2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Zhejiang Dahua Technology Co., Ltd.
2019 Interim Report
August 2019
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Section I Important Notes, Contents And Definitions
The Board of Directors, Board of Supervisors, Directors, Supervisors and Senior Management
of Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as the "Company") hereby
guarantee that the information presented in this interim report shall be authentic, accurate and
complete and free of any false records, misleading statements or material omissions, and they will
bear joint and several liabilities for such information.
Fu Liquan, the Company's legal representative, Wei Meizhong, chief accountant, and Xu
Qiaofen, person in charge of accounting institution (Accounting Officer) hereby declare and warrant
that the financial statements in this interim report are authentic, accurate and complete.
All directors attended the meeting of the Board of Directors for deliberation of this annual
report.
In the reporting period, there are no major changes in the risks faced by the Company, and the
Company has always been striving to identify all the risks, and actively taking the countermeasures
to avoid and lower the risks:
The Company invites each investor to carefully read the interim report and pay particular
attention to the following risk factors:
1. Risk of technology upgrade
The video surveillance industry is a typical technology-intensive industry, which is changing
extremely fast. The Company has always attached importance to technical innovation and R&D of
new products, with a strong ability of continuous innovation. If the Company is unable to keep up
with development trends in the industry's technology, to pay full attention to customers' diversified
individual needs, and to be followed by sufficient R&D investments, it will still face the risk of
losing market competitiveness due to discontinuous innovation.
2. Risk of business model transformation
With the development of network communications, cloud computing, and big data, as well as
the upgrade of smart phones application, the business model in the IoT era may have an impact on
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
the traditional industry development model. If an enterprise cannot timely grasp opportunities
brought about by the business model transformation, it may face the risk that the original market
structure becomes broken.
3. Risk of product information security
The Company attaches great importance to and continuously strengthens resource investment
to ensure safe and reliable operations of the security system so as to respond to the product
information security risks on the Internet. However, there may still exist hackers, computer viruses,
physical security vulnerabilities, natural disasters, accidents, power interruptions,
telecommunications failures, and other terrorism or warfare events, which exert influences such as
security vulnerabilities, system failures, or service interruptions.
4. Risk of intellectual property rights
The acceleration of the Company's globalization and self-owned brand strategy will likely
bring intellectual property risks such as IP rights protection and patent infringement. Preventions of
and responses to the above risk such as rights claims or lawsuits, whether active or passive, all
feature high costs, long cycles and high uncertainty, and may bring about risks such as fluctuations
in business relations and public opinions environment, increased legal litigations and rising costs.
5. Risk of exchange rate
The Company's export transactions are mostly settled in United States Dollars ("USD"), while
overseas sales have increased continuously. Therefore, fluctuations in the foreign exchange rate
have the potential to affect the profits of the Company.
6. Risk of decline in local fiscal spending power
At present, local fiscal revenues are declining, while the debt is relatively high. If the local
fiscal paying capacity is reduced, it may lead to the slowdown in the growth of some industry
demands, extensions of project time, longer periods for companies to withdraw capital, and
customers' payment delay.
7. Risk of international operation
The Company's products and solutions cover many overseas countries and regions.
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
International business operation may face trade protection, political conflict, debt problem, and
localized operation compliance in the countries where they operate, which may bring negative
impact on the Company's local business development.
The Company plans not to distribute cash dividends, send bonus shares, and not to convert
capital reserves to share capital.
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Contents
Section I Important Notes, Contents And Definitions ....................................................................................................................... 2
Section II Company Profile and Main Financial Indicators............................................................................................................. 12
Section III Corporate Business Overview ...................................................................................................................................... 15
Section IV Discussion and Analysis on Business Circumstance ...................................................................................................... 16
Section V Significant Events......................................................................................................................................................... 29
Section VI Changes in Shares and Information about Shareholders ................................................................................................ 45
Section VII Information of Preferred Shares .................................................................................................................................. 52
Section VIII Information about Directors, Supervisors and Senior Management ............................................................................. 53
Section IX Corporate Bonds ......................................................................................................................................................... 55
Section X Financial Reports.......................................................................................................................................................... 56
Section XI Documents Available for Inspection ........................................................................................................................... 205
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Definitions
Refers
Item Definitions
To
Refers
Reporting Period From January 1, 2019 to June 30, 2019
To
Refers
Dahua Technology Zhejiang Dahua Technology Co., Ltd.
To
Dahua System Engineering, System Engineering Refers
Zhejiang Dahua System Engineering Co., Ltd.
Company To
Refers
Dahua Vision Technology Zhejiang Dahua Vision Technology Co., Ltd.
To
Refers
Dahua Security Network, Operation Company Zhejiang Dahua Security Network Operation Service Co., Ltd.
To
Refers
Dahua Ju'an Zhejiang Dahua Ju'an Technology Co., Ltd.
To
Refers
Guangxi Dahua Information Guangxi Dahua Information Technology Co., Ltd.
To
Refers
Dahua Security Zhejiang Dahua Security Service Co., Ltd.
To
Refers
Guangxi Security Guangxi Dahua Security Service Co., Ltd.
To
Refers
Huatu Microchip Zhejiang Huatu Microchip Technology Co., Ltd.
To
Refers
Dahua Zhongzhi Guangxi Dahua Zhongzhi Technology Co., Ltd.
To
Refers
Xiaohua Technology, Hangzhou Xiaohua Hangzhou Xiaohua Technology CO., LTD.
To
Refers
Dahua Zhilian Zhejiang Dahua Zhilian Co., Ltd.
To
Refers
Tecomore Technology Hangzhou Tecomore Technology Co., Ltd.
To
Dahua Investment, Dahua Investment Refers
Zhejiang Dahua Investment Management Co., Ltd.
Management To
South North United Refers South North United Information Technology Co., Ltd.
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
To
Refers
Guangxi Zhicheng, Dahua Zhicheng Guangxi Dahua Zhicheng Co., Ltd.
To
Refers
Hangzhou Huacheng, Huacheng Network Hangzhou Huacheng Network Technology Co., Ltd.
To
Refers
Xinjiang Information Xinjiang Dahua Zhixin Information Technology Co., Ltd.
To
Refers
HuaRay Technology Zhejiang HuaRay Technology Co., Ltd.
To
Refers
Fuyang Hua'ao Hangzhou Fuyang Hua'ao Technology Co., Ltd.
To
Refers
Huafei Intelligent Zhejiang Huafei Intelligent Technology CO., LTD.
To
Refers
Huachuang Vision Zhejiang Huachuang Vision Technology Co., Ltd.
To
Refers
Guizhou Huayi Guizhou Huayi Shixin Technology Co., Ltd.
To
Refers
Xinjiang Dahua Information Xinjiang Dahua Information Technology Co., Ltd.
To
Refers
Xinjiang Intelligence Xinjiang Dahua Intelligence Technology Co., Ltd.
To
Refers
Guizhou Intelligence Guizhou Dahua Intelligence Technology Co., Ltd.
To
Refers
Xinjiang Zhihe Xinjiang Dahua Zhihe Information Technology Co., Ltd.
To
Refers
China Standard Intelligent Security China Standard Intelligent Security Technology Co., Ltd.
To
Refers
Guangxi Huacheng Guangxi Huacheng Technology Co., Ltd.
To
Refers
Meitan Dahua Technology Guizhou Meitan Dahua Information Technology Co., Ltd.
To
Refers
Inner Mongolia Zhimeng Inner Mongolia Dahua Zhimeng Information Technology Co., Ltd.
To
Refers
Xinjiang Zhitian Xinjiang Dahua Zhitian Information Technology Co., Ltd.
To
Refers
Xinjiang Xinzhi Xinjiang Dahua Xinzhi Information Technology Co., Ltd.
To
Refers
Xinjiang Huayue Xinjiang Dahua Huayue Information Technology Co., Ltd.
To
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Refers
Dahua HK Dahua Technology (HK) Limited
To
Refers
Leapmotor Technology Zhejiang Leapmotor Technology Co., Ltd.
To
Refers
Leapmotor Automobile Leapmotor Automobile Co., Ltd.
To
Refers
Tianjin Dahua Information, Tianjin Dahua Tianjin Dahua Information Technology Co., Ltd.
To
Refers
Hunan Dahua Zhilong, Dahua Zhilong Hunan Dahua Zhilong Information Technology Co., Ltd.
To
Refers
Huaxiao Technology Zhejiang Huaxiao Technology Co., Ltd.
To
Refers
Vision Technology Zhejiang Fengshi Technology Co., Ltd.
To
Refers
Xi’an Dahua Zhilian, Xi’an Dahua Xi'an Dahua Zhilian Technology Co., Ltd.
To
Refers
Wuxi Ruipin Wuxi Dahua Ruipin Technology Co., Ltd.
To
Refers
Dahua Robot Zhejiang Dahua Robot Technology Co., Ltd.
To
Refers
Beijing Huayue Beijing Huayue Shangcheng Information Technology Service Co., Ltd.
To
Refers
Shanghai Huashang Shanghai Huashang Chengyue Information Technology Service Co., Ltd.
To
Refers
Dahua Jinzhi Zhejiang Dahua Jinzhi Technology Co., Ltd.
To
Refers
Dahua Guangxun Sichuan Dahua Guangxun Photoelectric Technology Co., Ltd.
To
Refers
Huajuan Technology Hangzhou Huajuan Technology Co., Ltd.
To
Refers
Dahua HK, Dahua Hong Kong Dahua Technology (HK) Limited
To
Refers
Zhoushan Operation Zhejiang Zhoushan Digital Development Operation Co., Ltd.
To
Refers
Dahua USA Dahua Technology USA Inc.
To
Refers
Dahua Europe Dahua Europe B.V.
To
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Refers
Dahua Middle East Dahua Technology Middle East FZE
To
Refers
Dahua Mexico Dahua Technology Mexico S.A. DE C.V
To
Refers
Dahua Chile Dahua Technology Chile SpA
To
Refers
Dahua Malaysia Dahua Security Malaysia SDN. BHD.
To
Refers
Dahua Korea Dahua Technology Korea Company Limited
To
Refers
Dahua Indonesia PT. Dahua Vision Technology Indonesia
To
Refers
Dahua Colombia Dahua Technology Colombia S.A.S
To
Refers
Dahua Australia Dahua Technology Australia PTY LTD
To
Refers
Dahua Singapore Dahua Technology Singapore Pte. Ltd.
To
Refers
Dahua South Africa Dahua Technology South Africa Proprietary Limited
To
Refers
Dahua Peru Dahua Technology PerúS.A.C
To
Refers
Dahua Russia Dahua Technology Rus Limited Liability Company
To
Refers DAHUA TECHNOLOGY BRASIL COMRCIO E SERVIOS EM
Dahua Brazil
To SEGURANA ELETRNICA LTDA
Refers
Dahua Canada Dahua Technology Canada INC.
To
Refers
Dahua Panama Dahua Technology Panama S.A.
To
Refers
Dahua Hungary Dahua Technology Hungary Kft
To
Refers
Dahua Poland Dahua Technology Poland Sp. z o.o.
To
Refers
Dahua Tunisia Dahua Technology Tunisia
To
Refers
Dahua Kenya Dahua Technology Kenya Limited
To
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Refers
Dahua UK Dahua Technology UK Limited
To
Refers
Dahua Bulgaria Dahua Technology Bulgaria EOOD
To
Refers
Dahua Germany Dahua Technology GmbH
To
Refers
Dahua Serbia Dahua Technology SRB d.o.o.
To
Refers
Dahua India Dahua Technology India Private Limited
To
Refers
Dahua Turkey Dahua Guvenlik Teknolojileri Sanayi ve Ticaret A.S.
To
Refers
Dahua Czech Dahua Technology Czech s.r.o.
To
Refers
Dahua Argentina Dahua Argentina S.A.
To
Refers
Dahua Spain Dahua Iberia, S.L.
To
Refers
Dahua Kazakhstan Dahua Technology Kazakhstan LLP
To
Refers
Dahua Denmark Dahua Technology Denmark Aps.
To
Refers
Dahua France Dahua Technology France
To
Refers
American Lechange Lechange Inc.
To
Refers
Dahua Technology Holdings Dahua Technology Holdings Limited
To
Refers
Dahua New Zealand Dahua Technology New Zealand Limited
To
Refers
Dahua Netherlands Dahua Technology Netherlands B.V.
To
Refers
Dahua Morocco Dahua Technology Morocco SARL
To
Refers
Dahua Romania Dahua Technology S.R.L.
To
Refers
Dahua Uzbekistan DAHUA VISION LLC
To
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Refers
Dahua Technology Italy Dahua Technology Italy S.R.L.
To
Refers
Dahua Lorex Dahua Technology Inc.
To
Refers
Dahua Bulgaria Dahua Technology Bulgaria EOOD
To
Refers
Dahua Sri Lanka Dahua Technology China (Pvt) LTD
To
Refers
Dahua Pakistan Dahua Technology Pakistan (private) Limited
To
Refers
Dahua Thailand Dahua Technology(Thailand) Co.,LTD.
To
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Section II Company Profile and Main Financial Indicators
I. Corporate Information
Stock Abbreviation Dahua Stock Code 002236
Stock Exchange Where the
Shares of the Company are Shenzhen Stock Exchange
Listed
Company Name in Chinese 浙江大华技术股份有限公司
Abbr. of the Company Name
大华股份
in Chinese (If Any)
Company Name in English (If
ZHEJIANG DAHUA TECHNOLOGY CO.,LTD
Any)
Legal Representative Fu Liquan
II. Contacts and Contact Information
Board Secretary Securities Affairs Representative
Name Wu Jian Lou Qiongyu
No. 1199, Bin'an Road, Binjiang District, No. 1199, Bin'an Road, Binjiang District,
Address
Hangzhou City, Zhejiang Province Hangzhou City, Zhejiang Province
Tel. 0571-28939522 0571-28939522
Fax 0571-28051737 0571-28051737
E-mail zqsw@dahuatech.com zqsw@dahuatech.com
III. Other Relevant Information
1. Contact information of the Company
Are there any changes in the registered address, office address, postal code, website and email of the Company during the reporting
period
□ Applicable √ Not applicable
There are no changes in the registered address, office address, postal code, website and email of the Company during the reporting
period. For details, refer to 2018 Annual Report.
2. Information disclosure and place of the report
Are there any changes in the information disclosure and place for report preparation during the reporting period
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
□ Applicable √ Not applicable
There are no changes in the newspaper designated by the Company for information disclosure, website specified by CSRC for release
of the interim report and place for interim report preparation during the reporting period. For details, refer to 2018 Annual Report.
IV. Key Accounting Data and Financial Indicators
Whether the Company requires retroactive adjustment or restatement of accounting data in prior years
□ Yes √ No
Corresponding Period of
Current Reporting Period YoY Change (%)
Last Year
Operating Revenue (RMB) 10,806,566,370.89 9,814,041,352.48 10.11%
Net Profit Attributable to Shareholders of
1,238,880,948.74 1,081,916,886.52 14.51%
the Listed Company (RMB)
Net Profit Attributable to Shareholders of
the Listed Company after Deducting 1,138,651,748.03 1,107,484,389.00 2.81%
Non-recurring Gains and Losses (RMB)
Net Cash Flow Generated by Operational
-870,467,092.88 -1,096,356,837.00 20.60%
Activities (RMB)
Basic Earnings per Share (RMB/Share) 0.42 0.37 13.51%
Diluted Earnings per Share (RMB/Share) 0.42 0.37 13.51%
Weighted Average ROE 9.40% 9.91% -0.51%
At the End of the Current
End of Last Year YoY Change (%)
Reporting Period
Total Assets (RMB) 27,427,525,950.44 26,350,599,778.15 4.09%
Net Assets Attributable to Shareholders of
13,557,642,896.49 12,618,758,918.48 7.44%
the Listed Company (RMB)
V. Differences in Accounting Data between Domestic and Overseas Accounting Standards
1. Difference in the financial report of net profits and net assets according to the disclosure of International
Accounting Standards and China Accounting Standards
□ Applicable √ Not applicable
There are no differences of net profits and net assets in the financial report disclosed according to the international accounting
standards and Chinese accounting standards during the reporting period.
2. Difference in the financial report of net profits and net assets according to the disclosure of Overseas
Accounting Standards and China Accounting Standards
□ Applicable √ Not applicable
There are no differences of net profits and net assets in the financial reports disclosed according to the overseas accounting standards
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
and Chinese accounting standards during the reporting period.
VI. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Name Amount Note
Profits or Losses From Disposal of Non-Current Assets (Including the Write-Off for the
10,503,852.18
Accrued Impairment of Assets)
The Government Subsidies Included in the Current Profits and Losses (Excluding the
Government Subsidies Closely Related to Regular Businesses of the Company and Issued 79,439,313.69
in the Quota or Quantity Based on the National Standards
Profits and Losses Resulting from the Changes in Fair Value for Holding Trading Financial
Assets and Trading Financial Liabilities, and Investment Income from Disposal of Trading
Financial Assets, Trading Financial Liabilities, and Financial Assets Available for Trading, 30,141,194.90
Excluding the Effective Hedging Businesses Related to the Regular Business Operation of
the Company
Non-operating Revenue and Expenses Other Than the Above 2,248,870.06
Other Gains and Losses Items that Fit the Definition of Non-recurring Gains and Losses 18,436,697.18
Less: Impact of Income Tax 3,667,332.94
Impact of Minority Equity (after tax) 100,229,200.71 --
For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcement on Information Disclosure for
Companies Offering Their Securities to Public - Non-recurring Gains and Losses, or non-recurring gains and losses items listed in the
said document defined as recurring ones, please specify the reasons.
□ Applicable √ Not applicable
In the reporting period, the Company did not define any non-recurring gains and losses items defined and listed in the No. 1
Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to Public - Non-recurring Gains and
Losses, as recurring gains and losses items.
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Section III Corporate Business Overview
I. The Principal Business of the Company during the Reporting Period
There are no significant changes in the principal business of the Company during the reporting period. For details, refer to 2018
Annual Report.
II. Material Changes to Major Assets
1. Major changes in main assets
Major Assets Explanation of Material Changes
Equity Assets No major changes.
Fixed Assets No major changes.
Intangible Assets No major changes.
Construction in Increase by 38.79% compared with the beginning of the year, mainly due to the increase in the investment of
Progress Phase II of Hangzhou Smart Manufacturing Base Project, Smart IoT solutions R&D and industrial projects.
Decrease by 48.79% compared with the beginning of the years, mainly due to the decrease of settlement of
Notes Receivable
sales notes in this period.
Long-term Increase by 41.88% compared with the beginning of the year, mainly due to the acceptance of installment
Receivables payment for selling products.
2. Major overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
There are no significant changes in the core competitiveness of the Company during the reporting period. For details, refer to 2018
Annual Report.
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Section IV Discussion and Analysis on Business Circumstance
I. Overview
During the first half year of 2019, despite the complex environment at home and abroad, the Company has been focusing on
technological innovation as the foundation, customer demands as the orientation and customer success as the goal. Supported by its
constant technological innovation, extensive industry experience and wide customer coverage, the Company continuously improves
its video-centric smart IoT solutions, and proactively grasps the market and industry trends to promote stable growth of business
performance. During the reporting period, the Company has achieved RMB 10.807 billion in operating revenue, a year-over-year
increase of 10.11% and RMB 1.239 billion in net profits attributable to shareholders of the listed company, a year-over-year increase
of 14.51%.
Main business strategies of the Company include:
1. Continuously increasing the investment in R&D, and improving the capabilities to come up with comprehensive
solutions
The Company is committed to taking technological innovation as the core, facilitates the layout of artificial intelligence, cloud
computing, big data, chip, machine vision, robots and other advanced technologies and continuously increases the investment in
R&D. The Company gains deep insight into the industry and technology trends, constructs a differential technology system orient ed
toward "Full Sensing, Full Intelligence, Full Computing and Full Ecosystem (4 Full)" and continuously improves the capability to
come up with comprehensive end-to-end solutions oriented to the pain points of customers; as well as strengthens the construction of
software structuring competence and gradually establishes the operation capability for complete process from software development,
sales to delivery.
2. Enhancing operation capability for value customers and improving systematic marketing ability
The Company further develops the customer interface, establishes and improves the tiered and hierarchical customer
management strategies and refined customer management mechanisms, and enhances the operational capability for value customers.
The Company focuses on the management of strategic opportunities, invests resources accurately, strengthens the planning and
organization capability of major projects and improves systematic marketing capability.
3. Further constructing the global marketing system and strengthening the global delivery and service capability
In the domestic market, the Company continuously promotes the construction of channel system and refined operation channel,
establishes the tiered and hierarchical project management system and improves the project operation capability; in the overs eas
market, the Company persistently extends its global marketing network, strengthens channel extension and improves the coverage of
overseas market and its brand awareness.
The Company constantly strengthens its end-to-end supply chain prediction capability and inventory management capability and
improves its supply capability oriented toward the global market with high efficiency and low cost. The Company deepens the
integration of organization, and establishes a systematic delivery and service capability through organization matching and service
system matching. The Company continues to improve the compliance operation system to support the sustainable development of
business.
4. Continuously promoting systematic management reform and improving organizational capability and operation
efficiency
The Company constantly carries out the systematic management reform, and improves internal management level and operation
efficiency by carrying out LTC, IPD, ISD and ITR and other core business process reform projects to realize the smoothness of
end-to-end process and provide supports for subsequent high-;'.quality development.
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
II. Main Business Analysis
Overview
See "I. Overview" in "Discussion and Analysis on Business Circumstance".
Changes in key financial data over the corresponding period of last year
Unit: RMB
YoY
Current Reporting Corresponding
Change Reason of Changes
Period Period of Last Year
(%)
Operating Revenue 10,806,566,370.89 9,814,041,352.48 10.11%
Operating Cost 6,443,429,151.03 6,230,120,445.06 3.42%
Sales Expenses 1,539,714,255.33 1,252,741,900.83 22.91%
Management Fees 346,919,167.36 269,199,404.53 28.87%
Mainly due to increase in exchange loss in the
Financial Expenses 11,045,548.40 -22,880,395.85 148.28% current period as a result of exchange rate
fluctuation.
Income Tax Expense 163,173,365.97 165,721,533.63 -1.54%
R&D Investment 1,245,261,201.77 865,129,052.09 43.94% Mainly due to increase in the investment in R&D
Net Cash Flow
Generated by -870,467,092.88 -1,096,356,837.00 20.60%
Operational Activities
Net Cash Flow
Generated by -282,555,064.78 -349,648,911.60 19.19%
Investment Activities
Net Cash Flow
Mainly due to the increase in bank loans in the
Generated by 988,389,356.92 233,280,496.68 323.69%
current period
Financing Activities
Net Additions to
Mainly due to the increase in net cash flow generated
Balance of -157,333,633.07 -1,197,623,717.25 86.86%
by financing activities
Equivalents
Significant changes in the profit structure or profit source of the Company in the reporting period
□ Applicable √ Not applicable
No significant changes in the profit structure or profit source of the Company in the reporting period
Operating income structure
Unit: RMB
Current Reporting Period Corresponding Period of Last Year
Proportion to Proportion to YoY Change (%)
Amount Amount
Operating Revenue Operating Revenue
Total Operating 10,806,566,370.89 100% 9,814,041,352.48 100% 10.11%
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Revenue
Classified by Industry
Security Industry 10,806,566,370.89 100.00% 9,814,041,352.48 100.00% 10.11%
Classified by Product
Solutions 5,626,141,239.99 52.06% 5,018,508,530.50 51.13% 12.11%
Product 4,537,889,480.14 41.99% 4,054,905,104.84 41.32% 11.91%
Others 642,535,650.76 5.95% 740,627,717.14 7.55% -13.24%
Classified by Region
Domestic 7,087,773,045.42 65.59% 6,375,294,969.60 64.96% 11.18%
Overseas 3,718,793,325.47 34.41% 3,438,746,382.88 35.04% 8.14%
Industry, product, or region that accounts for over 10% of the Company's operating income or profit
√ Applicable □ Not applicable
Unit: RMB
Increase or Increase or Increase or
Decrease of Decrease of Decrease of
Operating Operating Cost Gross Profit over
Gross Profit
Operating Revenue Operating Cost Revenue over the over the the
Margin
Corresponding Corresponding Corresponding
Period of the Last Period of the Last Period of the Last
Year Year Year
Classified by Industry
Security
10,806,566,370.89 6,443,429,151.03 40.37% 10.11% 3.42% 3.85%
Industry
Classified by Product
Solutions 5,626,141,239.99 3,144,638,108.68 44.11% 12.11% 8.00% 2.13%
Product 4,537,889,480.14 2,713,726,371.28 40.20% 11.91% 4.22% 4.41%
Classified by Region
Domestic 7,087,773,045.42 4,432,123,646.82 37.47% 11.18% 9.38% 1.03%
Overseas 3,718,793,325.47 2,011,305,504.21 45.92% 8.14% -7.66% 9.26%
When the statistical caliber of the Company's main business data is adjusted in the reporting period, the Company's main business
data should be subject to the one after the statistical caliber at the end of the reporting period is adjusted in the most recent year.
□ Applicable √ Not applicable
Reasons for over 30% changes in related data on year-on-year basis
□ Applicable √ Not applicable
III. Non-main Business Analysis
□ Applicable √ Not applicable
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
IV. Analysis of Assets and Liabilities
1. Significant changes in assets composition
Unit: RMB
At the End of the
At the End of the Current
Corresponding Period of Last
Reporting Period
Year Proportion
Note on Significant Changes
Proportio Proportio Change
Amount n to Total Amount n to Total
Assets Assets
Cash and Bank
4,201,568,114.35 15.32% 4,160,153,847.06 15.79% -0.47% No Significant Change
Balances
Accounts
11,134,944,437.85 40.60% 10,191,372,777.38 38.68% 1.92% No Significant Change
Receivable
Inventory 3,358,049,330.64 12.24% 3,035,579,709.14 11.52% 0.72% No Significant Change
Investment
344,460,740.53 1.26% 346,831,376.55 1.32% -0.06% No Significant Change
Property
Long-term
Equity 165,358,482.24 0.60% 185,872,021.58 0.71% -0.11% No Significant Change
Investment
Fixed Assets 1,386,805,962.53 5.06% 1,407,471,330.83 5.34% -0.28% No Significant Change
Mainly due to the increase in the
investment of Phase II of Hangzhou
Construction in
313,934,611.81 1.14% 226,191,587.11 0.86% 0.28% Smart Manufacturing Base Project,
Progress
Smart IoT solutions R&D and
industrial projects
Short-term Mainly due to the increase in demands
3,084,859,034.59 11.25% 1,851,709,561.83 7.03% 4.22%
Loans for short-term capital turnover
Long-term
154,000,000.00 0.56% 179,000,000.00 0.68% -0.12% No Significant Change
Loans
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
At the Changes in Fair Cumulative Impairment Purchase Sales
Beginning of Value Gains and Fair Value Loss of the Amount of the Amount of At the End of the
Item Name
the Reporting Losses in the Changes in Reporting Reporting the Reporting Period
Period Current Period Equity Period Period Reporting
19
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Period
Financial
Assets
1. Trading
Financial
Assets
(excluding
Derivative
Financial
Assets)
2. Derivative
Financial 7,056,942.13 7,056,942.13
Assets
3. Other Debt
Investments
4. Other Equity
Instrument
Investments
5. Other
Non-current
82,970,227.00 1,000,000.00 83,970,227.00
Financial
Assets
Subtotal of
Financial 82,970,227.00 7,056,942.13 1,000,000.00 91,027,169.13
Assets
Investment
Property
Productive
Biological
Assets
Others
Total 82,970,227.00 7,056,942.13 1,000,000.00 91,027,169.13
Financial
38,602,602.30 38,602,602.30 0
Liabilities
Are there any significant changes in the measurement attributes of the company's main assets during the reporting period?
□ Yes √ No
20
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
3. Restrictions on asset rights as of the end of the reporting period
As of June 30, 2019, the Company pledged monetary funds of RMB 660,602,442.92 for bank borrowings and issuance of bank
acceptance bill and letters of guarantee; pledged notes receivable of RMB 1,127,284,255.91 for issuance of bank acceptance bill;
pledged long-term accounts receivable (including those due within one year) amounting of RMB 314,646,279.46 for bank
borrowings.
V. Investment analysis
1. Overview
√ Applicable □ Not applicable
Investment during the Reporting Period Investment over the Corresponding Period
Fluctuation (%)
(RMB) of Last Year
168,115,641.06 433,638,796.38 -61.23%
2. Significant equity investments acquired during the reporting period
□ Applicable √ Not applicable
3. Major non-equity investments underway during the reporting period
√ Applicable □ Not applicable
Unit: RMB
Reasons
Cumulati for
Cumulative ve Unreach
Fixed Anti
Invest Investment Actual Income ed Date of
Assets Project Source cipat Disclosu
Project ment during the Investment by Project by the Planned Disclosu
Invest industr of ed re Index
Name Meth Current the End of Progress End of Progress re (If
ment y funds Inco (If Any)
od Reporting Period Reporting the and Any)
or not me
Period Reportin Anticipat
g Period ed
Income
Phase I
technolo Juchao
gical Video Informati
innovati Self-c surveil Self-ra on
August
on onstru Yes lance 91,881,069.89 221,502,729.66 ised 13.12% N/A Website
17, 2019
project ction industr funds http://cni
and y nfo.com.
Phase II cn/
construct
21
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
ion
project
of
Hangzho
u Smart
Manufac
turing
Base
Juchao
Xi’an
Video Informati
R&D
Self-c surveil Self-ra on
Center August
onstru Yes lance 5,042,764.00 40,702,970.46 ised 3.48% N/A Website
Construc 17, 2019
ction industr funds http://cni
tion
y nfo.com.
Project
cn/
Smart Juchao
IoT Video Informati
solutions Self-c surveil Self-ra on
August
R&D onstru Yes lance 22,894,574.74 133,077,812.18 ised 8.20% N/A Website
17, 2019
and ction industr funds http://cni
industria y nfo.com.
l projects cn/
Total -- -- -- 119,818,408.63 395,283,512.30 -- -- 0.00 0.00 -- -- --
4. Financial assets at fair value
√ Applicable □ Not applicable
Unit: RMB
Amount
Changes in Fair Amount
Cumulative Sold
Initial Value Gains Purchased Cumulative Amount at the
Fair Value During Capital
Asset Class Investment and Losses in During the Investment End of the
Changes in the Source
Cost the Current Reporting Income Period
Equity Reportin
Period Period
g Period
Financial Equity
derivative 45,449,188.16 -26,055,180.12 343,735,000.00 Fund
instruments Capital
Other
Equity
non-current
82,970,227.00 1,000,000.00 83,970,227.00 Fund
financial
Capital
assets
Total 82,970,227.00 45,449,188.16 0.00 1,000,000.00 0.00 -26,055,180.12 427,705,227.00 --
22
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
5. Securities investments
□ Applicable √ Not applicable
No such case as securities investment during the reporting period.
6. Derivatives investments
√ Applicable □ Not applicable
Unit: ten thousand RMB
Ratio of
Closing
Investme
Name of
Initial nt Actual
the Provision
Type of Amount Amount Amount
Operator Opening for Closing
Affiliated Derivativ of over the of Gain
of Associati Starting Expiry Investme Impairme Investme
Transacti e Derivativ Company' or Loss
Derivativ on Date Date nt nt nt
on or Not Investmen e s Closing during the
e Amount Accrued Amount
t Investme Net Asset Reporting
Investme (If Any)
nt at the End Period
nt
of the
Reporting
Period
Non-asso Exchange May 29, Septembe
Bank No 0 72,063.6 34,373.5 2.54% 1,939.4
ciated contract 2018 r 16, 2019
Total 0 -- -- 72,063.6 34,373.5 2.54% 1,939.4
Source of derivative investment fund Equity Fund
Legal Actions (If Applicable) N/A
Disclosure Date of Derivative Investment May 9, 2018
Approval Announcement by Board of
March 19, 2019
Directors (If Any)
Disclosure Date of Derivative Investment May 29, 2018
Approval Announcement by Board of
April 10, 2019
Shareholders (If Any)
Analysis of Derivatives Position Risk and
Control Measure Explanation during the Please see Announcement on Adjusting Foreign Exchange Hedging Transactions
Reporting Period (Including but Not (announcement No.: 2018-040) disclosed on May 9, 2018, and Announcement on
Limited to Market Risk, Liquidity Risk, Carrying Out Foreign Exchange Hedging Transactions (announcement No.: 2019-010)
Credit Risk, Operation Risk, Legal Risk disclosed on March 19, 2019 for details of risk analysis and control measures
and so on)
As for Variations in Market Prices or Fair The Company’s accounting of derivatives’ fair value is mainly based on the unexpired
Values of the Invested Derivatives during future foreign exchange settlement contract between the Company and the bank during
23
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
the Reporting Period, Detailed Method the reporting period and the transactional financial assets or Transactional Financial
Used and Related Presumptions and Liabilities are confirmed by the difference between the closing contract price and
Indicator Settings Should Be Disclosed in future foreign exchange rate.
the Analysis of Fair Value of Derivatives
Is There Any Material Change in
Accounting Polices and Specific Principles
of Accounting Policies for the Company's
N/A
Derivatives during the Reporting Period
Compared with the Previous Reporting
Period
Independent Director’s Opinion of the
Company's Derivative Investment and Risk N/A
Control
7. Use of raised funds
□ Applicable √ Not applicable
No use of funds in the reporting period of the Company
8. Significant non-fundraising investment during the reporting period
□ Applicable √ Not applicable
There are no significant non-fundraising investment projects during the reporting period
VI. Major Assets and Equity Sales
1. Major assets sales
□ Applicable √ Not applicable
No major assets sales in the reporting period of the Company
2. Major equity sales
□ Applicable √ Not applicable
VII. Analysis of Major Subsidiaries and Investees
√ Applicable □ Not applicable
Major subsidiaries and joint-stock companies with a net profit impact of over 10%.
Unit: RMB
Com
Company Registered Operating Operating
pany Main Business Total Assets Net Assets Net Profit
Name Capital Revenue Profit
Type
24
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
The
development,
production,
installation
and sales of
electronic and
Zhejiang communicatio
Subs
Dahua n products; the
idiar
System design, 3,731,768,176.2 1,211,740,026.9 39,617,163.9 25,241,167.9
y 500,000,000.00 597,695,831.42
Engineeri construction 3 5 7 8
Com
ng Co., and
pany
Ltd. installation of
computer
system
integration
and automated
control
engineering
The
development,
sales, and
technical
services
related to
computer
Zhejiang
Subs software, as
Dahua
idiar well as the
Vision 17,092,368,395. 1,027,834,040.3 8,002,043,279.7 21,717,612.7 17,785,796.2
y design, 646,810,000.00
Technolog 54 3 3 2 0
Com development,
y Co.,
pany production
Ltd.
and sales of
security
equipment,
electronic
products and
communicatio
ns products
Production
Subs
Zhejiang and sales of
idiar
Dahua electronic 1,110,000,000.0 4,973,473,917.2 1,051,985,336.7 1,851,529,943.8 56,203,379.9 42,284,567.3
y
Zhilian products and 0 3 2 9 1 0
Com
Co., Ltd. auxiliary
pany
equipment;
25
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
technological
development,
technical
consultation
and services,
achievement
transference of
computer
software,
electronic
products,
communicatio
ns products,
and digital
security
products;
self-owned
house lease;
catering
service;
import and
export of
goods.
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Method of Acquisition and Disposal of Impact on Overall Production Management
Company Name
Subsidiaries during the Reporting Period and Performance
Wuxi Dahua Ruide Electronic Technology No significant impact on overall
Deregistration
Co., Ltd. production, operation and performance
Hunan Dahua System Technology Co., No significant impact on overall
Deregistration
Ltd. production, operation and performance
Dahua Zhongcheng (Beijing) Technology No significant impact on overall
Deregistration
Co., Ltd. production, operation and performance
No significant impact on overall
Dahua Italy S.R.L. Deregistration
production, operation and performance
Zhejiang Zhoushan Digital Development No significant impact on overall
Established with investment
Operation Co., Ltd. production, operation and performance
China Standard Intelligent Security No significant impact on overall
Equity transfer
Technology Co., Ltd. production, operation and performance
Major holding companies and joint stock companies
26
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
VIII. The structured entity controlled by the Company
□ Applicable √ Not applicable
IX. Estimation of the Company’s Business Performance from January 1st 2019 to September
30th 2019
Estimation of Company’s Business Performance from January 1st 2019 to September 30th 2019: net profits attributable to
shareholders of the listed company are positive and they are not returning to profitability.
Variation in Net Profits Attributable to Shareholders of the
10.00% to 25.00%
Company from January 1st 2019 to September 30th 2019
Variation Scope in Net Profits Attributable to Shareholders of the
Company (Ten Thousand RMB) from January 1st 2019 to 172,004.95 to 195,460.17
th
September 30 2019
Net Profits Attributable to Shareholders of the Company (Ten
156,368.14
Thousand RMB) from January 1st 2018 to September 30th 2018
With the Company's sales and operation revenue growing, it is
forecasted that the net profits attributable to the owner of the
Reasons for Changes in Performance
parent company increase by 10%-25% compared with the
corresponding period of last year.
X. Risks of the Company and Risk Response Solutions
In the reporting period, there are no major changes in the risks faced by the Company, and the Company has always been
striving to identify all the risks, and actively taking the countermeasures to avoid and lower the risks:
1. Risk of technology upgrade: The video surveillance industry is a typical technology-intensive industry, which is changing
extremely fast. If the Company is unable to keep up with development trends in the industry's technology, to pay full attention to
customers' diversified individual needs, and to be followed by sufficient R&D investments, it will still face the risk of los ing market
competitiveness due to discontinuous innovation. The Company continuously enhances researches on core technologies in AI, video
cloud, chip design and other fields by enhancing R&D investment, reserves product, technology, management and talent resources to
gear to the broader market in the future, thus realizing sustained and steady development of the Company's businesses.
2. Risk of business model transformation: With the development of network communications, cloud computing, and big data, as
well as the popularity of smart phones, the business model in the IoT era may have an impact on the traditional industry development
model. If an enterprise cannot timely grasp opportunities brought about by the business model transformation, it may face the risk
that the original market structure becomes broken. The Company pays constant attention to and studies the significant changes in the
global economy, industry and technological fields, analyzes the development logics of the industry, continuously integrates the
evolution and video technologies in the global security industry and IoT industry with the information communication technologies
and digital technologies, pre-judges diversification and uncertainty of customers' demands, consolidates the original advantage
markets, actively explores and conducts experiments on new businesses and new business models, and makes layouts in businesses
and technologies.
3. Risk of product information security: The Company attaches great importance to and continuously strengthens resource
investment to ensure safe and reliable operations of the security system so as to respond to the product information security risks on
the Internet. However, there may still exist hackers, computer viruses, physical security vulnerabilities, natural disasters, accidents,
27
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
power interruptions, telecommunications failures, and other terrorism or warfare events, which exert influences such as security
vulnerabilities, system failures, or service interruptions. The Company has set up a network security committee and a professional
network security team as well as developed product security programs at the company level, ensuring safety across the whole process
including demand, design, coding and testing. At the same time, actively carry out technical exchanges and cooperation with external
mainstream security manufacturers, security evaluation institutions and corresponding industry security associations to ensure the
provision of security products and solutions for customers.
4. Risk of intellectual property rights: The acceleration of the Company's globalization and self-owned brand strategy will likely
bring intellectual property risks such as IP rights protection and patent infringement, and may bring risks of business relationship or
public opinion environment fluctuations, increase of legal proceedings, rise of expenses and costs etc. The Company attaches great
importance to technical innovation and has established the mechanisms for protection and management of innovation achievements,
private brands, trade secrets and other intangible assets to constantly concentrate advantageous intellectual property right assets;
established the system for compliance and risk control of the intellectual property rights to constantly enhance the Company's ability
in understanding and grasping the intellectual property right laws and regulations and administrative judicial environments in the
region where the Company's businesses are located.
5. Risk of exchange rate: The Company's export transactions are mostly settled in United States Dollars ("USD"), while
overseas sales have increased continuously. Therefore, fluctuations in the foreign exchange rate have the potential to affect the profits
of the Company. As export transactions are mostly settled in United States Dollars ("USD"), the company hedges against and avoids
exchange rate risks through centralized management of foreign exchange funds, procurement payment hedging and other approaches.
6. Risk of decline in local fiscal spending power: At present, local fiscal earnings are declining, while debt is relatively high. If
the local fiscal spending power falls, it may lead to a slowdown in the growth of industry demand, extensions to project time, long
periods needed for companies to withdraw capital, and delays in customer' payments. The Company continuously improves internal
control system, optimizes project review methods, and reduces the risks of delay in payment by prudently selecting local engi neering
projects, systematically evaluating the project risks and reasonably conducting risk management and control.
7. Risk of international operation: The Company's products and solutions cover over one hundred overseas countries and regions.
International business operation may face risks of trade protection in the countries and regions where they operate, which may bring
negative impact on the Company's local business development. The Company actively prevents and deals with international
operation risks, establishes overseas compliance and risk control system and continuously advances understanding and adaptability of
laws and regulations as well as political and economic environment in the regions where the Company’s business is involved.
28
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Section V Significant Events
I. Annual General Meetings and Extraordinary General Meetings Convened during the
Reporting Period
1. The shareholders' meetings for this reporting period
Proportion
of
Meeting Nature Convened Date Date of Disclosure Disclosure Index
Participating
Investors
2018 Annual General Annual General Juchao Information Website
48.60% April 09, 2019 April 10, 2019
Meeting Meeting http://www.cninfo.com.cn/
First Extraordinary
Extraordinary Juchao Information Website
General Meeting in 48.29% June 05, 2019 June 06, 2019
General Meeting http://www.cninfo.com.cn/
2019
2. Convening of the interim shareholders' general meetings upon request of the preferred stockholders
whose voting rights are restored
□ Applicable √ Not applicable
II. Conditions of Profit Distribution or Capitalization of Capital Reserves during the
Reporting Period
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends, send bonus shares, and not to convert capital reserves to share capital.
III. Complete and Incomplete Commitments of the Company and Its Actual Controller,
Shareholders, Related parties, Acquirers, and Other Related Parties by the End of the
Reporting Period
√ Applicable □ Not applicable
Com
Giver of mit
Commitments Commitm ment Details Time Term Performance
ents s
Type
Commitments Fu Liquan, Com The number of shares transferred each year during his/her July 15, Long- As of the
Made during Initial Zhu mit term of service shall not exceed 25 percent of the total 2007 term disclosure
29
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Public Offerings or Jiangming ment number of shares he/she holds in the Company; he/she date of this
Refinancing , Chen on shall not transfer his/her shares in the Company within announcemen
Ailing, restr half a year after he/she leaves the Company; within the t, the
Wu Jun icted next twelve months, the number of shares sold through aforemention
shar the stock exchange listing transactions shall not exceed ed
es 50% of the total shares he/she holds. commitments
are still in
strict
execution.
As of the
Com (1) He/she will not directly engage in operational
disclosure
mit activities that constitute horizontal competition with the
date of this
ment stock company's business; (2) for companies he/she held
Other announcemen
on or indirectly held, he/she will fulfill the obligations under
Commitments to Fu Liquan, t, the
hori this commitment through agencies and personnel June 30, Long-
Minority Chen aforemention
zont (including but not limited to directors and managers); (3) 2007 term
Shareholders of the Ailing ed
al if the stock company further expands its range of products
Company commitments
com and business scope, he/she and the company held by
are still in
petit him/her will not compete with the expanded range of
strict
ion products or businesses of the stock company.
execution.
Whether the
Commitment Is Yes
Fulfilled on Time
IV. Engagement and Dismissal of the CPA Firm
Whether the interim report has been audited
□ Yes √ No
The interim report of the Company has not been audited.
V. Explanation Given by the Board of Directors and Supervisory Committee Regarding the
“Non-standard Auditor’s Report” Issued by the CPA Firm for the Reporting Period
□ Applicable √ Not applicable
VI. Explanation Given by the Board of Directors Regarding the “Non-standard Auditor’s
Report” Issued by the CPA Firm for the Prior Year
□ Applicable √ Not applicable
VII. Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such case as bankruptcy and reorganization related event during the reporting period.
30
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
VIII. Material Litigation and Arbitration
Major lawsuits and arbitrations
□ Applicable √ Not applicable
During this reporting period, the Company has no major lawsuits or arbitrations. Other lawsuits that do not meet the criteria of
disclosure for major lawsuits are as follows:
Zhejiang Dahua Technology Co., Ltd. signed a sales contract with Hangzhou Sailidi Import & Export Co., Ltd. (hereinafter
referred to as "Sailidi"), where Sailidi purchased products from Dahua Technology. As at June 30, 2019, the remaining amount was
not paid. In August 2018, Dahua Technology filed a lawsuit to the People's Court of Binjiang District in Hangzhou, requesting Sailidi
Company to pay the remaining amount and the liquidated damages for overdue payment and interests. In September 2018, Dahua
Technology applied to the People's Court of Binjiang District for property preservation, requesting to freeze the bank deposit of
RMB50 millions of Sailidi Company's legal representative Zhu Yuequan, or to seal up or seize property of corresponding value and
provide guarantee. The People's Court of Binjiang District granted the application for property preservation. The Binjiang District
People's Court of Hangzhou conducted a public trial on January 11, 2019, and issued (2018) Zhejiang 0108 Min Chu No.4451
judgment on January 17, 2019, requiring Sailidi to pay Dahua Technology the overdue amount RMB 27,878,975.60 and interest loss
RMB1,021,088.16 (temporarily calculated until December 31, 2018) upon the judgment took effect. Zhu Yuequan assumed the joint
and several liabilities. Until the financial reporting date, this case was still in the execution stage. According to the inventory of
seized property, the Company's estimated recoverable amount is RMB10 million. The net realizable value of other seized proper ty is
of significant uncertainty, thus the Company makes provision for bad debts correspondingly based on the difference between the
present value of estimated future cash flow and its book value.
In July 2019, Salidi and Zhu Yuequan applied for a retrial to the Hangzhou Intermediate People’s Court ( Intermediate People’s
Court). The Company received the Notice of Acceptance of Civil Application for Retrial from the Intermediate Peoples’ Court on
August 2, 2019, and the Intermediate People’s Court decided to file a case for review. The Company has submitted the answer brief
for retrial.
IX. Media Queries
□ Applicable √ Not applicable
No such case as common challenge from media during the reporting period.
X. Punishments and Rectifications
□ Applicable √ Not applicable
No such case as penalty and rectification during the reporting period.
XI. Integrity of the Company and Its Controlling Shareholder and Actual Controllers
□ Applicable √ Not applicable
XII. Implementation of the Company’s Equity Incentive Plan, Employee Stock Incentive Plan
or Other Incentive Plans
√ Applicable □ Not applicable
1. On May 16, 2017, the Company's 2016 Annual General Meeting of Shareholders reviewed and approved the Zhejiang Dahua
31
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Technology Co., Ltd. Phase III Employee Stock Ownership Plan (Draft) and its summary, and decided to implement the Phase III
Employee Stock Ownership Plan. On June 1, 2017, the Company's Phase III employee stock ownership plan completed the stock
purchase through the "DAHUA No. 3 Directional Asset Management Plan of Caitong Securities Asset Management", with an
average purchase price of RMB16.83 per share and total purchase amount of 47,000,000 shares.
On November 12, 2018, the Company's 18th meeting of the 6th Board of Directors reviewed and approved the Suggestive
Proposal on Extension of the Impending Expiration of the Company's Phase III Employee Stock Ownership Plan Duration. The
Board of Directors agreed to extend the Company's Phase III employee stock ownership plan for one year according to the voting
results of the shareholders' meeting. That is, the duration was extended for one additional year on the basis of the original termination
date, until May 15, 2020.
2. On December 27, 2018, the Company’s 5th extraordinary shareholders meeting in 2018 reviewed and approved the Proposal
on Repurchase and Cancellation of Some Granted but Unlocked Restricted Stocks and agreed to buy back and cancel the 44,200
restricted shares which are granted but not unlocked and held by the incentive targets who have left the Company and one deceased
personnel. The repurchase price was RMB 8.17 per share, and the registered capital was reduced accordingly. The above repurchase
and cancellation was completed on March 4, 2019 and the change of industrial and commercial registration was completed on April
15, 2019.
XIII. 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-party transactions arising from the acquisition or sale of assets or equity.
3. Significant related-party transactions arising from joint investments on external parties
□ Applicable √ Not applicable
No such case as significant related-party transactions arising form joint investments on external parties.
4. Related-party creditor's rights and debts
□ Applicable √ Not applicable
No such case as significant related credits and debts during the reporting period.
5. Other major related transactions
□ Applicable √ Not applicable
No other major related transactions during the reporting period.
32
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
XIV. Significant Contracts and Their Execution
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 applicable
Explanations on leases
During the reporting period, some of the Company's own real estate properties were used for rental, and the leased real estate
property was used for office, warehouse and production workshops. There were no other major real estate leasing.
Cases that brought the profit and loss accounted for more than 10% of the Company's total profit during the reporting period
□ Applicable √ Not applicable
No such leases that brought the profit and loss accounted for more than 10% of the Company's total profit during the reporting
period.
2. Significant guarantees
√ Applicable □ Not applicable
(1) Guarantees
Unit: ten thousand RMB
External Guarantees from the Company (Excluding Guarantees to the Subsidiaries)
Actu
Announcem
al Guarantee
ent Date of
Actual Occurrence Date Guar for
Disclosure Guarantee Type of Term of Due or
Guaranteed Party (Date of Agreement ante Related
of the Amount Guarantee Guarantee Not
Signing) e Parties or
Guarantee
Amo Not
Cap
unt
Total Amount of External Total Amount of
Guarantees Approved during the External guarantees
33
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Reporting Period (A1) Actually Occurred
during the
Reporting Period
(A2)
Total Balance of
Total Amount of External External Guarantees
Guarantees Approved by the Actually Paid at the
End of the Reporting Period End of the
(A3) Reporting Period
(A4)
Company's Guarantees to Subsidiaries
Announcem Actual
Guarant
ent Date of Occurrence
ee for
Disclosure Guarantee Date Actual Guarantee Type of Due or
Guaranteed Party Term of Guarantee Related
of the Amount (Date of Amount Guarantee Not
Parties
Guarantee Agreement
or Not
Cap Signing)
Two years after
Joint
January 15, the maturity of the
11,000.00 liability Yes Yes
2018 debts in the master
guarantee
contract
Joint
May 4, 2018 -
May 4, 2018 30,000.00 liability Yes Yes
April 16, 2019
guarantee
Three years after
Joint
August 2, the maturity of the
2,000.00 liability Yes Yes
2018 debts in the master
guarantee
contract
Zhejiang Dahua
May 18, Joint June 6,
Vision Technology 750,000.00
2019 June 6, 2016 29,000.00 liability 2016-January No Yes
Co., Ltd.
guarantee 1, 2020
Two years after
Joint
August 10, the maturity of the
60,000.00 liability No Yes
2017 debts in the master
guarantee
contract
Two years after
Joint
October 13， the maturity of the
22,000.00 liability No Yes
2017 debts in the master
guarantee
contract
March 27, Joint March 20, 2018 -
50,000.00 No Yes
2018 liability March 19,2021
34
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
guarantee
Joint
April 13, April 13, 2018 -
24,000.00 liability No Yes
2018 April 12, 2021
guarantee
Three years after
Joint
July 25, the maturity of the
10,000.00 liability No Yes
2018 debts in the master
guarantee
contract
Three years after
Joint
August 1, the maturity of the
20,000.00 liability No Yes
2018 debts in the master
guarantee
contract
Three years after
Joint
August 21, the maturity of the
10,000.00 liability No Yes
2018 debts in the master
guarantee
contract
Three years after
Joint
September the maturity of the
10,000.00 liability No Yes
3, 2018 debts in the master
guarantee
contract
Two years after
27,498.80 Joint
September the maturity of the
(40 million US liability No Yes
21, 2018 debts in the master
dollars) guarantee
contract
Joint November 26,
November
22,000.00 liability 2018 - November No Yes
26,2018
guarantee 26, 2020
Three years after
Joint
January 3, the maturity of the
20,000.00 liability No Yes
2019 debts in the master
guarantee
contract
Three years after
Joint
January 17, the maturity of the
30,000.00 liability No Yes
2019 debts in the master
guarantee
contract
Two years after
10,312.05 Joint
March 20, the maturity of the
(15 million US liability No Yes
2019 debts in the master
dollars) guarantee
contract
March 21, Joint Three years after
20,000.00 No Yes
2019 liability the maturity of the
35
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
guarantee debts in the master
contract
Three years after
Joint
April 18, the maturity of the
20,000.00 liability No Yes
2019 debts in the master
guarantee
contract
Three years after
Joint
April 28, the maturity of the
10,000.00 liability No Yes
2019 debts in the master
guarantee
contract
Two years after
Joint
May 10, the maturity of the
65,000.00 liability No Yes
2019 debts in the master
guarantee
contract
Three years after
Joint
May 13, the maturity of the
23,000.00 liability No Yes
2019 debts in the master
guarantee
contract
Joint
June 26, June 26, 2019 -
18,000.00 liability No Yes
2019 June 25, 2022
guarantee
Joint
June 6, 2016 -
June 6, 2016 20,000.00 liability No Yes
June 30, 2020
guarantee
Joint September 1, 2018
September
50,000.00 liability - September 1, No Yes
1, 2018
guarantee 2020
Joint
October October 12, 2018 -
30,000.00 liability No Yes
12,2018 October 12, 2020
guarantee
Zhejiang Dahua May 18, One year after the
600,000.00 Joint
Zhilian Co., Ltd. 2019 April 9, maturity of the
10,000.00 liability No Yes
2019 debts in the master
guarantee
contract
One year after the
Joint
April 25, maturity of the
10,000.00 liability No Yes
2019 debts in the master
guarantee
contract
Joint Three years after
May 13,
6,000.00 liability the maturity of the No Yes
2019
guarantee debts in the master
36
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
contract
Joint
June 6, 2016 -
June 6, 2016 10,000.00 liability No Yes
March 30, 2020
guarantee
Two years after
Joint
October the maturity of the
6,000.00 liability No Yes
10,2017 debts in the master
guarantee
Zhejiang Dahua contract
May 18,
System Engineering 50,000.00 Two years after
2019 Joint
Co., Ltd. May 10, the maturity of the
10,000.00 liability No Yes
2019 debts in the master
guarantee
contract
Three years after
Joint
May 13, the maturity of the
4,000.00 liability No Yes
2019 debts in the master
guarantee
contract
Two years after
Joint
April 9, the maturity of the
20,000.00 liability Yes Yes
2018 debts in the master
guarantee
Dahua Technology May 18, contract
200,000.00
(HK) Limited 2019 December 15,
34,373.50 Joint
December 2017 -
(50 million US liability No Yes
15, 2017 December 15,
dollars) guarantee
2020
206.24 Joint
Dahua Technology May 18, March 4, March 9, 2019 -
1,000.00 (300 thousand US liability No Yes
USA Inc. 2019 2019 March 9, 2020
dollars) guarantee
2,150.34 Joint
March 26, March 26, 2019 -
DAHUA (MXN 59.9731 liability No Yes
2019 March 26, 2020
TECHNOLOGY May 18, million) guarantee
10,000.00
MEXICO S.A. DE 2019 6,451.01 Joint
C.V April 9, April 9, 2019 -
(MXN 179.9794 liability No Yes
2019 April 9, 2020
million) guarantee
Guangxi Dahua
May 18,
Information 10,000.00 No such case during the reporting period
2019
Technology Co., Ltd.
Zhejiang Dahua
May 18,
Jinzhi Technology 100,000.00 No such case during the reporting period
2019
Co., Ltd.
Xi'an Dahua Zhilian May 18, 100,000.00 No such case during the reporting period
37
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Technology Co., Ltd. 2019
Zhejiang Huafei
Intelligent May 18,
5,000.00 No such case during the reporting period
Technology CO., 2019
LTD.
Zhejiang Huachuang
May 18,
Vision Technology 5,000.00 No such case during the reporting period
2019
Co., Ltd.
Zhejiang HuaRay May 18,
5,000.00 No such case during the reporting period
Technology Co., Ltd. 2019
Zhejiang Dahua
Security Network May 18,
5,000.00 No such case during the reporting period
Operation Service 2019
Co., Ltd.
Hangzhou Xiaohua
May 18,
Technology CO., 5,000.00 No such case during the reporting period
2019
LTD.
Zhejiang Dahua
May 18,
Security Service Co., 5,000.00 No such case during the reporting period
2019
Ltd.
Hangzhou Tecomore May 18,
5,000.00 No such case during the reporting period
Technology Co., Ltd. 2019
Hangzhou Huacheng
May 18,
Network Technology 5,000.00 No such case during the reporting period
2019
Co., Ltd.
Wuxi Dahua Ruipin May 18,
5,000.00 No such case during the reporting period
Technology Co., Ltd. 2019
Zhejiang Huaxiao May 18,
5,000.00 No such case during the reporting period
Technology Co., Ltd. 2019
Zhejiang Dahua
Investment May 18,
5,000.00 No such case during the reporting period
Management Co., 2019
Ltd.
Zhejiang Dahua
May 18,
Robot Technology 5,000.00 No such case during the reporting period
2019
Co., Ltd.
DAHUA EUROPE May 18,
10,000.00 No such case during the reporting period
B.V. 2019
Dahua Technology May 18,
500.00 No such case during the reporting period
Singapore Pte.Ltd. 2019
38
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Dahua Technology May 18,
2,000.00 No such case during the reporting period
UK Limited 2019
Dahua Technology May 18,
1,600.00 No such case during the reporting period
Poland sp.zo.o. 2019
Dahua Technology May 18,
1,600.00 No such case during the reporting period
Hungary Kft 2019
DAHUA
May 18,
TECHNOLOGY IND 3,500.00 No such case during the reporting period
2019
PVT LTD
DAHUA
TECHNOLOGY
BRASIL
May 18,
COMERCIO SERV 1,000.00 No such case during the reporting period
2019
EM SEGURANCA
ELETRONICA
LTDA
DAHUA ITALY May 18,
350.00 No such case during the reporting period
S.R.L. 2019
DAHUA
May 18,
TECHNOLOGY 350.00 No such case during the reporting period
2019
MIDDLE EAST FZE
DAHUA
May 18,
TECHNOLOGY 500.00 No such case during the reporting period
2019
PER S.A.C
DAHUA
TECHNOLOGY
May 18,
RUS LIMITED 1,000.00 No such case during the reporting period
2019
LIABILITY
COMPANY
DAHUA
TECHNOLOGY May 18,
No such case during the reporting period
AUSTRALIA PTY 2019 500.00
LTD
Dahua Technology
May 18,
South Africa 500.00 No such case during the reporting period
2019
Proprietary Limited
DAHUA
May 18,
TECHNOLOGY 100.00 No such case during the reporting period
2019
CANADA INC.
DAHUA
May 18, 600.00 No such case during the reporting period
GUVENLIK
39
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
TEKNOLOJILERI 2019
SANAYI VE
TICARET ANONIM
SIRKETI
Dahua Technology May 18,
300.00 No such case during the reporting period
SRB d.o.o. 2019
Dahua Technology May 18,
100.00 No such case during the reporting period
Bulgaria EOOD 2019
DAHUA IBERIA, May 18,
200.00 No such case during the reporting period
S.L. 2019
DAHUA SECURITY
May 18,
MALAYSIA SDN. 200.00 No such case during the reporting period
2019
BHD.
Dahua Technology May 18,
200.00 No such case during the reporting period
Kazakhstan LLP 2019
PT DAHUA VISION
May 18,
TECHNOLOGY 300.00 No such case during the reporting period
2019
INDONESIA
Dahua Technology
May 18,
Korea Company 100.00 No such case during the reporting period
2019
Limited
Dahua Technology May 18,
200.00 No such case during the reporting period
S.R.L. 2019
Dahua technology May 18,
200.00 No such case during the reporting period
France SAS 2019
May 18,
Dahua vision LLc 200.00 No such case during the reporting period
2019
Dahua Technology May 18,
200.00 No such case during the reporting period
New Zealand Limited 2019
Dahua Technology May 18,
300.00 No such case during the reporting period
GmbH i.Gr. 2019
DAHUA
May 18,
TECHNOLOGY 100.00 No such case during the reporting period
2019
COLOMBIA SAS
DAHUA
May 18,
TECHNOLOGY 100.00 No such case during the reporting period
2019
PANAMA,S.A.
Dahua Technology May 18,
100.00 No such case during the reporting period
Chile SpA 2019
40
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Dahua technology
May 18,
tunisia limited 200.00 No such case during the reporting period
2019
liability company
DAHUA
May 18,
TECHNOLOGY 100.00 No such case during the reporting period
2019
KENYA LIMITED
DAHUA
May 18,
TECHNOLOGY 200.00 No such case during the reporting period
2019
CHINA(PVT) LTD
DAHUA
TECHNOLOGY
May 18,
PAKISTAN 200.00 No such case during the reporting period
2019
(PRIVATE)
LIMITED
DAHUA
May 18,
TECHNOLOGY 100.00 No such case during the reporting period
2019
MOROCCO SARL
DAHUA May 18,
200.00 No such case during the reporting period
ARGENTINA S.A. 2019
Dahua Technology May 18,
200.00 No such case during the reporting period
Czech s.r.o. 2019
Dahua Technology May 18,
200.00 No such case during the reporting period
Denmark ApS 2019
Dahua Technology May 18,
300.00 No such case during the reporting period
Netherlands B.V. 2019
DAHUA
TECHNOLOGY May 18,
100.00 No such case during the reporting period
(THAILAND) CO 2019
LTD
DAHUA
May 18,
TECHNOLOGY 600.00 No such case during the reporting period
2019
ITALY S.R.L.
LOREX
May 18,
TECHNOLOGY 1,000.00 No such case during the reporting period
2019
INC.
LOREX May 18,
1,000.00 No such case during the reporting period
CORPORATION 2019
Total Amount of Guarantees to Total Amount of Guarantees to
Subsidiaries Approved during the 1,912,300.00 Subsidiaries Actually Occurred 265,119.64
Reporting Period (B1) during the Reporting Period (B2)
41
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Total Balance of Guarantees
Total Amount of Guarantees to
Actually Paid to Subsidiaries at
Subsidiaries Approved by the End 1,912,300.00 699,991.94
the End of the Reporting Period
of the Reporting Period (B3)
(B4)
Subsidiaries' Guarantees to Subsidiaries
Announcem Actual
Guarantee
ent Date of Occurrence
Actual for
Disclosure Guarantee Date Type of Term of Due or
Guaranteed Party Guarantee Related
of the Amount (Date of Guarantee Guarantee Not
Amount Parties or
Guarantee Agreement
Not
Cap Signing)
Total Amount of Guarantees to
Total Amount of Guarantees to
Subsidiaries Actually Occurred
Subsidiaries Approved during
during the Reporting Period
the Reporting Period (C1)
(C2)
Total Amount of Guarantees to Total Balance of Guarantees
Subsidiaries Approved by the Actually Paid toSubsidiaries at
End of the Reporting Period the End of the Reporting
(C3) Period (C4)
The total amount of the Company's guarantees (the total of the above three items)
Total Amount of Guarantees Total Amount of Guarantees
Approved during the Reporting 1,912,300.00 Actually Occurred during the 265,119.64
Period (A1+B1+C1) Reporting Period (A2+B2+C2)
Total Amount of Guarantees Total Balance of Guarantees
Approved by the End of the 1,912,300.00 Actually Paid at the End of the 699,991.94
Reporting Period (A3+B3+C3) Reporting Period (A4+B4+C4)
Total Amount of Actual Guarantees (A4+B4+C4) as a
51.63%
Percentage of the Company's Net Assets
Including:
Balance of Guarantees to the Shareholders, Actual Controllers
and Their Related Parties (D)
Balance of Debt Guarantees Directly or Indirectly Offered to
Guaranteed Objects with Asset-liability Ratio Exceeding 70% 669,991.94
(E)
Amount of the Guarantees with the Total Volume Exceeding
22,109.80
50% of the Net Assets (F)
Total Amount of the Above Three Guarantees (D+E+F) 669,991.94
Notes on Possible Joint and Several Repayment Liability for
42
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Unexpired Guarantees (If Any)
Notes on Providing External Guarantees in Violation of
Specified Procedures (If Any)
(2) Illegal external guarantees
□ Applicable √ Not applicable
No illegal external guarantees during the reporting period.
3. Other significant contracts
□ Applicable √ Not applicable
No such case as other significant contract during the reporting period.
XV. Social Responsibility
1. Significant environmental problems
The listed company and its subsidiaries do not belong to the key pollutant discharging units announced by the environmental
protection department.
2. Social responsibility fulfillment regarding targeted poverty alleviation
In the reporting half-year of the Company, there has been no targeted poverty alleviation activity, or follow-up targeted poverty
alleviation plan.
XVI. Explanation of Other Significant Events
√ Applicable □ Not applicable
1. On January 24, 2017, the Company's holding sub-subsidiary, Nanbei United Information Technology Co., Ltd. and its
wholly-owned subsidiary, Zhejiang Dahua System Engineering Co., Ltd. signed a Cooperation Agreement on PPP Investment in Safe
City Project of Shache County with the People's Government of Shache County in Kashgar, Xinjiang, which is just a framework
agreement on the PPP project. The agreement stipulates that the service content is the pre-feasibility study of the project and the
design of the project, etc. For the implementation of the specific project, it still needs to fulfill related decision-making and approval
procedures, such as government procurement.s
On July 21, 2017, the Company received the Notification of Award issued by the project purchasing unit, which confirmed that
the wholly-owned subsidiary Zhejiang Dahua System Engineering Co., Ltd. (the consortium leader), with the holding sub-subsidiary
Nanbei United Information Technology Co., Ltd. (member of the consortium) is the winning bidder for the Safe City Construction
Project (PPP) in Shache County. The winning bid amount of the project is RMB 4.31479 billion (the final amount is based on the
signed contract), which is the total amount for construction and operation within 10-year project cooperation period.
On August 4, 2017, the Company's 34th session of the 5th Board of Directors' meeting reviewed and approved the Proposal on
Investing to Establish a PPP Project Company in Shache County, Xinjiang, and the Company submitted a bid based on the
requirements for the Shache County City Construction Project (PPP). The winning consortium jointly funded the establishment of the
project company, with a registered capital of RMB 335,567,200. Among them, Zhejiang Dahua System Engineering Co., Ltd.
43
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
contributed RMB 234,897,040, accounted for 70% of the total contribution; Nanbei United Information Technology Co., Ltd.
contributed RMB 100,670,160, accounted for 30%. In August 2017, the project company was established and the name of the
company approved by the industrial and commercial bureau was Xinjiang Dahua Xinzhi Information Technology Co., Ltd.
On April 18, 2018, the project winning bidder received the request from the Public Security Bureau of Shache County to stop
the implementation of the "Safe City Construction (PPP) Project in Shache County". Near a half of the construction progress in the
project construction period has been completed, but no expenses for subsequent equipment replacement, operation and maintenance
have been incurred. The actual investment in the construction period will be further accounted and confirmed with the government.
The various activities and construction of this project engaged in by the winning bidder are in compliance with the requirements
in PPP-related laws and regulations, but the risk exists that the project will not be furthered and the identifiable income of the
Company in the future may be reduced. The Company will actively cooperate with relevant government departments in their work,
and timely perform the obligation of information disclosure in accordance with the subsequent progress of the project and the
provisions in relevant laws and regulations and the Articles of Association.
2. The Company intends to repurchase the company's share with self-raised funds by centralized bidding, with the total amount
of repurchase funds not less than RMB 200 million (inclusive) and not more than RMB 400 million (inclusive). The repurchase price
shall not exceed RMB 25.37 per share (inclusive). Based on the calculation of upper limit of repurchase price and amount, the
estimated total number of repurchase shares are 15,766,653 shares, accounting for about 0.53% of the current capital shares of the
Company. The detailed number of repurchase shares and its ratio of the capital shares of the Company shall be subject to the actual
repurchase number of shares and the ratio upon expiration of the repurchase period. The implementation term of this repurchase
shares shall be within 12 months since the date when the Board of Directors agreed the repurchase program. As of June 30, 2019, the
Company has repurchased 6,149,480 company shares through the specialized security account for share repurchase by centralized
bidding, which accounts for 0.2051% of the total current capital shares of the Company. The highest transaction price is RMB14.03
per share and the lowest RMB12.90 per share with total amount of RMB 80,733,758.44 (excluding transaction costs). The
Announcement on the Program of Company’s Shares Repurchase (Announcement No.: 2019-025) and the Announcement on
Progress on Company’s Shares Repurchase (Announcement No.: 2019-041) have been published on April 26,2019 and July 3,2019
respectively on the Securities Times and the website www. cninfocom.cn.
3. On June 5, 2019, the Company’s first extraordinary shareholders meeting in 2019 approved the "Proposal on the Company's
Public Issuance of Convertible Corporate Bonds" and the "Feasibility Analysis on the Use of Funds Raised by the Company's Public
Issuance of Convertible Corporate Bonds" and others. (See the No. 2019-030 and No. 2019-038 announcements on the Securities
Times and www.cninfocom.cn for details)
XVII. Significant Events of the Company’s Subsidiaries
□ Applicable √ Not applicable
44
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Section VI Changes in Shares and Information about Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before the Change Changes in the Period (+, -) After the Change
New Shares
Share Transfer
Bonus
Shares Ratio s red from Others Sub-total Shares Ratio
Share
Issue Capital
d Reserves
I. Shares Subject to
Conditional 1,169,462,780 39.01% 14,474,431 14,474,431 1,183,937,211 39.50%
Restrictions
3. Other Domestic
1,169,410,780 39.01% 14,474,431 14,474,431 1,183,885,211 39.50%
Shares
Shares Held by
Domestic Matural 1,169,410,780 39.01% 14,474,431 14,474,431 1,183,885,211 39.50%
Persons
4. Foreign Shares 52,000 0.00% 52,000 0.00%
Shares Held by Foreign
52,000 0.00% 52,000 0.00%
Natural Persons
II. Shares without
1,828,159,150 60.99% -14,518,631 -14,518,631 1,813,640,519 60.50%
Restrictions
1. RMB Ordinary
1,828,159,150 60.99% -14,518,631 -14,518,631 1,813,640,519 60.50%
Shares
III. Total 2,997,621,930 100.00% -44,200 -44,200 2,997,577,730 100.00%
Reasons for changes in shares
√ Applicable □ Not applicable
1. At the beginning of each year, the number of shares locked by executives of the Company shall be revivified according to 75%
of the total number of shares held by executives.
2. On March 4, 2019, the company has completed the repurchase and cancellation of total 44,200 restricted shares that have
been granted but not unlocked from the resigned incentive targets and the deceased persons listed in the restricted share incentive
plan in 2018, reducing the total capital shares of the Company from 2,997,621,930 shares to 2,997,577,730 shares.
Approval for changes in shares
45
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
√ Applicable □ Not applicable
On December 27, 2018, the Company's 5th extraordinary shareholders meeting in 2018 reviewed and approved the Proposal on
Repurchase and Cancellation of Some Granted but Unlocked Restricted Stocks, and decided to repurchase and cancel a total of
44,200 restricted shares that have been granted but not unlocked from the resigned incentive targets and the deceased persons.
Transfer for changes in shares
√ Applicable □ Not applicable
After the repurchase and cancellation, the total capital shares of the Company reduced from 2,997,621,930 shares to
2,997,577,730 shares. The above repurchase and cancellation has been completed on March 4, 2019 through verification and
confirmation by the Shenzhen Office of China Securities Depository and Clearing Corporation Limited.
The progress on share buy-back
√ Applicable □ Not applicable
1. The 21st meeting of the 6th Board of Directors held on April 25, 2019 reviewed and approved the Proposal on the Program of
Repurchasing Company’s Shares, which intends to repurchase the Company’s partial issued public shares with self-raised funds by
centralized bidding; the total amount of repurchase funds are not less than RMB 200 million (inclusive) and not more than RMB 400
million (inclusive), which is to be used for subsequent implementation of stock ownership incentive plan or employee stock option
plan; the repurchase unit price shall not exceed RMB25.37 per share (inclusive) and detailed repurchase number of shares shall
subject to that actual repurchase shares upon the expiration of repurchase period; implementation term of the repurchase shares shall
be within 12 months since the date when the Board of Directors agreed the repurchase program. For details, please refer to the Report
on Repurchasing Shares (No.: 2019-027) disclosed by the Company on May 11, 2019.
2. As of June 30, 2019, the Company has repurchased 6,149,480 company shares through the specialized security account for
share repurchase by centralized bidding, which accounts for 0.2051% of the total current capital shares of the Company. The highest
transaction price is RMB14.03 per share and the lowest RMB12.90 per share with total amount of RMB 80,733,758.44 (excluding
transaction costs). The repurchase of shares conforms to the requirements of relevant laws and regulations and is in line with the
repurchase program. For details, please refer to the Announcement on the Progress of Repurchasing Shares (No.: 2019-041) disclosed
by the Company on July 3, 2019.
The progress on reduction of re-purchase shares by means of centralized bidding
□ Applicable √ Not applicable
Effects of changes in shares on the basic earnings per share ("EPS"), diluted EPS, net assets per share, attributable to common
shareholders of the Company, and other financial indexes over the last year and last period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or are required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in restricted stocks
√ Applicable □ Not applicable
Unit: share
Name of Opening Increased in Closing
Vested in Current
Sharehold Restricted Current Restricted Note on Restricted Shares Date of Unlocking
Period
er Shares Period Shares
Fu Liquan 841,961,985 7,225,575 834,736,410 According to the relevant According to the
46
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
provisions of executives relevant provisions
shares management of executives shares
management
Per relevant
Per relevant management management
regulations of equity regulations of
Wu Jun 52,003,164 65,000 51,938,164
incentives and senior equity incentives
managers' shares and senior
managers' shares
According to the
According to the relevant
Zhu relevant provisions
116,671,117 23,175,000 139,846,117 provisions of executives
Jiangming of executives shares
shares management
management
Per relevant
Per relevant management management
regulations of equity regulations of
Li Ke 2,015,000 200,000 1,815,000
incentives and senior equity incentives
managers' shares and senior
managers' shares
According to the
According to the relevant
Chen relevant provisions
53,447,110 0 53,447,110 provisions of executives
Ailing of executives shares
shares management
management
Per relevant
Per relevant management management
Chen regulations of equity regulations of
1,441,963 65,000 1,376,963
Yuqing incentives and senior equity incentives
managers' shares and senior
managers' shares
Per relevant
Per relevant management management
regulations of equity regulations of
Wu Jian 1,279,501 132,500 1,147,001
incentives and senior equity incentives
managers' shares and senior
managers' shares
Per relevant
Per relevant management management
Wei regulations of equity regulations of
1,235,000 102,500 1,132,500
Meizhong incentives and senior equity incentives
managers' shares and senior
managers' shares
Wu 636,710 65,000 571,710 Per relevant management Per relevant
47
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Yunlong regulations of equity management
incentives and senior regulations of
managers' shares equity incentives
and senior
managers' shares
Per relevant
Per relevant management
Xu management
530,000 0 530,000 regulations of equity
Zhicheng regulations of
incentives
equity incentives
Per relevant
Per relevant management management
regulations of equity regulations of
Yan Gang 537,262 82,500 454,762
incentives and senior equity incentives
managers' shares and senior
managers' shares
Per relevant
Per relevant management management
Ying regulations of equity regulations of
1,419,437 167,500 1,251,937
Yong incentives and senior equity incentives
managers' shares and senior
managers' shares
Per relevant
Per relevant management
Zhu management
715,169 45,169 670,000 regulations of equity
Jiantang regulations of
incentives
equity incentives
Per relevant
Per relevant management
Zhang management
880,625 140,625 740,000 regulations of equity
Wei regulations of
incentives
equity incentives
Per relevant
Per relevant management management
Zhang regulations of equity regulations of
1,588,560 327,500 1,261,060
Xingming incentives and senior equity incentives
managers' shares and senior
managers' shares
Per relevant
management
Per relevant management
Zhao regulations of
740,000 0 740,000 regulations of equity
Yuning equity incentives
incentives
and senior
managers' shares
Other 92,075,800 44,200 92,031,600 Per relevant management Per relevant
48
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
equity regulations of equity management
incentive incentives regulations of
targets equity incentives
and senior
managers' shares
Total 1,169,178,403 8,663,069 23,175,000 1,183,690,334 -- --
II. Total Number of Shareholders and Their Shareholdings
Unit: share
Total Number of Preferred Shareholders (If
Total Number of Common
Any) (Refer to Note 8) Whose Voting
Shareholders at the End of the 127,017 0
Rights Have Been Recovered at the End of
Reporting Period
the Reporting Period
Particulars about Shares Held by Shareholders with a Shareholding Percentage over 5% or Top Ten Common Shareholders
Number of Pledged or Frozen
Total Shares Increase/De Number of
Shareholdi Common
Held at the crease Common
Name of Nature of ng Shares Held
End of the during the Shares Held
Shareholder Shareholder Percentag without Status Status
Reporting Reporting with Trading
e Trading
Period Period Restrictions
Restrictions
Domestic
Fu Liquan 36.10% 1,082,081,880 -30900000 834,736,410 247,345,470 Pledge 178,652,000
Natural Person
Domestic
Zhu Jiangming 6.22% 186,461,490 30900000 139,846,117 46,615,373 Pledge 36,504,000
Natural Person
Domestic
Chen Ailing 2.38% 71,262,813 0 53,447,110 17,815,703
Natural Person
Domestic
Wu Jun 2.31% 69,250,886 0 51,938,164 17,312,722
Natural Person
Hong Kong
Overseas Legal
Securities Clearing 2.21% 66,113,777 -17922294 0 66,113,777
Person
Co. Ltd.
One Zero Two
Combination of
Others 1.47% 44,039,310 44039310 0 44,039,310
National Social
Security Fund
Domestic
China Securities
Non-state-owne 1.32% 39,611,241 0 0 39,611,241
Finance Co., Ltd.
d Legal Person
Central Huijin Asset State-owned 1.05% 31,448,750 0 0 31,448,750
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Management Co., Legal Person
Ltd.
Shanghai
Greenwoods Asset
Management Ltd. Others 0.89% 26,719,579 26719579 0 26,719,579
－ Greenwoods
Global Funds
Zhejiang Dahua
Technology Co.,
Ltd. - Phase III Others 0.88% 26,247,928 0 0 26,247,928
Employee Stock
Ownership Plan
Information about Strategic Investors’
or General Legal Persons’ Becoming
Top Ten Common Shareholders for N/A
Placement of New Shares (If Any)
(Refer to Note 3)
Explanation on Associated
Mr. Fu Liquan And Ms. Chen Ailing Are Husband And Wife. The Company Is Unaware Of
Relationship or Concerted Actions
Whether Other Shareholders Have Associated Relationship Or Are Persons Acting In
among the Above-Mentioned
Concert.
Shareholders
Particulars about Shares Held by Top Ten Common Shareholders Holding Shares That Are Not Subject to Trading Restrictions
Number of Common Shares Held Type of shares
Name of Shareholder without Restrictions at the End of the
Type Number
Reporting Period
Fu Liquan 247,345,470 RMB common stock 247,345,470
Hong Kong Securities Clearing Co.
66,113,777 RMB common stock 66,113,777
Ltd.
Zhu Jiangming 46,615,373 RMB common stock 46,615,373
One Zero Two Combination of
44,039,310 RMB common stock 44,039,310
National Social Security Fund
China Securities Finance Co., Ltd. 39,611,241 RMB common stock 39,611,241
Central Huijin Asset Management
31,448,750 RMB common stock 31,448,750
Co., Ltd.
Shanghai Greenwoods Asset
Management Ltd. － Greenwoods 26,719,579 RMB common stock 26,719,579
Global Funds
Zhejiang Dahua Technology Co., Ltd.
- Phase III Employee Stock 26,247,928 RMB common stock 26,247,928
Ownership Plan
50
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Industrial and Commercial Bank of
China － Guangfa Jufeng mixed 21,702,684 RMB common stock 21,702,684
securities investment funds
Four One Eight Combination of
18,373,500 RMB common stock 18,373,500
National Social Security Fund
Explanation of Associated
Relationship or Concerted Actions
among Top Ten Common
Mr. Fu Liquan And Ms. Chen Ailing Are Husband And Wife. The Company Is Unaware Of
Shareholders without Trading
Whether Other Shareholders Have Associated Relationship Or Are Persons Acting In
Restrictions, and among Top Ten
Concert.
Common Shareholders without
Trading Restrictions and Top Ten
Common Shareholders
Explanation of Top Ten Common
Shareholders’ Participation in
N/A
Securities Margin Trading (If Any)
(Refer to Note 4)
Whether the Company's top ten common shareholders or top ten common shareholders without limited shares agree on 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 agreed on repurchase in
the reporting period.
III. Changes in Controlling Shareholders and Actual Controllers
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
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
No change has happened to the actual controller in the reporting period
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Section VII Information of Preferred Shares
□ Applicable √ Not applicable
There are no preferred shares in the reporting period.
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Section VIII Information about Directors, Supervisors and Senior
Management
I. Shareholding Changes of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
Number
Number of
Number of of
Shares Shares Restricted
Shares Held at Shares Held at Restricted Restricted
Increased Decreased Shares Held
Tenure the Beginning the End of the Shares Held Shares
Name Title during the during the at the
Status of the Period Period during the Held at
Period Period Beginning
(Shares) (Shares) Current Period the End of
(Shares) (Shares) of the Period
(Shares) the Period
(Shares)
(Shares)
Fu Incum
Chairman 1,112,981,880 0 -30,900,000 1,082,081,880 0 0 0
Liquan bent
Vice
Incum
Wu Jun Chairman, 69,250,886 0 0 69,250,886 0 0 0
bent
Vice President
Director, Incum
Li Ke 2,420,000 0 0 2,420,000 0 0 0
President bent
Zhu Director,
Incum
Jiangmi Executive 155,561,490 30,900,000 0 186,461,490 0 0 0
bent
ng Vice President
Chen Incum
Director 71,262,813 0 0 71,262,813 0 0 0
Ailing bent
He Independent Incum
0 0 0 0 0 0 0
Chao Director bent
Wang Independent Incum
0 0 0 0 0 0 0
Zexia Director bent
Huang Independent Incum
0 0 0 0 0 0 0
Siying Director bent
Song
Incum
Maoyua Supervisor 0 0 0 0 0 0 0
bent
n
Song Incum
Supervisor 0 0 0 0 0 0 0
Ke bent
Zuo Supervisor Incum 0 0 0 0 0 0 0
53
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Pengfei bent
Chen Incum
Vice President 1,835,951 0 0 1,835,951 0 0 0
Yuqing bent
Secretary of
Incum
Wu Jian the Board, 1,529,335 0 0 1,529,335 0 0 0
bent
Vice President
Wei
CFO, Vice Incum
Meizho 1,510,000 0 0 1,510,000 0 0 0
President bent
ng
Wu Incum
Vice President 762,280 0 0 762,280 0 0 0
Yunlong bent
Xu
Incum
Zhichen Vice President 530,000 0 0 530,000 0 0 0
bent
g
Yan Incum
Vice President 606,349 0 0 606,349 0 0 0
Gang bent
Ying Incum
Vice President 1,669,250 0 0 1,669,250 0 0 0
Yong bent
Zhu Incum
Vice President 730,225 0 0 730,225 0 0 0
Jiantang bent
Zhang Incum
Vice President 927,500 0 0 927,500 0 0 0
Wei bent
Zhang
Incum
Xingmi Vice President 1,681,413 0 0 1,681,413 0 0 0
bent
ng
Zhao Incum
Vice President 740,000 0 0 740,000 0 0 0
Yuning bent
Total -- -- 1,423,999,372 30,900,000 -30,900,000 1,423,999,372 0 0 0
II. Changes of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
There are no changes in the directors, supervisors and senior management in the reporting period. For details, refer to 2018 Annual
Report.
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Section IX Corporate Bonds
Whether the Company has corporate bonds which have been publicly issued and listed on the stock exchange, and are unexpired or
expired but not honored in full on the date approved for issuance of the interim report
No
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Section X Financial Reports
I. Audit Reports
Whether the interim report has been audited
□ Yes √ No
The interim financial report of the Company has not been audited.
II. Financial Statements
Units of financial reports in the notes: RMB
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co., Ltd.
Unit: RMB
Item Name June 30, 2019 December 31, 2018
Current Assets:
Cash and Bank Balances 4,201,568,114.35 4,160,153,847.06
Deposit Reservation for Balance
Loans to Banks and Other Financial Institutions
Transactional Financial Assets 7,056,942.13
Financial Liabilities at Fair Value through Profit or Loss
Derivative Financial Assets
Notes Receivable 1,221,653,902.14 2,385,693,417.06
Accounts Receivable 11,134,944,437.85 10,191,372,777.38
Accounts Receivable Financing
Prepayments 153,805,389.06 126,891,259.00
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves Receivable
Other Receivables 361,774,470.14 398,170,769.40
Including: interest receivable 6,425,860.24 6,754,941.00
Dividends Receivable
Buying Back the Sale of Financial Assets
Inventory 3,358,049,330.64 3,035,579,709.14
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Contract Assets
Assets Held for Sale
Non-current Assets Due within 1 Year 612,839,528.91 578,733,057.27
Other Current Assets 475,479,384.01 402,255,078.05
Subtotal of Current Assets 21,527,171,499.23 21,278,849,914.36
Non-current Assets:
Granting of loans and advances
Debt Investment
Financial Assets Available for Sale 82,970,227.00
Other Debt Investment
Held-to-maturity Investments
Long-term Receivables 2,641,057,749.78 1,861,485,568.28
Long-term Equity Investment 165,358,482.24 185,872,021.58
Investments in Other Equity Instruments
Other Non-current Financial Assets 83,970,227.00
Investment Property 344,460,740.53 346,831,376.55
Fixed Assets 1,386,805,962.53 1,407,471,330.83
Projects under Construction 313,934,611.81 226,191,587.11
Productive Biological Assets
Oil and Gas Assets
Right-of-use Assets
Intangible Assets 414,190,037.34 372,467,409.09
Development Expenditure
Goodwill 42,685,490.30 109,745,412.21
Long-term Prepaid Expenses 40,067,888.66 37,117,918.55
Deferred Income Tax Assets 455,446,742.43 425,319,406.98
Other Non-current Assets 12,376,518.59 16,277,605.61
Subtotal of Non-current Assets 5,900,354,451.21 5,071,749,863.79
Total Assets 27,427,525,950.44 26,350,599,778.15
Current Liabilities:
Short-term Loan 3,084,859,034.59 1,851,709,561.83
Borrowings from the Central Bank
Borrowings from Banks and Other Financial Institutions
Transactional Financial Liabilities
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Financial Liabilities Measured in Fair Value with
38,602,602.30
Changes Recorded into Current Profit and Loss
Derivative Financial Liabilities
Notes Payable 3,483,458,773.48 3,671,586,104.79
Accounts Payable 3,194,442,877.42 3,789,729,594.20
Received Prepayments 349,666,289.12 343,297,891.20
Financial Assets Sold for Repurchase
Deposit Taking and Interbank Deposit
Receiving from Vicariously Traded Securities
Receiving from Vicariously Sold Securities
Payroll Payable 825,786,554.13 1,124,358,611.94
Tax Payable 452,778,426.22 599,478,049.81
Other Payables 1,095,464,506.44 1,051,537,094.97
Including: Interest Payable 11,000,751.65 4,745,203.31
Dividends Payable 9,882,284.31
Service Charge and Commission Payable
Reinsurance Accounts Payable
Contract Liabilities
Holding for-sale Liabilities
Non-current Liabilities Due within 1 Year 25,500,000.00 25,500,000.00
Other Current Liabilities 69,464,435.03 70,845,639.51
Subtotal of Current Liabilities 12,581,420,896.43 12,566,645,150.55
Non-current Liabilities:
Insurance Contract Reserves
Long-term Loan 154,000,000.00 179,000,000.00
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities
Long-term Payables
Long-term payroll payable
Expected Liabilities 263,357,330.71 193,761,170.12
Deferred Income 84,562,221.66 58,693,533.40
Deferred Income Tax Liabilities 54,222,930.63 50,137,969.76
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Other Non-current Liabilities 436,460,214.81 399,096,280.89
Subtotal of Non-current Liabilities 992,602,697.81 880,688,954.17
Total Liabilities 13,574,023,594.24 13,447,334,104.72
Shareholders' Equity:
Share Capital 2,997,577,730.00 2,997,621,930.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 1,572,198,377.82 1,501,180,862.83
Less: Treasury Share 878,223,946.13 807,733,586.00
Other Comprehensive Incomes 9,618,908.81 10,337,164.41
Special Reserves
Surplus Reserves 1,246,369,430.91 1,246,369,430.91
General Risk Reserves
Undistributed Profits 8,610,102,395.08 7,670,983,116.33
Total Shareholders' Equity Attributable to the Parent
13,557,642,896.49 12,618,758,918.48
Company
Minority Shareholders' Equity 295,859,459.71 284,506,754.95
Total Shareholders' Equity 13,853,502,356.20 12,903,265,673.43
Total Liabilities and Shareholders' Equity 27,427,525,950.44 26,350,599,778.15
Legal representative: Fu Liquan Person in charge of accounting: Wei Meizhong Person in charge of the accounting
institution: Xu Qiaofen
2. Balance Sheet of the Parent Company
Unit: RMB
Item Name June 30, 2019 December 31, 2018
Current Assets:
Cash and Bank Balances 245,073,466.45 611,190,236.01
Transactional Financial Assets
Financial Liabilities at Fair Value through Profit or Loss
Derivative Financial Assets
Notes Receivable 1,275,996,301.42 952,572,702.92
Accounts Receivable 5,668,093,889.72 4,598,575,923.04
Accounts Receivable Financing
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Prepayments 25,023,339.08 26,772,044.53
Other Receivables 6,573,741,249.72 6,954,655,863.03
Including: Interest Receivable 42,500.00
Dividends Receivable
Inventory 128,043,339.19 120,181,267.85
Contract Assets
Holding for-sale Assets
Non-current Assets Due within 1 Year 52,447,313.43 50,793,137.80
Other Current Assets 18,513,295.06 24,858,982.78
Subtotal of Current Assets 13,986,932,194.07 13,339,600,157.96
Non-current Assets:
Debt Investment
Financial Assets Available for Sale 80,496,000.00
Other Debt Investment
Held-to-maturity Investments
Long-term Receivables 150,094,217.59 160,299,143.83
Long-term Equity Investment 3,096,995,988.50 3,001,639,428.55
Investments in Other Equity Instruments
Other Non-current Financial Assets 81,496,000.00
Investment Property 179,541,537.43 183,321,198.72
Fixed Assets 465,918,980.05 496,363,638.38
Projects under Construction 193,304,354.49 151,072,585.67
Productive Biological Assets
Oil and Gas Assets
Right-of-use Assets
Intangible Assets 166,222,752.00 170,879,747.04
Development Expenditure
Goodwill
Long-term Prepaid Expenses 29,875,429.30 28,927,258.54
Deferred Income Tax Assets 69,820,670.32 40,821,902.57
Other Non-current Assets 7,322,417.84 929,380.00
Subtotal of Non-current Assets 4,440,592,347.52 4,314,750,283.30
Total Assets 18,427,524,541.59 17,654,350,441.26
Current Liabilities:
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Short-term loan 2,277,018,356.11 1,380,000,000.00
Transactional Financial Liabilities
Financial Liabilities Measured in Fair Value with
Changes Recorded into Current Profit and Loss
Derivative Financial Liabilities
Notes Payable 156,583,971.97 175,647,414.85
Accounts Payable 310,480,128.01 889,881,485.16
Received Prepayments 33,135,369.79 80,361,211.04
Contract Liabilities
Payroll Payable 577,017,944.06 817,723,936.19
Tax Payable 309,129,580.10 351,294,836.50
Other Payables 1,048,214,399.46 1,060,909,330.56
Including: interest payable 6,472,441.27 2,416,340.30
Dividends Payable 9,882,284.31
Holding for-sale liabilities
Non-current Liabilities Due within 1 Year
Other Current Liabilities 5,959,914.87 6,464,333.12
Subtotal of Current Liabilities 4,717,539,664.37 4,762,282,547.42
Non-current Liabilities:
Long-term Loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities
Long-term Payables
Long-term payroll payable
Expected Liabilities 2,435,103.64 3,396,100.00
Deferred Income
Deferred Income Tax Liabilities
Other Non-current Liabilities 17,802,512.51 23,684,423.74
Subtotal of Non-current Liabilities 20,237,616.15 27,080,523.74
Total Liabilities 4,737,777,280.52 4,789,363,071.16
Shareholders' Equity:
Share Capital 2,997,577,730.00 2,997,621,930.00
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 1,566,261,837.67 1,497,801,068.88
Less: Treasury Share 878,223,946.13 807,733,586.00
Other Comprehensive Incomes
Special Reserves
Surplus Reserves 1,246,369,430.91 1,246,369,430.91
Undistributed Profits 8,757,762,208.62 7,930,928,526.31
Total Shareholders' Equity 13,689,747,261.07 12,864,987,370.10
Total Liabilities and Shareholders' Equity 18,427,524,541.59 17,654,350,441.26
3. Consolidated Income Statement
Unit: RMB
Item Name 2019 Interim 2018 Interim
I. Total Operating Revenue 10,806,566,370.89 9,814,041,352.48
Including: Operating Revenue 10,806,566,370.89 9,814,041,352.48
Interest Income
Earned Premiums
Service Charge and Commission Income
II. Total Operating Cost 9,650,560,173.11 8,657,002,668.63
Including: Operating Cost 6,443,429,151.03 6,230,120,445.06
Interest Expenditures
Service Charge and Commission Expenses
Surrender Value
Net Claims Paid
Net Amount Withdrawn for Insurance Contract
Reserves
Policyholder Dividend Expense
Reinsurance Cost
Taxes and Surcharges 64,190,849.22 62,692,261.97
Sales Expenses 1,539,714,255.33 1,252,741,900.83
Administration expenses 346,919,167.36 269,199,404.53
Research and development expense 1,245,261,201.77 865,129,052.09
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Financial Expenses 11,045,548.40 -22,880,395.85
Including: interest expenses 76,337,321.42 48,561,403.94
Interest Income 81,150,189.81 50,792,338.79
Add: Other income 426,921,517.08 284,916,998.93
Investment Income (Mark "-" for Loss) -5,691,002.29 -20,867,876.31
Including: Investment Income from Affiliates and
-548,623.93 -25,567,280.91
Joint Ventures
Income of Financial Assets Recognition
Termination Measured at Amortized Cost (Mark "-" for Loss)
Exchange Gains (Mark "-" for Losses)
Net Exposure Hedging Income (Mark "-" for Loss)
Incomes from changes in fair value (losses marked
45,449,188.16 -41,332,765.27
with "-")
Credit Impairment Loss (Mark "-" for Loss) -163,681,506.49
Asset Impairment Loss (Mark "-" for Loss) -98,774,186.62 -128,296,022.40
Asset Disposal Income (Mark "-" for Loss) 448,615.83 -13,024.74
III. Operating Profit (Mark "-" for Loss) 1,360,678,823.45 1,251,445,994.06
Add: Non-operating Revenues 8,513,835.06 5,234,299.09
Less: Non-operating Expenses 1,357,098.55 2,194,887.35
IV. Total Profit (Mark "-" for Total Loss) 1,367,835,559.96 1,254,485,405.80
Less: Income Tax Expense 163,173,365.97 165,721,533.63
V. Net Profit (Mark "-" for Net Loss) 1,204,662,193.99 1,088,763,872.17
(I) Classified by Business Continuity
1. Net Profit as a Going Concern (Mark "-" for Net
1,204,662,193.99 1,088,763,872.17
Loss)
2. Net Profit of Discontinued Operation (Mark "-" for
Net Loss)
(II) Classified by Ownership
1. Net Profit Attributable to the Parent Company's
1,238,880,948.74 1,081,916,886.52
Owner
2. Minority Shareholders' Profit and Loss -34,218,754.75 6,846,985.65
VI. Net Amount of Other Comprehensive Incomes after Tax -718,205.48 8,393,760.02
Net Amount of Other Comprehensive Incomes after Tax
-718,255.60 8,393,760.02
Attributable to the Parent Company's Owner
(1) Other comprehensive income that cannot be
reclassified as P/L
63
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
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 Fair Value of Investments in Other
Equity Instruments
4. Changes in Fair Value of the Company's Own
Credit Risk
5. Others
(2) Other comprehensive income that will be
-718,255.60 8,393,760.02
reclassified as P/L
1. Other comprehensive income that can be
transferred to P/L under the equity method
2. Changes in Fair Value of Other Debt
Investment
3. Profit or Loss Arising from Changes in the
Fair Value of Financial Assets Available for Sale
4. The Amount of Financial Assets Reclassified
into Other Comprehensive Income
5. Profit or Loss Arising from Reclassifying
Investments Held to Maturity as Financial Assets Available
for Sale
6. Provision for Credit Impairment of Other
Debt Investment
7. Cash Flow Hedge Reserves
8. Currency Conversion Difference -718,255.60 8,393,760.02
9. Others
Net Amount of Other Comprehensive Incomes After Tax
50.12
Attributable to Minority Shareholders
VII. Total Comprehensive Income 1,203,943,988.51 1,097,157,632.19
Total Comprehensive Income Attributable to the Parent
1,238,162,693.14 1,090,310,646.54
Company's Owner
Total Comprehensive Income Attributable to Minority
-34,218,704.63 6,846,985.65
Shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.42 0.37
(II) Diluted Earnings per Share 0.42 0.37
In the case of enterprise consolidation under the same control during this period, the net profit realized by consolidated party before
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
consolidation is: RMB. The net profit realized by the consolidated party during previous period is: RMB.
Legal representative: Fu Liquan Person in charge of accounting: Wei Meizhong Person in charge of the accounting
institution: Xu Qiaofen
4. Income Statement of the Parent Company
Unit: RMB
Item Name 2019 Interim 2018 Interim
I. Operating Revenue 3,281,203,959.86 3,784,147,825.87
Less: Operating Cost 369,348,403.98 1,167,353,125.94
Taxes and Surcharges 43,805,303.56 44,911,616.72
Sales Expenses 774,697,601.25 684,873,752.77
Administration expenses 194,508,500.94 124,907,951.12
Research and development expense 1,047,272,163.00 758,110,009.97
Financial Expenses 32,399,789.08 -10,918,444.75
Including: interest expenses 51,929,211.84 16,615,717.39
Interest Income 21,971,107.71 27,789,833.90
Add: Other income 388,225,543.16 272,484,387.90
Investment Income (Mark "-" for Loss) 9,740,090.32 -23,467,410.68
Including: Investment Income from Affiliates and
-7,096.54 -24,852,586.71
Joint Ventures
Income of Financial Assets Recognition
Termination Measured at Amortized Cost (Mark "-" for Loss)
Net Exposure Hedging Income (Mark "-" for Loss)
Incomes from changes in fair value (losses marked
with "-")
Credit Impairment Loss (Mark "-" for Loss) -10,600,820.35
Asset Impairment Loss (Mark "-" for Loss) -11,200,169.56
Asset Disposal Income (Mark "-" for Loss) 230,024.34 -13,523.79
II. Operating Profit (Mark "-" for Loss) 1,206,767,035.52 1,252,713,097.97
Add: Non-operating Revenues 2,476,092.90 2,920,994.67
Less: Non-operating Expenses 700,678.88 328,747.03
III. Total Profit (Mark "-" for Total Loss) 1,208,542,449.54 1,255,305,345.61
Less: Income Tax Expense 81,947,097.24 148,829,495.03
IV. Net Profit (Mark "-" for Net Loss) 1,126,595,352.30 1,106,475,850.58
(I) Net Profit as a Going Concern (Mark "-" for Net 1,126,595,352.30 1,106,475,850.58
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Loss)
(II) Net Profit of Discontinued Operation (Mark "-" for
Net Loss)
V. Net Amount of Other Comprehensive Incomes After Tax
(1) Other comprehensive income that cannot be
reclassified as P/L
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 Fair Value of Investments in Other
Equity Instruments
4. Changes in Fair Value of the Company's Own
Credit Risk
5. Others
(2) 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 Fair Value of Other Debt
Investment
3. Profit or Loss Arising from Changes in the
Fair Value of Financial Assets Available for Sale
4. The Amount of Financial Assets Reclassified
into Other Comprehensive Income
5. Profit or Loss Arising from Reclassifying
Investments Held to Maturity as Financial Assets Available
for Sale
6. Provision for Credit Impairment of Other
Debt Investment
7. Cash Flow Hedge Reserves
8. Currency Conversion Difference
9. Others
VI. Total Comprehensive Income 1,126,595,352.30 1,106,475,850.58
VII. Earnings per Share:
(I) Basic Earnings per Share 0.39 0.38
(II) Diluted Earnings per Share 0.39 0.38
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
5. Consolidated Cash Flow Statement
Unit: RMB
Item Name 2019 Interim 2018 Interim
I. Cash Flow Generated by Operational Activities:
Cash from Sales of Merchandise and Provision of Services 10,826,094,759.86 9,194,169,425.67
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 Received from Vicariously Traded Securities
Tax Refund 824,424,362.86 721,443,953.84
Other Received Cashes Related to Operational Activities 182,265,336.17 69,273,319.56
Subtotal of cash inflow from operational activities 11,832,784,458.89 9,984,886,699.07
Cash Paid for Merchandise and Services 8,183,055,955.85 7,190,765,894.34
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 in Financial Assets Held for Trading Purposes
Net Increase in Loans to Banks and Other Financial Institutions
Cash Paid for Interests, Service Charges and Commissions
Cash Paid for Policy Dividends
Cash Paid to and for Employees 2,506,637,462.82 2,120,130,137.36
Cash Paid for Taxes and Surcharges 851,257,957.46 722,939,607.07
Other Paid Cashes Related to Operational Activities 1,162,300,175.64 1,047,407,897.30
Subtotal of cash outflow from operational activities 12,703,251,551.77 11,081,243,536.07
Net cash flow generated by operating activities -870,467,092.88 -1,096,356,837.00
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
II. Cash Flow from Investment Activities:
Cash Arising from Disposal of Investments 140,950,000.00
Cash Arising from Investment Incomes 9,387,186.86 1,604,974.66
Net Cash Arising from Disposal of Fixed Assets, Intangible Assets
4,361,781.86 330,762.69
and Other Long-term Assets
Net Cash Arising from Disposal of Subsidiaries and Other
Business Units
Other Received Cashes Related to Investment Activities 4,052,392.39 2,404,123.87
Subtotal of cash inflow from investment activities 17,801,361.11 145,289,861.22
Cash Paid for Purchase and Construction of Fixed Assets,
260,697,897.67 223,433,215.10
Intangible Assets and Other Long-term Assets
Cash Paid for Investments 13,200,000.00 139,300,000.00
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of Subsidiaries and Other Business
56,408,605.39
Units
Other Paid Cashes Related to Investment Activities 26,458,528.22 75,796,952.33
Subtotal of cash outflow from investment activities 300,356,425.89 494,938,772.82
Net amount of cash flow generated by investment activities -282,555,064.78 -349,648,911.60
III. Cash Flow from Financing Activities:
Cash Arising from Absorbing Investments 43,114,250.00 28,410,000.00
Including: Cash Arising from Subsidiaries Absorbing Investments
43,114,250.00 28,410,000.00
by Minority Shareholders
Cash Arising from Borrowings 3,995,334,621.50 2,967,492,895.90
Cash Arising from Bonds Issue
Other Received Cashes Related to Financing Activities 805,382,000.00 619,391,279.99
Subtotal of cash inflow from financing activities 4,843,830,871.50 3,615,294,175.89
Cash Paid for Debts Repayment 2,690,153,276.12 2,210,534,089.02
Cash Paid for Distribution of Dividends and Profits or Payment of
348,633,662.77 624,264,590.19
Interests
Including: Dividends and Profits Paid to Minority Shareholders
by Subsidiaries
Other Paid Cashes Related to Financing Activities 816,654,575.69 547,215,000.00
Subtotal of cash outflow from financing activities 3,855,441,514.58 3,382,013,679.21
Net cash flow generated by financing activities 988,389,356.92 233,280,496.68
IV. Impact of Fluctuation in Exchange Rate on Cash and Cash
7,299,167.67 15,101,534.67
Equivalents
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
V. Net Increase in Cash and Cash Equivalents -157,333,633.07 -1,197,623,717.25
Add: Cash and Cash Equivalents at the Commencement of the
3,702,283,803.54 3,062,678,993.88
Period
VI. Cash and Cash Equivalents at the End of the Period 3,544,950,170.47 1,865,055,276.63
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item Name 2019 Interim 2018 Interim
I. Cash Flow Generated by Operational Activities:
Cash from Sales of Merchandise and Provision of Services 1,594,454,492.04 5,620,171,988.98
Tax Refund 327,192,023.88 271,139,112.45
Other Received Cashes Related to Operational Activities 98,858,726.98 5,648,274.89
Subtotal of cash inflow from operational activities 2,020,505,242.90 5,896,959,376.32
Cash Paid for Merchandise and Services 391,253,745.70 974,190,280.44
Cash Paid to and for Employees 1,597,070,311.21 1,369,457,901.39
Cash Paid for Taxes and Surcharges 534,095,073.85 538,414,539.67
Other Paid Cashes Related to Operational Activities 550,587,545.42 544,751,757.29
Subtotal of cash outflow from operational activities 3,073,006,676.18 3,426,814,478.79
Net cash flow generated by operating activities -1,052,501,433.28 2,470,144,897.53
II. Cash Flow from Investment Activities:
Cash Arising from Disposal of Investments 107,950,000.00
Cash Arising from Investment Incomes 9,387,186.86 1,385,176.03
Net Cash Arising from Disposal of Fixed Assets, Intangible Assets
12,303,962.73 65,609,157.24
and Other Long-term Assets
Net Cash Arising from Disposal of Subsidiaries and Other
Business Units
Other Received Cashes Related to Investment Activities 9,227,698.52 28,221,407.92
Subtotal of cash inflow from investment activities 30,918,848.11 203,165,741.19
Cash Paid for Purchase and Construction of Fixed Assets,
102,347,243.84 35,814,739.74
Intangible Assets and Other Long-term Assets
Cash Paid for Investments 111,885,750.00 389,982,000.00
Net Cash Paid for Acquisition of Subsidiaries and Other Business
Units
Other Paid Cashes Related to Investment Activities
Subtotal of cash outflow from investment activities 214,232,993.84 425,796,739.74
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Net amount of cash flow generated by investment activities -183,314,145.73 -222,630,998.55
III. Cash Flow from Financing Activities:
Cash Arising from Absorbing Investments
Cash Arising from Borrowings 1,963,462,853.53 850,000,000.00
Cash Arising from Bonds Issue
Other Received Cashes Related to Financing Activities 2,541,785,779.17 110,534,201.15
Subtotal of cash inflow from financing activities 4,505,248,632.70 960,534,201.15
Cash Paid for Debts Repayment 1,066,444,497.42 300,000,000.00
Cash Paid for Distribution of Dividends and Profits or Payment of
329,177,945.46 592,580,560.69
Interests
Other Paid Cashes Related to Financing Activities 2,258,109,917.86 2,768,689,582.54
Subtotal of cash outflow from financing activities 3,653,732,360.74 3,661,270,143.23
Net cash flow generated by financing activities 851,516,271.96 -2,700,735,942.08
IV. Impact of Fluctuation in Exchange Rate on Cash and Cash
-251,558.05 -130,404.43
Equivalents
V. Net Increase in Cash and Cash Equivalents -384,550,865.10 -453,352,447.53
Add: Cash and Cash Equivalents at the Commencement of the
603,430,209.42 524,670,812.68
Period
VI. Cash and Cash Equivalents at the End of the Period 218,879,344.32 71,318,365.15
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
2019 Interim
Shareholders' Equity Attributable to the Parent Company's Owner
Other Equity Other Spec Gener Minority Total
Item Name Less: Ot
Instruments Capital Comprehe ial Surplus al Risk Undistributed Shareholder Shareholders'
Share Capital Treasury he Subtotal
Preferre Perpetua Othe Reserves nsive Rese Reserves Reserv Profits s' Equity Equity
Share rs
d Stocks l Bonds rs Incomes rves es
I. Balance at the 2,997,621,930 1,501,180,862 807,733,586 10,337,16 1,246,369,430 7,670,983,116. 12,618,758,918. 284,506,754 12,903,265,673.
End of Last Year .00 .83 .00 4.41 .91 33 48 .95 43
Add:
Changes in
Accounting
Policies
Correction of
Errors in the
Previous Period
Consolidated
under the Same
Control
Others
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
II. Balance at
2,997,621,930 1,501,180,862 807,733,586 10,337,16 1,246,369,430 7,670,983,116. 12,618,758,918. 284,506,754 12,903,265,673.
the Start of This
.00 .83 .00 4.41 .91 33 48 .95 43
Year
III. Increases or
Decreases in
70,490,360. -718,255.6 939,119,278.7 11,352,704.
This Period -44,200.00 71,017,514.99 938,883,978.01 950,236,682.77
13 0 5 76
(Mark "-" for
Decreases)
(I) Total
-718,255.6 1,238,880,948 1,238,162,693.1 -34,218,704. 1,203,943,988.5
Comprehensive
0 .74 4 63 1
Income
(II)
Shareholders'
103,583,714.0 80,372,644. 43,114,250.
Contribution -44,200.00 23,166,869.60 66,281,119.60
4 44 00
and Reduction
in Capital
1． Common
80,372,644. 43,114,250.
stock invested -44,200.00 -326,617.25 -80,743,461.69 -37,629,211.69
44 00
by the owner
2． Capital
Invested by
Holders of
Other Equity
Instruments
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
3． Amount of
Share-based
Payments 103,910,331.2
103,910,331.29 103,910,331.29
Recorded into 9
Shareholders'
Equity
4． Others
(III) Profit -9,882,284.3 -299,761,669.
-289,879,385.68 -289,879,385.68
Distribution 1 99
1． Appropriati
on of Surplus
Reserves
2． Appropriati
on of General
Risk Reserves
3． Distribution
-299,761,669.
to Owners (or -299,761,669.99 -299,761,669.99
99
Shareholders)
-9,882,284.3
4． Others 9,882,284.31 9,882,284.31
1
(IV) Internal
Carry-forward
of Shareholders'
Equity
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
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-forw
ard retained
earnings of the
variation of the
defined benefit
plan
5． Carry-forw
ard Retained
Earnings of
Other
Comprehensive
Incomes
6． Others
(V) Special
Reserves
1． Withdrawal
74
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
in this period
2． Used in This
Period
-32,566,199.0 2,457,159.3
(VI) Others -32,566,199.05 -30,109,039.66
5 9
IV. Balance at
2,997,577,730 1,572,198,377 878,223,946 9,618,908. 1,246,369,430 8,610,102,395 13,557,642,896. 295,859,459 13,853,502,356.
the End of This
.00 .82 .13 81 .91 .08 49 .71 20
Period
Amount of Previous Period
Unit: RMB
2018 Interim
Minority Total
Shareholders' Equity Attributable to the Parent Company's Owner Shareholder Shareholder
s' Equity s' Equity
Item Name
Other Equity Instruments Other
Less: General
Preferre Perpetu Capital Comprehe Special Surplus Undistribut
Share Capital Treasury Risk Others Subtotal
d al Others Reserves nsive Reserves Reserves ed Profits
Share Reserves
Stocks Bonds Incomes
I. Balance at the 593,340,7 6,660,189. 971,547,2 5,996,130, 10,466,43 126,795,637 10,593,230,
2,898,756,130.00
End of Last Year 51.52 04 68.36 036.27 4,375.19 .30 012.49
Add:
Changes in
Accounting
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Policies
Correction of
Errors in the
Previous Period
Consolidated
under the Same
Control
Others
II. Balance at the 593,340,7 6,660,189. 971,547,2 5,996,130, 10,466,43 126,795,637 10,593,230,
2,898,756,130.00
Start of This Year 51.52 04 68.36 036.27 4,375.19 .30 012.49
III. Increases or
Decreases in This -704,848.3 8,393,760. 502,165,66 509,854,5 34,324,328. 544,178,901
Period (Mark "-" 9 02 0.52 72.15 94 .09
for Decreases)
(I) Total
8,393,760. 1,081,916, 1,090,310, 6,846,985.6 1,097,157,6
Comprehensive
02 886.52 646.54 5 32.19
Income
(II) Shareholders'
Contribution and 27,410,000. 27,410,000.
Reduction in 00 00
Capital
1． Common
27,410,000. 27,410,000.
stock invested by
00 00
the owner
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
2． Capital
Invested by
Holders of Other
Equity
Instruments
3． Amount of
Share-based
Payments
Recorded into
Shareholders'
Equity
4． Others
(III) Profit -579,751,2 -579,751,2 -579,751,22
Distribution 26.00 26.00 6.00
1． Appropriation
of Surplus
Reserves
2． Appropriation
of General Risk
Reserves
3． Distribution to
-579,751,2 -579,751,2 -579,751,22
Owners (or
26.00 26.00 6.00
Shareholders)
4． Others
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
(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． Carry-forward
Retained Earnings
of Other
Comprehensive
Incomes
6． Others
78
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
(V) Special
Reserves
1． Withdrawal in
this period
2． Used in This
Period
-704,848.3 -704,848.3
(VI) Others 67,343.29 -637,505.10
9 9
IV. Balance at the 592,635,9 15,053,94 971,547,2 6,498,295, 10,976,28 161,119,966 11,137,408,
2,898,756,130.00
End of This Period 03.13 9.06 68.36 696.79 8,947.34 .24 913.58
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
2019 Interim
Other Equity Instruments Less: Other Total
Item Name Share Capital Special Surplus
Preferred Perpetual Treasury Comprehensi Undistributed Profits Others Shareholders'
Capital Others Reserves Reserves Reserves
Stocks Bonds Share ve Incomes Equity
I. Balance at the End of Last 2,997,621, 1,497,801,06 807,733,586. 1,246,369, 12,864,987,370.
7,930,928,526.31
Year 930.00 8.88 00 430.91 10
Add: Changes in
Accounting Policies
Correction of Errors
in the Previous Period
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Others
II. Balance at the Start of This 2,997,621, 1,497,801,06 807,733,586. 1,246,369, 12,864,987,370.
7,930,928,526.31
Year 930.00 8.88 00 430.91 10
III. Increases or Decreases in
68,460,768.7 70,490,360.1
This Period (Mark "-" for -44,200.00 826,833,682.31 824,759,890.97
9 3
Decreases)
(I) Total Comprehensive 1,126,595,352.3
1,126,595,352.30
Income 0
(II) Shareholders' Contribution 101,026,967. 80,372,644.4
-44,200.00 20,610,123.40
and Reduction in Capital 84 4
1． Common stock invested by 80,372,644.4
-44,200.00 -326,617.25 -80,743,461.69
the owner 4
2．Capital Invested by Holders
of Other Equity Instruments
3． Amount of Share-based
101,353,585.
Payments Recorded into 101,353,585.09
09
Shareholders' Equity
4． Others
-9,882,284.3
(III) Profit Distribution -299,761,669.99 -289,879,385.68
1
1． Appropriation of Surplus
Reserves
80
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
2． Distribution to Owners (or
-299,761,669.99 -299,761,669.99
Shareholders)
-9,882,284.3
3． Others 9,882,284.31
1
(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． Carry-forward Retained
Earnings of Other
Comprehensive Incomes
6． Others
(V) Special Reserves
1． Withdrawal in this period
2． Used in This Period
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
-32,566,199.
(VI) Others -32,566,199.05
05
IV. Balance at the End of This 2,997,577, 1,566,261,83 878,223,946. 1,246,369, 13,689,747,261.
8,757,762,208.62
Period 730.00 7.67 13 430.91 07
Amount of Previous Period
Unit: RMB
2018 Interim
Other Equity Instruments Less: Other Total
Item Name Capital Special Surplus Undistributed
Share Capital Preferre Perpetua Other Treasury Comprehens Others Shareholders'
Reserves Reserves Reserves Profits
d Stocks l Bonds s Share ive Incomes Equity
I. Balance at the End of Last 2,898,756,130.0 589,895,836. 971,547,268 6,037,280,289. 10,497,479,524.2
Year 0 49 .36 37 2
Add: Changes in
Accounting Policies
Correction of Errors
in the Previous Period
Others
II. Balance at the Start of This 2,898,756,130.0 589,895,836. 971,547,268 6,037,280,289. 10,497,479,524.2
Year 0 49 .36 37 2
III. Increases or Decreases in
526,724,624.5
This Period (Mark "-" for -637,505.10 526,087,119.48
8
Decreases)
(I) Total Comprehensive 1,106,475,850.
1,106,475,850.58
Income 58
(II) Shareholders'
82
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
Contribution and Reduction in
Capital
1． Common stock invested
by the owner
2． Capital Invested by
Holders of Other Equity
Instruments
3． Amount of Share-based
Payments Recorded into
Shareholders' Equity
4． Others
-579,751,226.0
(III) Profit Distribution -579,751,226.00
0
1． Appropriation of Surplus
Reserves
2． Distribution to Owners (or -579,751,226.0
-579,751,226.00
Shareholders) 0
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)
83
2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
3． Surplus Reserves
Covering Losses
4． Carry-forward retained
earnings of the variation of
the defined benefit plan
5． Carry-forward Retained
Earnings of Other
Comprehensive Incomes
6． Others
(V) Special Reserves
1． Withdrawal in this period
2． Used in This Period
(VI) Others -637,505.10 -637,505.10
IV. Balance at the End of This 2,898,756,130.0 589,258,331. 971,547,268 6,564,004,913. 11,023,566,643.7
Period 0 39 .36 95 0
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
III. Basic Information about the Company
Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as "Company" or "the Company") was incorporated under the
official approval document No. 18 [2002] Zhejiang Enterprise Listing by Zhejiang Provincial People's Government Work Leading
Group for Enterprise Listing in June 2002, and on the basis of overall change of the previous Hangzhou Dahua Information
Technology Co., Ltd. It was an incorporated company initiated and established jointly by five natural persons, Fu Liquan, Chen
Ailing, Zhu Jiangming, Liu Yunzhen and Chen Jianfeng as initiators.
On April 22, 2008, the Company issued 16.8 million shares of common stock in RMB to the general public for the first time
under the approval document No. 573 [2008] Securities Regulatory Issuance, issued by China Securities Regulatory Commission
("CSRC"). It was listed on Shenzhen Stock Exchange on May 20, 2008 with a registered capital of RMB 66.8 million and the change
registration filed with Administration for Industry and Commerce was completed on May 23, 2008. The Company's unified social
credit code is 91330000727215176K. The Company falls within the security video surveillance industry.
As of June 30, 2019, the Company has issued a total of 2,997,577,730 shares, with a registered capital of RMB 2,997,577,730.
The registered address is No. 1187, Bin'an Road, Binjiang District, Hangzhou, and the headquarters address is No. 1199, Bin'an Road,
Binjiang District, Hangzhou.
The Company's main operational activities include the development, services & sales of computer software, the design,
development, production, installation & sales of electronic products and communication products, the development, system
integration & sales of network products, the design & installation of electronic engineering products, information technology
consultation service, import & export businesses, etc. The actual controllers of the Company are Fu Liquan and Chen Ailing.
This financial statement has been approved by Board of Directors on August 16, 2019.
For details of the scope of the consolidated financial statement for the current period, refer to Note IX "Equities in Other
Entities"; for details of the changes in the scope of the consolidated financial statement for the current period, refer to Note VIII
"Changes in the Scope of Consolidation".
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 have actually occurred, in
accordance with Accounting Standards for Business Enterprises - Basic Standards issued by the Ministry of Finance and all specific
accounting standards, application guidelines for accounting standards for business 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 provisions in the Preparation Rules for Information Disclosures by Companies Offering
Securities to the Public No. 15 - General Provisions on Financial Reports issued by CSRC.
2. Going concern
The Company has the capability to continue as a going concern for at least 12 months as of the end of current reporting period,
without any significant item affecting the capability for continuing as a going concern.
V. Significant Accounting Polices and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
The following disclosures cover the specific accounting policies and accounting estimates formulated by the Company
according to the characteristics of its production and operation.
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2019 Interim Report of Zhejiang Dahua Technology Co., Ltd.
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements have been prepared by the Company in conformity with Chinese Accounting Standards for Business
Enterprises, and present truly and completely the Company's financial position, operating results and cash flow, and other related
information in the reporting period.
2. Accounting period
The accounting period of the Company is from 1 January to 31 December 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
reporting currency is Renminbi ("RMB"). The remaining offshore operating entities use the local currency as the reporting currency.
5. The accounting treatment of business combinations involving enterprises under common control and
business combinations not involving enterprises under common control
Business combinations involving entities under common control: The assets and liabilities acquired by the Company in business
combination shall be measured at the carrying value of the assets, liabilities of the acquiree (including goodwill incurred in the
acquisition of the acquiree by ultimate controlling party) in the consolidated financial statements of the ultimate controlling party on
the date of combination. The difference between the carrying amount of the net assets obtained and the carrying amount 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 the share premiums in the capital reserves are not suffi cient for
write-down.
Business combinations involving entities not under common control: The assets paid and liabilities incurred or committed as a
consideration of business combination by the Company were measured at fair value on the date of acquisition and the difference
between the fair value and its carrying value shall be charged to the profit or loss for the period. Where the cost of combination is
higher than the fair value of the identifiable net assets acquired from the acquire in business combination, the Company shall
recognize such difference as goodwill; where the cost of combination is less than the fair value of the identifiable net assets acquired
from the acquiree in business combination, such difference shall be charged to the profit or loss for the current period.
The agency fee such as audit, legal service and evaluation consultation and other fees which are directly related to the above
matters shall be recognized as the profit or loss in the period when the costs are incurred; the transaction costs for the equity
securities issued for corporate combination shall be written-off against equity.
6. Preparation method of consolidated financial statements
The scope of consolidation of the consolidated financial statements of the Company is based on controlling interests, and all the
subsidiaries (including separate entities of the investee controlled by the Company) are included in the consolidated financial
statements.
The consolidated financial statements are prepared by the Company based on the financial statements of the Company and its
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subsidiaries and in accordance with the other relevant information. In preparation of the Company's consolidated financial statements,
the Company will treat the enterprise group as a single accounting entity. The Group's overall financial position, operating results and
cash flow are reflected based on the relevant accounting standards, measurement and presentation requirements and in accordance
with the unified accounting policy.
The subsidiaries that are within the scope of the consolidation shall have the same accounting policies and the accounting
periods with those of the Company. In preparing the consolidated financial statements, where the accounting policies and the
accounting periods are inconsistent between the Company and subsidiaries, the financial statements of subsidiaries are adjusted in
accordance with the accounting policies and accounting period of the Company. For subsidiaries acquired from a business
combination involving entities not under common control, the individual financial statements of the subsidiaries are adjusted based
on the fair value of the identifiable net assets on the date of acquisition. For subsidiaries acquired from a business combination
involving entities under common control, the individual financial statements of the subsidiaries are adjusted based on the carrying
value of the assets, liabilities of the acquiree (including goodwill incurred in the acquisition of the acquiree by ultimate controlling
party) in the financial statements of the ultimate controlling party.
The owner's equity, the net profit or loss and the comprehensive income attributable to minority shareholders of a subsidiary of
the current period are presented separately under the owners' equity in the consolidated balance sheet, the net profit and the total
comprehensive income in the consolidated income statement respectively. Where losses attributable to the minority shareholder s 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 is allocated against the minority shareholders interest.
(1) Acquisition of subsidiaries or business
For acquisition of subsidiaries or business due to business combination involving entities under common control during the
reporting period, the opening balance of the consolidated balance sheet shall be adjusted; the revenue, expense and profit of such
subsidiaries or business from the beginning to the end of the reporting period when the merger occurs are included in the
consolidated income statement; the cash flows of such subsidiaries or business from the beginning to the end of the reporting period
when the merger occurs are included in the consolidated cash flow statement, and the comparative figures of the financial statements
should be adjusted simultaneously as if the consolidated reporting entity has been in existence since the beginning of the control by
the ultimate controlling party.
An investor that may impose control over the investee under joint control due to additional investment shall be deemed a party
participating in the combination, and shall be adjusted at current status when the ultimate controlling party begins the control. The
equity investment held before gaining the control of the combined party is recognized as relevant profit or loss, other comprehensive
income and changes in other net assets at the later of the date of acquisition of the original equity and the date when the combining
and the combined parties are under joint control, and shall be written down to the opening balance retained earnings or current profit
or loss in the comparative reporting period.
For acquisition of subsidiaries due to business combination involving entities not under common control during the reporting
period, the opening balance of consolidated balance sheet needs not be adjusted; the revenue, expense and profit of such subsidiaries
or business from the date of acquisition to the end of the reporting period are included in the consolidated income statement; the cash
flows of such subsidiaries or business from the date of acquisition to the end of the reporting period are included in the consolidated
cash flow statement.
In connection with imposing control over the investee not under joint control due to additional investment and other reasons, the
equity of acquiree held before acquisition date shall be remeasured by the Company at the fair value of such equity on the acquisition
date and the difference between fair value and carrying amount shall be recognized as investment income in current period. If the
acquiree's equity held before the acquiring date contains other comprehensive income and the other changes of owner's equity except
for net profits and losses, other comprehensive income and profit distributions under the equity method, the related other
comprehensive income and changes in other owner's equity shall be transferred to investment gains or losses on the date of
acquisition, excluding the other comprehensive income derived from changes of net liabilities or net assets due to re-measurement on
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defined benefit plan by the investee.
(2) Disposal of subsidiaries or business
① General treatment
For disposal of subsidiaries or business during the reporting period, the revenue, expense and profit of such subsidiaries or
business from the beginning of the period to the date of disposal are included in the consolidated income statement; the cash flows of
such subsidiaries or business from the beginning of the period to the date of disposal are included in the consolidated cash flow
statement.
When losing control of the investee due to partial disposal of the equity investment, or any other reasons, the remaining equity
investment is remeasured at fair value at the date in which control is lost. The sum of consideration received from disposal of equity
investment and the fair value of the remaining equity investment, net of the difference between the sum of the Company's previous
share of the subsidiary's net assets recorded from the acquisition date or combination date and the sum of goodwill, is recognized in
investment income in the period in which control is lost. Other comprehensive income or net profit and loss related to the previous
equity investment in the subsidiary, changes in equity except the other comprehensive income and profit distribution, are transferred
to investment income of the current period when losing control, except the other comprehensive income as a result of the changes
arising from the remeasurement of the net assets and net liabilities of the investee's defined benefit plan.
In the event of losing control due to a decrease in the proportion of shares held by the Company as the capital increase in
subsidiaries by other investors, the accounting treatment shall be conducted in accordance with the above principles.
② Disposal of subsidiary achieved by stages
When disposal of equity interests of subsidiaries through multiple transactions until the control is lost, generally transactions in
stages are treatment as a package deal in accounting if the transaction terms, conditions, and economic impact of disposal of the
subsidiary's equity interests comply with one or more of the following:
ⅰ. These transactions are achieved at the same time or the mutual effects on each other are considered;
ⅱ. A complete set of commercial results can be achieved with reference to the series of transactions as a whole;
ⅲ. Achieving a transaction depends on at least achieving of one of the other transaction;
ⅳ. One transaction recognized separately is not economical, but it is economical when considered together with other
transactions.
When losing control of a subsidiary in disposal of equity interests through multiple transactions is recognized as a package deals,
these transactions shall be in accounting treated as loss control of a subsidiary in disposal of equity interests achieved. However, the
differences between price on each disposal and disposal of investment on the subsidiary's net assets shall be recognized in other
comprehensive income in the consolidated financial statements, and included in profit or loss for the period when the control is lost.
If all transactions in disposal of equity interests of subsidiaries until losing control are not a package deals, accounting treatment
for partial disposal of equity investments of subsidiary without losing control shall be applied before control is lost. When the control
is lost, general accounting treatment for disposal of a subsidiary shall be used.
(3) Acquisition of minority interest of subsidiaries
The Company shall adjust the share premium in the capital reserve of the consolidated balance sheet with respect to any
difference between the long-term equity investment arising from the purchase of minority interest and the net assets attributing to the
parent company continuously calculated on the basis of the newly increased share proportion as of the acquisition date (or date of
combination) or, adjust the retained earnings if the share premium in the capital reserve is insufficient for write-down.
(4) Partial disposal of equity investment in subsidiaries without losing control
The difference between disposal consideration of long-term equity investment in subsidiaries partially disposed without losing
control and the share of net assets calculated from 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 in the event that the share
premiums in the capital reserves are not sufficient for write-down.
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7. Recognition criteria of cash and cash equivalents
In preparing the cash flow statement, the cash on hand and deposits that are available for payment at any time of the Company
are recognized as cash. The short-term (due within 3 months of the date of purchase) and highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of value change are recognized as cash
equivalents.
8. Conversion of transactions and financial statements denominated in foreign currencies
(1) Foreign currency transactions
Foreign currency transactions shall be translated into RMB at the spot exchange rate on the day when the transactions occurred.
Balance sheet date foreign currency monetary items shall be translated using the spot exchange rate at the balance sheet date.
The resulting exchange differences are recognized in profit or loss for the current period, except for those differences related to the
principal and interest on a specific-purpose borrowing denominated in foreign currency for acquisitions, construction or production
of the qualified assets, which should be capitalized as cost of the assets.
(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; owner s'
equity items other than "undistributed profit" are translated at a spot exchange rate when accrued. Revenue and expense items in the
income statement are translated at a spot exchange rate at the transaction occurrence date.
For disposal of overseas operation, the translation difference as stated in the foreign currency financial statements relating to
overseas operation, is accounted for in the profit and loss account in the current period from owners' equity items.
9. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
(1) Classification of the financial instruments
According to the business model of financial assets management of the Company and the contractual cash flow characteristics
of financial assets, the financial assets are classified at the initial recognition into: financial assets measured at amortized cost,
financial assets at fair value through other comprehensive income (debt instruments) and financial assets at fair value through profit
or loss.
Those classified into financial assets measured at amortized cost have the business model whose target is the collection of
contractual cash flow and where the contractual cash flow is only the payment of the principal and the interest based on the
outstanding principal amount; those classified into financial assets at fair value through other comprehensive income (debt
instruments) have the business model whose target is the collection of contractual cash flow as well as selling such financial assets
and where the contractual cash flow is only the payment of the principal and the interest based on the outstanding principal amount;
other financial assets other than the above are classified as financial assets at fair value through profit or loss.
For investments in non-transactional equity instruments, the Company defines it as financial assets at fair value through profit or
loss at the initial recognition; Those due later than one year since the balance sheet date and expected to be held for more than one
year are listed as other non-current financial assets. At the initial recognition, in order to eliminate or significantly reduce accounting
mismatches, financial assets can be designated as financial assets at fair value through profit or loss. For such financial assets, the
Group uses fair value for subsequent measurement, with changes in fair value recorded in profit or loss for the period.
Financial liabilities are classified at the initial recognition into: financial liabilities at fair value through profit and loss and
financial liabilities measured at amortized cost.
The financial liabilities meeting any of the following conditions can be designated as the financial liabilities at fair value
through profit and loss：
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1) Such designation can eliminate or significantly reduce accounting mismatches.
2) According to corporate risk management or investment strategies as stated in formal written documents, the management and
performance evaluation of financial liability portfolios or combinations of financial assets and financial liabilities are based on fair
value , and reported to key management personnel on this basis within the enterprise.
3) Such financial liabilities include embedded derivatives that need to be split separately.
(2) Recognition and measurement of financial instruments
① Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable, accounts receivable, other receivables, long-term
receivables, and debt investment, etc., which are initially measured at fair value, with related transaction costs included in the initial
recognition amount; The accounts receivable excluding major financing components and the accounts receivable where the company
decided not to consider the financing component of not more than one year are initially measured at the contract transaction price.
Interest calculated according to the effective interest rate during the period is recorded into profit and loss for the period.
Upon recovery or disposal of financial assets, the difference between the consideration obtained and the carrying amount is
charged to profit or loss for the period.
② Financial