2026 Semi-Annual Report

Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.12026 Semi-Annual Report ofZhejiang Dahua Technology Co., Ltd.August 15, 2026This document is a translated version of the Chinese version 2026 Semi-Annual Report (“2026 年半年度报告全文”), and the published annual report in the Chinese version shall prevail.The complete published Chinese 2026 Semi-Annual Report may be obtained at http://www.cninfo.com.cn.Full text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.2Section I Important Notes, Table of Contents, and DefinitionsThe Board of Directors, directors, and senior management of ZhejiangDahua Technology Co., Ltd. (hereinafter referred to as the "Company")hereby guarantee that the information presented in this annual reportis true, accurate, and complete, and that it contains no false records,misleading statements, or material omissions. Each shall assumeindividual and joint and several liability for the content hereof.Fu Liquan, the Company's legal representative, Xu Qiaofen, chiefaccountant, and Zhu Zhuling, person in charge of accountinginstitution (Accounting Officer) hereby declare and warrant that thefinancial statements in the semi-annual report are authentic, accurate,and complete.All directors attended the meeting of the Board of Directors fordeliberation of this semiannual report.During the reporting period, there was no significant change in therisks faced by the Company. The Company has been trying to identifyall kinds of risks and actively take countermeasures to avoid andreduce the risks.(1) Risk of technological upgrading: The intelligent Internet of Things(IoT) industry is a typical technology-intensive industry. With the rapiddevelopment of AI, the accelerated iteration of industry technologieshas become even more pronounced, and customers' scenario-basedand personalized demands are evolving rapidly as well. If theFull text of 2026 Semi-Annual Report of Zhejiang Dahua Technology Co., Ltd.3Company fails to accurately grasp the development trends of industrytechnologies, lags in its insight into the demands of market segments,or invests insufficient resources in R&D, it will face the risk ofinsufficient capacity for sustained innovation and of thecompetitiveness of its core products falling behind the market. TheCompany continues to increase its investment in R&D resources andfurther strengthens research on core technologies in fields such asmulti-dimensional perception, AI large models, cloud, big data,network communication, cybersecurity, and machine vision, whileexpanding its reserve pool of core technical talent, so as toconsolidate its long-term competitiveness across multiple dimensions– technology reserves, product pre-research, management efficiencyimprovement, and talent support – fully adapt to the broad and diversemarket demands of the future, and ensure the sustained and steadydevelopment of the Company's business.(2) Risk of business model transformation: With the development oftechnol