大华股份(002236) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, outlines the report's structure, and defines key terms for clarity Important Notice The board and management assure the report's accuracy, noting no significant changes in key risks, and confirm no interim dividend distribution - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4] - During the reporting period, the company faced no significant changes in risks such as technological upgrades, business model transformation, international operations, exchange rates, uncertainty in local government fiscal payment capabilities, product safety, intellectual property, and supply chain security, and actively adopted countermeasures[5][6][8][9][10] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[11] Table of Contents This section presents the structured table of contents, covering nine main chapters including company profile, management discussion, governance, and financial reports - The report structure is clear, divided into nine main chapters, facilitating investor review[13] Definitions This section provides definitions for common terms used in the report, including the reporting period and full and abbreviated names of the company and its subsidiaries - The reporting period refers to January 1, 2025, to June 30, 2025[18] - Lists the full and abbreviated names of Zhejiang Dahua Technology Co., Ltd. and its numerous domestic and overseas subsidiaries and affiliated companies[18][19][20][21] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and key financial performance metrics for the reporting period I. Company Profile The company, Dahua Technology, is listed on the Shenzhen Stock Exchange under stock code 002236, with Fu Liquan as its legal representative Basic Company Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Dahua Technology | | Stock Code | 002236 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Zhejiang Dahua Technology Co., Ltd. | | Legal Representative | Fu Liquan | II. Contact Persons and Information The company's Board Secretary is Wu Jian and Securities Affairs Representative is Li Sirui, both located at 1399 Binxing Road, Binjiang District, Hangzhou Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Wu Jian | 1399 Binxing Road, Binjiang District, Hangzhou | 0571-28939522 | 0571-28051737 | zqsw@dahuatech.com | | Securities Affairs Representative | Li Sirui | 1399 Binxing Road, Binjiang District, Hangzhou | 0571-28939522 | 0571-28051737 | zqsw@dahuatech.com | III. Other Information The company's contact details and information disclosure locations remained unchanged, and Guosen Securities' supervision period for a private share placement ended - The company's contact information, information disclosure, and designated locations remained no significant changes during the reporting period[25][26] - Guosen Securities' continuous supervision period for the company's private placement of shares expired on December 31, 2024, and it no longer performs continuous supervision duties[27] IV. Key Accounting Data and Financial Indicators In H1 2025, revenue grew 2.12% to 15.18 billion yuan, net profit attributable to shareholders increased 36.80% to 2.48 billion yuan, and operating cash flow surged 226.01% to 639 million yuan Key Accounting Data and Financial Indicators (H1 2025 vs. Prior Year) | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 15,181,329,651.13 | 14,866,622,569.81 | 2.12% | | Net Profit Attributable to Shareholders of Listed Company | 2,475,566,750.61 | 1,809,589,445.46 | 36.80% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 1,795,933,411.70 | 1,762,237,469.53 | 1.91% | | Net Cash Flow from Operating Activities | 639,122,979.11 | -507,185,620.71 | 226.01% | | Basic Earnings Per Share (RMB/share) | 0.76 | 0.56 | 35.71% | | Diluted Earnings Per Share (RMB/share) | 0.76 | 0.56 | 35.71% | | Weighted Average Return on Net Assets | 6.72% | 5.10% | 1.62% | | Current Period End vs. Prior Year End | | | | | Total Assets | 50,021,031,055.64 | 52,735,912,081.82 | -5.15% | | Net Assets Attributable to Shareholders of Listed Company | 37,095,215,232.19 | 36,028,046,171.08 | 2.96% | V. Differences in Accounting Data Under Domestic and International Accounting Standards The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in accounting data under domestic and international accounting standards during the reporting period[29][30][31] VI. Non-recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled 680 million yuan, primarily from disposal of non-current assets, government grants, and gains from entrusted investments Non-recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains/losses from disposal of non-current assets | 485,365,113.48 | | Government grants recognized in current profit or loss (excluding those with continuous impact) | 194,290,442.32 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 416,914.56 | | Gains/losses from entrusted investments or asset management | 189,343,772.69 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 3,036,913.33 | | Gains/losses from debt restructuring | -7,664,077.54 | | Other non-operating income and expenses apart from the above | 1,405,059.67 | | Other items meeting the definition of non-recurring gains/losses | -7,787,446.32 | | Less: Income tax impact | 170,642,154.85 | | Impact on minority interests (after tax) | 8,131,198.43 | | Total | 679,633,338.91 | Section III Management Discussion and Analysis This section analyzes the company's main business, core competencies, financial performance, investment activities, and risk management strategies during the reporting period I. Main Business Activities During the Reporting Period The company's main business activities remained unchanged during the reporting period, as detailed in the 2024 annual report - The company's main business activities remained no significant changes during the reporting period[35] II. Analysis of Core Competencies The company's core competencies remained unchanged during the reporting period, as detailed in the 2024 annual report - The company's core competencies remained no significant changes during the reporting period[36] III. Main Business Analysis In H1 2025, the company achieved 15.18 billion yuan in revenue, a 2.12% increase, and 1.80 billion yuan in non-recurring net profit, a 1.91% increase, driven by R&D investment, 'five-full' capabilities, and innovation - In the first half of 2025, the company's operating revenue was 15.18 billion yuan, a 2.12% year-on-year increase; net profit attributable to shareholders after deducting non-recurring gains and losses was 1.80 billion yuan, a 1.91% year-on-year increase[39] - The company continuously increased R&D investment, strengthening research in multi-dimensional perception, AI large models, data intelligence, and intelligent computing, launching new products such as WenShu and TianXi large model integrated machines[38][42][43] - The domestic market focused on fiscally supported areas like large transportation, water conservancy, and emergency management, with enterprise business centered on digital and intelligent transformation, and distribution business deepening penetration into counties and districts[38] - The overseas market built a healthy and sustainable business ecosystem, returned to a large video strategy, and increased the business volume of advantageous products[38] - Innovative businesses include machine vision and mobile robots, thermal imaging, automotive electronics, smart security inspection, smart fire protection, and storage media, expanding new high-potential growth points[46][52] Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 15,181,329,651.13 | 14,866,622,569.81 | 2.12% | No significant change | | Operating Cost | 8,864,525,518.69 | 8,782,722,018.67 | 0.93% | No significant change | | Selling Expenses | 2,163,482,109.43 | 2,216,940,115.97 | -2.41% | No significant change | | Administrative Expenses | 554,682,203.57 | 511,481,522.31 | 8.45% | No significant change | | Financial Expenses | -408,285,432.92 | -249,811,638.73 | -63.44% | Primarily due to exchange rate fluctuations, with increased exchange gains compared to the prior year | | Income Tax Expense | 270,570,745.94 | -33,838,461.10 | 899.60% | Primarily due to more software VAT refunds in the prior year | | R&D Investment | 1,984,405,423.10 | 1,901,330,160.90 | 4.37% | No significant change | | Net Cash Flow from Operating Activities | 639,122,979.11 | -507,185,620.71 | 226.01% | Primarily due to increased sales collections compared to the prior year | | Net Cash Flow from Investing Activities | -1,252,180,226.45 | -3,738,735,276.02 | 66.51% | Primarily due to more large-denomination certificate of deposit expenditures in the prior year | | Net Increase in Cash and Cash Equivalents | -2,737,708,517.17 | -6,386,639,986.44 | 57.13% | Primarily due to increased cash inflows from operating activities and decreased cash outflows from investing activities in the current period | Operating Revenue Composition (by Product, Region, Domestic Business Segment) | Category | Item | Amount for Current Reporting Period (RMB) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Total | Total Operating Revenue | 15,181,329,651.13 | 100.00% | 2.12% | | By Industry | Smart IoT Industry | 15,181,329,651.13 | 100.00% | 2.12% | | By Product | Smart IoT Products and Solutions | 11,740,932,998.53 | 77.34% | -2.39% | | | Of which: Software Business | 767,210,890.41 | 5.05% | 1.21% | | | Innovative Business | 3,022,964,624.87 | 19.91% | 22.83% | | | Other | 417,432,027.73 | 2.75% | 10.83% | | By Region | Domestic | 7,553,259,609.99 | 49.75% | 2.33% | | | Overseas | 7,628,070,041.14 | 50.25% | 1.91% | | Domestic Business Segments | To Government | 1,850,842,299.81 | 24.50% | 4.68% | | | To Business | 4,219,444,435.31 | 55.87% | 8.17% | | | Other | 1,482,972,874.87 | 19.63% | -13.41% | Main Business Gross Profit Margin Analysis | Category | Operating Revenue | Operating Cost | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | | Smart IoT Industry | 15,181,329,651.13 | 8,864,525,518.69 | 41.61% | 2.12% | 0.93% | 0.69% | | By Product | | | | | | | | Smart IoT Products and Solutions | 11,740,932,998.53 | 6,589,674,115.39 | 43.87% | -2.39% | -3.75% | 0.79% | | Of which: Software Business | 767,210,890.41 | 252,290,758.12 | 67.12% | 1.21% | -0.50% | 0.57% | | Innovative Business | 3,022,964,624.87 | 1,919,520,426.76 | 36.50% | 22.83% | 19.21% | 1.92% | | By Region | | | | | | | | Domestic | 7,553,259,609.99 | 4,866,160,607.15 | 35.58% | 2.33% | 2.72% | -0.24% | | Overseas | 7,628,070,041.14 | 3,998,364,911.54 | 47.58% | 1.91% | -1.17% | 1.63% | | Domestic Business Segments | | | | | | | | To Government | 1,850,842,299.81 | 1,089,576,316.95 | 41.13% | 4.68% | 9.07% | -2.37% | | To Business | 4,219,444,435.31 | 2,696,793,918.93 | 36.09% | 8.17% | 11.65% | -1.99% | | Other | 1,482,972,874.87 | 1,079,790,371.27 | 27.19% | -13.41% | -18.37% | 4.42% | IV. Non-Main Business Analysis The company had no non-main business analysis during the reporting period - The company had no non-main business analysis during the reporting period[54] V. Analysis of Assets and Liabilities Total assets decreased by 5.15% to 50.02 billion yuan, with changes in cash, other non-current assets, fixed assets, and construction in progress, while restricted assets totaled 1.91 billion yuan Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (RMB) | Proportion of Total Assets | Amount at End of Prior Year (RMB) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 8,445,984,587.70 | 16.88% | 11,181,803,423.83 | 21.20% | -4.32% | Primarily due to dividend distribution and year-end bonus payments | | Accounts Receivable | 15,790,636,239.17 | 31.57% | 17,046,094,518.79 | 32.32% | -0.75% | No significant change | | Inventories | 5,549,837,470.93 | 11.10% | 5,203,560,771.25 | 9.87% | 1.23% | No significant change | | Fixed Assets | 5,331,558,518.85 | 10.66% | 4,973,953,628.05 | 9.43% | 1.23% | Primarily due to transfer of construction in progress to fixed assets | | Construction in Progress | 850,146,152.40 | 1.70% | 1,254,554,187.36 | 2.38% | -0.68% | Primarily due to transfer of construction in progress to fixed assets | | Other Non-current Assets | 5,619,083,954.76 | 11.23% | 4,327,776,909.06 | 8.21% | 3.02% | Primarily due to purchase of large-denomination certificates of deposit | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | | Subtotal of Financial Assets | 2,346,440,287.58 | 2,341,099,505.23 | | Financial Liabilities | 4,268,603.52 | 3,784,147.07 | Asset Restrictions at End of Reporting Period | Item | Carrying Amount at Period End (RMB) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 107,943,051.28 | Letter of guarantee deposits, other restricted funds | | Notes Receivable and Receivables Financing | 898,323,101.98 | Pledged for issuing bank acceptance bills, endorsed or discounted notes not yet due and not derecognized | | Accounts Receivable | 1,461,555.02 | Supply chain finance discounting and factoring not yet derecognized | | Fixed Assets | 904,506,973.80 | Fixed assets leased out under operating leases | | Total | 1,912,234,682.08 | | VI. Investment Analysis Total investment decreased by 96.84% year-on-year; securities investments were 26.58 million yuan, and hedging derivatives incurred a 7.27 million yuan loss, while raised funds utilization reached 92.57% with project adjustments 1. Overall Situation The company's total investment for the reporting period was 2.97 million yuan, a significant decrease of 96.84% compared to the prior year Report Period Investment Amount Change | Indicator | Investment Amount for Reporting Period (RMB) | Investment Amount for Prior Year Period (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment Amount | 2,965,513.85 | 93,948,173.50 | -96.84% | 2. Significant Equity Investments Acquired During the Reporting Period The company made no significant equity investments during the reporting period - The company made no significant equity investments during the reporting period[60] 3. Significant Non-Equity Investments in Progress During the Reporting Period Significant non-equity investments in progress are detailed in the "5. Use of Raised Funds" section of this chapter - Significant non-equity investment details can be found in the section on the use of raised funds[60] 4. Financial Asset Investments The company's securities investments, primarily domestic and overseas stocks, had a carrying value of 26.58 million yuan at period-end, and foreign exchange hedging resulted in a 7.27 million yuan loss Securities Investment Status | Type of Security | Security Code | Security Abbreviation | Carrying Amount at Period End (RMB) | Accounting Subject | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic and Overseas Stocks | 688213 | SmartSens | 26,577,200.00 | Financial Assets Held for Trading | Own Funds | - Derivative investments for hedging purposes incurred an actual loss of 7.27 million yuan during the reporting period, with fair value change gains from foreign exchange contracts of 471.1 thousand yuan[63] 5. Use of Raised Funds The company utilized 4.71 billion yuan, or 92.57%, of its 5.09 billion yuan raised in 2023, with adjustments made to AI and IoT R&D projects to optimize efficiency Overall Use of Raised Funds | Year of Fundraising | Fundraising Method | Net Amount of Raised Funds (1) (RMB) | Total Raised Funds Used Cumulatively (2) (RMB) | Utilization Rate of Raised Funds at Period End (3)=(2)/(1) | | :--- | :--- | :--- | :--- | :--- | | 2023 | Private Placement of Shares | 5,089,832,584.72 | 4,711,573,300.00 | 92.57% | - The "AI Technology R&D and Application Research Project" increased its raised fund investment scale to strengthen R&D resource allocation and talent development for AI visual large models[71] - The "5G, IoT, and Multi-dimensional Perception Product Solution R&D Project" reduced its raised fund investment scale, optimizing fund utilization efficiency and project investment layout by reusing resources from the Hangzhou headquarters R&D center[71] VII. Significant Asset and Equity Disposals The company did not dispose of any significant assets but sold a 32.7321% stake in Hangzhou Huacheng Network Technology Co., Ltd. for 716.83 million yuan, with no material adverse impact - The company did not dispose of any significant assets during the reporting period[72] Significant Equity Disposal Status | Transacting Party | Equity Disposed | Disposal Date | Transaction Price (Million RMB) | Net Profit Contributed by this Equity to the Listed Company from Beginning of Period to Disposal Date (Million RMB) | Impact of Disposal on the Company | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Zhicheng Technology Co., Ltd. | 32.7321% equity of Hangzhou Huacheng Network Technology Co., Ltd. | June 20, 2025 | 716.83 | 48.39 | Will not have a material adverse impact on the company's financial and operating conditions | VIII. Analysis of Major Holding and Participating Companies This section lists financial data for key subsidiaries like Zhejiang Dahua Technology and Zhejiang Dahua Zhilian, noting the disposal of Hangzhou Huacheng Network and the deregistration of IMOU NETWORK TECHNOLOGY AUSTRALIA PTY LTD had no significant impact Major Subsidiary Financial Data (Unit: Million RMB) | Company Name | Company Type | Main Business | Registered Capital (Million RMB) | Total Assets (Million RMB) | Net Assets (Million RMB) | Operating Revenue (Million RMB) | Operating Profit (Million RMB) | Net Profit (Million RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Dahua Technology Co., Ltd. | Subsidiary | Technology development, services, consulting, transfer; computer software and hardware manufacturing, sales, and system services; security equipment, mechanical and electrical equipment, photovoltaic equipment manufacturing, sales; IoT equipment sales and technical services; charging pile sales; cargo warehousing services, bonded warehouse operations | 1,306.81 | 22,765.70 | 2,634.28 | 10,643.97 | 84.77 | 71.32 | | Zhejiang Dahua Zhilian Co., Ltd. | Subsidiary | Technology development, services, consulting, transfer; computer software and hardware manufacturing, sales; electronic products and components, security equipment, communication equipment manufacturing and sales; self-owned property leasing; cargo warehousing services; catering services; import and export of goods | 1,885.80 | 6,303.62 | 1,677.10 | 2,575.52 | 59.58 | 44.92 | - During the reporting period, the company disposed of Hangzhou Huacheng Network Technology Co., Ltd. and its controlled subsidiaries through equity transfer, and deregistered IMOU NETWORK TECHNOLOGY AUSTRALIA PTY LTD, with no significant impact on overall production, operations, and performance[76] IX. Structured Entities Controlled by the Company The company had no structured entities under its control during the reporting period - The company had no structured entities under its control during the reporting period[77] X. Risks Faced by the Company and Countermeasures The company's risks, including technological upgrades, business model changes, international operations, and supply chain security, remained unchanged, with active countermeasures like increased R&D and enhanced compliance - During the reporting period, the company faced no significant changes in risks and continuously identified and responded to various risks[77] - By increasing R&D investment, the company continuously strengthened core technology research in multi-dimensional perception, artificial intelligence large models, and video cloud, to address risks of technological upgrades[77] - Actively prevented and responded to international operational risks, improved the overall overseas compliance and risk control system, and strengthened local production and manufacturing capabilities[79] - Continuously improved credit management policies, optimized project reviews, and strengthened collection of accounts receivable to address risks of uncertainty in local government fiscal payment capabilities[80] XI. Implementation of Market Value Management System and Valuation Enhancement Plan The company has established a market value management system to enhance investment value through core business focus, operational efficiency, M&A, equity incentives, and investor relations - The company has established a market value management system, aiming to enhance the company's investment value through various means[83] - Methods to enhance investment value include focusing on the main business, improving operational efficiency and profitability, M&A, equity incentives, employee stock ownership plans, cash dividends, investor relations management, improving information disclosure quality, and share repurchases[83] XII. Implementation of 'Dual Enhancement of Quality and Returns' Action Plan The company implemented its 'Dual Enhancement of Quality and Returns' action plan, focusing on high-quality development, strengthening governance, investor relations, consistent cash dividends, and a share repurchase program - The company has disclosed its 'Dual Enhancement of Quality and Returns' action plan, focusing on high-quality development and fulfilling its corporate mission[84] - The company continuously strengthened its corporate governance foundation, improved internal control systems, and enhanced investor relations management[84] - The company adheres to annual cash dividends, with cumulative cash dividends of 9.10 billion yuan since listing. During the reporting period, the 2024 annual profit distribution plan was implemented, distributing cash 1.50 billion yuan[85] - The company initiated a share repurchase plan, with a total repurchase amount of no less than 300 million yuan and no more than 500 million yuan, for the purpose of cancellation to reduce registered capital[86] Section IV Corporate Governance, Environment, and Society This section covers changes in the board and management, profit distribution, equity incentive plans, environmental disclosures, and social responsibility initiatives I. Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, or senior management during the reporting period[88] II. Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[89] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company repurchased and canceled 20.54 million restricted shares, adjusted stock option exercise prices, saw 11.05 million options exercised, and launched employee co-investment plans for innovative business subsidiaries - The company repurchased and canceled 20,544,960 restricted shares from the 2022 stock option and restricted stock incentive plan at a repurchase price of 8.16 yuan/share[90] - Due to the implementation of the profit distribution plan, the stock option exercise price was adjusted from 15.473 yuan/share to 15.015 yuan/share[90] - The second exercise period of the 2022 stock option and restricted stock incentive plan has been met, with 11,052,904 options exercised as of June 30, 2025[91] - The company launched an employee co-investment incentive plan for specific innovative business subsidiaries, aiming to organically combine company and employee interests[92] IV. Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[94] V. Social Responsibility Details on the company's social responsibility initiatives can be found in the '2024 Environmental, Social and Governance Report' published on Juchao Information Network - Details on the company's social responsibility can be found in the '2024 Environmental, Social and Governance Report'[94] Section V Significant Matters This section addresses commitments, related party transactions, guarantees, litigation, penalties, and other significant events affecting the company I. Commitments Fulfilled and Overdue Unfulfilled by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The company reported no overdue unfulfilled commitments by any related parties as of the end of the reporting period - The company reported no overdue unfulfilled commitments by any related parties during the reporting period[96] II. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company The company reported no non-operating funds occupied by controlling shareholders or other related parties during the reporting period - The company reported no non-operating funds occupied by controlling shareholders or other related parties during the reporting period[97] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[98] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was unaudited[99] V. Board of Directors' and Supervisory Board's Explanation on 'Non-Standard Audit Report' for the Current Reporting Period The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[100] VI. Board of Directors' Explanation on 'Non-Standard Audit Report' for the Prior Year The company had no non-standard audit report for the prior year during the reporting period - The company had no non-standard audit report for the prior year during the reporting period[100] VII. Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[100] VIII. Litigation Matters The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[101] IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[102] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reported no integrity issues concerning itself, its controlling shareholder, or actual controller during the reporting period - The company reported no integrity issues during the reporting period[103] XI. Significant Related Party Transactions The company anticipates 1.93 billion yuan in routine related party transactions for 2025 and waived pre-emptive rights for certain equity transfers in subsidiaries without affecting control or consolidation - The company anticipates total routine related party transactions of 1.93 billion yuan (excluding tax) for 2025[109] - The company waived its pre-emptive rights for partial equity transfers in its controlled subsidiaries Zhejiang Huayixin Technology Co., Ltd., Zhejiang Huaruijie Technology Co., Ltd., and Zhejiang Huashi Zhijian Technology Co., Ltd., which will not result in a decrease in the company's equity ratio or a change in the scope of consolidated financial statements[110] XII. Significant Contracts and Their Performance The company leases out some properties and equipment, and leases in others for operations; total external guarantees amount to 13.48 billion yuan, with an actual balance of 9.17 billion yuan, representing 24.71% of net assets, and entrusted wealth management has an outstanding balance of 1.08 billion yuan - During the current reporting period, some of the company's own properties and equipment were leased out, while leased properties and equipment were used for office, warehouse, and production facilities[114] Company Guarantee Total | Indicator | Amount (Million RMB) | | :--- | :--- | | Total Approved Guarantee Limit During Reporting Period | 13,477.00 | | Total Actual Guarantees Issued During Reporting Period | 1,740.15 | | Total Approved Guarantee Limit at End of Reporting Period | 13,477.00 | | Total Actual Guarantee Balance at End of Reporting Period | 9,166.43 | | Proportion of Total Actual Guarantees to Company's Net Assets | 24.71% | Entrusted Wealth Management | Specific Type | Source of Funds for Entrusted Wealth Management | Amount of Entrusted Wealth Management (Million RMB) | Outstanding Balance (Million RMB) | | :--- | :--- | :--- | :--- | | Brokerage Wealth Management Products | Own Funds | | 1,000.00 | | Brokerage Wealth Management Products | Own Funds | | 80.00 | | Total | | | 1,080.00 | XIII. Explanation of Other Significant Matters The board and shareholders approved a share repurchase plan of 300 million to 500 million yuan for cancellation to reduce registered capital, to be implemented within 12 months - The company's board of directors and general meeting of shareholders approved the repurchase of some of the company's A-shares through centralized bidding for the purpose of cancellation to reduce registered capital[132] - The total repurchase amount will be no less than 300 million yuan (inclusive) and no more than 500 million yuan (inclusive), with an implementation period of 12 months from the date the repurchase plan is approved by the general meeting of shareholders[132] XIV. Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[133] Section VI Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder structure, and shareholdings of directors, supervisors, and senior management I. Share Change Status Total shares decreased by 12.79 million due to the repurchase and cancellation of 20.54 million restricted shares and the exercise of 7.76 million incentive options, with 6.65 million shares repurchased for 103.41 million yuan by period-end Share Change Status | Share Type | Number Before This Change (shares) | Increase/Decrease in This Change (shares) | Number After This Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 1,191,426,894 | -20,633,370 | 1,170,793,524 | | II. Unrestricted Shares | 2,104,202,839 | 7,845,891 | 2,112,048,730 | | III. Total Shares | 3,295,629,733 | -12,787,479 | 3,282,842,254 | - The main reasons for share changes were the repurchase and cancellation of 20,544,960 restricted shares; and the independent exercise of 7,757,481 options by incentive recipients[136] - As of June 30, 2025, the company repurchased 6,652,200 shares through its dedicated share repurchase securities account via centralized bidding, with a total transaction amount of 103.41 million yuan[138] II. Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[142] III. Number of Shareholders and Shareholding Status As of the reporting period end, there were 187,566 common shareholders; Fu Liquan is the largest shareholder with 31.19%, followed by China Mobile Communications Group Co., Ltd. with 8.93%, and Fu Liquan and Chen Ailing are married - The total number of common shareholders at the end of the reporting period was 187,566[143] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Fu Liquan | Domestic Natural Person | 31.19% | 1,023,868,980 | 767,901,735 | 255,967,245 | | China Mobile Communications Group Co., Ltd. | State-owned Legal Person | 8.93% | 293,103,400 | 293,103,400 | 0 | | Zhu Jiangming | Domestic Natural Person | 4.66% | 153,140,260 | 0 | 153,140,260 | | Chen Ailing | Domestic Natural Person | 2.17% | 71,262,813 | 53,447,110 | 17,815,703 | | Wu Jun | Domestic Natural Person | 2.11% | 69,172,886 | 51,879,664 | 17,293,222 | | HKSCC Nominees Limited | Overseas Legal Person | 2.04% | 67,006,597 | 0 | 67,006,597 | | Industrial Bank Co., Ltd. - ChinaAMC CSI Robotics ETF | Other | 1.35% | 44,336,975 | 0 | 44,336,975 | | China Securities Finance Corporation Limited | Domestic Non-State-owned Legal Person | 1.21% | 39,611,241 | 0 | 39,611,241 | | Industrial and Commercial Bank of China Limited - Huatai-PineBridge CSI 300 ETF | Other | 1.08% | 35,316,830 | 0 | 35,316,830 | | China Construction Bank Corporation - E Fund CSI 300 ETF Initiated Fund | Other | 0.77% | 25,153,943 | 0 | 25,153,943 | - Mr. Fu Liquan and Ms. Chen Ailing are married[144] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management Shareholdings of directors, supervisors, and senior management slightly decreased due to the company's repurchase and cancellation of their unvested restricted shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Number of Shares Held at Beginning of Period (shares) | Number of Shares Reduced in Current Period (shares) | Number of Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Fu Liquan | Chairman, President | 1,023,868,980 | 0 | 1,023,868,980 | | Zhao Yuning | Director, Executive President | 1,312,600 | 244,800 | 1,067,800 | | Liu Ming | Senior Vice President | 805,500 | 190,800 | 614,700 | | Li Zhijie | Senior Vice President | 940,600 | 190,800 | 749,800 | | Song Ke | Senior Vice President | 327,600 | 163,800 | 163,800 | | Wu Jian | Board Secretary, Senior Vice President | 1,624,935 | 190,800 | 1,434,135 | | Xu Qiaofen | Senior Vice President, CFO | 828,600 | 163,800 | 664,800 | | Xu Zhicheng | Senior Vice President | 882,600 | 190,800 | 691,800 | | Zhu Jiantang | Senior Vice President | 1,075,825 | 190,800 | 885,025 | | Chen Qiang | Senior Vice President | 53,040 | 26,520 | 26,520 | | Total | | 1,172,206,179 | 1,552,920 | 1,170,653,259 | - The reduction in shareholdings during this period was due to the company's repurchase and cancellation of restricted shares held by directors and senior management that had been granted but not yet unlocked[146] V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained no significant changes during the reporting period[147] - The company's actual controller remained no significant changes during the reporting period[147] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[148] Section VII Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[150] Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes I. Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[152] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025 - Provides the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025[153][157][161][165][169][171][177][183] III. Company Basic Information Zhejiang Dahua Technology Co., Ltd., established in June 2002 and listed in May 2008, has 3.28 billion shares, primarily engages in smart IoT product R&D, production, and sales, and is controlled by Fu Liquan and Chen Ailing - The company was established in June 2002 and listed on the Shenzhen Stock Exchange in May 2008[193] - As of June 30, 2025, the company's total issued share capital was 3,282,842,254 shares[193] - Its main business activities are the R&D, production, and sales of smart IoT products, providing video-centric smart IoT solutions and operational services[194] - The actual controllers are Fu Liquan and Chen Ailing[194] IV. Basis of Financial Statement Preparation The financial statements are prepared in accordance with Chinese Accounting Standards and based on a going concern assumption, with the company possessing at least 12 months of continuous operating capability - The financial statements are prepared in accordance with 'Enterprise Accounting Standards' and relevant regulations[195] - The financial statements are prepared on a going concern basis, and the company possesses the ability to operate continuously for at least 12 months[196] V. Significant Accounting Policies and Estimates The company adheres to Enterprise Accounting Standards, with a fiscal year from January 1 to December 31, a 12-month operating cycle, and RMB as its functional currency, detailing policies for business combinations, financial instruments, revenue, and other key areas - The company adheres to Enterprise Accounting Standards, with an accounting period from January 1 to December 31 of the Gregorian calendar, an operating cycle of 12 months, and RMB as its functional currency[198][199][200][201] - Detailed disclosures are provided for specific accounting policies and estimates regarding business combinations, financial instruments, notes receivable, accounts receivable, contract assets, inventories, long-term equity investments, fixed assets, intangible assets, revenue, and leases[203][211][221][222][225][227][233][240][245][249][256][265][273](index=