed loop of "traffic leads → order conversion →installation and delivery" and achieve win-win cooperation with partners.

4.1.4 Service carrier business

The Company is deeply integrated into the service carriers' digital and intelligent transformationdevelopment strategies and visual networking business development plans, leveraging its own videocapabilities and scenario-based solution advantages to carry out all-around cooperation in the fieldsof standardized product creation, artificial intelligence algorithms, large model all-in-one devices,video security, and big data. At the same time, the two parties complement each other's strengths andshare resources to jointly expand the market and achieve mutual benefit and win-win results in theDICT industry market and small and medium-sized enterprise development, and continue to creategreater value for customers across various industries.

(1) Capability complementarity and building a new type of information infrastructure

The Company has leading technology and intelligent manufacturing capabilities in the fields ofvisual IoT and connectivity, and combines service carriers’ computing power and network capabilitiesto jointly create deeply customized industry products, such as AI terminals and AI large model all-in-one devices.

（2）Technological complementarity and promoting the construction of coretechnological capabilities

Co-build core capabilities such as large models and big data, promote the transformation oftraditional communication services to digital and intelligent services, and create new business modelsand business growth points. Based on its own video capability advantages, the Company has helpedservice carriers build and develop visual networking platforms in terms of video aggregation andaccess, capability platform construction, AI scenario implementation, and application expansion.

（3）Resource complementarity and accelerating the digital development of the industry

Construction of Digital China, development of the digital economy, mining of data value, anddigital and intelligent transformation and upgrading of governments and enterprises. The Companyhas a strong R&D team and business innovation capabilities, and the service carrier has huge user

resources and channel advantages. The two parties have carried out in-depth cooperation and jointexpansion in industries such as social governance, smart transportation, education, culture andtourism, natural resources, industrial manufacturing, mining and energy.

4.2 Overseas Business

4.2.1 Business overview

The Company formulated a "going global" strategy to enter the international market in 2003,began to strengthen its own brand capability development in 2008, and started to set up localoverseas locations and local business operations in 2014. Over the years, we have comprehensivelylaid out overseas channels, project expansion, technical support, supply logistics systems, and after-sales service construction to ensure a virtuous cycle of overseas business development and long-term localized operations. In addition, through the support of R&D investment and technologicalinnovation, the innovation and enrichment of product lines, and the continuous refinement andadaptation of solutions; the focus on channel penetration overseas has steadily improved the productcompetitiveness, solution capabilities, and levels of localized service of the business, demonstratingprofessional quality and high-quality services to global customers. The brand value continues toincrease, laying a solid foundation for the Company's accelerated expansion of overseas businessand ensuring the sustainable development of the business. Currently, the Company has invested inand established 68 overseas subsidiaries in major countries on all continents, and its products andservices cover more than 180 countries and regions around the world. As the global demand for AIoTcontinues to grow, the Company will continue to focus on marketing upgrades, product innovation,industry development, and ecological cooperation to further expand the international market.

4.2.2 Core strategy

(1) Continuously improve global marketing and operations organization and localizedoperating capabilities

The Company maintains a prudent business strategy, continuously strengthens its understandingand adaptability to the regulations, politics, and economic environment in the regions where theCompany's business is involved, formulates differentiated national business strategies based on the"one country, one policy" approach, and fully absorbs local talents through continuous channelpenetration, integrator business expansion, industry breakthroughs and replication, and developmentof new business lines. It builds a professional and diversified organization team, actively adaptslocalized products and solutions, and continues to provide front-line customers with efficient,professional, and nearby services. The Company strengthens its local operational capabilities throughthe "strategic customization + deep penetration" model, implements the talent localization strategy,

forms a cross-cultural composite team, and establishes a three-level management system of"headquarters - region - country" to achieve simultaneous improvement in decision-making efficiencyand effectiveness.

（2）Build an agile supply service system

In the construction of the supply service system, six regional supply centers have beenestablished in Europe, Southeast Asia, the Middle East, Latin America, and other regions, andnational central warehouses have been established in many key countries around the world to createa three-level supply system of "headquarters - regional supply center - national warehouse" toenhance global supply delivery capabilities. In terms of the service system, we have established aglobal integrated delivery system, technical support system, operation and maintenance managementsystem, customer service system, and training and certification system, and have set up more than120 overseas after-sales service stations; among them, more than half of the countries have directlyprovided overseas hotline services, which has greatly enhanced our global service and deliverycapabilities. The two major supply systems form a closed-loop ecosystem of "front-end market insight- middle platform rapid response - back-end efficient support", which shortens the Company'soverseas business delivery cycle and significantly improves customer satisfaction. This model hasachieved remarkable results, particularly in countries along the "Belt and Road" and has beensuccessfully copied to emerging markets.

(3) Expand rich innovative business categories and achieve diversified business layout

Based on the Company's years of technological accumulation and exploration practice in the fieldof AIoT, combined with the differentiated scenarios and needs of various overseas regions, we worktogether with upstream and downstream partners to bring China's latest digital and intelligentproducts, solutions and technical concepts to all parts of the world. As one of the typicalrepresentatives of digital and intelligent enterprises going overseas, the Company has continuouslyinvested in technological innovation and product research and development for many years,continuously improved its service system, and gradually built localized operational capabilities,helping the Company’s products and solutions continue to maintain a leading position in overseasmarkets. The traditional video business maintained steady growth, which not only supported thesteady growth of the main business but also solidified the foundation for the development of newbusinesses. Based on the "video + AIoT" dual-engine driven strategy, the Company has brokenthrough the boundaries of traditional security and formed an innovative business matrix coveringmulti-dimensional scenarios. While relying on existing overseas channels, we have quickly expandednew professional channels and achieved rapid growth in innovative businesses such as thermalimaging, commercial display screens, smart buildings, fire protection, and data communications to

meet the differentiated business and scenario needs of different countries and regions overseas.

(4) Provide complete scenario-based solutions

Relying on the development path of "video-based foundation and innovative fission", theCompany has achieved a strategic leap from a single security device supplier to an intelligent IoTsolution provider. In recent years, the Company has worked with partners around the world to activelyexplore vertical industry markets, providing complete scenario-based solutions for industries such assafe city, smart transportation, retail, education, energy, and manufacturing. In particular, theCompany has had many successful practices in the areas of digital urban governance, intelligenttransportation management, ecological environmental protection, and digital education. For example,in the Amazon rainforest, the Company's AIoT solutions have greatly reduced the area of forest fires.In many regions such as Africa, Europe, the Middle East, and Asia-Pacific, with the implementation ofthe Company's various intelligent monitoring systems and Skynet systems, the urban managementefficiency, case solving rate, and successful accident alert rate in these regions have rapidly improved,the traffic accident rate has gradually decreased, and road safety and travel efficiency have beenguaranteed. At the same time, the Company's digital and intelligent solutions for the educationindustry also assist with the digital intelligence upgrade of education in some overseas regions,allowing excellent educational resources to cover remote areas and promoting remote sharing ofteaching resources and educational equity.

(5) Construction of a global digital ecological community

The globalization path embodies the characteristics of "technological deep squat + ecologicalfast run". Its strategic core lies in accelerating the transformation to an industrial digital serviceprovider while maintaining its advantages in the field of video IoT through extreme scenario-basedcapability (covering more long-tail demands) and flexible cost structure (double elasticity ofmanufacturing and service). It emphasizes the establishment of a "sharp knife advantage" in specificfields and the formation of a staggered competition pattern.

4.2.3 Social value practice

(1) Providing a multicultural integration international talent training platform

The localization rate of overseas employees has exceeded 60%, and more than half of theemployees come from the talent resource pool in the country where the business is located. On theone hand, it contributes to the Company's localized operations; on the other hand, it continues tocultivate high-tech professionals for the local area and contributes to local employment. TheCompany focuses on the growth and talent development of global employees, continuouslyenhancing employee skills and knowledge training, enriching the welfare system and promotion

pathways, and is committed to providing a fair, just, and high-quality growth system and platform forglobal employees.

(2) Practicing the “dual carbon” strategy and assisting green developmentAdhering to sustainable development is a manifestation of the Company's social responsibilityand commitment. Through the layout of clean technology, the Company actively carries out innovativeproduct green design, reduces product energy consumption, and promotes green expansion andbusiness upgrades in the global market. Among various AIoT solutions, we adopt intelligent energy-saving and emission reduction solution designs to promote the application of global green solutionsand reduce global carbon emissions. For example, the Company provides solutions in many fieldssuch as intelligent supervision of nature reserves, water conservancy and water affairs monitoringand management, forest fire prevention, etc., actively participates in and promotes sustainabledevelopment, empowers environmental protection and green development with digital intelligence,and contributes to building a better and greener world. In 2022, as a national-level green supply chainand green factory, the Company was awarded the honorary title of "Green Leader Enterprise". In2023, the Company became a member of the United Nations Global Compact organization for thefirst time, injecting new strength into the realization of the United Nations' sustainability goals. In thesame year, the Company won the silver medal in the audit of EcoVadis, a global authoritativesustainability rating agency, and ranked among the top 15% of global enterprises. In 2024, theCompany officially passed the ISO 37301:2021 compliance management system certification andobtained the ISO 37301 compliance management system certificate issued by BSI (British StandardsInstitution), becoming the first Chinese company to obtain the ISO 37301 certificate in the video-centric AIoT industry.

4.3 Innovative Business

In recent years, the boundaries of the AIoT industry have continued to expand. Based on its in-depth understanding of the diverse needs of customers and years of accumulation and sedimentationin the field of AIoT, the Company continues to expand its innovative business and provide customerswith richer and more complete solutions. The Company is continually developing innovativebusinesses by seeking fields with great growth potential and broad market opportunities,corresponding talent selection, and incentive mechanisms, thereby expanding the Company's AIoTindustry capability circle. The Company's innovative business mainly includes: machine vision, mobilerobots, thermal imaging, automotive electronics, smart security inspection, smart fire control, storagemedium, and other relevant businesses.

4.3.1 Machine vision and mobile robots

The Company's subsidiary Zhejiang HuaRay Technology Co., Ltd. (hereinafter referred to asHuaRay Technology) is a professional company focusing on the research and development, productionand sales of machine vision and mobile robot products. The Company adheres to the core mission of"making factories smarter", focuses on areas related to smart manufacturing and smart logistics, drivesits development with technological advantages, relies on years of AI technology accumulation in theindustrial field and the established industrial IoT ecosystem, helps industrial digitalization and realizesintelligent and flexible production management.At the same time, HuaRay Technology is also constantly exploring new terminal applicationscenarios to help customers improve quality, increase efficiency, reduce costs, and reduce inventory,and ultimately achieve "interconnection, human-machine collaboration, data-driven, and intelligenttransformation", empowering thousands of industries and promoting global intelligent manufacturing toa new form.As a national high-tech enterprise and a specialized and innovative "little giant" enterprise, HuaRayTechnology has always insisted on technological innovation. As of the end of 2024, the Company hasapplied for more than 500 patents, including more than 300 invention patents, and has achieved patentlayout in 11 key technology fields such as embedded software, image optimization, recognitionalgorithms, network transmission, navigation positioning, scheduling, and motion control.

The Company's machine vision products include a series of products such as 2D industrialcameras, 3D industrial cameras, smart cameras, smart code readers, acquisition cards, andaccessories such as lenses, cables, and light sources. Together with the self-developed visual

algorithm platforms MVP and MVT, they can be used for positioning, measurement, defect detection,code reading and recognition, and other scenarios. Currently, the products and solutions have beenwidely used in lithium batteries, photovoltaics, logistics, 3C, and other industries.Mobile robot products are mainly used in logistics warehouses and material handling, includinglatent lifting, fork-picking, and transfer robots. Through the RCS scheduling system, iWMS warehousemanagement system, etc., they can provide functions such as handling, stacking, sorting, etc., andprovide end-to-end intelligent solutions for logistics handling in various industries, helping customersbuild smart factories.

4.3.1.1 Machine vision

HuaRay Technology's machine vision products have built a complete closed-loop visual applicationecosystem, from underlying acquisition devices like industrial cameras to upper-level visual algorithmsoftware. Users can choose "industrial camera + algorithm software" to build a visual solution, or theycan choose smart products such as smart code readers and AI visual sensors to implement solutiondesign. The rich product selection can more flexibly respond to the personalized needs of thousands ofindustries.At the same time, in terms of core algorithms, HuaRay Technology continues to strengthen thedevelopment and product applications of AI. The code reading algorithm is fully AI-based "end-to-end",which greatly improves the code reading performance; OCR character recognition technology realizessingle-character, end-to-end, unsupervised and other AI recognition algorithms, and completes the fullAI of character recognition algorithms, with recognition capabilities reaching the industry-leading level;image generation is based on large model technology, which can simulate the generation of variousdefect samples, greatly improving the implementation capabilities of defect detection projects; in termsof incremental learning, it has achieved the first domestic application, reducing the training time bymore than 80% in terms of retraining.

(1) Machine vision algorithm platform

HuaRay Technology's independently developed machine vision algorithm platform MVP isdedicated to providing customers with algorithm tools for quickly building visual applications. Theplatform integrates over a thousand independently developed basic image algorithms and is the"brain" of machine vision. It connects cameras with PLCs (Programmable Logic Controllers), roboticarms, and other devices to help form a technological closed loop for perception, cognition, anddecision-making. At the same time, the platform combines a large number of deep learning algorithmsof visual images of industrial parts for perception, cognition, and decision-making training, andestablishes a big data detection model, which can achieve high-precision and high-efficiency visualpositioning, image recognition, defect detection and other functions. It uses a GUI visual interface,

drag-and-drop to freely build visual processes, and quickly configure visual solutions. It supportsmulti-task synchronization and multi-process asynchrony, providing a rich communication interface tomeet the demands for the highly efficient application of multiple products. At the same time, the deeplearning interface has been opened on the MVP algorithm platform, supporting the reasoningapplication of AI model. MVT is an industrial AI visual platform based on deep learning, providingcustomers with end-to-end full-process services to build an "industry brain" with higher efficiency andlower costs. It integrates sample annotation, sample enhancement, and model training, and has built-in neural network models: classification, detection, semantic segmentation, optical characterrecognition (OCR), etc. At the same time, each type of task supports large, medium, and smallmodels to meet the needs of multi-feature detection in complex industrial environments. The modeltrained by MVT can be conveniently loaded into the MVP algorithm platform and flexibly combinedwith other operators in the MVP algorithm platform.

(2) Machine vision hardware products

In the aspect of machine vision hardware products, the Company has gradually changed fromthe manufacturer of single industrial cameras to the provider of machine vision core components andsolutions. At present, it offers a series of products such as area scan camera, line scan camera, 3Dcamera, smart camera, code reader, visual controller, acquisition card, lens, and light source relatedto vision integration solutions.The company launched many new product series in 2024, such as: the world's first 245-megapixel CXP interface large area scan camera, 152-megapixel global 10 Gigabit network largearea scan camera, 4K 4-line true color camera, 8K/16K CXP interface line scan camera, 10 Gigabitnetwork acquisition card, logistics industry AI high-performance 7000P code reader, industrial-gradeRS3000 series handheld code reader, SS4000 series AI visual sensor, high-speed and high-precisionlogistics second-generation 3D camera, intelligent medical code reading and traceability system,flowchart-based visual algorithm platform MVP5.1, etc.

4.3.1.2 Mobile robots

The widely applicable typical intelligent logistics system launched by HuaRay Technologyincludes industrial mobile robots, automatic chargers, communication systems (WIFI/5G), warehousemanagement platforms, integrated control platforms, scheduling simulation platforms, and robotscheduling platforms, providing smart factories with various solutions such as automatic loading andunloading and goods-to-person sorting.

(1) Mobile robot large-scale scheduling system

HuaRay Technology RCS Scheduling System: The scheduling system employs a self-developedscheduling algorithm, including a dynamic switching allocation algorithm based on multiple constraint

conditions, a multi-constraint path planning algorithm, a safety detection algorithm based on theseparation axis theorem, a multi-strategy fusion multi-vehicle traffic control algorithm, and a MAPFunlocking algorithm; at the same time, combined with the self-developed AMR device's perceptionand recognition algorithm, motion control algorithm, intelligent electronic control, and high-precisionintelligent electric drive algorithms, it achieves ultra-large scale map construction and millisecond-level path planning, capable of supporting optimal allocation of thousands of concurrent tasks andmulti-server cluster scheduling, thereby providing a variety of functions such as multi-robot clusterpath planning, avoidance control, robot traffic management, intelligent task allocation, multi-vehicleavoidance, traffic balancing control, system load balancing, intelligent charging management, safetymonitoring, storage location management, intelligent operation and maintenance management, andreport statistics.

HuaRay Technology iWMS warehouse management system: Based on the RCS robotscheduling system, it realizes various automated warehouse and distribution scenarios such asgoods-to-person sorting, production line delivery, point-to-point transport, and loading and unloadingat the line-side warehouse. It optimizes storage and distribution through automated strategies such asshelving strategy, allocation strategy, wave strategy, and mixed placement strategy. Combined withfunctions such as big data analysis of operational data and algorithm analysis, it further optimizesbusiness processes and inventory management, improving operational efficiency.

(2) Mobile robot hardware products

HuaRay Technology's industrial handling robots, such as latent lifting, transfer, and fork-pickingrobots, are equipped with a rich variety of network systems and intelligent charging systems, and arewidely used in modern warehousing management and production handling scenarios in variousindustries. In 2024, a new generation of latent AMR series and fork-picking robot products that aremore stable and safe were launched and have been widely used in the market. They are faster todeploy and maintain and have higher operating precision. The load specifications cover typicalscenarios such as 60KG, 400KG, 600KG, 1000KG, 1500KG, 2000KG, and 3000KG. The high-precision dual-lift products launched have achieved large-scale application among many customers inthe lithium battery industry.

The navigation mode realizes laser SLAM navigation, visual navigation, inertia navigation andmulti-sensor fusion navigation, and is compatible with visual obstacle avoidance and TOF three-dimensional obstacle avoidance. Through multi-dimensional perception, the product achievesmillimeter-level high-precision docking. The 5G communication scheduling forklift has a small controllatency, which realizes business from indoor to outdoor, and is widely applied in the new energy,automotive parts, textile, 3C, and food industries.

4.3.2 Thermal imaging

With thermal imaging technology as its core, Pixfra Technology provides thermal imagingmodules, personal vision products, security products, platform software, and full-scenario digitalintelligence solutions to the world. The Company's products and solutions are widely used in manyfields such as low-altitude economy, emergency management, outdoor sports, industrial temperaturemonitoring, new energy, perimeter protection, natural ecology, environmental protection, and urbanlifeline. The Company is committed to perceiving the world with temperature and developing leadingthermal imaging products and full-scenario digital intelligence solutions to serve global customers.

In 2024, Pixfra Technology passed the certification of "Hangzhou Enterprise High-tech Researchand Development Center" and "Zhejiang Enterprise High-tech Research and Development Center",and was rated as the sixth batch of national specialized and innovative "little giant" enterprises.

4.3.2.1 Technological breakthroughs

In 2024, Pixfra Technology continued to consolidate its technological foundation and maintain itsleading position in core technologies in the industry. Pixfra Technology has always been committed toproviding personal visual products with excellent images to meet customers' unremitting pursuit ofhigh-quality visual experience. In 2024, the Company launched the PIPS2.0 image algorithm. Thisbreakthrough technology can accurately highlight target details, significantly improve edge clarity, andeffectively reduce noise in the image, thereby bringing users more delicate and realistic image effects.The launch of the PIPS2.0 image algorithm marks another solid step forward for Pixfra Technology inproviding high-quality image products. Smart Thermal 5.0 is loaded with low, slow, and small UAVdetection algorithms, intelligent normalization algorithms, animal detection algorithms, long-distancesmall target algorithms, and intelligent algorithms for improving detection distance and reducing falsealarms, which improve the intelligence level of thermal imaging product industry applications.

4.3.2.2 Product innovation

Pixfra Technology continues to maintain its leading position in the security field and continues todeepen its application in the security subdivision industry scenarios. In 2024, it developed a series ofintegrated open source HarmonyOS products to meet the requirements of power Harmony in powerscenarios. A mobile arming product was released. The product has a built-in battery, supports 5Gcommunication, and supports quick installation, which facilitates customers' temporary deploymentrequirements in the fields of operation monitoring and power intensive care.

In addition, Pixfra Technology is also continuously expanding new product forms and newapplication fields. In the field of integrated applications, a series of module products such as micromodule and digital module have been released, further improving the module product system, andcontinuing to be implemented in the fields of UAV integration, robot integration, industrial temperaturemonitoring, security integration, etc., continuously expanding the integration business.

In the field of personal vision products, the Company further expanded the width of its productline in 2024 and released a series of competitive personal vision products, such as the M2 telescopethat won the 2024 German Red Dot Design Award, Sirius telescope, ARC Pro telescope, Taurus sight,etc. In the innovative design of these products, the family-oriented design concept is deeplyintegrated, and on this basis, there are bold breakthroughs and innovations. At the same time, theCompany actively responded to the market demand for portability and lightweight design, and througha series of innovations, successfully made its products smaller and lighter. This series of innovativemeasures demonstrates Pixfra Technology's ultimate pursuit of products and brings consumers amore exceptional experience.

4.3.2.3 Industry focus

In 2024, Pixfra Technology focused on two major industry fields: emergency management andbig energy.

(1) Emergency management

In the field of emergency management, especially in forest fire prevention, we have carried outcomprehensive business focus and technology iteration, and launched thermal imaging products thatare more suitable for emergency forest fire prevention application scenarios. The product has beenoptimized and improved, especially achieving important breakthroughs in the smoke false alarmalgorithm and fire hazard detection algorithm, significantly improving the detection capability andaccuracy of forest fires. By optimizing the smoke false alarm algorithm, the false alarm rate iseffectively reduced, ensuring the accuracy of smoke detection of thermal imaging products undercomplex background conditions such as strong light and shadows. At the same time, the newlyupgraded fire hazard detection algorithm combines deep learning technology to more accuratelyidentify the source of fire. These technological advances enable the Company's thermal imagingproducts to not only respond quickly but also provide reliable alerts in the early stages of a fire. Inaddition, the Company has deeply integrated thermal imaging products with high-precision maps andback-end intelligent second verification and analysis systems to form a comprehensive forest firemonitoring and disposal solution. High-precision maps provide accurate geographic information forfire hazard analysis, while intelligent second verification and analysis ensure the accuracy andtimeliness of the data, enhancing the scientific nature and effectiveness of decision-making.

With the application of these new technologies and capabilities, the Company greatly improvedits emergency forest fire hazard detection capabilities in 2024, and was highly recognized bycustomers and the industry. Through a series of innovations and applications, the Company has notonly enhanced its competitiveness in the field of forest fire prevention, but also made positivecontributions to ecological environmental protection and public safety.

(2) Big energy

The Company has further deepened its business focus on the big energy industry, and continuedto increase its investment and R&D efforts in infrared thermal imaging products, striving to maintainits leading position in this key field. The Company recognizes that with the advancement of greenenergy transformation and sustainable development goals, the safe and stable operation of relateddevices and infrastructure is becoming increasingly important. In the past year, the Company hascontinuously optimized infrared thermal imaging technology and launched a series of products withhigher sensitivity and reliability, providing strong technical support for device monitoring and fault alertin the power, petrochemical, steel, coal, and other industries. The Company's thermal imaging

products can monitor device temperature distribution in real time, promptly detect potentialoverheating hazards, significantly reduce device failures and downtime, and help customers improveoperational efficiency and safety.

In addition, the Company actively collected user feedback in application scenarios, used data todrive technology iteration, and launched a variety of targeted solutions through in-depth cooperationwith upstream and downstream of the industrial chain to meet the ever-changing needs of the bigenergy industry. The Company's infrared thermal imaging products not only played an important rolein traditional energy monitoring, but also showed broad application prospects in the detection andmaintenance of new energy devices.

4.3.3 Automotive electronics

Hirige, a subsidiary of Dahua, focuses on intelligent vehicle products and industry solutions. Withvideo as the core, it has laid out the direction of intelligent driving, combined with radar, AI, perceptiondata analysis and processing and other technologies, and is committed to becoming an industry-leading supplier and solution provider of intelligent automotive electronic products with videotechnology as the core. At present, the Company has obtained the IATF16949 quality managementsystem certification, and its product development has successively obtained product processcertifications in the industry, including IS026262 functional safety certification, ISO/SAE 21434 roadvehicle cyber security process system certification, and ASPICE automotive software processimprovement and capability L1 assessment. The product solutions comprehensively serve domesticand foreign passenger vehicle and commercial vehicle customers, as well as consumers and industryusers at all levels.

4.3.3.1 Passenger vehicle market

Passenger vehicle products are built around the two core capabilities of perception andintelligence, with four major product series: intelligent driving, intelligent cockpit, visual sensors, andmillimeter-wave radar. Through full-domain self-research capabilities, we can carry out multi-dimensional cooperation with customers from products to solutions, from deep customization totechnological empowerment, and provide customers with all-around advanced solutions in theautomotive field.

In the field of intelligent driving, Hirige integrates cutting-edge intelligent driving technologyinto the OEM market, and launches and optimizes forward-looking assisted driving solutions: theforward 8M solution has been developed and launched on the market; the flagship configuration isthe ultimate cost-effective L2+ driving solution 5R1V, which can support unmapped highway NOA,support blind zones, front/rear crossing detection, and support C-NCAP 2024 five-star rating; the

lightweight driving and parking integrated solution provides a more highly adapted version ofintelligent driving products for the advancement of automobile companies' intelligent systems, whichcan realize more complex and more reliable driving and parking integrated functions. Among them,the entry-level configuration and extremely cost-effective 1V solution has been successfully mass-produced by LEAPMOTOR, and at the same time, it supports regulatory adaptability development inoverseas markets. After a year of special optimization, the applicable scenarios have been greatlyexpanded and recognized by many vehicle manufacturers.

In the field of intelligent cockpits, the Company has realized cockpit safety and interactionsystems and completed mass production of various types of in-cabin visual sensors. DMS and OMScameras all have functional safety ASIL B level; TOF cameras realize face recognition through deepinformation image algorithm and have been mass-produced by leading automakers; the cockpitsafety system realizes driver fatigue detection, distraction alarm, and dangerous driving behaviorrecognition, and cooperates with LEAPMOTOR to successfully obtain the first EU-related regulationsADDW, DDAW certification and E-NCAP 2024 five-star level; the cockpit interaction system realizesfunctions such as rear-seat residue detection, gesture recognition, emotion recognition, and heartrate monitoring, helping customers create intelligent cockpits with different characteristics andenhance the in-cabin driving experience.

In the field of visual sensors, the Company has achieved a comprehensive upgrade of itscamera products and has mass-produced a new generation of vehicle-mounted cameras that combinefront and rear shell integration technology, laser welding technology, and PCB board active centeringtechnology, effectively reducing the production cost of vehicle-mounted cameras and improving product

stability and consistency; at the same time, it has further expanded the domestic leading OEMs,achieved multiple project targeting and mass production, and increased market share; with theexpansion of product business, the Company has invested heavily in the construction of manufacturingplants, added multiple SMT production lines and AA camera production lines, and doubled the overallproduction capacity.

In the field of millimeter-wave radar, the Company continued to increase investment to promotetechnological progress and innovation. In terms of forward radar and blind zone radar, the Companyreleased microstrip antenna radar products with better performance and previewed the next-generationwaveguide antenna radar products. The in-cabin vital signs radar has undergone product iterations intwo different directions: high performance and high cost-effectiveness, achieving coverage of a widerrange of application scenarios. At the same time, progress in the preliminary research of 4D radar hasbeen achieved, laying the groundwork for the subsequent upgrade of higher-performance products.

4.3.3.2 Commercial vehicle market

Currently, the stock of commercial vehicles in China exceeds 20 million units. However, safety

problems such as traffic accidents, casualties, and cargo damage have become increasingly prominent.After speeding and fatigue driving, traffic accidents caused by blind zones have significantly increased.Front vehicle collision warning, lane departure warning (LDW), fatigue driving warning, driving behavioranalysis, etc. have gradually become standard configurations for active safety advanced assisteddriving construction projects for commercial vehicles in various places. Based on the actual operatingenvironment of the vehicle, Hirige conducted in-depth research in algorithms, efficiency and otheraspects to further improve product performance, and realized front/rear mounted intelligent vehiclesolutions through active safety, assisted driving, panoramic 360° surround view system, 1R1V andother product systems. At present, these solutions have been widely used in freight, logistics, taxis,ride-hailing cars, tour & scheduled buses, dangerous goods transport vehicles, public transportation,public security, school buses, sanitation trucks and other fields.In 2024, in the domestic market, we focused on traditional mainstream industries such as publictransportation, taxis, ride-hailing cars, public security, and freight, and completed the update anditeration of solutions, comprehensively enhanced market competitiveness, and created benchmarkprojects such as Hangzhou Public Transportation, Postal Freight, and Xiamen Heavy Truck. In theoverseas market, while focusing on public transportation, police vehicles, school buses, and thefreight industry, we also focused on the freight industry, entered major overseas markets with newfreight solutions to seek explosive points for business growth.

In 2025, the commercial vehicle market will make full efforts to expand into key industries. In thecommercial vehicle OEM market, we focused on launching new GB standards, 1R1V, Europeanstandard R151 regulations, and 360° surround view systems to further improve thecomprehensiveness of our business and achieve targeted breakthroughs for many leading OEMs; inthe tour & scheduled bus, dangerous goods transport vehicles, heavy trucks and freight markets, we

took the opportunity of the national single Beidou update law to fully cover the single Beidoureplacement business in 32 provinces, and faster promote the coverage and application of the newGB three-piece set (ministry-level device/ADAS/DSM); in the public transportation market, wecompleted the coverage of public transportation from provinces to cities across the country, andpromoted the full implementation of the second-generation public transportation integration plan; inthe taxi and ride-hailing car market, we completed the release of the entire system of products, andtook the opportunity of the national ride-hailing car control regulations to increase the market share ofmore provincial capitals.

Hirige will always maintain its R&D investment in the commercial vehicle market, continuouslyimprove its products and solutions, help customers solve business problems, improve customersatisfaction, and contribute to the development of the transportation industry.

4.3.4 Smart security inspection

Zhejiang Huajian Technology Co., Ltd., a subsidiary of Dahua, is a technology company basedon core video technology, artificial intelligence technology, big data technology, and IoT technology. Itis committed to becoming China's leading provider of full-domain digital security prevention solutions.The Company adheres to the mission of "giving the world more peace and making life more secure"and focuses on the research and development of innovative solutions in the fields of securityinspection, supermarket anti-theft, and airspace prevention. With the rapid development oftechnologies such as artificial intelligence, big data and Internet of Things, these technologies havebeen deeply and innovatively integrated with the security check industry, and global users are in needof reliable, convenient and advanced smart security check equipment and services, making securitycheck intelligence usher in a new round of development opportunities. With IoT technology and AIanalysis technology as the core, the Company promotes the reform and development of the securitycheck industry, bringing new business opportunities and new vitality to the industry.

4.3.4.1 Security screening machine

Regarding security screening machines, Zhejiang Huajian uses its R&D technology as itsfoothold in the industry, and continuously and innovatively explores security screening products andtechnical standards that represent the industry's top level, including intelligent views, materialidentification, and civil aviation standards. The Company officially obtained civil aviation certificationfor five aircraft models in May 2024. This not only represents that the Company's security screeningdevice research and development level has received the highest recognition in China, but alsoindicates that the door to the civil aviation security market has been opened to us. In terms of imaging,the Company has independently developed a new generation of image algorithm engine "Qingkong

3.0". While ensuring the domestic production of components, it has greatly improved the fineness andlayering of the imaging images of security screening machines, and optimized the operatingenvironment of manual and machine image judgment. At the same time, based on the advantages ofAI deep learning training, the security screening machine can not only accurately identify organic,inorganic and mixed substances, but also directly and effectively identify some types of toxic,explosive, and high-risk prohibited items.

4.3.4.2 Security gate

Zhejiang Huajian has profound technical accumulation and project experience in the field ofsecurity gate technology. During the self-research process, it was found that high-precision magneticfields combined with AI deep learning can be used to accurately identify prohibited items such asmobile phones and knives. This technology can perfectly fit the market trend of "large-scale initialscreening and common metal shielding in life". In 2024, the Company obtained the certification for

Zhejiang Province's first integrated area array imaging millimeter wave security gate, adding apowerful tool to China's refined human body imaging detection field. In addition, in the field of smallmetal identification, Zhejiang Huajian dared to introduce the acceptance criteria of half-a-paper-clip tothe market, which was widely recognized by customers.

Zhejiang Huajian focuses on the value and innovation of product solutions in actual applicationscenarios, and has launched products and solutions with strong industry attributes for industries suchas rail transit, large-scale events, justice, hospitals, education, and logistics, so that its productscontinue to maintain high-level and multi-level competitiveness. In the future, Zhejiang Huajian willcontinue to implement the strategic policy of taking market demands as the guide and R&D as thecore productivity, and move towards the high-end security screening market. The core components ofsecurity screening, rapid imaging millimeter wave, CT-type security screening devices, and civilaviation security screening devices will be the main R&D investment directions in the future. TheCompany shall make full use of its own technical advantages and characteristics to create a securityscreening solution with unique features, focusing on networking and intelligence as the main theme.

4.3.5 Smart fire control

Huaxiao Technology is an advanced provider of fire protection products, solutions, andoperational services. With IoT, big data, cloud computing, video AI, and other technologies as its core,it continues to be committed to providing advanced fire protection products, solutions, and operationalservices for the entire industry for fire safety for individuals, enterprises, and government customersaround the world, to achieve early warning, early prevention and control, and early disposal in thefields of fire protection, gas, electricity, etc., and improve the overall safety level of society.

4.3.5.1 Fire protection products

We deeply cultivated the domestic market and adhered to technological innovation as the drivingforce for enterprise development. In 2024, the Company actively expanded into areas such as safeelectricity and gas detection while continuously consolidating its smart fire control business. At thesame time, for the SMB market, we launched the "Changlian" series of fire protection products,focusing on the effective management of fire safety in small scenarios; for the industrial field, wefurther developed explosion-proof, intrinsic safety (IS) and other series of products to enhance theoverall competitiveness in professional segments; we launched the "Huaxiao Fangtong" productseries, further improving the loading and application of integrated security and fire control, video AIand big data capabilities.Continuing to focus on the development of overseas business, in 2024, the Company created anintegrated overseas security and fire control solution combining "product + software", forming a

product system with household fire protection, commercial fire protection, AI-Fire safety and fireprotection cameras, industrial special detectors, and fire protection accessories as the core, andreleased C-end and B-end user software platforms. In 2024, the Company's overseas fire protectionproduct certifications were gradually completed, and the Company's brand has also been recognizedby an increasing number of national markets and customers.

4.3.5.2 Solutions

Huaxiao Technology always adheres to the principle of starting from customers' pain points andactual needs, targeting fire protection business scenarios in various industries and fields, and usingits integrated security and fire control core capabilities to achieve intelligent transformation andupgrade applications of fire safety in various industries.Given the fire safety characteristics of civil and commercial buildings, based on the original fireprotection system, through the expansion of the LORA wireless alarm system, the effective integrationof the smart fire control system and the security system, the integrated, visual and intelligentmanagement of the local and remote management platforms is realized. Aiming at traditionalindustrial sectors such as energy, chemical, electric power, and coal, as well as pan-industrial sectorssuch as tunnels, pipeline corridors, and rail transit, we have developed intrinsically safe (IS),explosion-proof, multi-spectral, and fire-fighting combined intelligent terminals to meet industryrequirements and create a two-level architecture overall solution for multi-factory group IoT remotesupervision and integrated security and fire control at the territorial level.In the field of urban lifeline gas safety business, Huaxiao Technology provides a full-chainprevention and control solution based on four major business scenarios: stations, important pipelines,residential and industrial & commercial users, and bottled gas traceability. A variety of IoT perceptiondevices are used to monitor data such as leaks, pressure, flow, temperature, position, liquid level, andvibration in real time. The digital and intelligent gas IoT supervision platform, combined with AIvisualization capabilities, enables efficient management of IoT perception devices, while modularlyintegrating a series of supervision applications such as risk investigation and safety risk assessment.

In response to the gradual advancement of smart fire control construction in cities across thecountry, Huaxiao Technology and strategic partners from various regions have jointly established anurban fire protection operation service center. Using the Cloud Platform for Vision and Fire Control asits capability base, it provides users with one-stop fire protection comprehensive services such as firesafety design, construction, alarm networking, remote duty, fire protection maintenance, fire protectiontraining, and fire insurance, realizing the transformation from product sales to product services.

4.3.6 Storage medium

Zhejiang Huayixin Technology Co., Ltd., a subsidiary of Dahua, is an innovative technologycompany that focuses on the research and development, production, and sales of storage mediums.Its product lines include SSDs, storage cards, USB drives, PSSDs, and memory. Its business focuseson various application scenarios, such as terminal consumption, industrial control, vehicle-mountedmonitoring, and video monitoring.The Company continues to strengthen market promotion and marketing network constructionand has established a marketing network centered in Hangzhou that radiates to various countries andregions at home and abroad, covering all provinces in China. Its products are exported to more than100 countries and regions around the world. At the same time, it actively expands the industry marketand performs outstandingly in industries such as PC, rail transit, automotive, industrial automation,security monitoring, cloud storage, cloud computing, and healthcare.

In 2024, the Company passed the ISO 9001, ISO 14001, and ISO 45001 system certificationsand was successfully recognized as a national high-tech enterprise. In the context of industrialdevelopment and upgrading, along with focusing on the Company's self-research strategic route,significant breakthroughs have been made in R&D and technological innovation for storage products,with heavyweight products launched across various product lines.

SSD: In the field of video monitoring, Huayixin launched a new generation of V800 series videomonitoring disks that use domestic controllers and domestic storage particles. The products supportDLBA, have stable video writing performance, meet 7*24 hours of recording without frame loss, andseamless cooperation with the underlying file system of storage products. Facing the automotivemarket, we launched the S820 series of automotive video monitoring SSDs, a domestically producedsolution, which is specially designed for automotive video monitoring scenarios and suitable for use inscenarios with frequent vibrations, abnormal power failures, and very low temperature operatingenvironments in the automotive industry. Facing the industrial control market, we launched productsof different specifications.Memory products: The E500 and E510 series memory products are launched in combinationwith business usage scenarios, forming an industry product layout for the fields of informationtechnology, commercial use, industrial control, etc.; DDR5 high frequency and low-timing memoryproducts are launched for the general consumer market to meet the usage scenarios of differentusers.USB drive: We have launched several mainstream USB 2.0/3.0 direct-plug USB drives and high-speed dual-interface solid-state USB drives, supporting a maximum capacity of 1TB, meetingconsumers' multiple demands for different appearances, high speeds and large capacities.Memory card: The original monitoring series SD/Micro SD storage card solution is upgraded tosupport a wide operating temperature working environment and increase the capacity to 1TB. Theentire S100/H100 series is highly durable and meets the mainstream security monitoring andautomotive industry usage scenarios.

PSSD: We launched the T70 and T80 series of PSSDs based on SATA and PCIe protocols,respectively, with a maximum capacity of 2TB to meet the portable storage needs of different users.

With the vision of "being a leader in secure storage", Huayixin is committed to creating Chinesequality storage. As the storage cornerstone to promote the development of AloT, it builds an industrial

ecological chain with global partners, embraces the intelligent upgrade of Chinese manufacturing,and grows together with technology, industry, and users.

4.4 Developing Green and Low-Carbon Businesses

The Company is anchored on the dual carbon goals, practicing the mission of "making societysmarter and life better", using technology to support the construction of ecological civilization, buildinga safe, low-carbon, beautiful and harmonious society, and actively implementing environmental,social, and governance (ESG) initiatives. Based on the overall strategy of "digital and intelligentempowerment, low-carbon future, shared ecology, and compliance management", it combinessustainable development with digital and intelligent empowerment to empower biodiversity protection,environmental protection, intelligent traffic management, smart energy, smart buildings, smarteducation, safe production and many other fields, and help thousands of industries to achievesustainable, green and high-quality development.

(1) The Company's enterprise smart park uses the national green building three-star standardand the Company's AIoT solution to achieve real-time monitoring of the park's energy data andautomatic allocation of energy strategies around sources, networks, loads, storage, charging, andinspection, so that the entire park's microgrid has adaptive capabilities. At the same time, it tracks theflow of each energy source and the footprint of carbon emissions, realizes refined energymanagement, helps enterprises save energy and reduce emissions, and implements the "dualcarbon" strategy.

By building a rooftop photovoltaic system, the building can generate its own green electricity forthe Company's own use, and operate an intelligent generating capacity detection system to help thedevice run safely and stably; build an intelligent microgrid in the park, and realize flexible schedulingof the park's energy consumption based on peak and valley electricity, transformer capacity, andelectricity demand forecasts; the intelligent air-conditioning hub covers the park, automatically detectsthe operating status of all air-conditioning device, and can remotely turn on/off or set a unifiedtemperature. By using big data to analyze the energy usage habits of each space, it can realizeadaptive environmental control of the air-conditioning and effectively reduce the power consumptionof the air-conditioning; use intelligent dimming lamps, gradually adjust the brightness of the lights, andmanage them intelligently, and connect with the attendance, elevator control, and parking systems, sothat each lamp can be lit as needed to achieve companion lighting; combined with peak and valleyloads, through platform strategies, new energy vehicles can be charged in an orderly manner,centralized fast charging can be avoided, and the pressure on the power grid can be relieved;intelligent circuit breakers cover detection around the clock, automatically warn of safety hazardssuch as electric leakage, overload, and overvoltage, respond with one click, and trace them in time,

track energy trends in real time, further standardize energy waste, and achieve refined energy savingin buildings.

(2) The Company focuses on continuously developing scientific and technological applications inthe water conservancy industry. Centering on the development needs of the national water networkand water conservancy digital twin construction, the Company comprehensively enhances its corecompetitiveness in technologies such as artificial intelligence, 5G, and IoT. Based on its in-depthunderstanding of water conservancy business scenarios and long-term technology accumulation andpractice, the Company creates a mature and complete smart water conservancy visualizationsupervision solution, providing systematic capabilities such as intelligent perception, smartrecognition, and intelligent alert for multiple business scenarios such as hydrological forecasting, riverand lake inspections, sand mining supervision, and water source protection, thereby fully enablinguser business applications.In terms of rivers and lakes, we used the full-process intelligent system of smart rivers and lakesto achieve efficient management of rivers and lakes, and take practical actions to help protect theYangtze River and improve the efficiency of water area management. In terms of reservoirs, wecreated application solutions for water conservancy project safety and operation supervision, damsafety monitoring, etc. through ecological cooperation to improve the level of refined management ofwater conservancy projects. In terms of water environment protection, we launched a hyperspectralwater quality analyzer to quickly realize automated monitoring and alert of various water qualityparameters such as water turbidity and pH value, to timely grasp the situation of water qualitychanges, and make water quality monitoring more efficient.The Company continues to explore new paths for "digital and intelligent water management",accelerates the deep integration of digital and intelligent technology and diversified waterconservancy scenarios, and enables application scenarios such as flood and drought prevention,intensive and efficient use of water resources, optimal allocation of water resources, and ecologicalprotection and management of major rivers, lakes, etc.

(3) In the field of forest protection technology, the Company closely aligns with the grandblueprint of China's ecological civilization construction and the urgent need for digital management offorest resources, protects forest resources through technological innovation, and contributes to theglobal "dual carbon" goals. In terms of fire alert, we have innovatively launched an intelligent serverfor secondary analysis of fire hazards, which can intelligently filter common sources of false alarmssuch as fog, reflections, construction machinery, and industrial heat sources, to create a three-dimensional forest fire detection and warning system to make information more accurate andhandling more efficient. In terms of animal and plant protection, we have optimized the smart

recognition algorithm to achieve identification and analysis of nearly a thousand species of protectedanimals, helping to protect wild animals and plants. In the field of pest and disease detection, wehave achieved intelligent detection of small targets such as pest-infested plants and diseased trees,accurately predicted the occurrence trends of pests and diseases, scientifically guided prevention andcontrol work, and effectively reduced their threats to forest resources. Through continuouslyinnovative smart forestry solutions, we drive the deep integration of information technology and forestprotection work, contributing indispensable wisdom and strength to the sustainable management offorest resources, the solid construction of ecological security barriers, and the comprehensiveadvancement of ecological civilization construction.

(4) The Company, through the power of science and technology, continues to explore digitalecological protection models and actively protects biodiversity. In the extremely cold region ofAntarctica, the Company donated intelligence device systems to multiple scientific bases to assist inthe research of fauna and meteorology and to protect Antarctic penguins. In wetland environments,the Company actively explores the integration of technology and wetland protection, assisting in birdmonitoring and protection in many wetlands across China. In Hainan, Yunnan, and other places, theCompany assisted local departments in continuously training algorithms through the Ginn platform tohelp with the research and protection of populations such as gibbons and green peacocks. Thesemeasures not only help protect biodiversity, but also make positive contributions to ecologicalprotection and sustainable development.III. Core Competitiveness Analysis

As the Company's services for cities and enterprises' digital and intelligent transformationcontinue to deepen, the "diversity and fragmentation" characteristics of the AIoT industry arebecoming increasingly prominent. The Company meets these challenges with its diversifiedapplication technology capabilities, continues to broaden its product breadth, strengthen its marketingmodel, focus on business penetration, and launch a "combination punch" for business development.It conducts self-iteration and optimization in multiple dimensions of the entire chain, including R&D,marketing, supply chain, and delivery services, thereby building unique competitiveness in the face ofa diverse and fragmented AIoT market, and working with partners to achieve sustainable and high-quality development.

1. Adhere to the "Five Fulls" as the core of R&D and innovation investment, deepeningcustomer demand orientation

With the advancement of digitalization and intelligence, technological evolution, industry needsand business models are undergoing continuous changes. The Company has a deep understanding

of the development trend, firmly adheres to the two major technical strategies of AIoT and intelligentIoT data platform, consolidates the "five full" capabilities foundation, strengthens multi-dimensionalperception capabilities, and provides more comprehensive perception services for various industrysegmentation scenarios; with visual analysis as the core, improves the "1+2" artificial intelligencecapability system, and accelerates the implementation and promotion of the Dahua industry largemodel, and implements trials in public security, transportation, urban governance, electricity, miningand other industries; builds a security assurance framework of "full process control + full productcoverage" to make products safer and customers more at ease; provides cloud products that arecloud-native, fully open, and cover all scenarios in the entire domain, and shares, creates, and winswith partners. In the future, the Company will continue to strengthen business model innovation, builda preferred brand of AIoT, and work with partners to create new business formats in the digital era.

2. Continue to optimize the global marketing and service system layout and increasecustomer coverageThe Company has a global marketing and service network. By the end of 2024, the Companyhad 32 provincial and regional offices in China. The Company has increased its investment in clientcoverage at the marketing end, continued to deepen its efforts in small and medium-sized enterprisebusiness at lower-tier administrative levels, built a win-win ecosystem, and continuously deepened itsindustry customer coverage. Customers in blind spots are constantly being explored. It is focusing onconstructing multi-dimensional ecological partners, building a comprehensive altruistic serviceplatform, and assisting partners in continuous innovation and development.The Company has an extensive and in-depth distribution network overseas, which has laid asolid foundation for the stable growth of its basic business. Its brand influence continues to expand.At the same time, relying on the Company’s strong technical strength, localized sales network, globallogistics and after-sales service system, it continues to deepen business opportunities, strengthen theadaptation of solutions to the local market, and gradually increase the proportion of solutions inoverseas market revenue. The Company has further expanded into the international market bycontinuously cultivating an international business development and management team andcontinuously improving local business development and organizational operation capabilities.

3. Deepen intelligent manufacturing and build a customer-oriented digital supply chainsystem

The Company is committed to building an efficient, intelligent, flexible and reliable supply chainsystem for the global market. In addition to the Hangzhou headquarters smart (IoT) industrial parkand Changsha Central Manufacturing Center, the Company has established manufacturing supplycenters and HUB warehouses overseas to form a global multi-level supply network, and continues to

promote the construction of an integrated upstream and downstream supply ecosystem to enhanceits global supply capabilities.On the basis of product standardization, operation standardization, and lean management, wecontinue to promote high-quality intelligent manufacturing and intelligent logistics construction. Weapply leading machine vision, automation, digitalization, AIoT, and other technologies to achieveautomated assembly, unmanned testing, and visualized supervision of key processes in core productlines. We apply various robots and logistics devices to improve the level of automation in materialwarehousing, material distribution, production handling, finished product warehousing, and outboundlogistics. At the same time, we enhance the depth and breadth of human-machine-systeminterconnection based on business scenarios, and more efficiently collaborate with suppliers at alllevels to continuously meet customer needs through the digitization of product data flow,manufacturing control flow, and order delivery flow information, thus practicing the "customer-centric"concept.In response to the diverse needs of customer orders, we continue to deepen the construction ofdigital supply chain capabilities, and through visual fool-proofing in the manufacturing process,optimized logistics resource distribution, effective supplier management, delivery capability planning,and efficient internal collaboration, we can fulfill delivery commitments on time and reliably to meetcustomer needs.

4. Improve delivery and service capabilities and deliver great client experienceThe Company always adheres to the core value of "achieving customers" and is committed tobuilding a world-leading, efficient, and professional delivery platform to provide the ultimate deliveryand service experience. To this end, the Company continues to improve its delivery and servicesystem aimed at the whole market and all businesses, including project delivery, technical support,operation and maintenance management, and training certification. At the same time, the three-levelservice network consisting of Hangzhou Global Delivery & Service Center, domestic and overseasbranches and subsidiaries, and authorized service centers, combined with digital and intelligentdelivery service tools, provides customers with precise and intelligent services and solutions. TheCompany's service network covers more than 180 countries, with 9 spare parts distribution centersand 173 spare parts stations (46 spare parts stations in China), more than 2,000 delivery and servicepersonnel, and more than 1,000 service partners, fully ensuring the response speed and deliveryefficiency of the delivery and service business.With the continuous development of the AIoT industry, the complexity of delivery is increasing.To meet the growing demand for software and personalized customization, the Company hasestablished software capability centers in major provinces and regions in China, and has formed

cooperative relationships with more than 200 software ecosystem partners to respond to customerneeds flexibly and quickly. This strategy not only improves delivery efficiency, but also enhances theCompany's service competitiveness, thereby further enhancing customer satisfaction.

5. Adhere to the Full Ecosystem Strategy and Build the Smart IoT Ecosystem Communityfeaturing Co-construction, Win-win Outcome and Symbiosis

Ecological development is one of the Company's most important strategic initiatives. TheCompany has always been committed to building a cooperative and win-win ecosystem to co-createvalue with partners. The Company's purpose is to achieve customer success, adhering to the "fullecosystem" concept, anchoring on serving customer value realization, building comprehensive opencapabilities from technology, business, to services, and being fully open to industry customers anddevelopers through hardware, software, algorithms, services, and business ecosystems. We workwith ecological partners to open up new areas, create new momentum, and jointly create unlimitedpossibilities for industrial development, empower the digital and intelligent development of thousandsof industries, and achieve co-creation, symbiosis, and win-win results.

The Company provides convenience for partners by opening up device hardware capabilities andthird-party platform access capabilities, enabling the rapid implementation of new intelligent scenarios;relying on the intelligent IoT data platform base, it achieves solution co-construction, product co-creation and capability sharing with ecological customers, and helps the industry's digital intelligenceupgrade; it continues to upgrade the Ginn Open Platform, providing developers with online full-linkcapabilities for algorithm development, and improving the development efficiency of large modelbusinesses; for service partners and business partners, the Company adheres to the businessphilosophy of "leaving convenience to partners and leaving complexity to ourselves", and optimizesthe corresponding marketing policies, resource support and organization based on this philosophy tobuild a benign shared and win-win ecosystem.

6. Establish a compliance management system that complies with international standardsto effectively ensure compliance operations and steady development

Adhering to integrity in business operations, upholding commercial ethics, and complying withthe laws and regulations of the countries where the business operates are the core concepts that theCompany has always advocated and practiced. In the context of global business operations, theCompany attaches great importance to compliance in business development and operationalprocesses, and continuously enhances its risk governance level. In 2024, the Company was awardedthe ISO37301 compliance management system certificate issued by the British Standards Institution(BSI). This honor is not only a certification of the scientificity and effectiveness of the Company’scompliance management system, but also indicates that the Company’s systematic compliance

management capabilities have been comprehensively improved. On this basis, the Company willcontinue to deepen its risk prevention and control and governance work in various compliance areassuch as cyber security and data protection, export controls and economic sanctions, anti-bribery andanti-corruption, science and technology ethics, anti-monopoly, and anti-money laundering, to ensurethat the goals and focus of compliance work are in resonance with the risks and challenges broughtto the Company by changes in the internal and external environment, and to effectively play the valueof the compliance management system in safeguarding the steady development of the business.As the globalization of its business continues to deepen, the Company has always maintained aprudent business strategy, continued to consolidate the compliance risk management mechanism of"one country, one policy", improved the Company's risk control capabilities in various complianceareas, and the compliance management organization and operation mechanism of domestic andoverseas branches. Through the solid operation and implementation of "compliance starts from thetop, compliance is embedded in the process, compliance covers all employees, compliance system isstandardized, compliance management is IT-based, and continuous optimization and improvement",it effectively prevents major compliance risks and safeguards the Company's interests and goodreputation.

7. Adhere to the principle of "achieving customers, achieving strivers", and create aplatform for common development

The Company always adheres to the core value of "achieving customers, achieving strivers",prioritizes customer achievement, guides everything based on customer needs, and aims to createcustomer value. It continuously supports customers in achieving long-term success and realizes co-creation, co-existence, and win-win outcomes with customers! At the same time, the Company is alsoa platform for realizing dreams and joint development, allowing all those who are willing tocontinuously strive and contribute on the platform to receive their deserved development and rewards,obtain both material and spiritual bounties, and achieve co-construction, sharing, and commondevelopment with those who strive!IV. Main Business Analysis

1. Overview

The Company is a global leading AIoT solution provider and operation service provider. Focusingon the digital intelligent innovation and transformation of cities and enterprises, it continuouslypromotes urban business from improving urban management to efficient urban governance, ensuringorderly operation to urban operation autonomy, enhancing public safety to security system upgrades,

and ecological environment monitoring to ecological collaborative governance. The enterprisebusiness is from optimizing the security system to building a large security system, improvingproduction efficiency to building digital intelligence productivity, assisting business management toimproving business decision-making. It is committed to making society smarter and life better.During the reporting period, under the influence of many factors at home and abroad, theCompany still adhered to the business philosophy of refined management and high-qualitydevelopment, achieving operating revenue of 32.181 billion yuan, a decrease of 0.12% compared tothe same period last year; realizing a net profit of 2.347 billion yuan attributable to the shareholders ofthe listed company after deducting non-recurring gains or losses, a decrease of 20.74% compared tothe same period last year. Main business strategies of the Company include:

1. Promote stability through progress and deepen high-quality developmentThe Company adheres to high-quality development, promotes growth, ecology and humanefficiency, and emphasizes customer first, and pursues commercial success and customerdevelopment; sustains ecological development, builds a new ecosystem of co-construction,coexistence and win-win situation, and endeavors to create unique and differentiated value for itspartners and achieve common growth; improves the management efficiency, the human efficiencyand the organization effectiveness; adheres to balanced business development, and lays a solidfoundation for sustainable high-quality development to meet customers’ needs better. The Companyactively assumes greater social responsibility in ESG, low-carbon, rural revitalization, social povertyalleviation and relief, and technology for equality and good, and fulfills the mission of "enabling asmarter living and a safer society".

2. Delve into the core business of enterprises and assist in the digital and intelligenttransformation of enterprisesThe Company continues to deepen its presence in the business field of enterprise digital andintelligent transformation. In the process of helping enterprise customers with their digital andintelligent transformation, the Company has gradually integrated from peripheral systems into thecore business systems of production, continuously improving hardware richness and AI capabilities,and continuously enhancing the application depth of multi-dimensional perception products andindustry algorithm models in enterprise scenario-based business, realizing scenario-based servicessuch as production safety, online device detection, and operation and maintenance status, helping toensure production safety in the energy industry, as well as improving quality, reducing costs, andincreasing efficiency in the field of intelligent manufacturing.

3. Keep precision investment in research and development, and deepen "five full"capabilities

The Company adheres to the core of technological innovation, maintains large-scale investmentin research and development, and deepens the "five full" capabilities. In 2024, the Company invested

4.213 billion yuan in R&D, registering a year-on-year increase of 6.20%, and accounting for 13.09%of the operating revenue. In addition to maintaining investment in traditional video technology, theCompany continued to strengthen research, development and productization in technical fields suchas multi-dimensional perception, large models in AI, data intelligence, intelligent computing, cloudcomputing, software platforms, network communications, network security, and innovative businessesto deepen the "five full" capabilities, focus on value business scenarios, and build leading solutions,products and technology systems in the industry.

4. Build full-stack capabilities for large models and promote AI industrialization

The Company is guided by scenario-based applications, focuses on core technology research,insists on scientific and technological innovation, actively explores and promotes breakthroughs andapplications of new technologies such as large models and multimodal AI, continuously consolidatesthe foundation of AI engineering, builds full-stack capabilities of large models, and continuouslypromotes the industrialization and commercial success of AI. At the same time, we deeply explore theconnotation of view data, release the value of data, promote the comprehensive upgrade of human-computer interaction, and fully assist the digital intelligence upgrade of cities and enterprises, so as toachieve the closed loop from perceptual intelligence to data intelligence and then to businessintelligence, creating business value for customers with "full intelligence" capabilities.

5. Improve software management capabilities and deepening the data industry chain

The Company has always been committed to promoting the value-added process of dataelements. It positions itself as a provider of data as a resource, practitioner of data as an asset, andenabler of data as a commodity. It uses technology + ecology as a dual-wheel drive to form solutionscovering the entire lifecycle of data, and works with ecological partners to help build a prosperousdata element market. Starting from the dimensions of multi-dimensional perception, multi-connection,view intelligence, and open platform, the newly upgraded intelligent IoT data platform 2.0 deeplyintegrates the Dahua large model and graph-digit fusion capabilities, and builds efficient softwareengineering capabilities. It releases two major industry product systems, Urban Tianji and EnterpriseTianyan, to comprehensively assist efficient urban governance and enterprise digital intelligenceupgrades. The Company has completed the 3.0 architecture upgrade for its public cloud business,building a full cloud product system based on a cloud low-code development middle platform,oriented towards channels, industries, and ecosystems. It provides customers with rich SaaSapplications, including DoLynk Enterprise, Dahua CloudLink, DoLynk, and other public cloud products,

offering enterprises a brand-new operation mode, upgrading from manual to "data + intelligence", andempowering enterprises to transform their digital and intelligent management.

6. Promote the development of innovative businesses and expand new high-potentialgrowth points

In the innovative business, the Company, based on its in-depth understanding of customers'diversified needs and years of experience in AIoT, continues to explore emerging businesses,including: machine vision and mobile robots, thermal imaging, automotive electronics, smart securityinspection, smart fire control, and storage medium, continuously expanding new high-potential growthpoints for the Company.

7. Hand in hand with partners to grow together and create a ecological environment of co-construction, symbiosis and win-win situation

Facing the unprecedented opportunities of digital economy development, the Company willcontinue to explore and practice with ecological partners, and strive to build a comprehensivealtruistic service platform integrating technology, products, solutions, operations, services andmanagement consulting services to help partners keep innovating and developing. Domestically, wecontinued to push our business downward to lower-tier cities, deepen local operations, and build anew ecosystem for lower-tier markets. Overseas, we carried out customer delamination and gradingin our distribution business, make precise investments and marketing, and strengthen brandcoverage. As an integrator, we will focus on key markets and key customers and strengthen thesupport system for lower-tier markets. The Company and its partners will, in line with the concept of"Employee+Partner", continue to implement the integration and development of "New Opportunity,New Idea, New Order, New Mode, New Management, New Goal, New Responsibility", adhere to thealtruistic thinking, strengthen the ecology, and comprehensively support the development of high-quality business.

2. Income and Costs

(1) Composition of operating revenue

Unit: RMB

	2024		2023		Year-on-year increase or decrease
	Amount	Proportion in Operating Revenue	Amount	Proportion in Operating Revenue
Total Revenue	32,180,931,827.17	100.00%	32,218,317,636.77	100.00%	-0.12%
By Industry
Smart IoT Industry	32,180,931,827.17	100.00%	32,218,317,636.7	100.00%	-0.12%

			7
By Product
Smart IoT Products and Solutions	25,775,422,871.14	80.09%	26,644,648,182.18	82.70%	-3.26%
Including: Software Business	1,685,487,112.56	5.24%	1,797,226,644.00	5.58%	-6.22%
Innovative Business (Note)	5,566,291,857.39	17.30%	4,906,653,657.98	15.23%	13.44%
Others	839,217,098.64	2.61%	667,015,796.61	2.07%	25.82%
By region
Domestic	15,886,994,088.01	49.37%	16,891,274,970.99	52.43%	-5.95%
Overseas	16,293,937,739.16	50.63%	15,327,042,665.78	47.57%	6.31%

Domestic Sub-business Segment

Unit: RMB

	2024		2023		Year-on-year increase or decrease
	Amount	Proportion in Domestic Operating Revenue	Amount	Proportion in Domestic Operating Revenue
To G	4,057,234,809.51	25.54%	4,333,197,296.68	25.65%	-6.37%
To B	8,710,034,420.06	54.82%	9,087,212,028.79	53.80%	-4.15%
Others	3,119,724,858.44	19.64%	3,470,865,645.52	20.55%	-10.12%
Total	15,886,994,088.01	100.00%	16,891,274,970.99	100.00%	-5.95%

Note: Innovative business mainly includes machine vision and mobile robots, smart living, thermal imaging,automotive electronics, smart security inspection, smart fire control and storage medium, and other relevantbusinesses; the same as below.

(2) Industry, product, or region accounting for more than 10% of the Company's operating revenue or profit?Applicable □ Not applicable

Unit: RMB

	Operating income	Operating Cost	Gross margin	Increase or decrease of operating revenue compared with the same period of last year	Increase and decrease of operating cost over the same period of last year	Increase or decrease of gross profit compared with the same period of last year
By Industry
Smart IoT Industry	32,180,931,827.17	19,681,686,604.51	38.84%	-0.12%	4.67%	-2.80%
By Product
Smart IoT Products and Solutions	25,775,422,871.14	15,187,851,740.07	41.08%	-3.26%	1.06%	-2.51%
Including: Software	1,685,487,112.56	590,089,111.30	64.99%	-6.22%	-0.88%	-1.88%

Business
Innovative Businesses	5,566,291,857.39	3,765,335,736.52	32.35%	13.44%	18.01%	-2.62%
By region
Domestic	15,886,994,088.01	10,584,111,985.06	33.38%	-5.95%	0.51%	-4.28%
Overseas	16,293,937,739.16	9,097,574,619.45	44.17%	6.31%	9.96%	-1.85%
Domestic Sub-business Segment
To G	4,057,234,809.51	2,426,040,798.49	40.20%	-6.37%	2.10%	-4.96%
To B	8,710,034,420.06	5,587,127,753.92	35.85%	-4.15%	2.24%	-4.01%
Others	3,119,724,858.44	2,570,943,432.65	17.59%	-10.12%	-4.40%	-4.93%

When the statistical caliber of the company's main business data is adjusted in the reporting period, the company'smain business data should be subject to the one after the statistical caliber at the end of the reporting period isadjusted in the most recent year.

□ Applicable ?Not applicable

(3) Is the company's physical sales income greater than the labor income?

?Yes □No

Industry Classification	Item	Unit	2024	2023	Year-on-year increase or decrease
Smart IoT Industry	Sales volume	Unit/set	89,318,564	82,494,035	8.27%
	Production output	Unit/set	91,286,526	79,919,254	14.22%
	Inventory Level	Unit/set	11,908,069	10,493,991	13.48%

Reasons for over 30% changes in related data on year-on-year basis

□ Applicable ?Not applicable

(4) Performance of major sales contracts and major procurement contracts signed by the Company as of thereport period

□ Applicable ?Not applicable

(5) Operating Cost Structure

Industry and Product Classification

Unit: RMB

Industry Classification	Item	2024		2023		Year-on-year increase or decrease
		Amount	Proportion to Operating Cost	Amount	Proportion to Operating Cost
Smart IoT	Operating	19,681,686,604.5	100.00%	18,804,021,731.30	100.00%	4.67%

Industry

Cost

1

Unit: RMB

Product Classification	Item	2024		2023		Year-on-year increase or decrease
		Amount	Proportion to Operating Cost	Amount	Proportion to Operating Cost
Smart IoT Products and Solutions	Operating Cost	15,187,851,740.07	77.17%	15,028,931,547.27	79.92%	1.06%
Including: Software Business	Operating Cost	590,089,111.30	3.00%	595,339,657.86	3.17%	-0.88%
Innovative Businesses	Operating Cost	3,765,335,736.52	19.13%	3,190,755,235.44	16.97%	18.01%
Others	Operating Cost	728,499,127.92	3.70%	584,334,948.59	3.11%	24.67%

(6) Has the scope of consolidation changed during the reporting period?

?Yes □No

(1) In the current period, the Company founded a total of 14 domestic and overseas subsidiaries through investmentestablishment and other means, including Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co., Ltd.,Shandong Dahua Digital Intelligence Technology Co., Ltd., Fujian Dahua Qingchuang Digital Technology Co., Ltd.,Jilin Dahua Zhilian Technology Co., Ltd., Zhengzhou Airport Economy Zone Huaao Technology Co., Ltd., HainanDahua Huizhi Technology Co., Ltd., PT IMOU TEKNOLOGI INDONESIA, PT IMOU INDONESIA SENANTIASA,Hirige Technology Malaysia Sdn. Bhd., Dahua Technology Egypt LLC, DAHUA TECHNOLOGY AUH FORSECURITY & SURVEILLANCE - SOLE PROPRIETORSHIP L.L.C., DaHua Ideal Tech, and the enterprises it controls.The above subsidiaries were included in the scope of consolidation in the current period.

(2) Dahua Technology USA Inc., a subsidiary of the Company, was transferred during the current period and is nolonger included in the consolidation scope from the date of transfer.

(3) The Company's subsidiaries, Yunnan Zhili Technology Co., Ltd. and Wuhu Huajian Technology Co., Ltd. werewritten off in the current period and they will be no longer included in the scope of consolidation as of the date ofwrite-off.

(7) Major changes or adjustments to the company's business, products, or services during the reportingperiod

□ Applicable ?Not applicable

(8) Major Clients and Suppliers

The Company's Major Clients

Total sales amount of the top five customers	3,754,506,222.76
Proportion of the total sales amount of the top five customers to the total annual sales	11.66%

Proportion of the total sales amount of the related parties in the top five customers to the total annual sales

3.95%

Profiles of the Company's top five customers

No.	Name of customer	Sales amount (yuan)	Proportion to the annual sales
1	Company 1 (related party)	1,272,280,696.42	3.95%
2	Company 2	1,074,520,175.03	3.34%
3	Company 3	519,548,285.20	1.61%
4	Company 4	477,445,681.19	1.48%
5	Company 5	410,711,384.92	1.28%
Total	--	3,754,506,222.76	11.66%

Other Information Notes for Major Clients

□ Applicable ?Not applicable

Major suppliers

Total Purchase Amount of Top Five Suppliers (yuan)	3,452,199,971.05
Proportion of the total purchase amount of top five suppliers to the total annual purchase amount	16.87%
Proportion of the total purchase amount of the related parties in top five suppliers to the total annual purchase amount	0.00%

Profiles of the Company's top five suppliers

No.	Supplier Name	Purchase amount (yuan)	Proportion to the total annual purchase amount
1	Company 1	1,252,392,104.10	6.12%
2	Company 2	686,420,981.77	3.35%
3	Company 3	598,241,391.99	2.92%
4	Company 4	477,902,532.13	2.34%
5	Company 5	437,242,961.06	2.14%
Total	--	3,452,199,971.05	16.87%

Other Information Notes for Major Suppliers

□ Applicable ?Not applicable

3. Expenses

Unit: RMB

	2024	2023	Year-on-year increase or decrease	Statement on Significant Changes
Sales Expenses	5,166,733,337.95	5,163,519,417.85	0.06%
Administration expenses	1,141,408,186.63	1,257,429,514.27	-9.23%
Financial expenses	-389,890,980.61	-409,307,989.62	4.74%
Research and development expense	4,213,255,565.73	3,967,248,795.22	6.20%

4. R&D Investment

?Applicable □ Not applicableR&D personnel of the Company

	2024	2023	Change Ratio
Number of R&D personnel	12,689	12,372	2.56%
Percentage of R&D personnel	53.11%	52.80%	0.31%
Education background of R&D personnel
Bachelor	8,196	8,214	-0.22%
master	3,436	3,056	12.43%
Age of R&D personnel
Under 30	6,205	6,537	-5.08%
30-40	5,729	5,253	9.06%

Company's R&D investment

	2024	2023	Change Ratio
R&D investment (yuan)	4,213,255,565.73	3,967,248,795.22	6.20%
The proportion of R&D investment to operating income	13.09%	12.31%	0.78%
Capitalized R&D investment	0.00	0.00	0.00%
Proportion of capitalized R&D investment to R&D investment	0.00%	0.00%	0.00%

Causes and effects of significant changes in the composition of R&D personnel

□ Applicable ?Not applicable

The reason for the significant change in the proportion of the total amount of R&D investment to operating incomecompared with last year

□ Applicable ?Not applicable

Reasons and rational explanations on the substantial change in capitalization rate of R&D investment

□ Applicable ?Not applicable

5. Cash Flow

Unit: RMB

Item	2024	2023	Year-on-year increase or decrease
Subtotal of cash inflow from operational activities	37,318,848,649.22	37,198,634,257.76	0.32%
Subtotal of cash outflow from operational activities	34,608,611,039.92	32,599,855,603.29	6.16%
Net cash flow generated by operating activities	2,710,237,609.30	4,598,778,654.47	-41.07%
Subtotal of cash inflow from investment activities	15,607,688,895.58	4,824,255,692.30	223.53%
Subtotal of cash outflows from investment activities	20,439,774,518.31	3,098,033,765.83	559.77%

Net amount of cash flow generated by investment activities	-4,832,085,622.73	1,726,221,926.47	-379.92%
Subtotal of cash inflow from financing activities	2,365,429,558.19	8,465,159,516.11	-72.06%
Subtotal of cash outflow from financing activities	5,168,848,978.07	6,812,296,481.85	-24.12%
Net cash flow generated by financing activities	-2,803,419,419.88	1,652,863,034.26	-269.61%
Net Increase in Cash and Cash Equivalents	-4,819,128,778.67	8,002,194,542.32	-160.22%

Description of the main factors affecting the significant changes in related data over the same period of last year?Applicable □ Not applicable

1. Net cash flow from operating activities decreased by 41.07% compared to the same period last year, mainly due tothe increase in purchasing expenditures, cash paid to employees, and taxes paid compared to the same period lastyear.

2. The net cash flow from investment activities decreased by 379.92% compared with the same period last year,mainly due to the purchase of large-denomination certificates of deposit in this period and the large amount of cashreceived from the equity transfer in the previous period.

3. Net cash flow from financing activities decreased by 269.61% compared to the same period last year, mainly due tothe receipt of raised funds in the same period last year.Reasons for the significant difference between the net cash flow generated by the company's operating activities in thereporting period and the net profit in the current year

□ Applicable ?Not applicable

V. Non-Main Business Analysis

□ Applicable ?Not applicable

VI. Analysis of Assets and Liabilities

1. Significant changes in assets composition

Unit: RMB

	End of 2024		Early 2024		Proportion increase and decrease	Statement on Significant Changes
	Amount	Proportion To Total Assets	Amount	Proportion To Total Assets
Cash and Bank Balances	11,181,803,423.83	21.20%	15,971,005,114.47	30.20%	-9.00%	Mainly due to the large-denomination certificates of deposit purchased from banks in the current period and the repayment of debts
Accounts	17,046,094,518.79	32.32%	16,276,803,954.03	30.78%	1.54%	No major changes.

receivable
Contract Assets	87,397,517.09	0.17%	86,714,216.34	0.16%	0.01%	No major changes.
Inventory	5,203,560,771.25	9.87%	5,332,608,544.02	10.08%	-0.21%	No major changes.
Investment Property	139,280,586.26	0.26%	129,637,004.00	0.25%	0.01%	No major changes.
Long-term Equity Investment	722,241,568.57	1.37%	727,453,629.75	1.38%	-0.01%	No major changes.
Fixed Assets	4,973,953,628.05	9.43%	4,937,180,876.88	9.34%	0.09%	No major changes.
Projects under Construction	1,254,554,187.36	2.38%	1,008,612,408.49	1.91%	0.47%	No major changes.
Right-of-use assets	232,124,277.86	0.44%	299,202,586.56	0.57%	-0.13%	No major changes.
Short-term loan	995,000,000.00	1.89%	957,426,330.18	1.81%	0.08%	No major changes.
Contract liabilities	1,282,204,348.75	2.43%	1,194,534,307.04	2.26%	0.17%	No major changes.
Lease liabilities	114,313,807.41	0.22%	176,580,049.57	0.33%	-0.11%	No major changes.
Other Non-Current assets	4,327,776,909.06	8.21%	210,809,264.49	0.40%	7.81%	Mainly due to the large-denomination certificates of deposit purchased from banks

The proportion of overseas assets is relatively high

□ Applicable ?Not applicable

2. Assets and liabilities measured at fair value

?Applicable □ Not applicable

Unit: RMB

Item	At the beginning of the reporting period	Changes in fair value gains and losses in the current period	Cumulative fair value changes in equity	Impairment loss of the reporting period	Purchase amount of the reporting period	Sales amount of the reporting period	Other variations	At the end of the reporting period
Financial Assets
1. Trading financial assets (derivative financial assets excluded)		-206,254,198.57			100,802,813.95	91,599,686.10	426,978,600.00	229,927,529.28
2. Other Non-current Financial Assets	1,535,742,385.71	164,033,503.88			2,470,000.00	4,830,000.00	-422,718,398.72	1,274,697,490.87
3.	810,713,2						31,101,99	841,815,2

Receivables financing	67.86						9.57	67.43
4. Other	1,470,000.00						-1,470,000.00
Financial assets subtotal	2,347,925,653.57	-42,220,694.69			103,272,813.95	96,429,686.10	33,892,200.85	2,346,440,287.58
Total of above items	2,347,925,653.57	-42,220,694.69			103,272,813.95	96,429,686.10	33,892,200.85	2,346,440,287.58
Financial liabilities	61,400.12	1,194,709.59					3,012,493.81	4,268,603.52

Are there any significant changes in the measurement attributes of the company's main assets during the reportingperiod?

□ Yes ?No

3. Restrictions on asset rights as of the end of the reporting period

As of December 31, 2024, restricted assets of the Company are as follows:

Item	Book Value at the End of the Perion (RMB)	Cause of restrictions
Cash and Bank Balances	107,576,703.27	Guarantee letter security deposit and other restricted funds
Notes receivable and receivables financing	987,102,426.21	Pledge used to issue bank acceptance bills and endorsed or discounted notes not derecognised
Fixed Assets	787,890,801.32	Fixed assets rented out under operating leases
Total	1,882,569,930.80

VII. Investment Analysis

1. Overview

?Applicable □ Not applicable

Investment in the Reporting Period (RMB)	Investment for the same Period of Last Year	Rate of Change
210,210,937.44	3,337,590,020.22	-93.70%

2. Significant equity investments acquired during the reporting period

□ Applicable ?Not applicable

3. Major non-equity investments underway during the reporting period

?Applicable □ Not applicableFor details, refer to “5. Utilization of raised funds”

4. Financial assets investment

(1). Securities investment

?Applicable □ Not applicable

Unit: RMB

Variety of Securities	Code of Securities	Abbreviation of Securities	Initial Investment Cost	Accounting Measurement Model	Opening Balance on Book Value	Changes in fair value gains and losses in the current period	Cumulative fair value changes in equity	Purchase amount of the reporting period	Sales amount of the reporting period	Profits and Losses in the Reporting Period	Book Value at the End of the Period	Accounting Accounts	Capital Source
Domestic Stocks	688213	SMARTSENS	103,317,000.00	Fair value measurement	426,978,600.00	-206,455,158.21		20,802,813.95	91,599,686.10	109,222,706.41	149,726,569.64	Trading Financial Assets	Equity Fund
Total			103,317,000.00	--	426,978,600.00	-206,455,158.21		20,802,813.95	91,599,686.10	109,222,706.41	149,726,569.64	--	--

(2). Derivatives investment

?Applicable □ Not applicable

1) Derivatives investments for hedging purposes during the reporting period?Applicable □ Not applicable

Unit: ten thousand RMB

Types of derivatives investment	Initial investment amount	Opening balance	Changes in fair value gains and losses in the current period	Cumulative fair value changes in equity	Amount purchased during the reporting period	Amount sold during the reporting period	Closing balance	Proportion of investment amount in the company’s net assets at end of the reporting period
Foreign exchange contract		29,838.25	-99.66		961,678.37	976,916.62	14,600.00	0.41%

Total		29,838.25		-99.66		961,678.37	976,916.62	14,600.00	0.41%
Explanation of whether the Company’s hedging business accounting policies and specific accounting principles have changed significantly during the reporting period compared with the previous reporting period			The Company calculated and presented its foreign exchange derivatives trading business in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments and other relevant provisions. Held-for-trading financial assets/held-for-trading financial liabilities were adopted for initial and subsequent measurements of the foreign exchange contracts. The fair values of the foreign exchange contracts were basically determined by referencing the different parameters of the financial institutions based on the then market conditions as well as the remaining term and duration of transaction, so as to be recognized as the held-for-trading financial assets or held-for-trading financial liabilities. There was no significant change in the fair values of the foreign exchange contracts compared with that in the previous reporting period.
Description of actual profit and loss during the reporting period			The actual revenue amounted to RMB 20.8868 million during the reporting period.
Descriptions of the effect of hedging			The Company carried out foreign exchange hedging business appropriately as the case may be, which could effectively reduce the risks in foreign exchange market and avoid exchange rate fluctuation risks.
Sources of funds for derivatives investment			Equity Fund
Risk analysis and description of control measures for derivatives positions during the reporting period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.)			For details of risk analysis and control measures, please refer to the "Announcement on Conducting Foreign Exchange Hedging Transactions" (Announcement No. 2024-023), which was disclosed by the Company on April 16, 2024.
Changes in market prices or product fair value of invested derivatives during the reporting period, and the analysis of the fair value of derivatives should disclose the specific methods used and the setting of related assumptions and parameters.			The Company recognized and measured its foreign exchange hedging business in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments and other relevant provisions. The fair values of foreign exchange forward contracts were basically measured and recognized by referencing the different parameters of the financial institutions based on the then market conditions as well as the remaining term and duration of the transaction. The fair value change loss of foreign exchange contracts was RMB 996,600 during the reporting period.
Litigation involved (if applicable)			None
Disclosure date of board of directors' announcement on the approval of derivatives investment (if any)			April 16, 2024

2) Derivatives investments for speculative purposes during the reporting period

□ Applicable ?Not applicable

The Company had no derivatives investments for speculative purposes during the reporting period.

5. Utilization of raised funds

?Applicable □ Not applicable

(1) Utilization of raised funds

?Applicable □ Not applicable

Unit: ten thousand RMB

Year of fund-raising	Way of fund-raising	Listing date	Total amount of funds raised	Net funds raised (1)	The amount of funds raised used in the current period	Accumulated aggregate amount of funds raised used (2)	Proportion of raised funds used at the end of the reporting period (3) = (2) / (1)	Amount of funds raised in the current period that were repurposed	Aggregate amount of funds raised as of the current period that were repurposed	Percentage of the aggregate amount of funds raised as of the current period that were repurposed	Amount of funds raised not yet used	Purpose and use of the funds raised not yet used	Amount of funds raised put aside for more than two years
2023	Issuance of shares to specific objects	April 14, 2023	509,999.92	508,983.26	82,583.88	432,276.60	84.93%	30,191.75	30,191.75	5.92% (Note 1)	83,149.32	Deposited in banks	0
Total	--	--	509,999.92	508,983.26	82,583.88	432,276.60	84.93%	30,191.75	30,191.75	5.92% (Note 1)	83,149.32	--	0
Notes on utilization of raised funds
1. According to the “Reply on Approving the Non-public Issuance of Shares by Zhejiang Dahua Technology Co., Ltd.” (Zheng Jian License [2022] No. 853) released by CSRC, the Company issued 293,103,400 shares to specific parties at an issue price of RMB 17.40 per share. The total amount of funds raised in this offering is RMB 5,099,999,160.00 and after deducting RMB 10,166,575.28 (excluding VAT), the cost associated with issuance, the actual net amount of funds raised is RMB 5,089,832,584.72, which has been verified by BDO China Shu Lun Pan CPAs (special general partnership) in the Capital Verification Report (Lixin Accounting Report [2023] No. ZF10231). 2. On August 23, 2024, the Company held the seventh meeting of the eighth Board of Directors and the sixth meeting of the eighth Board of Supervisors, and reviewed and approved the "Proposal on the Completion of Some Fundraising Projects and the Permanent Use of Surplus Fundraising Funds to Supplement Working Capital". In view of the fact that the Company's fundraising investment projects "AIoT Solution R&D and Industrialization Project" and "Supplementary Working Capital Project" have been invested and completed, in order to improve the efficiency of the use of raised funds, with the approval of the Board of Directors and the Board of Supervisors, the Company used the surplus raised funds of the aforementioned fundraising projects and the general account of raised funds totaling RMB 17.7424 million (including interest income from bank deposits) to permanently supplement its working capital, and cancelled the relevant special accounts for raised funds. 3. The Company cumulatively used raised funds of RMB 4322.766 million, the special account of the raised funds has received a net bank interest income of RMB 82.169 million, and as of December 31, 2024, the balance of unused raised funds was RMB 831.4932 million.

Note 1: Percentage of the aggregate amount of funds raised cumulative change in purpose was calculated based onthe total amount of the fund raised.

(2) Projects with pledged investments using raised funds

?Applicable □ Not applicable

Unit: ten thousand RMB

Financing Project Name

Listing date

Projects with pledged investments and investment directions of excess funds due to oversubscription

Project Nature

Whether the projects have been changed (including partial changes)

Total pledged investments using raised funds

Total adjusted investments (1)

Amount Invested in the Current Reporting Period

Cumulative investments as of the end of reporting period (2)

Investment progress as of the end of reporting period (3)=(2)/(1)

The date the project reaches its intended usable status

Benefits realized during the reporting period

Cumulative Income As Of The End Of The Reporting Period

Whether expected benefits have been achieved

Whether there are major changes in project feasibility

Projects with pledged investments

Issuance of shares to specific objects in 2023

April 14, 2023

Project of Smart IoT Solution R & D and Industrialization

Operation Management Project

No

92,990.00

92,990.00

0

92,990.00

100.00%

2023

1,311.73

4,703.28

No

No

The phase II construction project of the smart manufacturing

Production and Construction Project

No

77,580.00

77,580.00

3,579.50

77,859.38

100.36% (Note 2)

2024

6,281.11

6,281.11

No

No

	base in Hangzhou
	Artificial intelligence technology research and development and application research project	Research and Development Project	Yes	88,960.00	119,151.75	51,208.69	75,950.61 (Note 1)	63.74%	2026	N/A	N/A	N/A	No
	5G, IoT and multi-dimensional perception products and solutions R&D project	Research and Development Project	Yes	100,470.00	70,278.25	27,795.69	35,364.62 (Note 1)	50.32%	2026	N/A	N/A	N/A	No
	Replenishment of working capital	Flow Supplement Project	No	148,983.26	148,983.26	0	150,111.99	100.76% (Note 2)	N/A	N/A	N/A	N/A	No
Subtotals for projects with pledged investments			--	508,983.26	508,983.26	82,583.88	432,276.60 (Note 1)	--	--	7,592.84	10,984.39	--	--
Investment directions of excess funds due to oversubscription
N/A
Total			--	508,983.26	508,983.26	82,583.88	432,276.60 (Note 1)	--	--	7,592.84	10,984.39	--	--

Explain the circumstances and reasons for failing to achieve the planned progress and expected benefits for each project (including the reasons for selecting "Not applicable" for "Whether expected benefits have been achieved")	1. The R&D and industrialization project of AIoT solutions failed to achieve the expected benefits mainly because (1) the project revenue was lower than expected due to the impact of the overall industry environment; (2) in order to meet market demand and expand segmented scenarios, some product lines of the project adjusted their product structure, resulting in a decrease in gross margin; and (3) the Company continued to strengthen research and development and productization in technical fields such as software platforms, cloud computing, and big data, and its R&D investment increased. 2. The failure of the Phase II construction project of Hangzhou manufacturing base to achieve the expected benefits was mainly due to the impact of the overall industry environment and the project revenue was lower than expected.
Notes on major changes in project feasibility	N/A
The amount, purpose and progress of the use of the excess funds due to oversubscription	N/A
Changes of the implementation location of the projects using raised funds	Applicable
	Such cases happened during the reporting period
	See (3) Change of projects that use raised funds for details.
Changes of the implementation method of the projects using raised funds	Applicable
	Such cases happened during the reporting period
	See (3) Change of projects that use raised funds for details.
Advance investments and replacements of raised funds in projects	N/A
Temporary replenishment of working capital with idle raised funds	N/A
The amount and reasons for the balance of funds raised in the implementation of the project	The remaining raised funds are RMB 17.7424 million, which is mainly the interest income generated by the raised funds during the deposit period in the project special account and the general account. Considering that the investment projects of the raised funds "AIoT Solution R&D and Industrialization Project" and "Supplementary Working Capital Project" have been completed, with the approval of the Company’s Board of Directors, the Company used the remaining raised funds from the aforementioned projects and the general account to permanently supplement working capital.
The intended use and disposal of the unused funds raised	The unused funds raised (including interest income from the account of the funds raised) are deposited in the Company's special account for the funds raised.
Problems or other circumstances in the use and disclosure of the funds raised	1. On February 1, 2024, the Company completed the replacement of the fund raised with its own funds, with a total replacement amount of RMB 4,038,822,000, of which the replacement amount of the “artificial intelligence technology research and development and application research project” was RMB 344,863,300 (including RMB 7,839,200 of interest), and that of the “5G, Internet of Things and multi-dimensional perception products and solutions R&D project” was RMB 59,018,700 (including RMB 1,354,600 of interest). All the above funds have been deposited to the corresponding special account of the funds raised and the aforesaid matters have been verified by BDO China Shu Lun Pan CPAs (special general partnership) which has issued the Verification Report on Special Explanation of the Replacement of Funds Raised with Own Funds Xin Kuai Shi Bao Zi [2024] No. ZF10020. See (3) Change of projects that use raised funds for details. 2. On May 19, 2023, the Company held the 43rd meeting of the 7th Board of Directors and the 30th meeting of the 7th Board of Supervisors, and reviewed and approved the "Proposal on the Use of Acceptance Bills, Equity Funds,

etc. to Pay Funds for Investment Projects and Replace them with EqualAmounts of Fundraised Funds", agreeing that during the implementation ofthe investment projects with raised funds, the Company would useacceptance bills (including endorsement transfers), own foreign exchange,supply chain bills, and equity funds to advance payment of part of the fundsfor investment projects, and regularly transfer equal amounts from the specialaccount for raised funds to the Company’s equity funds account. This part ofthe equal amount of replacement funds would be deemed as funds used forthe investment projects.

Note 1: The total amount of investment amount as of the end of the period is the total amount of investmentat the end of 2023 plus the investment amount in the current reporting period, net of the amount of raisedfunds replaced by the company's own funds.Note 2: The interest income from bank deposits is the excess of the actual investment amount of thereplenishment of working capital projects over the total pledged investments using raised funds.

(3) Change of projects that use raised funds

?Applicable □ Not applicable

Unit: ten thousand RMB

Financing Project Name	Way of fund-raising	Changed projects	Corresponding original commitment projects	Total amount of funds raised to be invested in the changed projects (1)	Actual amount invested in the current reporting period	Actual total amount invested as of the end of reporting period (2)	Investment progress as of the end of reporting period (3)=(2)/(1)	The date the project reaches its intended usable status	Benefits realized during the reporting period	Whether expected benefits have been achieved	Are there any major changes in feasibility of the changed projects?
Issuance of shares to specific objects in 2023	Issuance of shares to specific objects	Artificial intelligence technology research and development and application research project	Construction Project of Xi'an R & D Center	119,151.75	51,208.69	75,950.61	63.74%	2026	N/A	N/A	No
		5G, IoT and multi-dimensional percep	New project of Southwest R&D Center	70,278.25	27,795.69	35,364.62	50.32%	2026	N/A	N/A	No

		tion products and solutions R&D project	of Dahua Co., Ltd.
Total	--	--	--	189,430.00	79,004.38	111,315.23	--	--		--	--
Explanation of reasons for changes, decision-making procedures and information disclosure (by project)			1. Reasons for increasing the scale of investment of funds raised in the artificial intelligence technology research and development and application research project (formerly "Construction Project of Xi'an R & D Center"): With the launch of ChatGPT in November, 2022, artificial intelligence has gradually entered the development stage of big model in AGI (General Artificial Intelligence). The integrated development of digitalization and AGI will bring a new round of development cycle and transformation to the industry. The "industry brain" that fully combines industry experience in the visual field is the inevitable path for the real commercial landing of artificial intelligence model, and it is also one of the key research and development fields of many technology enterprises around the world. The company has accumulated a lot of experience in many industries concerning the government and enterprises. In the future, it needs to further increase R & D resources investment and talent echelon construction in large visual models in artificial intelligence, and trains the large visual model in artificial intelligence for industry landing application through the ability of the big model and the knowledge accumulated in industry segments, to promote the digital and intelligent business development of the government and the enterprise, and to further enhance the Company's core competitiveness. Therefore, the amount of the project investment and the investment scale of the funds raised are increased. 2. Reasons for reducing the investment scale of funds raised 5G, Internet of Things and multi-dimensional perception products and solutions R&D projects (formerly "New project of Southwest R&D Center of Dahua Co., Ltd."): Given that the R&D center in Hangzhou headquarters has quickly seized the R&D opportunities in the fields of 5G and multi-dimensional perception by using the existing technology precipitation, successively released more than ten integrated 5G products and more than 30 5G smart application solutions, and released the 6D omni-domain perception technology in full-time domain, full-space domain, full-color domain, and full-frequency domain by utilizing the advantages of the multi-dimensional perception technology, to lead the industry to continuously expand the boundaries of the perception capability, deeply practice the integration of visual intelligence and multi-dimensional perception, and accelerate the business innovation and application. Therefore, in the direction of "5G and multi-dimensional perception", the Company can carry out the research and development work quickly by reusing the resources and achievements of the R&D center at Hangzhou headquarter, seize the opportunities of the industry development, and optimize the use efficiency of the funds raised and the layout of the project investment. After the project has reused the resources of the R&D center at Hangzhou headquarters, the Company has reduced the investment amount in hardware and software of the special laboratory and R&D facilities to be set up as planned in Chengdu, taking into account such factors as saving operating costs and improving the use efficiency of the funds raised. 3. The Company held the 4th Meeting of the 8th Board of Directors and the 3rd Meeting of the 8th Board of Supervisors on January 12, 2024, and the First Extraordinary General Meeting of Shareholders of 2024 on January 29, 2024, during which the "Proposal on Adjusting the Investment Amount and Investment Structure of Part of the Funds Raised Projects, and Increasing the Implementing Subjects and Implementation Locations" was considered and adopted. The Company also agreed to adjust the investment amount of the "Construction Project of Xi'an R & D Center" and the "New project of Southwest R&D Center of Dahua Co., Ltd.", the investment amount of the funds raised, internal investment structure, implementation method and subject,

	implementation locations, and project name.
Situations and reasons for failure to achieve planned progress or expected benefits (by project)	N/A
Notes on major changes in project feasibility after change	N/A

VIII. Major Assets and Equity Sales

1. Major assets sales

□ Applicable ?Not applicable

No major assets were sold during the reporting period of the Company.

2. Major equity sales

□ Applicable ?Not applicable

IX. Analysis of Major Subsidiaries and Associates?Applicable □ Not applicableMajor subsidiaries and joint-stock companies with a net profit impact of over 10%.

Unit: RMB

Company Name	Company Type	Main businesses	Registered Capital	Total Assets	Net Assets	Operating income	Operating Profit	Net Profit
Zhejiang Dahua Vision Technology Co., Ltd.	Subsidiary Company	Technology development, services, consultation, and transfer; manufacturing, sales, and system services of computer hardware and software; manufacturing and sales of security devices, mechanical and electrical devices, and photovoltaic devices; sales and technical services of IoT devices; charging pile sales; warehousing services, bonded	1,306,810,000.00	23,340,493,944.39	2,561,502,790.32	23,382,881,120.18	82,965,068.22	67,452,055.56

		warehouse operation.
Zhejiang Dahua Zhilian Co., Ltd.	Subsidiary Company	Technology development, services, consultation, and transfer; manufacturing and marketing of computer hardware and software; development, manufacturing and marketing of electronic products and electronic components, safety equipment and communication devices; leasing of self-owned houses; warehousing services; catering services; import and export of goods	1,885,800,000.00	6,388,777,311.37	1,631,899,284.65	6,113,767,350.88	75,555,858.67	3,691,557.78

Acquisition and disposal of subsidiaries during the reporting period?Applicable □ Not applicable

Company Name	Method of acquisition and disposal of subsidiaries during the reporting period	Impact on overall production management and performance
Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co., Ltd.	Established with investment	No significant impact on overall production, operation, and performance
Shandong Dahua Digital Intelligence Technology Co., Ltd.	Established with investment	No significant impact on overall production, operation, and performance
Fujian Dahua Qingchuang Digital Technology Co., Ltd.	Established with investment	No significant impact on overall production, operation, and performance
Jilin Dahua Zhilian Technology Co., Ltd.	Established with investment	No significant impact on overall production, operation, and performance
Zhengzhou Airport Economy Zone Huaao Technology Co., Ltd.	Established with investment	No significant impact on overall production, operation, and performance
Hainan Dahua Huizhi Technology Co., Ltd.	Established with investment	No significant impact on overall production, operation, and performance
PT IMOU TEKNOLOGI INDONESIA	Established with investment	No significant impact on overall production, operation, and performance
PT IMOU INDONESIA SENANTIASA	Established with investment	No significant impact on overall production, operation, and performance
HIRIGE TECHNOLOGY MALAYSIA	Established with investment	No significant impact on overall

SDN. BHD.		production, operation, and performance
Dahua Technology Egypt LLC	Established with investment	No significant impact on overall production, operation, and performance
DAHUA TECHNOLOGY AUH FOR SECURITY & SURVEILLANCE – SOLE PROPRIETORSHIP L.L.C.	Established with investment	No significant impact on overall production, operation, and performance
Dahua Technology USA Inc.	Equity transfer	No significant impact on overall production, operation, and performance
Yunnan Zhili Technology Co., Ltd	Logout	No significant impact on overall production, operation, and performance
Wuhu Huajian Technology Co., Ltd.	Logout	No significant impact on overall production, operation, and performance
DaHua Ideal Tech and the companies it controls	New	No significant impact on overall production, operation, and performance

X. Structured Entity Controlled by the Company

□ Applicable ?Not applicable

XI. Prospects for the Future Development of the Company

1. Focus on the main channel of AIoT and strive to build the world's preferred brand ofAIoTThe Company regards technological innovation as its core competitiveness, focusing resourceson refining and perfecting each product to enhance the quality of business growth; at the same time,it deeply explores valuable industries and valuable customers, achieves balanced development ofdistribution channels, integrator customers, and industry users, and realizes product value. Facedwith the highly fragmented market of AIoT, ecological development is the Company's long-termstrategic choice. Distributors, integrators, ISVs, software service providers, installation serviceproviders, etc., are all long-term partners. The Company will play the ecological "amplifier" effect toachieve a win-win value with its partners.

2. Focus on key work

(1) Continue to increase investment in innovation and core technologies, form core technologybarriers, adhere to the two major technical directions of AIoT and intelligent IoT data platform, build a"five full" capabilities foundation, realize the "three improvements" of full-domain 6D perceptiontechnology, upgrade video perception capabilities in multiple dimensions, comprehensively expandfull-frequency domain perception capabilities, strengthen research and development and investmentin the field of artificial intelligence, combine multi-modal and large model technology capabilities,

promote the research and development and industrial implementation of industry visual large modelsfor industry applications, accelerate the industrialization and upgrading of AI, and further expand thescale of digital and intelligent business in cities and enterprises.

(2) Adhere to the full ecosystem strategy, anchor the realization of customer value, buildcomprehensive open capabilities from technology, business, to services, and fully open up to industrycustomers and developers from hardware, software, algorithms, to services and businessecosystems. Work with ecosystem partners to open up new areas, create new momentum, jointlycreate and build unlimited possibilities for industrial development, and empower the digital intelligenceof thousands of industries.

(3) Optimize the layout of the global marketing and service system, continue to deepen businessinto key cities in China and key overseas countries, strengthen regional operating capabilities,collaborate with ecosystem partners to deepen industry development, accelerate the response speedto front-line business and enhance service content, accurately match resources, and build value forcustomers.

(4) In the innovative business, the Company, based on its in-depth understanding of customers'diversified needs and years of experience in AIoT, continues to explore emerging businesses,including: machine vision and mobile robots, thermal imaging, automotive electronics, smart securityinspection, smart fire control, and storage medium, to continuously expand new high-potential growthpoints for the Company.

(5) Deepen intelligent manufacturing and build a customer-oriented digital supply system. Bybuilding digital supply chain capabilities, visualizing the manufacturing process, optimizing logistics,effectively managing suppliers, planning delivery capabilities, and ensuring efficient internalcollaboration, we can fulfill delivery commitments on time and reliably to meet customer needs.

(6) Enhance business operating efficiency, focus on high-quality operations, further improve therefined management of customers and business opportunities, and strengthen front-line operationalcapabilities. The supply chain shortens delivery time and further reduces costs through flexible supply.Strengthen quality management, comprehensively improve delivery and product quality, and promotethe practical application of new technologies in intelligent software programming, intelligent pre-sales,and intelligent operation and maintenance.

(7) Deepen organizational capacity, develop talent teams, stabilize the talent hierarchy, andpromote a virtuous cycle of management personnel and professional talents; cultivate a high-performance culture and clarify organizational responsibilities, enhance organizational efficiency andper capita efficiency; inspire hard work and reciprocation, and continue to promote the "EmployeeDevelopment Community Plan".

(8) Continue to advance the construction of the Company's compliance system to effectivelysafeguard compliant operations and stable development of the business.XII. Reception of Visits, Communication, Interviews, and Other Activities in theReport Period

?Applicable □ Not applicable

Reception Time	Reception location	Reception Method	Reception target type	Reception objects	Main content of the discussion and the information provided	Index of the basic information of research
January 23, 2024	Company meeting room	Field Investigation	Institution	Dongxing Fund, Haitong Securities, and 28 other institutions	Business situation in 2023 and outlook for 2024, with a focus on communication and exchange on customer ecosystem construction and full-sensing field business.	Juchao Information Network "Investor Relations Activity Record Form from January 23 to 25, 2024"
April 16, 2024	Company meeting room	Telephone communication	Others	222 institutions, including CITIC Securities, China Merchants Asset Management, and 15 individual investors	The Company's operating conditions in 2023 and strategic development plan for 2024	Juchao Information Network "Investor Relations Activity Record Form on April 16, 2024"
May 13, 2024	Company meeting room	Field Investigation	Others	10 institutions, including CITIC Securities, China Merchants Asset Management, and 9 individual investors	Communicate and exchange ideas on future industry situation, overseas business, investor returns, etc.	Juchao Information Network "Investor Relations Activity Record Form on May 17, 2024"
August 24, 2024	Company meeting room	Telephone communication	Others	110 institutions, including CITIC Securities, China Merchants Asset Management, and 3 individual investors	The Company's operating situation in the first half of 2024	Juchao Information Network "Investor Relations Activity Record Form on August 24, 2024"
October 26, 2024	Company meeting room	Telephone communication	Others	129 institutions, including CITIC Securities, China Merchants Asset Management, and 4 individual investors	The Company's operating situation in the first three quarters of 2024	Juchao Information Network "Investor Relations Activity Record Form on October 26, 2024"

13. Development and implementation of market value management system andvaluation enhancement plan

Whether the Company has established a market value management system.?Yes □No

Whether the Company has disclosed its valuation enhancement plan.

□ Yes ?No

In order to strengthen the Company's market value management work, further standardize the Company's marketvalue management behavior, and safeguard the legitimate rights and interests of the Company, investors, and otherstakeholders, the Company has formulated a market value management system. The Company should focus on itscore business and improve its operating efficiency and profitability. At the same time, based on its own circumstances,it can use a combination of mergers and acquisitions, equity incentives, employee stock ownership plans, cashdividends, investor relations management, improved information disclosure quality, share buybacks, and other legaland compliant methods to enhance the Company's investment value.XIV. Implementation of the “Increase in Both Quality and Returns” Action PlanHas the Company disclosed the announcement of the "Increase in Both Quality and Returns" action plan??Yes □NoTo safeguard the interests of all shareholders, the Company has formulated the “Increase in BothQuality and Returns” Action Plan based on its confidence in the future development prospects andrecognition of its stock value. For details, see the Announcement on “Increase in Both Quality andReturns” Action Plan (Announcement No. 2024-013) published on Juchao Information Network onFebruary 7, 2024.

The Company always takes high-quality development as its theme and always adheres to thecore values of "achieving customers, achieving strivers". It fulfills the mission of "making societysmarter and life better", relying on two technical strategies: AIoT and the intelligent IoT data platform.It effectively integrates artificial intelligence, big data, and IoT technologies into the Company'sproducts and solutions, serving urban digital innovation and enterprises' digital and intelligenttransformation. The Company is committed to building a preferred brand of AIoT, promoting high-quality, green, and innovative development of the economy and society.The Company continues to strengthen the foundation of corporate governance, build a soundinternal control system, and promote the "shareholders' meeting, board of directors, board ofsupervisors and senior management" to fulfill their responsibilities and homing. Standardize the rightsand obligations of the Company and shareholders, to prevent the abuse of shareholders' rights andprevent the dominant position of management from harming the rights and interests of small andmedium investors. Strengthen the management of investor relations, broaden the channels forinstitutional investors to participate in corporate governance, guide small and medium-sized investors

to actively participate in general meeting of shareholders, and create convenience for all kinds ofinvestors to participate in major decision-making to enhance their right to speak and sense of gain.The Company has built a firm sense of returning to shareholders while laying a solid foundationfor its development. It insists on cash dividends every year, and since its listing, the total amount ofcash dividends has exceeded RMB 7.5 billion. During the reporting period, the Company formulatedand implemented a profit distribution plan for the first half of 2024, and distributed cash of about RMB602 million in total to all shareholders. Meanwhile, taking into account the future businessdevelopment of the Company and the capital needs of production and operation, the Companyformulated the 2024 annual profit distribution plan, and intended to distribute cash of RMB 4.58 (taxincluded) per 10 shares to all shareholders, with a cash dividend of about RMB 1.502 billion, in orderto make the shareholders obtain better returns.

Section IV Corporate GovernanceI. Basic Situation on Corporate GovernanceThe Company strictly follows the requirements of relevant laws, regulations, rules and normative documents such asthe Company Law, the Securities Law and the Governance Guidelines for Listed Companies, and has established a"shareholders' meeting, board of directors, board of supervisors and senior management" corporate governancestructure consisting of the general meeting of shareholders, the Board of Directors, the Board of Supervisors and themanagement. The Board of Directors has four special committees: the strategic committee, the audit committee, thenomination committee and the remuneration and assessment committee. Each institution has clear responsibilities andpowers and operates in a coordinated manner.During the reporting period, the Company continued to improve its corporate governance structure, establish andimprove its internal control system, continuously enhance its standardized operation level, strictly fulfill its informationdisclosure obligations, and focus on protecting the interests of investors. During the reporting period, the actualsituation of corporate governance is basically in line with the legal, regulatory, normative documents, and self-regulatory rules regarding the governance of listed companies issued by the China Securities Regulatory Commission,Shenzhen Stock Exchange, and others.(I) Shareholders and General Meeting of ShareholdersThe Company convenes and holds general meetings of shareholders in strict accordance with the provisions andrequirements of the Company Law, the Articles of Association, and the Rules of Procedure for General Meeting ofShareholders, and is able to treat all shareholders equally, thus ensuring shareholders' rights to know, participate, andvote on major matters of the Company. During the reporting period, three general meetings of shareholders were held,and resolutions were made on issues such as regular reports, adjustments to fundraising and investment projects, andcash dividends. The Company hired lawyers to issue legal opinions on matters such as the convening of the generalmeeting of shareholders, the qualifications of attendees, the qualifications of the convener, the voting procedures andthe voting results, to ensure that the operating mechanism of the general meeting of shareholders complies withrelevant regulations and safeguards the legitimate rights and interests of shareholders.(II) The Company and Controlling ShareholderThe Company is independent from the controlling shareholder in terms of business, personnel, assets, finance, andorganization, and each has independent accounting and bears independent responsibilities and risks. During thereporting period, the controlling shareholder was able to strictly regulate its own behavior and exercise shareholderrights under relevant laws, regulations, and the Company's Articles of Association. There was no situation of abusingits controlling position to damage the legitimate rights and interests of the listed company and other shareholders, norwas there any situation of occupying the listed company's funds for non-commercial purposes.(III) Directors and the Board of DirectorsThe Company elects the directors and appoints the independent directors in strict accordance with the selection andemployment procedure specified in the Company Law and the Articles of Association. At present, the Company has

nine directors, including three independent directors, all of whom are experts in corporate management, financialaccounting, and other fields. The number and composition of the Board of Directors meet the requirements of relevantlaws and regulations and the Articles of Association. All directors of the Company can perform their duties honestlyand diligently in accordance with the requirements of maximizing the interests of the Company and shareholders. TheBoard of Directors convenes board meetings and implements the resolutions of the shareholders' meeting in strictaccordance with the Articles of Association and the Rules of Procedure of the Board of Directors; all the directors areable to perform their due duties and conscientiously attend the Board meetings and shareholders' meetings tosafeguard the legitimate rights and interests of the Company and shareholders.(IV) Supervisors and the Board of SupervisorsThe Board of Supervisors of the Company strictly elects the supervisors by the election and appointment proceduresspecified in the Company Law and the Articles of Association. The Company currently has three supervisors, and thenumber and composition of the Board of Supervisors meet the requirements of relevant laws and regulations and theArticles of Association. The board of supervisors convenes supervisor meetings in strict accordance with the Articles ofAssociation and the Rules of Procedure of the Board of Supervisors. All the supervisors perform their dutiesconscientiously, and effectively supervise and express independent opinions on the legitimacy and compliance of theperformance of the corporate finance, directors and senior managers in an integral, diligent and conscientious manner,to safeguard the legitimate rights and interests of the Company and shareholders.(V) Senior ManagementThe Company's senior management has clear responsibilities and is able to perform their duties in strict accordancewith the Articles of Association and other management systems, act diligently and conscientiously, and effectivelyimplement and execute the resolutions of the Board of Directors.(VI) Performance Appraisal and Incentive and Restrictive MechanismsIn order to further establish and improve the Company's incentive mechanism and enhance the concept of commonsustainable development between the Company, management and core backbone employees, the Company hasimplemented option and Restricted Share Incentive Plan to strengthen the interest sharing and restraint mechanismbetween shareholders and core business personnel, maintain the stability of the management team and businessbackbones, ensure the realization of the Company's development strategy and business objectives, and ensure thelong-term and stable development of the Company. The appointment of company executives is open, transparent andcomplies with laws and regulations.(VII) StakeholdersThe Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders. While strivingto achieve a steady growth of the Company's performance, the Company also effectively treats and protects thelegitimate rights and interests of all stakeholders, strengthens communication and cooperation with all parties,continuously improves product quality, emphasizes corporate social responsibility, and realizes the balance ofinterests among shareholders, employees, society, etc., in order to promote sustainable, stable, and healthydevelopment of the Company.

(VIII) Information Disclosure and Investor RelationsThe Company performs obligations for truthful, accurate, timely, and complete information disclosure in strictaccordance with the relevant laws and regulations and the Company's Information Disclosure Management Systemand Investor Relations Management System, and designates Securities Times and Juchao Information Network(www.cninfo.com) as the media channels for such disclosure; the Company strictly enforces the confidentiality ofundisclosed information. In accordance with the provisions of the Company's Inside Information Confidentiality System,the registration and filing of insiders of insider information is done conscientiously. The internal information insider filingsystem has been established and submitted to the regulatory authorities for record in time as required, and thebehavior of submitting company information to external information users has been strictly regulated. During thereporting period, no incidence of stock trading based on insider information has occurred.At the same time, the Company actively carries out exchanges with investors, opens an investor relationsmanagement column on the Company's official website, and responds to investors' questions through the ShenzhenStock Exchange's investor interactive relations platform, the Company's investor hotline, etc., to keep investorcommunication channels smooth, help investors understand the Company, get closer to the Company, improve theCompany's transparency, and protect the legitimate rights and interests of all shareholders.Whether the actual status of corporate governance significantly deviates from the laws, administrative regulations, andthe regulations issued by the China Securities Regulatory Commission regarding the governance of listed companies.

□ Yes ?No

There is no significant difference between the actual situation of corporate governance and the laws, administrativeregulations, and the provisions of listed companies issued by the China Securities Regulatory Commission.II. The Company’s Independence from the Controlling Shareholder and ActualController in terms of the Company’s Assets, Personnel, Finance, Organization,Business, etc.The company and the controlling shareholders are completely separated in terms of business, personnel, assets,organization, and finance, and has independent and complete businesses and capabilities of independent operation.

1. Business independence

The company's business is independent of the controlling shareholders, actual controllers and other enterprises undertheir control, and has an independent and complete R&D, production, procurement, and sales system; the technologyrequired for production and operation is legal, independently owned, or licensed for use by the company with no assetdisputes. The company has signed all external contracts independently, and has the ability to independently makeproduction and operation decisions and engage in production and business activities.

2. Personnel independence

The company's personnel are independent from the controlling shareholders, actual controllers and other companiescontrolled by them. The company has an independent human resources department responsible for labor, personneland payroll management. The Company has established an independent labor, personnel, and salary managementsystem. The production, operation, and administration are independent of the controlling shareholders, actualcontrollers, and other companies controlled by them; the recommendation, election, and appointment of directors,

supervisors, and senior managers of the Company have all been conducted legally and independently; seniormanagement personnel such as the president, executive president, senior vice president, secretary of the Board ofDirectors, and finance director did not hold positions other than directors and supervisors for controlling shareholders,actual controllers, and other companies controlled by them or receive salaries from them; the Company's financial staffdo not have a part-time job with the controlling shareholders, actual controllers, and other companies controlled bythem.

3. Asset independence

The company's assets are independent from the controlling shareholders, actual controllers and other companiescontrolled by them. The company's main assets include the ownership and use rights of complete land, plants,machinery and equipment, trademarks, patents, non-patented technology required for the main business, and anindependent raw material procurement and product sales system. The property rights of the above assets are clearand completely independent of the controlling shareholders and major shareholders. There was misappropriation ofthe company's assets by the controlling shareholders and major shareholders.

4. Organizational independence

The company's organizations are independent from the controlling shareholders, actual controllers and othercompanies controlled by them. The Company has established a general meeting of shareholders, Board of Directors,Board of Supervisors, and other decision-making, implementation, and supervision organizations. It has alsoappointed senior managers such as president, executive president, vice president, board secretary, and chief financialofficer; the Company has set up specialized departments equipped with the necessary personnel independentlyresponsible for domestic/overseas sales, R&D, supply chain, delivery and service, quality and service, finance, legalaffairs, securities, internal audit, human resources, administration, IT, and other functions. The internal organizationsperform their respective operational management responsibilities under the leadership of the Board of Directors andthe president in accordance with the rules and regulations; there have been no cases in which the controllingshareholders, actual controllers, and other companies controlled by them are confused with their identities and duties;there has been no incidence of the controlling shareholders or actual controllers intervening in the establishment of theCompany's organizational setup.

5. Financial independence

The company's finance is independent from the controlling shareholders, actual controllers and other companiescontrolled by them. The company has established an independent financial department with full-time financialaccounting personnel, and has established an independent financial accounting system for independent financialdecisions. It has a standardized financial accounting system and financial management system for subsidiaries; thecompany has independently opened a basic deposit account so that there is no sharing of bank accounts with actualcontrollers, controlling shareholders, and other companies controlled by it; the company handled tax registrations withthe Zhejiang Provincial State Tax Bureau and the Zhejiang Provincial Local Tax Bureau and paid taxes independentlyas required by law.III Horizontal competition

□ Applicable ?Not applicable

IV. Relevant Situation of the Annual General Meeting of Shareholders and theExtraordinary General Meeting of Shareholders Held in the Reporting Period

1. The shareholders' meetings for this reporting period

Conference Session	Conference Type	Percentage of Investors Involved	Date of Conference	Date of Disclosure	Conference Resolution
First Extraordinary General Meeting of Shareholders in 2024	Extraordinary General Meeting	45.49%	January 29, 2024	January 30, 2024	For details, see the Announcement of Resolution of the First Extraordinary General Meeting of Shareholders in 2024 disclosed by Juchao Information Network (www.cninfo.com.cn).
2023 Annual General Meeting of Shareholders	Annual General Meeting	41.62%	May 13, 2024	May 14, 2024	For details, see the Announcement of Resolution of 2023 Annual General Meeting of Shareholders disclosed by Juchao Information Network (www.cninfo.com.cn).
Second Extraordinary General Meeting of Shareholders in 2024	Extraordinary General Meeting	46.01%	September 9, 2024	September 10, 2024	For details, see the Announcement of Resolution of the Second Extraordinary General Meeting of Shareholders in 2024 disclosed by Juchao Information Network (www.cninfo.com.cn).

2. Convening of the Extraordinary General Meeting of Shareholders upon request of thepreferred stockholders whose voting rights are restored

□ Applicable ?Not applicable

V. Directors, Supervisors, and Senior Management

(1) Basic information

Name

Gender

Age

Post

Position status

Starting date of tenure

Termination Date of tenure

Number of shares held at the beginning of the period (share)

Number of shares increased in the period (share)

Number of shares decreased in the period (share)

Other changes (share)

Number of shares held at the end of the period

Reasons for the changes in the number of shares

Fu Liquan

Male

58

Chairman

Incumbent

April 01, 2005

September 10, 2026

1,023,868,980

0

0

0

1,023,868,980

N/A

Wu Jun

Male

53

Vice Chair

Incumbent

April 01,

September

69,172,886

0

0

0

69,172,886

N/A

			man		2005	10, 2026
Chen Ailing	Female	58	Director	Incumbent	April 01, 2005	September 10, 2026	71,262,813	0	0	0	71,262,813	N/A
Zhao Yuning	Male	48	Director	Incumbent	March 6, 2023	September 10, 2026	1,312,600	0	0	0	1,312,600	N/A
Yuan Lihua	Male	57	Director	Incumbent	September 11, 2023	September 10, 2026	0	0	0	0	0	N/A
Zhang Xiaoming	Male	53	Director	Incumbent	September 11, 2023	September 10, 2026	0	0	0	0	0	N/A
Liu Hanlin	Male	62	Independent Director	Incumbent	August 12, 2020	September 10, 2026	0	0	0	0	0	N/A
Zhang Yuli	Male	60	Independent Director	Incumbent	August 12, 2020	September 10, 2026	0	0	0	0	0	N/A
Cao Yanlong	Male	50	Independent Director	Incumbent	December 20, 2021	September 10, 2026	0	0	0	0	0	N/A
Song Maoyuan	Female	43	Employee Supervisor	Incumbent	April 03, 2008	September 10, 2026	0	0	0	0	0	N/A
Zheng Jieping	Female	46	Employee Supervisor	Incumbent	August 12, 2020	September 10, 2026	50,200	0	0	0	50,200	N/A
Jia Qi	Male	47	Supervisor	Incumbent	September 11, 2023	September 10, 2026	0	0	0	0	0	N/A
Fu Liquan	Male	58	President	Incumbent	February 27, 2020	September 10, 2026
Zhao Yuning	Male	48	Executive President	Incumbent	December 19, 2022	September 10, 2026
Liu Ming	Male	44	Senior Vice President	Incumbent	October 12, 2020	September 10, 2026	805,500	0	0	0	805,500	N/A

Li Zhijie	Male	50	Senior Vice President	Incumbent	February 27, 2020	September 10, 2026	940,600	0	0	0	940,600	N/A
Song Ke	Male	47	Senior Vice President	Incumbent	October 12, 2020	September 10, 2026	327,600	0	0	0	327,600	N/A
Wu Jian	Male	51	Secretary of the Board of Directors, Senior Vice President	Incumbent	December 01, 2005	September 10, 2026	1,624,935	0	0	0	1,624,935	N/A
Xu Qiaofen	Female	53	Senior Vice President, Chief Financial Officer	Incumbent	February 27, 2020	September 10, 2026	828,600	0	0	0	828,600	N/A
Xu Zhicheng	Male	59	Senior Vice President	Incumbent	22 March 2018	September 10, 2026	882,600	0	0	0	882,600	N/A
Zhu Jiantang	Male	43	Senior Vice President	Incumbent	22 March 2018	September 10, 2026	1,075,825	0	0	0	1,075,825	N/A
Chen Qiang	Male	43	Senior Vice President	Incumbent	April 15, 2024	September 10, 2026	53,040	0	0	0	53,040	N/A
Gao Chunshan	Male	47	Senior Vice President	Resigned	April 15, 2024	December 09, 2024	353,640	0	0	0	353,640	N/A
Total	--	--	--	--	--	--	1,172,559,819	0	0	0	1,172,559,819	--

During the reporting period, were there any directors or supervisors leaving their posts or senior managementdismissed during their term of office??Yes □NoDuring the reporting period, due to the Company's business management adjustments, Mr. Gao Chunshan applied toresign from the positions of Senior Vice President and President of the Domestic Marketing Center. For details, pleasesee the "Announcement on the Resignation of Senior Management" disclosed by the Company on Juchao InformationNetwork on December 10, 2024.

Changes of Directors, Supervisors and Senior Management of the Company?Applicable □ Not applicable

Name	Title	Type	Date	Reasons
Chen Qiang	Senior Vice President	Appointment	April 15, 2024	Appointment
Gao Chunshan	Senior Vice President	Appointment	April 15, 2024	Appointment
Gao Chunshan	Senior Vice President	Dismissal	December 09, 2024	Job transfer

2. Position status

Professional backgrounds, major work experiences and current main responsibilities in the Company for incumbentdirectors, supervisors and senior management of the CompanyMr. Fu Liquan, Chinese nationality, born in 1967, with an EMBA degree from Zhejiang University. As one of the mainfounders of the Company, he has served as the director, chairman, and president of the Company and currently holdsthe titles of chairman and president of the Company. He has won the honors of "Top Ten Influential ZhejiangEntrepreneurs", "Model Worker of Zhejiang Province", "Outstanding Constructer of Socialism with ChineseCharacteristics in the New Era of Non-Public Economy in Zhejiang Province", "Excellent Enterprise Operator withOutstanding Contributions to the Information Economy", "Outstanding Figure Award of China Security - Tribute to the40 Years Anniversary of Reform and Opening Up", "Excellent Contributions Award in 'Ingenuity for a Safe China'",Global Security Contribution Award, Top Ten Figures in Security and Protection Industry, and the Best CEO of listedcompanies of Forbes.Mr. Wu Jun, Chinese nationality, born in 1972, with a bachelor's degree, engineer, served as vice chairman and vicepresident of the Company and general manager of Zhejiang Dahua System Engineering Co., Ltd. He now serves asvice chairman of the Company and executive director of Zhejiang Dahua System Engineering Co., Ltd.Ms. Chen Ailing, Chinese nationality, born in 1967, has a bachelor's degree. As one of the main founders of theCompany, she served as director, CFO of the Company, and now serves as director of the Company.Mr. Zhao Yuning, of Chinese nationality, was born in 1977 and holds a master's degree in science from the NationalUniversity of Singapore. From July 2017 to December 2022, he served as Vice President of the Company, GeneralManager of the Overseas Marketing Center, Senior Vice President of the Company, and President of the OverseasMarketing Center. He currently serves as the Company's director, executive president, and president of the DomesticMarketing Center.Mr. Yuan Lihua, Chinese nationality, born in 1968, with a master's degree. He has served as director and deputygeneral manager of China Mobile Communications Group Terminal Co., Ltd., and deputy general manager of theOverseas Investment Management Department of China Mobile Communications Group Co., Ltd. He is currentlyserving as the director of the Company, director, deputy general manager, and general legal counsel of China MobileCapital Holdings Co., Ltd.Mr. Zhang Xiaoming, Chinese nationality, born in 1972, holds a master's degree. He was formerly the Deputy GeneralManager of the Marketing Center of China Mobile Communications Group Beijing Co., Ltd., Manager of the KeyAccount Department of the Customer Service Division of China Mobile Communications Group Co., Ltd., and DeputyGeneral Manager of Aspire Holdings Limited. He is currently the director of the Company.Mr. Cao Yanlong, Chinese nationality, born in 1975, member of the Communist Party of China, holds a doctoraldegree. He has served as a lecturer/postdoctoral fellow at the College of Food Science and Technology at ZhejiangUniversity, a visiting scholar at the Centre for Precision Technologies (CPT) at the University of Huddersfield in the UK,and assistant director of the Hangzhou Municipal Economic and Information Technology Commission. He is currently

a professor at the College of Mechanical Engineering at Zhejiang University. He also serves as the dean of ZhejiangUniversity Shandong Industrial Technology Research Institute and an independent director of the Company.Mr. Liu Hanlin, Chinese nationality, born in 1963, holds a master's degree. He has served as a teaching assistant,lecturer, associate professor, and professor of accounting at Hangzhou Dianzi University. He has served as vice deanof the College of Finance and Economics and secretary of the Party Committee of the School of Accounting atHangzhou Dianzi University. He is currently a professor at Hangzhou Dianzi University, and is also a member of theChinese Institute of Certified Public Accountants, a director of the Electronic Branch of the Accounting Society ofChina, a director and academician of the Zhejiang Accounting Society, an executive director of the ZhejiangAssociation of Chief Accountants, deputy director of the Zhejiang Management Accounting Expert Advisory Committee,and an independent director of Zhejiang Great Shengda Packaging Co., Ltd. An independent director of the Company.Mr. Zhang Yuli, Chinese nationality, born in 1965, with a doctoral degree. He has served as Executive Deputy Directorof the MBA Center of Nankai University, Vice Dean of the Graduate School, Vice Dean, and Dean of the School ofBusiness. He is currently a professor and doctoral supervisor at the School of Business of Nankai University and thedean of the School of Innovation and Entrepreneurship of Nankai University. He is also a member of the ManagementDepartment of the Science and Technology Committee of the Ministry of Education, a member of the China High-Quality MBA Education Certification Working Committee, a member of the Tianjin Discipline Review Group andProfessional Degree Education Steering Committee, and a review expert for the National Natural Science Foundationand the National Social Science Foundation, as well as an independent director of Tianjin Port Holdings Co., Ltd. andTianjin Benefo Tejing Electric Co., Ltd. He was the recipient of the Special Allowance from the State Council in 2004and was selected as a distinguished professor of the "Changjiang Scholars" program of the Ministry of Education in2013. An independent director of the Company.Ms. Song Maoyuan, Chinese nationality, was born in 1982 and graduated from university. She currently serves as theCompany's president's secretary and chairman of the Board of Supervisors.Ms. Zheng Jieping, Chinese nationality, was born in 1979 and graduated from university. She currently serves as thepresident of the Company's Human Resources Center and a supervisor.Mr. Jia Qi, Chinese nationality, was born in 1978, holds a bachelor's degree. He has served as General Manager ofthe General Affairs Department and R&D Department of China Mobile Communications Group Terminal Co., Ltd., andGeneral Manager of the Beijing branch. He currently serves as the General Manager of China Mobile Capital HoldingsCo., Ltd. and a supervisor of the Company.Mr. Wu Jian, Chinese nationality, born in 1974, holds a master's degree. He has served as secretary of the Board ofDirectors and vice president of the Company in the past five years, and now serves as secretary of the Board ofDirectors, senior vice president of the Company.Ms. Zu Qiaofen, Chinese nationality, born in 1972, holds a junior college degree. Served as General Manager of theCompany's Financial Center from January 2015 to January 2017; From January 2017 to December 2017, DeputyGeneral Manager of the Company's Financial Center; The General Manager of the Company's Financial Center sinceDecember 2017 and now serves as General Manager of the Company's Financial Center. She currently serves asChief Financial Officer, Senior Vice President, and President of the Financial Center.Mr. Liu Ming, Chinese nationality, born in 1981, holds a master's degree. He joined the Company in 2006. In the pastfive years, he has served as General Manager of the hardware platform development department of the Company’sR&D center, General Manager of the front-end product line of the R&D center, General Manager of the product R&Ddepartment of the R&D center, and Deputy General Manager of the R&D center. He has served as Executive ViceGeneral Manager of the R&D center since March 2020. He now serves as senior vice president of the Company andpresident of the R&D center.

Mr. Li Zhijie, Chinese nationality, born in 1975, holds a master's degree. From March 2005 to August 2017, served astechnical engineer, director of the Delivery & Service Department of the Representative Office, national deliveryrepresentative, and president of the Regional Delivery Department of Huawei Technologies Co., Ltd.; since September2017, has been serving as General Manager of the Delivery & Service Center of the Company. He now serves assenior vice president of the Company, president of the Delivery & Service Center, and president of Zhejiang DahuaIntelligent IoT Operation Service Co., Ltd.Mr. Song Ke, Chinese nationality, born in 1978, holds a master's degree. He has served as the manager of the ITCenter of Hangzhou H3C Co., Ltd., General Manager of Zhejiang Dahua Technology Co., Ltd., and a supervisor of theCompany. He now serves as Senior Vice President of the Company and President of the Process IT Center.Mr. Xu Zhicheng, Chinese nationality, was born in 1966 and holds a junior college degree. He has successively servedas deputy general manager and general manager of marketing, and a supervisor of the Company from September2013 to June 2015, has been serving as general manager of the Internal Audit Department of the Company since June2015, and now serves as senior vice president and general manager of the Quality Management Center.Mr. Zhu Jiantang, Chinese nationality, was born in 1982 and holds a bachelor's degree. From March 2012 to January2015, he has successively served as Product Director of R&D and Deputy General Manager of R&D Center. SinceJanuary 2015, he has been the general manager of the Company's Supply Chain Management Center. He is currentlythe senior vice president of the Company and the president of the Supply Chain Management Center.Mr. Chen Qiang, Chinese nationality, born in 1982, holds a master's degree. He joined the Company in 2008 and hasserved as Vice President and Executive Vice President of the Company's Overseas Marketing Center. He is currentlythe Company's Senior Vice President and President of the Overseas Marketing Center.Position held in shareholders entities

□ Applicable ?Not applicable

Position held in other entities?Applicable □ Not applicable

Name	Name of other entity	Position held in other entities	Renumeration received from other entity or not
Fu Liquan	Ningbo Huayang Venture Capital Investment Partnership (Limited Partnership)	Executive Partner	No
Fu Liquan	Hangzhou Gulin Equity Investment Partnership (limited partnership)	Executive Partner	No
Fu Liquan	Ningbo Huaqi Investment Management Partnership (Limited Partnership)	Executive Partner	No
Fu Liquan	Zhejiang Huashi Investment Management Co., Ltd.	Executive Director	No
Chen Ailing	Zhejiang Huanuokang Technology Co., Ltd.	Chairman	No
Chen Ailing	Zhejiang Huashi Investment Management Co., Ltd.	General Manager	No
Chen Ailing	Zhejiang Hyxi Technology Co., Ltd.	Director	No
Chen Ailing	Hangzhou Huaxi Information Technology Co., Ltd.	Executive Director and General Manager	No
Chen Ailing	Huayan Capital (Hangzhou) Private Equity Fund Management Co., Ltd.	Chairman	No
Chen Ailing	Ningbo Hualing Venture Capital Investment Partnership (Limited Partnership)	Executive Partner	No
Chen Ailing	Hangzhou Jikang Lingyi Enterprise Management Partnership (Limited Partnership)	Executive Partner	No

Chen Ailing	Hangzhou Jikang Linger Enterprise Management Partnership (Limited Partnership)	Executive Partner	No
Chen Ailing	Hangzhou Jikang Lingsan Enterprise Management Partnership (Limited Partnership)	Executive Partner	No
Chen Ailing	Hangzhou Jikang Lingsi Enterprise Management Partnership (Limited Partnership)	Executive Partner	No
Chen Ailing	Hangzhou Ruipin Enterprise Management Partnership (Limited Partnership)	Executive Partner	No
Chen Ailing	Hangzhou Huazhen Equity Investment Partnership (Limited Partnership)	Executive Partner	No
Chen Ailing	Ningbo Huagu Enterprise Management Partnership (Limited Partnership)	Executive Partner	No
Chen Ailing	Zhejiang Huaxiao Linger Enterprise Management Partnership (Limited Partnership)	Executive Partner	No
Chen Ailing	Zhejiang Huaxiao Lingyi Enterprise Management Partnership (Limited Partnership)	Executive Partner	No
Chen Ailing	Hangzhou Huatan Enterprise Management Partnership (Limited Partnership)	Executive Partner	No
Chen Ailing	Ningbo Huaqi Enterprise Management Partnership (Limited Partnership)	Executive Partner	No
Wu Jun	Ningbo Huakun Venture Capital Investment Partnership (Limited Partnership)	Executive Partner	No
Wu Jun	Zhoushan Xinhao Technology Development Co., Ltd.	Executive Director and General Manager	No
Yuan Lihua	Central Enterprises Rural Industry Investment Fund Co., Ltd.	Vice Chairman	No
Yuan Lihua	China Mobile Investment Holdings Co., Ltd.	Director	No
Yuan Lihua	China Mobile Capital Holdings Co., Ltd.	Director, Deputy General Manager, General Legal Counsel	Yes
Cao Yanlong	Hangzhou Hanmo Industrial Group Co., Ltd.	Supervisor	No
Cao Yanlong	Zhejiang Xiwei New Energy Technology Co., Ltd.	Executive Director and General Manager	No
Cao Yanlong	Hangzhou Hemu Intelligent Technology Partnership (Limited Partnership)	Executive Partner	No
Cao Yanlong	Qingdao Yihua Mingsheng Technology Co., Ltd.	Executive Director	No
Zhang Yuli	Tianjin TEDA Construction Group Co., Ltd.	Director	No
Zhang Yuli	Tianjin Port Holdings Co., Ltd.	Independent Director	Yes
Zhang Yuli	Tianjin Benefo Tejing Electric Co., Ltd.	Independent Director	Yes
Liu Hanlin	Zhejiang Great Shengda Packaging Co., Ltd.	Independent Director	Yes
Liu Hanlin	Hangzhou Crysound Electronic Stock Corporation.	Independent Director	Yes
Liu Hanlin	Zhejiang Lianxin Accounting Co., Ltd.	Director	No
Jia Qi	China Mobile Capital Holdings Co., Ltd.	Department General Manager	Yes
Jia Qi	Venustech Group Inc.	Director	No
Jia Qi	Beijing Haitian Ruisheng Science Technology Ltd.	Director	No
Zheng Jieping	Hangzhou Huarong Investment Management Co., Ltd.	General Manager	No
Song Maoyuan	Hangzhou Huaxi Information Technology Co.,	Supervisor	No

Ltd.

Incumbent or outgoing directors, supervisors and senior management in the reporting period that have been imposedadministrative penalties by CSRC in the last three years

□ Applicable ?Not applicable

3. Remuneration of Directors, Supervisors, and Senior ManagementThe following describes the decision-making program, determination basis and actual payment of remuneration fordirectors, supervisors and senior management.Top management of the Company shall be evaluated by the performance commitments of senior management and thedepartment managers and those above shall be evaluated by their work report at the end of the year. The managershave made business goal responsibility system in their term of office, and set up the evaluation approach combiningKPI index commitments at the level of the Company and individual performance commitments. They have achievedqualified evaluation indices, meaning that they can complete their respective tasks in the latest term of office. TheCompany will increase their remuneration or adopt other incentive measures, as appropriate, based on theircompletion of goals.Remuneration of directors, supervisors and senior management in the reporting period of the Company

Unit: ten thousand RMB

Name	Gender	Age	Post	Position status	Total remuneration from the Company before tax	Whether to receive remuneration from related parties or not
Fu Liquan	Male	58	Chairman, President	Incumbent	298.41	No
Wu Jun	Male	53	Vice Chairman	Incumbent	9.41	No
Chen Ailing	Female	58	Director	Incumbent	0	No
Zhao Yuning	Male	48	Director, Executive President	Incumbent	282.17	No
Yuan Lihua	Male	57	Director	Incumbent	0	Yes
Zhang Xiaoming	Male	53	Director	Incumbent	191.93	No
Liu Hanlin	Male	62	Independent Director	Incumbent	28	No
Zhang Yuli	Male	60	Independent Director	Incumbent	28	No
Cao Yanlong	Male	50	Independent Director	Incumbent	28	No
Song Maoyuan	Female	43	Employee Supervisor	Incumbent	72.05	No
Zheng Jieping	Female	46	Employee Supervisor	Incumbent	180.68	No
Jia Qi	Male	47	Supervisor	Incumbent	0	Yes
Liu Ming	Male	44	Senior Vice President	Incumbent	233.45	No
Li Zhijie	Male	50	Senior Vice President	Incumbent	221.13	No
Song Ke	Male	47	Senior Vice President	Incumbent	215.64	No
Wu Jian	Male	51	Secretary of the Board of Directors, Senior Vice President	Incumbent	219.2	No
Xu Qiaofen	Female	53	Senior Vice President, Chief Financial Officer	Incumbent	207.4	No
Xu Zhicheng	Male	59	Senior Vice President	Incumbent	230.62	No
Zhu Jiantang	Male	43	Senior Vice President	Incumbent	239.16	No

Chen Qiang	Male	43	Senior Vice President	Incumbent	284.77	No
Gao Chunshan	Male	47	Senior Vice President	Resigned	230.49	No
Total	--	--	--	--	3,200.49	--

Other notes

□ Applicable ?Not applicable

VI. Performance of Directors' Duties during the Reporting Period

1. The Board of Directors for this reporting period

Conference Session	Date of Conference	Date of Disclosure	Conference Resolution
The Fourth Meeting of the Eighth Board of Directors	January 12, 2024	January 13, 2024	Resolution of the Fourth Meeting of the Eighth Board of Directors
The Fifth Meeting of the Eighth Board of Directors	April 15, 2024	April 16, 2024	Resolution of the Fifth Meeting of the Eighth Board of Directors
The Sixth Meeting of the Eighth Board of Directors	June 19, 2024	June 20, 2024	Resolution of the Sixth Meeting of the Eighth Board of Directors
The Seventh Meeting of the Eighth Board of Directors	August 23, 2024	August 24, 2024	Resolution of the Seventh Meeting of the Eighth Board of Directors
The Eighth Meeting of the Eighth Board of Directors	October 25, 2024	October 26, 2024	Resolution of the Eighth Meeting of the Eighth Board of Directors
The Ninth Meeting of the Eighth Board of Directors	November 15, 2024	November 16, 2024	Resolution of the Ninth Meeting of the Eighth Board of Directors

2. Attendance of directors at the meeting of the Board of Directors and the general meeting ofshareholders

Attendance of directors at the meeting of the Board of Directors and the general meeting of shareholders
Name of director	Number of board meetings to attend during the reporting period	Number of on-site attendance of board meetings	Number of attendance of board meetings by means of telecommunications	Number of attendance of board meetings by entrustees	Number of absence at board meetings	Whether absent from board meetings in person for two consecutive times	Number of attendance of shareholders' general meetings
Fu Liquan	6	6	0	0	0	No	3
Wu Jun	6	6	0	0	0	No	3
Chen Ailing	6	6	0	0	0	No	3
Zhao Yuning	6	6	0	0	0	No	3
Yuan Lihua	6	0	6	0	0	No	1
Zhang Xiaoming	6	6	0	0	0	No	0
Liu Hanlin	6	5	1	0	0	No	3
Zhang Yuli	6	4	2	0	0	No	3
Cao Yanlong	6	6	0	0	0	No	2

Explanation for failure to attend the Board of Directors in person for two consecutive timesNone

3. Objections of directors to related issues of the Company

Whether the directors challenged the Company's related issues

□ Yes ?No

During the reporting period, directors did not raise objections to the Company's related issues.

4. Other information on directors' performance of duties

Whether the directors' suggestions on the company were accepted?Yes □NoNote on the acceptance or rejection of the directors‘ suggestions on company issuesDuring the reporting period, the Company's directors strictly followed the relevant laws and regulations such as theShenzhen Stock Exchange Listing Rules and the Company's Articles of Association, conscientiously attended theCompany's Board of Directors and general meeting of shareholders, conscientiously performed their duties, and putforward constructive opinions or suggestions on the Company's development decisions. At the same time, we activelypaid attention to the Company's business management information, financial status, major matters, etc., to promotethe continuous, stable, and healthy development of the Company's production and operation.The independent directors were diligent and responsible, actively understood the Company's operating conditions, theconstruction of the internal control system, and the implementation of the resolutions of the Board of Directors and thegeneral meeting of shareholders. They focused on prudent supervision of the Company's related transactions, profitdistribution plans, and other matters, and expressed professional opinions. They actively and effectively performedtheir duties as directors, safeguarded the overall interests of the Company and the legitimate rights and interests of allshareholders, especially small and medium-sized shareholders, and played a positive role in the Company'sstandardized, stable, and healthy development.

VII. Performance of Duties of the Special Committee under the Board of Directorsduring the Reporting Period

Committee Name	Membership	Number of meetings held	Date of Conference	Content of meetings	Important opinions and suggestions	Other fulfillment of duties	Specific circumstances of the objection (if any)
Audit Committee	Liu Hanlin, Chen Ailing, Cao Yanlong, Zhang Yuli, Yuan Lihua	5	March 25, 2024	Communicate with the audit institution on the preliminary draft of the audit.
			April 12, 2024	Review of the 2023 annual report, internal control report, and other matters.
			August 22, 2024	Review of the 2024 semi-annual report and other matters.
			October 24, 2024	Review the 2024 third quarter report, etc.

			December 30, 2024	Communicate and review the 2024 annual audit plan.
Strategy Committee	Fu Liquan, Zhang Yuli, Wu Jun, Zhao Yuning	1	April 12, 2024	Review of the 2024 development strategy
Nomination Committee	Cao Yanlong, Liu Hanlin, Fu Liquan	1	April 12, 2024	Review and verify the information of candidates for senior management.
Remuneration and Appraisal Committee	Zhang Yuli, Fu Liquan, Liu Hanlin	3	April 12, 2024	Review and determine matters such as remuneration for directors, supervisors, and senior management, equity incentive buyback and cancellation, etc.
			June 18, 2024	Review matters such as the unlocking/exercise conditions of the equity incentive plan.
			August 22, 2024	Review the option price adjustment for equity incentives.

VIII. Work of the Board of Supervisors

Has the Board of Supervisors discovered any risk in the Company during the supervision in the reporting period

□ Yes ?No

The Board of Supervisors had no objection to the supervisory matters in the report period.

IX. Employee Situation in the Company

1. Number, profession composition and educational background of the employees

Number of incumbent employees in the parent company at the end of the reporting period (person)	10,595
Number of incumbent employees in major subsidiaries at the end of the reporting period (person)	13,296
Total number of incumbent employees at the end of the reporting period (person)	23,891
Number of employees receiving salaries in current period (person)	23,891
Number of retired employees requiring the parent company and major subsidiaries to bear their costs	6
Profession composition
Type of profession composition	Number of employees for profession composition

	(person)
R&D staff	12,689
Sales	4,805
Supply chain	4,152
Management	451
Professional support staff	1,794
Total	23,891
Educational background
Type of educational background	Number of employees (person)
Master and above	4,396
Bachelor	13,663
College, technical secondary school	3,227
Others	2,605
Total	23,891

2. Remuneration policies

The Company has established complete remuneration management systems and incentive mechanisms to provide theemployees with competitive remunerations in strict accordance with Labor Law, Labor Contract Law and other relevantlaws and regulations, departmental rules and normative documents. The Company links its remuneration system andperformance appraisal system with the business performance of the Company, which fully arouses the enthusiasm ofthe employees and effectively improves the executive force and responsibility consciousness of employees, thusbetter attracting and retaining talents and providing guarantee for sustainable, stable development of the Company inrespect of human resources.

3. Training plan

The Company has been dedicated to the building of employee education and training system, established the internallecturer management measures including new employee training and in-service employee training, implementedtraining credits management system, improved the comprehensive quality of the Company's employees, created goodlearning atmosphere, established learning organization and comprehensively helped employees to improve their abilityto meet challenges and reforms in the future, thus providing powerful talent guarantee and intellectual support forsustainable, fast growth of the Company and achieving joint development of employees and the Company.

4. Labor outsourcing

□ Applicable ?Not applicable

X. Distribution of Company Profits and Capital Reserve Conversion to ShareCapital SituationProfit distribution policy during the reporting period, especially the formulation, implementation, or adjustment of thecash dividend policy.?Applicable □ Not applicable

1. The Company held the 2023 Annual General Meeting of Shareholders on May 13, 2024, and reviewed and approved the 2023 profit distribution plan. Based on the 3,274,649,389 shares after the Company eliminated the repurchasedshares of 19,819,601 shares, a cash dividend of RMB 3.82 (tax included) per 10 shares would be distributed to all shar

eholders, with a total cash dividend of RMB 1,250,916,066.60 (tax included). No bonus shares would be issued, and no capital reserve would be converted into share capital. The remaining undistributed profit would be carried forward to the next year. The profit distribution plan was implemented on May 22, 2024.

2. After deliberation and approval by the Fifth Meeting of the Board of Directors and the 2023 Annual General Meetingof Shareholders, the Company has formulated the "Shareholder Return Plan for the Next Three Years (2024-2026)",which plans to distribute profits in cash each year from 2024 to 2026, not less than 30% of the net profit of that year, orthe cumulative profit distributed in cash for three years shall not be less than 30% of the cumulative net profit realizedin those three years, on the basis of complying with the requirements of the Company's Articles of Association on thecash dividend ratio, and provided that the Company's profitability and cash flow can meet the Company's goingconcern and long-term development. (The aforementioned net profit refers to the net profit value attributable toshareholders of the listed company in the consolidated financial statements after deducting non-recurring gains orlosses.)

3. On September 9, 2024, the Company convened the second extraordinary general meeting of shareholders in 2024to review and approve the 2024 semi-annual profit distribution plan: based on the share capital of 3,272,527,089shares after deducting the repurchased shares of 19,819,601 shares, a cash dividend of RMB 1.84 (tax inclusive)would be distributed to all shareholders for every 10 shares, totaling a cash distribution of RMB 602,144,984.38 (taxinclusive). No capital reserve would be converted into share capital, no bonus shares would be distributed, and theremaining undistributed profit would be reserved for future distribution. The profit distribution plan was implemented onSeptember 20, 2024.

Special notes on cash dividend policies
Whether they comply with the requirements of the Company's articles of incorporation or the resolutions of the General Meeting of Shareholders:	Yes
Whether the dividend standards and proportions are distinct and clear:	Yes
Whether the relevant decision-making procedures and mechanisms are complete:	Yes
Whether the independent directors performed their duties and played their due role:	Yes
If the Company does not distribute cash dividends, it should disclose the specific reasons and the measures it intends to take to enhance the level of investor returns:	N/A
Whether the minority shareholders have the opportunity to fully express their opinions and appeals, and whether their legitimate rights and interests have been fully protected:	Yes
Whether relevant conditions and procedures are compliant and transparent when the cash dividend policies are being adjusted or changed:	The Company has formulated the "Shareholder Return Plan for the Next Three Years (2024-2026)", and the cash dividend plan involved complies with relevant regulations and the requirements of the "Articles of Association", and has fulfilled the relevant review procedures.

The company was profitable during the reporting period, and the parent company had positive profits available fordistribution to shareholders, but no cash dividend distribution plan was proposed.

□ Applicable ?Not applicable

Profit Distribution and Capital Reserve Converted to Share Capital in the Reporting Period

?Applicable □ Not applicable

Number of bonus shares per 10 shares (shares)	0
Number of dividend payout per 10 shares (RMB) (tax included)	4.58
Equity base of the distribution plan (shares)	3,279,257,910
Cash dividend amount (RMB) (tax included)	1,501,900,122.78
Amount of cash dividends distributed in other ways (such as share repurchase) (RMB, Note)	602,144,984.38
Total cash dividends (including other ways) (RMB)	2,104,045,107.16
Distributable profit (RMB)	24,156,989,231.15
Proportion of total cash dividends (including other ways) to total profit distribution	100%
Latest cash dividend
It is difficult to distinguish at the development stage of the Company. However, if there are major capital expenditure arrangements, the proportion of cash dividends in the profit distribution should be at least 20%.
Detailed description of profit distribution and capital reserve conversion plan
Based on 3,279,257,910 shares after deducting the repurchased shares (19,819,601 shares), the Company will distribute a cash dividend of RMB 4.58 (tax inclusive) for every 10 shares to all shareholders, and the total amount of this cash dividend will be RMB 1,501,900,122.78 (tax inclusive). It will not convert capital reserve into share capital or distribute bonus shares, and the remaining undistributed profit will be retained for future distribution. If the Company's share capital that enjoys the right to distribute profits changes before the implementation of the distribution plan due to the conversion of convertible bonds, share buybacks, exercise of equity incentives, listing of new shares from refinancing, etc., the Company will distribute the profits in accordance with the principle of unchanged distribution ratio and based on the total share capital on the dividend registration date (shares in the repurchase account do not participate in the distribution), and readjust the total distribution amount in accordance with the law.

Note: The amount of cash dividends distributed in other ways is the 2024 semi-annual cash dividend amount.XI. Implementation of the Company's Equity Incentive Plan, Employee StockOwnership Plan or Other Employee Incentive Measures?Applicable □ Not applicable

1. Equity incentive

1. On April 15, 2024, the Company held the 5th meeting of the 8th Board of Directors and the 4th meeting of the 8thBoard of Supervisors, at which the “Proposal on Cancellation of Some Stock Options of 2022 Stock Options andRestricted Stock Incentive Plan” and the “Proposal on Repurchase of Some Restricted Stock Options of 2022 StockOptions and Restricted Stock Incentive Plan” were deliberated and approved. Given the fact that 204 incentiverecipients have resigned and are no longer eligible for incentives, the Company intends to repurchase/cancel2,134,680 restricted shares that have been granted to the aforementioned resigned recipients but have not beenreleased from the restricted sale, and 2,211,600 stock options that have not been exercised, according to the relevantprovisions of the stock option and restricted share incentive plan in 2022. On May 13, 2024, the Company held the2023 Annual General Meeting of Shareholders, at which the “Proposal on Cancellation of Some Restricted Shares of2022 Stock Options and Restricted Stock Incentive Plan” were deliberated and approved. During the reporting period,the Company has completed the repurchase and cancellation of the aforementioned restricted shares/options.

2. On June 19, 2024, the Company held the 6th meeting of the 8th Board of Directors and the 5th meeting of the 8thBoard of Supervisors, at which the “Proposal on Meeting the Conditions for Unlocking the Second Restricted Period of2022 Stock Options and Restricted Stock Incentive Plan” and the “Proposal on Meeting the Conditions for Exercisingthe Second Exercise Period of 2022 Stock Options and Restricted Stock Incentive Plan” were deliberated andapproved. The conditions for the second exercise period of the 2022 Stock Option and Restricted Stock Incentive Planof the Company have been fulfilled, with a total of 3,798 incentive recipients eligible for the exercising, and the numberof exercisable stock options totaling 20,184,927, accounting for 0.61% of the total number of shares of the Company,and the exercise price of the options is RMB 15.657/share; at the same time, the conditions for unlocking the secondrestriction period have been fulfilled. At the same time, the conditions for the release of restricted shares for thesecond restricted period have been fulfilled, and 3,798 incentive recipients can be released from restricted sale in thisperiod, and 20,262,480 restricted shares can be unlocked from restricted sale, accounting for 0.62% of the total sharecapital of the Company at present. In addition, the meeting considered and adopted the “Proposal on Adjustment ofthe Exercise Price of the 2022 Stock Option and Restricted Stock Incentive Plan”, adjusting the exercise price of theCompany's stock options under this incentive plan from RMB16.59 per share to RMB15.657 per share due to theequity distributions in 2022, the first three quarters of 2023 and 2023.

3. On August 23, 2024, the Company convened the Seventh Meeting of the Eighth Board of Directors and the Sixthmeeting of the Eighth Board of Supervisors, where it reviewed and approved the Proposal on Adjustment of theExercise Price of the 2022 Stock Option and Restricted Share Incentive Plan. Due to the Company's implementation ofthe semi-annual profit distribution plan and in accordance with the provisions of the Stock Option and Restricted ShareIncentive Plan (Draft Revised) for 2022, as well as the authorization from the annual general meeting of shareholdersin 2021, the exercise price of the stock options has been adjusted from 15.657 yuan per share to 15.473 yuan pershare.

4. The exercise conditions for the second exercise period of the company's 2022 stock option and restricted shareincentive plan have been met. The exercise period is from July 11, 2024 to July 10, 2025. The exercise method isvoluntary exercise. For details, please refer to the "Indicative Announcement on the Voluntary Exercise of the SecondExercise Period of the 2022 Stock Option and Restricted Share Incentive Plan" disclosed by the company on JuchaoInformation Network on July 10, 2024. As of December 31, 2024, 3,295,423 stock options had been exercised in thesecond exercise period, of which 3,283,043 stock options had been exercised in the fourth quarter of 2024.Equity incentives received by the Company's directors and senior management?Applicable □ Not applicable

Unit: share

Name

Post

Number of stock options held at the beginning of the year

Number of new stock options granted during the reporting period

Number of vesting shares during the reporting period

Number of vested shares during the reporting period

The exercise price of the vested shares during the reporting period

Number of stock options held at the end of the period

Market price at the end of the reporting period (yuan/share)

Number of restricted stocks held at the beginning of the period

Number of unlocked shares in this period

Number of restricted stocks newly granted during the reporting period

The granting price of restricted stocks (yuan/share)

Number of restricted stocks held at the end of the period

						(yuan/share)
Zhao Yuning	Director, Executive President	326,400	0	163,200	0	0	326,400	16	489,600	244,800	0	8.16	244,800
Liu Ming	Senior Vice President	254,400	0	127,200	0	0	254,400	16	381,600	190,800	0	8.16	190,800
Li Zhijie	Senior Vice President	254,400	0	127,200	0	0	254,400	16	381,600	190,800	0	8.16	190,800
Song Ke	Senior Vice President	218,400	0	109,200	0	0	218,400	16	327,600	163,800	0	8.16	163,800
Wu Jian	Secretary of the Board of Directors, Senior Vice President	254,400	0	127,200	0	0	254,400	16	381,600	190,800	0	8.16	190,800
Xu Qiaofen	CFO, Senior Vice President	218,400	0	109,200	0	0	218,400	16	327,600	163,800	0	8.16	163,800
Zhu Jiantang	Senior Vice President	254,400	0	127,200	0	0	254,400	16	381,600	190,800	0	8.16	190,800
Xu Zhicheng	Senior Vice President	254,400	0	127,200	0	0	254,400	16	381,600	190,800	0	8.16	190,800
Chen Qiang	Senior Vice President	54,960	0	27,480	0	0	54,960	16	53,040	26,520	0	8.16	26,520
Total	--	2,090,160	0	1,045,080	0	--	2,090,160	--	3,105,840	1,552,920	0	--	1,552,920

Evaluation Mechanism and Incentives for Senior Management

Top management of the Company shall be evaluated by the performance commitments of senior managementand the department managers and those above shall be evaluated by their work report at the end of the year. Themanagers have made business goal responsibility system in their term of office, and set up the evaluation approach

combining KPI index commitments at the level of the Company and individual performance commitments. They haveachieved qualified evaluation indices, meaning that they can complete their respective tasks in the latest term of office.The Company will increase their remuneration or adopt other incentive measures, as appropriate, based on theircompletion of goals.

2. Implementation of employee stock ownership plan

□ Applicable ?Not applicable

3. Other employee incentive measures

?Applicable □ Not applicableThe Company adheres to the concept of "striving for the goal". By long-term incentives for employees based on theequity of listed companies, the Company has launched an incentive plan for employees to co-investment in specificsubsidiaries with innovated business, aiming to combine the interests of the Company and employees to realize thesustainable and healthy development of the Company, and to stimulate the employees’ enthusiasm for innovation.XII. Construction and Implementation of Internal Control System during theReporting Period

1. Internal control construction and implementation

Under the Basic Norms for Enterprise Internal Control and its supporting guidelines and other internal controlregulatory requirements, and in combination with the actual situation of the Company, the Company has established asound internal control system and has effectively implemented it, which includes the rules of procedure for the Boardof Directors, the rules of procedure for the Board of Supervisors, supervision and management of subsidiaries, sealmanagement, investment and financing management, human resources management, information systemmanagement, capital activities, procurement management, asset management, sales and collection management,cost and expense management, information system security management, and information disclosure affairsmanagement, etc., covering all business links related to financial reporting and information disclosure affairs in theCompany's business activities.The Company has established an Audit Committee under the Board of Directors to inspect and supervise theestablishment and implementation of the Company’s internal control, and review the Company’s financial informationand its disclosure. The Company has established a risk management system framework that is "risk-oriented, system-based, process-linked, control-tooled, and IT-supported" to provide good support for the realization of corporatestrategies. By identifying risks and assessing risk levels from the perspective of severity, possibility, and effectivenessof existing measures, the Company improves the hierarchical decision-making authorization system based on theacceptable level of risk, establishes or optimizes systems and processes, promotes control activities such as processIT construction, and improves process systems to comprehensively respond to internal and external risks that may beforeseen in production and operation activities. The Company emphasizes the cultivation of risk awareness andregularly organizes risk management training for all departments, so as to strengthen the Company's risk alert andhandling capabilities and develop risk control awareness among all staff.

According to the identification of major deficiencies in the Company's internal control over financial reporting, as ofthe base date of the internal control evaluation report, there were no major deficiencies in the internal control overfinancial reporting, and the Company has maintained effective internal control over financial reporting in all materialaspects under the requirements of the enterprise internal control standard system and relevant regulations; accordingto the identification of major deficiencies in the Company's internal control over non-financial reporting, as of the basedate of the internal control evaluation report, no major deficiencies in the internal control over non-financial reportingwere found.

2. Details of material deficiencies in internal control found during the reporting period

□ Yes ?No

XIII. The Company's Management and Control of Subsidiaries during the ReportingPeriodN/AXIV. Internal Control Evaluation Report or Internal Control Audit Report

1. Internal control evaluation report

Date of full-text disclosure for internal control assessment report		March 29, 2025
Full-text disclosure index for internal control assessment report		http://www.cninfo.com.cn
Percentage of total asset from units included in the assessment out of the total asset from the company's consolidated financial statements		100.00%
The proportion of operating income of parties included in the assessment to the operating income from the Company's consolidated financial statements		100.00%
Defect identification criteria
Category	Financial Report		Non-financial reports
Qualitative standards	Signs of material weakness in financial reporting include: (1) Corrupt practices of directors, supervisors and senior managers of the Company; (2) Material misstatements in the current Financial Report discovered by the Certified Public Accountants but not recognized by the internal control of the Company; (3) Invalid internal control and supervision of the External Financial Report and the Financial Report of the Company by the Audit Committee and the Audit Department. Signs of significant deficiencies in financial reporting include:		The identification of non-financial report defects is mainly determined by the extent of their influence on validity of business process and the probability of occurrence. If the possibility of deficiencies occurring is low, it will reduce work efficiency or effectiveness, increase the uncertainty of the effectiveness, or cause it to deviate from the expected goal, which is referred to as a general deficiency. If the possibility of a deficiency occurring is high, it will significantly reduce work efficiency or effect, or significantly increase the uncertainty of the effect, or cause it to significantly deviate from the expected goal, which is an important

	(1) Failure to select and apply the accounting policies in accordance with the accepted accounting standards; (2) Failure to establish anti-fraud procedure and control measures; (3) No appropriate control mechanism established or appropriate compensating control implemented for accounting treatment of irregular or special transactions; (4) There are one or more defects in the control of final financial reporting process, and no reasonable guarantee that the financial statements can achieve the goal of being true and complete. General deficiencies refer to the control deficiencies other than the material deficiencies and important deficiencies described above.		deficiency; if the possibility of a deficiency occurring is high, it will seriously reduce work efficiency or effect, or seriously increase the uncertainty of the effect, or cause it to seriously deviate from the expected goal, which is a major deficiency. Signs of major deficiencies in internal control over non-financial reporting include: (1) The Company's decision-making process is unscientific, with decisions being wrong, which leads to the failure to achieve the expected goals after the merger and acquisition. (2) Violation of national laws and regulations, resulting in investigation by relevant departments and regulatory authority. (3) Management personnel or key technical personnel are losing out. (4) Negative news frequently appears in the media. (5) The results of the internal control evaluation, especially major deficiencies or important deficiencies, have not been rectified. (6) Important businesses lack institutional control or the institutional system fails systematically.
Quantitative standards	Losses which have been or may be incurred due to internal control deficiencies and are related to the profit statement should be measured by the operating income indicators. If the misreporting amount in the financial statement, which may be incurred by the deficiencies alone or together with other deficiencies, is less than 0.5% of the operating income, it is considered as a general deficiency; If it exceeds 0.5% of the operating income but is less than 1%, then it is an important deficiency; If it exceeds 1% of the operating income, then it is considered as a major deficiency. Losses which have been or may be incurred due to internal control deficiencies and are related to the asset management should be measured by the total asset indicators. If the misstated amount in the financial statement, which may be incurred by the deficiency alone or together with other deficiencies, is less than 0.5% of the total asset, it is considered as a general deficiency; If it exceeds 0.5% of the total asset but less than 1%, it is an important deficiency; If it exceeds 1% of the total asset,it is considered as a major deficiency.		The quantitative criteria is based on operating income and total assets. Losses which have been or may be incurred due to internal control deficiencies and are related to the profit statement should be measured by the operating income indicators If the misreporting amount in the financial statement, which may be incurred by the deficiencies alone or together with other deficiencies, is less than 0.5% of the operating income, it is considered as a general deficiency; If it exceeds 0.5% of the operating income but is less than 1%, then it is an important deficiency; If it exceeds 1% of the operating income, then it is considered as a major deficiency. Losses which have been or may be incurred due to internal control deficiencies and are related to the asset management should be measured by the total asset indicators. If the misstated amount in the financial statement, which may be incurred by the deficiency alone or together with other deficiencies, is less than 0.5% of the total asset, it is considered as a general deficiency; If it exceeds 0.5% of the total asset but is less than 1%, then it is considered as an important deficiency; If it exceeds 1% of the total asset, it is considered as a major deficiency.
Number of material weakness in financial reports		0
Number of material weakness in non-financial reports		0
Number of significant deficiency in financial reports		0

Number of significant deficiency in non-financial report

0

2. Internal control audit report

?Applicable □ Not applicable

Deliberations Paragraph in the Internal Control Audit Report
We believe that Dahua Technology maintained effective internal control over financial reporting in all material aspects under the Basic Standards for Enterprise Internal Control and relevant regulations as of December 31, 2024.
Disclosure in the Internal Control Audit Report	Disclosure
Date of full-text disclosure for the internal control audit report	March 29, 2025
Full-text disclosure index for the internal control audit report	http://www.cninfo.com.cn
Opinion type in the internal control audit report	Standard unqualified opinion
Whether there are material deficiencies in the non-financial reports	No

Whether the accounting firm has issued an internal control audit report with modified opinions

□ Yes ?No

Whether the opinions in the internal control audit report issued by the accounting firm are consistent with those in theself-evaluation report issued by the Board of Directors?Yes □No

XV. Rectification of Self-Examination Issues in the Special Action on CorporateGovernance of Listed CompaniesNone

Section V Environmental and Social ResponsibilitiesI. Major Environmental Protection IssuesWhether the listed company and its subsidiaries belong to the key pollutant discharging units announced by theenvironmental protection department

□ Yes ?No

Measures taken to reduce carbon emissions during the reporting period and their effects?Applicable □ Not applicableDahua Technology regards sustainable development as one of its core strategies, is committed to promoting thegreen transformation of the industrial chain, pays attention to the carbon footprint of its own operations, and during thereporting period implemented several energy-saving and consumption-reduction measures, all of which have achievedremarkable results.

In terms of green R&D, Dahua Technology has developed a green product management platform (GPM) toachieve intelligent environmental management of the entire product lifecycle, and has created a product carbonfootprint accounting system to accurately assess carbon emissions and promote low-carbon product R&D and greenprocurement. The Company strictly abides by environmental protection standards such as RoHS and REACH toensure the safety and compliance of raw materials. It also reduces the use of disposable plastics and improveslogistics efficiency through miniaturized packaging design, application of environmentally friendly packaging materials,and logistics packaging optimization. It also uses innovative technologies to reduce material waste and lower carbonemissions.In terms of product applications, Dahua Technology is actively implementing carbon reduction goals through theresearch and development of clean technologies and smart products. The Company has developed solar-poweredsystems and low power consumption cameras, promoting the use of clean energy to reduce energy consumption andextend the service life of devices. Charging piles support the use of clean energy and load balancing technology toimprove energy efficiency. Smart power products integrate energy consumption monitoring and management functions,helping customers achieve refined energy management and reduce carbon emissions. The low-carbon attributes ofthese products have been recognized by external authoritative organizations, and they have obtained multiple greencertifications, including Environmental Protection Product Certification, Environmental Labeling Product Certification,and Type II Environmental Labeling Certification, assisting customers and consumers in jointly moving towards a low-carbon future.In terms of energy resource utilization, Dahua Technology has significantly improved resource utilizationefficiency through systematic carbon reduction measures. The Company optimizes its energy structure through energyconsumption monitoring platforms and clean energy projects, such as outsourcing rooftop photovoltaic and carportphotovoltaic projects. At the same time, we promote electronic signing platforms, integrated logistics labels, and greenwarehousing models to further reduced energy and resource usage. In addition, we deploy energy-saving technologies,carry out environmental protection training, and promote paperless office to comprehensively enhance employees'awareness of green office and build a smart, efficient, and low-carbon office environment.

By conducting climate risk identification, Dahua Technology more accurately grasps the challenges andopportunities brought about by policy, technology, and market changes, aims at the direction of low-carbontransformation, and provides a clear path for achieving carbon reduction goals. In addition, Dahua Technology hassystematically sorted out the organizational boundaries of carbon emissions, identified the main sources of emissions,and obtained a carbon inventory certificate, providing a scientific basis for the Company’s emission reduction strategyformulation and carbon neutrality goal achievement.

Through green R&D, clean technology innovation, and systematic energy conservation and consumptionreduction, Dahua Technology significantly improved resource utilization efficiency, reduced its own operational carbonemissions in 2024, helping the industry's green transformation and contributing to global sustainable developmentgoals.II. Social ResponsibilitiesReport published on the same day on the Juchao Information Network (For details, see theCompany's 2024 Environmental, Social and Governancewww.cninfo.com.cn).III. Consolidation and Expansion of Achievements in Poverty Alleviation and RuralRevitalizationThe Company has not carried out targeted poverty alleviation and rural revitalization work during the reporting period.

Section VI Significant EventsI. Performance of Commitments

1. Commitments made by the Company's controlling sharehoders, shareholders, relatedparties, purchasers and purchasing companies and have been fulfilled during the reportingperiod and those that have not been fulfilled by the end of the reporting period

?Applicable □ Not applicable

Commitments	Party making commitments	Commitment Type	Content	Time	Term	Performance
Commitments made during initial public offerings or refinancing	Fu Liquan, Chen Ailing, Wu Jun	Commitment on restricted shares	The number of shares transferred each year during his/her term of service shall not exceed 25 percent of the total number of shares he/she holds in the Company; he/she shall not transfer his/her shares in the Company within half a year after he/she leaves the Company; within the next twelve months, the number of shares sold through the stock exchange listing transactions shall not exceed 50% of the total shares he/she holds.	15 July 2007	Long-term	In normal performance
Commitments made during initial public offerings or refinancing	All directors and senior management	Other commitments	Commitment to the effective implementation of measures for compensating the returns of non-public offering of shares	March 26, 2021	Long-term	In normal performance
Commitments made during initial public offerings or refinancing	Fu Liquan, Chen Ailing	Other commitments	Commitment to the effective implementation of measures for compensating the returns of non-public offering of shares	March 26, 2021	Long-term	In normal performance
Commitments made during initial public offerings or refinancing	China Mobile Communications Group Co., Ltd.	Commitment on restricted shares	Within 36 months from the date of completion of Dahua Technology's issuance of shares to specific objects (i.e. the first day of listing of the newly added shares), the Dahua Technology shares subscribed by the Company in this offering shall not be transferred in any way, nor shall Dahua Technology conduct a share buyback for such shares; after the completion of this issuance, the Dahua Technology shares obtained by the Company through this issuance due to	April 14, 2023	36 months	In normal performance

			Dahua Technology's bonus shares, share capital increase, etc. shall also comply with the above agreement.
Other commitments to minority shareholders of the Company	Fu Liquan, Chen Ailing	Commitment on horizontal competition	(1) He/she will not directly engage in operational activities that constitute horizontal competition with the stock company's business; (2) for companies he/she held or indirectly held, he/she will fulfill the obligations under this commitment through agencies and personnel (including but not limited to directors and managers); (3) if the stock company further expands its range of products and business scope, he/she and the company held by him/her will not compete with the expanded range of products or businesses of the stock company.	30 June 2007	Long-term	In normal performance
Whether the commitment is fulfilled on time			Yes
Where the commitment is overdue, the specific reasons for not completing the performance and the following work plan shall be explained in detail			N/A

2. If there is a profit forecast for the Company's assets or projects, and the reporting period isstill within the profit forecast period, the Company shall make an explanation on the fulfillmentand its reasons

□ Applicable ?Not applicable

II. Non-operational capital occupation over listed companies by controllingshareholders and their related parties

□ Applicable ?Not applicable

During the reporting period, there is no non-operational capital occupation over listed companies by controllingshareholders and their related parties.III. Illegal external guarantees

□ Applicable ?Not applicable

No illegal external guarantees during the reporting period.IV. Statement by the Board of Directors on the recent "Non-Standard Audit Report"related situation

□ Applicable ?Not applicable

V. Explanations Made by the Board of Directors, the Board of Supervisors andIndependent Directors (If Any) on the "Non-standard Audit Report" from theAccounting Firm during the Reporting Period

□ Applicable ?Not applicable

VI. Changes in Accounting Policies, Accounting Estimates, or Corrections of MajorAccounting Errors Compared with the Previous Year's Financial Report?Applicable □ Not applicableFor details on changes in the Company's accounting policies and accounting methods during the reporting period,please see "Section 10 Financial Report/V. Significant Accounting Policies and Accounting Estimates/38. Changes inSignificant Accounting Policies and Accounting Estimates".VII. Changes in the Scope of Consolidated Financial Statements Compared withthe Previous Year's Financial Report?Applicable □ Not applicable

(1) In the current period, the Company founded a total of 14 domestic and overseas subsidiaries through investmentestablishment and other means, including Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co., Ltd.,Shandong Dahua Digital Intelligence Technology Co., Ltd., Fujian Dahua Qingchuang Digital Technology Co., Ltd.,Jilin Dahua Zhilian Technology Co., Ltd., Zhengzhou Airport Economy Zone Huaao Technology Co., Ltd., HainanDahua Huizhi Technology Co., Ltd., PT IMOU TEKNOLOGI INDONESIA, PT IMOU INDONESIA SENANTIASA, HirigeTechnology Malaysia Sdn. Bhd., Dahua Technology Egypt LLC, DAHUA TECHNOLOGY AUH FOR SECURITY &SURVEILLANCE - SOLE PROPRIETORSHIP L.L.C., DaHua Ideal Tech, and the enterprises it controls. The abovesubsidiaries were included in the scope of consolidation in the current period.

(2) Dahua Technology USA Inc., a subsidiary of the Company, was transferred during the current period and is nolonger included in the consolidation scope from the date of transfer.

(3) The Company's subsidiaries, Yunnan Zhili Technology Co., Ltd. and Wuhu Huajian Technology Co., Ltd. werewritten off in the current period and they will be no longer included in the scope of consolidation as of the date of write-off.VIII. Appointment and Dismissal of Accounting FirmsCurrently appointed accounting firms

Names of domestic accounting firms	BDO China Shu Lun Pan CPAs (special general partnership)
Remuneration to domestic accounting firms (Unit: ten thousand yuan)	200
Years of continuous audit service of domestic accounting firms	21
Names of Certified Public Accountants from domestic accounting firms	Du Na, Zhang Junhui
The continuous period of audit service for certified public accountants in domestic accounting firms	Du Na has been in service for 2 consecutive years, and Zhang Junhui has been in service for 5 consecutive years.

Whether to reappoint accounting firms for current period

□ Yes ?No

Appointment of accounting firms, financial advisers or sponsors for internal control auditing?Applicable □ Not applicableIn 2024, the Company hired BDO China Shu Lun Pan CPAs (Special General Partnership) as its internal control auditaccounting firm, and paid a total of RMB 400,000 in internal control audit fees during the period; Guosen SecuritiesCo., Ltd. is the sponsor that continues to perform supervisory responsibilities.IX. Suspension of Listing and Termination of Listing after Disclosure of the AnnualReport

□ Applicable ?Not applicable

X. Bankruptcy Reorganization Matters

□ Applicable ?Not applicable

No such case as bankruptcy and reorganization related event during the reporting period.

XI. Significant Lawsuits and Arbitration Matters

□ Applicable ?Not applicable

There is no major lawsuit or arbitration during this reporting period.XII. Penalties and Rectification

□ Applicable ?Not applicable

No such cases as punishment or rectification during the reporting period.

XIII. Integrity of the Company, Its Controlling Shareholders and Actual Controllers

□ Applicable ?Not applicable

XIV. Significant Related-Party Transactions

1. Related transactions relevant to daily operations

□ Applicable ?Not applicable

No such case as significant related-party transactions connected with daily operations.

2. Related transactions in acquisition or sale of assets or equities

□ Applicable ?Not applicable

No such case as related significant transactions in acquisition or sale of assets or equities in the reporting period.

3. Significant related-party transactions arising from joint investments on external parties

□ Applicable ?Not applicable

No such case as significant related-party transactions involving joint external investments.

4. Related-party creditor's rights and debts

□ Applicable ?Not applicable

No such case as related credits and debts during the reporting period.

5. Transactions with related financial companies

□ Applicable ?Not applicable

No deposit, loan, credit or other financial business between the Company and the related financial company and therelated parties.

6. Transactions between the financial company controlled by the Company and the relatedparties

□ Applicable ?Not applicable

There are no deposit, loan, credit, or other financial business between the financial company controlled by theCompany and the related parties.

7. Other significant related-party transactions

?Applicable □ Not applicableOn April 15, 2024, the Company held the Fifth Meeting of the Eighth Board of Directors and reviewed andapproved the "Proposal on the Forecast of Routine Related Transactions in 2024". Based on business developmentand daily operating needs, the Company and its subsidiaries estimate that the total amount of daily relatedtransactions with various related parties in 2024 will be RMB 1,688.94 million (excluding tax).Website for disclosing the interim report on significant related-party transactions

Announcement name	Disclosure date	Website for the disclosure
Announcement on the forecast of daily related-party transactions for 2024	April 16, 2024	http://www.cninfo.com.cn

XV. Significant Contracts and Their Performance

1. Matters on trusteeship, contracting, and leasehold

(1) Matters on trusteeship

□ Applicable ?Not applicable

No such case as custody during the reporting period.

(2) Contracting

□ Applicable ?Not applicable

No such case as contracting during the reporting period.

(3) Leasing

?Applicable □ Not applicableExplanations on leasesDuring the reporting period, some of the Company's own real estate properties and devices were used for rental, andthere are no other leases of major property except for the leased real estate properties used for office, warehouse, andproduction workshops.Cases that brought the profit and loss accounted for more than 10% of the Company's total profit during the reportingperiod

□ Applicable ?Not applicable

No such leases that brought the profit and loss accounted for more than 10% of the Company's total profit during thereporting period.

2. Significant guarantees

?Applicable □ Not applicable

Unit: ten thousand RMB

External guarantees from the Company and its subsidiaries (excluding guarantees to the subsidiaries)
Guaranteed party	Announcement date of disclosure of the guarantee cap	Guarantee amount	Actual occurrence date	Actual guarantee amount	Type of guarantee	Term of guarantee	Due or not	Guarantee for related parties or not
Total amount of guarantees approved during the reporting period (A1)				Total amount of external guarantees actually occurred during the reporting period (A2)
Total amount of external guarantees approved by the end of the reporting period (A3)				Total balance of external guarantees at the end of the reporting period (A4)
Company's guarantees to subsidiaries
Guaranteed party	Announcement date of disclosure of the guarantee cap	Guarantee amount	Actual occurrence date	Actual guarantee amount	Type of guarantee	Term of guarantee	Due or not	Guarantee for related parties or not
Zhejiang Dahua Vision Technology Co., Ltd.	April 16, 2024	832,500.00	2020.04.07	53,000.00	Joint liability guarantee	2020.04.07-2024.03.31	Yes	No
			2021.02.04	100,000.00	Joint liability guarantee	Three years after the maturity of the debts in the master contract	Yes	No
			2023.06.09	40,000.00	Joint liability guarantee	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other	Yes	No

			financing under the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period
2023.06.25	20,000.00	Joint liability guarantee	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes	No
2023.11.20	20,000.00	Joint liability guarantee	Three years from the next day of ICBC Qingchun Sub-branch's external payment commitment	Yes	No
10/13/2017	22,000.00	Joint liability guarantee	Two years after the maturity of the debts in the master contract	No	No
2018.09.21	28,753.60 (USD 40 million)	Joint liability guarantee	Two years after the maturity of the debts in the master contract	No	No
9/1/2020	30,000.00	Joint liability guarantee	Five years upon expiration of debt period of master contract	No	No
2021.07.26	44,000.00	Joint liability guarantee	Three years after the maturity of the debts in the master contract	Yes	No
2021.10.20	20,000.00	Joint liability guarantee	Three years after the maturity of the debts in the master contract	Yes	No
2022.07.22	20,000.00	Joint liability guarantee	Three years after the maturity of the debts in the master contract	No	No
2022.09.19	60,000.00	Joint liability guarantee	2022.09.19-2024.09.18	Yes	No
2023.07.24	40,000.00	Joint liability guarantee	From the date of expiration of the performance period of each debt in the master contract until three	No	No

			years after the date of expiration of the performance period of the last due master debt under all master contracts
2023.07.25	50,000.00	Joint liability guarantee	Three years from the effective date of the Maximum Amount Guarantee Contract to the expiration date of the performance period of each debt under the Credit Business Agreement	Yes	No
2023.09.26	90,000.00	Joint liability guarantee	Calculated separately on the basis of a single credit business handled by Dahua Vision Technology for the debtor, i.e. from the date of signing of the master contract for a single credit business to three years after the expiration date of the debtor's debt performance period under such master contract	No	No
2023.09.26	33,000.00	Joint liability guarantee	Three years from the expiration date of the debtor's performance period as agreed in the master claim contract	No	No
2024.03.01	100,000.00	Joint liability guarantee	Three years from the next day after the expiry date of each type of financing business under the master contract	No	No
2024.04.01	53,000.00	Joint liability guarantee	Two years from the expiration date of the debtor's performance period as agreed in the master contract	No	No
2024.06.07	40,000.00	Joint liability guarantee	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under	No	No

						the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period
			2024.07.25	49,500.00	Joint liability guarantee	Three years from the expiration date of the debtor's performance period as agreed in each specific financing contract	No	No
			2024.08.16	50,000.00	Joint liability guarantee	The guarantee period is three years from the effective date of the Maximum Amount Guarantee Contract until the expiration date of the performance period of each debt under the Credit Business Agreement.	No	No
			2024.09.19	68,000.00	Joint liability guarantee	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No	No
			2024.12.13	20,000.00	Joint liability guarantee	Three years from the expiration date of the debtor's performance period as agreed in the master contract.	No	No
Zhejiang Dahua Zhilian Co., Ltd.	April 16, 2024	277,500.00	2023.06.09	16,000.00	Joint liability guarantee	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the accounts	Yes	No

			receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period
2020.09.24	30,000.00	Joint liability guarantee	Two years after the maturity of the debts in the master contract	Yes	No
2023.06.19	12,000.00	Joint liability guarantee	2023.06.19-2024.06.18	Yes	No
2023.06.19	35,000.00	Joint liability guarantee	2023.06.19-2024.06.18	Yes	No
2021.07.26	16,500.00	Joint liability guarantee	Three years after the maturity of the debts in the master contract	Yes	No
2021.12.03	3,594.20 (USD 5 million)	Joint liability guarantee	2021.12.03-2024.12.02	Yes	No
2022.08.25	20,000.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
2024.09.28	20,000.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
2022.09.19	15,000.00	Joint liability guarantee	2022.09.19-2024.09.18	Yes	No
2023.07.13	8,985.50 (USD 12.5 million)	Joint liability guarantee	2023.7.13-2024.7.12	Yes	No
2023.07.24	50,000.00	Joint liability guarantee	From the date of expiration of the performance period of each debt in the master contract until three years after the date of expiration of the performance period of the last due master debt under all master contracts	Yes	No
2024.01.02	1,000.00	Joint liability guarantee	One year from the expiration date of the debtor's performance period as agreed in the master	Yes	No

			contract
2024.03.29	30,000.00	Joint liability guarantee	Two years from the expiration date of the debtor's performance period as agreed in the master contract	No	No
2024.06.07	16,000.00	Joint liability guarantee	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period	No	No
2024.07.25	60,000.00	Joint liability guarantee	The guarantee period starts from the expiration date of the performance period of each principal debt under the master contract and ends three years after the expiration date of the performance period of the last due principal debt under all master contracts.	No	No
2024.07.25	16,500.00	Joint liability guarantee	Three years from the expiration date of the debtor's performance period as agreed in each specific financing contract	No	No
2024.09.19	15,000.00	Joint liability guarantee	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit	No	No

						contract (including early maturity of the debt).
			2024.09.26	10,000.00	Joint liability guarantee	Three years from the expiration date of the debtor's performance period as agreed in the master contract.	No	No
Zhejiang Dahua System Engineering Co., Ltd.	April 16, 2024	30,000.00	2023.06.09	4,000.00	Joint liability guarantee	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period	Yes	No
			2019.08.30	1,000.00	Joint liability guarantee	Two years after the maturity of the debts in the master contract	Yes	No
			2022.08.25	500.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	500.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
			2023.07.25	5,000.00	Joint liability guarantee	Three years from the effective date of the Maximum Amount Guarantee Contract to the expiration date of the performance period of each debt under the Credit Business Agreement	Yes	No
			2023.09.11	160.21	Joint liability guarantee	One year from the signing of the project contract or 6 months of stable operation of the system on line (whichever is later)	Yes	No

			2024.06.10	4,000.00	Joint liability guarantee	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period	No	No
			2024.08.16	5,000.00	Joint liability guarantee	The guarantee period is three years from the effective date of the Maximum Amount Guarantee Contract until the expiration date of the performance period of each debt under the Credit Business Agreement.	No	No
			2024.09.03	1,000.00	Joint liability guarantee	Two years from the expiration date of the debtor's performance period as agreed in the master contract	No	No
Dahua Technology (HK) Limited	April 16, 2024	70,000.00	2023.04.21	1,437.68 (USD 2 million)	Joint liability guarantee	2023.04.21-2024.04.21	Yes	No
			2024.04.22	2,156.52 (USD 3 million)	Joint liability guarantee	2024.4.22-2025.4.22	No	No
DAHUA TECHNOLOGY MEXICO S.A. DE C.V	April 16, 2024	3,000.00	2023.10.18	718.84 (USD 1 million)	Joint liability guarantee	2023.10.18-2024.10.20	Yes	No
			2024.10.18	718.84 (USD 1 million)	Joint liability guarantee	2024.10.18-2025.10.17	No	No
Hangzhou Huacheng Network Technology Co., Ltd.	April 16, 2024	17,000.00	2019.08.30	5,000.00	Joint liability guarantee	Two years after the maturity of the debts in the master contract	Yes	No
			2021.07.26	5,500.00	Joint liability guarantee	Three years after the maturity of the debts in the master contract	Yes	No

			2022.08.25	6,500.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
Dahua Technology UK Limited	April 16, 2024	4,000.00	2020.08.12	1,052.87 (1.16 million pounds)	Joint liability guarantee	August 12, 2020 - Signature of notice of termination	No	No
			2024.03.04	718.84 (USD 1 million)	Joint liability guarantee	2024.3.4-2025.3.3	No	No
Zhejiang Huayixin Technology Co., Ltd.	April 16, 2024	4,500.00	2022.05.16	1,437.68 (USD 2 million)	Joint liability guarantee	Three years after the maturity of the debts in the master contract	Yes	No
			2022.04.29	1,000.00	Joint liability guarantee	Three years after the maturity of the debts in the master contract	No	No
			2022.08.25	200.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	200.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
			2022.10.21	800.00	Joint liability guarantee	2022.10.21-2024.09.18	Yes	No
			2024.09.26	1,000.00	Joint liability guarantee	From the effective date of the commitment letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the creditor's rights granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance.	No	No
Zhejiang Fengshi Technology Co., Ltd.	April 16, 2024	16,000.00	2023.06.25	2,000.00	Joint liability guarantee	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes	No
			2022.08.25	10,000.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	10,000.00	Joint	2024.09.28-	No	No

					liability guarantee	2025.08.25
			2022.10.21	2,000.00	Joint liability guarantee	2022.10.21-2024.09.18	Yes	No
			2024.09.03	3,000.00	Joint liability guarantee	From the effective date of the commitment letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the creditor's rights granted by the Hangzhou Branch of China Merchants Bank or the advances date of each advance;	No	No
			2024.09.19	1,500.00	Joint liability guarantee	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No	No
Jiangsu Huaruipin Technology Co. Ltd.	April 16, 2024	3,500.00	2022.08.25	800.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	800.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
			2022.10.21	1,500.00	Joint liability guarantee	2022.10.21-2024.09.18	Yes	No
			2024.09.19	1,500.00	Joint liability guarantee	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No	No

Zhejiang Huaxiao Technology Co., Ltd.	April 16, 2024	1,600.00	2022.08.25	200.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	200.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
			2022.10.21	800.00	Joint liability guarantee	2022.10.21-2024.09.18	Yes	No
Xi'an Dahua Zhilian Technology Co., Ltd.	April 16, 2024	20,000.00	2023.06.25	5,000.00	Joint liability guarantee	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes	No
			2022.08.25	10,000.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2022.10.21	2,500.00	Joint liability guarantee	2022.10.21-2024.09.18	Yes	No
			2024.09.19	2,000.00	Joint liability guarantee	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No	No
			2024.09.28	10,000.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
			2024.12.06	3,000.00	Joint liability guarantee	From the effective date of the commitment letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the creditor's rights granted by the Xi'an Branch of China Merchants Bank or the advance	No	No

						date of each advance within the credit extension period;
Zhengzhou Dahua Zhian Information Technology Co., Ltd.	April 16, 2024	10,000.00	2023.06.25	5,000.00	Joint liability guarantee	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes	No
			2022.08.25	3,000.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	3,000.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
			2024.07.16	5,000.00	Joint liability guarantee	2024.07.16-2025.06.09	No	No
Chengdu Dahua Zhian Information Technology Service Co., Ltd.	April 16, 2024	15,000.00	2023.06.25	8,000.00	Joint liability guarantee	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes	No
			2024.07.16	8,000.00	Joint liability guarantee	2024.07.16-2025.06.09	No	No
Changsha Dahua Technology Co., Ltd.	April 16, 2024	8,000.00	2023.06.25	1,000.00	Joint liability guarantee	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes	No
			2022.08.25	3,000.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	5,000.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
			2022.10.21	2,000.00	Joint	2022.10.21-	Yes	No

					liability guarantee	2024.09.18
			2024.09.19	2,000.00	Joint liability guarantee	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No	No
Zhejiang Pixfra Technology Co., Ltd.	April 16, 2024	1,000.00	2022.08.25	500.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	500.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
Zhejiang Huafei Intelligent Technology CO., LTD.	April 16, 2024	500.00	2022.08.25	200.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	200.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
Zhejiang Huajian Technology Co., Ltd.	April 16, 2024	1,000.00	2022.08.25	200.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	200.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
Hangzhou Xiaohua Technology CO., LTD.	April 16, 2024	200.00	2022.08.25	200.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	200.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
Zhejiang Dahua Security Network Operation Service Co., Ltd.	April 16, 2024	500.00	2022.08.25	500.00	Joint liability guarantee	2022.08.25-2024.09.27	Yes	No
			2024.09.28	500.00	Joint liability guarantee	2024.09.28-2025.08.25	No	No
Dahua Technology France SAS	April 16, 2024	700.00	2023.12.07	109.65 (EUR 145,700)	Joint liability guarantee	2023.12.07-2029.08.31	No	No
Dahua EUROPE B.V.	April 16, 2024	20,000.00	2024.03.04	1,078.26 (USD 1.5 million)	Joint liability guarantee	2024.3.4-2025.3.3	No	No

Dahua Technology Italy S.R.L.	April 16, 2024	4,000.00	2024.03.04	359.42 (USD 500,000)	Joint liability guarantee	2024.3.4-2025.3.3	No	No
Guangxi Dahua Information Technology Co., Ltd.	April 16, 2024	100.00	No such case during the reporting period
Guangxi Dahua Technology Co., Ltd.	April 16, 2024	100.00	No such case during the reporting period
Anhui Dahua Zhilian Information Technology Co., Ltd.	April 16, 2024	500.00	No such case during the reporting period
Anhui Dahua Zhishu Information Technology Co., Ltd.	April 16, 2024	500.00	No such case during the reporting period
Chengdu Dahua Zhilian Information Technology Co., Ltd.	April 16, 2024	800.00	No such case during the reporting period
Chengdu Dahua Zhishu Information Technology Service Co., Ltd.	April 16, 2024	500.00	No such case during the reporting period
Chengdu Zhichuang Yunshu Technology Co., Ltd.	April 16, 2024	500.00	No such case during the reporting period
Hangzhou Fuyang Hua'ao Technology Co., Ltd.	April 16, 2024	300.00	No such case during the reporting period
Henan Dahua Zhilian Information Technology Co., Ltd.	April 16, 2024	500.00	No such case during the reporting period
Hunan Dahua Zhilong Information Technology Co., Ltd.	April 16, 2024	100.00	No such case during the reporting period
Tianjin Dahua Information Technology Co., Ltd.	April 16, 2024	200.00	No such case during the reporting period
Tianjin Huajian Technology Co., Ltd.	April 16, 2024	100.00	No such case during the reporting period
Yiwu Huaxi Technology Co., Ltd.	April 16, 2024	100.00	No such case during the reporting period
Zhejiang Dahua Intelligent IoT Operation Service Co., Ltd.	April 16, 2024	500.00	No such case during the reporting period
Zhejiang Huakong Software Co., Ltd.	April 16, 2024	200.00	No such case during the reporting period
Dahua Technology Japan LLC	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Singapore Pte.Ltd.	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Poland Sp.Zo.O.	April 16, 2024	1,000.00	No such case during the reporting period
Dahua Technology Hungary Kft	April 16, 2024	300.00	No such case during the reporting period
Dahua Technology India Private Limited	April 16, 2024	4,000.00	No such case during the reporting period
DAHUA TECHNOLOGY BRASIL COM?RCIO E SERVI?OS EM SEGURAN?A ELETR?NICA LTDA	April 16, 2024	1,000.00	No such case during the reporting period
Dahua Technology Middle East FZE	April 16, 2024	1,000.00	No such case during the reporting period

Dahua Technology Perú S.A.C	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Australia PTY LTD	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology South Africa Proprietary Limited	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Canada INC.	April 16, 2024	100.00	No such case during the reporting period
Dahua Guvenlik Teknolojileri Sanayi ve Ticaret A.S.	April 16, 2024	200.00	No such case during the reporting period
Dahua Technology SRB d.o.o.	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Bulgaria EOOD	April 16, 2024	100.00	No such case during the reporting period
Dahua Iberia, S.L.	April 16, 2024	100.00	No such case during the reporting period
Dahua Security Malaysia SDN. BHD.	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Kazakhstan LLP	April 16, 2024	100.00	No such case during the reporting period
PT. Dahua Vision Technology Indonesia	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Korea Company Limited	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology S.R.L.	April 16, 2024	100.00	No such case during the reporting period
Dahua Vision LLc	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology New Zealand Limited	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology GmbH	April 16, 2024	300.00	No such case during the reporting period
Dahua Technology Colombia S.A.S.	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Panama S.A.	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Chile SpA	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Tunisia Limited Liability Company	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Kenya Limited	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Pakistan (private) Limited	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Morocco SARL	April 16, 2024	100.00	No such case during the reporting period
Dahua Argentina S.A.	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Czech s.r.o.	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology Denmark ApS	April 16, 2024	100.00	No such case during the reporting period
Dahua Technology (Thailand) Co.,LTD.	April 16, 2024	100.00	No such case during the reporting period
Luoyang Dahua Zhiyu Information	April 16, 2024	500.00	No such case during the reporting period

Technology Co., Ltd.
Dahua Technology Belgium B.V.	April 16, 2024	100.00	No such case during the reporting period
DAHUA TECHNOLOGY INTERNATIONAL PTE. LTD.	April 16, 2024	2,000.00	No such case during the reporting period
Dahua Technology Regional Headquarters	April 16, 2024	1,000.00	No such case during the reporting period
Nanyang Dahua Intelligent Information Technology Co., Ltd.	April 16, 2024	200.00	No such case during the reporting period
Yibin Huahui Information Technology Co., Ltd.	April 16, 2024	200.00	No such case during the reporting period
Total amount of guarantees to subsidiaries approved during the reporting period (B1)		1,360,000.00		Total amount of guarantees to subsidiaries actually occurred during the reporting period (B2)		622,331.88
Total amount of guarantees to subsidiaries approved by the end of the reporting period (B3)		1,360,000.00		Total balance of guarantees actually paid to subsidiaries at the end of the reporting period (B4)		887,248.00
Subsidiaries' guarantees to subsidiaries
Guaranteed party	Announcement date of disclosure of the guarantee cap	Guarantee amount	Actual occurrence date	Actual guarantee amount	Type of guarantee	Term of guarantee	Due or not	Guarantee for related parties or not
Huaray Technology Korea Company Limited	December 10, 2024	4,000.00	2024.12.09	169.58 (KRW 343.432 million)	Joint and several liability guarantee	The guarantee period is until HuaRay Korea has fulfilled its responsibilities and obligations under each business agreement. The specific guarantee period under each business contract is calculated separately.	No	No
			2024.12.13	72.59 (KRW 147 million)	Joint and several liability guarantee	The guarantee period is until HuaRay Korea has fulfilled its responsibilities and obligations under each business agreement. The specific guarantee period under each business contract is calculated separately.	No (partially completed)	No
Huaray technology GmbH	December 10, 2024	1,000.00	No such case during the reporting period

Total amount of guarantees to subsidiaries approved during the reporting period (C1)	5,000.00	Total amount of guarantees to subsidiaries actually occurred during the reporting period (C2)	242.17
Total amount of guarantees to subsidiaries approved by the end of the reporting period (C3)	5,000.00	Total balance of guarantees actually paid to subsidiaries at the end of the reporting period (C4)	225.83
Total amount of company guarantees (namely sum of the previous three major items)
Total amount of guarantees approved during the reporting period (A1+B1+C1)	1,365,000.00	Total amount of guarantees actually occurred during the reporting period (A2+B2+C2)	622,574.05
Total amount of guarantees approved by the end of the reporting period (A3+B3+C3)	1,365,000.00	Total balance of guarantees actually paid at the end of the reporting period (A4+B4+C4)	887,473.83
Total amount of actual guarantees (A4+B4+C4) as a percentage of the Company's net assets		24.63%
Including:
Balance of guarantees provided to the shareholders, actual controllers, and their related parties (D)		0.00
Balance of debt guarantees directly or indirectly offered to guaranteed objects with asset-liability ratio exceeding 70% (E)		841,810.32
Amount of the portion of the total guarantee amount exceeding 50% of net assets (F)		0.00
Total amount of the above three guarantees (D+E+F)		841,810.32
Notes on unexpired guarantees with guarantee responsibilities occurred or possible joint liabilities within the reporting period (if any)		None
Notes on providing external guarantees in violation of specified procedures (if any)		None

Explanation of the use of composite guarantee methodN/A

3. Entrusting Others to Manage Cash Assets

(1) Entrusted Financing

?Applicable □ Not applicableEntrusted financing during the reporting period

Unit: ten thousand RMB

Specific type	Funding source	Entrusted amount	Unexpired balance	Overdue outstanding amount	Impairment amount accrued for overdue financial management
Financial products of securities	Equity Fund		100,000.00

companies
Financial products of securities companies	Equity Fund	8,000.00	8,000.00
Total		8,000.00	108,000.00

Specific matters on high-risk entrusted capital management with a large amount for a single item, or with low securityand poor liquidity?Applicable □ Not applicable

Unit: ten thousand RMB

Name of trustee organization (or name of trustee)

Trustee organization (or trustee) type

Product Type

Amount

Capital Source

Starting date

Termination date

Investment direction

Payment determination method

Reference for annualized rate of return

Expected earnings (if any)

Actual profit and loss during the reporting period

Actual recovery of profits and losses during the reporting period

Amount of provision for impairment accrued (if any)

Whether it passed the legal procedures

Whether there will be entrusted financial plan in the future

Item overview and related query index (if any)

Guosen Securities Co., Ltd.

Securities Company

Asset Management Plan

100,000.00

Equity Fund

February 10, 2021

February 09, 2031

Private equity fund products, fixed income assets, equity assets, public equity hybrid funds

Payment of principal and income at maturit

17,543.42

Unexpired

Yes

								y
Guosen Securities Co., Ltd.	Securities Company	Earnings Certificate	8,000.00	Equity Fund	November 6, 2024	November 6, 2025	Others	Principal-Protected Floating Income			20.10	Unexpired		Yes
Total			108,000.00	--	--	--	--	--	--		17,563.52	--		--	--	--

Cases of entrusted financing expected to be unable to recover the principal or cases that may result in impairment

□ Applicable ?Not applicable

(2) Entrusted Loans

□ Applicable ?Not applicable

No such case as entrusted loan during the reporting period.

4. Other Significant Contracts

□ Applicable ?Not applicable

No such case as other significant contract during the reporting period.

XVI. Explanations on Other Significant Matters

□ Applicable ?Not applicable

No such case as other significant events that need to be explained during the reporting period.XVII. Significant Events of the Company's Subsidiaries

□ Applicable ?Not applicable

Section VII Changes in Shares and Information about

ShareholdersI. Changes in Shares

1. Changes in shares

Unit: share

	Before the change		Increase or decrease in the change (+, -)					After the change
	Quantity	Proportion	Shares newly issued	Bonus shares	Shares converted from capital reserves	Others	Subtotal	Quantity	Proportion
I. Shares with limited sales condition	1,335,459,556	40.54%	0	0	0	-144,032,662	-144,032,662	1,191,426,894	36.15%
1. Shares held by state	0	0.00%	0	0	0	0	0	0	0.00%
2. Shares held by state-owned legal persons	293,103,400	8.90%	0	0	0	0	0	293,103,400	8.89%
3. Other domestic shares	1,042,356,156	31.64%	0	0	0	-144,032,662	-144,032,662	898,323,494	27.26%
Shares held by domestic legal persons	0	0.00%	0	0	0	0	0	0	0.00%
Shares held by domestic natural persons	1,042,356,156	31.64%	0	0	0	-144,032,662	-144,032,662	898,323,494	27.26%
4. Foreign	0	0.00%	0	0	0	0	0	0	0.00%

shares
Including: Shares held by overseas legal persons	0	0.00%	0	0	0	0	0	0	0.00%
Shares held by foreign natural persons	0	0.00%	0	0	0	0	0	0	0.00%
II. Shares without restrictions	1,959,009,434	59.46%	3,295,423	0	0	141,897,982	145,193,405	2,104,202,839	63.85%
1. RMB ordinary shares	1,959,009,434	59.46%	3,295,423	0	0	141,897,982	145,193,405	2,104,202,839	63.85%
2. Foreign shares listed in China	0	0.00%	0	0	0	0	0	0	0.00%
3. Foreign shares listed in foreign countries	0	0.00%	0	0	0	0	0	0	0.00%
4. Other	0	0.00%	0	0	0	0	0	0	0.00%
III. Total	3,294,468,990	100.00%	3,295,423	0	0	-2,134,680	1,160,743	3,295,629,733	100.00%

Reasons for changes in shares?Applicable □ Not applicable

1. During the reporting period, in respect of the 2022 stock option and restricted share incentive plan, the Companyrepurchased and cancelled 2,134,680 restricted shares held by the resigned incentive recipients that had not yet beenreleased from the restriction on sale.

2. During the reporting period, the conditions for lifting the restriction on the second restricted period of the 2022 stockoption and restricted share incentive plan have been met. There are 3,798 restricted share incentive targets that canbe lifted from the restriction. The Company has applied to lift the restriction on 20,262,480 restricted shares.

3. During the reporting period, the incentive recipients of the 2022 stock option and restricted share incentive planvoluntarily exercised their rights on their own initiative for a total of 3,295,423 shares.

4. According to relevant regulations, the Company shall lock the shares held by its directors, supervisors, and seniormanagement through re-verification at the beginning of each year and shall lock the shares held by the resigned

directors, supervisors, and senior management in different proportions at different stages based on their resignationdates and former terms of office.Approval for changes in shares?Applicable □ Not applicable

1. The Company's repurchase and cancellation of restricted shares have been reviewed and approved at the FifthMeeting of the Eighth Board of Directors, the Fourth Meeting of the Eighth Board of Supervisors, and the 2023 AnnualGeneral Meeting of Shareholders.

2. On June 19, 2024, the Company held the 6th meeting of the 8th Board of Directors and the 5th meeting of the 8thBoard of Supervisors, at which the “Proposal on Meeting the Conditions for Unlocking the Second Restricted Period of2022 Stock Options and Restricted Stock Incentive Plan” and the “Proposal on Meeting the Conditions for Exercisingthe Second Exercise Period of 2022 Stock Options and Restricted Stock Incentive Plan” were deliberated andapproved. Pursuant to the authorization of the general meeting of shareholders and the Board of Directors, theCompany has completed the listing and circulation of restricted shares and the registration and declaration of voluntaryexercise during the reporting period.Transfer for changes in shares

□ Applicable ?Not applicable

Effects of changes in shares on the basic earnings per share ("EPS"), diluted EPS, net assets per share, attributable tocommon shareholders of the Company, and other financial indexes over the last year and last period?Applicable □ Not applicableDuring the reporting period, the Company's repurchase and cancellation of certain restricted shares and the voluntaryexercise by incentive objects have led to changes in share capital, affecting the Company's basic earnings per share(EPS), diluted earnings per share, net assets per share attributable to common stock shareholders, and other financialindexes over the last year and last period. The impact is detailed in "Section 2 VI. Main Accounting Data and FinancialIndexes".Other contents that the Company considers necessary or are required by the securities regulatory authorities todisclose

□ Applicable ?Not applicable

2. Changes in restricted stocks

?Applicable □ Not applicable

Unit: share

Name of Shareholder	Number Of Shares With Limited Sales Condition At The Beginning Of The Period	Number of increased shares with limited sales condition in current period	Number of unlocked shares with limited sales condition in current period	Number of shares with limited sales condition at the end of the period	Reasons for limited sales	Date of unlocking
Fu Liquan	767,901,735	0	0	767,901,735	Lock-up shares for directors, supervisors and senior management	According to the relevant provisions of shares management of directors, supervisors and senior

						management
China Mobile Communications Group Co., Ltd.	293,103,400	0	0	293,103,400	Issuance of restricted shares to specific objects	April 13, 2026
Chen Ailing	53,447,110	0	0	53,447,110	Lock-up shares for directors, supervisors and senior management	According to the relevant provisions of shares management of directors, supervisors and senior management
Wu Jun	51,879,664	0	0	51,879,664	Lock-up shares for directors, supervisors and senior management	According to the relevant provisions of shares management of directors, supervisors and senior management
Wu Jian	1,155,101	63,600	0	1,218,701	Lock-up shares for directors, supervisors and senior management and restricted shares for equity incentive award	According to the relevant provisions of shares management of directors, supervisors and senior management as well as equity incentive
Zhao Yuning	1,106,850	0	122,400	984,450	Lock-up shares for directors, supervisors and senior management and restricted shares for equity incentive award	According to the relevant provisions of shares management of directors, supervisors and senior management as well as equity incentive
Zhu Jiantang	902,269	0	95,400	806,869	Lock-up shares for directors, supervisors and senior management and restricted shares for equity incentive	According to the relevant provisions of shares management of directors, supervisors and senior management as well as

					award	equity incentive
Li Zhijie	641,850	63,600	0	705,450	Lock-up shares for directors, supervisors and senior management and restricted shares for equity incentive award	According to the relevant provisions of shares management of directors, supervisors and senior management as well as equity incentive
Xu Zhicheng	598,350	63,600	0	661,950	Lock-up shares for directors, supervisors and senior management and restricted shares for equity incentive award	According to the relevant provisions of shares management of directors, supervisors and senior management as well as equity incentive
Other senior executives and equity incentive objects	164,723,227	0	144,005,662	20,717,565	Lock-up shares for directors, supervisors and senior management and restricted shares for equity incentive award	According to the relevant provisions of shares management of directors, supervisors and senior management as well as equity incentive
Total	1,335,459,556	190,800	144,223,462	1,191,426,894	--	--

II. Issuance and listing of securities

1. Securities (excluding preferred share) issued in reporting period

□ Applicable ?Not applicable

2. Explanation on changes in total number of the Company's shares & the structure ofshareholders and the structure of assets and liabilities?Applicable □ Not applicable

1. During the reporting period, in respect of the 2022 stock option and restricted share incentive plan, the Companyrepurchased and cancelled 2,134,680 restricted shares held by the resigned incentive recipients that had not yet beenreleased from the restriction on sale.

2. During the reporting period, the incentive recipients of the 2022 Stock Option and Restricted Share Incentive Planvoluntarily exercised their rights for a total of 3,295,423 shares.

3. Existing shares held by internal staff of the Company

□ Applicable ?Not applicable

III. Particulars about the shareholders and actual controller

1. Total number of shareholders and their shareholdings

Unit: share

Total Number Of Common Shareholders At The End Of The Reporting Period	185,187	Total number of common shareholders at the end of previous month before the disclosure date of the annual report		159,104	Total Number of Preferred Shareholders (If Any) (Refer to Note 8) Whose Voting Rights have been Recovered at the End of the Reporting Period		0		Total number of preferred stock shareholders (if any) with resumed voting rights at the end of the previous month before the disclosure date of the annual report			0
Shareholding situation of shareholders holding over 5% of shares or the top 10 shareholders (excluding shares lent through refinancing)
Name of Shareholder	Nature of Shareholder	Shareholding Percentage	Number of shares held at the end of the reporting period		Changes in the reporting period	Number of shares held with limited sales conditions		Number of shares held without limited sales condition		Pledges, markings, or freezing
										State Of Shares	Quantity
Fu Liquan	Domestic Natural Person	31.07%	1,023,868,980		0	767,901,735		255,967,245		Pledged	138,200,000
China Mobile Communications Group Co., Ltd.	State-owned Legal Person	8.89%	293,103,400		0	293,103,400		0		N/A
Zhu Jiangming	Domestic Natural Person	4.74%	156,227,560		-3,947,930	0		156,227,560		N/A
Chen Ailing	Domestic Natural Person	2.16%	71,262,813		0	53,447,110		17,815,703		Pledged	31,800,000
Wu Jun	Domestic Natural Person	2.10%	69,172,886		0	51,879,664		17,293,222		N/A
Hong Kong Securities	Overseas Legal Person	1.98%	65,134,232		794,488	0		65,134,232		N/A

Clearing Co. Ltd.
China Securities Finance Co., Ltd.	Domestic Non-state-owned Legal Person	1.20%	39,611,241		0	0	39,611,241	N/A
FORESEA Life Insurance Company Limited - participating insurance	Others	1.19%	39,110,996		32,710,996	0	39,110,996	N/A
Industrial and Commercial Bank of China Limited - Huatai-PineBridge CSI 300 Exchange-traded Open-end Index Securities Investment Fund	Others	1.04%	34,180,030		19,456,300	0	34,180,030	N/A
New China Life Insurance Company Limited - Traditional - general insurance - 018L-CT001 Shen	Others	0.74%	24,321,736		0	0	24,321,736	N/A
Strategic investors or general legal persons becoming shareholders of the top 10 common shares as a result of the placement of new shares (if any) (see Note 3)				N/A
Description of the association relationship or concerted action of above-mentioned shareholders				Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company Is Unaware Of Whether Other Shareholders Have Associated Relationship Or Are Persons Acting In Concert
Explanation of the above shareholders involved in proxy/trustee voting rights and abstention from voting rights				N/A
Special note on the existence of repurchase special accounts among				N/A

the top 10 shareholders (if any) (see Note 10)
Shareholding of the top 10 unlimited sale condition shareholders (excluding shares lent through refinancing and lock-up shares for senior management)
Name of Shareholder		Number of shares held without limited sales condition at the end of the reporting period	Type of shares
			Type of shares	Quantity
Fu Liquan		255,967,245	RMB common stock	255,967,245
Zhu Jiangming		156,227,560	RMB common stock	156,227,560
Hong Kong Securities Clearing Co. Ltd.		65,134,232	RMB common stock	65,134,232
China Securities Finance Co., Ltd.		39,611,241	RMB common stock	39,611,241
FORESEA Life Insurance Company Limited - participating insurance		39,110,996	RMB common stock	39,110,996
Industrial and Commercial Bank of China Limited - Huatai-PineBridge CSI 300 Exchange-traded Open-end Index Securities Investment Fund		34,180,030	RMB common stock	34,180,030
New China Life Insurance Company Limited - Traditional - general insurance - 018L-CT001 Shen		24,321,736	RMB common stock	24,321,736
New China Life Insurance Company Limited - dividend- personal dividend - 018L-FH002 Shen		24,146,636	RMB common stock	24,146,636
China Construction Bank Stock Corporation - E Fund CSI 300 Exchange Traded Open-End Index-Initiated Securities Investment Fund		23,536,443	RMB common stock	23,536,443
Chen Ailing		17,815,703	RMB common stock	17,815,703
Explanation on associated relationship or persons acting in concert among top ten shareholders without limited shares, and between top ten shareholders without limited shares and top ten shareholders		Mr. Fu Liquan and Ms. Chen Ailing are husband and wife. The Company Is Unaware Of Whether Other Shareholders Have Associated Relationship Or Are Persons Acting In Concert
Explanation on Top 10 common stock shareholders’ participation in securities margin trading (If any) (see Note 4)		None
Special note on the existence of repurchase special accounts among the top 10 unrestricted shareholders		The Company hereby declares that its special securities account for repurchase held 19,819,601 ordinary shares class A as at the end of the reporting period, with a shareholding ratio of 0.60%, which is not included in the Company's top 10 shareholders without limited sales conditions as required.

Shareholders holding more than 5% of shares, the top 10 shareholders and the top 10 shareholders without limitedoutstanding shares participating in the lending of shares through refinancing?Applicable □ Not applicable

Unit: share

Shareholders holding more than 5% of shares, the top 10 shareholders and the top 10 shareholders without limited outstanding shares participating in the lending of shares through refinancing
Name of Shareholder (full name)	Shares held in ordinary accounts and credit accounts at the beginning of the period	Shares lent through refinancing but have not been returned yet at the beginning of	Shares held in ordinary accounts and credit accounts at the end of the period	Shares lent through refinancing but have not been returned yet at the end of the

			the period				period
	Total quantity	Proportion to total share capital	Total quantity	Proportion to total share capital	Total quantity	Proportion to total share capital	Total quantity	Proportion to total share capital
Industrial and Commercial Bank of China Limited - Huatai-PineBridge CSI 300 Exchange-traded Open-end Index Securities Investment Fund	14,723,730	0.45%	146,800	0.00%	34,180,030	1.04%	0	0.00%
China Construction Bank Stock Corporation - E Fund CSI 300 Exchange Traded Open-End Index-Initiated Securities Investment Fund	5,466,300	0.17%	83,900	0.00%	23,536,443	0.71%	0	0.00%

Changes in top 10 shareholders and top 10 shareholders without limited outstanding shares over the previous perioddue to refinancing, lending/returning

□ Applicable ?Not applicable

Whether the Company's top ten common shareholders or top ten common shareholders without limited shares agreeon any repurchase transaction in the reporting period

□ Yes ?No

None of the Company's top ten common shareholders or top ten common shareholders without limited shares agreedon repurchase in the reporting period.

2. Particulars about the controlling shareholder

Nature of the controlling shareholder: Natural person-ownedType of the controlling shareholder: Natural person

Name of the controlling shareholder	Nationality	Whether he/she has obtained the right of residence in another country or region
Fu Liquan	China	No
Main occupation and title	Chairman and President of the Company
Shares held in other listed companies by controlling or holding in the reporting period	Mr. Fu Liquan directly holds 7.34% of the shares of Leapmotor (HK.09863). In holding shares of Leapmotor, Mr. Fu Liquan, Ms. Chen Ailing, Mr. Zhu Jiangming, and Ms. Liu Yunzhen (Mr. Zhu Jiangming's spouse) act in concert and jointly and ultimately hold approximately 24.48% of the shares of Leapmotor, making them the largest shareholder group of Leapmotor.

Change of the controlling shareholders in the reporting period

□ Applicable ?Not applicable

No change has happened to the controlling shareholder in the reporting period of the Company

3. The actual controller of the Company and persons acting in concertNature of the actual controller: Domestic natural personType of the actual controller: Natural person

Name of the actual controller	Relationship with the actual controller	Nationality	Whether he/she has obtained the right of residence in another country or region
Fu Liquan	Himself	China	No
Chen Ailing	Himself	China	No
Main occupation and title	Mr. Fu Liquan holds the position of the chairman and president of the Company; Ms. Chen Ailing holds the position of a director of the Company.
Information about other listed companies at home and abroad controlled in the last ten years	None

Change of the actual controller in the reporting period

□ Applicable ?Not applicable

No change has happened to the actual controller in the reporting periodBlock Digram for Property Right and Control Relationship between the Company and Actual Controllers

The actual controller controls the Company via trust or other ways of asset management

□ Applicable ?Not applicable

4. The total number of shares pledged by the Company's controlling shareholder or largestshareholder and its persons acting in concert accounts for 80% of the total number of sharesheld by them.

□ Applicable ?Not applicable

5. Particulars about other corporate shareholders with shareholding proportion over 10%

□ Applicable ?Not applicable

Fu Liquan

Chen Ailing

Zhejiang Dahua Technology Co., Ltd.

6. Particulars on share reduction restricted for controlling shareholders, actual controller,restructuring party or other commitment entities

□ Applicable ?Not applicable

IV. Specific Implementation of Share Buybacks during the Reporting PeriodThe progress on share repurchases

□ Applicable ?Not applicable

Progress of the implementation of reducing repurchased shares through centralized competitive bidding

□ Applicable ?Not applicable

Section VIII Information of Preferred Shares

□ Applicable ?Not applicable

There are no preferred shares in the reporting period.

Section IX Situation on Corporate Bonds

□ Applicable ?Not applicable

Section X Financial ReportI. Audit Reports

Audit opinion type	Standard Unqualified Opinion
Signature Date of audit report	March 28, 2025
Name of audit institution	BDO China Shu Lun Pan CPAs (special general partnership)
Audit report ref.	Xin Kuai Shi Bao Zi [2025] No. ZF10088
Name of Certified Public Accountant	Du Na, Zhang Junhui

Audit Report TextTo the shareholders of Zhejiang Dahua Technology Co., Ltd.:

I. Audit Opinion

We have audited the financial statements of Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as theCompany), which comprise the parent company's and the consolidated balance sheet dated December 31, 2024, theparent company's and the consolidated income statement for the year 2024, the parent company's and theconsolidated cash flow statement, the parent company's and the consolidated statement of changes in owners' equity,as well as the notes to relevant financial statements.In our opinion, the attached financial statements are prepared, in all material respects, in accordance withAccounting Standards for Business Enterprises and present fairly the financial position of the parent company and themerged companies as at December 31, 2024 and the operating results and cash flows of the parent company and themerged companies in 2024.II. Basis for Forming Our Audit OpinionWe conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Ourresponsibilities under those standards are further described in the CPA's Responsibilities for the Audit of the FinancialStatements section of our report. According to the Code of Ethics for Chinese Certified Public Accountants, we areindependent of the Company and we have fulfilled our other ethical responsibilities in accordance with the Code. Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.III. Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit ofthe financial statements of the current period. These matters were addressed in the context of our audit of the financialstatements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.The key audit matters identified by us during our audit are summarized below:

Key Audit Matters	How the matter was addressed in the audit
A. Recognition of revenue
Dahua Technology's operating revenue in 2024 was RMB 32,180,931,800, which is an important part of Dahua Technology's income statement. Since revenue is	The main audit procedures we performed for the above key audit matters include: 1. Understand the design and implementation of Dahua Technology's internal control system and financial accounting system related to revenue recognition, and test the effectiveness of their operation.

one of Dahua Technology's key performance indicators, there is an inherent risk that management will manipulate the timing of revenue recognition in order to achieve specific goals or expectations. For this reason, we have determined revenue recognition as a key audit matter. For disclosure on revenue recognition policy, please refer to Note 3 (XXVI); for disclosure on operating revenue amount, please refer to Note 5 (XLV).	2. Differentiate between different types of sales, and based on the actual situation of the specific business, check the provisions of the relevant contracts and evaluate whether the revenue recognition complies with the requirements of the Accounting Standards for Business Enterprises. 3. Perform analytical review to determine the rationality of changes in sales revenue and gross margin. 4. Execute the confirmation procedure: Spot inspection of the annual sales amount and the amount of uncollected payment at the end of the year is confirmed by the customers, and the customs statistical amount certificate is obtained for the main revenue from overseas sales. 5. Test samples of different types of revenue: For standard products sold domestically and overseas sales of overseas subsidiaries, spot inspection of product delivery records, shipping orders, customer signature records, and payment records, etc.; for standard products sold overseas by domestic companies, spot inspection of delivery records, customs declaration forms, bills of lading, and payment records, etc.; for system integration sales, spot inspection of product delivery records, verification of shipping lists and contract lists, installation and commissioning completion acceptance reports, payment records, etc. 6. Sample the transactions made before or after the balance sheet date and check their out-of-stock records, customs declaration form, and other relevant supportive documents to confirm whether the revenues have been recognized in an appropriate accounting period.
B. Recoverability of accounts receivable
At the end of 2024, the net value of Dahua Technology's accounts receivable was RMB 17,046,094,500. The management needs to make significant judgments about the identification of accounts receivable impairment accounts and the likelihood of cash inflow from future customers, and the realization of the guaranteed amount. The management's estimates and assumptions are uncertain. Since the amount of accounts receivable is significant to the financial statements	The main audit procedures we performed for the above key audit matters include: 1. Understand management's key internal controls over financial report related to credit control, account collection and assessment of receivables depreciation reserve. 2. Understand the Company's customer credit management procedures and collection measures for overdue debts. 3. For accounts receivable for which expected credit losses are calculated based on a portfolio of credit risk characteristics, review management’s division of the portfolio and assess the rationality of the estimated expected credit loss rate based on historical credit loss rates, current conditions, and forecasts for future economic conditions. We assessed the reasonableness of the provision ratio with reference to the historical audit experience and prospective information, tested the accuracy of the portfolio classification and

as a whole and the recoverability involves the estimation and judgment of future cash flows, we recognize the recoverability of accounts receivable as a key audit matter. For disclosure of the amount of accounts receivable, please refer to Note 5 (IV).

aging division of the accounts receivable, and recalculated the accuracy of the accrued amount of the expected credit loss. 4. We sampled the accounts receivable subject to separate bad debt provision, and reviewed the basis for the management's assessment of the expected credit loss based on the financial position and credit position of the customer, historical repayment records and prediction of the future economic condition. We validated the management's assessment against the evidence we obtained during the audit process, including background information, past transaction history and payment status of the customer, and forward-looking considerations. 5. Test the payment received after the balance sheet date; 6. Select customer samples according to the spot inspection principle and confirm the balance of accounts receivable. 7. Analyze whether there exist any accounts receivable that cannot be recovered and need to be written off.

IV. Other Information

The management of the Company (hereinafter referred to as the Management) is responsible for the otherinformation. Other information includes information covered in the Company's 2024 annual report, but excludes thefinancial statements and our audit report.Our opinion on the financial statements does not cover the other information and we do not and will not expressany form of assurance conclusion thereon.In combination with our audit of the financial statements, our responsibility is to read the other information and, indoing so, consider whether the other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit, or otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for the Financial Statement

The Management is responsible for preparing the financial statements in accordance with the requirements ofAccounting Standards for Business Enterprises to achieve a fair presentation, and for designing, implementing andmaintaining necessary internal control to ensure that the financial statements are free from material misstatements,whether due to frauds or errors.

In preparing the financial statements, the Management is responsible for assessing the Company's ability tocontinue as a going concern, disclosing matters related to going concern (if applicable) and using the going concernbasis of accounting unless the Management either intends to liquidate the Company or to cease operations, or has norealistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.VI. CPA's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance withthe audit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or

error and are considered material if, individually or in the aggregate, they could reasonably be expected to influencethe economic decisions of users made on the basis of these financial statements.As part of an audit in accordance with the audit standards, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,or the override of internal control.

(2) Understand the internal control related to the audit in order to design appropriate audit procedure.

(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the Management.

(4) Conclude on the appropriateness of using the going concern assumption by the Management. Meanwhile,conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditionsthat may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our audit report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the informationavailable up to the date of our audit report. However, future events or conditions may cause the Company to cease tocontinue as a going concern.

(5) Evaluate the overall presentation (including the disclosures), structure and content of the financial statements,and whether the financial statements fairly reflect the relevant transactions and events.

(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express an opinion on the financial statements. We are responsible for guiding,supervising and implementing the group audit, and remain solely responsible for our audit opinion.

We have communicated with those charged with governance on such matters as the scope of audit as planned,the schedule and material audit findings, including the defects in the internal control that are worth paying attention tofound in this audit.

We have also provided those charged with governance with a statement on observing the professional ethicsrelated to independence, and communicated with those charged with governance on all the relationships and othermatters that might be reasonably deemed to affect our independence, and relevant preventative measures.

From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the key audit matters.We describe these matters in our audit report unless law or regulation precludes public disclosure about the matter orwhen, in extremely rare circumstances, we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

BDO China Shu Lun Pan CPAs Chinese CPA: Du Na(Special General Partnership) (Project Partner)Chinese CPA: Zhang Junhui

Shanghai, China March 28, 2025

II. Financial StatementsUnits of financial reports in the notes: yuan

1. Consolidated Balance Sheet

Prepared by: Zhejiang Dahua Technology Co., Ltd.

December 31, 2024

Unit: RMB

Item	Closing Balance	Opening Balance
Current Assets:
Cash and Bank Balances	11,181,803,423.83	15,971,005,114.47
Deposit Reservation for Balance
Loans to Banks and Other Financial Institutions
Trading Financial Assets	229,927,529.28	1,470,000.00
Derivative Financial Assets
Notes receivable	777,750,260.09	813,039,192.75
Accounts receivable	17,046,094,518.79	16,276,803,954.03
Receivables Financing	841,815,267.43	810,713,267.86
Prepayments	310,574,867.09	189,388,716.99
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves Receivable
Other Receivables	293,728,850.42	337,524,688.36
Including: interest receivable
Dividends Receivable		5,784,225.02
Buying Back the Sale of Financial Assets
Inventory	5,203,560,771.25	5,332,608,544.02
Among them: Data resources
Contract Assets	87,397,517.09	86,714,216.34
Holding for-sale assets
Non-current Assets Due within 1 Year	237,608,641.30	303,454,116.40
Other Current Assets	1,035,802,016.58	939,374,868.31
Subtotal of Current Assets	37,246,063,663.15	41,062,096,679.53
Non-current Assets:
Granting of loans and advances
Investment in Creditor's Rights
Investment in Other Creditor's Rights
Long-term Receivables	744,412,552.00	946,659,309.70
Long-term Equity Investment	722,241,568.57	727,453,629.75

Investment in Other Equity Instruments
Other Non-current Financial Assets	1,274,697,490.87	1,535,742,385.71
Investment Property	139,280,586.26	129,637,004.00
Fixed Assets	4,973,953,628.05	4,937,180,876.88
Projects under Construction	1,254,554,187.36	1,008,612,408.49
Productive Biological Assets
Oil and gas assets
Right-of-use assets	232,124,277.86	299,202,586.56
Intangible Assets	578,035,438.59	594,679,018.11
Among them: Data resources
Development Expenditure
Among them: Data resources
Goodwill	6,615,294.18	6,615,294.18
Long-term Deferred Expenses	99,410,405.42	135,335,273.95
Deferred Income Tax Assets	1,136,746,080.45	1,287,903,482.65
Other Non-Current assets	4,327,776,909.06	210,809,264.49
Subtotal of Non-current Assets	15,489,848,418.67	11,819,830,534.47
Total assets	52,735,912,081.82	52,881,927,214.00
Current Liabilities:
Short-term loan	995,000,000.00	957,426,330.18
Borrowings from the Central Bank
Borrowings from Banks and Other Financial Institutions
Transactional financial liabilities	4,268,603.52	61,400.12
Derivative Financial Liabilities
Notes Payable	3,599,974,242.02	3,296,294,946.26
Accounts Payable	5,877,976,861.13	5,815,123,195.55
Received Prepayments
Contract liabilities	1,282,204,348.75	1,194,534,307.04
Financial Assets Sold for Repurchase
Deposit Taking and Interbank Deposit
Receiving from Vicariously Traded Securities
Receiving from Vicariously Sold Securities
Payroll payable	1,811,053,208.92	1,933,955,631.12
Tax Payable	405,860,321.63	1,243,482,361.08
Other Payables	637,013,560.05	812,424,146.52
Including: interest payable
Dividends Payable	22,951,560.23	23,667,047.02
Service Charge and Commission

Payable
Reinsurance Accounts Payable
Holding for-sale liabilities
Non-current Liabilities Due within 1 Year	117,227,812.08	901,722,028.75
Other Current Liabilities	160,151,530.23	155,182,705.02
Subtotal of Current Liabilities	14,890,730,488.33	16,310,207,051.64
Non-current Liabilities:
Insurance Contract Reserves
Long-term loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease liabilities	114,313,807.41	176,580,049.57
Long-term Payables
Long-term payroll payable
Expected Liabilities	268,194,691.24	224,542,626.90
Deferred Income	186,181,012.99	166,711,673.04
Deferred Income Tax Liabilities	19,162.22	737,367.19
Other Non-current Liabilities	102,264,089.02	119,054,046.66
Subtotal of Non-current Liabilities	670,972,762.88	687,625,763.36
Total Liabilities	15,561,703,251.21	16,997,832,815.00
Shareholders' Equity:
Share Capital	3,295,629,733.00	3,294,468,990.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves	7,156,767,235.86	7,124,125,996.49
Less: Treasury Share	564,654,524.63	746,699,863.45
Other Comprehensive Incomes	104,358,460.57	65,993,020.83
Special Reserves
Surplus Reserves	1,647,814,866.50	1,647,234,495.00
General Risk Reserves
Undistributed Profits	24,388,130,399.78	23,334,051,186.55
Total Shareholders' Equity Attributable to the Parent Company	36,028,046,171.08	34,719,173,825.42
Minority Shareholders' Equity	1,146,162,659.53	1,164,920,573.58
Total Shareholders' Equity	37,174,208,830.61	35,884,094,399.00
Total Liabilities and Shareholders' Equity	52,735,912,081.82	52,881,927,214.00

Legal representative: Fu Liquan Person in charge of the accounting work: Xu Qiaofen Person in charge of theaccounting institution: Zhu Zhuling

2. Balance Sheet of the Parent Company

Unit: RMB

Item	Closing Balance	Opening Balance
Current Assets:

Cash and Bank Balances	5,897,243,923.06	9,624,679,601.93
Trading Financial Assets	229,927,529.28
Derivative Financial Assets
Notes receivable	46,362,406.21	368,774,122.18
Accounts receivable	4,139,497,263.56	6,640,946,970.53
Receivables Financing	719,599,879.51	698,297,307.69
Prepayments	16,906,692.15	31,587,070.13
Other Receivables	13,384,626,871.41	11,736,609,900.41
Including: interest receivable
Dividends Receivable
Inventory	284,771,384.52	447,927,880.25
Among them: Data resources
Contract Assets	11,494,282.17	12,985,980.46
Holding for-sale assets
Non-current Assets Due within 1 Year	3,807,555.80	10,032,002.75
Other Current Assets	538,541,006.72	348,700,342.87
Subtotal of Current Assets	25,272,778,794.39	29,920,541,179.20
Non-current Assets:
Investment in Creditor's Rights
Investment in Other Creditor's Rights
Long-term Receivables	1,954,398.82	5,359,168.22
Long-term Equity Investment	8,162,278,853.75	8,191,802,935.85
Investment in Other Equity Instruments
Other Non-current Financial Assets	1,249,757,490.87	1,513,272,385.71
Investment Property	19,105,162.49	1,817,925.82
Fixed Assets	1,727,649,143.59	1,814,451,576.60
Projects under Construction	3,656,082.30	3,556,445.35
Productive Biological Assets
Oil and gas assets
Right-of-use assets	65,543,667.49	94,348,785.64
Intangible Assets	128,466,583.90	140,815,043.41
Among them: Data resources
Development Expenditure
Among them: Data resources
Goodwill
Long-term Deferred Expenses	51,808,153.67	66,926,895.55
Deferred Income Tax Assets	193,183,542.15	1,008,929.69
Other Non-Current assets	3,122,186,359.68	18,782,264.32
Subtotal of Non-current Assets	14,725,589,438.71	11,852,142,356.16
Total assets	39,998,368,233.10	41,772,683,535.36

Current Liabilities:
Short-term loan		600,266,666.67
Transactional financial liabilities	776,841.98
Derivative Financial Liabilities
Notes Payable	654,898,101.96	221,026,659.43
Accounts Payable	998,713,006.78	884,748,949.13
Received Prepayments
Contract liabilities	127,382,878.88	125,050,543.58
Payroll payable	1,115,800,008.44	1,354,637,328.45
Tax Payable	170,444,725.36	1,008,009,000.74
Other Payables	1,350,481,637.98	1,193,481,602.34
Including: interest payable
Dividends Payable	22,951,560.23	23,667,047.02
Holding for-sale liabilities
Non-current Liabilities Due within 1 Year	35,716,560.18	787,284,456.59
Other Current Liabilities	25,720,588.07	22,753,109.13
Subtotal of Current Liabilities	4,479,934,349.63	6,197,258,316.06
Non-current Liabilities:
Long-term loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease liabilities	23,992,169.41	48,328,489.38
Long-term Payables
Long-term payroll payable
Expected Liabilities	39,764,161.76	1,550,020.50
Deferred Income	30,091,476.57
Deferred Income Tax Liabilities
Other Non-current Liabilities	44,307.49	144,070.84
Subtotal of Non-current Liabilities	93,892,115.23	50,022,580.72
Total Liabilities	4,573,826,464.86	6,247,280,896.78
Shareholders' Equity:
Share Capital	3,295,629,733.00	3,294,468,990.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves	6,888,762,462.22	6,881,563,679.88
Less: Treasury Share	564,654,524.63	746,699,863.45
Other Comprehensive Incomes
Special Reserves
Surplus Reserves	1,647,814,866.50	1,647,234,495.00
Undistributed Profits	24,156,989,231.15	24,448,835,337.15
Total Shareholders' Equity	35,424,541,768.24	35,525,402,638.58
Total Liabilities and Shareholders' Equity	39,998,368,233.10	41,772,683,535.36

3. Consolidated Income Statement

Unit: RMB

Item	2024	2023
I. Total Operating Revenue	32,180,931,827.17	32,218,317,636.77
Including: Operating Revenue	32,180,931,827.17	32,218,317,636.77
Interest Income
Earned Premiums
Service Charge and Commission Income
II. Total Operating Cost	30,034,509,485.68	29,058,697,666.07
Including: Operating Cost	19,681,686,604.51	18,804,021,731.30
Interest Expenditures
Service Charge and Commission Expenses
Surrender Value
Net Claims Paid
Net Amount of Withdrawn Reserve for Insurance Liability Contract
Policyholder Dividend Expense
Reinsurance Cost
Taxes and Surcharges	221,316,771.47	275,786,197.05
Sales Expenses	5,166,733,337.95	5,163,519,417.85
Administration expenses	1,141,408,186.63	1,257,429,514.27
Research and development expense	4,213,255,565.73	3,967,248,795.22
Financial expenses	-389,890,980.61	-409,307,989.62
Including: interest expenses	45,574,086.20	95,985,194.10
Interest Income	420,512,502.16	345,537,378.77
Add: Other income	1,007,110,693.00	942,767,172.83
Investment Income (Mark "-" for Loss)	464,818,698.59	4,495,973,812.03
Including: Investment Income from Affiliates and Joint Ventures	14,958,434.46	-242,631,295.52
Profits from recognition Termination of Financial Assets at Amortized Cost	-1,428,980.24	-16,573,899.23
Exchange Gains (Mark "-" for Losses)
Profit of Net Exposure Hedging (Mark "-" for Loss)
Incomes from changes in fair value (losses marked with "-")	-43,415,404.28	127,628,374.87

Credit Impairment Losses (Mark "-" for Loss)	-487,985,185.36	-412,457,117.43
Asset Impairment Losses (Mark "-" for Loss)	-107,759,438.82	-174,514,315.74
Asset Disposal Income (Mark "-" for Loss)	805,684.66	2,007,798.39
III. Operating Profit (Mark "-" for Loss)	2,979,997,389.28	8,141,025,695.65
Add: Non-operating Revenues	19,028,847.26	13,528,994.25
Less: Non-operating Expenses	9,556,681.90	32,849,032.26
IV. Total Profit (Mark "-" for Total Loss)	2,989,469,554.64	8,121,705,657.64
Less: Income Tax Expense	70,297,282.61	646,438,172.09
V. Net Profit (Mark "-" for Net Loss)	2,919,172,272.03	7,475,267,485.55
(I) Classified by operation continuity
1. Net Profit as a Going Concern (Mark "-" for Net Loss)	2,919,172,272.03	7,475,267,485.55
2. Net Profit of Discontinued Operation (Mark "-" for Net Loss)
(II) Classified by the attribution of ownership
1. Net Profit Attributable to Shareholders of Parent Company	2,905,728,684.03	7,361,892,404.52
2. Minority Shareholders' Profit and Loss	13,443,588.00	113,375,081.03
VI. Net Amount of Other Comprehensive Incomes after Tax	37,679,325.95	29,150,995.25
Net Amount of Other Comprehensive Incomes after Tax Attributable to the Parent Company's Owner	38,365,439.74	29,050,681.06
(I) Other comprehensive income that cannot be reclassified into profit or loss
1. Re-measure the variation of the defined benefit plan
2. Other comprehensive income that cannot be transferred to P/L under the equity method
3. Changes in the fair value of investment in other equity instruments
4. Changes in the fair value of the credit risk of the enterprise
5. Others
(II) Other comprehensive income that will be reclassified as P/L	38,365,439.74	29,050,681.06
1. Other comprehensive income that can be transferred to P/L under the equity method
2.Changes in the fair value of investment in other creditor's rights
3. Financial assets reclassified

into other comprehensive income
4. Provisions for the credit impairment of investment in other creditor's rights
5. Cash flow hedge reserves
6. Currency conversion difference	38,365,439.74	29,050,681.06
7. Others
Net Amount of Other Comprehensive Incomes After Tax Attributable to Minority Shareholders	-686,113.79	100,314.19
VII. Total Comprehensive Income	2,956,851,597.98	7,504,418,480.80
Total Comprehensive Income Attributable to the Parent Company's Owner	2,944,094,123.77	7,390,943,085.58
Total Comprehensive Income Attributable to Minority Shareholders	12,757,474.21	113,475,395.22
VIII. Earnings Per Share
(I) Basic Earnings per Share	0.90	2.31
(II) Diluted Earnings per Share	0.90	2.31

Legal representative: Fu Liquan Person in charge of accounting work: Xu Qiaofen Person in charge of theaccounting institution: Zhu Zhuling

4. Income Statement of the Parent Company

Unit: RMB

Item	2024	2023
I. Operating Revenue	7,518,191,042.08	10,675,914,320.02
Less: Operating Cost	1,465,137,970.11	1,691,509,093.51
Taxes and Surcharges	111,825,883.38	146,495,115.07
Sales Expenses	2,431,702,053.58	2,462,085,420.10
Administration expenses	635,934,038.09	680,831,535.05
Research and development expense	3,065,795,148.03	2,864,986,091.20
Financial expenses	-287,777,462.98	-91,154,399.90
Including: interest expenses	31,357,085.45	81,261,266.60
Interest Income	260,649,260.35	213,951,362.84
Add: Other income	811,362,856.47	679,492,419.86
Investment Income (Mark "-" for Loss)	302,148,808.75	4,314,965,696.38
Including: Investment Income from Affiliates and Joint Ventures	-34,908,353.35	-309,247,666.73
Profits from Derecognition of Financial Assets at Amortized Cost (Mark "-" for Loss)	-2,965,408.15	-4,044,983.67
Profit of Net Exposure Hedging (Mark "-" for Loss)
Incomes from changes in fair value (losses marked with "-")	-42,997,536.67	101,037,455.74
Credit Impairment Losses	-41,819,656.19	-43,204,243.79

(Mark "-" for Loss)
Asset Impairment Losses (Mark "-" for Loss)	-912,196.39	-449,430.51
Asset Disposal Income (Mark "-" for Loss)	-173,915.70	539,633,345.30
II. Operating Profit (Mark "-" for Loss)	1,123,181,772.14	8,512,636,707.97
Add: Non-operating Revenues	4,086,587.52	1,578,964.62
Less: Non-operating Expenses	2,141,311.75	1,596,176.55
III. Total Profit (Mark "-" for Total Loss)	1,125,127,047.91	8,512,619,496.04
Less: Income Tax Expense	-434,676,316.89	725,580,252.78
IV. Net Profit (Mark "-" for Net Loss)	1,559,803,364.80	7,787,039,243.26
(I) Net Profit as a Going Concern (Mark "-" for Net Loss)	1,559,803,364.80	7,787,039,243.26
(II) Net Profit of Discontinued Operation (Mark "-" for Net Loss)
V. Net Amount of Other Comprehensive Incomes After Tax
(I) Other comprehensive income that cannot be reclassified into profit or loss
1. Re-measure the variation of the defined benefit plan
2. Other comprehensive income that cannot be transferred to P/L under the equity method
3. Changes in the fair value of investment in other equity instruments
4. Changes in the fair value of the credit risk of the enterprise
5. Others
(II) Other comprehensive income that will be reclassified as P/L
1. Other comprehensive income that can be transferred to P/L under the equity method
2.Changes in the fair value of investment in other creditor's rights
3. Financial assets reclassified into other comprehensive income
4. Provisions for the credit impairment of investment in other creditor's rights
5. Cash flow hedge reserves
6. Currency conversion difference
7. Others
VI. Total Comprehensive Income	1,559,803,364.80	7,787,039,243.26
VII. Earnings per share
(I) Basic Earnings per Share	0.48	2.45
(II) Diluted Earnings per Share	0.48	2.44

5. Consolidated Cash Flow Statement

Unit: RMB

Item	2024	2023
I. Cash Flow Generated by Operational Activities:
Cash from Sales of Merchandise and Provision of Services	34,669,187,205.38	34,442,145,403.42
Net Increase in Customer's Bank Deposits and Interbank Deposits
Net Increase in Borrowings from the Central Bank
Net Increase in Borrowings from Other Financial Institutions
Cash Arising from Receiving Premiums for the Original Insurance Contract
Net Amount Arising from Reinsurance Business
Net Increase in Deposits and Investments from Policyholders
Cash Arising from Interests, Service Charges and Commissions
Net Increase in Borrowings from Banks and Other Financial Institutions
Net Increase in Repurchase Business Funds
Net Amount of Cash Received from the Vicariously Traded Securities
Tax Refund	1,155,885,839.76	1,297,555,479.60
Other Received Cash Related to Operational Activities	1,493,775,604.08	1,458,933,374.74
Subtotal of cash inflow from operational activities	37,318,848,649.22	37,198,634,257.76
Cash Paid for Merchandise and Services	21,837,355,751.06	21,282,073,936.41
Net Increase in Loans and Advances to Customers
Net Increase in Deposits with Central Bank and Other Financial Institutions
Cash Paid for Original Insurance Contract Claims
Net increase of funds lent
Cash Paid for Interests, Service Charges and Commissions
Cash Paid for Policy Dividends
Cash Paid to and for Employees	7,891,665,626.88	7,048,918,522.07
Cash Paid for Taxes and Surcharges	2,369,366,594.70	1,924,186,453.49
Other Paid Cash Related to	2,510,223,067.28	2,344,676,691.32

Operational Activities
Subtotal of cash outflow from operational activities	34,608,611,039.92	32,599,855,603.29
Net cash flow generated by operating activities	2,710,237,609.30	4,598,778,654.47
II. Cash Flow from Investment Activities:
Cash Arising from Disposal of Investments	15,446,431,122.05	4,741,623,320.96
Cash Arising from Investment Incomes	24,092,429.23	28,682,909.98
Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets	1,760,730.93	4,137,565.27
Net Cash Arising from Disposal of Subsidiaries and Other Business Units	90,212,801.88
Other Received Cash Related to Investment Activities	45,191,811.49	49,811,896.09
Subtotal of cash inflow from investment activities	15,607,688,895.58	4,824,255,692.30
Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets	907,507,733.38	1,445,917,821.13
Cash Paid for Investments	19,513,379,638.01	1,566,078,364.60
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of Subsidiaries and Other Business Units	12,269,004.98
Other Paid Cash Related to Investment Activities	6,618,141.94	86,037,580.10
Subtotal of cash outflows from investment activities	20,439,774,518.31	3,098,033,765.83
Net amount of cash flow generated by investment activities	-4,832,085,622.73	1,726,221,926.47
III. Cash Flow from Financing Activities:
Cash Arising from Absorbing Investments	50,992,358.19	5,835,668,662.56
Including: Cash Arising from Subsidiaries Absorbing Investments by Minority Shareholders		739,669,502.56
Cash Arising from Borrowings	2,314,437,200.00	2,629,490,853.55
Other Received Cash Related to Financing Activities
Subtotal of cash inflow from financing activities	2,365,429,558.19	8,465,159,516.11
Cash Paid for Debts Repayment	3,061,814,753.64	4,075,180,609.51
Cash Paid for Distribution of Dividends and Profits or Payment of Interests	1,891,030,117.80	1,868,381,166.79
Including: Dividends and Profits Paid to Minority Shareholders by Subsidiaries	7,978,707.94	1,104,770.95
Other Paid Cash Related to	216,004,106.63	868,734,705.55

Financing Activities
Subtotal of cash outflow from financing activities	5,168,848,978.07	6,812,296,481.85
Net cash flow generated by financing activities	-2,803,419,419.88	1,652,863,034.26
IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents	106,138,654.64	24,330,927.12
V. Net Increase in Cash and Cash Equivalents	-4,819,128,778.67	8,002,194,542.32
Add: Cash and Cash Equivalents at the Commencement of the Period	15,880,659,594.95	7,878,465,052.63
VI. Cash and Cash Equivalents at the End of the Period	11,061,530,816.28	15,880,659,594.95

6. Cash Flow Statement of the Parent Company

Unit: RMB

Item	2024	2023
I. Cash Flow Generated by Operational Activities:
Cash from Sales of Merchandise and Provision of Services	10,850,756,525.93	9,580,658,235.54
Tax Refund
Other Received Cash Related to Operational Activities	1,125,632,790.31	995,036,096.41
Subtotal of cash inflow from operational activities	11,976,389,316.24	10,575,694,331.95
Cash Paid for Merchandise and Services	968,711,350.46	894,299,605.11
Cash Paid to and for Employees	4,402,936,109.00	4,148,209,445.47
Cash Paid for Taxes and Surcharges	1,449,599,709.32	980,532,790.15
Other Paid Cash Related to Operational Activities	1,358,974,968.97	1,218,042,054.87
Subtotal of cash outflow from operational activities	8,180,222,137.75	7,241,083,895.60
Net cash flow generated by operating activities	3,796,167,178.49	3,334,610,436.35
II. Cash Flow from Investment Activities:
Cash Arising from Disposal of Investments	15,426,645,123.37	4,438,176,060.20
Cash Arising from Investment Incomes	10,967,181.79	5,321,510.33
Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets	13,649,372.37	6,507,850.94
Net Cash Arising from Disposal of Subsidiaries and Other Business Units
Other Received Cash Related to Investment Activities	12,992,141.32
Subtotal of cash inflow from investment activities	15,464,253,818.85	4,450,005,421.47
Cash Paid for Purchase and Construction of Fixed Assets,	205,035,322.18	306,866,259.04

Intangible Assets and Other Long-term Assets
Cash Paid for Investments	18,381,974,779.81	4,253,829,235.00
Net Cash Paid for Acquisition of Subsidiaries and Other Business Units
Other Paid Cash Related to Investment Activities
Subtotal of cash outflows from investment activities	18,587,010,101.99	4,560,695,494.04
Net amount of cash flow generated by investment activities	-3,122,756,283.14	-110,690,072.57
III. Cash Flow from Financing Activities:
Cash Arising from Absorbing Investments	50,992,358.19	5,095,999,160.00
Cash Arising from Borrowings		1,200,000,000.00
Other Received Cash Related to Financing Activities	1,290,399,680.88	1,931,048,415.78
Subtotal of cash inflow from financing activities	1,341,392,039.07	8,227,047,575.78
Cash Paid for Debts Repayment	1,350,000,000.00	2,553,632,141.60
Cash Paid for Distribution of Dividends and Profits or Payment of Interests	1,862,686,225.19	1,846,648,732.12
Other Paid Cash Related to Financing Activities	2,597,195,502.26	1,363,667,384.09
Subtotal of cash outflow from financing activities	5,809,881,727.45	5,763,948,257.81
Net cash flow generated by financing activities	-4,468,489,688.38	2,463,099,317.97
IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents	56,956,344.12	-38,899,297.35
V. Net Increase in Cash and Cash Equivalents	-3,738,122,448.91	5,648,120,384.40
Add: Cash and Cash Equivalents at the Commencement of the Period	9,581,289,905.32	3,933,169,520.92
VI. Cash and Cash Equivalents at the End of the Period	5,843,167,456.41	9,581,289,905.32

7. Consolidated Statement of Changes in Owners' Equity

Amount of this period

Unit: RMB

Item	2024
	Shareholders' Equity Attributable to the Parent Company's Owner													Minority Shareholders' Equity	Total Shareholders' Equity
	Share Capital	Other Equity Instruments			Capital Reserves	Less: Treasury Share	Other Comprehensive Incomes	Special Reserves	Surplus Reserves	General Risk Reserves	Undistributed Profits	Others	Subtotal
		Preferred Stocks	Perpetual Bonds	Others
I. Balance at the End of Last Year	3,294,468,990.00				7,124,125,996.49	746,699,863.45	65,993,020.83		1,647,234,495.00		23,334,051,186.55		34,719,173,825.42	1,164,920,573.58	35,884,094,399.00
Add: Changes in Accounting Policies
Correction of Errors in the Previous Period
Others
II. Balance at the Start of This Year	3,294,468,990.00				7,124,125,996.49	746,699,863.45	65,993,020.83		1,647,234,495.00		23,334,051,186.55		34,719,173,825.42	1,164,920,573.58	35,884,094,399.00
III. Increases or Decreases	1,160,743.00				32,641,239.37	-182,045,338.82	38,365,439.74		580,371.50		1,054,079,213.23		1,308,872,345.66	-18,757,914.05	1,290,114,431.61

in This Period (Mark "-" for Decreases)
(I) Total Comprehensive Income							38,365,439.74				2,905,728,684.03		2,944,094,123.77	12,757,474.21	2,956,851,597.98
(II) Shareholders' Contribution and Reduction in Capital	1,160,743.00				31,133,000.42	-182,045,338.82							214,339,082.24	26,793,587.40	241,132,669.64
1． Common stock invested by the owner	1,160,743.00				32,412,626.39	-182,045,338.82							215,618,708.21		215,618,708.21
2． Capital Invested by Holders of Other Equity Instruments
3． Amount of Share-based Payments Recorded into Shareholders' Equity					-1,279,625.97								-1,279,625.97	26,793,587.40	25,513,961.43
4． Others
(III) Profit Distribution									580,371.50		-1,851,64		-1,851,06	-7,978,70	-1,859,047,

											9,470.80		9,099.30	7.94	807.24
1． Appropriation of Surplus Reserves									580,371.50		-580,371.50
2． Appropriation of General Risk Reserves
3． Distribution to Owners (or Shareholders)											-1,851,069,099.30		-1,851,069,099.30	-7,978,707.94	-1,859,047,807.24
4． Others
(IV) Internal Carry-forward of Shareholders' Equity
1． Capital Reserves Transferred into Capital (or Share Capital)
2． Surplus Reserves Transferred into Capital (or Share Capital)
3． Surplus Reserves Covering Losses

4． Carry-forward retained earnings of the variation of the defined benefit plan
5． Other Carry-forward Retained Earnings of the Comprehensive Income
6. Others
(V) Special Reserves
1． Withdrawal in this period
2． Used in This Period
(VI) Others					1,508,238.95								1,508,238.95	-50,330,267.72	-48,822,028.77
IV. Balance at the End of This Period	3,295,629,733.00				7,156,767,235.86	564,654,524.63	104,358,460.57		1,647,814,866.50		24,388,130,399.78		36,028,046,171.08	1,146,162,659.53	37,174,208,830.61

Amount of Previous Period

Unit: RMB

Item

2023

	Shareholders' Equity Attributable to the Parent Company's Owner													Minority Shareholders' Equity	Total Shareholders' Equity
	Share Capital	Other Equity Instruments			Capital Reserves	Less: Treasury Share	Other Comprehensive Incomes	Special Reserves	Surplus Reserves	General Risk Reserves	Undistributed Profits	Others	Subtotal
		Preferred Stocks	Perpetual Bonds	Others
I. Balance at the End of Last Year	3,033,161,170.00				3,950,209,243.25	609,859,632.00	36,942,339.77		1,553,691,005.92		17,872,654,791.67		25,836,798,918.61	381,572,840.72	26,218,371,759.33
Add: Changes in Accounting Policies
Correction of Errors in the Previous Period
Others
II. Balance at the Start of This Year	3,033,161,170.00				3,950,209,243.25	609,859,632.00	36,942,339.77		1,553,691,005.92		17,872,654,791.67		25,836,798,918.61	381,572,840.72	26,218,371,759.33
III. Increases or Decreases in This Period (Mark "-" for Decreases)	261,307,820.00				3,173,916,753.24	136,840,231.45	29,050,681.06		93,543,489.08		5,461,396,394.88		8,882,374,906.81	783,347,732.86	9,665,722,639.67
(I) Total Comprehensive							29,050,681.06				7,361,892,404.52		7,390,943,085.58	113,475,395.22	7,504,418,480.80

Income
(II) Shareholders' Contribution and Reduction in Capital	261,307,820.00				4,819,307,262.43	136,840,231.45							4,943,774,850.98	797,188,107.34	5,740,962,958.32
1． Common stock invested by the owner	261,307,820.00				4,569,028,534.26	136,840,231.45							4,693,496,122.81	739,669,502.56	5,433,165,625.37
2． Capital Invested by Holders of Other Equity Instruments
3． Amount of Share-based Payments Recorded into Shareholders' Equity					250,278,728.17								250,278,728.17	57,518,604.78	307,797,332.95
4． Others
(III) Profit Distribution									93,543,489.08		-1,903,104,710.27		-1,809,561,221.19		-1,809,561,221.19
1． Appropriation of Surplus Reserves									93,543,489.08		-93,543,489.08
2． Appropriation of General

Risk Reserves
3． Distribution to Owners (or Shareholders)											-1,809,561,221.19		-1,809,561,221.19		-1,809,561,221.19
4． Others
(IV) Internal Carry-forward of Shareholders' Equity											2,608,700.63		2,608,700.63		2,608,700.63
1． Capital Reserves Transferred into Capital (or Share Capital)
2． Surplus Reserves Transferred into Capital (or Share Capital)
3． Surplus Reserves Covering Losses
4． Carry-forward retained earnings of the variation of the defined benefit plan

5． Other Carry-forward Retained Earnings of the Comprehensive Income											2,608,700.63		2,608,700.63		2,608,700.63
6. Others
(V) Special Reserves
1． Withdrawal in this period
2． Used in This Period
(VI) Others					-1,645,390,509.19								-1,645,390,509.19	-127,315,769.70	-1,772,706,278.89
IV. Balance at the End of This Period	3,294,468,990.00				7,124,125,996.49	746,699,863.45	65,993,020.83		1,647,234,495.00		23,334,051,186.55		34,719,173,825.42	1,164,920,573.58	35,884,094,399.00

8. Statement of Changes in Owners' Equity of the Parent Company

Amount of this period

Unit: RMB

Item

2024

Share Capital

Other Equity Instruments

Capital Reserves

Less: Treasury Share

Other Comprehensive Income

Special Reserves

Surplus Reserves

Undistributed Profits

Others

Total Shareholders' Equity

Preferred Stocks

Perpetual Bonds

Others

							s
I. Balance at the End of Last Year	3,294,468,990.00				6,881,563,679.88	746,699,863.45			1,647,234,495.00	24,448,835,337.15		35,525,402,638.58
Add: Changes in Accounting Policies
Correction of Errors in the Previous Period
Others
II. Balance at the Start of This Year	3,294,468,990.00				6,881,563,679.88	746,699,863.45			1,647,234,495.00	24,448,835,337.15		35,525,402,638.58
III. Increases or Decreases in This Period (Mark "-" for Decreases)	1,160,743.00				7,198,782.34	-182,045,338.82			580,371.50	-291,846,106.00		-100,860,870.34
(I) Total Comprehensive Income										1,559,803,364.80		1,559,803,364.80
(II) Shareholders' Contribution and Reduction in Capital	1,160,743.00				3,857,141.61	-182,045,338.82						187,063,223.43
1． Common stock invested by	1,160,743.00				32,412,626.39	-182,045,338.82						215,618,708.21

the owner
2． Capital Invested by Holders of Other Equity Instruments
3． Amount of Share-based Payments Recorded into Shareholders' Equity					-28,555,484.78							-28,555,484.78
4． Others
(III) Profit Distribution									580,371.50	-1,851,649,470.80		-1,851,069,099.30
1． Appropriation of Surplus Reserves									580,371.50	-580,371.50
2． Distribution to Owners (or Shareholders)										-1,851,069,099.30		-1,851,069,099.30
3． Others
(IV) Internal Carry-forward of Shareholders' Equity
1． Capital Reserves Transferred

into Capital (or Share Capital)

2． Surplus Reserves Transferred into Capital (or Share Capital)

3． Surplus Reserves Covering Losses

4． Carry-forward retained earnings of the variation of the defined benefit plan

5． Other Carry-forward Retained Earnings of the Comprehensive Income

6. Others

(V) Special Reserves

1． Withdrawal in this period

2． Used in This Period

(VI) Others					3,341,640.73							3,341,640.73
IV. Balance at the End of This Period	3,295,629,733.00				6,888,762,462.22	564,654,524.63			1,647,814,866.50	24,156,989,231.15		35,424,541,768.24

Amount of Previous Period

Unit: RMB

Item	2023
	Share Capital	Other Equity Instruments			Capital Reserves	Less: Treasury Share	Other Comprehensive Incomes	Special Reserves	Surplus Reserves	Undistributed Profits	Others	Total Shareholders' Equity
		Preferred Stocks	Perpetual Bonds	Others
I. Balance at the End of Last Year	3,033,161,170.00				3,788,412,149.09	609,859,632.00			1,553,691,005.92	18,562,292,103.53		26,327,696,796.54
Add: Changes in Accounting Policies
Correction of Errors in the Previous Period
Others
II. Balance at the Start of This Year	3,033,161,170.00				3,788,412,149.09	609,859,632.00			1,553,691,005.92	18,562,292,103.53		26,327,696,796.54
III. Increases or Decreases in This Period (Mark	261,307,820.00				3,093,151,530.79	136,840,231.45			93,543,489.08	5,886,543,233.62		9,197,705,842.04

"-" for Decreases)
(I) Total Comprehensive Income										7,787,039,243.26		7,787,039,243.26
(II) Shareholders' Contribution and Reduction in Capital	261,307,820.00				4,831,835,630.39	136,840,231.45						4,956,303,218.94
1． Common stock invested by the owner	261,307,820.00				4,569,028,534.26	136,840,231.45						4,693,496,122.81
2． Capital Invested by Holders of Other Equity Instruments
3． Amount of Share-based Payments Recorded into Shareholders' Equity					262,807,096.13							262,807,096.13
4． Others
(III) Profit Distribution									93,543,489.08	-1,903,104,710.27		-1,809,561,221.19
1． Appropriation of Surplus Reserves									93,543,489.08	-93,543,489.08
2． Distributi										-1,809,561,221.19		-1,809,561,221.19

on to Owners (or Shareholders)

3． Others

(IV) Internal Carry-forward of Shareholders' Equity

2,608,700.63

2,608,700.63

1． Capital Reserves Transferred into Capital (or Share Capital)

2． Surplus Reserves Transferred into Capital (or Share Capital)

3． Surplus Reserves Covering Losses

4． Carry-forward retained earnings of the variation of the defined benefit plan

5． Other Carry-forward Retained

2,608,700.63

2,608,700.63

Earnings of the Comprehensive Income
6. Others
(V) Special Reserves
1． Withdrawal in this period
2． Used in This Period
(VI) Others					-1,738,684,099.60							-1,738,684,099.60
IV. Balance at the End of This Period	3,294,468,990.00				6,881,563,679.88	746,699,863.45			1,647,234,495.00	24,448,835,337.15		35,525,402,638.58

III. Basic Information about the CompanyZhejiang Dahua Technology Co., Ltd. (hereinafter referred to as "Company" or "the Company") was incorporatedunder the official approval document No. 18 [2002] issued by Zhejiang Provincial People's Government Work LeadingGroup for Enterprise Listing in June 2002, a stock corporation established on the basis of overall change of the formerHangzhou Dahua Information Technology Co., Ltd. It was co-founded by five natural persons, including Fu Liquan,Chen Ailing, Zhu Jiangming, Liu Yunzhen and Chen Jianfeng.On April 22, 2008, the Company issued 16.8 million shares of common stock in RMB to the general public for the firsttime under the approval document No. 573 [2008] Securities Regulatory Issuance, issued by China SecuritiesRegulatory Commission ("CSRC"). It was listed on Shenzhen Stock Exchange on May 20, 2008 with a registeredcapital of RMB 66.8 million and the change registration filed with Administration for Industry and Commerce wascompleted on May 23, 2008. The Company's unified social credit code is 91330000727215176K. The Company fallswithin the intelligent Internet of Things industry.As of December 31, 2024, the Company has issued a total of 3,295,629,733 shares, with a registered capital of RMB3,295,629,733.00 The registered address is No. 1187, Bin'an Road, Binjiang District, Hangzhou, and the headquartersaddress is No. 1399, Binxing Road, Binjiang District, Hangzhou.The main business activities of the Company are: research and development, production, and sales of AIoT products,and provision of video-centric AIoT solutions and operational services.The actual controllers of the Company are Fu Liquan and Chen Ailing.This financial statement has been approved by the Company's Board of Directors on March 28, 2025.IV. Basis for Preparing the Financial Statement

1. Basis for the preparation

The Company prepares the financial statement, as a going concern, based on transactions and matters that haveactually occurred, in accordance with the Accounting Standards for Business Enterprises - Basic Standards issued bythe Ministry of Finance and all specific accounting standards, application guidelines for accounting standards forbusiness enterprises, explanations on the accounting standards for business enterprises and other related regulations(hereinafter referred to as "Accounting Standards for Business Enterprises" collectively), and the disclosure provisionsin the Preparation Rules for Information Disclosures by Companies Offering Securities to the Public No. 15 - GeneralProvisions on Financial Reports issued by the China Securities Regulatory Commission (CSRC).

2. Going concern

This financial statement has been prepared based on the going concern.The Company has the capability to continue as a going concern for at least 12 months as of the end of currentreporting period, without any significant item affecting the capability for continuing as a going concern.

V. Significant Accounting Polices and Accounting EstimatesThe Company follows the principle of materiality when preparing and disclosing this financial statement anddetermines the importance of the disclosed matters in terms of both nature and amount based on actualcircumstances.Notes to specific accounting policies and accounting estimates:

The following disclosures cover the specific accounting policies and accounting estimates formulated by the Companyaccording to the characteristics of its production and operation.

1. Statement on compliance with Accounting Standards for Business Enterprises

This financial statement is in compliance with the requirements in the Accounting Standards for Business Enterprisespromulgated by the Ministry of Finance and presents truly and completely the financial position of the parent companyand the merged companies as of December 31, 2024 and the operating results and cash flows of the parent companyand the merged companies for the year 2024.

2. Accounting period

The fiscal year of the Company is from January 1 to December 31 of each calendar year.

3. Operating cycle

The Company's operating cycle is 12 months.

4. Functional currency

For the domestic operating entities of the Company and its overseas operating entity Dahua Technology (HK) Limited,the functional currency is Renminbi ("RMB"). The other overseas operating entities take the appropriate currency asthe functional currency on the basis of the currency in the major economic environment in which they operate. Thisfinancial statement is presented in RMB.

5. Determination Method and Selection Basis of Importance Standard?Applicable □ Not applicable

Item	Importance standards
Accounts receivable with significant single provision for bad debt reserves	Individual accruals of 0.5% of total assets at the end of the period
Significant amount of recovered or reversed bad debt provision of accounts receivable in this period	Bad debts recovered or reversed of the individual receivables in the period in excess of 0.5% of the total assets at the end of the period
Write-off of important accounts receivable	Write-off of individual receivables in excess of 0.5 per cent of total assets at the end of the period
Important Projects under Construction	Project investment budget in excess of 0.5% of total assets
Significant prepayments aged over 1 year	Prepayments over 1 year in excess of 0.1% of total assets
Significant accounts payable aged over 1 year	Payables over 1 year in excess of 0.5% of total assets

Other significant payable aged over 1 year	Receivables over 1 year in excess of 0.5% of total assets
Significant contractual liabilities over 1 year	Contractual liabilities over 1 year in excess of 0.5% of total assets
Cash Flow from Significant Investment Activities	Projects with cash flow exceeding 5% of total assets
Significant overseas operating entities	Overseas operating entities with one of their total assets/total revenues/total profits exceeding 15% of the Group's
Important non-wholly owned subsidiaries	Non-wholly owned subsidiaries with one of their total assets/total revenues/total profits exceeding 15% of the Group's
Important joint ventures or associates	Income from investments in joint ventures or associates exceeding 10% of the latest audited net profit of the listed company

6. The accounting treatment of business combinations involving enterprises under commoncontrol and business combinations not involving enterprises under common control

Business combinations under the same control: The assets and liabilities acquired by the merging party in a businesscombination (including goodwill incurred in the acquisition of the merged party by the ultimate controlling party) shallbe measured at the book value of the assets and liabilities of the merged party in the consolidated financial statementof the ultimate controlling party on the date of combination. The difference between the book value of the net assetsobtained and the book value of the consideration paid for the combination (or total nominal value of the issued shares)is adjusted to capital premium in capital reserve. Adjustments shall be made to retained earnings in the event that theshare premiums in the capital reserves are not sufficient for write-down.Business combinations not involving enterprises under common control: The cost of combination is the fair value of theassets paid, the liabilities incurred or assumed, and the equity securities issued by the acquirer to acquire the controlof the acquiree on the acquisition date. Where the cost of combination is higher than the fair value of the identifiablenet assets acquired from the merging party in business combination, such difference shall be recognized as goodwill;where the cost of combination is less than the fair value of the identifiable net assets acquired from the merging partyin business combination, such difference shall be charged to the profit or loss for the period. The identifiable assets,liabilities and contingent liabilities of the acquiree obtained in the combination that satisfy the recognition criteria shallbe measured by the fair value on the date of acquisition.The fees which are directly related to the business combination shall be recognized as the profit or loss in the periodwhen the costs are incurred; the transaction expenses of issuing equity securities or debt securities for businessmerger shall be initially capitalized for equity securities or debt securities.

7. Judgment Criteria for Control Preparation Method of Consolidated Financial Statements

(1) Judgment criteria for control

The scope of consolidation of the consolidated financial statements is based on controlling interests and includes theCompany and all the subsidiaries. Control means that the Company has the power with respect to the investee toobtain variable returns by engaging in relevant activities of the investee, and has the ability to influence the amount ofits returns by applying its power with respect to the investee.

(2) Preparation method of consolidated financial statements

The Company treats the enterprise group as a single accounting entity and prepares the consolidated financialstatements in accordance with the unified accounting policy to reflect the Group's overall financial position, operatingresults, and cash flow. The influence from the internal transactions between the Company and the subsidiaries orbetween different subsidiaries shall be eliminated. Internal transactions show that impairment loss of relevant assetsshall be recognized as such loss in full. In preparing the consolidated financial statements, where the accountingpolicies and the accounting periods are inconsistent between the Company and subsidiaries, the financial statementsof subsidiaries are adjusted in accordance with the accounting policies and accounting period of the Company.The shares belonging to minority shareholders in owner's equity, the net profit or loss and the comprehensive incomeof the subsidiary of the current period are presented separately under the owners' equity in the consolidated balancesheet, the net profits, and the total comprehensive income in the consolidated income statement respectively. Wherelosses attributable to the minority shareholders of a subsidiary of the current period exceed the minority shareholders'interest entitled in the shareholders' equity of the subsidiary at the beginning of the period, the excess shall be offsetagainst the equity of minority shareholders.

① Acquisition of Subsidiaries or Business

For acquisition of subsidiaries or business due to business combination involving entities under common control duringthe reporting period, the operating results and cash flow of such subsidiaries or business from the beginning to the endof the reporting period when the merger occurs are included in the consolidated income statement; and the openingbalance and comparative figures of the consolidated financial statements should be adjusted simultaneously as if theconsolidated reporting entity has been in existence since the beginning of the control by the ultimate controlling party.In connection with imposing control over the investee under common control due to additional investment and otherreasons, the equity investment held before gaining the control of the combined party is recognized as relevant profit orloss, other comprehensive income and changes in other net assets at the later of the date of acquisition of the originalequity and the date when the combining and the merged parties are under common control, and shall be written downto the opening balance retained earnings or current profit or loss in the comparative reporting period.Additional subsidiaries or business due to business combination involving entities not under common control duringthe reporting period will be included in the consolidated financial statements as of the date of acquisition on the basisof the fair value of the identifiable assets, liabilities or contingent liabilities determined on the date of acquisition.In connection with imposing control over the investee not under common control due to additional investment andother reasons, the equity of acquiree held before acquisition date shall be remeasured at the fair value of such equityon the acquisition date and the difference between fair value and book value shall be recognized as investmentincome in current period. Other comprehensive income that may later be reclassified into profit or loss and changes inother owner's equity accounted by equity method contained in the acquiree's equity held before the acquisition dateshall be transferred to current investment gains on the date of acquisition.

② Disposal of Subsidiaries or Business

a. General Treatment

When losing control of the investee due to partial disposal of the equity investment, or any other reasons, theremaining equity investment is remeasured at fair value at the date in which control is lost. The sum of considerationreceived from disposal of equity investment and the fair value of the remaining equity investment, net of the differencebetween the sum of the Company's previous share of the subsidiary's net assets recorded from the acquisition date orcombination date and the sum of goodwill, is recognized in investment income in the period in which control is lost.Other comprehensive income that may later be reclassified into profit or loss and changes in other owner's equityaccounted by equity method in connection with the equity investment of the original subsidiaries shall be transferred tothe current investment gains when the control is lost.b. Disposal of Subsidiary Achieved by StagesWhen the equity investment of subsidiaries is disposed of through multiple transactions until the control is lost, suchmultiple transactions are generally treated as a package deal if the terms, conditions, and economic impact of thetransactions to dispose of the subsidiary's equity investment satisfy one or more of the following conditions:

?These transactions are achieved at the same time or the mutual effects on each other are considered;?A complete set of commercial results can be achieved with reference to the series of transactions as a whole;?Occurrence of a transaction depends on the occurrence of at least one of the other transactions;?One transaction recognized separately is not economical, but it is economical when considered together with othertransactions.If multiple transactions are recognized as a package deal, these transactions shall be subject to accounting treatmentas a transaction to dispose of the subsidiaries and lose control. The differences between the price on each disposaland disposal of investment on the subsidiary's net assets shall be recognized in other comprehensive income in theconsolidated financial statements, and included in profit or loss for the period when the control is lost.If the transactions are not a package deal, accounting treatment for partial disposal of equity investments of thesubsidiary without losing control shall be applied before control is lost. When the control is lost, general accountingtreatment for disposal of a subsidiary shall be used.

③ Acquisition of Minority Equity of Subsidiaries

The Company shall adjust the share premium in the capital reserve of the consolidated balance sheet with respect toany difference between the long-term equity investment arising from the purchase of minority interest and the netassets attributing to the parent company continuously calculated on the basis of the newly increased share proportionas of the acquisition date or date of combination or, adjust the retained earnings if the share premium in the capitalreserve is insufficient for write-down.

④ Partial Disposal of Equity Investment in Subsidiaries without Losing Control

The difference between the disposal consideration and the share of net assets in the subsidiaries calculated fromdisposal of long-term equity investment as of the date of acquisition or combination date shall be adjusted to share

premium in the capital reserve in the consolidated balance sheet. Adjustments shall be made to retained earnings inthe event that the share premiums in the capital reserves are not sufficient for write-down.

8. Classification of joint venture arrangement and accounting treatment methods for jointoperationJoint venture arrangement is classified into joint operation and joint venture.Joint operation means the joint venture arrangement in which the joint venture parties have the assets and assume theliabilities related to such arrangement.The Company recognizes the following items related to the share of interests in the joint operation:

(1) The assets separately held by the Company and assets jointly held as recognized by the share of the Company;

(2) The liabilities separately assumed by the Company and liabilities jointly assumed as recognized by the share of theCompany;

(3) Income from selling the share of the Company in the output of the joint operation;

(4) Income from joint operation of the sold output as recognized by the share of the Company;

(5) The expenses separately incurred and expenses jointly incurred as recognized by the share of the Company;The Company adopts the equity method for the investment of the joint venture. For details, refer to this sectionFinancial Report - V. Significant Accounting Polices and Accounting Estimates - 20. Long-term equity investment.

9. Recognition criteria of cash and cash equivalents

Cash means the cash on hand and deposits that are available for payment at any time of the Company.Cash equivalents mean the investments held by the Company which are short-term, highly liquid, easy to be convertedinto known amounts of cash and have little risk of value change.

10. Conversion of transactions and financial statements denominated in foreign currencies

(1) Foreign currency transactions

Foreign currency transactions are translated into function currency at the spot exchange rate on the day when thetransactions occurred or the exchange rate determined by a systematic and reasonable method that is similar to thespot exchange rate (hereinafter referred to as the approximate exchange rate of the spot exchange rate).The Balance of foreign currency monetary items shall be translated at the spot exchange rate on the balance sheetdate. The resulting exchange differences are recognized in profit or loss for the current period, except for thosedifferences related to the principal and interest on a specific-purpose borrowing denominated in foreign currency foracquisitions, construction, or production of the qualified assets, which should be included in current profit and loss.

2. Translation of foreign currency financial statements

All assets and liabilities items in balance sheet are translated based on spot exchange rate on the balance sheet date;owners' equity items other than "undistributed profit" are translated at a spot exchange rate when accrued. Revenueand expense items in the income statement are translated at a spot exchange rate at the transaction occurrence dateor the appropriate exchange rate of the spot exchange rate.Cash flows in foreign currencies, as well as cash flows from foreign subsidiaries, are translated at the spot exchangerate on the day when the cash flows occur or the appropriate exchange rate of the spot exchange.For disposal of overseas operation, the translation difference as stated in the foreign currency financial statementsrelating to overseas operation, is accounted for in the profit and loss account in the current period from owners' equityitems.

11. Financial instruments

A financial asset, financial liability or equity instrument is recognized when the Company becomes a party to thefinancial instrument contract.

(1) Classification of the financial instruments

According to the Company's business model for management of the financial assets and the contractual cash flowfeatures of the financial assets, the financial assets, when initially recognized, are classified as: financial assets atamortized cost, financial assets at fair value through other comprehensive income (debt instruments) and financialassets at fair value through profit or loss.The financial assets which satisfy the following conditions, and are not designated as financial assets at fair valuethrough profit or loss will be classified by the Company as financial assets at amortized cost:

① The business model is designed to collect the contractual cash flow;

② The contractual cash flow is only used to pay the principal and the interests based on the outstanding principalamount.The financial assets which satisfy the following conditions, and are not designated as financial assets at fair valuethrough profit or loss will be classified by the Company as the financial assets (equity instruments) at fair value throughother comprehensive income:

① The business model is designed to both collect the contractual cash flow and sell the financial assets;

② The contractual cash flow is only used to pay the principal and the interests based on the outstanding principalamount.For non-trading investments in equity instruments, the Company may, at the time of initial recognition, irrevocablydesignate them as financial assets (equity instruments) at fair value through other comprehensive income. Such

designation is based on the individual investments, and relevant investments fall within the definition of the equityinstrument from the perspective of the issuer.Except for the financial assets at amortized cost, and financial assets at fair value through other comprehensiveincome, all the remaining financial assets are classified as the financial assets at fair value through profit or loss. At thetime of initial recognition, the financial assets which should have been classified as financial assets at amortized costor financial assets at fair value through other comprehensive income can be irrevocably designated by the Companyas financial assets at fair value through profit or loss if the accounting mismatch can be eliminated or significantlyreduced.The financial liabilities, when initially recognized, are classified as: financial liabilities at fair value through profit or lossand financial liabilities at amortized cost.Financial liabilities which meet one of the following conditions will be, when initially measured, designated as financialliabilities at fair value through profit or loss:

① Such designation may be able to eliminate or significantly reduce the accounting mismatch;

② The portfolio of financial liabilities or the portfolio of financial assets and financial liabilities shall be subject tomanagement and performance evaluation on the basis of fair value according to the enterprise risk management orinvestment strategy contained in the formal documentations, and a report shall be made to the key managementpersonnel within the enterprise on this basis;

③ Such financial liabilities shall contain embedded derivatives to be split separately.

(2) Recognition and measurement of financial instruments

① Financial assets at amortized cost

Financial assets at amortized cost include notes receivable, accounts receivable, other receivables, long-termreceivables and creditors investment, which shall be initially measured at fair value, and the relevant transactionexpenses should be initially capitalized; The accounts receivable that do not contain material financing compositionsand those for which the Company decides to not take into account the financing compositions of no more than oneyear shall be initially measured at the contract transaction price.The interest calculated by effective interest method during the holding period is recorded into the current profit andloss.At the time of recovery or disposal, the difference between the price obtained and the book value shall be included inthe current profit or loss.

② Financial assets measured at fair value and whose changes are included in other comprehensive income (debtinstruments)Financial assets measured at fair value and its changes are included in other comprehensive income (debtinstruments) include receivables financing and investments in other creditor's rights. They are initially measured at fair

value, and the relevant transaction expenses should be initially capitalized. These financial assets are subsequentlymeasured at fair value, and the change in fair value, other than the interest, the impairment loss or profit and the profitor loss on foreign exchange, shall be included in other comprehensive income.Upon derecognition, the cumulative profits or losses previously included in other comprehensive income shall beremoved from other comprehensive income and included in the profit or loss for the period.

③ Financial assets measured at fair value and whose changes are included in other comprehensive income (equityinstruments)Financial assets at fair value through other comprehensive income (equity instruments) include investment in otherequity instruments. They are initially measured at fair value, and the transaction expenses shall be initially capitalized.These financial assets are subsequently measured at fair value, and the change in fair value shall be included in othercomprehensive income. The dividends obtained shall be included in the profit or loss for the period.Upon derecognition, the cumulative profits or losses previously included in other comprehensive income shall beremoved from other comprehensive income and included in the carry-forward retained earnings.

④ Financial assets measured at fair value through profit or loss in this period

Financial assets at fair value through profit or loss include trading financial assets, derivative financial assets, andother non-current financial assets. They are initially measured at fair value, and the transaction expenses related tothem are included in the current profit or loss. These financial assets are subsequently measured at fair value, and thechange in fair value shall be included in the profit or loss for the period.

⑤ Financial liabilities at fair value through profit or loss in this period

Financial liabilities at fair value through profit or loss include trading financial liabilities and derivative financial liabilities.They are initially measured at fair value, and the transaction expenses related to them are included in the profit or lossfor the period. These financial liabilities are subsequently measured at fair value, and the change in fair value shall beincluded in the profit or loss for the period.Upon derecognition, the difference between their book value and the consideration paid is included in the profit or lossfor the period.

⑥ Financial liabilities at amortized cost

Financial liabilities at amortized cost include short-term loans, notes payable, accounts payable, other payables, long-term loans, bonds payable, and long-term payables. They are initially measured at fair value, and the transactionexpenses shall be initially capitalized.The interest calculated by effective interest method during the holding period is recorded into the current profit andloss.Upon derecognition, the difference between the consideration paid and the book value of these financial liabilities isincluded in the current profit or loss.

(3) Derecognition and transfer of financial assets

When one of the following conditions is met, financial assets are derecognized by the Company:

① The contractual right to receive cash flows from financial assets is terminated;

② The financial assets have been transferred and nearly all the risks and rewards related to the ownership of thefinancial assets have been transferred to the transferee;

③ The financial assets have been transferred and although the Company neither transfers or retains all the risks andrewards related to the ownership of the financial assets, the Company retains no control of the financial assets;If the Company modifies or renegotiates the contract with the counterparty, which constitutes a substantial modification,the original financial assets will be derecognised and a new financial asset will be recognized according to themodified terms.The financial assets when transferred will not be derecognized if the Company has retained nearly all the risks andrewards related to the ownership of the financial assets.The substance-over-form principle shall be adopted while making judgment on whether the transfer of financial assetssatisfies the above conditions for termination of recognition.The transfer of financial assets can be classified into entire transfer and partial transfer. If the transfer of an entirefinancial asset satisfies the conditions for termination of recognition, the difference between the two amounts belowshall be recorded into profit or loss for the period:

① The book value of the financial asset transferred;

② The consideration received as a result of the transfer, plus the accumulative amount of the change in fair valuepreviously recorded into the owners' equity (in cases where the transferred financial assets are financial assetsmeasured at fair value and whose changes are included in other comprehensive income (debt instruments)).If the partial transfer of financial assets satisfies the conditions for termination of recognition, the overall book value ofthe transferred financial asset shall be apportioned according to their respective relative fair value between therecognition terminated part and the remaining part, and the difference between the two amounts below shall berecorded into profit or loss for the current period:

① The book value of the recognition terminated portion;

② The sum of consideration of the derecognised portion and the corresponding portion of accumulated change in fairvalue previously recorded into owners' equity (in cases where the transferred financial assets are financial assetsmeasured at fair value and whose changes are included in other comprehensive income (debt instruments)).Financial assets will still be recognized if they fail to satisfy the conditions for termination of recognition, with theconsideration received recognized as a financial liability.

(4) Derecognition of financial liabilities

When the current obligation under a financial liability is completely or partially discharged, the recognition of the wholeor relevant portion of the liability is terminated; an agreement is entered between the Company and a creditor toreplace the original financial liabilities with new financial liabilities with substantially different terms, terminate therecognition of the original financial liabilities as well as recognize the new financial liabilities.If all or part of the contract terms of the original financial liabilities are substantially amended, the recognition of theoriginal financial liabilities will be terminated in full or in part, and the financial liabilities whose terms have beenamended shall be recognized as a new financial liability.When recognition of financial liabilities is terminated in full or in part, the difference between the book value of thefinancial liabilities terminated and the consideration paid (including transferred non-cash assets or new financial liability)is recognized in profit or loss for the current period.Where the Company repurchases part of its financial liabilities, the book value of such financial liabilities will beallocated according to the relative fair value between the continued recognized part and terminated part on therepurchase date. The difference between the book value of the financial liabilities terminated and the considerationpaid (including transferred non-cash assets or new financial liability) is recognized in profit or loss for the current period.

(5) Method of determining the fair values of financial assets and liabilities

The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the activemarket. The fair value of a financial instrument that is not traded in an active market is determined by using a valuationtechnique. The Company uses the valuation technique when it is applicable under current conditions and there areenough available data and other information to support and the technique should maximize the use of relevantobservable. It chooses the inputs which are consistent with the asset or liability's characteristics considered by marketparticipants in the transaction of the relevant asset or liability and makes the maximum use of relevant observableinputs. Unobservable inputs are used under the circumstance that the relevant observable inputs cannot be obtainedor not feasible.

(6) Test method and accounting treatment for impairment of financial assets

The Company uses impairment accounting for the financial assets at amortized cost, the financial assets at fair valuethrough other comprehensive income (debt instruments), and the financial guarantee contracts, on the basis of theexpected credit loss.Taking into the reasonable and well-grounded information including past matters, current situation and prediction offuture economic conditions, the Company calculates the possibly weighted amount of the present value of thedifference between the cash flows receivable under the contract and the cash flows expected to be received, takingthe risk of default as the weight, and recognizes the expected credit loss.The Company will always measure the loss provision for the accounts receivable and contract assets arising from thetransactions regulated by “Accounting Standard for Business Enterprises No.14 — Revenue”, whether they containmaterial financing compositions or not, by the amount of the expected credit loss throughout the duration.

For the lease receivables resulting from transactions governed by “Accounting Standard for Business EnterprisesNo.21 — Leasing”, the Company will always measure the loss provision for the accounts receivable, by the amount ofthe expected credit loss throughout the duration.The Company assesses the changes in credit risk of other relevant financial instruments since initial recognition ateach balance sheet date.By comparing the risk of default of financial instruments on the balance sheet date with the risk of default on the initialrecognition date, the Company determines the relative change in the risk of default over the expected life of financialinstruments to assess whether the credit risk of financial instruments has increased significantly since initialrecognition. If the financial instrument becomes overdue for more than 30 days, the Company believes that the creditrisk of this financial instrument has been significantly increased, unless there are concrete evidence that the credit riskof this financial instrument has not been significantly increased upon initial recognition.If the financial instrument carries low credit risk at the balance sheet date, the Company believes that the credit risk ofthis financial instrument is not significantly increased upon initial recognition.If the credit risk of this financial instrument has been significantly increased upon initial recognition, the Companymeasures its loss provision in accordance with the amount equivalent to the expected credit loss of the financialinstrument throughout the duration; if the credit risk of this financial instrument is not significantly increased upon initialrecognition, the Company will measure the loss provision of this financial instrument by the amount of its expectedcredit loss in the 12 months to come. The increased or reversed amount of the loss provision resulting therefrom isincluded in the current profit or loss as the impairment loss or profit. For financial assets (debt instruments) at fair valuethrough other comprehensive income, the loss provision is recognized in other comprehensive income, and theimpairment loss or gain is included in current profits or losses, without reduction in the book value of the financial assetas stated in the balance sheet.If there are objective evidences showing that a certain receivable has been subject to credit impairment, the Companywill accrue impairment provision for the receivable on the individual asset basis.Except for the above-mentioned accounts receivable for which an individual provision for bad debts has been made,the Company divides other financial instruments into several combinations based on their credit risk characteristics,and determines expected credit losses on the basis of the combinations. The Company's combination categories anddetermination basis of expected credit losses for notes receivable, accounts receivable, accounts receivable financing,other receivables, contract assets (including contract assets presented in other non-current assets) and long-termreceivables (including long-term receivables due within one year presented in non-current assets due within one year)are as follows:

Item	Combination Categories	Determination Basis
Notes receivable	Type of Notes	The expected credit loss is calculated by default risk exposure and the expected credit loss rate for the entire extension, based on historical credit loss experience, in combination with current conditions and predictions of future economic conditions.
Receivables Financing
Accounts receivable, other receivables	Aging combination	The expected credit loss is calculated by default risk exposure and the expected credit loss rate for the entire extension, based on historical credit loss

		experience, in combination with current conditions and predictions of future economic conditions.
Accounts receivable, other receivables	Affiliated combined	The expected credit loss is calculated by default risk exposure and the expected credit loss rate for the entire extension, based on historical credit loss experience, in combination with current conditions and predictions of future economic conditions.
Contract assets (including contract assets presented in other non-current assets)	Nature of the funds	The expected credit loss is calculated by default risk exposure and the expected credit loss rate for the entire extension, based on historical credit loss experience, in combination with current conditions and predictions of future economic conditions.
Long-term receivables (including long-term receivables due within one year presented in non-current assets due within one year)	Nature of the funds	The expected credit loss is calculated by default risk exposure and the expected credit loss rate for the entire extension, based on historical credit loss experience, in combination with current conditions and predictions of future economic conditions.

If the Company no longer reasonably expects that the cash flow of the financial asset contract can be recovered as awhole or in part, the book balance of such financial assets will be directly reduced.

12. Notes Receivable

Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financialinstruments

13. Accounts Receivable

Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financialinstruments

14. Receivables Financing

Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financialinstruments

15. Other Receivables

Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financialinstruments

16. Contract Assets

(1) Recognition method and criteria of contract assets

The Company lists contract assets or contract liabilities in the balance sheet according to the relationship betweenperformance obligations and customer payments. Considerations that the Company has the right to collect forcommodities transferred or services provided to customers (and such right depends on other factors than passing oftime) are presented as contract assets. The contract assets and contract liabilities under the same contract arepresented in net amount. The Company separately presents the right possessed to collect consideration fromcustomers unconditionally (only depending on the passing of time) as accounts receivable.

(2) Determination method and accounting treatment method for the expected credit loss of contract assetsFor details, refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.Financial instruments

17. Inventory

(1) Category of inventory

Inventories are classified as raw materials, work-in-progress, commodity stocks, contract performance cost, andmaterials commissioned for processing.The inventories are initially measured at cost, which comprises the cost of purchase, cost of conversion and otherexpenditure incurred in bringing the inventories to their present location and condition.

(2) Determination of cost

Cost of inventories is determined using the weighted average method.

(3) Basis for the determination of net realizable value and different type of inventoriesAt the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the cost ofinventories is higher than their net realizable value, reserve for stock depreciation shall be accrued. The net realizablevalue means the amount after deducting the estimated cost of completion, estimated selling expenses and relevanttaxes from the estimated selling price of inventories in the daily activities.Net realizable value of held-for-sale commodity stocks, such as finished goods, goods-in-stock, and held-for-sale rawmaterials, during the normal course of production and operation, shall be determined by their estimated sales less therelated selling expenses and taxes; the net realizable value of material inventories, which need to be processed,during the normal course of production and operation, shall be determined by the amount after deducting theestimated cost of completion, estimated selling expenses and relevant taxes from the estimated selling price offinished goods; the net realizable value of inventories held for execution of sales contracts or labor contracts shall becalculated on the ground of the contracted price. If an enterprise holds more inventories than the quantity stipulated inthe sales contract, the net realizable value of the exceeding part shall be calculated on the ground of general sellingprice.If the Company accrues the provision for impairment of inventories on a combination basis, the combination categoriesand determination basis as well as the basis for determination of the net realizable value of different types of inventoryare as follows:

Combination Categories of Inventories	Determination Basis for Combination	Basis for the Determination of Net Realizable Value
Raw materials	Categories of Inventories	Estimated selling price of inventories - Estimated costs until completion - Estimated selling expenses - Related taxes
Work-in-progress	Categories of Inventories
Finished goods	Categories of Inventories
Contract Performance Costs	Categories of Inventories

If the factors influencing the write-down of the inventory value have disappeared, resulting in higher net realizablevalue of inventories than their book value after the reserve for stock depreciation is accrued, a reversal shall apply inthe amount of reserve for stock depreciation previously accrued, and the reserved amount shall be included in thecurrent profit or loss.

(4) Inventory system

The perpetual inventory system is adopted.

(5) Amortization of low-value consumables and packaging materials

① Low-value consumables are amortized using the immediate write-off method;

② Packaging materials are amortized using the immediate write-off method.

18. Holding assets for sale

(1) Recognition criteria and accounting treatment

An asset of which the book value is recovered mainly through sale (including exchange of non-monetary asset of acommercial nature) rather than non-continuous use of a non-current asset or disposal group is classified as a holdingasset for sale.A non-current asset or disposed group is classified by the Company as holding for sale if it meets the following criteriaat the same time:

① Immediate sale could be made under the current circumstances in accordance with the convention of selling suchkind of assets or disposal groups in similar transactions;

② Selling is highly likely to occur, i.e., the Company has made a resolution on a sales plan and obtained confirmedpurchase commitments, and the sales is predicted to be completed within 1 year. If required by relevant provisions thatselling shall only be made after approved by the relevant competent authority or supervision department of theCompany, such approval should have been obtained.If the book value of the non-current assets (excluding financial assets, deferred income tax assets, and assets toconstitute payroll payable) or disposal groups classified as holding for-sale assets is higher than the net amount afterdeducting the selling expenses from the book value, the book value will be written down to the net amount afterdeducting the selling expenses from the fair value, and the amount written down will be recognized as the impairmentloss of assets and included in the current profit or loss. At the same time, the impairment provision for holding for-saleassets will be accrued.

(2) Recognition criteria and presentation of discontinued operations

Termination of business is a separately distinguishable constituent part that satisfies one of the following conditionsand that has been disposed of or classified by the Company as held for sale:

① This constituent part represents an independent primary business or a separate principal operating area;

② This constituent part is part of an associated plan to dispose an independent primary business or a separateprincipal operating area;

③ This constituent part is a subsidiary acquired for resale.

The profit or loss from going concern and the profit or loss from discontinued operation will be separately presented inthe income statement. The operating profit or loss and the profit or loss from disposal, including impairment loss andreversed amount from discontinued operation, will be presented as the profit or loss from discontinued operation. Forthe discontinued operation presented in the current period, the Company will present the information previouslypresented as the profit or loss from going concern as the profit or loss from discontinued operation during thecomparable accounting period.

19. Long-term Receivables

Refer to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financialinstruments

20. Long-term Equity Investments

(1) Joint control or significant influence criterion

Joint control is the contractually agreed sharing of control of an arrangement, and exists only when requiring theunanimous consent of the parties sharing control before making decisions about the relevant activities of thearrangement. The Company together with the other joint venture parties can jointly control over the investee and areentitled to the right of the net assets of the investee, as the investee is joint venture of the Company.Significant influence refers to the power to participate in making decisions on the financial and operating policies of anenterprise, but not the power to control, or jointly control, the formulation of such policies with other parties. Where theCompany can exercise significant influence over the investee, the investee is an associate of the Company.

(2) Determination of initial investment cost

① Long-term equity investments formed through business combination

For the long-term equity investment in the subsidiaries arising from business combination involving entities undercommon control, the initial investment cost of the long-term equity investment is the share with reference to the bookvalue of the shareholders' equity of the merged party in the consolidated financial statements of the ultimate controllingparty on the date of combination. The share premium in the capital reserve shall be adjusted according to thedifference between the initial investment cost of the long-term equity investment and the carrying amount of theconsideration paid; if the share premium in the capital reserve is insufficient to offset, the retained earnings shall beadjusted. In connection with imposing control over the investee under common control as a result of additional

investment and other reasons, the share premium shall be adjusted according to the difference between the initialinvestment cost of the long-term equity investment as recognized by the above principle and the carrying value of thelong-term equity investment before combination and the sum of carrying value of newly paid consideration foradditional shares acquired on the date of combination. If the share premium is insufficient for write-down, the retainedearnings shall be offset.For the long-term equity investment in the subsidiaries arising from business combinations involving entities not undercommon control, the cost of the combination ascertained on the date of acquisition shall be taken as the initialinvestment cost of the long-term equity investment. In connection with imposing control over the investee not undercommon control as a result of additional investment and other reasons, the initial investment cost shall be the sum ofthe book value of the equity investment originally held and the newly increased initial investment cost.

② Long-term equity investments acquired by the means other than business combinationThe initial cost of a long-term equity investment obtained by cash payment shall be the purchase costs actually paid.The initial cost of investment of a long-term equity investment obtained by means of issuance of equity securities shallbe the fair value of the equity securities issued.

(3) Subsequent measurement and recognition of profit or loss

① Long-term equity investment calculated by cost method

Long-term equity investment in subsidiaries of the Company is calculated by cost method, unless the investmentmeets the conditions for holding for sale. except for the actual consideration paid for the acquisition of investment orthe declared but not yet distributed cash dividends or profits which are included in the consideration, investment gainsare recognized as the Company' shares of the cash dividends or profits declared by the investee.

② Long-term equity investment accounted for by equity method

Long-term equity investments of associates and jointly controlled entities are calculated using equity method. Wherethe initial investment cost of the long-term equity investment exceeds the investor's interest in the fair value of theinvestee's identifiable net assets at the acquisition date, no adjustment shall be made to the initial investment cost;where the initial investment cost is less than the investor's interest in the fair value of the investee's identifiable netassets at the acquisition date, the difference shall be charged to the profit or loss for the current period. At the sametime, the cost of the long-term equity investment shall be adjusted.The Company recognizes the investment income and other comprehensive income according to the shares of netprofit or loss and other comprehensive income realized by the investee which it shall be entitled or shared respectively,and simultaneously makes adjustment to the book value of long-term equity investment; The book value of long-termequity investment shall be reduced by attributable share of the profit or cash dividends for distribution declared by theinvestee. In relation to other changes in the owner's equity except for net profits and losses, other comprehensiveincome and profit distributions of the investee (hereinafter referred to as “Changes in Other Owner's Equity”), the bookvalue of the long-term equity investment shall be adjusted and included in owner's equity.

When determining the amount of proportion of net profit or loss, other comprehensive income and other changes in theowner's equity in the investee which it entitles, the fair value of each identifiable net assets of the investee at the timewhen the investment is obtained shall be used as basis, and according to the accounting policies and accountingperiod of the Company, adjustment shall be made to the net profit and other comprehensive income of the investee.The unrealized profit or loss resulting from transactions between the Company and its associates or joint venture shallbe eliminated in proportion to the investor's equity interest of investee, based on which investment income or loss shallbe recognized, except for those assets invested or sold constituting a business. Any losses resulting from transactions,which are attributable to impairment of assets, shall be fully recognized.The net loss incurred by the Company to the joint ventures or affiliates is capped when the carrying amount of long-term equity investment and the long-term equity that substantially constitutes the net investment in the joint ventures oraffiliates have been written down to zero, except to the extent that the Company has an additional loss obligation. Ifthe joint ventures or affiliates later realize net profit, the Company will resume recognition of the income share after theincome share makes up the unrecognized loss share.

③ Disposal of long-term equity investments

For disposal of long-term equity investment, the difference between the book value and the consideration actuallyreceived shall be included in the current profit or loss.If the remaining equity is still subject to the equity method in partial disposal of the long-term equity investment underthe equity method, other comprehensive income recognized in the original equity investment shall be carried forwardat the appropriate proportion on the same basis used by the investee for direct disposal of relevant assets or liabilities,and other changes in the owner's equity shall be carried forward into the current profit or loss at the appropriateproportion.When losing the control or material influence over the investee due to disposal of the equity investment and otherreasons, other comprehensive income recognized in the original equity investment due to adoption of the equitymethod shall be subject to accounting treatment on the same basis used by the investee for direct disposal of relevantassets or liabilities when ceasing to use the equity method, and other changes in the owner's equity shall be carriedforward into the current profit or loss in full when ceasing to use the equity method.If the control over the investee is lost due to partial disposal of the equity investment and other reasons, and if theremaining equities can exercise common control or material influence over the investee in preparing the individualfinancial statements, the remaining equities shall be accounted by the equity method and shall be adjusted as if suchremaining equities have been accounted for under the equity method since they are obtained. Other comprehensiveincome recognized before the control over the investee is obtained shall be carried forward pro rata on the same basisused by the investee for direct disposal of relevant assets or liabilities, and other changes in the owner's equityrecognized under the equity method shall be carried forward into the current profit or loss pro rata. The remainingequities which cannot exercise common control or material influence over the investee shall be recognized as financialassets, and the difference between their fair value and book value on the date when the control is lost shall beincluded in the current profit or loss.

Other comprehensive income recognized and other changes in the owner's equity recognized before the control overthe investee is obtained shall be carried forward in full. If the disposal of the equity investment in the subsidiariesthrough multiple transactions until loss of the control is a package deal, each transaction shall be subject to accountingtreatment as a transaction to dispose of the equity investment in the subsidiaries and to lose the control; the differencebetween the price for each disposal before loss of the control and the book value of the long-term equity investment ofthe equity disposed of shall be first recognized as other comprehensive income in the individual financial statementsand shall then be carried forward to the profit or loss for the very period when the control is lost. If it is not a packagedeal, each transaction shall be subject to accounting treatment.

21. Investment Properties

Investment property refers to the real estate held to generate rental income or capital appreciation, or both, includingleased land use rights, land use rights held for transfer after appreciation, and leased buildings (including buildings thatare leased after completion of self-construction or development activities and buildings in construction or developmentthat are used for rental in the future).The Company adopts the cost mode to measure the existing investment property. The subsequent expenditure relatedto the investment property will be included in the cost of the investment property when relevant economic benefits arelikely to flow in and costs can be measured reliably, or otherwise be included in the current profit or loss whenoccurred. Investment property measured at cost - buildings held for leasing shall adopt the same depreciation policyfor fixed assets of the company, land use rights held for leasing shall adopt the same amortization policy for theintangible assets.

22. Fixed Assets

(1) Conditions of Recognition

Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental toothers, or for administrative purposes; and have a service life of more than one fiscal year. Fixed asset is recognizedwhen it meets the following conditions: ① It is probable that the economic benefits associated with the fixed asset willflow to the enterprise; ② Its cost can be reliably measured.The fixed assets are initially measured at cost (with the impact of predicted discard expense taken into account).The subsequent expenditure related to the fixed assets will be included in the cost of the fixed assets when theeconomic benefits in connection therewith are likely to flow in and costs can be measured reliably; the book value ofthe replaced part will be derecognized; all other subsequent expenditure will be included in the current profit or losswhen occurred.

(2) Methods for depreciation

Fixed assets are depreciated by categories using the straight-line method, and the annual depreciation rates aredetermined by categories based upon their estimated useful lives and their estimated residual values. Where the partsof a fixed asset have different useful lives or cause economic benefits for the enterprise in different ways, differentdepreciation rates or depreciation methods shall apply, and each part is depreciated separately.

The depreciation methods, depreciation periods, residual ratios, and annual depreciation rates of various types of fixedassets are as follows:

Category	Depreciation method	Useful lives of depreciation	Residual Ratio	Annual depreciation rate
Housing and building	Straight-line method	20	5%	4.75%
Machinery and equipment	Straight-line method	5-10	5%	19.00%-9.50%
Means of transport	Straight-line method	4-8	5%	23.75%-11.88%
Electronic and other equipment	Straight-line method	3-5	5%	31.67%-19.00%

(3) Disposal of Fixed Assets

When fixed assets are disposed of or when no economic benefits can be expected through use or disposal thereof,such fixed assets will be derecognized. The income from disposal of the fixed assets through sale, transfer, scrappingor damage with the book value thereof and relevant taxes deducted is included in the current profit or loss.

23. Construction in Progress

The projects under construction are measured at the actual cost. The actual cost comprises the building cost,installation cost, borrowing cost qualified for capitalization and other necessary expenditures incurred to bring theprojects under construction to the conditions before they are made ready for the intended use. The projects underconstruction will be converted into fixed assets when they are ready for intended use and will be depreciated from thenext month on. The standards and time points for conversing the Company’s projects under construction into fixedassets are as follows:

Category	The standards and time points for conversing into fixed assets
Housing and building	The completion and fire inspection, and water and electricity supply are completed as well as the conditions for occupancy are met.
Machinery and equipment	The equipment installation and debugging is completed and is ready for use.
Electronic and other equipment	The equipment installation and debugging is completed and is ready for use.

24. Borrowing costs

(1) Criteria for recognition of capitalized borrowing costs

For borrowing costs incurred by the Company that are directly attributable to the acquisition, construction or productionof assets qualified for capitalization, the costs will be capitalized and included in the costs of the related assets. Otherborrowing costs shall be recognized as expense in the period in which they are incurred and included in profit or lossfor the current period.Assets qualified for capitalization are assets (fixed assets, investment property, inventories, etc.) that necessarily takea substantial period of time for acquisition, construction or production to get ready for their intended use or sale.

(2) Capitalization period of borrowing costs

The capitalization period shall refer to the period between the commencement and the cessation of capitalization ofborrowing costs, excluding the period in which capitalization of borrowing costs is temporarily suspended.

Capitalization of borrowing costs begins when the following conditions are satisfied simultaneously:

① Asset expenditures (including cash paid, transferred non-currency assets or expenditure for holding debt liability forthe acquisition, construction or production of assets qualified for capitalization) have been occurred;

② Borrowing costs have been incurred;

③ Acquisition, construction or production necessary to enable the asset to reach its intended state of serviceability ormarketability have commenced.Capitalization of borrowing costs shall be suspended during periods in which the qualifying asset under acquisition andconstruction or production ready for the intended use or sale.

(3) Suspension of capitalization period

Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction orproduction of a qualifying asset is interrupted abnormally, when the interruption is for a continuous period of more than3 months; if the interruption is a necessary step for making the qualifying asset under acquisition and construction orproduction ready for the intended use or sale, the capitalization of the borrowing costs shall continue. The borrowingcosts incurred during such period shall be recognized as profits and losses of the current period. When the acquisitionand construction or production of the asset resumes, the capitalization of borrowing costs commences.

(4) Calculation of capitalization rate and amount of borrowing costs

Specific borrowings for the acquisition, construction or production of assets qualified for capitalization, borrowing costsof the specific borrowings actually incurred in the current period minus the interest income earned on the unusedborrowing loans as a deposit in the bank or as investment income earned from temporary investment will be used todetermine the amount of borrowing costs for capitalization.General borrowings for the acquisition, construction or production of assets qualified for capitalization, the to-be-capitalized amount of interests on the general borrowing shall be calculated and determined by multiplying theweighted average asset disbursement of the part of the accumulative asset disbursements minus the specificallyborrowed loans by the capitalization rate of the general borrowing used. The capitalization rate shall be calculated anddetermined according to the weighted average interest rate of the general borrowing.During the capitalization, the difference between the principal and interest of special borrowings in foreign currencyshall be capitalized and included in the cost of assets qualified for capitalization. The difference between the principaland interest of the borrowings in foreign currency other than the special borrowings in foreign currency shall beincluded in the current profit or loss.

25. Intangible Assets

(1) Service life, determination basis, estimation, amortization method or review procedures

① Valuation method of intangible assets

a. Intangible assets are initially measured at cost upon acquisitionThe costs of an externally purchased intangible asset include the purchase price, relevant taxes and expenses paid,and other expenditures directly attributable to putting the asset into condition for its intended use.b. Subsequent measurementThe service life of intangible assets shall be analyzed and judged upon acquisition.As for intangible assets with a finite service life, they are amortized using the straight-line method over the term inwhich economic benefits are brought to the firm; If the term in which economic benefits are brought to the firm by anintangible asset cannot be estimated, the intangible asset shall be taken as an intangible asset with indefinite servicelife, and shall not be amortized.

② Estimation of service life of the intangible assets with limited service life

Item	Estimated useful lives	Basis
Land use rights	40 or 50 years	Land use certificate
Non-patented technology	5 to 10 years	Expected benefited period
Software	2 to 5 years	Expected benefited period
Trademark rights	6 years	Expected benefited period
Software copyright	10 years	Expected benefited period

For an intangible asset with a finite service life, review on its service life and amortization method is performed at theend of each year.Upon review, service life and amortization method for the intangible assets are the same with the previous estimate atthe end of this period.

③ The basis for the judgment of intangible assets with uncertain service life and the procedure for reviewing theirservice lifeAs at the balance sheet date, the Company has no intangible assets with uncertain service life.

(2) The scope of R&D expenditure collection and related accounting treatment methods.

① The scope of R&D expenditure collection

Expenditures incurred by the Company in research and development include the compensation of the employeesengaged in research and development activities, consumable materials, depreciation and amortization expenses, andother related expenditures.

② Specific criteria for the division of research phase and development phase

The expenses for internal research and development projects of the Company are divided into expenses in theresearch phase and expenses in the development phase.

Research phase: Scheduled innovative investigations and research activities to obtain and understand scientific ortechnological knowledge.Development phase: Apply the research outcomes or other knowledge to a plan or design prior to a commercialproduction or use in order to produce new or essentially-improved materials, devices, products, etc.

③ Specific condition for capitalizing expenditure during the development phase

Expenses in the research phase are recorded into the profits and losses for the current period when they occur. Theexpenses in the development phase are recognized as intangible assets if the following conditions are fulfilled, and areincluded in the current profit or loss if following conditions are not fulfilled:

a. Complete such intangible asset to make it technically feasible for use or for sale;b. There is intention to complete the intangible asset for use or sale;c. The ways in which intangible asset generates economic benefits, including there is evidence that the productsproduced using the intangible asset has a market or the intangible asset itself has a market; if the intangible asset isfor internal use, there is evidence that there exists usage for the intangible asset;d. There is sufficient support in terms of technology, financial resources and other resources in order to complete thedevelopment of the intangible asset, and there is capability to use or sell the intangible asset;e. The expenses attributable to the development stage of the intangible asset can be measured reliably.If the expenses in the research phase and expenses in the development phase cannot be distinguished, all theexpenses incurred for R&D are included in the current profit or loss.

26. Impairment of long-term assets

Long-term assets, such as long-term equity investment, investment properties that are measured at cost, fixed assets,construction in progress, intangible assets with limited service life and oil and gas assets are tested for impairment ifthere is any indication that an asset may be impaired at the balance sheet date. If the result of the impairment testindicates that the recoverable amount of the asset is less than its book value, a provision for impairment and animpairment loss are recognized for the amount by which the asset's book value exceeds its recoverable amount. Therecoverable amount is the higher of an asset's fair value less costs to sell and the present value of the future cashflows expected to be derived from the asset. Provision for asset impairment is determined and recognized on theindividual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverableamount of a group of assets to which the asset belongs to is determined. A group of assets is the smallest group ofassets that is able to generate cash inflows independently.For the goodwill arising from business combination, intangible assets with uncertain service life, and intangible assetswhich are not ready for intended use, impairment test shall be conducted at least at the end of each year, regardlessof whether there are signs of impairment or not.

When the Company carry out impairment test to goodwill, the Company shall, as of the purchasing day, allocate on areasonable basis the book value of the goodwill formed by merger of enterprises to the relevant asset groups, or ifthere is a difficulty in allocation, to allocate it to the sets of asset groups. Relevant asset groups or the sets of assetgroups mean those can benefit from the synergy of business combination.For the purpose of impairment test on the relevant asset groups or the sets of asset groups containing goodwill, if anyevidence shows that the impairment of asset groups or sets of asset groups related to goodwill is possible, animpairment test will be made first on the asset groups or sets of asset groups not containing goodwill, thus calculatingthe recoverable amount and comparing it with the relevant book value so as to recognize the correspondingimpairment loss. An impairment test will be made on the asset groups or sets of asset groups containing goodwill tocompare the book value of these asset groups or sets of asset groups with the recoverable amount. Where therecoverable amount is lower than the book value, the amount of impairment loss shall set off and be apportioned to thebook value of the goodwill in the asset groups or sets of asset groups, and then set off the book value of other assetspro rata according to the proportion of the book value of other assets other than the goodwill in the asset groups orsets of asset groups.Once the above asset impairment loss is recognized, it will not be reversed in the subsequent accounting periods.

27. Long-term Deferred Expenses

Long-term deferred expenses are expenses which have occurred but will benefit over 1 year and shall be amortizedover the current period and subsequent periods.The amortization period and amortization method of various expenses are:

Item	Amortization method	Amortization period
Improvement expenditure of fixed assets leased by operating lease	Straight-line method	By period of benefit
Renovation Cost	Straight-line method	By period of benefit

28. Contract liabilities

The Company lists contract assets or contract liabilities in the balance sheet according to the relationship betweenperformance obligations and customer payments. The Company lists the obligation to transfer commodities or offerservices to customers for the consideration received or receivable from customers as contract liabilities. The contractassets and contract liabilities under the same contract are presented in net amount.

29. Employee compensation

(1) Accountant treatment of short-term remuneration

During the accounting period when the staff provides service, the Company will recognize the short-term remunerationactually incurred as liabilities, and the liabilities would be charged into current profits and loss or costs of assets.

The Company will pay social insurance and housing funds, and will make provision of trade union funds and staffeducation costs in accordance with the requirements. During the accounting period when the staff provides service,the Company will determine the relevant amount of employee benefits in accordance with the required provision basisand provision ratios.Employee compensation actually incurred by the Company will be included in the current profit or loss or relevantasset costs when actually incurred, in which non-monetary benefits will be measured at the fair value.

(2) Accountant treatment of retirement benefit plan

① Defined contribution plan

The Company will pay basic pension insurance and unemployment insurance in accordance with the relevantprovisions of the local government for the staff. During the accounting period when the staff provides service, theCompany will calculate the amount payable in accordance with the local stipulated basis and proportions which will berecognized as liabilities, and the liabilities would be charged into current profits and loss or costs of assets.

② Defined benefit scheme

The welfare responsibilities generated from defined benefit scheme based on the formula determined by projected unitcredit method would be vested to the service period of the staff and charged into current profits and loss or costs ofassets.

(3) Accountant treatment of termination benefits

For the dismissal welfare provided to employees, the employee compensation liabilities arising from the dismissalwelfare shall be determined at the earliest of the following two, and included in the current profits and losses: (1) Whenthe Company cannot unilaterally withdraw the dismissal welfare provided due to the termination of labor relations planor layoff proposal; (2) When the Company determines the costs or expenses associated with the restructuringinvolving the payment of dismissal welfare.

30. Estimated Liabilities

The Company shall recognize the obligations related to contingencies as estimated liabilities, when all of the followingconditions are satisfied:

(1) The obligation is a present obligation of the Company;

(2) It is probable that an outflow of economic benefits will be required to settle the obligation;

(3) The amount of the obligation can be measured reliably.

Estimated liabilities shall be initially measured at the best estimate of the expenditure required to settle the relatedpresent obligation.

Factors pertaining to a contingency such as risk, uncertainties, and time value of money shall be taken into account asa whole in reaching the best estimate. Where the effect of the time value of money is material, the best estimate shallbe determined by discounting the related future cash outflow.The expenses required have a successive range, in which the possibilities of occurrence of each result are the same,and the best estimate should be determined as the middle value for the range; in other circumstances, the bestestimate will be handled as follows, respectively:

(1) For the contingencies involving a single item, it will be determined according to the amount most likely to occur;

(2) For the contingencies involving several items, it will be determined according to the possible results and therelevant possibilities.Where some or all of the expenditure required to settle an estimated liability is expected to be reimbursed by a thirdparty, the reimbursement is separately recognized as an asset when it is virtually certain that the reimbursement willbe received. The amount recognized for the reimbursement is limited to the book value of the estimated liability.The Company will review the book value of the estimated liabilities on the balance sheet date, and if there areconcrete evidences that such book value cannot reflect the current best estimate, the book value will be adjustedaccording to the current best estimate.

31. Share-based payment

The Company's share-based payment refers to a transaction in which an enterprise determines the liabilities on thebasis of equity instruments granting or bearing for the acquisition of service from its employees or other parties. TheCompany's share-based payment is equity-settled.As to an equity-settled share-based payment in return for services of employees, calculation will be based on the fairvalue of the equity instrument granted to the employees. The share-based payment transactions vested immediatelyafter the date of grant will be included in the relevant cost or expense based on the fair value of the equity instrumenton the date of grant, and the capital reserve will be increased accordingly. For the services within the waiting period orthe share-based payment transactions that may only be vested when the specified performance conditions are metafter the date of grant, the Company will include the services obtained in the current period in relevant cost or expenseand increase the capital reserve at the fair value on the date of grant according to the best estimate of the number ofthe exercisable equity instruments on each balance sheet date in the waiting period.If the terms of the equity-settled share-based payment are amended, the Company shall recognize the servicesreceived at least based on the situation before the amendment was made. In addition, any amendment resulting in theincrease of the fair value of the equity instrument granted or changes that are beneficial to the staff on the amendmentdate, will be recognized as an increase in the service received.If the equity instruments vested are canceled during the waiting period, the Company will take the vested equityinstruments canceled as accelerated exercise, and immediately include the amount to be recognized during thewaiting period in the current profit or loss. At the same time, the capital reserve will be recognized. However, if newequity instruments are vested and they are verified at the vesting date of new equity instrument as alternatives vested

to canceled equity instruments, the treatment on the new equity instrument is in conformity with the modified treatmenton disposal of equity instrument.

32. Income

(1) Accounting policies for revenue recognition and measurement

If the Company performed the obligations in the contract, revenue shall be recognized when the customer acquires theright of control over relevant commodities or services. Acquisition of control over relevant commodities or servicesmeans gaining the ability to direct the use of such commodities or services and obtain nearly all the economic benefitstherefrom.If the contract contains two or more performance obligations, the Company shall apportion the transaction price toeach individual performance obligation on the contract commencement date according to the relative proportion of theindividual selling price of the commodities or services promised by each individual performance obligation. TheCompany measures the revenue according to the transaction price apportioned to each individual performanceobligation.The transaction price refers to the amount of consideration that the Company is expected to be entitled to collect dueto the transfer of commodities or services to customers, excluding the payments collected on behalf of third partiesand the payments expected to be returned to customers. The Company will determine the transaction price accordingto the contract provisions and its past practices, and may take into account the impact from the variable consideration,the major financing components in the contract, the non-cash consideration, the payable customer consideration andother factors when determining the transaction price. The Company shall determine the transaction price containingthe variable consideration according to the amount not exceeding the amount by which the accumulative recognizedrevenue is much more unlikely to be significantly reversed when relevant uncertainties are eliminated. If there aremajor financing components in the contract, the Company shall determine the transaction price according to theamount due assumed to be paid in cash when the customer acquires the control over the commodities or services,and shall amortize the difference between such transaction price and the contract consideration using the effectiveinterest rate method during the contract period.When one of the following conditions is met, it belongs to the performance obligation within a certain period of time, orotherwise it belongs to the performance obligation at a certain point of time:

① The customer acquires and consumes the economic benefits arising from the Company's performance while thecompany performs the contract;

② The customer can control the commodities in progress during the Company's performance;

③ The commodities produced by the Company during the performance possess have irreplaceable usage, and thecompany has the right to collect payment for the performance part accumulated so far during the entire contract period.For the performance obligations performed within a certain period of time, the Company shall recognize the revenueaccording to the performance progress within that period of time, except that the performance progress cannot bereasonably determined. The Company will determine the performance progress through the output or input method by

taking into account the nature of commodities or services. If the performance progress cannot be reasonablyrecognized and the costs incurred are expected to be compensated, the Company will recognize the revenueaccording to the amount of costs incurred until the performance progress can be reasonably recognized.For the performance obligations performed at a certain point of time, the Company will recognize the revenue whenthe customer acquires the right of control over relevant commodities or services. While determining whether thecustomer has acquired the control over the commodities or services, the Company shall take the following intoconsideration:

① The Company has the current collection right for the such commodities or services, that is, the customer has thecurrent payment obligation for such commodities or services;

② The Company has transferred the legal title of such commodities to the customer, that is, the customer already hasthe legal title of such commodities;

③ The Company has transferred the physical commodities to the customer, that is, the customer has possessed thephysical commodities.

④ The Company has transferred the major risks and rewards of the commodity title to the customer, that is, thecustomer has acquired the major risks and rewards of the commodity title.

⑤ The customer has accepted such commodities or services.

The Company determines whether it is a principal or agent when engaging in transactions based on its control overthe goods or services before transferring them to the customer. The Company is a principal and recognizes itsrevenue based on the total amount of consideration received or receivable if it can control the goods or services beforetransferring them to the customer; otherwise, the Company is an agent and recognizes its revenue based on theamount of commissions or fees it expects to be entitled to.

(2) Recognition and measurement methods of specific revenue disclosure by type of business

① The principle for revenue recognition of standard product domestic sales: The Company's standard products aresold to contractors, distributors, and other customers through a combination of direct selling and distribution. That is,the Company signs a sales contract with the customer, and according to the delivery method specified in the salescontract, the Company will deliver the goods to the customer, or the customer will pick up the goods. The Companyrecognizes revenue after the customer receives the goods;

② The principles for confirming revenue from overseas sales of standard products: For domestic companies thatexport directly, the main terms used are FOB and CIF, and sales revenue is recognized after the products havecleared customs for export. If a foreign subsidiary sells the goods abroad, the goods will be sent to the customer or thecustomer will collect the goods according to the delivery method agreed with the customer, and the Company willrecognize revenue after the customers receive the goods;

③Principle for recognizing system-integrated sales revenue: The sales of the system-integrated products of theCompany include providing the supporting services such as plan design, supporting products, installation, debuggingand system trial operation. The sales income will be recognized upon acceptance;

④Principle for recognizing the income from labor services: The income is recognized when the labor service isprovided.

33. Contract costs

The contract costs comprise the contract performance cost and the cost to obtain a contract.The costs incurred by the Company for contract performance which fall outside the scope of the enterprise accountingstandards such as inventories, fixed assets or intangible assets will be identified as an asset of the contractperformance costs upon satisfying all of the following conditions:

1. The costs are directly related to one existing contract or one contract that is expected to be obtained;

(2) The costs enrich the Company's resources for future contract performance;

(3) The costs are estimated to be recovered.

The incremental costs which are incurred by the Company to obtain the contract and are expected to be recovered willbe identified as an asset of the costs to obtain a contract.The assets related to the contract costs will be amortized on the same basis for recognition of the income fromcommodities or services related to the assets; but if the amortization period of the costs to obtain the contract is nomore than 1 year, the Company will include such costs in the current profit or loss once occurred.In case that the book value of assets related to contract costs is higher than the difference between the two itemsbelow, the Company will accrue the impairment provision for the extra part, and recognize that part as impairment loss:

(1) Estimated residual consideration to be obtained from transfer of commodities or services related to the assets;

(2) Estimated costs incurred from transfer of relevant commodities or services.

If the factors for impairment in the previous periods are subsequently changed, making the aforesaid difference higherthan the book value of the assets, the Company will reverse the accrued impairment provision and include it in thecurrent profit or loss, provided that the book value of the reversed assets does not exceed the book value of the assetswithout impairment provision accrued on such date of reversal.

34. Government subsidies

(1) Type

Government grants are monetary assets and non-monetary assets acquired by the Company from the governmentfree of charge. Government grants are classified into government grants related to assets and government grantsrelated to revenue.Government grants related to assets refer to government grants acquired by the Company for the purpose ofpurchasing or constructing or otherwise forming long-term assets. Government grants related to revenue refer to thegovernment grants other than those related to assets.

(2) Confirmation of time point

Government subsidies are recognized when the Company is able to meet the conditions attached to them and is ableto receive them.

(3) Accounting treatment

Government grants related to assets shall write off the book value of relevant assets or be recognized as deferredincome. When recognized as deferred income, the government grant related to assets will be period by period creditedto the profits and losses of the current period in a reasonable and systematic manner within the service life of relevantassets (those related to the Company's daily activities shall be recognized as other income; those unrelated to theCompany's daily activities shall be recognized as non-operating revenue).The revenue-related government grants shall be recognized as deferred income if they are used to compensaterelevant expenses or losses in subsequent periods, and they shall be included in profit and loss of the current period(those related to Company's routine activities shall be included in other income; those unrelated to the Company'sroutine activities shall be included in non-operating revenue) or used to offset relevant expenses or losses during therecognition of related expenses or losses; the grants used to compensate related expenses or losses incurred shall beincluded in profit and loss of the current period (those related to Company's routine activities shall be included in otherincome; those unrelated to the Company's routine activities shall be included in non-operating revenue) or used tooffset relevant expenses or losses.The policy-oriented concessional loan discount interests obtained by the Company will be subject to accountingtreatment in the following two circumstances:

① Where the finance allocates the discount interest funds to the lending bank, and the lending bank provides loans tothe Company at the policy preferential interest rate, the Company will take the actually received loan amount as theentry value of the loan, and the relevant borrowing costs shall be calculated according to the loan principal and thepolicy preferential interest rate;

② If the finance directly allocates the discount interest funds to the Company, the Company shall set off thecorresponding discount interest against the relevant borrowing costs.

35. Deferred Income Tax Assets/Deferred Income Tax Liabilities

Income tax comprises current income tax and deferred income tax. Except for the income taxes arising from thebusiness combination and the transactions or matters that are directly included in the owner's equity (including othercomprehensive income), the Company will include the current income tax and deferred income tax into the currentprofit or loss.Deferred income tax assets and deferred income tax liabilities will be calculated and recognized according to thedifference (temporary difference) between the tax basis and the book value of assets and liabilities.Deferred income tax assets are recognized to the extent that it is probable that future taxable income will be availableagainst which deductible temporary differences can be utilized. For deductible losses and tax credits that can bereversed in the future period, deferred income tax assets shall be recognized to the extent that it is probable thattaxable income will be available in the future to offset the deductible losses and tax credits.

Save as the exceptions, deferred income tax liabilities shall be recognized for the taxable temporary difference.The exceptions where deferred income tax assets and liabilities are not recognized include:

(1) Initial recognition of the goodwill;

(2) Transactions or events that are neither business combinations nor affect profit and taxable income (or deductibleloss) when occurring.Taxable temporary difference related to investment in the subsidiaries, affiliates and joint ventures will be recognizedas deferred income tax liabilities, unless the Company can control the time to reverse such temporary difference andsuch temporary difference is much more unlikely to be reversed in the predictable future. Deductible temporarydifference related to investment in the subsidiaries, affiliates and joint ventures will be recognized as deferred incometax assets when such temporary difference is much more likely to be reversed in the predictable future and is muchmore likely to be obtained to deduct the taxable income of the deductible temporary difference.On the balance sheet date, the deferred income tax assets and the deferred income tax liabilities will be measured atthe tax rate applicable during the recovery of relevant assets or payment of relevant liabilities as expected according tothe provisions of the tax law.On the balance sheet date, the Company will review the book value of the deferred income tax assets. If no sufficienttaxable income is likely to be obtained to offset the benefits of deferred income tax assets in the future, the book valueof deferred income tax assets shall be written down. The amount written down shall be reversed when it is likely toobtain sufficient taxable income.After granted the legal rights of net settlement and with the intention to use net settlement or obtain assets and repaydebt at the same time, the net amount after offsetting its current income tax assets and current income tax liabilitiesshall be recorded.On the balance sheet date, the deferred income tax assets and the deferred income tax liabilities will be presented bythe net amount after offsetting when the following conditions are fulfilled:

(1) The taxpayer is granted the legal rights to settle current income tax assets and current income tax liabilities on anet basis;

(2) Deferred income tax assets and deferred income tax liabilities are related to income tax to be paid by the sameentity liable for paying tax to the same tax collection and management authority or related to different entities liable forpaying tax, but the relevant entity liable for paying tax is intended to apply net settlement of current income tax assetsand liabilities or, at the same time, obtain assets, repay debt whenever every deferred income tax assets and liabilitieswith importance would be reversed in the future.

36. Lease

Lease means the contract by which the lessor transfers the right to use the assets to the lessee for a given period toobtain the consideration. On the commencement of the contract, the Company will assess whether the contract is a

lease or contains the lease. If a party to the contract conveys the right to control the use of one or more identifiedassets for a given period to obtain a consideration, this contract is a lease or contains the lease.If a contract contains several individual leases, the Company will split the contract and conduct accounting treatmentof each individual lease separately. If a contact contains both lease and non-lease, the lessee and the lessor will splitthe lease and non-lease parts.If all the following conditions are met, the Company will simplify all the lease options without assessing whether thelease is changed or reassessing the lease classification:

(1) The lease consideration after reduction is less or remains substantially the same compared with the leaseconsideration before reduction, and the lease consideration may either be undiscounted or discounted by the discountrate before reduction;

(2) Other terms and conditions of lease are identified without significant change after taking the qualitative andquantitative factors into full account.

(1) Accounting treatment of leases as a lessee

① Right-of-use assets

The Company recognizes the right-to-use assets for the lease other than short-term lease and low-value asset leaseon the commencement of the lease term. The right-to-use assets are initially measured at cost. which includes:

a. Initial measurement amount of lease liabilities;b. The lease payment paid on or before the commencement of the lease term; if there are lease incentives, therelevant amount of lease incentives enjoyed shall be deducted;c. Initial direct cost incurred by the Company;d. The estimated costs incurred by the Company for dismantling and removing the leased asset, restoring the sitewhere the leased asset is located or restoring the leased asset to the state agreed in the lease terms, but excludingthe cost incurred to produce the inventory.The Company will depreciate the right-to-use assets through the straight-line method. If it can be reasonablyrecognized that the title of the leased asset is acquired at the expiration of the lease term, the Company shall accruedepreciation within the remaining service life of the leased asset; or otherwise, the leased asset shall be depreciatedwithin the shorter of the lease term and the remaining service life of the leased asset.The Company will determine whether the right-of-use assets are impaired and conduct accounting treatment over theidentified impairment loss according to the principles set out in this section Financial Report - V. Significant AccountingPolices and Accounting Estimates - 26. Impairment of long-term assets.

② Lease liabilities

The Company recognizes the lease liabilities for the lease other than short-term lease and low-value asset lease onthe commencement of the lease term. Lease liabilities shall be initially measured at the present value of the unpaidlease payments. Lease payments include:

a. Fixed payment (including actual fixed payment), and if there are lease incentives, the relevant amount of leaseincentives shall be deducted;b. Variable lease payment depending on the index or ratio;c. Predicted payment on the basis of the guaranteed residual value provided by the Company;d. Exercise price of the call option, provided that the Company will exercise such option, as reasonably determined;e. Payment for exercise of the lease termination option, provided that the lease term reflects the Company’s futureexercise of the lease termination option.

The interest rate implicit in lease is applied by the Company as the discount rate. If the interest rate implicit in leasecannot be reasonably determined, the Company's interest rate on incremental borrowings is applied as the discountrate.The Company shall calculate the interest expense of the lease liabilities during each period of the lease term at a fixedperiodic interest rate and include it in the current profit or loss or relevant asset cost.The variable lease payment which is not included in the measurement of lease liabilities shall be included in thecurrent profit or loss or relevant asset cost when actually incurred.If any of the following circumstances happens on commencement of the lease term, the Company will remeasure thelease liabilities and adjust the corresponding right-of-use assets, and if the book value of the right-of-use assets hasbeen reduced to zero, but the lease liabilities still need to be further reduced, the difference shall be included in thecurrent profit or loss:

a. When the assessment result of the call option, renewal option or termination option is changed or the actualexercise of the aforesaid option is inconsistent with the original assessment result, and the Company remeasures thelease liabilities at the present value worked out according to the changed lease payment and the revised discount rate;b. When there are changes in the actual fixed payment, the estimated payable amount of guaranteed residual value,or the index or ratio applied to determine the amount of lease payments, the Company remeasures the lease liabilitiesat the present value worked out according to the changed lease payment and the original discount rate. If the changein the lease payment originates from the change in the floating interest rate, the present value will be calculated usingthe revised discount rate.

③ Short-term lease and low-value asset lease

The Company chooses not to recognize the right-of-use assets and lease liabilities for the short-term lease and low-value asset lease, and records relevant lease payment into the current profit or loss or relevant asset cost according tothe straight-line method in each period of the lease term. Short-term lease means the lease of no more than 12months and excluding the call option on the commencement of the lease term. Low-value asset lease means a leaseof lower value when the single leased asset is brand-new. If the Company sublets or is expected to sublet the leasedassets, the original lease is not a low-value asset lease.

④ Lease change

If the lease is changed and meets all of the following conditions, the Company will conduct accounting treatment withrespect to such lease change as a single lease:

a. Such lease change has expanded the scope of lease by adding the right to use one or more leased assets;b. The increased consideration and the separate consideration for the expanded part of the scope of lease shall beequivalent to the amount adjusted according to this contract.If the lease change is not taken as a separate lease for accounting treatment, on the effective date of the lease change,the Company will re-apportion the consideration of the changed contract, re-determine the lease term, and remeasurethe lease liabilities at the present value worked out according to the changed lease payment and the revised discountrate.If the lease change results in narrower scope of lease or shorter lease term, the Company will reduce the book valueof the right-of-use assets accordingly, and will include relevant gain or loss from partial or full termination of the leasein the current profit or loss. If other lease changes result in re-measurement of the lease liabilities, the Company willadjust the book value of the right-to-use assets accordingly.

(2) Accounting treatment of leases as a lessor

On commencement of the lease term, the Company will divide the lease into financial lease and operating lease.Financial lease means the lease that has substantially transferred almost all the risks and rewards related to the title of

the leased assets, whether or not the title will be finally transferred. Operating lease means any lease other thanfinancial lease. When the Company serves as a lessor of the sublease, the sublease will be classified on the basis ofthe right-to-use assets resulting from the original lease.

① Accountant treatment of operating lease

The lease receipts for the operating lease will be recognized as the rental income according to the straight-line methodduring each period of the lease term. The initial direct fee related to the operating lease to be incurred by the Companywill be capitalized and will be apportioned and included in the current profit or loss on the same basis as that forrecognition of the rental income in the lease term. The variable lease payments that are not included in the leasereceipts shall be included in the current profit or loss when they actually occur. In case of a change to the operatinglease, the Company will conduct accounting treatment with respect to the changed operating lease as a new lease asof the effective date of the change, and the lease payments received in advance or receivable with respect to the leasebefore the change will be taken as the lease receipts for the new lease.

② Accounting treatment of financial lease

On the commencement of the lease term, the Company will recognize the financial lease receivables for the financiallease, and derecognize the financial lease assets. The Company will take the net lease investment as the entry valueof the financial lease receivables when initially measuring the financial lease receivables. The net lease investment isthe sum of the unguaranteed residual value and the present value of the unreceived lease receipts discountedaccording to the interest rate implicit in lease on the commencement of the lease term.The Company will calculate and recognize the interest income during each period of the lease term at a fixed periodicinterest rate. The derecognition and impairment of the financial lease receivables will be subject to accountingtreatment according to this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.Financial instruments.The variable lease payments that are not included in the measurement of the net lease investment shall be included inthe current profit or loss when they actually occur.If the financial lease is changed and meets all of the following conditions, the Company will conduct accountingtreatment with respect to such change as a single lease:

a. Such change has expanded the scope of lease by increasing the right to use one or more leased assets;b. The increased consideration and the separate consideration for the expanded part of the scope of lease shall beequivalent to the amount adjusted according to this contract.If the change in the financial lease is not subject to accounting treatment as a single lease, the Company will treat thechanged lease in the following circumstances:

a. If the change takes effect on commencement of the lease term and the lease is classified as operating lease, theCompany will conduct accounting treatment with respect to such lease as a new lease as of the effective date of thelease change, and will take the net lease investment before the effective date of the lease change as the book value ofthe leased asset;

b. If the change takes effect on the commencement date of the lease, and such lease is classified as the financiallease, the Company will conduct accounting treatment according to the policy regarding modification or re-negotiationof the contract in this section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.Financial instruments.

(3) Sale and leaseback transaction

The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to asale in accordance with the provisions of this section Financial Report - V. Significant Accounting Polices andAccounting Estimates - 32. Income.

① Acting as a lessee

If the asset transfer in the sale and leaseback transaction is a sale, the Company as the lessee shall measure theright-of-use asset arising from the sale and leaseback according to the part related to the right of use acquired fromthe leaseback in the original book value of the asset, and only recognize relevant gain or loss on the rights transferredto the lessor; if the asset transfer in the sale and leaseback transaction is not a sale, the Company as the lessee shallcontinue to recognize the transferred asset, and recognize a financial liability equal to the transfer income. Foraccounting treatment of the financial liabilities, refer to this section Financial Report - V. Significant Accounting Policesand Accounting Estimates - 11. Financial instruments.

② Acting as a lessor

If the asset transfer in the sale and leaseback transaction is a sale, the Company as the lessee shall conductaccounting treatment with respect to the asset purchase and conduct accounting treatment with respect to the assetlease according to the policy in the foregoing "(2) Accounting treatment of leases as a lessor"; if the asset transfer inthe sale and leaseback transaction is not a sale, the Company as the lessor shall derecognize the transferred asset,but recognize a financial asset equal to the transfer income. For accounting treatment of the financial assets, refer tothis section Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11. Financial instruments.

37. Other significant accounting policies and accounting estimates

(1) Repurchase of the Company's shares

The Company's shares repurchased by the Company for reducing the registered capital or rewarding employees shallbe treated as the treasury shares based on the actual amount paid, and shall be checked and registered at the sametime. If the repurchased shares are canceled, the difference between the actual amount paid for the repurchase andthe total par value of shares calculated based on the par value of the canceled shares and the number of canceledshares will be set off against the capital reserve. If the capital reserve is insufficient, the retained earnings will bewritten off; if the repurchased shares are awarded to the employees of the Company, it shall be categorized as equity-settled share-based payment. When the Company receives the payment made by employees who exercise their rightsto purchase such shares, the amount shall be used to write off the cost of treasury shares delivered to employees andthe capital reserve in the waiting period and meanwhile, the capital reserve (stock premium) shall be adjustedaccording to the difference.

(2) Debt restructuring

① The Company being the creditor

The Company derecognizes creditor’s rights when the contractual right to receive cash flows terminates. In case ofdebt restructuring by paying off the debt with assets or converting into equity instruments, the Company will recognizerelevant assets when they meet their definition and conditions of recognition.In case of debt restructuring by paying off the debt with assets, the Company initially recognizes the transferred non-financial asset at cost. The cost of inventory includes the fair value of the relinquished claim as well as taxes,transportation fees, handling fees and insurance fees and other costs directly attributed to the asset that occur to bringthe asset to its current location and condition. The cost of investment in an associate or joint venture includes the fairvalue of relinquished claim and taxes and other costs directly attributed to the asset. The cost of investment propertyincludes the fair value of relinquished claim and other costs directly attributed to the asset. The cost of fixed assetsincludes the fair value of relinquished claim as well as taxes, transportation fees, handling fees, installation fees,service fees for professionals and other costs directly attributed to the asset that occur to bring the asset to itsintended usable condition. The cost of biological assets includes the fair value of relinquished claim as well as taxes,transportation fees, insurance fees and other costs directly attributed to the asset. The cost of intangible assetsincludes the fair value of relinquished rights and taxes and other costs that are incurred to bring the asset to itsintended use. In case that the debt restructuring by converting debt into equity instruments results in the creditorconverting its creditor’s rights into an equity investment in an associate or joint venture, the Company shall measure itsinitial investment cost based on the fair value of the relinquished claim and taxes and other costs directly attributable tothe asset. The difference between the fair value of relinquished claim and the book value shall be included in thecurrent profit or loss.In case of debt restructuring by modifying other clauses, the Company recognizes and measures the restructuredcreditor's rights according to the Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.Financial InstrumentsIn case of debt restructuring by paying off debts with multiple assets or combining them, the Company first recognizesand measures the transferred financial assets and restructured creditor's rights according to Financial Report - V.Significant Accounting Polices and Accounting Estimates - 11. Financial instruments in this section, and then allocatesthe fair value of the relinquished claims to the net amount after deducting the recognized amounts of the transferredfinancial assets and the restructured claims in proportion to the fair value of each of the assets other than thetransferred financial assets and, based on that, determines the costs of the assets separately by the method describedin the preceding paragraph. The difference between the fair value of relinquished claim and the book value shall beincluded in the current profit or loss.

②The Company as a debtor

The Company derecognizes debts when the present obligation for the liability is discharged.In the case of debt restructuring by paying off debts with assets, the Company derecognizes the relevant assets andthe debts when they meet the conditions for derecognition, and the difference between the book value of the debtspaid off and that of the transferred assets is included in the current profits and losses.

In case of debt restructuring by transferring the debt into equity instruments, the Company will derecognize the debtpaid off when it meets the conditions of recognition. The Company initially recognizes equity instruments at their fairvalue, and at the fair value of the debt paid off if it is not reliable to measure at the fair value of the equity instrument.The difference between the book value of the debt paid off and the amount recognized for the equity instrument shallbe included in current profits and losses.In case of debt restructuring by modifying other clauses, the Company recognizes and measures the restructuredcreditor's rights according to the Financial Report - V. Significant Accounting Polices and Accounting Estimates - 11.Financial Instruments.In case of debt restructuring by paying off debts with multiple assets or combining them, the Company recognizes andmeasures equity instruments and restructured debts according to the above methods, and the difference between thebook value of the debt paid off and the book value of the transferred assets as well as the difference between theequity instruments and the amount recognized of the restructured debts shall be included in current profits and losses.

38. Changes in significant accounting policies and accounting estimates

(1) Changes in significant accounting policies

?Applicable □ Not applicable

Unit: RMB

Contents and causes of changes in accounting policies	Name of statement item influence significantly	Impact amount
On October 25, 2023, the Treasury Department ("MOF") issued the "Interpretation No. 17 of Accounting Standards for Business Enterprises 17", providing for the "classification of current liabilities and non-current liabilities", the "disclosure of vendor financing arrangements" and the "accounting treatment for sale and leaseback transactions", effective from January 1, 2024.	None
On August 1, 2023, the Ministry of Finance issued the "Interim Provisions on Accounting Treatment of Enterprise Data Resources" (Cai Kuai [2023] No. 11), which applies to data resources that are recognized as intangible assets or inventory and other assets in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, as well as data resources that are legally owned or controlled by the enterprise and are expected to bring economic benefits to the enterprise but are not recognized because they do not meet the asset recognition conditions. The relevant accounting treatment also puts forward specific requirements for the disclosure of data resources. This provision shall come into effect on January 1, 2024. Enterprises shall implement this provision using the prospective application method, and data resource-related expenditures that have been expensed and included in profit and loss before the implementation of this provision shall no longer be adjusted.	None
On December 6, 2024, the Ministry of Finance issued "Interpretation No. 18 of Accounting Standards for Business Enterprises" (Cai Kuai [2024] No. 24, hereinafter referred to as "Interpretation No. 18"). The interpretation shall come into effect on the date of issuance, and enterprises are allowed to implement it in advance from the year of issuance. Interpretation No. 18 stipulates that when accounting for the estimated liabilities arising from quality assurance of guarantee types that do not belong to single	See Note

performance obligations, the relevant provisions of "Accounting Standards forBusiness Enterprises No. 13 - Contingencies" should be followed. Accordingto the determined amount of estimated liabilities, the "Cost of Main Business"and "Cost of Other Business" accounts should be debited, and the"Estimated Liability" account should be credited. It should also be listed in the"Operating Costs" in the income statement and the "Other Current Liabilities","Non-current Liabilities Due within One Year", "Estimated Liabilities", andother items in the balance sheet. When an enterprise implements thisinterpretation for the first time, if it originally included guarantee-type qualityassurance in "sales expenses", it should make retroactive adjustments inaccordance with the change in accounting policy regarding accruals.

Since 2024, the Company has implemented the provisions of "Interpretation No. 18 of the Accounting Standards forBusiness Enterprises on the Accounting Treatment of Guarantee-type Quality Assurances that Do Not Belong toSingle Performance Obligations". The main impacts are as follows:

Contents and causes of changes in accounting policies	Affected Statement Items	Consolidated Subsidiaries		Parent company
		2024	2023	2024	2023
Guarantee-type quality assurance is included in the adjustment of "sales expenses".	Operating Cost	128,232,351.85	129,050,807.84	519,020.99	484,861.08
	Sales Expenses	-128,232,351.85	-129,050,807.84	-519,020.99	-484,861.08

(2) Changes in significant accounting estimates

□ Applicable ?Not applicable

(3) Adjustments to relevant items of financial statements as of the beginning of the year of firstimplementation of new accounting standards since 2024

□ Applicable ?Not applicable

VI. Taxes

1. Major categories of taxes and tax rates

Tax Type	Taxation basis	Tax rate
VAT	According to the provisions of the tax law, the sales tax shall be calculated on the basis of the income by selling goods and taxable services. After deducting the input tax that is allowed to be deducted from the sales tax in the current period, the difference shall be the value added tax	13%, 9%, 6%, simple collection rate of 5%, simple collection rate of 3%, 0% and tax-free
Urban Maintenance and Construction Tax	Actually paid turnover tax	7%, 5%
Enterprise Income Tax	Taxable income	15%、16.5%、20%、25%
Education surcharges	Actually paid turnover tax	3%
Local Education Surcharges	Actually paid turnover tax	2%

If there are multiple taxpayers with different enterprise income tax rates, specify the situation

Name of taxpayer	Income tax rate
Zhejiang Dahua Technology Co., Ltd.	15%
Zhejiang Dahua System Engineering Co., Ltd.	15%
Zhejiang HuaRay Technology Co., Ltd.	15%
Zhejiang Huaxiao Technology Co., Ltd.	15%
Zhejiang Huafei Intelligent Technology CO., LTD.	15%
Zhejiang Huaruijie Technology Co., Ltd.	15%
Zhejiang Huayixin Technology Co., Ltd.	15%
Zhejiang Dahua Intelligent IoT Operation Service Co., Ltd.	15%
Zhejiang Huajian Technology Co., Ltd.	15%
Hangzhou Huacheng Software Co., Ltd.	15%
Zhejiang Pixfra Technology Co., Ltd.	15%
Jiangsu Huaruipin Technology Co. Ltd.	15%
Inner Mongolia Dahua Zhimeng Information Technology Co., Ltd.	15%
Guangxi Dahua Zhicheng Co., Ltd.	15%
Guangxi Huacheng Technology Co., Ltd.	15%
Guizhou Meitan Dahua Information Technology Co., Ltd.	15%
Zhejiang Dahua Ju'an Technology Co., Ltd.	20%
Guangxi Dahua Technology Co., Ltd.	20%
Zhejiang Huakong Software Co., Ltd.	20%
Dahua Technology (HK) Limited	16.50%
Hangzhou Xiaohua Technology CO., LTD.	20%
Chengdu Zhichuang Yunshu Technology Co., Ltd.	20%
Chengdu Huishan Smart Network Technology Co., Ltd.	20%
Guizhou Huayi Shixin Technology Co., Ltd.	20%
Zhejiang Zhoushan Digital Development Operation Co. Ltd.	20%
Tianjin Dahua Information Technology Co., Ltd.	20%
Chengdu Huazhiwei Technology Co., Ltd.	20%
Chengdu Dahua Wisdom Information Technology Co., Ltd.	20%
Nanyang Dahua Intelligent Information Technology Co., Ltd.	20%
Xi'an IMOU Zhilian Technology Co., Ltd.	20%
Guangdong Huaxiyue Intelligent Technology Co., Ltd.	20%
Guangxi Dahua Yunlian Information Technology Co., Ltd.	20%
Zhejiang Huajie New Energy Operation Service Co., Ltd.	20%
Shanghai Huashang Chengyue Information Technology Service Co., Ltd.	20%
Tianjin Huajian Technology Co., Ltd.	20%
Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co., Ltd.	20%
Shandong Dahua Digital Intelligence Technology Co., Ltd.	20%
Other domestic companies	25%
Other overseas companies	Applicable to local tax rate

2. Preferential tax rate

(1) According to the Notice on the Filing and Publicity of High-tech Enterprises Certified by the Certification Body ofZhejiang Province in 2023 issued by the Office for the Administration of the Certification of National High-techEnterprises on December 28, 2023, our subsidiaries Zhejiang Huaruijie Technology Co., Ltd., Zhejiang Huajian

Technology Co., Ltd., Hangzhou Huacheng Software Co., Ltd. and Zhejiang Dahua System Engineering Co., Ltd. werecertified as high-tech enterprises, with validity for 3 years. The corporate income tax for this year was paid at areduced rate of 15%.

(2) According to the Announcement on the Filing of the High-tech Enterprises Certified and Filed by the RecognizedInstitutions of Zhejiang Province in 2024 issued by the Office for the Administration of the Certification of NationalHigh-tech Enterprises on Thursday, December 26, 2024, our subsidiaries Zhejiang HuaRay Technology Co., Ltd.,Zhejiang Huaxiao Technology Co., Ltd., Zhejiang Huayixin Technology Co., Ltd., and Zhejiang Dahua Intelligent IoTOperation Service Co., Ltd. were certified as high-tech enterprises, with a validity period of 3 years. The corporateincome tax for this year was paid at a reduced tax rate of 15%.

(3) According to the Announcement on the Filing of the First Batch of High-tech Enterprises of Zhejiang ProvinceCertified and Filed in 2023 issued by the Office for the Administration of the Certification of National High-techEnterprises on Thursday, December 28, 2023, our subsidiaries Zhejiang Huafei Intelligent Technology Co., Ltd. andZhejiang Pixfra Technology Co., Ltd. were certified as high-tech enterprises, validity for 3 years. The corporate incometax for this year was paid at a reduced rate of 15%.

(4) According to the Notice on the Filing and Publicity of High-tech Enterprises Certified by the Certification Body ofZhejiang Province in 2022 issued by the Office for the Administration of the Certification of National High-techEnterprises on December 24, 2022, our subsidiaries Zhejiang Huaruijie Technology Co., Ltd., Zhejiang HuajianTechnology Co., Ltd., Hangzhou Huacheng Software Co., Ltd. and Zhejiang Dahua System Engineering Co., Ltd. werecertified as high-tech enterprises, with validity for 3 years. The corporate income tax for this year was paid at areduced rate of 15%.

(5) According to the Notice on the Filing and Publicity of High-tech Enterprises Certified by the Certification Body ofJiangsu Province in 2023 issued by the Office for the Administration of the Certification of National High-techEnterprises on Thursday, January 4, 2024, our subsidiaries Jiangsu Huaruipin Technology Co., Ltd. was certified ashigh-tech enterprises, with validity for 3 years. The corporate income tax for this year was paid at a reduced rate of15%.

(6) According to the Announcement on Tax and Fee Policies to Further Support the Development of Small Low-ProfitEnterprises and Individual Industrial and Commercial Households (Announcement No. 12 of the Ministry of Financeand the State Administration of Taxation in 2023) and the Announcement on Preferential Income Tax Policies forSmall Low-Profit Enterprises and Individual Industrial and Commercial Households (Announcement No. 12 of theMinistry of Finance and the State Administration of Taxation in 2023) issued by the Ministry of Finance and the StateAdministration of Taxation, Announcement of the State Administration of Taxation [2023] No. 6), our subsidiaries -Zhejiang Dahua Ju'an Technology Co., Ltd., Guangxi Dahua Technology Co., Ltd., Zhejiang Huakong Software Co.,Ltd., Hangzhou Xiaohua Technology Co., Ltd., Chengdu Zhichuang Yunshu Technology Co., Ltd., Chengdu HuishanSmart Network Technology Co., Ltd., Guizhou Huayi Shixin Technology Co., Ltd., Zhejiang Zhoushan DigitalDevelopment Operation Co., Ltd., Tianjin Dahua Information Technology Co., Ltd., Chengdu Huazhiwei TechnologyCo., Ltd., Chengdu Dahua Intelligent Information Technology Co., Ltd., Nanyang Dahua Intelligent InformationTechnology Co., Ltd., Xi'an IMOU Zhilian Technology Co., Ltd., Guangdong Huaxiyue Intelligent Technology Co., Ltd.,Guangxi Dahua Yunlian Information Technology Co., Ltd., Zhejiang Huajie New Energy Operation Service Co., Ltd.,Shanghai Huashang Chengyue Information Technology Service Co., Ltd., Tianjin Huajian Technology Co., Ltd.,Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co., Ltd., Shandong Dahua Digital IntelligenceTechnology Co., Ltd. The part of the annual taxable income that does not exceed 1 million yuan shall be reduced by25% and included in the taxable income, and the corporate income tax shall be paid at a tax rate of 20%; for the partof the annual taxable income that exceeds 1 million yuan but does not exceed 3 million yuan, it shall be reduced by 25%and included in the taxable income, and the corporate income tax shall be paid at a tax rate of 20%.

(7) According to the Notice of the Ministry of Finance, the General Administration of Customs and the StateAdministration of Taxation on Tax Policy Issues concerning Further Implementing the Western China DevelopmentStrategy (C.S.H.G. [2011] No. 58), and the Announcement of the Ministry of Finance, the State TaxationAdministration and the National Development and Reform Commission on Continuing the Corporate Income TaxPolicies for the Large-Scale Development of Western China (C.S.H.G. [2020] No. 23), the following subsidiaries canenjoy preferential tax policies related to the Development of the West Regions Program from 2011 to 2030: InnerMongolia Dahua Zhimeng Information Technology Co., Ltd., Guangxi Dahua Zhicheng Co., Ltd., Guangxi HuachengTechnology Co., Ltd. and Guizhou Meitan Dahua Information Technology Co., Ltd. The corporate income tax for thisyear was paid at a reduced tax rate of 15%.

(8) According to the Notice on Value-added Tax Policies for Software Products (Cai Shui [2011] No.100) by theMinistry of Finance and the State Administration of Taxation, the sales of software products independently developedby Zhejiang Dahua Technology Co., Ltd., Zhejiang Dahua System Engineering Co., Ltd., Hangzhou XiaohuaTechnology Co., Ltd., Zhejiang Huafei Intelligent Technology Co., Ltd. (Huafei Intelligent), Jiangsu HuaruipinTechnology Co., Ltd., Zhejiang Huaruijie Technology Co., Ltd., Zhejiang Huaxiao Technology Co., Ltd. (WisualarmTechnology), Zhejiang PixFra Technology Co., Ltd., Hangzhou Huacheng Software Co., Ltd., and Zhejiang HuaRayTechnology Co., Ltd. shall be subject to a value-added tax at the rate of 13% first, and the actual tax burden of morethan 3% will be refunded after being reviewed and approved by the competent tax authorities.

(9) According to the Ministry of Finance and the State Administration of Taxation’s Announcement on the AdditionalValue-Added Tax ("VAT") Credit Policy for Advanced Manufacturing Enterprises (Announcement No. 43 [2023]), fromJanuary 1, 2023, to December 31, 2027, advanced manufacturing enterprises are allowed to deduct an additional 5%of the value-added tax payable based on the deductible input tax in the current period. Zhejiang Huajian TechnologyCo., Ltd., Jiangsu Huaruipin Technology Co., Ltd., Zhejiang Huaruijie Technology Co., Ltd., Zhejiang PixFraTechnology Co., Ltd., and Zhejiang HuaRay Technology Co., Ltd. are entitled to the preferential tax policy foradvanced manufacturing industries during the period in compliance with the provisions of the additional VAT creditpolicy for advanced manufacturing industries.VII. Notes to the Items in the Consolidated Financial Statements

1. Cash and bank balances

Unit: RMB

Item	Closing Balance	Opening Balance
Cash on Hand	2,584.78	2,642.58
Digital Currency		160,820.00
Bank Balance	10,946,929,688.16	15,827,819,644.89
Other Cash and Bank Balances	234,871,150.89	143,022,007.00
Total	11,181,803,423.83	15,971,005,114.47
Including: Total Amount Deposited in Overseas Banks	1,423,057,560.40	930,951,357.54

Other notes: Details of monetary funds that are restricted in use due to mortgage, pledge, or freeze, are restricted inwithdrawal due to centralized management of funds, and are deposited overseas but restricted in repatriation are asfollows:

Unit: RMB

Item	Closing Balance	Opening Balance
Bid/performance bond	75,635,853.99	68,981,082.99

Frozen funds	31,940,849.28	6,862,600.24
Total	107,576,703.27	75,843,683.23

2. Trading Financial Assets

Unit: RMB

Item	Closing Balance	Opening Balance
Financial assets at fair value through profit or loss in this period	229,927,529.28	1,470,000.00
Including:
Financial products	80,200,959.64	1,470,000.00
Stock	149,726,569.64
Total	229,927,529.28	1,470,000.00

3. Notes Receivable

(1) Disclosure of Notes Receivable

Unit: RMB

Item	Closing Balance	Opening Balance
Bank Acceptance Notes	636,567,044.09	665,341,998.76
Commercial Acceptance Notes	141,183,216.00	147,697,193.99
Total	777,750,260.09	813,039,192.75

(2) Disclosure by Bad Debt Accrual Method

Unit: RMB

Category	Closing Balance					Opening Balance
	Book balance		Bad debt provision		Book value	Book balance		Bad debt provision		Book value
	Amount	Proportion	Amount	Accrued proportion		Amount	Proportion	Amount	Accrued proportion
Notes Receivable with the Bad Debt Provision Accrued Based on Combinations	797,002,021.69	100.00%	19,251,761.60	2.42%	777,750,260.09	834,798,129.64	100.00%	21,758,936.89	2.61%	813,039,192.75
Including:
Bank Acceptance	643,969,978.30	80.80%	7,402,934.21	1.15%	636,567,044.09	672,300,691.46	80.53%	6,958,692.70	1.04%	665,341,998.76

Notes
Commercial Acceptance Notes	153,032,043.39	19.20%	11,848,827.39	7.74%	141,183,216.00	162,497,438.18	19.47%	14,800,244.19	9.11%	147,697,193.99
Total	797,002,021.69	100.00%	19,251,761.60		777,750,260.09	834,798,129.64	100.00%	21,758,936.89		813,039,192.75

Bad debt accrual by portfolio: RMB 19,251,761.60

Unit: RMB

Name	Closing Balance
	Book balance	Bad debt provision	Accrued proportion
Bank Acceptance Notes	643,969,978.30	7,402,934.21	1.15%
Commercial Acceptance Notes	153,032,043.39	11,848,827.39	7.74%
Total	797,002,021.69	19,251,761.60

If the bad debt provisions of notes receivable are made according to the general model of expected credit losses:

□ Applicable ?Not applicable

(3) Provision for bad debts accrued, recovered or reversed in this period

Provision for bad debts in the current period:

Unit: RMB

Category	Opening Balance	Amount of Changes in the Current Period				Closing Balance
		Accrued	Recovered or Reversed	Written Off	Others
Bank Acceptance Notes	6,958,692.70	444,241.51				7,402,934.21
Commercial Acceptance Notes	14,800,244.19		2,951,416.80			11,848,827.39
Total	21,758,936.89	444,241.51	2,951,416.80			19,251,761.60

Significant amount of recovered or reversed bad debt provision in this period:

□ Applicable ?Not applicable

(4) Notes receivable that the Company has pledged at the end of the period

Unit: RMB

Item	Pledged amount by the end of period
Bank Acceptance Notes	400,606,519.20
Total	400,606,519.20

(5) Notes receivable that the Company has endorsed or discounted at the end of the periodand that have not yet expired on the balance sheet date

Unit: RMB

Item

Derecognised amount at the end of

Not derecognised amount at the end

	period	of period
Bank Acceptance Notes		41,959,304.16
Total		41,959,304.16

4. Accounts Receivable

(1) Disclosure by aging

Unit: RMB

Aging	Closing balance	Opening balance
Within 1 year (including 1 year)	15,089,860,120.54	14,458,581,851.85
1 to 2 years	1,830,327,585.83	1,675,541,614.13
2 to 3 years	934,561,606.86	914,682,001.04
3 years or above	2,452,808,503.88	2,359,337,149.65
3 to 4 years	646,840,898.86	627,873,130.02
4 to 5 years	507,603,962.50	605,039,214.61
5 years or above	1,298,363,642.52	1,126,424,805.02
Total	20,307,557,817.11	19,408,142,616.67

(2) Disclosure by Bad Debt Accrual Method

Unit: RMB

Category	Closing Balance					Opening Balance
	Book balance		Bad debt provision		Book value	Book balance		Bad debt provision		Book value
	Amount	Proportion	Amount	Accrued proportion		Amount	Proportion	Amount	Accrued proportion
Accounts receivables with the bad debt provision accrued based on single item	180,133,348.24	0.89%	169,137,414.11	93.90%	10,995,934.13	467,182,946.91	2.41%	433,667,151.15	92.83%	33,515,795.76
Including:
Accounts receivable with insignificant	180,133,348.24	0.89%	169,137,414.11	93.90%	10,995,934.13	467,182,946.91	2.41%	433,667,151.15	92.83%	33,515,795.76

single amount but accrued for separate provision of bad debt
Accounts receivables with the bad debt provision accrued based on combinations	20,127,424,468.87	99.11%	3,092,325,884.21	15.36%	17,035,098,584.66	18,940,959,669.76	97.59%	2,697,671,511.49	14.24%	16,243,288,158.27
Including:
Aging Analysis Portfolio	20,127,424,468.87	99.11%	3,092,325,884.21	15.36%	17,035,098,584.66	18,940,959,669.76	97.59%	2,697,671,511.49	14.24%	16,243,288,158.27
Total	20,307,557,817.11	100.00%	3,261,463,298.32		17,046,094,518.79	19,408,142,616.67	100.00%	3,131,338,662.64		16,276,803,954.03

Provision for bad debt accrued by single item: RMB 169,137,414.11

Unit: RMB

Name	Opening Balance		Closing Balance
	Book balance	Bad debt provision	Book balance	Bad debt provision	Accrued proportion	Reason for making bad debt provision
Customer 1	225,140,645.36	225,140,645.36				Expected to be unable to recover
Customer 2	49,001,963.55	49,001,963.55	49,001,963.55	49,001,963.55	100.00%	Expected to be unable to recover
Customer 3	38,612,198.42	38,612,198.42	36,676,477.42	36,676,477.42	100.00%	Expected to be unable to recover
Customer 4	20,596,426.50	20,596,426.50	20,596,426.50	20,596,426.50	100.00%	Expected to be unable to recover
Customer 5	18,790,253.00	18,790,253.00				Expected to be unable to recover

Miscellaneous	115,041,460.08	81,525,664.32	73,858,480.77	62,862,546.64	85.11%	Expected to be partially unrecoverable
Total	467,182,946.91	433,667,151.15	180,133,348.24	169,137,414.11

Provision for bad debt accrued by portfolio: RMB 3,092,325,884.21

Unit: RMB

Name	Closing Balance
	Book balance	Bad debt provision	Accrued proportion
Within 1 year (including 1 year)	15,089,019,027.54	754,445,296.92	5.00%
1 to 2 years	1,818,402,686.73	181,840,268.67	10.00%
2 to 3 years	934,536,140.25	280,360,842.08	30.00%
3 to 4 years	629,957,206.67	314,978,603.33	50.00%
4 to 5 years	474,042,672.38	379,234,137.91	80.00%
5 years or above	1,181,466,735.30	1,181,466,735.30	100.00%
Total	20,127,424,468.87	3,092,325,884.21

If the bad debt provisions of accounts receivable are made according to the general model of expected credit losses:

□ Applicable ?Not applicable

(3) Provision for bad debts accrued, recovered or reversed in this periodProvision for bad debts in the current period:

Unit: RMB

Category	Opening Balance	Amount of Changes in the Current Period				Closing Balance
		Accrued	Recovered or Reversed	Written Off	Others
Bad debt provision	3,131,338,662.64	481,580,998.64	4,768,300.26	335,015,838.48	-11,672,224.22	3,261,463,298.32
Total	3,131,338,662.64	481,580,998.64	4,768,300.26	335,015,838.48	-11,672,224.22	3,261,463,298.32

Significant amount of recovered or reversed bad debt provision in this period:

None

(4) Accounts receivable actually written off in this period

Unit: RMB

Item	Write-off amount
Accounts receivable actually written off	335,015,838.48

Write-off of important accounts receivable:

None

(5) Accounts receivable and contract assets of the top five closing balances collected bydebtors

Unit: RMB

Name of Unit

Ending balance of accounts

Closing balance of contract

Closing balance of accounts

As a percentage of accounts

Closing balance of provision for

	receivable	assets	receivable and contract assets	receivables and total ending balance	bad debts on accounts receivable and impairment of contract assets
Customer 1	753,975,451.78		753,975,451.78	3.68%	37,698,772.59
Customer 2	591,354,065.58		591,354,065.58	2.89%	29,567,703.28
Customer 3	434,897,934.38		434,897,934.38	2.12%	21,769,092.87
Customer 4	378,158,742.23	3,943,041.50	382,101,783.73	1.86%	88,597,379.44
Customer 5	329,193,231.58		329,193,231.58	1.61%	16,459,661.58
Total	2,487,579,425.55	3,943,041.50	2,491,522,467.05	12.16%	194,092,609.76

5. Contract Assets

(1) Contract Assets

Unit: RMB

Item	Closing Balance			Opening Balance
	Book balance	Bad debt provision	Book value	Book balance	Bad debt provision	Book value
Completed but unsettled assets	25,290,931.34	361,398.92	24,929,532.42	33,413,988.93	421,118.95	32,992,869.98
O&M service	7,456,278.33	75,407.79	7,380,870.54	6,198,950.93	66,600.03	6,132,350.90
Quality guarantee deposit	66,497,257.70	11,410,143.57	55,087,114.13	62,344,437.16	14,755,441.70	47,588,995.46
Total	99,244,467.37	11,846,950.28	87,397,517.09	101,957,377.02	15,243,160.68	86,714,216.34

(2) Disclosure by Bad Debt Accrual Method

Unit: RMB

Category	Closing Balance					Opening Balance
	Book balance		Bad debt provision		Book value	Book balance		Bad debt provision		Book value
	Amount	Proportion	Amount	Accrued proportion		Amount	Proportion	Amount	Accrued proportion
Provision of bad debts based on combination	99,244,467.37	100.00%	11,846,950.28	11.94%	87,397,517.09	101,957,377.02	100.00%	15,243,160.68	14.95%	86,714,216.34
Including:
Combination of nature of the	99,244,467.37	100.00%	11,846,950.28	11.94%	87,397,517.09	101,957,377.02	100.00%	15,243,160.68	14.95%	86,714,216.34

funds
Total	99,244,467.37	100.00%	11,846,950.28	11.94%	87,397,517.09	101,957,377.02	100.00%	15,243,160.68	14.95%	86,714,216.34

Provision for bad debt accrued by portfolio: RMB 11,846,950.28

Unit: RMB

Name	Closing Balance
	Book balance	Bad debt provision	Accrued proportion
Combination of nature of the funds	99,244,467.37	11,846,950.28	11.94%
Total	99,244,467.37	11,846,950.28

Provision for bad debts based on general model of expected credit losses

□ Applicable ?Not applicable

(3) Provision for bad debts accrued, recovered or reversed in this period

Unit: RMB

Item	Provisions of this period	Recovered or reversed during the period	Write-off in this period	Foreign Currency Translation Difference	Reasons
Completed but unsettled assets		59,720.03
O&M service	8,807.76
Quality guarantee deposit		3,345,293.35		-4.78
Total	8,807.76	3,405,013.38		-4.78	——

Significant amount of recovered or reversed bad debt provision in this period:

None

6. Receivables Financing

(1) Disclosure of receivables financing

Unit: RMB

Item	Closing Balance	Opening Balance
Bank Acceptance Notes	841,815,267.43	810,713,267.86
Total	841,815,267.43	810,713,267.86

(2) Financing of accounts receivable pledged by the Company at the end of the period

Unit: RMB

Item	Pledged amount by the end of period
Bank Acceptance Notes	549,669,895.67
Total	549,669,895.67

(3) Financing of accounts receivable that the Company has endorsed or discounted at the endof the period and that have not yet expired on the balance sheet date

Unit: RMB

Item	Derecognised amount at the end of period	Not derecognised amount at the end of period
Bank Acceptance Notes	40,556,558.09
Total	40,556,558.09

7. Other Receivables

Unit: RMB

Item	Closing Balance	Opening Balance
Dividends Receivable		5,784,225.02
Other Receivables	293,728,850.42	331,740,463.34
Total	293,728,850.42	337,524,688.36

(1) Dividends Receivable

1) Classification of Dividends Receivable

Unit: RMB

Project (or Invested Unit)	Closing Balance	Opening Balance
Intelbras S.A.		5,784,225.02
Total		5,784,225.02

(2) Other receivables

1) Other receivables categorized by the nature of the funds

Unit: RMB

Nature of the funds	Closing balance	Opening balance
Deposits	151,154,514.69	148,419,383.42
Prepaid or advance expense	122,639,225.03	129,465,778.21
Equity Transfer Fund	31,149,666.32	44,693,899.47
Export tax rebate	106,247.36	26,923.43
Employee home loan	78,949,911.00	89,695,884.00
Others	6,034,131.37	402,441.33
Total	390,033,695.77	412,704,309.86

2) Disclosure by aging

Unit: RMB

Aging	Closing balance	Opening balance
Within 1 year (including 1 year)	191,651,180.73	175,351,662.59
1 to 2 years	41,084,974.35	117,075,815.72
2 to 3 years	72,462,850.86	57,728,030.61

3 years or above	84,834,689.83	62,548,800.94
3 to 4 years	39,666,543.22	31,838,007.64
4 to 5 years	20,632,422.94	17,297,622.38
5 years or above	24,535,723.67	13,413,170.92
Total	390,033,695.77	412,704,309.86

3) Disclosure by bad debt accrual method

?Applicable □ Not applicable

Unit: RMB

Category	Closing Balance					Opening Balance
	Book balance		Bad debt provision		Book value	Book balance		Bad debt provision		Book value
	Amount	Proportion	Amount	Accrued proportion		Amount	Proportion	Amount	Accrued proportion
Provision of bad debts based on combination	390,033,695.77	100.00%	96,304,845.35	24.69%	293,728,850.42	412,704,309.86	100.00%	80,963,846.52	19.62%	331,740,463.34
Including:
Aging Analysis Portfolio	390,033,695.77	100.00%	96,304,845.35	24.69%	293,728,850.42	412,704,309.86	100.00%	80,963,846.52	19.62%	331,740,463.34
Total	390,033,695.77	100.00%	96,304,845.35	24.69%	293,728,850.42	412,704,309.86	100.00%	80,963,846.52	19.62%	331,740,463.34

Bad debt accrual by portfolio: RMB 96,304,845.35

Unit: RMB

Name	Closing Balance
	Book balance	Bad debt provision	Accrued proportion
Within 1 year (including 1 year)	191,651,180.73	9,582,559.04	5.00%
1 to 2 years	41,084,974.35	4,108,497.44	10.00%
2 to 3 years	72,462,850.86	21,738,855.24	30.00%
3 to 4 years	39,666,543.22	19,833,271.61	50.00%
4 to 5 years	20,632,422.94	16,505,938.35	80.00%
5 years or above	24,535,723.67	24,535,723.67	100.00%
Total	390,033,695.77	96,304,845.35

Provision for bad debts based on general model of expected credit losses:

Unit: RMB

Bad debt provision	Phase One	Phase Two	Phase Three	Total
	Expected credit losses in the next 12 months	Expected credit losses for the entire extension (without	Expected credit losses for the entire extension (with credit

		credit impairment)	impairment)
Balance as of January 1, 2024	40,311,666.81	38,930,999.37	1,721,180.34	80,963,846.52
Balance in the current period as of January 1, 2024
--Transfer to phase two	-1,830,768.92	1,830,768.92
--Transfer to phase three	-221,743.78	-62,368.20	284,111.98
Provisions of this period	6,497,605.85	4,709,525.40	5,450,501.51	16,657,632.76
Write off in this period	71,478.67	153,186.53	55,642.11	280,307.31
Other variations	-579,633.34	-456,693.28		-1,036,326.62
Balance as of December 31, 2024	44,105,647.95	44,799,045.68	7,400,151.72	96,304,845.35

Book balance changes with significant changes in loss provision in the current period

□ Applicable ?Not applicable

4) Provision for bad debts accrued, recovered or reversed in this periodProvision for bad debts in the current period:

Unit: RMB

Category	Opening Balance	Amount of Changes in the Current Period				Closing Balance
		Accrued	Recovered or Reversed	Resale or write-off	Others
Bad debt provision	80,963,846.52	16,657,632.76		280,307.31	-1,036,326.62	96,304,845.35
Total	80,963,846.52	16,657,632.76		280,307.31	-1,036,326.62	96,304,845.35

Significant amount of recovered or reversed bad debt provision in this period:

None

5) Accounts receivable actually written off in this period

Unit: RMB

Item	Write-off amount
Other accounts receivable actually written off	280,307.31

Write-off of other important receivables:

None

6) Other receivables of the top five closing balances collected by debtors

Unit: RMB

Name of Unit

Nature of the funds

Closing Balance

Aging

As a percentage of total other

Bad debt provision at the

				receivables at the end of the period	end of the period
Company 1	Equity Transfer Fund	26,319,666.32	2-3 years	6.75%	7,895,899.90
Company 2	Deposits	11,832,000.00	3 to 4 years	3.03%	5,916,000.00
Company 3	Prepaid or advance expense	6,047,181.17	Within 1 year	1.55%	302,359.06
Company 4	Prepaid or advance expense	5,500,000.00	4 to 5 years	1.41%	4,400,000.00
Company 5	Equity Transfer Fund	4,830,000.00	Within 1 year	1.24%	241,500.00
Total		54,528,847.49		13.98%	18,755,758.96

8. Prepayments

(1) Aging analysis of prepayments is as follows

Unit: RMB

Aging	Closing Balance		Opening Balance
	Amount	Proportion	Amount	Proportion
Within 1 year	276,949,733.43	89.17%	168,576,768.97	89.01%
1 to 2 years	15,277,764.29	4.92%	11,544,945.31	6.10%
2 to 3 years	9,380,618.43	3.02%	5,759,402.22	3.04%
3 years or above	8,966,750.94	2.89%	3,507,600.49	1.85%
Total	310,574,867.09		189,388,716.99

(2) Advance payment of the top five closing balances by prepayment parties

The advance payment of the top five closing balances by the concentration of prepayment parties was summed up toRMB 188,434,438.83, accounting for 60.67% of the total closing balance of the advance payment.

9. Inventory

Does the company need to comply with disclosure requirements in the real estate industry?No

(1) Categories of inventories

Unit: RMB

Item	Closing Balance			Opening Balance
	Book balance	Provision for Impairment of Inventories or Provision for Impairment of Performance	Book value	Book balance	Provision for Impairment of Inventories or Provision for Impairment of Performance	Book value

		Cost			Cost
Raw materials	1,775,556,159.22	75,056,394.19	1,700,499,765.03	1,817,465,527.90	64,749,700.02	1,752,715,827.88
Work-in-progress	460,827,771.31	11,280,157.80	449,547,613.51	419,964,218.05	8,473,870.92	411,490,347.13
Finished goods	2,309,288,663.59	78,001,025.54	2,231,287,638.05	2,305,873,410.13	86,615,979.53	2,219,257,430.60
Contract Performance Costs	623,434,238.29	19,687,088.95	603,747,149.34	727,101,492.76	22,396,500.68	704,704,992.08
Outsourced work-in-progress	218,478,605.32		218,478,605.32	244,439,946.33		244,439,946.33
Total	5,387,585,437.73	184,024,666.48	5,203,560,771.25	5,514,844,595.17	182,236,051.15	5,332,608,544.02

(2) Provision for impairment of inventories and provision for impairment of contractperformance cost

Unit: RMB

Item	Opening Balance	Increased Amount in the Current Period		Decreased Amount in the Current Period		Closing Balance
		Accrued	Others	Reversals or write-offs	Others
Raw materials	64,749,700.02	73,554,690.20		59,032,727.14	4,215,268.89	75,056,394.19
Work-in-progress	8,473,870.92	17,607,514.40		16,518,887.66	-1,717,660.14	11,280,157.80
Finished goods	86,615,979.53	28,882,483.54		36,931,074.43	566,363.10	78,001,025.54
Contract Performance Costs	22,396,500.68	12,534,138.51		15,243,550.24		19,687,088.95
Total	182,236,051.15	132,578,826.65		127,726,239.47	3,063,971.85	184,024,666.48

10. Non-current Assets Due within 1 Year

Unit: RMB

Item	Closing Balance	Opening Balance
Long-term accounts receivables due within 1 year	237,608,641.30	303,454,116.40
Total	237,608,641.30	303,454,116.40

11. Other Current Assets

Unit: RMB

Item	Closing Balance	Opening Balance
Return cost receivable	12,991,543.19	11,228,032.04
Not deducted input tax	404,856,368.72	555,798,264.68

Prepaid enterprise income tax	36,722,593.44	34,017,571.59
National debt reverse repurchase	530,974,219.56	338,331,000.00
Large-denomination certificates of deposit from banks (maturing within one year)	50,257,291.67
Total	1,035,802,016.58	939,374,868.31

12. Long-term Receivables

(1) Long-term receivables

Unit: RMB

Item	Closing Balance			Opening Balance			Range of discount rate
	Book balance	Bad debt provision	Book value	Book balance	Bad debt provision	Book value
Installment Payment for Selling Products	752,811,851.80	8,399,299.80	744,412,552.00	957,523,390.97	10,864,081.27	946,659,309.70
Including: Unrealized Financing Income	87,118,128.29		87,118,128.29	128,884,735.86		128,884,735.86	3.69%-5.88%
Total	752,811,851.80	8,399,299.80	744,412,552.00	957,523,390.97	10,864,081.27	946,659,309.70

(2) Disclosure by Bad Debt Accrual Method

Unit: RMB

Category	Closing Balance					Opening Balance
	Book balance		Bad debt provision		Book value	Book balance		Bad debt provision		Book value
	Amount	Proportion	Amount	Accrued proportion		Amount	Proportion	Amount	Accrued proportion
Provision of bad debts based on combination	839,929,980.09	100.00%	8,399,299.80	1.00%	831,530,680.29	1,086,408,126.83	100.00%	10,864,081.27	1.00%	1,075,544,045.56
Including:
Combination of nature of the funds	839,929,980.09	100.00%	8,399,299.80	1.00%	831,530,680.29	1,086,408,126.83	100.00%	10,864,081.27	1.00%	1,075,544,045.56
Total	839,929,980.09	100.00%	8,399,299.80	1.00%	831,530,680.29	1,086,408,126.83	100.00%	10,864,081.27	1.00%	1,075,544,045.56

Provision for bad debt accrued by portfolio: RMB 8,399,299.80

Unit: RMB

Name	Closing Balance
	Book balance	Bad debt provision	Accrued proportion
Combination of nature of the funds	839,929,980.09	8,399,299.80	1.00%
Total	839,929,980.09	8,399,299.80

(3) Provision for bad debts accrued, recovered or reversed in this period

Unit: RMB

Category	Opening Balance	Amount of Changes in the Current Period				Closing Balance
		Accrued	Recovered or Reversed	Resale or write-off	Others
Bad debt provision	10,864,081.27		2,464,781.47			8,399,299.80
Total	10,864,081.27		2,464,781.47			8,399,299.80

Significant amount of recovered or reversed bad debt provision in this period:

None

13. Long-term Equity Investments

Unit: RMB

The invested entity

Opening balance (book value)

Opening balance of provision for impairment

Decrease/Increase in the current period

Closing balance (book value)

Closing balance of provision for decline in value

Investments increased

Investment decreased

Investment profit and loss recognized under the equity method

Adjustment on other comprehensive income

Other changes in equity

Cash dividends or profit declared to distribute

Provision for impairment accrued

Others

Ⅰ. Joint ventures

II. Affiliate

Intelbras S.A.

480,079,908.08

51,075,836.31

16,720,071.38

-7,514,266.44

506,921,406.57

Ruicity Digital Technology Co., Ltd.

78,231,566.10

-25,428,071.72

52,803,494.38

Hangzhou Juhua

723,496.39

nyan Information Technology Co., Ltd.
Guangdong Zhishi Digital Technology Co., Ltd.					-57,713.57					57,713.57
Ningbo Huayan Chuangxi Venture Capital Investment Partnership (Limited Partnership)	67,432,554.80				747,344.35			553,134.55			67,626,764.60
Dezhou Shuzhi Information Technology Co., Ltd.	3,444,758.26				154,201.41						3,598,959.67
Sichuan Hengji Anhua Internet of Things Technology Co., Ltd.	1,121,844.56				-161,589.49						960,255.07
Guangxi	598,287.37				90,795.44						689,082.81

FTZ Huaqin Wisdom Park Technology Research Institute Co., Ltd.
Ningbo Cida Yongshun Intelligent Technology Co., Ltd.	1,163,912.73		1,110,000.00		-1,134,507.94						1,139,404.79
Zhejiang Huachuang Vision Technology Co., Ltd.	95,380,797.85				-10,220,237.90		3,341,640.73				88,502,200.68
Shenzhen Aohua Urban Operation and Development Co., Ltd.					-82.18					82.18
Huahongchang Intelligent Technology (Jiangsu) Co., Ltd.					-107,540.25					107,540.25
Subtot	727,453,62	723,496.39	1,110,000.0		14,958,434.		3,341,640.7	17,273,205.		-7,348,	722,241,56

al	9.75		0		46		3	93		930.44	8.57
Total	727,453,629.75	723,496.39	1,110,000.00		14,958,434.46		3,341,640.73	17,273,205.93		-7,348,930.44	722,241,568.57

The recoverable amount is determined as the net of fair value less costs of disposal.

□ Applicable ?Not applicable

The recoverable amount is determined as the present value of the expected future cash flows.

□ Applicable ?Not applicable

14. Other Non-current Financial Assets

Unit: RMB

Item	Closing Balance	Opening Balance
Investment in equity instruments	42,303,530.71	478,782,601.67
Investment in financial products	1,232,393,960.16	1,056,959,784.04
Total	1,274,697,490.87	1,535,742,385.71

15. Investment Properties

(1) Investment properties measured by cost method

?Applicable □ Not applicable

Unit: RMB

Item	Buildings and constructions	Land use rights	Projects under Construction	Total
Ⅰ. Original book value
1. Opening Balance	174,113,990.28			174,113,990.28
2. Increased in the Current Period	19,049,827.95			19,049,827.95
(1) Purchase
(2) Transfer of fixed assets\intangible assets	19,049,827.95			19,049,827.95
(3) Acquisition
3. Decreased in the Current Period
(1) Disposal
(2) Transfer of fixed assets/intangible assets
(3) Other

Transfer-out
4. Closing Balance	193,163,818.23			193,163,818.23
II. Accumulated Depreciation and Amortization
1. Opening Balance	44,476,986.28			44,476,986.28
2. Increased in the Current Period	9,406,245.69			9,406,245.69
(1) Accrual or Amortization	8,781,127.88			8,781,127.88
(2) Transfer of fixed assets\intangible assets	625,117.81			625,117.81
(3) Acquisition
3. Decreased in the Current Period
(1) Disposal
(2) Transfer of fixed assets/intangible assets
(3) Other Transfer-out
4. Closing Balance	53,883,231.97			53,883,231.97
III. Impairment Provision
1. Opening Balance
2. Increased in the Current Period
(1) Accrual
3. Decreased in the Current Period
(1) Disposal
(2) Other Transfer-out
4. Closing Balance
IV. Book Value
1. Closing Balance on Book Value	139,280,586.26			139,280,586.26
2. Opening Balance on Book Value	129,637,004.00			129,637,004.00

(2) Investment properties measured at fair value

□ Applicable ?Not applicable

(3) Investment properties with certificates of title not granted

No investment properties with certificates of title not granted at the end of the period.

16. Fixed Assets

Unit: RMB

Item	Closing Balance	Opening Balance
Fixed Assets	4,973,953,628.05	4,937,180,876.88
Fixed assets cleanup
Total	4,973,953,628.05	4,937,180,876.88

(1) Fixed assets

Unit: RMB

Item	Housing and building	Machinery and equipment	Means of transport	Electronic and other equipment	Total
Ⅰ. Original book value:
1. Opening Balance	4,700,211,205.93	618,035,677.34	28,747,880.43	1,908,687,345.08	7,255,682,108.78
2. Increased in the Current Period	122,578,398.71	51,118,348.14	4,068,148.28	508,299,227.38	686,064,122.51
(1) Purchase	35,915,848.78	51,118,348.14	4,068,148.28	438,476,218.53	529,578,563.73
(2) Transferred From Construction in Progress	86,662,549.93			69,823,008.85	156,485,558.78
(3) Acquisition
(4) Transfer of investment properties
3. Decreased in the Current Period	19,049,827.95	26,228,059.60	2,488,709.51	50,976,856.21	98,743,453.27
(1) Disposal or Scrapping		26,228,059.60	2,274,103.70	47,583,473.45	76,085,636.75
(2) Transfer to investment real estate	19,049,827.95				19,049,827.95
(3) Disposal of subsidiaries			214,605.81	3,393,382.76	3,607,988.57

4. Currency Translation Difference	-132,399.50	-80,812.75	-163,517.29	-2,419,763.60	-2,796,493.14
5. Closing Balance	4,803,607,377.19	642,845,153.13	30,163,801.91	2,363,589,952.65	7,840,206,284.88
II. Accumulated depreciation
1. Opening Balance	743,791,548.93	216,453,185.63	21,774,098.02	1,336,482,399.32	2,318,501,231.90
2. Increased in the Current Period	224,899,388.53	57,081,604.86	2,789,888.87	318,243,974.15	603,014,856.41
(1) Accrual	224,899,388.53	57,081,604.86	2,789,888.87	318,243,974.15	603,014,856.41
(2) Transfer of investment properties
3. Decreased in the Current Period	625,117.81	11,162,414.30	1,173,673.87	40,313,515.77	53,274,721.75
(1) Disposal or Scrapping		11,162,414.30	969,798.35	38,024,730.86	50,156,943.51
(2) Transfer to investment real estate	625,117.81				625,117.81
(3) Disposal of subsidiaries			203,875.52	2,288,784.91	2,492,660.43
4. Currency Translation Difference	-33,761.87	-78,822.42	-138,494.61	-1,737,630.83	-1,988,709.73
5. Closing Balance	968,032,057.78	262,293,553.77	23,251,818.41	1,612,675,226.87	2,866,252,656.83
III. Impairment Provision
1. Opening Balance
2. Increased in the Current Period
(1) Accrual
3. Decreased in the Current Period
(1) Disposal or Scrapping
4. Closing Balance
IV. Book Value
1. Closing Balance on Book Value	3,835,575,319.41	380,551,599.36	6,911,983.50	750,914,725.78	4,973,953,628.05
2. Opening	3,956,419,657.00	401,582,491.71	6,973,782.41	572,204,945.76	4,937,180,876.88

Balance on BookValue

(2) Fixed assets rent out under operating leases

Unit: RMB

Item	Book Value at the End of the Period
Buildings and constructions	736,902,314.48
Electronic and other equipment	50,988,486.84

(3) Fixed assets with certificates of title not granted

Unit: RMB

Item	Book value	Reasons for certificates of title not granted
Commercial housing in Cisco Intelligent Technology Park	21,946,289.11	In the process of obtaining the real estate certificates
Wuzhou Building in Guangxi	37,183,163.71	In the process of obtaining the real estate certificates
Shandong Rizhao Commercial Housing	1,644,844.32	The real estate certificates were obtained in January 2025.

(4) Impairment test of fixed assets

□ Applicable ?Not applicable

17. Construction in Progress

Unit: RMB

Item	Closing Balance	Opening Balance
Projects under Construction	1,254,554,187.36	1,008,612,408.49
Total	1,254,554,187.36	1,008,612,408.49

(1) Construction in progress

Unit: RMB

Item	Closing Balance			Opening Balance
	Book balance	Impairment provision	Book value	Book balance	Impairment provision	Book value
Phase I, Urban Intelligent Information Industry Construction Project				37,183,163.71		37,183,163.71
New project of Southwest R&D Center of Dahua Co.,	322,402,380.64		322,402,380.64	263,076,398.23		263,076,398.23

Ltd.
New projects of Southwestern China Operation Center of Dahua	386,439,622.10		386,439,622.10	335,849,207.03		335,849,207.03
Henan Smart IoT base of Dahua	168,946,600.69		168,946,600.69	111,780,241.11		111,780,241.11
Construction project of Dahua intelligent products manufacturing base	341,740,284.37		341,740,284.37	101,525,907.86		101,525,907.86
Others	35,025,299.56		35,025,299.56	159,197,490.55		159,197,490.55
Total	1,254,554,187.36		1,254,554,187.36	1,008,612,408.49		1,008,612,408.49

(2) Changes in significant construction in progress

Unit: RMB

Item Name

Budget

Opening Balance

Increased Amount in the Current Period

Amount of fixed assets transferred in the current period

Other amounts decreased in current period

Closing Balance

Project accumulative investment as a percentage of the budget

Project Progress

Accumulated capitalized interest amount

Including: capitalized interest amount in the current period

Capitalization rate of the interest in the current period

Capital Source

New project of Southwest R&D Center of Dahua Co., Ltd.

RMB 417 million

263,076,398.23

59,325,982.41

322,402,380.64

84.21%

84.21%

Equity funds/raised funds

New projects of Southwestern China Operation Center of Dahua

RMB 396 million

335,849,207.03

50,590,415.07

386,439,622.10

106.25%

98.00%

Equity Fund

Construction project of Dahua intelligent products manufacturing base	RMB 600 million	101,525,907.86	240,214,376.51			341,740,284.37	62.08%	62.08%				Equity Fund
Total		700,451,513.12	350,130,773.99			1,050,582,287.11

(3) Impairment test of construction in progress

□ Applicable ?Not applicable

18. Right-of-use Assets

(1) Right-of-use assets

Unit: RMB

Item	Buildings and constructions	Machinery and equipment	Total
Ⅰ. Original book value
1. Opening Balance	518,737,508.83	8,884,640.73	527,622,149.56
2. Increased in the Current Period	98,781,284.58	111,961.08	98,893,245.66
(1) Leased this year	97,300,907.97	111,961.08	97,412,869.05
(2) Acquisition	1,480,376.61		1,480,376.61
3. Decreased in the Current Period	96,091,296.83		96,091,296.83
(1) Expiration or early termination of lease contracts	82,192,135.81		82,192,135.81
(2) Disposal of subsidiaries	13,899,161.02		13,899,161.02
4. Currency Translation Difference	-5,540,242.51		-5,540,242.51
5. Closing Balance	515,887,254.07	8,996,601.81	524,883,855.88
II. Accumulated depreciation
1. Opening Balance	226,494,557.71	1,925,005.29	228,419,563.00
2. Increased in the Current Period	143,224,851.16	944,444.60	144,169,295.76
(1) Accrual	143,101,486.45	944,444.60	144,045,931.05
(2) Acquisition	123,364.71		123,364.71
3. Decreased in the Current Period	79,595,721.91		79,595,721.91
(1) Expiration or early termination of lease contracts	72,568,417.48		72,568,417.48
(2) Disposal of subsidiaries	7,027,304.43		7,027,304.43

4. Currency Translation Difference	-233,558.83		-233,558.83
5. Closing Balance	289,890,128.13	2,869,449.89	292,759,578.02
III. Impairment Provision
1. Opening Balance
2. Increased in the Current Period
(1) Accrual
3. Decreased in the Current Period
(1) Disposal
4. Closing Balance
IV. Book Value
1. Closing Balance on Book Value	225,997,125.94	6,127,151.92	232,124,277.86
2. Opening Balance on Book Value	292,242,951.12	6,959,635.44	299,202,586.56

(2) Impairment test of right-to-use assets

□ Applicable ?Not applicable

19. Intangible Assets

(1) Details of intangible assets

Unit: RMB

Item	Land use rights	Patent right	Non-patented technology	Software	Trademark	Software copyright	Total
Ⅰ. Original book value
1. Opening Balance	626,404,053.87		68,530,508.70	173,816,614.23	2,077,241.60	4,000,000.00	874,828,418.40
2. Increased in the Current Period	3,590,276.69		29,716.98	18,939,459.61			22,559,453.28
(1) Purchase	3,590,276.69		29,716.98	6,972,719.16			10,592,712.83
(2) Internal research and development
(3) Acquisition
(4) Constructio				11,966,740.45			11,966,740.45

n in progress transferred
(5) Transfer of investment properties
3. Decreased in the Current Period				796,156.12	2,077,241.60		2,873,397.72
(1) Disposal				774,640.58	2,077,241.60		2,851,882.18
(2) Transfer to investment real estate
(3) Disposal of subsidiaries				21,515.54			21,515.54
4. Currency Translation Difference	-16,675.00			-29,836.68			-46,511.68
5. Closing Balance	629,977,655.56		68,560,225.68	191,930,081.04		4,000,000.00	894,467,962.28
II. Accumulated amortization
1. Opening Balance	70,706,202.43		58,529,703.12	144,836,253.14	2,077,241.60	4,000,000.00	280,149,400.29
2. Increased in the Current Period	14,018,944.65		4,208,154.25	20,958,201.56			39,185,300.46
(1) Accrual	14,018,944.65		4,208,154.25	20,958,201.56			39,185,300.46
(2) Transfer of investment properties
3. Decreased in the Current Period				795,369.92	2,077,241.60		2,872,611.52
(1) Disposal				773,854.38	2,077,241.60		2,851,095.98
(2) Transfer to investment real estate
(3) Disposal of				21,515.54			21,515.54

subsidiaries
4. Currency Translation Difference				-29,565.54			-29,565.54
5. Closing Balance	84,725,147.08		62,737,857.37	164,969,519.24		4,000,000.00	316,432,523.69
III. Impairment Provision
1. Opening Balance
2. Increased in the Current Period
(1) Accrual
3. Decreased in the Current Period
(1) Disposal
4. Closing Balance
IV. Book Value
1. Closing Balance on Book Value	545,252,508.48		5,822,368.31	26,960,561.80			578,035,438.59
2. Opening Balance on Book Value	555,697,851.44		10,000,805.58	28,980,361.09			594,679,018.11

The intangible assets from internal research and development of the Company at the end of this period account for

0.00% of the intangible assets balance.

(2) No land use right without the certificate of title at the end of the period

(3) Impairment test of intangible assets

□ Applicable ?Not applicable

20. Goodwill

(1) Original book value of goodwill

Unit: RMB

The invested entity or matters which formed goodwill	Opening Balance	Increased in the current period		Decreased in the current period		Closing Balance
		Generated from business combination		Disposal
Dahua Technology Italy S.R.L.	6,615,294.18					6,615,294.18
Total	6,615,294.18					6,615,294.18

(2) Impairment provision for goodwill

Unit: RMB

The invested entity or matters which formed goodwill	Opening Balance	Increased in the current period		Decreased in the current period		Closing Balance
		Accrued		Disposal
Dahua Technology Italy S.R.L.	0.00					0.00
Total	0.00					0.00

(3) Information about the asset group or asset group combination where the goodwill islocated

Name	Composition and basis of the asset group or its combination	Operational subsection and basis	Is it consistent with the previous year?
Dahua Technology Italy S.R.L.	The asset group relating to the goodwill formed by acquisition of Dahua Technology Italy S.R.L., that is, the long-term asset group, including fixed assets and intangible assets, formed for Dahua Technology Italy S.R.L. on December 31, 2024.	Recognition is based on whether the main cash inflow generated is independent of other asset groups or their combinations.	Yes

(4) Determination method of recoverable amount

The recoverable amount is determined as the net of fair value less costs of disposal.

□ Applicable ?Not applicable

The recoverable amount is determined as the present value of the expected future cash flows.?Applicable □ Not applicable

Unit: RMB

Item

Book value

Recoverable amount

Impairment amount

Number of years of the forecast period

Key parameters of the forecast

Key parameters of the steady

Determination basis of key parameters in the

					period	period	steady period
Dahua Technology Italy S.R.L.	122,962,624.86	201,508,685.05	0.00	2025-2029	Revenue growth rate of 8%-10% over the forecast period; discount rate of 15.60%	Revenue growth rate of 0% over the steady period; discount rate of 15.60%	Predict cautiously as the income will not increase in the steady period.
Total	122,962,624.86	201,508,685.05	0.00

(5) Completion of performance commitment and goodwill impairment situationThere is a performance commitment when goodwill is formed and the reporting period or the previous reporting periodfalls within the performance commitment period.

□ Applicable ?Not applicable

21. Long-term Deferred Expenses

Unit: RMB

Item	Opening Balance	Increased Amount in the Current Period	Prepaid Expenses in This Period	Other Amounts Decreased	Closing Balance
Improvement expenditure of fixed assets leased by operating lease	69,962,883.75	18,884,954.55	42,809,033.90	800,001.33	45,238,803.07
Renovation Cost	65,372,390.20	12,974,310.25	24,175,098.10		54,171,602.35
Total	135,335,273.95	31,859,264.80	66,984,132.00	800,001.33	99,410,405.42

22. Deferred Income Tax Assets/Deferred Income Tax Liabilities

(1) Deferred income tax assets not written off

Unit: RMB

Item	Closing Balance		Opening Balance
	Deductible temporary difference	Deferred Income Tax Assets	Deductible temporary difference	Deferred Income Tax Assets
Provision for Impairment of Assets	3,025,825,450.60	562,296,401.85	2,945,448,093.79	561,492,926.21
Unrealized Profit from Internal Transactions	541,607,785.16	111,639,987.98	1,849,888,966.76	436,702,186.90
Deductible Losses	1,920,226,766.23	291,618,935.89	615,050,031.87	101,761,861.84
Equity incentive expense			291,671,905.31	45,689,152.55
Expected Liabilities	213,777,948.61	36,535,893.26	170,920,678.13	26,157,016.58
Payroll payable	252,223,316.91	41,492,918.94	253,599,826.64	41,664,283.10

Costs from Tax Increase Due to Absence of Invoice	583,649,029.08	112,966,247.86	557,868,000.15	107,970,125.57
Changes in fair value gains and losses	3,733,125.73	559,968.86	1,458,799.36	364,699.84
Book-tax difference of lease liabilities	144,796,421.88	27,085,343.71	188,753,783.73	35,399,648.53
Investments in non-monetary assets	466,573,172.48	69,985,975.87	520,408,538.53	78,061,280.78
Others	113,506,566.35	18,209,927.86	111,452,227.57	17,921,647.45
Total	7,265,919,583.03	1,272,391,602.08	7,506,520,851.84	1,453,184,829.35

(2) Non-offset deferred income tax liabilities

Unit: RMB

Item	Closing Balance		Opening Balance
	Taxable temporary difference	Deferred Income Tax Liabilities	Taxable temporary difference	Deferred Income Tax Liabilities
The gross profit of sales by installments	52,101,542.99	8,882,673.02	58,360,423.87	10,150,707.92
Changes in fair value gains and losses	335,149,352.80	50,272,402.92	378,324,828.79	56,893,999.27
Book-tax difference of right-of-use assets	139,677,335.23	26,194,630.77	182,618,578.98	34,371,567.43
Investments in non-monetary assets	323,116,498.20	48,467,474.73	430,682,928.47	64,602,439.27
Others	12,316,682.73	1,847,502.41
Total	862,361,411.95	135,664,683.85	1,049,986,760.11	166,018,713.89

(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Offset

Unit: RMB

Item	Amount of Deferred Income Tax Assets Offset against Liabilities at the End of the Period	Balance of Deferred Income Tax Assets or Liabilities after Offset at the End of the Period	Amount of Deferred Income Tax Assets Offset against Liabilities at the Start of the Period	Balance of Deferred Income Tax Assets or Liabilities after Offset at the Start of the Period
Deferred Income Tax Assets	135,645,521.63	1,136,746,080.45	165,281,346.70	1,287,903,482.65
Deferred Income Tax Liabilities	135,645,521.63	19,162.22	165,281,346.70	737,367.19

(4) Deferred income tax assets or liabilities listed by net amount after offset

Unit: RMB

Item	Closing Balance	Opening Balance
Deductible temporary difference	601,482,814.06	562,186,328.66
Deductible Losses	2,023,883,256.99	1,660,894,695.64
Total	2,625,366,071.05	2,223,081,024.30

(5) Details of unrecognized deferred income tax assets

Unit: RMB

Year	Closing balance	Opening balance	Notes
2024		123,399,991.24
2025	213,836,146.31	260,522,250.84
2026	348,424,975.65	331,413,381.74
2027	498,989,378.85	476,126,194.63
2028	449,525,076.81	469,432,877.19
2029 and later	513,107,679.37
Total	2,023,883,256.99	1,660,894,695.64

23. Other Non-current Assets

Unit: RMB

Item	Closing Balance			Opening Balance
	Book balance	Impairment provision	Book value	Book balance	Impairment provision	Book value
Contract Acquisition Costs	7,585,925.51		7,585,925.51
Large-denomination certificates of deposit from banks	4,203,178,761.72		4,203,178,761.72
Contract Assets	83,145,926.80	5,446,542.16	77,699,384.64	80,729,279.52	5,837,202.88	74,892,076.64
Prepayments for purchase of engineering equipments	37,521,356.48		37,521,356.48	129,167,069.19		129,167,069.19
Prepayments for acquisition of real estate	1,791,480.71		1,791,480.71	5,893,664.25		5,893,664.25
Others				856,454.41		856,454.41
Total	4,333,223,451.22	5,446,542.16	4,327,776,909.06	216,646,467.37	5,837,202.88	210,809,264.49

24. Assets whose Ownership or Rights to Use is Restricted

Unit: RMB

	Book Value at the End of the Period	Opening Balance on Book Value	Type of Restriction	Restrictions
Cash and Bank Balances	107,576,703.27	75,843,683.23	Guarantee letter security deposit and other restricted funds	Restricted use
Notes receivable and receivables financing	987,102,426.21	947,438,573.74	Pledge used to issue bank acceptance bills and endorsed or discounted notes not derecognised	Restricted use
Accounts receivable		6,633,164.97	Financial discount and factoring not derecognised in	Restricted use

			the supply chain
Fixed Assets	787,890,801.32	443,212,364.35	Fixed assets rented out under operating leases	Restricted use
Total	1,882,569,930.80	1,473,127,786.29

25. Short-term Loans

(1) Categories of short-term loan

Unit: RMB

Item	Closing Balance	Opening Balance
Pledged loans	995,000,000.00	400,000,000.00
Fiduciary loans		549,800,000.00
Factoring loans in the supply chain finance		7,238,385.64
Interest payable for short-term loan		387,944.54
Total	995,000,000.00	957,426,330.18

Description of the categories of short-term loan:

The secured borrowings refer to the acceptance bill and letters of credit issued between the affiliates within the scopeof consolidation, and are discounted and listed as a short-term loan at the level of the consolidated statement.

(2) Short-term loans that have been overdue and unpaid

At the end of this period, the Group has no short-term loans that are overdue and unpaid.

26. Trading financial liabilities

Unit: RMB

Item	Closing Balance	Opening Balance
Transactional financial liabilities	4,268,603.52	61,400.12
Including:
Derivative Financial Liabilities	1,058,039.73	61,400.12
Contingent consideration	3,210,563.79
Total	4,268,603.52	61,400.12

27. Notes payable

Unit: RMB

Types	Closing Balance	Opening Balance
Commercial acceptance bill	2,189,843,859.93	2,050,859,385.48
Bank acceptance bill	1,410,130,382.09	1,245,435,560.78
Total	3,599,974,242.02	3,296,294,946.26

28. Accounts payable

(1) Details of accounts payable

Unit: RMB

Item	Closing Balance	Opening Balance
Payment for purchase of materials	5,514,821,691.83	5,295,784,509.14
Payment for engineering equipments	363,155,169.30	519,338,686.41
Total	5,877,976,861.13	5,815,123,195.55

(2) Significant accounts payable aged over 1 year or overdue

No significant accounts payable aged over 1 year or overdue.

29. Other payables

Unit: RMB

Item	Closing Balance	Opening Balance
Dividends Payable	22,951,560.23	23,667,047.02
Other Payables	614,061,999.82	788,757,099.50
Total	637,013,560.05	812,424,146.52

(1) Dividends payable

Unit: RMB

Item	Closing Balance	Opening Balance
Equity Incentive Restricted Stock Dividend	22,951,560.23	23,667,047.02
Total	22,951,560.23	23,667,047.02

(2) Other payables

1) Other payables listed by nature of funds

Unit: RMB

Item	Closing Balance	Opening Balance
Deposits	130,208,683.89	119,727,924.44
Temporarily borrowed and advance payments	316,774,319.18	325,491,021.42
Restricted share repurchase obligations	144,695,313.36	326,740,652.18
Others	22,383,683.39	16,797,501.46
Total	614,061,999.82	788,757,099.50

2) Other significant accounts payable aged over 1 year or overdue

No other significant accounts payable aged over 1 year or overdue.

30. Contract liabilities

Unit: RMB

Item	Closing Balance	Opening Balance
Payments for sales of goods	367,888,058.92	248,523,384.39
Pre-payments from construction projects	512,577,027.01	606,995,011.21
Sales of points	29,975,336.23	40,987,601.52
Service expense collected in advance	371,763,926.59	298,028,309.92
Total	1,282,204,348.75	1,194,534,307.04

31. Payroll payable

(1) Details of payroll payable

Unit: RMB

Item	Opening Balance	Increased in the current period	Decreased in the current period	Closing Balance
Ⅰ. Short-term remuneration	1,927,465,906.51	7,237,991,001.55	7,363,991,836.42	1,801,465,071.64
II. Dimission benefits - defined contribution plan	4,356,958.15	479,337,723.65	476,501,194.17	7,193,487.63
III. Dismissal welfare	2,132,766.46	51,434,479.48	51,172,596.29	2,394,649.65
Total	1,933,955,631.12	7,768,763,204.68	7,891,665,626.88	1,811,053,208.92

(2) Details of short-term remuneration

Unit: RMB

Item	Opening Balance	Increased in the current period	Decreased in the current period	Closing Balance
1. Wages or salaries, bonuses, allowances and subsidies	1,630,694,501.69	6,289,929,754.55	6,416,306,595.30	1,504,317,660.94
2. Staff welfare		125,993,611.43	125,993,611.43
3. Social insurance contributions	1,774,953.96	271,484,685.24	270,991,144.64	2,268,494.56
Including: medical insurance	1,551,779.16	257,998,699.05	257,405,715.99	2,144,762.22
Work injury insurance premium	222,341.68	12,285,381.78	12,396,260.74	111,462.72
Maternity insurance premium	833.12	1,200,604.41	1,189,167.91	12,269.62
4. Housing funds	121,261.43	437,554,444.53	435,993,897.14	1,681,808.82
5. Labor union and education funds	294,875,189.43	113,028,505.80	114,706,587.91	293,197,107.32
Total	1,927,465,906.51	7,237,991,001.55	7,363,991,836.42	1,801,465,071.64

(3) Details of defined contribution plans

Unit: RMB

Item	Opening Balance	Increased in the current period	Decreased in the current period	Closing Balance
1. Basic pension insurance	3,951,325.98	458,681,143.43	456,120,895.51	6,511,573.90
2. Unemployment insurance	405,632.17	20,656,580.22	20,380,298.66	681,913.73
Total	4,356,958.15	479,337,723.65	476,501,194.17	7,193,487.63

32. Taxes and fees payable

Unit: RMB

Item	Closing Balance	Opening Balance
VAT	196,774,063.10	363,245,736.32
Enterprise Income Tax	108,441,794.06	762,303,704.91
Individual income tax	37,096,806.99	34,441,288.75
Urban Maintenance and Construction Tax	12,215,258.91	21,936,677.77
Education surcharges (including local education surcharges)	8,733,186.86	15,669,021.79
House property tax	30,548,302.26	30,701,891.59
Stamp duty	6,307,924.45	10,066,368.59
Others	5,742,985.00	5,117,671.36
Total	405,860,321.63	1,243,482,361.08

33. Non-current liabilities due within one year

Unit: RMB

Item	Closing Balance	Opening Balance
Long-term debt due within one year		750,000,000.00
Lease liabilities due within 1 year	117,227,812.08	116,027,750.99
Interest payable due within 1 year		694,277.76
Other loans due within 1 year		35,000,000.00
Total	117,227,812.08	901,722,028.75

34. Other current liabilities

Unit: RMB

Item	Closing Balance	Opening Balance
To-be-transferred sales taxes in installments	28,016,863.95	34,104,924.61
To-be-transferred sales taxes of contract liabilities	90,175,362.12	81,757,348.46
Notes not derecognised	41,959,304.16	39,320,431.95
Total	160,151,530.23	155,182,705.02

35. Lease liabilities

Unit: RMB

Item	Closing Balance	Opening Balance
Lease payments	245,019,254.27	313,410,607.81
Deduct: Unrecognized financing costs	13,477,634.78	20,802,807.25
Lease liabilities due within 1 year	117,227,812.08	116,027,750.99
Total	114,313,807.41	176,580,049.57

36. Estimated Liabilities

Unit: RMB

Item	Closing Balance	Opening Balance	Causes
Pending litigation	64,828,324.97	27,829,629.48	Pending litigation
Others	2,674,923.66	469,642.57	Loss-making contract
Expected after-sales maintenance cost	180,635,396.82	178,727,096.75	After-sales maintenance
Expected return amount after the period	20,056,045.79	17,516,258.10	Expected sales return
Total	268,194,691.24	224,542,626.90

37. Deferred income

Unit: RMB

Item	Opening Balance	Increased in the current period	Decreased in the current period	Closing Balance	Causes
Government subsidies	151,844,373.02	40,829,317.46	11,448,444.19	181,225,246.29	Received government subsidies related to assets
Government subsidies	14,867,300.02		9,911,533.32	4,955,766.70	Received government subsidies related to income
Total	166,711,673.04	40,829,317.46	21,359,977.51	186,181,012.99	--

38. Other non-current liabilities

Unit: RMB

Item	Closing Balance	Opening Balance
To-be-transferred sales taxes in installments	88,891,691.43	119,054,046.66
Others	13,372,397.59
Total	102,264,089.02	119,054,046.66

39. Share capital

Unit: RMB

Opening

Increased or decreased amount in this period (+/-)

Closing

	Balance	Shares newly issued	Bonus shares	Shares converted from capital reserves	Others	Subtotal	Balance
Total shares	3,294,468,990.00	3,295,423.00			-2,134,680.00	1,160,743.00	3,295,629,733.00

Other notes:

1. According to the decision of the 5th Meeting of the 8th Board of Directors of the Company held on April 15, 2024and the amended Articles of Association and the resolution of the 2023 annual general meeting of shareholders of theCompany, the Company applied to repurchase and cancel 2,134,680 Restricted RMB ordinary shares (A Shares) thathad been granted but not unlocked to 204 equity incentive objects, reduced the registered capital by RMB2,134,680.00, and the registered capital after the change was RMB 3,292,334,310.00. The above capital reduction hasbeen verified by Verification Report Xin Kuai Shi Bao Zi [2024] No. ZF11011 issued by BDO China Shu Lun Pan CPAs(special general partnership). The registration filed with Administration for Industry and Commerce was completed inAugust 2024 by the Company.

2. According to the "Proposal on the Company's Stock Option and Restricted Share Incentive Plan (Draft Revised) for2022" and its Summary approved at the 44th Meeting of the Seventh Board of Directors on June 16, 2023, theexercise conditions for the second exercise period of the Company's Stock Option and Restricted Share Incentive Planhave been met. As of December 31, 2024, employees have exercised a total of 3,295,423 shares through voluntaryexercise, increasing the registered capital by RMB 3,295,423.00. The registered capital after the change is RMB3,295,629,733.00. The above matters have not yet completed the business registration change procedures.

40. Capital reserve

Unit: RMB

Item	Opening Balance	Increased in the current period	Decreased in the current period	Closing Balance
Capital premium (capital share premium)	6,702,611,107.02	259,276,830.92	32,748,322.45	6,929,139,615.49
Other capital reserves	421,514,889.47	34,128,515.98	228,015,785.08	227,627,620.37
Total	7,124,125,996.49	293,405,346.90	260,764,107.53	7,156,767,235.86

Other notes, including increases or decreases in this period and their reasons:

1. In this period, the Company repurchased 2,134,680 restricted shares that had been granted but had not beenunlocked by cancellation of the share incentive subject, reducing the share capital by RMB 2,134,680.00, and reducingthe capital reserves (share premium) by RMB 15,284,308.80.

2. The exercise conditions for the second exercise period of the Company's 2022 Stock Option and Restricted ShareIncentive Plan have been met. As of December 31, 2024, employees have exercised a total of 3,295,423 sharesthrough voluntary exercise, increasing capital reserve (stock premium) by RMB 47,696,935.19. Among other capitalreserves, the related expenses recognized for restricted shares and stock options unlocked in this period, totalingRMB 209,746,056.13, were transferred to capital reserve (stock premium).

3. The total capital reserve (stock premium) decreased by RMB 1,833,401.78 in this period, due to the purchase anddisposal of minority shareholders' equity in subsidiaries.

4. The amount of employee service that the Company received in exchange by share-based payments in this periodwas RMB 31,919,688.06, increasing capital reserve (other capital reserve) by RMB 30,085,848.46, and (stockpremium) by RMB 1,833,839.60; the portion of equity-settled share-based payments entitled to minority shareholderswas RMB 26,793,587.40, decreasing capital reserve (other capital reserve) by RMB 11,162,975.53, and decreasingcapital reserve (stock premium) by RMB 15,630,611.87. The income tax impact amount RMB 7,106,753.42 for thedeductible amount before income tax which exceeds the costs and expenses related to share-based paymentsrecognized under accounting standards is recognized to decrease other capital reserves.

5. The impact of changes in other owners' equity of the affiliates that the Company should enjoy under the equitymethod increased capital reserves (other capital reserves) by RMB 3,341,640.73.

6. Some employees of the Company indirectly acquired part of the equity of Zhejiang Huanuokang Technology Co.,Ltd. controlled by the actual controller, involving share-based payment, and the related share-based paymentexpenses were included in the capital reserve (other capital reserve) of RMB 701,026.79 as capital investment.

41. Treasury share

Unit: RMB

Item	Opening Balance	Increased in the current period	Decreased in the current period	Closing Balance
Restricted shares	326,740,652.18		182,045,338.82	144,695,313.36
Share buyback	419,959,211.27			419,959,211.27
Total	746,699,863.45		182,045,338.82	564,654,524.63

Other notes, including increases or decreases in this period and their reasons:

1. In this period, the Company repurchased 2,134,680 shares of the granted but unlocked restricted shares, reducingthe share capital by RMB 2,134,680.00, reducing the capital reserves (share premium) by RMB 15,284,308.80, andreducing the corresponding treasury stock amount by RMB 17,418,988.80 at the same time.

2. Due to the reduction in treasury shares and related liabilities as a result of cash dividends distributed to restrictedshareholders and the recovery of cash dividends distributed to departing personnel, the treasury shares decreased byan aggregate amount of RMB 715,486.78.

3. The exercise conditions for the second exercise period of the company's 2022 stock option and restricted shareincentive plan have been met, and 20,262,480 restricted shares have been unlocked, correspondingly reducingtreasury shares and related liabilities by RMB 165,341,836.80.

42. Other Comprehensive Incomes

Unit: RMB

Item	Opening Balance	Amount Occurred in the Current Period						Closing Balance
		Before tax balance in	Less: recorded	Less: Recorded	Less: Income	Attributable to the	Attributable to the

		this period	into other comprehensive incomes in previous period and transferred to P/L in current period	into other comprehensive incomes in previous period and transferred to retained income in current period	Tax Expense	Company after tax	minority shareholders after tax
Other Comprehensive Income That Will Be Reclassified into P/L	65,993,020.83	25,818,671.30	-11,860,654.65			38,365,439.74	-686,113.79	104,358,460.57
Including: Foreign currency financial statement translation difference	65,993,020.83	25,818,671.30	-11,860,654.65			38,365,439.74	-686,113.79	104,358,460.57
Other comprehensive income in total	65,993,020.83	25,818,671.30	-11,860,654.65			38,365,439.74	-686,113.79	104,358,460.57

43. Surplus reserves

Unit: RMB

Item	Opening Balance	Increased in the current period	Decreased in the current period	Closing Balance
Statutory surplus reserve	1,647,234,495.00	580,371.50		1,647,814,866.50
Total	1,647,234,495.00	580,371.50		1,647,814,866.50

Notes on the surplus reserve, including increases or decreases in this period and their reasons:

According to the Company Law and the Articles of Association, the statutory surplus reserve fund shall be drawn at 10%of the parent company's net profit, limited to 50% of the parent company's share capital.

44. Undistributed profits

Unit: RMB

Item

Current Period

Previous Period

Undistributed Profit before Adjustment at the End of the Previous Period	23,334,051,186.55	17,872,654,791.67
Undistributed Profit after Adjustment at the Start of the Period	23,334,051,186.55	17,872,654,791.67
Add: net profit attributable to parent company's owner in current period	2,905,728,684.03	7,361,892,404.52
Less: withdrawal for statutory surplus reserve	580,371.50	93,543,489.08
Payable Dividends on Ordinary Shares	1,853,061,050.97	1,817,223,955.97
Add: Common stock dividends corresponding to repurchase and cancellation of restricted stocks	1,991,951.67	7,662,734.78
Others		2,608,700.63
Undistributed Profit at the End of the Period	24,388,130,399.78	23,334,051,186.55

45. Operating revenue and operating cost

(1) Operating revenue and operating cost

Unit: RMB

Item	Amount Occurred in the Current Period		Amount Occurred in the Previous Period
	Income	Cost	Income	Cost
Main Business	31,733,745,338.87	19,369,796,361.49	31,843,580,629.17	18,525,996,369.58
Other businesses	447,186,488.30	311,890,243.02	374,737,007.60	278,025,361.72
Total	32,180,931,827.17	19,681,686,604.51	32,218,317,636.77	18,804,021,731.30

The net profit before and after deducting non-recurring profits and losses, whichever is lower, is negative.

□ Yes ?No

(2) Information related to operating revenue and operating cost (by product)

Unit: RMB

Item	Amount Occurred in the Current Period
	Income	Cost
Smart IoT Products and Solutions	25,775,422,871.14	15,187,851,740.07

Including: Software Business

Including: Software Business	1,685,487,112.56	590,089,111.30
Innovative Businesses	5,566,291,857.39	3,765,335,736.52

Others

Others	839,217,098.64	728,499,127.92
Total	32,180,931,827.17	19,681,686,604.51

(3) Information related to operating revenue and operating cost (by region)

Unit: RMB

Item	Amount Occurred in the Current Period

	Income	Cost
Domestic	15,886,994,088.01	10,584,111,985.06

Overseas

Overseas	16,293,937,739.16	9,097,574,619.45
Total	32,180,931,827.17	19,681,686,604.51

Information about performance of obligations:

The Company fulfills its performance obligations in a timely manner as agreed in the contract and recognizes therelated income when the customer obtains control of the relevant goods, which is mainly divided into fulfilling theperformance obligations at a certain point in time and fulfilling the performance obligations within a certain period oftime.The Company recognizes income from the sales of goods when control of the goods passes, i.e., when the goods aredelivered to the counterparty's designated location, or to the counterparty's designated carrier, or when they aredelivered to the counterparty for acceptance.The Company identifies part of the business as a performance obligation to be fulfilled within a certain period of timeaccording to the nature of the business. The Company shall recognize the income according to the performanceprogress within that period of time, except where the performance progress cannot be reasonably recognized. TheCompany employs the output method or input method to determine the performance progress. If the performanceprogress cannot be reasonably recognized and the costs incurred are expected to be compensated, the income shallbe recognized according to the amount of costs incurred until the performance progress can be reasonably recognized.

46. Taxes and surcharges

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Urban Maintenance and Construction Tax	80,739,976.26	106,501,298.77
Education surcharges (including local education surcharges)	57,688,592.35	76,094,343.54
House property tax	48,344,533.53	59,855,960.89
Land usage tax	8,011,191.78	7,903,136.79
Vehicle and vessel use tax	41,456.25	56,476.48
Stamp duty	21,492,876.32	22,285,309.84
Others	4,998,144.98	3,089,670.74
Total	221,316,771.47	275,786,197.05

47. Administrative expenses

Unit: RMB

Item

Amount Occurred in the Current Period

Amount Occurred in the Previous Period

Labor cost	695,667,184.18	742,212,609.53
Depreciation cost and asset amortization	143,209,091.42	159,254,353.46
Administrative expenses	92,194,684.99	90,685,611.32
Consumables and service fees	52,025,654.53	39,845,264.04
Knowledge resource fee	82,606,146.49	147,815,551.33
Transportation and vehicle expenses	4,121,637.41	3,451,347.31
Traveling expense	11,840,135.09	11,774,618.38
Business entertainment	15,791,767.91	11,246,490.69
Others	43,951,884.61	51,143,668.21
Total	1,141,408,186.63	1,257,429,514.27

48. Sales expenses

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Labor cost	3,201,553,137.07	3,226,863,820.05
After-sales service expense	317,453,694.36	321,017,615.54
Transportation and vehicle expenses	52,881,241.84	49,041,851.21
Marketing expense	527,292,675.53	457,846,542.52
Administrative expenses	172,778,528.19	150,970,949.50
Traveling expense	295,323,610.34	284,949,589.16
Business entertainment	250,886,259.63	250,873,194.98
Taxation and insurance expense	51,716,229.07	112,356,918.50
Communication expense	24,597,267.10	25,008,755.46
Knowledge resource fee	49,818,336.36	55,724,443.18
Depreciation cost and asset amortization	173,793,863.72	175,742,287.43
Others	48,638,494.74	53,123,450.32
Total	5,166,733,337.95	5,163,519,417.85

Other notes:

Since 2024, the Company has implemented the provisions of "Interpretation No. 18 of the Accounting Standards forBusiness Enterprises" on "Accounting Treatment of Guarantee-Type Quality Assurances that Do Not Belong to SinglePerformance Obligations", and adjusted the amount of sales expenses in the previous period by RMB 129,050,807.84.

49. R&D expenses

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Labor cost	3,679,962,388.01	3,543,375,607.63
Research consumables and service fees	223,156,633.45	172,532,981.67
Depreciation cost and asset amortization	155,396,412.58	117,315,005.47
Traveling expense	57,484,535.70	57,860,404.79
Administrative expenses	42,126,496.50	34,045,660.92
Communication expense	36,042,384.98	28,994,641.13
Others	19,086,714.51	13,124,493.61
Total	4,213,255,565.73	3,967,248,795.22

50. Financial expenses

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Interest expense	45,574,086.20	95,985,194.10
Including: Interest expenses on lease liability	12,307,800.57	14,312,541.58
Less: interest income	420,512,502.16	345,537,378.77
The profit or loss on foreign exchange	-36,740,087.01	-180,137,872.79
Others	21,787,522.36	20,382,067.84
Total	-389,890,980.61	-409,307,989.62

51. Other incomes

Unit: RMB

Sources of other incomes	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Government subsidies	987,842,683.73	932,636,785.62
Input tax credits	8,314,696.17	134,932.81
Handling fee for withholding tax of personal income	6,894,163.10	9,920,044.98
Others	4,059,150.00	75,409.42
Total	1,007,110,693.00	942,767,172.83

52. Income from changes in fair value

Unit: RMB

Source of the income from changes in fair value	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Trading Financial Assets	-206,254,198.57
Transactional financial liabilities	-1,194,709.59	26,590,919.13
Other Non-current Financial Assets	164,033,503.88	101,037,455.74
Total	-43,415,404.28	127,628,374.87

53. Investment income

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Long-term equity investment income measured by equity method	14,958,434.46	-242,631,295.52
Investment income from disposal of long-term equity investment	106,248,112.69	4,777,818,657.97
Investment income from trading financial assets during the holding period	1,243,275.00

Investment income from disposal of trading financial assets	335,321,351.24	-44,929,416.02
Gain on debt restructuring	-394,660.00	-16,242,445.24
Investment income of other non-current financial assets during the holding period	6,235,327.82	11,870,549.61
Investment income from disposal of other non-current financial assets		10,370,120.76
Investment income from national debt reverse repurchase	2,275,761.53	1,256,871.91
Profits from recognition termination of financial assets	-1,068,904.15	-1,539,231.44
Total	464,818,698.59	4,495,973,812.03

54. Credit impairment loss

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Bad debt losses of notes receivable	2,507,175.29	17,555,335.92
Bad debt losses of accounts receivable	-476,978,994.38	-415,017,021.55
Bad debt losses of other receivables	-16,657,632.76	-997,713.81
Bad debt losses of long-term receivables	3,144,266.49	-13,997,717.99
Total	-487,985,185.36	-412,457,117.43

55. Asset impairment losses

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
I. Loss from impairment of inventories and impairment of performance cost	-111,546,305.16	-176,434,382.90
II. Impairment losses on contract assets	3,786,866.34	1,920,067.16
Total	-107,759,438.82	-174,514,315.74

56. Asset disposal income

Unit: RMB

Sources of the asset disposal income	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Income from disposal of fixed assets	750,706.46	1,679,018.49
Income from the disposal of right-of-use assets	54,978.20	328,779.90
Total	805,684.66	2,007,798.39

57. Non-operating revenue

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period	Amount recorded into non-recurring profit and loss in current period
Gains and losses of non-current asset retirement	1,909,799.81	1,229,426.37	1,909,799.81
Others	17,119,047.45	12,299,567.88	17,119,047.45
Total	19,028,847.26	13,528,994.25	19,028,847.26

58. Non-operating expenditures

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period	Amount recorded into non-recurring profit and loss in current period
Donations	602,799.95	1,103,243.16	602,799.95
Gains and losses of non-current asset retirement	4,615,137.70	2,072,054.17	4,615,137.70
Water conservancy fund	643,752.02	441,570.13
Others	3,694,992.23	29,232,164.80	3,694,992.23
Total	9,556,681.90	32,849,032.26	8,912,929.88

59. Income tax expense

(1) Income tax expense statement

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Current income tax expense	-63,939,616.18	895,325,041.21
Deferred income tax expense	134,236,898.79	-248,886,869.12
Total	70,297,282.61	646,438,172.09

(2) Adjustment process of accounting profit and income tax expenses

Unit: RMB

Item	Amount Occurred in the Current Period
Total Profit	2,989,469,554.64
Income tax expense calculated at statutory/applicable tax rate	448,420,433.20
Impact by applying different tax rates to subsidiaries	190,317,754.16
Impact of income tax before adjustment in this period	-225,786,901.71
Impact of Non-taxable Revenue	4,991,178.82
Impact of the non-deductible costs, expenses and losses	88,362,116.88
Impact of Deductible Losses from Unrecognized Deferred	-1,258,087.22

Income Tax Assets in the Previous Period
Impact of Deductible Temporary Difference or Deductible Losses from Unrecognized Deferred Income Tax Assets in the Current Period	44,203,547.34
Impact of additional deduction of the research and development expenses	-551,837,631.46
Others	72,884,872.60
Income tax expense	70,297,282.61

60. Items of Cash Flow Statement

(1) Cash relating to operating activities

Other cash receipts relating to operating activities

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Interest Income	311,169,510.84	273,381,345.10
Government subsidies	1,007,312,023.68	994,760,820.70
Tender and performance guarantee deposit	38,622,713.36	123,948,827.72
Incomings and outgoings and advances	32,317,680.72	7,613,025.25
House rent	84,103,431.19	35,110,365.69
Others	20,250,244.29	24,118,990.28
Total	1,493,775,604.08	1,458,933,374.74

Other cash payments relating to operating activities

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Administrative expenses	387,304,151.79	336,994,816.98
Communication expense	93,408,717.03	79,071,144.89
Business entertainment	254,060,537.50	262,962,826.23
Traveling expense	378,225,110.07	360,761,388.26
Marketing expense	497,681,768.61	446,017,073.08
Transportation and vehicle expenses	65,262,630.58	78,953,292.07
Knowledge resource fee	156,764,703.37	204,781,766.16
Research and development consumption and external inspection fee	123,900,001.82	102,571,135.69
Taxation and insurance expense	45,882,692.80	65,040,612.10
Tender and performance guarantee deposit	83,206,276.39	76,473,405.90
Incomings and outgoings and advanced payments	38,804,513.85	17,324,949.79
Consumables and service fees	341,769,894.49	275,055,483.06
Others	43,952,068.98	38,668,797.11
Total	2,510,223,067.28	2,344,676,691.32

(2) Cash relating to investing activities

Other cash receipts relating to investing activities

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Receipts of cash from forward exchange contracts	22,337,798.22	40,049,759.39
Recovered frozen funds relating to the investment	10,407,241.34	9,762,136.70
Net cash paid for acquisition of subsidiaries	7,763,130.61
Receipts of loans from non-financial institutions	4,683,641.32
Total	45,191,811.49	49,811,896.09

Significant cash receipts relating to investing activities

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Cash received from the transfer of equity/stock.	509,194,753.99	3,518,796,019.54
Recovery of national debt reverse repurchase investment	14,884,041,418.30	1,221,761,539.51
Total	15,393,236,172.29	4,740,557,559.05

Other cash payments related to investing activities

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Cash paid for forward exchange contracts	1,451,036.60	84,979,175.41
Paid frozen funds relating to the investment	5,167,105.34	1,058,404.69
Total	6,618,141.94	86,037,580.10

Significant cash payments related to investing activities

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Purchase of large-denomination certificates of deposit	4,330,850,703.38
Investment income from national debt reverse repurchase.	15,154,408,876.40	1,038,336,000.00
Total	19,485,259,579.78	1,038,336,000.00

(3) Cash relating to financing activities

Other cash receipts related to financing activitiesNoneOther cash payments related to financing activities

Unit: RMB

Item

Amount Occurred in the Current Period

Amount Occurred in the Previous Period

Leasing fees paid	158,146,419.17	171,319,524.76
Listing fees		3,312,739.06
Cash paid for purchasing minority equity	40,436,077.68	14,647,000.00
Equity repurchase cash paid	17,418,988.80	679,455,441.73
Others	2,620.98
Total	216,004,106.63	868,734,705.55

Changes in liabilities arising from financing activities?Applicable □ Not applicable

Unit: RMB

Item	Opening Balance	Increased in the current period		Decreased in the current period		Closing Balance
		Changes in cash	Non-cash changes	Changes in cash	Non-cash changes
Short-term loan	957,426,330.18	2,314,437,200.00	343,668.00	2,277,202,698.18	4,500.00	995,000,000.00
Long-term loan
Dividends Payable	23,667,047.02		1,853,061,050.97	1,851,784,586.09	1,991,951.67	22,951,560.23
Lease liabilities	176,580,049.57		89,602,750.25	34,641,180.33	117,227,812.08	114,313,807.41
Non-current Liabilities Due within 1 Year	901,722,028.75		117,227,812.08	901,722,028.75		117,227,812.08
Other payables (restricted share repurchase obligations)	326,740,652.18			17,418,988.80	164,626,350.02	144,695,313.36
Total	2,386,136,107.70	2,314,437,200.00	2,060,235,281.30	5,082,769,482.15	283,850,613.77	1,394,188,493.08

61. Supplementary information about the cash flow statement

(1) Supplementary information about the Cash Flow Statement

Unit: RMB

Supplementary information	Amount of this period	Amount of Previous Period
1． Reconciliation of net profit to cash flows from operational activities
Net Profit	2,919,172,272.03	7,475,267,485.55
Add: provision for impairment of assets	595,744,624.18	586,971,433.17
Depreciation of fixed assets, oil and gas assets, productive biological assets	611,795,984.29	564,909,376.16
Depreciation of Right-of-use Assets	144,045,931.05	140,445,508.21
Amortization of Intangible Assets	39,185,300.46	44,713,796.99

Amortization of long-term deferred expenses	66,984,132.00	59,882,170.69
Losses on disposal of fixed assets, intangible assets and other long-term assets (mark "-" for incomes)	-805,684.66	-2,007,798.39
Losses on scrapping of fixed assets (mark "-" for incomes)	2,705,337.89	842,627.80
Losses on fair value changes (mark "-" for incomes)	43,415,404.28	-127,628,374.87
Financial expenses (mark "-" for incomes)	8,833,999.19	-84,152,678.69
Losses on investment (mark "-" for incomes)	-466,282,262.74	-4,513,755,488.71
Decrease on deferred income tax assets (mark "-" for increases)	166,676,397.92	-188,315,504.30
Increase on deferred income tax liabilities (mark "-" for decreases)	-31,911,987.74	-65,033,545.41
Decrease on inventories (mark "-" for increases)	-24,264,745.21	1,804,686,410.40
Decrease on operational receivables (mark "-" for increases)	-889,965,851.98	-650,869,567.85
Increase on operational payables (mark "-" for decreases)	-507,711,956.51	-747,867,775.81
Others	32,620,714.85	300,690,579.53
Net cash flow generated by operating activities	2,710,237,609.30	4,598,778,654.47
2． Major investing and financing activities that do not involve cash receipts and payment
Conversion of Debt into Capital
Convertible corporate bond within 1 year
Fixed Assets under Finance Lease
3． Net changes in cash and cash equivalents:
Closing balance of cash	11,061,530,816.28	15,880,659,594.95
Less: opening balance of cash	15,880,659,594.95	7,878,465,052.63
Add: closing balance of cash equivalents
Less: opening balance of cash equivalents
Net Increase in Cash and Cash Equivalents	-4,819,128,778.67	8,002,194,542.32

(2) Net cash acquired from the acquisition of subsidiaries in this period

Unit: RMB

	Amount
Cash or cash equivalents used for the acquisition that occurred in this period and paid in this period.	12,269,004.98
Including:
Dahua Technology Italy S.R.L.	12,269,004.98
Net cash paid for acquisition of subsidiaries	12,269,004.98

(3) Net cash from disposal of subsidiaries in this period

Unit: RMB

	Amount
Cash or cash equivalents paid for disposal of subsidiaries in the current period	85,260,000.00
Including:
Dahua Technology USA Inc.	85,260,000.00
Deduct: Cash and cash equivalents held by subsidiaries on the day of loss of control	12,081,703.52
Including:
Dahua Technology USA Inc.	12,081,703.52
Add: Cash or cash equivalents received from disposal of subsidiaries in previous periods in this period	17,034,505.40
Including:
Lorex corporation, Lorex Technology UK Limited, Lorex Technology Inc.	17,034,505.40
Net cash paid for disposal of subsidiaries	90,212,801.88

(4) Composition of cash and cash equivalents

Unit: RMB

Item	Closing Balance	Opening Balance
Ⅰ. Cash	11,061,530,816.28	15,880,659,594.95
Including: cash on hand	2,584.78	2,642.58
Bank deposit for payment at any time	10,902,292,934.60	15,806,616,028.36
Other monetary funds for payment at any time	159,235,296.90	74,040,924.01
II. Balance of Cash and Cash Equivalents at the End of the Period	11,061,530,816.28	15,880,659,594.95

(5) Monetary funds that are not cash and cash equivalents

Unit: RMB

Item	Amount of this period	Amount of Previous Period	Reasons for not being cash and cash equivalents
Other Cash and Bank Balances	75,635,853.99	68,981,082.99	Guarantee letter security deposit, restricted use
Bank Balance	31,940,849.28	6,862,600.24	Frozen funds, restricted

			use
Bank Balance	12,695,904.28	14,501,836.29	Unexpired bank deposit interest is shown in monetary funds
Total	120,272,607.55	90,345,519.52

62. Monetary Items in Foreign Currencies

(1) Monetary items in foreign currencies

Unit: RMB

Item	Closing balance in foreign currencies	Exchange rate for conversion	Closing Balance Converted into RMB
Cash and Bank Balances
Including: USD	302,945,067.52	7.1884	2,177,690,323.36
EUR	72,596,198.90	7.5257	546,337,214.06
HKD	141,601,452.69	0.9260	131,128,240.15
AED	39,432,308.16	1.9711	77,726,599.91
PLN	28,100,554.52	1.7597	49,449,388.81
BRL	39,111,415.22	1.1635	45,507,304.95
Total amount of other currencies			372,494,266.18
Accounts receivable
Including: USD	567,938,848.26	7.1884	4,082,571,616.81
EUR	122,045,359.28	7.5257	918,476,760.36
HKD	1,498,766.22	0.9260	1,387,913.56
INR	8,227,047,886.96	0.0840	691,376,449.38
AED	146,274,028.26	1.9711	288,326,588.06
AUD	27,890,635.91	4.5070	125,703,096.05
Total amount of other currencies			642,465,111.12
Long-term loan
Including: USD
EUR
HKD
Accounts Payable
Including: USD	115,702,072.70	7.1884	831,712,779.40
INR	2,632,777,282.93	0.0840	221,250,712.88
EUR	2,644,940.08	7.5257	19,905,025.56
AED	2,885,997.32	1.9711	5,688,704.76
IDR	12,289,595,439.28	0.0005	5,544,745.38
HUF	248,255,889.11	0.0183	4,542,767.59
Total amount of other currencies			19,210,626.48

(2) Notes on overseas business entities, including that for the important overseas businessentities, the overseas main premises, functional currency and selection basis shall bedisclosed. If there are changes on its functional currency, the causes for the changes shall bedisclosed as well.?Applicable □ Not applicableSince the overseas business entity of the Company, Dahua Technology (HK) Limited, does not have autonomy overits business activities, which are the extension of the business activities of the Company, constituting the businessactivities of the Company, RMB shall be used as its functional currency; for the rest of the overseas business entities,the currencies corresponding to the main economic environment in which they operate shall determine their respectivefunctional currencies.

63. Lease

(1) The Company as a lessee

?Applicable □ Not applicableVariable lease payments not included in the measurement of lease liabilities

□ Applicable ?Not applicable

Simplified rental expenses for short-term leases or low-value asset leases?Applicable □ Not applicable

Item	Amount of this period	Amount of Previous Period
Interest expenses on lease liabilities	12,307,800.57	14,312,541.58

Simplified rental expenses for short-term leases orlow-value asset leases included in the cost of relatedassets or current profit or loss

Simplified rental expenses for short-term leases or low-value asset leases included in the cost of related assets or current profit or loss	73,151,916.01	59,174,978.85
Total cash outflows relating to leases	231,298,335.18	230,494,503.61

Sale and leaseback transactionNone

(2) The Company as the lessor

As the lessor in operating leases?Applicable □ Not applicable

Unit: RMB

Item	Rental income	Income from the variable lease payments that are not included in the lease receivables.
House leasing	83,688,686.98
Equipment leasing	66,066,283.15
Total	149,754,970.13

As the lessor in financial leases

□ Applicable ?Not applicable

Undiscounted lease receipts for each of the next five years

□ Applicable ?Not applicable

(3) Recognition of profits and losses on sales under finance leases as a manufacturer ordistributor

□ Applicable ?Not applicable

VIII. R&D expenditures

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Labor cost	3,679,962,388.01	3,543,375,607.63
Research consumables and service fees	223,156,633.45	172,532,981.67
Depreciation cost and asset amortization	155,396,412.58	117,315,005.47
Traveling expense	57,484,535.70	57,860,404.79
Administrative expenses	42,126,496.50	34,045,660.92
Communication expense	36,042,384.98	28,994,641.13
Others	19,086,714.51	13,124,493.61
Total	4,213,255,565.73	3,967,248,795.22
Including: Expenses for R&D expenditures	4,213,255,565.73	3,967,248,795.22

IX. Changes in the Scope of Consolidation

1. No business consolidation not under common control in the current period

2. No business consolidation under common control during this period

3. Disposal of subsidiaries

Are there any transactions or events that lose control of subsidiaries in the current period??Yes □No

Unit: RMB

Name of Subsidiaries

Disposal price at time point of loss of control

Proportion of disposals at time point of loss of control

Disposal method at time point of loss of control

Time point of loss of control

Basis for determining the time point of loss of control

The difference between the disposal price and the share of the net assets of the

Proportion of remaining equity on the day of loss of control

The book value of the remaining equity at the consolidated financial statement level

The fair value of remaining equity at the consolidated financial statement level

Gain or loss from re-measurement of residual equity at fair value

Determination method and main assumptions of the fair value of remaining

The amount of other comprehensive income related to equity investments in

subsidiary enjoyed at the consolidated financial statement level corresponding to the disposal of investment

on the day of loss of control

on the day of loss of control

equity at the consolidated financial statement level on the day of loss of control

subsidiary companies and transferred to investment profit or loss or retained earnings

Dahua Technology USA Inc.

$15,000,000.00

100.00%

Equity transfer

January 12, 2024

Signing of equity transfer agreement and completion of property rights delivery

118,108,767.34

-11,860,654.65

Is the investment in subsidiaries disposed of step by step through multiple transactions or losing the right of control inthe current period?

□ Yes ?No

4. Changes in the Scope of Consolidation for Other Reasons

Explanations on the changes in the scope of consolidation caused by other reasons (for example, newly establishedsubsidiaries, subsidiaries clearing, etc.) and relevant information:

(1) In the current period, the Company founded a total of 14 domestic and overseas subsidiaries through investmentestablishment and other means, including Qingdao Dahua Ruifa Intelligent Internet of Things Technology Co., Ltd.,Shandong Dahua Digital Intelligence Technology Co., Ltd., Fujian Dahua Qingchuang Digital Technology Co., Ltd.,Jilin Dahua Zhilian Technology Co., Ltd., Zhengzhou Airport Economy Zone Huaao Technology Co., Ltd., HainanDahua Huizhi Technology Co., Ltd., PT IMOU TEKNOLOGI INDONESIA, PT IMOU INDONESIA SENANTIASA, HirigeTechnology Malaysia Sdn. Bhd., Dahua Technology Egypt LLC, DAHUA TECHNOLOGY AUH FOR SECURITY &SURVEILLANCE - SOLE PROPRIETORSHIP L.L.C., DaHua Ideal Tech, and the enterprises it controls. The abovesubsidiaries were included in the scope of consolidation in the current period.

(2) The Company's subsidiaries, Yunnan Zhili Technology Co., Ltd. and Wuhu Huajian Technology Co., Ltd. werewritten off in the current period and they will be no longer included in the scope of consolidation as of the date of write-off.X. Equity in Other Entities

1. Equity in Subsidiaries

(1) Composition of the enterprise group

Name of Subsidiaries	Registered Capital	Main Place of Business	Registered Address	Business Nature	Shareholding Percentage		Acquisition Method
					Direct	Indirect
Dahua System Engineering	RMB 500 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information	100.00%		Establishment
Dahua Vision Technology	RMB 1,306.81 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information	100.00%		Establishment
Dahua Security Network	RMB 100 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information	100.00%		Establishment
Dahua Ju'an	RMB 10 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information	51.00%		Establishment
Guangxi Dahua Information	RMB 66.80 million	Youjiang District, Baise	Youjiang District, Baise	Electronics and information	100.00%		Establishment
Guangxi Yunlian	RMB 20 million	Qingxiu District, Nanning	Qingxiu District, Nanning	Service	100.00%		Establishment
Hangzhou Xiaohua	RMB 10 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information	78.00%		Establishment
Dahua Zhilian	RMB 1,885.80 million	Fuyang District, Hangzhou	Fuyang District, Hangzhou	Electronics and information	100.00%		Establishment
Dahua investment management	RMB 300 million	Fuyang District, Hangzhou	Fuyang District, Hangzhou	Investment & investment management	100.00%		Establishment
Guangxi Zhicheng	RMB 109.5429 million	Youjiang District, Baise	Youjiang District, Baise	Electronics and information	65.00%		Establishment
Hangzhou Huacheng	RMB 77.905182 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information	32.73% (Note 1)		Establishment
HuaRay Technology	RMB 78.264756 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Sci-tech popularization and application services industry	32.58%		Establishment
Fuyang Hua'ao	RMB 10 million	Fuyang District, Hangzhou	Fuyang District, Hangzhou	Electronics and information	51.00%		Establishment
Huafei Intelligent	RMB 50 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information		100.00%	Establishment

Guizhou Huayi	RMB 22.5 million	Guanshanhu District, Guiyang	Guanshanhu District, Guiyang	Electronics and information	100.00%		Establishment
Guangxi Huacheng	RMB 35.80 million	Wuzhou, Guangxi	Wuzhou, Guangxi	Electronics and information		90.00%	Establishment
Meitan Dahua Technology	RMB 10 million	Zunyi, Guizhou	Zunyi, Guizhou	Electronics and information		100.00%	Establishment
Inner Mongolia Zhimeng	RMB 20 million	New District, Bai County, Chahar Right Wing Back Banner	New District, Bai County, Chahar Right Wing Back Banner	Electronics and information		95.00%	Establishment
Tianjin Dahua	RMB 36 million	Hexi District, Tianjin	Hexi District, Tianjin	Electronics and information		100.00%	Establishment
Dahua Zhilong	RMB 39.48 million	Shuangpai County, Yongzhou City	Shuangpai County, Yongzhou City	Electronics and information		90.00%	Establishment
Vision Technology	RMB 10 million	Fuyang District, Hangzhou City, Zhejiang Province	Fuyang District, Hangzhou City, Zhejiang Province	Electronics and information	100.00%		Establishment
Huaxiao Technology	RMB 70 million	Fuyang District, Hangzhou City, Zhejiang Province	Fuyang District, Hangzhou City, Zhejiang Province	Electronics and information	51.00%		Establishment
Xi'an Dahua	RMB 989.60 million	Xi'an City, Shaanxi Province	Xi'an City, Shaanxi Province	Electronics and information	100.00%		Establishment
Huaruipin	RMB 50 million	Wuxi City, Jiangsu Province	Wuxi City, Jiangsu Province	Electronics and information	51.00%		Establishment
Beijing Huayue	RMB 10 million	Fengtai District, Beijing	Fengtai District, Beijing	Electronics and information	100.00%		Establishment
Shanghai Huashang	RMB 1 million	Putuo District, Shanghai	Putuo District, Shanghai	Electronics and information	100.00%		Establishment
Dahua Jinzhi	RMB 60 million	Wucheng District, Jinhua City, Zhejiang Province	Wucheng District, Jinhua City, Zhejiang Province	Electronics and information	100.00%		Establishment
Zhoushan Operation	RMB 100 million	Zhoushan City, Zhejiang Province	Zhoushan City, Zhejiang Province	Electronics and information	62.40%		Establishment
Guangxi Dahua Technology	RMB 100 million	Liuzhou City, Guangxi Zhuang Autonomous Region	Liuzhou City, Guangxi Zhuang Autonomous Region	Electronics and information	100.00%		Establishment
Huayixin	RMB 80 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information	51.00%		Establishment
Huaruijie	RMB 150 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Automotive Electronics	51.00%		Establishment

Chengdu Zhilian	RMB 600 million	Longquanyi District, Chengdu	Longquanyi District, Chengdu	Electronics and information	100.00%		Establishment
Chengdu Zhian	RMB 554.70 million	Longquanyi District, Chengdu	Longquanyi District, Chengdu	Electronics and information	100.00%		Establishment
Chengdu Zhishu	RMB 50 million	Longquanyi District, Chengdu	Longquanyi District, Chengdu	Electronics and information	100.00%		Establishment
Chengdu Zhichuang	RMB 15 million	Longquanyi District, Chengdu	Longquanyi District, Chengdu	Electronics and information	100.00%		Establishment
Chengdu Smart Network	RMB 50 million	Dayi County, Chengdu	Dayi County, Chengdu	Electronics and information	90.00%		Establishment
Huakong Software	RMB 50 million	Wuyi County, Jinhua City	Wuyi County, Jinhua City	Electronics and information	100.00%		Establishment
Huacheng Software	RMB 30 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information		100.00%	Establishment
Henan Dahua	RMB 30 million	Zhengzhou, Henan	Zhengzhou, Henan	Electronics and information	100.00%		Establishment
Huajian	RMB 50 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information	45% (Note 2)		Establishment
Zhengzhou Dahua Zhian	RMB 30 million	Zhengzhou, Henan	Zhengzhou, Henan	Electronics and information	100.00%		Establishment
Dahua International	RMB 1 million	Singapore	Singapore	Electronics and information	100.00%		Establishment
Anhui Zhilian	RMB 30 million	Hefei, Anhui	Hefei, Anhui	Electronics and information	100.00%		Establishment
Anhui Zhishu	RMB 30 million	Hefei, Anhui	Hefei, Anhui	Electronics and information	100.00%		Establishment
Changsha Dahua	RMB 100 million	Changsha, Hunan	Changsha, Hunan	Electronics and information	100.00%		Establishment
Tianjin Huajian	RMB 30 million	Hexi District, Tianjin	Hexi District, Tianjin	Electronics and information		100.00%	Establishment
Zhejiang Pixfra	RMB 442.140448 million	Xiaoshan District, Hangzhou	Xiaoshan District, Hangzhou	Electronics and information	75.11%		Establishment
Yiwu Huaxi	RMB 10 million	Yiwu City, Zhejiang Province	Yiwu City, Zhejiang Province	Electronics and information		100.00%	Establishment
Dahua Operation	RMB 100 million	Xiaoshan District, Hangzhou	Xiaoshan District, Hangzhou	Electronics and information	100.00%		Establishment
Nanyang Intelligent	RMB 10 million	Nanyang City, Henan Province	Nanyang City, Henan Province	Electronics and information	100.00%		Establishment
Yibin Huahui	RMB 20 million	Yibin City, Sichuan Province	Yibin City, Sichuan Province	Electronics and information	100.00%		Establishment
Chengdu Huazhiwei	RMB 10 million	Chengdu City, Sichuan Province	Chengdu City, Sichuan Province	Electronics and information	100.00%		Establishment
IMOU Xi'an	RMB 20 million	Xi'an City, Shaanxi Province	Xi'an City, Shaanxi Province	Electronics and information		100.00%	Establishment

Luoyang Zhiyu	RMB 10 million	Luoyang City, Henan Province	Luoyang City, Henan Province	Electronics and information	100.00%		Establishment
Huaqi Intelligence	RMB 100 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information		100.00%	Establishment
Chengdu Information	RMB 20 million	Chongzhou City, Chengdu City	Chongzhou City, Chengdu City	Electronics and information	100.00%		Establishment
HJ Technology	RMB 20 million	Binjiang District, Hangzhou	Binjiang District, Hangzhou	Electronics and information		100.00%	Business combination not under common control
Shuhang Intelligent	RMB 10 million	Xiaoshan District, Hangzhou	Xiaoshan District, Hangzhou	Electronics and information		100.00%	Establishment
Huaxiyue	RMB 10 million	Haizhu District, Guangzhou	Haizhu District, Guangzhou	Electronics and information	100.00%		Establishment
Huajie Operation	RMB 50 million	Xiaoshan District, Hangzhou	Xiaoshan District, Hangzhou	New energy operations		100.00%	Establishment
Qingdao Ruifa	RMB 7 million	Qingdao, Shandong	Qingdao, Shandong	Electronics and information		100.00%	Establishment
Shandong Digital Intelligence	RMB 10 million	Jinan, Shandong	Jinan, Shandong	Electronics and information		100.00%	Establishment
Fujian Qingchuang	RMB 10 million	Qingliu County, Fujian	Qingliu County, Fujian	Electronics and information		100.00%	Establishment
Jilin Zhilian	RMB 10 million	Changchun, Jilin Province	Changchun, Jilin Province	Electronics and information		100.00%	Establishment
Zhengzhou Huaao	RMB 10 million	Zhengzhou, Henan	Zhengzhou, Henan	Electronics and information		100.00%	Establishment
Hainan Huizhi	RMB 10 million	Hainan Province	Hainan Province	Electronics and information		100.00%	Establishment
Dahua Hong Kong	RMB 669.687347 million	Hong Kong	Hong Kong	Electronics and information	100.00%		Establishment
Dahua Europe	EUR 200,000	Netherlands	Netherlands	Electronics and information		100.00%	Establishment
Dahua Middle East	AED 1 million	United Arab Emirates	United Arab Emirates	Electronics and information		100.00%	Establishment
Dahua Mexico	MXN 90 million	Mexico	Mexico	Electronics and information		100.00%	Establishment
Dahua Chile	CLP 360 million	Chile	Chile	Electronics and information		100.00%	Establishment
Dahua Colombia	COP 4616.709016 million	Columbia	Columbia	Electronics and information		100.00%	Establishment
Dahua Australia	AUD 150,000	Australia	Australia	Electronics and information		100.00%	Establishment

Dahua Singapore	USD 220,000	Singapore	Singapore	Electronics and information		100.00%	Establishment
Dahua South Africa	ZAR 5 million	South Africa	South Africa	Electronics and information		100.00%	Establishment
Dahua Peru	PEN 2.2 million	Peru	Peru	Electronics and information		100.00%	Establishment
Dahua Brazil	BRL 41.334811 million	Brazil	Brazil	Electronics and information		100.00%	Establishment
Dahua Russia	RUB 30 million	Russia	Russia	Electronics and information		100.00%	Establishment
Dahua Canada	CAD 250,000	Canada	Canada	Electronics and information		100.00%	Establishment
Dahua Panama	USD 10,000	Panama	Panama	Electronics and information		100.00%	Establishment
Dahua Hungary	HUF 303 million	Hungary	Hungary	Electronics and information		100.00%	Establishment
Dahua Poland	PLN 2.2 million	Poland	Poland	Electronics and information		100.00%	Establishment
Dahua Tunisia	USD 89,000	Tunisia	Tunisia	Electronics and information		100.00%	Establishment
Dahua Kenya	KES 15 million	Kenya	Kenya	Electronics and information		100.00%	Establishment
Dahua UK	GBP 100,000	UK	UK	Electronics and information		100.00%	Establishment
Dahua Bulgaria	BGN 350,000	Bulgaria	Bulgaria	Electronics and information		100.00%	Establishment
Dahua Serbia	RSD 23 million	Serbia	Serbia	Electronics and information		100.00%	Establishment
Dahua Germany	EUR 150,000	Germany	Germany	Electronics and information		100.00%	Establishment
Dahua Malaysia	1,000,000 Malaysian Ringgit	Malaysia	Malaysia	Electronics and information		100.00%	Establishment
Dahua Korea	KRW 1,500 million	South Korea	South Korea	Electronics and information		100.00%	Establishment
Dahua Indonesia	IDR 2,600 million	Indonesia	Indonesia	Electronics and information		100.00%	Establishment
Dahua India	INR 234 million	India	India	Electronics and information		100.00%	Establishment
Dahua Turkey	TRY 840,000	Turkey	Turkey	Electronics and information		100.00%	Establishment
Dahua Czech	CZK 5.4 million	Czech Republic	Czech Republic	Electronics and information		100.00%	Establishment
Dahua Argentina	ARS 49,686,361	Argentina	Argentina	Electronics and		100.00%	Establishment

				information
Dahua Spain	EUR 150,000	Spain	Spain	Electronics and information		100.00%	Establishment
Dahua Kazakhstan	KZT 23 million	Kazakhstan	Kazakhstan	Electronics and information		100.00%	Establishment
Dahua Denmark	DKK 1.5 million	Denmark	Denmark	Electronics and information		100.00%	Establishment
Dahua France	EUR 100,000	France	France	Electronics and information		100.00%	Establishment
Dahua Technology Holdings	HKD 500,000	Hong Kong	Hong Kong	Electronics and information	100.00%		Establishment
Dahua Morocco	AED 500,000	Morocco	Morocco	Electronics and information		100.00%	Establishment
Dahua Italy	EUR 12,000	Italy	Italy	Electronics and information		100.00%	Business combination not under common control
Dahua Uzbekistan	UZS 3,200	Uzbekistan	Uzbekistan	Electronics and information		100.00%	Establishment
Dahua Netherlands	EUR 10,000	Netherlands	Netherlands	Electronics and information		100.00%	Establishment
Dahua Sri Lanka	LKR 48 million	Sri Lanka	Sri Lanka	Electronics and information		100.00%	Establishment
Dahua Pakistan	PKR 20 million	Pakistan	Pakistan	Electronics and information		100.00%	Establishment
Dahua New Zealand	NZD 300,000	New Zealand	New Zealand	Electronics and information		100.00%	Establishment
Dahua Thailand	THB 25 million	Thailand	Thailand	Electronics and information		99.98%	Establishment
Dahua Romania	RON 1 million	Romania	Romania	Electronics and information		100.00%	Establishment
Dahua Nigeria	NGN 100 million	Nigeria	Nigeria	Electronics and information		100.00%	Establishment
Dahua Israel	USD 300,000	Israel	Israel	Electronics and information		100.00%	Establishment
Dahua Mexico Service	MXN 50,000	Mexico	Mexico	Electronics and information		100.00%	Establishment
Huacheng Netherlands	EUR 900,000	Netherlands	Netherlands	Electronics and information		100.00%	Establishment
Dahua Japan	JPY 6 million	Japan	Japan	Electronics and information		100.00%	Establishment
Dahua Qatar	QAR 2.184 million	Qatar	Qatar	Electronics and information		100.00%	Establishment

Explanations on the fact that the proportion of the shares held by a subsidiary differs from that of voting rights:

Huacheng Hong Kong	HKD 12.023 million	Hong Kong	Hong Kong	Electronics and information		100.00%	Establishment
Dahua Pacific	USD 10,000	Panama	Panama	Electronics and information		100.00%	Establishment
Dahua Saudi Arabia	SAR 500,000	Saudi Arabia	Saudi Arabia	Electronics and information		100.00%	Establishment
Dahua Bengal	BDT 5 million	Bangladesh	Bangladesh	Electronics and information		100.00%	Establishment
IMOU Australia	AUD 147,606	Australia	Australia	Electronics and information		100.00%	Establishment
IMOU Vietnam	VND 18,569.6 million (USD 800,000)	Vietnam	Vietnam	Electronics and information		100.00%	Establishment
HuaRay Singapore	USD 100,000	Singapore	Singapore	Electronics and information		100.00%	Establishment
HuaRay Korea	KRW 100 million	South Korea	South Korea	Electronics and information		100.00%	Establishment
HuaRay Germany	EUR 25,000	Germany	Germany	Electronics and information		100.00%	Establishment
Dahua Belgium Co.	EUR 100,000	Belgium	Belgium	Electronics and information		100.00%	Establishment
Dahua Saudi Arabia Co.	SAR 750,000	Saudi Arabia	Saudi Arabia	Electronics and information		100.00%	Establishment
Dahua Argentina Co.	USD 200,000	Azerbaijan	Azerbaijan	Electronics and information		100.00%	Establishment
Dahua Vietnam Co., Ltd.	VND 2,363.6 million	Vietnam	Vietnam	Electronics and information		100.00%	Establishment
Dahua Angola	AOA 176.303 million	Angola	Angola	Electronics and information		100.00%	Establishment
IMOU Teknologi Indonesia	IDR 10 billion	Indonesia	Indonesia	Electronics and information		100.00%	Establishment
IMOU Indonesia Senantiasa	IDR 10 billion	Indonesia	Indonesia	Electronics and information		100.00%	Establishment
Hirige MaLaysia	2,000.00 Malaysian Ringgit	Malaysia	Malaysia	Electronics and information		100.00%	Establishment
Dahua Egypt	USD 100,000	Egypt	Egypt	Electronics and information		100.00%	Establishment
DAHUA Abu Dhabi	AED 100,000	Abu Dhabi	Abu Dhabi	Electronics and information		100.00%	Establishment

(1) The Company directly holds 32.7321% equity in Hangzhou Huacheng Network Technology Co., Ltd., and asagreed upon, Ningbo Huayu Investment Management Partnership (Limited Partnership) grants 31.0505% of its votingrights to the Company. The Company effectively holds 63.7826% of the voting rights in Hangzhou Huacheng NetworkTechnology Co., Ltd., which constitutes working control so as to incorporate it into the scope of consolidation.

(2) The Company directly holds 45% equity in Zhejiang Huajian Technology Co., Ltd., and as agreed upon, NingboHualing Venture Capital Investment Partnership (Limited Partnership) grants 35% of its voting rights to the Company.The Company effectively holds 80% of the voting rights in Zhejiang Huajian Technology Co., Ltd., which constitutesworking control so as to incorporate it into the scope of consolidation.Basis for holding half or less of the voting rights but still controlling the investee, and holding more than half of thevoting rights but not controlling the investee:

As of December 31, 2024, the Company held 32.58% equity in Zhejiang HuaRay Technology Co., Ltd. and theCompany was the largest shareholder of HuaRay Technology. The remaining shareholders had a low and dispersedshareholding ratio, therefore, was incorporated into the scope of consolidation.

2. The transactions that lead to changes in the shareholder's equity in the subsidiaries whilestill has working control over the subsidiary

(1) Explanation of the changes in the shareholder's equity in the subsidiaries

1) In January 2024, the Company acquired 25% equity in Zhejiang Dahua Investment Management Co., Ltd. held byZhejiang Huashi Investment Management Co., Ltd. for a consideration of RMB 23.109 million, and the Company'sshareholding in Dahua Investment Management Co. increased from 75% to 100% after the acquisition, and DahuaInvestment Management Co. became a wholly-owned subsidiary of the Company.

2) In February 2024, the Company transferred 60.50% equity in Huafei Intelligence to its subsidiary Zhejiang HuajianTechnology Co., Ltd. for a consideration of RMB 42.9098 million, and at the same time, Huafei Intelligence’s originalminority shareholder Ningbo Hualing Venture Capital Investment Partnership (Limited Partnership) transferred 39.5%equity in Huafei Intelligence to Zhejiang Huajian for a consideration of RMB 28.0155 million. After that, HuafeiIntelligence became a wholly-owned subsidiary of Zhejiang Huajian. The Company holds 45% equity in ZhejiangHuajian, with the voting right of 80%, so Company's shareholding in Huafei Intelligence has changed from 60.50% to45%, and Huafei Intelligence remains a subsidiary of the Company and is incorporated into the scope of consolidation.

3) In December 2024, the Company acquired 3.60% of the equity of Phone World Communications Group Co., Ltd., ashareholder of its subsidiary Zhoushan Operation, for a consideration of RMB 1,039,176.00. After the equity transfer,the Company's shareholding ratio in Zhoushan Operation increased from 58.80% to 62.40%. Zhoushan Operation isstill a subsidiary of the Company and is included in the scope of consolidation.

(2) The effect of the transactions on the equity of the minority shareholders and the shareholder's equityattributable to the parent company

Unit: RMB

	Investment Management Company	Huafei Intelligent	Zhoushan Operation
Purchase cost/Disposal	23,109,000.00	28,015,493.50	1,039,176.00

consideration
-- Cash	23,109,000.00	28,015,493.50	1,039,176.00
-- Fair value of non-cash assets
Purchase cost/ Total disposal consideration	23,109,000.00	28,015,493.50	1,039,176.00
Less: the share of net assets of the subsidiary calculated based on the ratio of equity obtained/disposed	22,887,421.83	26,396,990.00	1,045,855.89
Difference	221,578.17	1,618,503.50	-6,679.89
Among them: adjust the capital reserve	-221,578.17	-1,618,503.50	6,679.89
Adjusted surplus reserve
Adjusted undistributed profits

3. Equity in joint venture arrangements or affiliates

(1) Financial Summary of Non-essential Joint Ventures and Affiliates

Unit: RMB

	Closing balance / current period amount	Opening balance / amount occurred in the previous period
Joint ventures:
The total count of the following items based on the shareholding ratios
Affiliates:
Total book value of investments	722,241,568.57	727,453,629.75
The total count of the following items based on the shareholding ratios
--Net profit	14,958,434.46	-242,631,295.52
--Other comprehensive income	-7,514,266.44	9,013,070.41
--Total comprehensive income	7,444,168.02	-233,618,225.11

XI. Government Subsidies

1. Government grants recognized as accounts receivable at the end of the reporting period

□ Applicable ?Not applicable

Reasons for failure to receive the estimated amount of government subsidy at the estimated time point

□ Applicable ?Not applicable

2. Projects related to government subsidies

?Applicable □ Not applicable

Unit: RMB

Accounting Accounts	Opening Balance	The amount of new subsidies in this period	Amount recorded as non-operating revenue in this period	Amounts transferred to other gains in the current period	Other changes in the current period	Closing Balance	Related to assets/earnings
Deferred Income	151,844,373.02	40,829,317.46		11,448,444.19		181,225,246.29	Related to assets
Deferred Income	14,867,300.02			9,911,533.32		4,955,766.70	Related to income

3. Government subsidies recorded into current profits and losses

?Applicable □ Not applicable

Unit: RMB

Accounting Accounts	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Other Incomes	987,842,683.73	932,636,785.62

XII. Risks Relating to Financial Instruments

1. Various risks arising from financial instruments

The company faces various financial risks in its operations: credit risk, liquidity risk, and market risk (includingexchange rate risk, interest rate risk, and other price risks).The overall objective of the Company's risk management is to formulate risk management policies that can minimizerisks without affecting the Company's competitiveness and adaptability to changes too much.(I) Credit RiskThe credit risk refers to the risk of financial loss to the Company as a result of a counterparty's failure to fulfill itscontractual obligations. The Company is mainly facing with the customer credit risk arising from sales on account.Before signing a new contract, the Company will assess the new customer's credit risk, including external credit ratingand the credibility letter from a bank under some circumstances (if such information is available). The Company hasset a credit limit for sales on account for each customer. Such limit shall be the maximum amount with no additionalapproval needed.The Company ensures that the overall credit risk is within the controllable range through quarterly monitoring of creditratings of existing customers, and monthly review of aging analysis on accounts receivable. When monitoringcustomers' credit risk, the Company groups them according to their credit characteristics. Customers rated as "highrisk" will be placed on the restricted customer list. The Company can provide them with O/A in the future period onlywhen additional approval is obtained. Otherwise they must make relevant payment in advance.

For overseas customers, the Company mainly uses wire transfer as a payment method. According to the creditevaluation of each customer, the Company gives different credit lines and credit account periods, and agrees on thepayment method and account period in the commodity procurement contract between the two parties. After the salesof products, the Company has a dedicated person responsible for tracking, reconciliation, and payment reminding. Inaddition, the Company introduced export credit insurance to ensure that the return risk from overseas customers iswithin controllable range.(II) Liquidity RiskLiquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of settlement by cash orother financial assets.The Company's policy is to ensure that there is sufficient cash to repay the liabilities due. The liquidity risk is under theconcentrated control of the Company's Financial Department. Through monitoring the balance of cash and securitiescashable at any time and rolling forecasting the cash flow in the next 12 months, the Financial Department ensuresthat the Company has sufficient funds to repay its debts under all reasonable predictions.The financial liabilities of the Company are listed as follows based on the undiscounted contractual cash flow:

Item	December 31, 2024
	Within 1 year	1 years or above	Total
Short-term loan	995,000,000.00		995,000,000.00
Notes Payable	3,599,974,242.02		3,599,974,242.02
Accounts Payable	5,877,976,861.13		5,877,976,861.13
Other Payables	637,013,560.05		637,013,560.05
Non-current Liabilities Due within 1 Year	124,348,757.02		124,348,757.02
Lease liabilities		120,670,497.25	120,670,497.25
Total	11,234,313,420.22	120,670,497.25	11,354,983,917.47

Item	December 31, 2023
	Within 1 year	1 years or above	Total
Short-term loan	961,559,707.96		961,559,707.96
Notes Payable	3,296,294,946.26		3,296,294,946.26
Accounts Payable	5,815,123,195.55		5,815,123,195.55
Other Payables	812,424,146.52		812,424,146.52
Non-current Liabilities Due within 1 Year	924,321,195.99		924,321,195.99
Lease liabilities		187,049,189.60	187,049,189.60
Total	11,809,723,192.28	187,049,189.60	11,996,772,381.88

(III) Market RiskThe market risk of financial instruments refers to the risk of fluctuation at fair value of financial instruments or futurecash flows with the change of market prices, including exchange rate risks, interest rate risks and other price risks.

1. Interest rate risk

The interest rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes dueto the change of market interest rate. The interest rate risk faced with by the Company is mainly from bank loans. TheCompany's assets and liabilities relating to interest rate are respectively bank deposits and short-term loans, whoseinterest rate risk is low.

2. Exchange rate risk

The exchange rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes dueto the change of foreign exchange rate. The Company will try its best to match the revenues with the expenses inforeign currency, to lower the exchange rate risk. In addition, the Company may also sign forward foreign exchangecontracts or currency swap contracts to avoid exchange rate risks.The exchange rate risk faced with by the Company is mainly from financial assets and liabilities in USD. The amountsof assets and liabilities in foreign currencies and converted into RMB are listed as below:

Item	Closing Balance			Opening Balance
	USD	Other foreign currencies	Total	USD	Other foreign currencies	Total
Cash and Bank Balances	2,177,690,323.36	1,222,643,014.06	3,400,333,337.42	1,211,603,667.27	3,821,528,161.46	5,033,131,828.73
Accounts receivable	4,082,571,616.81	2,667,735,918.53	6,750,307,535.34	3,780,152,844.06	2,615,801,053.40	6,395,953,897.46
Accounts Payable	831,712,779.40	276,142,582.65	1,107,855,362.05	734,434,093.99	242,813,777.12	977,247,871.11
Total	7,091,974,719.57	4,166,521,515.24	11,258,496,234.81	5,726,190,605.32	6,680,142,991.98	12,406,333,597.30

XIII. Disclosure of Fair Value

1. Fair values of the assets and liabilities at the end of the period

Unit: RMB

Item	Fair values at period-end
	First level measurement at fair value	Second level measurement at fair value	Third level measurement at fair value	Total
I. Constant measurement at fair value	--	--	--	--
(I) Trading Financial Assets	149,726,569.64	80,200,959.64		229,927,529.28
1. Financial assets at fair value through	149,726,569.64	80,200,959.64		229,927,529.28

profit or loss in this period
(1) Investment in equity instruments	149,726,569.64			149,726,569.64
(2) Others		80,200,959.64		80,200,959.64
(II) Receivables Financing		841,815,267.43		841,815,267.43
(III) Other Non-current Financial Assets		1,232,393,960.16	42,303,530.71	1,274,697,490.87
1. Financial assets at fair value through profit or loss in this period		1,232,393,960.16	42,303,530.71	1,274,697,490.87
(1) Investment in debt instrument
(2) Investment in equity instrument			42,303,530.71	42,303,530.71
(3) Derivative Financial Assets
(4) Others		1,232,393,960.16		1,232,393,960.16
Total assets constantly measured at fair value	149,726,569.64	2,154,410,187.23	42,303,530.71	2,346,440,287.58
(IV) Transactional Financial Liabilities		1,058,039.73	3,210,563.79	4,268,603.52
Derivative Financial Liabilities		1,058,039.73		1,058,039.73
Others			3,210,563.79	3,210,563.79
Total amount of liabilities constantly measured at their fair values		1,058,039.73	3,210,563.79	4,268,603.52

2. Basis for determining the market value of continuous and non-continuous third-level fairvalue measurement itemsThe company determines the fair value based on the unadjusted quoted prices of the same assets or liabilities that areavailable at the measurement date in the active market.

3. For the continuous and non-continuous second-level fair value measurement items, thevaluation techniques adopted and the qualitative and quantitative information of importantparametersThe fair value of the derivative financial assets/derivative financial liabilities is measured and recognized with referenceto different parameters determined by the financial institutions on the basis of the market conditions then existing aswell as the remaining term and transaction term of such transaction.Due to the short remaining term of the receivables financing, the book value is close to the fair value, and the nominalamount is used as the fair value.

Other non-current financial assets are valued on the basis of quotations provided by financial institutions.The valuation of trading financial assets is indirectly measured according to the product description.

4. For the continuous and non-continuous third-level fair value measurement items, thevaluation techniques adopted and the qualitative and quantitative information of importantparametersEvaluate the value and net book assets based on the income method and asset-based method.

5. The fair value of financial assets and financial liabilities not measured at fair value

The fair value of financial assets and financial liabilities measured by the Company at amortized cost is equivalent tothe book value.XIV. Related Parties and Related-party Transactions

1. The Company's Parent Company

Name of parent company	Registered Address	Business Nature	Registered Capital	Shareholding ratio of the parent company	Proportion of voting rights of the parent company
Fu Liquan		Controlling shareholders and actual controller		31.07%	31.26%
Chen Ailing		Actual controller		2.16%	2.18%

The final controllers of the Company are Mr. Fu Liquan and Ms. Chen Ailing.

2. Information about the Company's subsidiaries

For details of subsidiaries of the Company, see Note "X. Equities in other entities".

3. Information about the Company's joint ventures and affiliates

For details of important associates or joint ventures of the Company, see Note "X. Equities in other entities".Here is the information about other joint ventures and affiliates that have related-party transactions with the Companyin the current period or have balance from related-party transactions with the Company in the previous period:

Names of joint ventures and affiliates	Relationship with the Company
Intelbras S.A.	Affiliate
Guangdong Zhishi Digital Technology Co., Ltd.	Affiliate
Ruicity Digital Technology Co., Ltd. And its subsidiaries	Affiliate
Dezhou Shuzhi Information Technology Co., Ltd.	Affiliate
Zhejiang Huachuang Vision Technology Co., Ltd.	Affiliate
Ningbo Cida Yongshun Intelligent Technology Co., Ltd.	Affiliate
Guangxi FTZ Huaqin Wisdom Park Technology Research Institute Co., Ltd.	Affiliate
Ningbo Huayan Chuangxi Venture Capital Investment Partnership (Limited Partnership)	Affiliate

4. Information about other related parties

Names of other related parties	Relationship between the Company and other related parties
Zhejiang Huanuokang Technology Co., Ltd. and its subsidiaries	Enterprise controlled by the actual controller
Huayan Capital (Hangzhou) Private Equity Fund Management Co., Ltd.	Enterprise controlled by the actual controller
Zhejiang Hyxi Technology Co., Ltd.	Enterprise controlled by the actual controller
Ningbo Hualing Venture Capital Investment Partnership (Limited Partnership)	Enterprise controlled by the actual controller
Zhejiang Huashi Investment Management Co., Ltd.	Enterprise controlled by the actual controller
Zhejiang Lancable Technology Co., Ltd.	Enterprises where the actual controller has significant influence
Zhejiang Leapmotor Technology Co., Ltd. and its affiliates (Note 1)	Enterprises where the actual controller has significant influence
China Mobile Communications Group Co., Ltd. and its affiliates	Shareholders holding more than 5% of the shares
Beijing Haitian Ruisheng Science Technology Ltd.	Enterprises where the Company’s supervisors serve as directors
Company A and other companies under its control	Related parties
Hangzhou Vision Robot Technology Co., Ltd. (Note 2)	Enterprises with significant influence from shareholders holding more than 5% of the Company's shares
Hangzhou Xintu Technology Co., Ltd. (Note 2)	Enterprises controlled by shareholders holding more than 5% of the company's shares.

Other notes:

Note 1: "Zhejiang Leapmotor Technology Co., Ltd. and its affiliates" includes a total of eight companies that haverelated transactions with the Company, namely Zhejiang Leapmotor Technology Co., Ltd., Leapmotor Automobile Co.,Ltd., Zhejiang Leapmotor Automobile Sales Service Co., Ltd., Jinhua Leapmotor New Energy Automotive PartsTechnology Co., Ltd., Chongqing Lingdi Automobile Sales Service Co., Ltd., Jinhua Lingsheng Technology Co.,Ltd.,Zhejiang Lingsheng Technology Co., Ltd., and Lingxiao Energy Technology (Wuyi) Co., Ltd.Note 2: Hangzhou Vision Robot Technology Co., Ltd. and Hangzhou Xintu Technology Co., Ltd. ended the affiliatedrelationship in April 2024.

5. Information about related-party transactions

(1) Related-party transactions involving purchase and selling of merchandise and provisionand acceptance of labor servicesMerchandise purchase and acceptance of labor services

Unit: RMB

Related parties	Content of the related - party transaction	Amount Occurred in the Current Period	Approved transaction limit	Over the transaction limit or not	Amount Occurred in the Previous Period
Company A and other companies under its control	Purchase of materials	251,120,672.03		No	220,043,806.51
China Mobile Communications	Material procurement,	69,439,293.57		No	65,645,012.10

Group Co., Ltd. and its affiliates	acceptance of services
Zhejiang Huachuang Vision Technology Co., Ltd.	Purchase of materials	41,355,588.69		No	86,413,751.62
Ruicity Digital Technology Co., Ltd. And its subsidiaries	Purchase of materials	8,517,077.21		No	8,967,655.86
Zhejiang Leapmotor Technology Co., Ltd. and its affiliates	Material procurement, acceptance of services	5,890,244.00		No	1,228,401.43
Zhejiang Huanuokang Technology Co., Ltd. and its subsidiaries	Material procurement, acceptance of services	1,753,437.75		No	157,371.67
Intelbras S.A.	Purchase of materials	135,122.60		No
Beijing Haitian Ruisheng Science Technology Ltd.	Acceptance of services	130,230.19		No
Hangzhou Vision Robot Technology Co., Ltd.	Material procurement, acceptance of services	13,301.89		No	174,659.74
Zhejiang Lancable Technology Co., Ltd.	Purchase of materials	2,548.68		No

Sales of merchandise and provision of services

Unit: RMB

Related parties	Content of the related - party transaction	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Intelbras S.A.	Sales of merchandise	1,272,280,696.42	865,178,578.92
Zhejiang Leapmotor Technology Co., Ltd. and its affiliates	Sales of goods and provision of services	405,417,599.67	311,398,339.87
China Mobile Communications Group Co., Ltd. and its affiliates	Sales of goods and provision of services	189,924,499.42	196,450,005.15
Dezhou Shuzhi Information Technology Co., Ltd.	Sales of goods and provision of services	9,665,438.58	2,199,876.09
Ruicity Digital Technology Co., Ltd. And its subsidiaries	Sales of merchandise	6,370,044.11	12,502,503.49
Guangdong Zhishi Digital Technology Co., Ltd.	Sales of merchandise	5,696,670.05	3,635,895.54
Ningbo Cida Yongshun Intelligent Technology Co., Ltd.	Sales of goods and provision of services	2,786,571.83	8,905,782.27

Zhejiang Hyxi Technology Co., Ltd.	Sales of goods and provision of services	2,383,310.22
Zhejiang Huanuokang Technology Co., Ltd. and its subsidiaries	Sales of merchandise	1,628,266.86	1,100,912.16
Zhejiang Huachuang Vision Technology Co., Ltd.	Sales of goods and provision of services	996,525.68	4,227,590.71
Guangxi FTZ Huaqin Wisdom Park Technology Research Institute Co., Ltd.	Sales of merchandise	414,132.75	145,836.73
Hangzhou Xintu Technology Co., Ltd.	Sales of goods and provision of services	1,362.74	5,424.92
Zhejiang Lancable Technology Co., Ltd.	Sales of merchandise	-9,204.38	22,761.06
Company A and other companies under its control	Sales of merchandise		30,913.16
Hangzhou Vision Robot Technology Co., Ltd.	Sales of merchandise		13,761.08

(2) Related leasing

The Company being the lessor:

Unit: RMB

Name of the lessee	Type of the leased assets	Rental income confirmed in this period	Rental income confirmed in the previous period
Zhejiang Hyxi Technology Co., Ltd.	Buildings and constructions	2,231,731.00	738,194.50
Zhejiang Huanuokang Technology Co., Ltd. and its subsidiaries	Buildings and constructions	1,773,201.45	1,875,248.10
Zhejiang Leapmotor Technology Co., Ltd. and its affiliates	Buildings and constructions	268,976.15	268,975.94
Huayan Capital (Hangzhou) Private Equity Fund Management Co., Ltd.	Buildings and constructions	93,212.07	93,489.58
Huayan Capital (Hangzhou) Private Equity Fund Management Co., Ltd.	Transport device	14,115.04
Zhejiang Huachuang Vision Technology Co., Ltd.	Buildings and constructions	20,091.72	20,091.73

The Company being the lessee:

Unit: RMB

Name of the lessor	Type of the leased assets	Simplified rental expenses for short-term leases and low-value asset leases (if applicable)		Variable lease payments not included in the measurement of lease liabilities (if applicable)		Rent paid		Interest expense on lease liabilities borne		Increased right-of-use assets
		Amount	Amount	Amount	Amount	Amount	Amount	Amount	Amount	Amount	Amount

		Occurred in the Current Period	Occurred in the Previous Period	Occurred in the Current Period	Occurred in the Previous Period	Occurred in the Current Period	Occurred in the Previous Period	Occurred in the Current Period	Occurred in the Previous Period	Occurred in the Current Period	Occurred in the Previous Period
Zhejiang Leapmotor Technology Co., Ltd. and its affiliates	Machinery and equipment					1,034,915.00	1,034,915.00	214,842.27	241,040.11

(3) Related guarantee

The Company being the guarantor:

Unit: RMB

Secured parties	Amount guaranteed	Starting date	Maturity date	Guarantee fulfilled completely or not
Zhejiang Dahua Vision Technology Co., Ltd.	530,000,000.00	April 07, 2020	March 31, 2024	Yes
Zhejiang Dahua Vision Technology Co., Ltd.	1,000,000,000.00	February 04, 2021	Three years after the maturity of the debts in the master contract	Yes
Zhejiang Dahua Vision Technology Co., Ltd.	400,000,000.00	June 09, 2023	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period	Yes
Zhejiang Dahua Vision Technology Co., Ltd.	200,000,000.00	June 25, 2023	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes
Zhejiang Dahua Vision Technology Co., Ltd.	200,000,000.00	November 20, 2023	Three years from the next day of ICBC Qingchun Sub-branch's external payment commitment	Yes
Zhejiang Dahua Vision Technology Co., Ltd.	220,000,000.00	October 13, 2017	Two years after the maturity of the debts in the master contract	No
Zhejiang Dahua Vision Technology Co., Ltd. (guarantee currency is US dollar)	40,000,000.00	September 21, 2018	Two years after the maturity of the debts in the master contract	No
Zhejiang Dahua Vision Technology Co., Ltd.	300,000,000.00	September 01, 2020	Five years upon expiration of debt period of master contract	No
Zhejiang Dahua Vision Technology Co., Ltd.	440,000,000.00	July 26, 2021	Three years after the maturity of the debts in the master contract	Yes
Zhejiang Dahua Vision Technology Co., Ltd.	200,000,000.00	October 20, 2021	Three years after the maturity of the debts in the master contract	Yes

Zhejiang Dahua Vision Technology Co., Ltd.	200,000,000.00	July 22, 2022	Three years after the maturity of the debts in the master contract	No
Zhejiang Dahua Vision Technology Co., Ltd.	600,000,000.00	September 19, 2022	September 18, 2024	Yes
Zhejiang Dahua Vision Technology Co., Ltd.	400,000,000.00	July 24, 2023	From the date of expiration of the performance period of each debt in the master contract until three years after the date of expiration of the performance period of the last due master debt under all master contracts	No
Zhejiang Dahua Vision Technology Co., Ltd.	500,000,000.00	July 25, 2023	Three years from the effective date of the Maximum Amount Guarantee Contract to the expiration date of the performance period of each debt under the Credit Business Agreement	Yes
Zhejiang Dahua Vision Technology Co., Ltd.	900,000,000.00	September 26, 2023	Calculated separately on the basis of a single credit business handled by Dahua Vision Technology for the debtor, i.e. from the date of signing of the master contract for a single credit business to three years after the expiration date of the debtor's debt performance period under such master contract	No
Zhejiang Dahua Vision Technology Co., Ltd.	330,000,000.00	September 26, 2023	Three years from the expiration date of the debtor's performance period as agreed in the master claim contract	No
Zhejiang Dahua Vision Technology Co., Ltd.	1,000,000,000.00	March 01, 2024	Three years from the next day after the expiry date of each type of financing business under the master contract	No
Zhejiang Dahua Vision Technology Co., Ltd.	530,000,000.00	April 01, 2024	Two years from the expiration date of the debtor's performance period as agreed in the master contract	No
Zhejiang Dahua Vision Technology Co., Ltd.	400,000,000.00	June 07, 2024	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period	No
Zhejiang Dahua Vision Technology Co., Ltd.	495,000,000.00	July 25, 2024	Three years from the expiration date of the debtor's performance period as agreed in each specific financing contract	No
Zhejiang Dahua Vision Technology Co., Ltd.	500,000,000.00	August 16, 2024	The guarantee period is three years from the effective date of the Maximum Amount Guarantee Contract until the expiration date of the performance period of each debt under the Credit Business Agreement.	No
Zhejiang Dahua Vision Technology Co., Ltd.	680,000,000.00	September 19, 2024	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No

Zhejiang Dahua Vision Technology Co., Ltd.	200,000,000.00	December 13, 2024	Three years from the expiration date of the debtor's performance period as agreed in the master contract.	No
Zhejiang Dahua Zhilian Co., Ltd.	160,000,000.00	June 09, 2023	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period	Yes
Zhejiang Dahua Zhilian Co., Ltd.	300,000,000.00	September 24, 2020	Two years after the maturity of the debts in the master contract	Yes
Zhejiang Dahua Zhilian Co., Ltd.	120,000,000.00	June 19, 2023	June 18, 2024	Yes
Zhejiang Dahua Zhilian Co., Ltd.	350,000,000.00	June 19, 2023	June 18, 2024	Yes
Zhejiang Dahua Zhilian Co., Ltd.	165,000,000.00	July 26, 2021	Three years after the maturity of the debts in the master contract	Yes
Zhejiang Dahua Zhilian Co., Ltd. (guarantee currency is US dollar)	5,000,000.00	December 03, 2021	December 02, 2024	Yes
Zhejiang Dahua Zhilian Co., Ltd.	200,000,000.00	August 25, 2022	September 27, 2024	Yes
Zhejiang Dahua Zhilian Co., Ltd.	200,000,000.00	September 28, 2024	August 25, 2025	No
Zhejiang Dahua Zhilian Co., Ltd.	150,000,000.00	September 19, 2022	September 18, 2024	Yes
Zhejiang Dahua Zhilian Co., Ltd. (guarantee currency is US dollar)	12,500,000.00	July 13, 2023	July 12, 2024	Yes
Zhejiang Dahua Zhilian Co., Ltd.	500,000,000.00	July 24, 2023	From the date of expiration of the performance period of each debt in the master contract until three years after the date of expiration of the performance period of the last due master debt under all master contracts	Yes
Zhejiang Dahua Zhilian Co., Ltd.	10,000,000.00	January 02, 2024	One year from the expiration date of the debtor's performance period as agreed in the master contract	Yes
Zhejiang Dahua Zhilian Co., Ltd.	300,000,000.00	March 29, 2024	Two years from the expiration date of the debtor's performance period as agreed in the master contract	No
Zhejiang Dahua Zhilian Co., Ltd.	160,000,000.00	June 07, 2024	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period	No
Zhejiang Dahua Zhilian Co., Ltd.	600,000,000.00	July 25, 2024	The guarantee period starts from the expiration date of the performance period of each principal debt under the master contract and ends three years after the expiration date of the performance period of the last due principal debt under all master contracts.	No

Zhejiang Dahua Zhilian Co., Ltd.	165,000,000.00	July 25, 2024	Three years from the expiration date of the debtor's performance period as agreed in each specific financing contract	No
Zhejiang Dahua Zhilian Co., Ltd.	150,000,000.00	September 19, 2024	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No
Zhejiang Dahua Zhilian Co., Ltd.	100,000,000.00	September 26, 2024	Three years from the expiration date of the debtor's performance period as agreed in the master contract.	No
Zhejiang Dahua System Engineering Co., Ltd.	40,000,000.00	June 09, 2023	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period	Yes
Zhejiang Dahua System Engineering Co., Ltd.	10,000,000.00	August 30, 2019	Two years after the maturity of the debts in the master contract	Yes
Zhejiang Dahua System Engineering Co., Ltd.	5,000,000.00	August 25, 2022	September 27, 2024	Yes
Zhejiang Dahua System Engineering Co., Ltd.	5,000,000.00	September 28, 2024	August 25, 2025	No
Zhejiang Dahua System Engineering Co., Ltd.	50,000,000.00	July 25, 2023	Three years from the effective date of the Maximum Amount Guarantee Contract to the expiration date of the performance period of each debt under the Credit Business Agreement	Yes
Zhejiang Dahua System Engineering Co., Ltd.	1,602,100.00	September 11, 2023	One year from the signing of the project contract or 6 months of stable operation of the system on line (whichever is later)	Yes
Zhejiang Dahua System Engineering Co., Ltd.	40,000,000.00	June 10, 2024	From the effective date of the Commitment Letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the accounts receivable claims granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance within the credit extension period	No
Zhejiang Dahua System Engineering Co., Ltd.	50,000,000.00	August 16, 2024	The guarantee period is three years from the effective date of the Maximum Amount Guarantee Contract until the expiration date of the performance period of each debt under the Credit Business Agreement.	No
Zhejiang Dahua System Engineering Co., Ltd.	10,000,000.00	September 3, 2024	Two years from the expiration date of the debtor's performance period as agreed in the master contract	No
Dahua Technology	2,000,000.00	April 21, 2023	April 21, 2024	Yes

(HK) Limited (guarantee currency is US dollar)
Dahua Technology (HK) Limited (guarantee currency is US dollar)	3,000,000.00	April 22, 2024	April 22, 2025	No
DAHUA TECHNOLOGY MEXICO S.A. DE C.V (guaranteed currency is US dollar)	1,000,000.00	October 18, 2023	October 20, 2024	Yes
DAHUA TECHNOLOGY MEXICO S.A. DE C.V (guaranteed currency is US dollar)	1,000,000.00	October 18, 2024	October 17, 2025	No
Hangzhou Huacheng Network Technology Co., Ltd.	50,000,000.00	August 30, 2019	Two years after the maturity of the debts in the master contract	Yes
Hangzhou Huacheng Network Technology Co., Ltd.	55,000,000.00	July 26, 2021	Three years after the maturity of the debts in the master contract	Yes
Hangzhou Huacheng Network Technology Co., Ltd.	65,000,000.00	August 25, 2022	September 27, 2024	Yes
Dahua Technology UK Limited (guaranteed currency is GBP)	1,160,000.00	August 12, 2020	Sign the Termination Notice Letter	No
Dahua Technology UK Limited (guarantee currency is US dollar)	1,000,000.00	March 04, 2024	March 03, 2025	No
Zhejiang Huayixin Technology Co., Ltd. (guarantee currency: US dollar)	2,000,000.00	May 16, 2022	Three years after the maturity of the debts in the master contract	Yes
Zhejiang Huayixin Technology Co., Ltd.	10,000,000.00	April 29, 2022	Three years after the maturity of the debts in the master contract	No
Zhejiang Huayixin Technology Co., Ltd.	2,000,000.00	August 25, 2022	September 27, 2024	Yes
Zhejiang Huayixin Technology Co., Ltd.	2,000,000.00	September 28, 2024	August 25, 2025	No
Zhejiang Huayixin Technology Co., Ltd.	8,000,000.00	October 21, 2022	September 18, 2024	Yes
Zhejiang Huayixin Technology Co., Ltd.	10,000,000.00	September 26, 2024	From the effective date of the commitment letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the creditor's rights granted by the Hangzhou Branch of China Merchants Bank or the advance date of each advance.	No
Zhejiang Fengshi Technology Co., Ltd.	20,000,000.00	June 25, 2023	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes
Zhejiang Fengshi Technology Co., Ltd.	100,000,000.00	August 25, 2022	September 27, 2024	Yes
Zhejiang Fengshi Technology Co., Ltd.	100,000,000.00	September 28, 2024	August 25, 2025	No
Zhejiang Fengshi Technology Co., Ltd.	20,000,000.00	October 21, 2022	September 18, 2024	Yes
Zhejiang Fengshi Technology Co., Ltd.	30,000,000.00	September 3, 2024	From the effective date of the commitment letter to three years	No

			after the maturity date of each loan or other financing under the Credit Agreement or of the creditor's rights granted by the Hangzhou Branch of China Merchants Bank or the advances date of each advance;
Zhejiang Fengshi Technology Co., Ltd.	15,000,000.00	September 19, 2024	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No
Jiangsu Huaruipin Technology Co. Ltd.	8,000,000.00	August 25, 2022	September 27, 2024	Yes
Jiangsu Huaruipin Technology Co. Ltd.	8,000,000.00	September 28, 2024	August 25, 2025	No
Jiangsu Huaruipin Technology Co. Ltd.	15,000,000.00	October 21, 2022	September 18, 2024	Yes
Jiangsu Huaruipin Technology Co. Ltd.	15,000,000.00	September 19, 2024	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No
Zhejiang Huaxiao Technology Co., Ltd.	2,000,000.00	August 25, 2022	September 27, 2024	Yes
Zhejiang Huaxiao Technology Co., Ltd.	2,000,000.00	September 28, 2024	August 25, 2025	No
Zhejiang Huaxiao Technology Co., Ltd.	8,000,000.00	October 21, 2022	September 18, 2024	Yes
Xi'an Dahua Zhilian Technology Co., Ltd.	50,000,000.00	June 25, 2023	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes
Xi'an Dahua Zhilian Technology Co., Ltd.	100,000,000.00	August 25, 2022	September 27, 2024	Yes
Xi'an Dahua Zhilian Technology Co., Ltd.	25,000,000.00	October 21, 2022	September 18, 2024	Yes
Xi'an Dahua Zhilian Technology Co., Ltd.	20,000,000.00	September 19, 2024	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No
Xi'an Dahua Zhilian Technology Co., Ltd.	100,000,000.00	September 28, 2024	August 25, 2025	No
Xi'an Dahua Zhilian Technology Co., Ltd.	30,000,000.00	December 06, 2024	From the effective date of the commitment letter to three years after the maturity date of each loan or other financing under the Credit Agreement or of the creditor's rights granted by the Xi'an Branch of China Merchants Bank or the advance date of each advance within the credit extension period;	No
Zhengzhou Dahua Zhian Information Technology Co., Ltd.	50,000,000.00	June 25, 2023	From the start of the guarantee period to three years after the maturity date of each note	Yes

			discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period
Zhengzhou Dahua Zhian Information Technology Co., Ltd.	30,000,000.00	August 25, 2022	September 27, 2024	Yes
Zhengzhou Dahua Zhian Information Technology Co., Ltd.	30,000,000.00	September 28, 2024	August 25, 2025	No
Zhengzhou Dahua Zhian Information Technology Co., Ltd.	50,000,000.00	July 16, 2024	June 09, 2025	No
Chengdu Dahua Zhian Information Technology Service Co., Ltd.	80,000,000.00	June 25, 2023	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes
Chengdu Dahua Zhian Information Technology Service Co., Ltd.	80,000,000.00	July 16, 2024	June 09, 2025	No
Changsha Dahua Technology Co., Ltd.	10,000,000.00	June 25, 2023	From the start of the guarantee period to three years after the maturity date of each note discounted by the Hangzhou Branch of China Merchants Bank within the credit extension period	Yes
Changsha Dahua Technology Co., Ltd.	30,000,000.00	August 25, 2022	September 27, 2024	Yes
Changsha Dahua Technology Co., Ltd.	50,000,000.00	September 28, 2024	August 25, 2025	No
Changsha Dahua Technology Co., Ltd.	20,000,000.00	October 21, 2022	September 18, 2024	Yes
Changsha Dahua Technology Co., Ltd.	20,000,000.00	September 19, 2024	The guarantee period is from the effective date of the specific business credit contract to three years after the expiration of the debt performance period stipulated in the specific business credit contract (including early maturity of the debt).	No
Zhejiang Pixfra Technology Co., Ltd.	5,000,000.00	August 25, 2022	September 27, 2024	Yes
Zhejiang Pixfra Technology Co., Ltd.	5,000,000.00	September 28, 2024	August 25, 2025	No
Zhejiang Huafei Intelligent Technology CO., LTD.	2,000,000.00	August 25, 2022	September 27, 2024	Yes
Zhejiang Huafei Intelligent Technology CO., LTD.	2,000,000.00	September 28, 2024	August 25, 2025	No
Zhejiang Huajian Technology Co., Ltd.	2,000,000.00	August 25, 2022	September 27, 2024	Yes
Zhejiang Huajian Technology Co., Ltd.	2,000,000.00	September 28, 2024	August 25, 2025	No
Hangzhou Xiaohua Technology CO., LTD.	2,000,000.00	August 25, 2022	September 27, 2024	Yes
Hangzhou Xiaohua Technology CO., LTD.	2,000,000.00	September 28, 2024	August 25, 2025	No
Zhejiang Dahua Security Network Operation Service Co., Ltd.	5,000,000.00	August 25, 2022	September 27, 2024	Yes
Zhejiang Dahua Security Network	5,000,000.00	September 28, 2024	August 25, 2025	No

Operation Service Co., Ltd.
Dahua Technology France SAS (guarantee currency is EUR)	145,700.00	December 07, 2023	August 31, 2029	No
DAHUA EUROPE B.V. (guaranteed currency is US dollar)	1,500,000.00	March 04, 2024	March 03, 2025	No
Dahua Technology Italy S.R.L. (guaranteed currency is US dollar)	500,000.00	March 04, 2024	March 03, 2025	No

(4) Asset transfer and debt restructuring of related parties

Unit: RMB

Related parties	Content of the related - party transaction	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Zhejiang Huachuang Vision Technology Co., Ltd.	Procurement of fixed assets	33,671.84	40,630.42
China Mobile Communications Group Co., Ltd. and its affiliates	Procurement of fixed assets		1,767,786.05
Zhejiang Huachuang Vision Technology Co., Ltd.	Selling of fixed assets		612,608.16
Zhejiang Huanuokang Technology Co., Ltd. and its subsidiaries	Selling of fixed assets		2,792.34

(5) Remuneration to key management personnel

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Salary of key management personnel	32,004,911.06	22,009,460.55

(6) Other related-party transactions

1) In January 2024, the Company acquired 25% equity in Zhejiang Dahua Investment Management Co., Ltd. held byits affiliate Zhejiang Huashi Investment Management Co., Ltd. for a consideration of RMB 23.109 million, and theCompany's shareholding in Dahua Investment Management Co. increased from 75% to 100% after the acquisition,and Dahua Investment Management Co. became a wholly-owned subsidiary of the Company.

2) In February 2024, the controlling subsidiary, Zhejiang Huajian, purchased 39.5% equity in Huafei Intelligence froman affiliate, Ningbo Huaying Venture Capital Partnership (Limited Partnership), at a consideration of RMB 28.0155million.

6. Receivables and payables of the related parties

(1) Receivables

Unit: RMB

Item Name	Related parties	Closing Balance		Opening Balance
		Book balance	Bad debt provision	Book balance	Bad debt provision
Accounts receivable	Intelbras S.A.	591,354,065.58	29,567,703.28	399,216,383.81	19,960,819.19
Accounts receivable	Zhejiang Leapmotor Technology Co., Ltd. and its affiliates	264,675,710.56	13,357,368.51	158,504,082.59	7,998,998.48
Accounts receivable	China Mobile Communications Group Co., Ltd. and its affiliates	153,789,928.68	21,308,153.74	140,286,722.77	15,390,276.69
Accounts receivable	Ruicity Digital Technology Co., Ltd. And its subsidiaries	17,669,453.04	1,408,576.57	18,610,308.67	1,161,880.61
Accounts receivable	Guangdong Zhishi Digital Technology Co., Ltd.	7,550,832.13	2,958,999.91	4,757,349.37	267,081.04
Accounts receivable	Dezhou Shuzhi Information Technology Co., Ltd.	6,231,962.01	311,598.10
Accounts receivable	Ningbo Cida Yongshun Intelligent Technology Co., Ltd.	2,642,556.01	132,127.80	4,955,930.01	247,796.50
Accounts receivable	Zhejiang Huachuang Vision Technology Co., Ltd.	2,602,776.37	201,453.69	1,503,214.40	75,211.10
Accounts receivable	Zhejiang Hyxi Technology Co., Ltd.	2,049,201.90	102,460.10
Accounts receivable	Company A and other companies under its control	315,750.18	252,847.40	2,708,124.52	1,194,095.64
Accounts receivable	Zhejiang Huanuokang Technology Co., Ltd. and its subsidiaries	291,210.78	14,560.54	5,512,687.07	766,592.10
Accounts receivable	Guangxi FTZ Huaqin Wisdom Park Technology Research Institute Co., Ltd.	31,170.00	1,558.50	31,200.00	1,560.00
Accounts receivable	Zhejiang Lancable Technology Co., Ltd.			15,000.00	750.00
Accounts	Hangzhou Xintu	N/A (Note 1)	N/A (Note 1)	81.60	4.08

receivable	Technology Co., Ltd.
Accounts receivable	Huayan Capital (Hangzhou) Private Equity Fund Management Co., Ltd.			181.50	9.08
Prepayments	Company A and other companies under its control	747,840.52		685,807.08
Prepayments	China Mobile Communications Group Co., Ltd. and its affiliates	376,505.05		473,044.59
Contract Assets	China Mobile Communications Group Co., Ltd. and its affiliates	5,745,492.32	747,625.61	7,708,740.44	1,807,246.75
Contract Assets	Ruicity Digital Technology Co., Ltd. And its subsidiaries	155,050.00	44,122.80	206,733.38	20,141.74
Contract Assets	Zhejiang Hyxi Technology Co., Ltd.	90,160.20	4,508.01
Other Receivables	China Mobile Communications Group Co., Ltd. and its affiliates	3,199,859.09	573,371.54	1,965,652.24	265,848.14
Other Receivables	Zhejiang Leapmotor Technology Co., Ltd. and its affiliates	244,850.00	14,485.00	64,850.00	3,242.50

Note 1: The affiliated relationship ended in April 2024.

(2) Payables

Unit: RMB

Item Name	Related parties	Closing balance	Opening balance
Accounts Payable	China Mobile Communications Group Co., Ltd. and its affiliates	36,039,551.28	38,418,336.92
Accounts Payable	Zhejiang Huachuang Vision Technology Co., Ltd.	9,010,272.07	12,132,312.24
Accounts Payable	Ruicity Digital Technology Co., Ltd. And its subsidiaries	2,324,793.29	9,167,655.86
Accounts Payable	Zhejiang Leapmotor Technology Co., Ltd. and its affiliates	1,735,191.79	730,299.40
Accounts Payable	Zhejiang Huanuokang Technology Co., Ltd. and its subsidiaries	107,500.00	61,513.26
Accounts Payable	Zhejiang Lancable		3,970.00

	Technology Co., Ltd.
Contract liabilities	China Mobile Communications Group Co., Ltd. and its affiliates	9,457,312.09	12,139,953.98
Contract liabilities	Intelbras S.A.	3,033,496.96
Contract liabilities	Zhejiang Leapmotor Technology Co., Ltd. and its affiliates	2,375,139.56	1,648,066.02
Contract liabilities	Huayan Capital (Hangzhou) Private Equity Fund Management Co., Ltd.	107.09
Contract liabilities	Zhejiang Huanuokang Technology Co., Ltd. and its subsidiaries		340,855.09
Contract liabilities	Hangzhou Xintu Technology Co., Ltd.	N/A (Note 1)	1,362.58
Contract liabilities	Zhejiang Hyxi Technology Co., Ltd.		0.02
Other Payables	Ningbo Hualing Venture Capital Investment Partnership (Limited Partnership)	13,727,591.82
Other Payables	Ningbo Huayan Chuangxi Venture Capital Investment Partnership (Limited Partnership)	4,683,641.32
Other Payables	China Mobile Communications Group Co., Ltd. and its affiliates	10,647,937.20	5,363,787.00
Other Payables	Zhejiang Leapmotor Technology Co., Ltd. and its affiliates	300,000.00	173,520.00
Other Payables	Zhejiang Huachuang Vision Technology Co., Ltd.	200,816.89
Other Payables	Zhejiang Huanuokang Technology Co., Ltd. and its subsidiaries	63,070.00	63,070.00
Lease liabilities	Zhejiang Leapmotor Technology Co., Ltd. and its affiliates	6,550,386.06	7,370,458.79

Note 1: The affiliated relationship ended in April 2024.

XV. Share-based Payment

1. Overview of share-based payment

?Applicable □ Not applicable

Unit: RMB

Category of granted recipients	Granted in the current period		Exercising in the current period		Unlocked in the current period		Lapsed in the current period
	Quantity	Amount	Quantity	Amount	Quantity	Amount	Quantity	Amount
Senior managem			3,295,423.00	6,424,880.91	20,262,480.00	170,392,761.52	2,134,680.00	13,090,480.38

ent, other management, and key business personnel
Total			3,295,423.00	6,424,880.91	20,262,480.00	170,392,761.52	2,134,680.00	13,090,480.38

Stock options or other equity instruments outstanding at the end of the period?Applicable □ Not applicable

Category of granted recipients	The stock options outstanding at the end of the period		Other equity instruments outstanding at the end of the period
	Range of exercise prices	Remaining term of contract	Range of exercise prices	Remaining term of contract
Senior management, other management, and key business personnel	RMB 15.473/share	6 months	RMB 8.16/share	0 months

Other notes:

(1) The employees of the Company and its subsidiaries hold the equity of HuaRay Technology through capitalincrease, direct or indirect equity transfers. According to the fair value of the investors recently introduced by HuaRayTechnology, the confirmed share-based payment fee is RMB 67,761,179.01.

(2) The employees of the Company and its subsidiaries hold the equity of Huacheng Network through capital increase,direct or indirect equity transfers. According to the fair value of the investors recently introduced by Huacheng Network,the confirmed share-based payment fee is RMB 7,165,137.03.

(3) The employees of the Company and its subsidiaries hold the equity of Pixfra Technology through capital increase,direct or indirect equity transfers. According to the fair value of the investors recently introduced by Pixfra Technology,the confirmed share-based payment fee is RMB 21,062,879.23.

(4) The amount of employee services paid in equity under the Company's 2022 Stock Option and Restricted ShareIncentive Plan was RMB 126,418,531.55. The amount of share-based payments transferred back to equity settlementdue to repurchase cancellation and the failure of the third batch to meet the unlocking conditions was RMB190,488,038.76.

2. Situation of equity-settled share-based payment

?Applicable □ Not applicable

Unit: RMB

The method for determining the fair value of equity instruments on the day of granting	The fair value of the restricted stocks shall be determined based on the stock price and the grant cost of the stocks or stock price of the most recent external investor entry as at the grant date, while the fair value of the stock options shall be determined under the Black-Scholes Model
The basis for determining the amount of exercisable equity instruments	Estimated according to equity instruments held by the employees
Reason for the significant difference between the estimation of current period and the previous period	None

The accumulated amount of equity-settled share-based payment counted into the capital reserve	366,862,718.17
Amount of equity-settled share-based payment confirmed in current period	31,919,688.06

3. Situation of cash-settled share-based payment

□ Applicable ?Not applicable

4. Share-based payments in the current period

?Applicable □ Not applicable

Unit: RMB

Category of granted recipients	Equity-settled share-based payments	Cash-settled share-based payments
Senior management, other management, and key business personnel	31,919,688.06
Total	31,919,688.06

5. Modification and termination of share-based payment

None

XVI. Commitments and Contingencies

1. Significant commitments

Important commitments on the balance sheet dayAs of December 31, 2024, the pledge information of the Company was as follows:

(1) On May 30, 2024, the Company and Hangzhou Branch of Zheshang Bank Co., Ltd. entered into the "GuaranteeContract for Pledge of Asset Pool", with the number (33100000) Zheshang Asset Pool Quality (2024) No. 09915 (thecontract term is from May 30, 2024 to May 30, 2025), to provide a guarantee for the "Asset Pool Business CooperationAgreement" signed by the Company together with the subsidiary Zhejiang Dahua Vision Technology Co., Ltd., thesubsidiary Zhejiang Dahua System Engineering Co., Ltd., the subsidiary Zhejiang Fengshi Technology Co., Ltd., thesubsidiary Zhejiang Xiaohua Technology Co., Ltd. and Hangzhou Branch of Zheshang Bank Co., Ltd. The financingamount for the fund's pledge pool cannot be more than RMB 2.5 billion.Under the notes pool business, as of December 31, 2024, the Company had undue notes receivable of RMB111,858,771.13 (where RMB 100,000,000.00 was related party notes receivable that should be included in the scopeof consolidation), the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. had undue notes receivable of RMB703,589,691.91 (where RMB 196,000,000.00 was related party notes receivable that should be included in the scopeof consolidation), the subsidiary Zhejiang Dahua System Engineering Co., Ltd. had undue notes receivable of RMB1,017,285.77.

Under the pledge, the Company issued the banker’s acceptance in the amount of RMB 2,822,420.81, the subsidiaryZhejiang Dahua Vision Technology Co., Ltd. issued the banker’s acceptance in the amount of RMB 493,227,085.61,and the subsidiary Zhejiang Dahua System Engineering Co., Ltd. issued the banker’s acceptance in the amount ofRMB 316,800.00.

(2) On May 30, 2024, the subsidiary Zhejiang Dahua Zhilian Co., Ltd. and Hangzhou Branch of Zheshang Bank Co.,Ltd. entered into the "Guarantee Contract for Pledge of Asset Pool", with the number (33100000) Zheshang AssetPool Quality (2024) No. 09483 (the contract term is from May 30, 2024 to May 30, 2025), to provide a guarantee forthe "Asset Pool Business Cooperation Agreement" signed by Zhejiang Dahua Zhilian Co., Ltd. together with HangzhouBranch of Zheshang Bank Co., Ltd. The financing amount for the fund pledge pool cannot be more than RMB 0.5billion.Under the notes pool business, as of December 31, 2024, RMB 339,436,060.45 of undue notes receivable (of whichRMB 201,288,024.00 was related party notes that should be included in the scope of the consolidated financialstatements) of the subsidiary Zhejiang Dahua Zhilian Co., Ltd. were pledged for the issuance of acceptance bills.Under the pledge, the subsidiary Zhejiang Dahua Zhilian Co., Ltd. issued the banker’s acceptance in the amount ofRMB 194,168,524.09.

(3) On June 1, 2022, the Company and Hangzhou Branch of China Merchants Bank Co., Ltd. signed the "CreditAgreement for Notes Pool Business" (No.: 571XY2022013930), which promised a special credit limit of RMB 1.5 billionfor the notes pool, and allocated the same limit to the subsidiary Zhejiang Dahua Vision Technology Co., Ltd., thesubsidiary Zhejiang Dahua System Engineering Co., Ltd., the subsidiary Hangzhou Huacheng Network TechnologyCo., Ltd., the subsidiary Zhejiang Fengshi Technology Co., Ltd., the subsidiary Zhejiang Huafei Intelligent TechnologyCo., Ltd., the subsidiary Zhejiang Huayixin Technology Co., Ltd., the subsidiary Zhejiang Huaxiao Technology Co.,Ltd.,, the subsidiary Zhejiang Huajian Technology Co., Ltd., the subsidiary Xi'an Dahua Zhilian Technology Co., Ltd.,the subsidiary Zhejiang Dahua Intelligent IoT Operation Service Co., Ltd., and the subsidiary Zhejiang Dahua ZhilianCo., Ltd.Under the notes pool business, as of December 31, 2024, the Company had undue notes receivable of RMB309,288,766.63 (where RMB 300,000,000.00 was related party notes receivable that should be included in the scopeof consolidation), the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. had undue notes receivable of RMB264,622,431.02 (where RMB 100,000,000.00 was related party notes receivable that should be included in the scopeof consolidation), the subsidiary Zhejiang Dahua System Engineering Co., Ltd. had undue notes receivable of RMB5,222,730.00, the subsidiary Zhejiang Huajian Technology Co., Ltd. had undue notes receivable of RMB 4,704,401.62.Under this pledge, the Company issued the banker’s acceptance in the amount of RMB 413,782.35, its subsidiaryHangzhou Huacheng Network Technology Co., Ltd. issued the banker’s acceptance in the amount of RMB146,780,702.18, the subsidiary Zhejiang Dahua System Engineering Co., Ltd. issued the banker’s acceptance in theamount of RMB 100,000.01, the subsidiary Zhejiang Dahua Zhilian Co., Ltd. issued the banker’s acceptance in theamount of RMB 43,622,576.39, and the subsidiary Zhejiang Fengshi Technology Co., Ltd. issued the banker’sacceptance in the amount of RMB 298,673,883.20. The subsidiary Zhejiang Huajian Technology Co., Ltd. issued thebanker’s acceptance in the amount of RMB 714,892.09, the subsidiary Zhejiang Huaxiao Technology Co., Ltd. issuedthe banker’s acceptance in the amount of RMB 82,581.53, the subsidiary Zhejiang Huayixin Technology Co., Ltd.

issued the banker’s acceptance in the amount of RMB 159,583.12, and the subsidiary Xi'an Dahua Zhilian TechnologyCo., Ltd. issued the banker’s acceptance in the amount of RMB 273,352.30.

(4) On May 17, 2024, the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. and Bank of Hangzhou Co., Ltd.entered into the “Supplemental Agreement to the Asset Steward Pledge Contract” (No. E-C-B-18-2), and extended theterm of “Pledge Contract for Maximum Amount of Individual Asset Management” to May 16, 2027, agreeing onproviding a guarantee for the “Asset Management Service Agreement” signed by the subsidiary Zhejiang Dahua VisionTechnology Co., Ltd. and Hangzhou Bank Co., Ltd. The credit limit of the notes pool cannot be more than RMB 0.2billion.Under the notes pool business, as of December 31, 2024, RMB 42,659,381.96 of undue notes receivable of thesubsidiary Zhejiang Dahua Vision Technology Co., Ltd. were pledged for the issuance of acceptance bills.Under the pledge, the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. issued the bank acceptance bills in theamount of RMB 0.

(5) Under the Asset Pool Charge-off Agreement No. PPHJQZCZ 20240726-001 (the contract term is from August 20,2024 to August 19, 2025) made by and between the Company and Ping An Bank Co., Ltd. Hangzhou Branch onAugust 20, 2024, a special credit quota of RMB 1 billion in note pool was granted and was also allocated to thesubsidiary Zhejiang Dahua Vision Technology Co., Ltd., the subsidiary Jiangsu Huaruipin Technology Co., Ltd., thesubsidiary Zhejiang PixFra Technology Co., Ltd. and the subsidiary Changsha Dahua Technology Co., Ltd.Under the notes pool business, as of December 31, 2024, the Company had undue notes receivable of RMB200,000,000.00 (where RMB 200,000,000.00 was related party notes receivable that should be included in the scopeof consolidation), the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. had undue notes receivable of RMB114,938,425.25 (where RMB 94,000,000.00 was related party notes receivable that should be included in the scope ofconsolidation), the subsidiary Jiangsu Huaruipin Technology Co., Ltd. had undue notes receivable of RMB1,054,366.00, the subsidiary Changsha Dahua Technology Co., Ltd. had undue notes receivable of RMB 3,962,257.09,and the subsidiary Zhejiang PixFra Technology Co., Ltd. had undue notes receivable of RMB 1,066,011.00 pledged forissuing banker’s acceptance bills.Under the pledge, the subsidiary Zhejiang Dahua Vision Technology Co., Ltd. issued the banker’s acceptance in theamount of RMB 117,525,482.80, the subsidiary Jiangsu Huaruipin Technology Co., Ltd. issued the banker’sacceptance in the amount of RMB 9,651,054.45, the subsidiary Zhejiang PixFra Technology Co., Ltd. issued thebanker’s acceptance in the amount of RMB 646,120.68, and the subsidiary Changsha Dahua Technology Co., Ltd.issued the banker’s acceptance in the amount of RMB 7,855,237.13.

(6) The subsidiary Zhejiang HuaRay Technology Co., Ltd. and Hangzhou Branch of China Merchants Bank Co., Ltd.entered into the "Credit Agreement for Notes Pool Business", agreeing on a credit limit of RMB 0.2 billion for notespool business.Under the asset pool business, as of December 31, 2024, RMB 38,143,859.04 of undue notes receivable of thesubsidiary Zhejiang HuaRay Technology Co., Ltd. were pledged for the issuance of acceptance bills.

Under the pledge, the subsidiary Zhejiang HuaRay Technology Co., Ltd. issued the banker’s acceptance in theamount of RMB 34,917,760.19.

2. Contingencies

(1) Important contingent matters on the balance sheet day

None

(2) If no important contingent matter to be disclosed by the Company, it should also be notedaccordinglyNo important contingent matter needs to be disclosed by the Company.XVII. Events after the Balance Sheet Date

1. Important non-adjusting items

None

2. Profit distribution

Proposed dividend per 10 shares (RMB)

4.58

Profit distribution plan

Based on 3,279,257,910 shares after deducting the repurchased shares (19,819,601 shares), the Company will distribute a cash dividend of RMB 4.58 (tax inclusive) for every 10 shares to all shareholders, and the total amount of this cash dividend will be RMB 1,501,900,122.78 (tax inclusive). It will not convert capital reserve into share capital or distribute bonus shares, and the remaining undistributed profit will be retained for future distribution.

3. Other events after the balance sheet date

Under the "Proposal on the Sale of Equity in a Controlling Subsidiary" approved at the Tenth Meeting of the EighthBoard of Directors on March 3, 2025, the Company transferred its 32.7321% equity interest in Hangzhou HuachengNetwork Technology Co., Ltd. (hereinafter referred to as "Huacheng Network") (corresponding to a capital contributionof RMB 25.5 million) to Shanghai Zhicheng Enterprise Management Partnership (Limited Partnership) at a price ofRMB 716.8329 million. After the completion of this transaction, the Company no longer holds shares in its controllingsubsidiary Huacheng Network, and Huacheng Network and its subsidiaries are no longer included in the Company'sconsolidated financial statements.

XVIII. Other Significant Events

1. Subsection information

(1) Basis for determining the reporting subsection and the accounting policyThe Company determines the operation subsection based on internal organization structure, managementrequirements, internal reporting system, etc. The Company has only one operational subsection, namely the R&D,production, and sales of intelligent IoT products. The accounting policy of the reporting subsection is consistent withthat of the Company.

(2) Financial information of the reporting subsection

Regional subsection

Unit: RMB

Item	Operating income	Operating Cost
Domestic	15,886,994,088.01	10,584,111,985.06
Overseas	16,293,937,739.16	9,097,574,619.45
Total	32,180,931,827.17	19,681,686,604.51

Product subsection

Unit: RMB

Item	Operating income	Operating Cost
Smart IoT Products and Solutions	25,775,422,871.14	15,187,851,740.07
Including: Software Business	1,685,487,112.56	590,089,111.30
Innovative Businesses	5,566,291,857.39	3,765,335,736.52
Others	839,217,098.64	728,499,127.92

Total

Total

32,180,931,827.17

19,681,686,604.51

XIX. Notes to Main Items in the Financial Statements of the Parent Company

1. Accounts receivable

(1) Disclosure by aging

Unit: RMB

Aging	Closing balance	Opening balance
Within 1 year (including 1 year)	3,626,113,282.05	6,181,011,320.94
1 to 2 years	278,227,149.44	220,370,669.05
2 to 3 years	118,907,668.74	205,500,322.81
3 years or above	327,790,735.16	209,345,603.19
3 to 4 years	156,150,890.29	139,992,165.49
4 to 5 years	104,733,137.94	48,597,714.50
5 years or above	66,906,706.93	20,755,723.20
Total	4,351,038,835.39	6,816,227,915.99

(2) Disclosure by Bad Debt Accrual Method

Unit: RMB

Category	Closing Balance					Opening Balance
	Book balance		Bad debt provision		Book value	Book balance		Bad debt provision		Book value
	Amount	Proportion	Amount	Accrued proportion		Amount	Proportion	Amount	Accrued proportion
Accounts receivables with the bad debt provision accrued based on single item	37,472,879.25	0.86%	37,472,879.25	100.00%		39,711,390.05	0.58%	39,711,390.05	100.00%
Including:
Accounts receivable with insignificant single amount but accrued for separate provision of bad debt	37,472,879.25	0.86%	37,472,879.25	100.00%		39,711,390.05	0.58%	39,711,390.05	100.00%
Accounts receivables with the bad debt provision accrued based on combinations	4,313,565,956.14	99.14%	174,068,692.58	4.04%	4,139,497,263.56	6,776,516,525.94	99.42%	135,569,555.41	2.00%	6,640,946,970.53
Includin

g:
Portfolio 1: Related Parties Portfolio	3,137,038,601.58	72.10%			3,137,038,601.58	5,668,800,812.35	83.17%			5,668,800,812.35
Portfolio 2: Aging Analysis Portfolio	1,176,527,354.56	27.04%	174,068,692.58	14.80%	1,002,458,661.98	1,107,715,713.59	16.25%	135,569,555.41	12.24%	972,146,158.18
Total	4,351,038,835.39	100.00%	211,541,571.83		4,139,497,263.56	6,816,227,915.99	100.00%	175,280,945.46		6,640,946,970.53

Provision for bad debt accrued by single item: RMB 37,472,879.25

Unit: RMB

Name	Opening Balance		Closing Balance
	Book balance	Bad debt provision	Book balance	Bad debt provision	Accrued proportion	Reason for making bad debt provision
Customer 1	38,612,198.42	38,612,198.42	36,675,477.42	36,675,477.42	100.00%	Expected to be unable to recover
Other sporadic customers	1,099,191.63	1,099,191.63	797,401.83	797,401.83	100.00%	Expected to be unable to recover
Total	39,711,390.05	39,711,390.05	37,472,879.25	37,472,879.25

Bad debt accrual by portfolio: RMB 174,068,692.58

Unit: RMB

Name	Closing Balance
	Book balance	Bad debt provision	Accrued proportion
Within 1 year	741,593,923.13	37,079,696.14	5.00%
1 to 2 years	194,550,469.95	19,455,047.00	10.00%
2 to 3 years	106,858,536.64	32,057,560.99	30.00%
3 to 4 years	83,391,550.19	41,695,775.10	50.00%
4 to 5 years	31,761,306.50	25,409,045.20	80.00%
5 years or above	18,371,568.15	18,371,568.15	100.00%
Total	1,176,527,354.56	174,068,692.58

If the bad debt provisions of accounts receivable are made according to the general model of expected credit losses:

□ Applicable ?Not applicable

(3) Provision for bad debts accrued, recovered or reversed in this period

Provision for bad debts in the current period:

Unit: RMB

Category	Opening Balance	Amount of Changes in the Current Period				Closing Balance
		Accrued	Recovered or Reversed	Written Off	Others
Bad debt	175,280,945.4	43,519,705.19		7,259,078.82		211,541,571.8

provision	6					3
Total	175,280,945.46	43,519,705.19		7,259,078.82		211,541,571.83

Significant amount of recovered or reversed bad debt provision in this period:

None

(4) Accounts receivable actually written off in this period

Unit: RMB

Item	Write-off amount
Accounts receivable actually written off	7,259,078.82

Write-off of important accounts receivable:

None

(5) Accounts receivable and contract assets of the top five closing balances collected bydebtors

Unit: RMB

Name of Unit	Ending balance of accounts receivable	Closing balance of contract assets	Closing balance of accounts receivable and contract assets	As a percentage of accounts receivables and total ending balance	Closing balance of provision for bad debts on accounts receivable and impairment of contract assets
Customer 1	2,620,757,789.77		2,620,757,789.77	59.67%
Customer 2	167,012,007.88	3,943,041.50	170,955,049.38	3.89%	33,871,554.22
Customer 3	95,296,222.66		95,296,222.66	2.17%
Customer 4	93,316,133.94		93,316,133.94	2.13%
Customer 5	69,567,760.14		69,567,760.14	1.58%
Total	3,045,949,914.39	3,943,041.50	3,049,892,955.89	69.44%	33,871,554.22

2. Other Accounts Receivable

Unit: RMB

Item	Closing Balance	Opening Balance
Other Receivables	13,384,626,871.41	11,736,609,900.41
Total	13,384,626,871.41	11,736,609,900.41

(1). Other Accounts Receivable

1) Other receivables categorized by the nature of the funds

Unit: RMB

Nature of the funds	Closing balance	Opening balance
Deposits	45,415,624.12	42,885,100.54
Prepaid or advance expense	47,488,662.92	55,413,467.31

Employee home loan	50,462,191.00	70,683,455.00
Incomings and outgoings	13,273,651,357.52	11,602,342,723.04
Others	5,892,194.26	401,773.49
Total	13,422,910,029.82	11,771,726,519.38

2) Disclosure by aging

Unit: RMB

Aging	Closing balance	Opening balance
Within 1 year (including 1 year)	12,984,563,624.75	11,151,113,722.07
1 to 2 years	97,135,520.98	152,050,338.67
2 to 3 years	57,731,188.49	103,271,253.97
3 years or above	283,479,695.60	365,291,204.67
3 to 4 years	40,037,678.96	156,024,115.87
4 to 5 years	63,092,431.82	38,468,597.33
5 years or above	180,349,584.82	170,798,491.47
Total	13,422,910,029.82	11,771,726,519.38

3) Disclosure by bad debt accrual method

Unit: RMB

Category	Closing Balance					Opening Balance
	Book balance		Bad debt provision		Book value	Book balance		Bad debt provision		Book value
	Amount	Proportion	Amount	Accrued proportion		Amount	Proportion	Amount	Accrued proportion
Provision of bad debts based on combination	13,422,910,029.82	100.00%	38,283,158.41	0.29%	13,384,626,871.41	11,771,726,519.38	100.00%	35,116,618.97	0.30%	11,736,609,900.41
Including:
Portfolio 1: Related Parties Portfolio	13,273,651,357.52	98.89%			13,273,651,357.52	11,602,342,723.04	98.56%			11,602,342,723.04
Portfolio 2: Aging Analysis Portfolio	149,258,672.30	1.11%	38,283,158.41	25.65%	110,975,513.89	169,383,796.34	1.44%	35,116,618.97	20.73%	134,267,177.37
Total	13,422,910,029.82	100.00%	38,283,158.41		13,384,626,871.41	11,771,726,519.38	100.00%	35,116,618.97		11,736,609,900.41

Bad debt accrual by portfolio: RMB 38,283,158.41

Unit: RMB

Name	Closing Balance
	Book balance	Bad debt provision	Accrued proportion
Within 1 year (including 1 year)	71,540,357.59	3,577,017.88	5.00%
1 to 2 years	20,965,616.88	2,096,561.69	10.00%
2 to 3 years	21,935,101.15	6,580,530.34	30.00%
3 to 4 years	11,939,763.56	5,969,881.78	50.00%
4 to 5 years	14,093,331.99	11,274,665.59	80.00%
5 years or above	8,784,501.13	8,784,501.13	100.00%
Total	149,258,672.30	38,283,158.41

Provision for bad debts based on general model of expected credit losses:

Unit: RMB

Bad debt provision	Phase One	Phase Two	Phase Three	Total
	Expected credit losses in the next 12 months	Expected credit losses for the entire extension (without credit impairment)	Expected credit losses for the entire extension (with credit impairment)
Balance as of January 1, 2024	22,429,894.62	11,227,684.56	1,459,039.79	35,116,618.97
Balance in the current period as of January 1, 2024
--Transfer to phase two	-630,851.57	630,851.57
--Transfer to phase three	-106,833.00	-45,300.00	152,133.00
Provisions of this period	-1,160,971.02	2,746,481.76	1,696,459.70	3,281,970.44
Write off in this period	10,631.00	100,000.00	4,800.00	115,431.00
Balance as of December 31, 2024	20,520,608.03	14,459,717.89	3,302,832.49	38,283,158.41

Book balance changes with significant changes in loss provision in the current period

□ Applicable ?Not applicable

4) Provision for bad debts accrued, recovered or reversed in this period

Provision for bad debts in the current period:

Unit: RMB

Category	Opening Balance	Amount of Changes in the Current Period				Closing Balance
		Accrued	Recovered or Reversed	Resale or write-off	Others
Bad debt provision	35,116,618.97	3,281,970.44		115,431.00		38,283,158.41
Total	35,116,618.97	3,281,970.44		115,431.00		38,283,158.41

Significant amount of recovered or reversed bad debt provision in this period:

None

5) Accounts receivable actually written off in this period

Unit: RMB

Item	Write-off amount
Other accounts receivable actually written off	115,431.00

Write-off of other important receivables:

None

6) Other receivables of the top five closing balances collected by debtors

Unit: RMB

Name of Unit	Nature of the funds	Closing Balance	Aging	As a percentage of total other receivables at the end of the period	Bad debt provision at the end of the period
Company 1	Incomings and outgoings	9,146,100,418.61	RMB 9,145,703,015.13 within 1 year, RMB 8,240.86 for 1-2 years, RMB 387,990.83 for 2-3 years, and RMB 1,171.79 for more than 5 years.	68.14%
Company 2	Incomings and outgoings	2,099,557,154.81	Within 1 year	15.64%
Company 3	Incomings and outgoings	852,103,334.62	804,014,726.91 yuan within 1 year, 1,293,307.72 yuan in 1-2 years, 4,400,100.00 yuan in 2-3 years, 5,100,400.00 yuan in 3-4 years, 37,294,799.99 yuan in 4-5 years.	6.35%
Company 4	Incomings and outgoings	300,973,666.25	Within 1 year	2.24%
Company 5	Incomings and outgoings	247,386,630.06	Within 1 year	1.84%
Total		12,646,121,204.35		94.21%

3. Long-term Equity Investment

Unit: RMB

Item	Closing Balance			Opening Balance
	Book balance	Impairment provision	Book value	Book balance	Impairment provision	Book value
Investment in subsidiaries	8,006,238,280.28		8,006,238,280.28	8,003,642,515.21		8,003,642,515.21
Investment in affiliates and	156,040,573.47		156,040,573.47	188,883,917.03	723,496.39	188,160,420.64

joint ventures
Total	8,162,278,853.75		8,162,278,853.75	8,192,526,432.24	723,496.39	8,191,802,935.85

(1) Investment in subsidiaries

Unit: RMB

The invested entity	Opening balance (book value)	Opening balance of provision for impairment	Decrease/Increase in the current period				Closing balance (book value)	Closing balance of provision for decline in value
			Investments increased	Investment decreased	Provision for impairment accrued	Others
Zhejiang Dahua System Engineering Co., Ltd.	544,717,880.88			4,055,934.30			540,661,946.58
Zhejiang Dahua Security Network Operation Service Co., Ltd.	102,235,996.18			31,048.61			102,204,947.57
Zhejiang Dahua Ju'an Technology Co., Ltd.	5,100,000.00						5,100,000.00
Guangxi Dahua Information Technology Co., Ltd.	6,221,853.65			19,497.97			6,202,355.68
Dahua Technology (HK) Limited	669,687,347.00						669,687,347.00
Zhejiang Dahua Vision Technology Co., Ltd.	1,301,496,174.07			752,285.44			1,300,743,888.63
Guangxi Dahua Yunlian Information Technology Co., Ltd.	20,002,580.76						20,002,580.76
Hangzhou Xiaohua Technolog	9,463,819.79			145,069.66			9,318,750.13

y CO., LTD.
Zhejiang Dahua Zhilian Co., Ltd.	1,853,882,587.98		35,000,000.00	486,878.77			1,888,395,709.21
Zhejiang Dahua Investment Management Co., Ltd.	62,175,000.00		23,109,000.00				85,284,000.00
Guangxi Dahua Zhicheng Co., Ltd.	71,342,564.89			26,315.99			71,316,248.90
Hangzhou Huacheng Network Technology Co., Ltd.	33,452,823.33			1,091,662.80			32,361,160.53
Zhejiang HuaRay Technology Co., Ltd.	43,042,525.36			2,193,308.97			40,849,216.39
Hangzhou Fuyang Hua'ao Technology Co., Ltd.	5,131,561.91			6,892.13			5,124,669.78
Zhejiang Huafei Intelligent Technology CO., LTD.	39,020,809.23			36,289,685.29			2,731,123.94
Guizhou Huayi Shixin Technology Co., Ltd.	1,800,000.00						1,800,000.00
Zhejiang Fengshi Technology Co., Ltd.	9,076,201.62			15,477.69			9,060,723.93
Dahua Technology Holdings Limited	8,102,000.00			7,696,900.00			405,100.00
Zhejiang Huaxiao Technology Co., Ltd.	39,503,195.53			394,243.27			39,108,952.26
Xi'an Dahua	991,403,693.10			356,137.55			991,047,555.55

Zhilian Technology Co., Ltd.
Jiangsu Huaruipin Technology Co. Ltd.	18,066,240.73			45,566.60			18,020,674.13
Beijing Huayue Shangcheng Information Technology Service Co., Ltd.	10,986,257.22			111,354.20			10,874,903.02
Zhejiang Dahua Jinzhi Technology Co., Ltd.	60,000,000.00						60,000,000.00
Shanghai Huashang Chengyue Information Technology Service Co., Ltd.	2,624,687.57			243,599.30			2,381,088.27
Zhejiang Zhoushan Digital Development Operation Co. Ltd.	17,640,000.00		1,039,176.00				18,679,176.00
Guangxi Dahua Technology Co., Ltd.	30,000,000.00						30,000,000.00
Zhejiang Huayixin Technology Co., Ltd.	41,057,905.45			5,623.56			41,052,281.89
Zhejiang Huaruijie Technology Co., Ltd.	54,759,369.02			932,746.64			53,826,622.38
Chengdu Dahua Zhilian Information Technology Co., Ltd.	600,967,711.17			277,148.66			600,690,562.51
Chengdu Dahua	554,700,000.00						554,700,000.00

Zhian Information Technology Service Co., Ltd.
Chengdu Huishan Smart Network Technology Co., Ltd.	5,800,000.00						5,800,000.00
Zhejiang Huajian Technology Co., Ltd.	25,438,594.24			720,280.42			24,718,313.82
Guangxi Huacheng Technology Co., Ltd.	181,131.07			18,817.34			162,313.73
Hangzhou Huacheng Software Co., Ltd.	4,537,212.61			894,066.82			3,643,145.79
Dahua Technology Canada Inc.	72,864.00						72,864.00
Chengdu Dahua Zhishu Information Technology Service Co., Ltd.	10,000,000.00						10,000,000.00
Zhengzhou Dahua Zhian Information Technology Co., Ltd.	30,000,000.00						30,000,000.00
Dahua Technology International Pte. Ltd.	1,000,000.00						1,000,000.00
Changsha Dahua Technology Co., Ltd.	100,029,574.72			6,458.92			100,023,115.80
Zhejiang Pixfra Technolog	592,510,765.20		394,142.22				592,904,907.42

y Co., Ltd.
Zhejiang Dahua Intelligent IoT Operation Service Co., Ltd.	16,050,203.52			181,084.99			15,869,118.53
Henan Dahua Zhilian Information Technology Co., Ltd.	163,701.90			35,768.02			127,933.88
Yibin Huahui Information Technology Co., Ltd.	26,184.84			3,166.03			23,018.81
Luoyang Dahua Zhiyu Information Technology Co., Ltd.	10,000,000.00						10,000,000.00
Xi'an IMOU Zhilian Technology Co., Ltd.	43,251.72			5,227.02			38,024.70
Guangdong Huaxiyue Intelligent Technology Co., Ltd.	126,189.87		95,693.81				221,883.68
Total amount of other companies	2,055.08						2,055.08
Total	8,003,642,515.21		59,638,012.03	57,042,246.96			8,006,238,280.28

(2) Investment in affiliates and joint ventures

Unit: RMB

The invested entity

Opening balance (book value)

Opening balance of provision for

Decrease/Increase in the current period

Closing balance (book value)

Closing balance of provision for

Investments increased

Investment decreased

Investment profit and loss

Adjustment on other compr

Other changes in equity

Cash dividends or profit declar

Provision for impairment accru

Others

		impairment			recognized under the equity method	ehensive income		ed to distribute	ed			decline in value
Ⅰ. Joint ventures
II. Affiliate
Ruicity Digital Technology Co., Ltd.	78,231,566.10				-25,428,071.72						52,803,494.38
Hangzhou Juhuanyan Information Technology Co., Ltd.		723,496.39
Ningbo Huayan Chuangxi Venture Capital Investment Partnership (Limited Partnership)	67,432,554.80				747,344.35			553,134.55			67,626,764.60
Dezhou Shuzhi Information Technology Co., Ltd.	3,444,758.26				154,201.41						3,598,959.67
Sichuan	1,121,844.5				-161,5						960,255.07

Hengji Anhua Internet of Things Technology Co., Ltd.	6				89.49
Zhejiang Huachuang Vision Technology Co., Ltd.	37,929,696.92				-10,220,237.90		3,341,640.73				31,051,099.75
Subtotal	188,160,420.64	723,496.39			-34,908,353.35		3,341,640.73	553,134.55			156,040,573.47
Total	188,160,420.64	723,496.39			-34,908,353.35		3,341,640.73	553,134.55			156,040,573.47

The recoverable amount is determined as the net of fair value less costs of disposal.

□ Applicable ?Not applicable

The recoverable amount is determined as the present value of the expected future cash flows.

□ Applicable ?Not applicable

4. Operating revenue and operating cost

Unit: RMB

Item	Amount Occurred in the Current Period		Amount Occurred in the Previous Period
	Income	Cost	Income	Cost
Main Business	7,449,795,751.08	1,430,946,858.40	10,606,267,041.51	1,654,449,450.35
Other businesses	68,395,291.00	34,191,111.71	69,647,278.51	37,059,643.16
Total	7,518,191,042.08	1,465,137,970.11	10,675,914,320.02	1,691,509,093.51

5. Investment income

Unit: RMB

Item	Amount Occurred in the Current Period	Amount Occurred in the Previous Period
Long-term equity investment income calculated by cost method	8,304,369.49	1,149,863.64
Long-term equity investment income measured by equity method	-34,908,353.35	-309,247,666.73
Investment income from disposal of	6,812,806.50	4,603,860,940.85

long-term equity investment
Investment income from trading financial assets during the holding period	1,243,275.00
Investment income from disposal of trading financial assets	322,743,089.62
Investment income of other non-current financial assets during the holding period	6,235,327.82	11,870,549.61
Investment income from disposal of other non-current financial assets		10,370,120.76
Investment income from national debt reverse repurchase	2,275,761.53	1,256,871.91
Profits from recognition termination of financial assets	-10,557,467.86	-4,294,983.66
Total	302,148,808.75	4,314,965,696.38

XX. Supplementary Information

1. Breakdown of non-recurring gains and losses for this period

?Applicable □ Not applicable

Unit: RMB

Item	Amount	Note
Gains and losses on disposal of non-current assets	104,348,459.46
The government subsidies included in the current profits and losses (excluding the government subsidies closely related to regular businesses of the Company, in line with national policies, entitled to according to the established standard, and continuously impacting the Company’s profits and losses)	249,665,678.30
Profits and losses resulting from the changes in fair value for financial assets and financial liabilities held by non-financial enterprises, and from disposal of financial assets and liabilities, excluding the effective hedging businesses related to the regular business operation of the Company	124,956,271.40
Gains or losses from investment or asset management entrusted to others	175,635,135.76
Reversal of the receivables depreciation reserves for separate impairment test	4,602,004.26
Profits and losses on debt restructuring	-394,660.00

Non-Operating Revenue and expenses other than the above	12,821,255.27
Other gains and losses items that fit the definition of non-recurring gains and losses	-1,833,839.60
Less: Impact of income tax	85,954,207.29
Impact of minority equity (after tax)	25,516,480.20
Total	558,329,617.36	--

Other gains or losses that fit the definition of non-recurring gains or losses:

□ Applicable ?Not applicable

The Company has no other gains or losses that fit the definition of non-recurring gains or losses.Note for the definition of non-recurring gains and losses listed in the No. 1 Explanatory Announcement on InformationDisclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses, as recurring gainsand losses.

□ Applicable ?Not applicable

2. Return on net assets and earnings per share

Profit for the reporting period	Weighted Average ROE	Earnings per share
		Basic Earnings per Share (RMB/Share)	Diluted Earnings per Share (RMB/Share)
Net profit attributable to common shareholders of the Company	8.19%	0.90	0.90
Net profit attributable to common shareholders of the Company after deducting non-recurring gains and losses	6.62%	0.72	0.72

3. Differences in accounting data between domestic and overseas accounting standards

(1) Differences of net profits and net assets in the financial reports disclosed according to theinternational accounting standards and Chinese accounting standards

□ Applicable ?Not applicable

(2) Differences of net profits and net assets in the financial reports disclosed according to theoverseas accounting standards and Chinese accounting standards

□ Applicable ?Not applicable

(3) For explanation of differences in accounting data between domestic and overseasaccounting standards, the name of the overseas accounting firm shall be indicated if theaudited data by an overseas accounting firm has been adjusted for difference.

□ Applicable ?Not applicable

Zhejiang Dahua Technology Co., Ltd.

Legal representative: Fu Liquan

March 29, 2025