2021Environmental, Socialand Governance Report
DAHUATECHNOLOGY
Table of Contents
01.About This Report /01
02.Performance Summary 2021 /02
03.Statement from the Chairman /03
04.About Dahua /04
nAbout DahuanGlobal Network
nHistorynBrand Strategy
05. Building an E?cient and
Transparent Governance System/10
06. Adhering to Compliance, Integrity
and Honesty in Operation /11
nEthics and IntegritynData ProtectionnTrade CompliancenTax Compliance
nProduct Compliancen
Fair CompetitionnRisk Management
07.ESG Management /15
nSustainableDevelopment Strategies
nInterested Party
Participation
nFocus on SubstantiveIssues
08. Empowerment by Digital
Intelligence for Greatness /20
nEmpowerment byDigital Intelligence
nPublic Welfare Activities
09. Exploration of the Market Segment
for High-Quality Development /27nInnovation andResearch
nn
Cyber SecurityProfessional Serviceand Delivery for GlobalCustomers
nBuilding a Secureand Reliable ITArchitecture
10. Employee Care and Common Growth
/40
nOrganizational StructurenEmployment Overview
nHuman RightsManagement
nnn
Employee RecruitmentPerformanceManagementEmployee Care
nCompensation andWelfarenEmployee GrowthnEmployee Health andSafety Management
11. Moving Forward Together in
Harmony /44
nnnnn
Supplier ManagementHigh-quality Developmentand Continuous StableProcurementRegional Coordinationand Local PresenceGrowth of SuppliersGrowth of Distributors
nExploration of the MarketSegment and TransparentProcurement
nShared Prosperity andHarmonious Procurement
nResponsible MineralProcurement
nSupply ChainManagement
nOpen Ecosystem
12. Carbon Reduction and Green
Development /50
nInnovation-drivenApproach to GreenDevelopment
nEnvironmentalCompliance ManagementSystemnGreen ProductManagement Platform(GPM)
nEnvironmental ProtectionAssurance andCertication for Products
nPackaging MaterialManagement
nnnnn
Energy ManagementEmission ManagementHazardous ChemicalsManagementSecurity PracticesUpgraded GreenConsciousness
nWater ManagementnSolid WasteManagementnClean Technology andApplications
nSafety ManagementMonitoring System
13.Appendix /60
nAppendix 1: Enterprise HonornAppendix 2: Sustainability Reporting Guidelines(GRI Standards) Index
About This Report
This report describes the actual practice of Zhejiang Dahua Technology Co., Ltd. (hereinafterreferred to as the Company or Dahua) in fullling its social responsibilities while achieving itsdevelopment in 2021. It also details the Company's e?orts at corporate governance, integritymanagement, the protection of shareholders' rights and interests, technological innovation,environmental protection, and public welfare activities, so as to strengthen the communica-tion and connection between interested parties and the Company.
This report is made according to the Sustainability Reporting Guidelines issued by the GlobalReporting Initiative (GRI) and the Guidance on Social Responsibility (GB/T 36000), and theCompany’s actual situations.
The reporting period is January 1, 2021, through December 31, 2021, and some informationmay be beyond this scope. The report covers the information of Zhejiang Dahua TechnologyCo., Ltd. and its major subsidiaries.
Information and cases disclosed in this report are mainly from the o?cial documents, reportsand relevant open data of Dahua and its major subsidiaries. The Company's board of direc-tors is responsible for the authenticity, accuracy, and completeness of this report.
The Company's nancial statements of this year, the related documents, and the company'sstatistics. Zhejiang Dahua Technology Co., Ltd. reserves the right to interpret this report.
This report can be downloaded from the designated information disclosure website (www.cninfo.com.cn) and the website of Dahua (www.dahuatech.com). For more information be-yond this report, refer to the Company's annual report or visit the Company's website.
Basis of Preparation
Time Scope
Data Source
Data Description
Release Method
About This Report
This document is a translated version of the Chinese version 2021 Environmental, Social andGovernance Report (“2021年大华股份环境、社会及管治报告”), and the published ESG reportin the Chinese version shall prevail.The complete published Chinese 2021 Environmental, Social and Governance Report may beobtained at http://www.cninfo.com.cn.
SafeProduction
Innovationand Research
Employee Growthand Partnership
Ecosystem
Green
Operation
22000+
42.6
RMB 3.452
52.6
2600+
11334472
32.5
975000Peoplehours
Billion%
hours
pcspcs
%
%%
hours
Direct EnergyConsumption
Indirect EnergyConsumption
Total GreenhouseGas Emissions
Number of materials with RoHScertication reports
Number of accidents involving excessiveemissions and chemical spillsNumber of accidents involvingexcessive emissions of wastewater, waste gas and noise
Number of accidentsinvolving chemical spills
Controlled rate ofhazardous wastesLegal transfer rate of hazardouswaste
Number of employeesworldwideAverage sta? traininghours
R&D investment during thereporting periodGrowth rate of new intellectualproperty in the reporting period
Total dealer training hours
Number of new patents and softwarecopyrights during the reporting periodCumulative number of patents andsoftware copyrights
Coverage rate of new suppliers screenedby environmental standards
Increase in number ofemployees worldwideSafety educationcoverage
Total sta? traininghours
Recyclable wastesGrowth rate of products with ChinaEnergy Conservation Certication
1230dealersDealer trainingcoverage
1529810.89TCE
8910583.55TCE53488.55Tons of CO2
Number of products with ChinaEnergy Conservation Certication
pcs
95520pcs
%
%
Ton
%
Coverage of material REACH SVHC information declaration conrmation
%
Performance Summary 2021Performance Summary 2021
During the reporting period, the Company continued to increase the investment in R&D with customer demand
as the guide and technological innovation as the drive, to provide the foundation for the long-term sustainable
and steady development of the Company. The Company continued to promote management reform, balance the
improvement of protability while maintaining steady growth of scale, further realize value creation and win-win
results for multiple sides, and constantly create returns for interested parties.
Direct Economic Value
Total amount:
RMB 32.835 billionGrowth: 24.07%
Cash DividendsTotal amount:
RMB 809 millionCash dividends rate: 23.93%
Tax RevenueTotal amount:
RMB 1.204 billion
Statement from the Chairman
prohibition of straw burning in rural areas, pollution management of high-emission organizations, prohibition ofshing in the Yangtze River and other environmental protection actions, thus helping achieve the goals of carbonpeak and carbon neutrality through smart power solutions. We provided more e?ective products and solutions forurban digital innovation and enterprise digital intelligence transformation, so as to o?er Dahua solutions for a bet-ter life.In the past year, we have devoted to e?cient innovation and high-quality development, and released the strategyof “Dahua Think #Internet of Things for a Future of Digital Intelligence”. By positioning ourselves as the video-cen-tric smart IoT solution and service provider, and exploring the two major technical directions of AIOT and the IoTdigital intelligence platforms, we aim to empower countless industries and drive the digital intelligence transforma-tion of cities, enterprises and families. We strengthened collaborations with partners in the global industrial chain,and optimized our global business planning of sales, service and supply chain to forge more comprehensive andopen ecological partnerships.In the past year, Dahua continuously optimized the system and capabilities of corporate governance. We adheredto keeping compliance with the integrity operation, improved the internal system, and fully integrated compliancemanagement into all aspects of Dahua's planning, operation and management. We have adopted a people-orient-ed approach, taken care of our employees, and embarked on a journey towards shared prosperity, thus promotingthe construction of an ecosystem featuring common development of all employees through our continuous e?ortsin the fulfillment of career development, income growth, welfare and job satisfaction improvement, and socialresponsibility practice for all employees. We have adhered to the responsibility of protecting the environment, ad-vocated green intelligent IoT, led the innovative development of environmental protection, applied environmentalprotection requirements in R&D, manufacturing and IoT solutions, and practiced green manufacturing and greendevelopment.In 2022, we will transform ourselves through digital intelligence, lead the sustainable development of the industry,increase investment in R&D, and strengthen the "5 Full" capabilities including Full Sensing, Full Intelligence, FullConnection, Full Computing, and Full Ecosystem. We will use digital technology to empower numerous industries,create great value for customers, partners and society, and strive to make more contributions to social and eco-nomic development as well as environmental protection.We must spare no e?ort and make every moment count as we embark on a new journey and aim for a greater fu-ture with our practical e?orts. We look forward to a better year of 2022.
Chairman and President:
Statement from the Chairman
2021 marks the 20th anniversary of Dahua’s entry into the videoindustry. The past 20 years is a period of rapid compound growthfor Dahua. We have established a global network for sales andservice to quickly deliver end-to-end video-centric smart IoT solu-tions, products and services for 180 countries and regions. Wehave continued to integrate social responsibility into Dahua's long-term development, actively fulfilled our social responsibility andvigorously innovated green technology, and strived for sustainable,green and high-quality economic and social development.In the past year, in the face of a complex external environment in-cluding the global pandemic, short supply of key components suchas chips, and sharp uctuations in commodity prices and exchangerates, we have been committed to the mission of "Enabling a safersociety and smarter living", fullled our duties and made continu-ous efforts. With key information technologies such as software,big data, artificial intelligence and AIOT, we helped prevent andcontrol the global pandemic, reduce urban traffic accidents andpersonal and property losses, protect the ecological environment,and improve the efficiency of green energy such as photovoltaicpower and wind power. We assisted in prevention of forest fire,
employees
22000
countries and regions
domestic and overseas branches
domestic offices
6400patents
NO.2
*
global market share
Zhejiang Dahua Technology Co., Ltd. is a world-leading vid-eo-centric smart IoT solutions and service provider. Beingcommitted to technological innovation, Dahua focuses on twocore businesses of cities and enterprises. By constantly im-proving its capabilities in AIOT and the IoT digital intelligenceplatform, Dahua promotes the upgrade of cities and enterpris-es in an all-round way through digital intelligence based oncustomer needs, and provides one-stop smart IoT servicesand solutions for cities, enterprises and families.The Company has more than 22,000 employees, over 50% ofwhich are engaged in R&D. Around 10% of its sales revenueis invested in R&D each year. It has been making continu-ous e?orts in technological innovation. Currently, Dahua hasestablished the Advanced Technology Research Institute,Big Data Institute, Central Institute, Cyber Security ResearchInstitute, and Smart City Institute. Based on the insight intothe smart IoT and the relevant planning, Dahua continuouslyexplores new business opportunities, extending its businessscope to machine vision, robots, collaboration through videos,smart fire protection, automotive electronics, smart storage,smart security check, smart display control, and smart control,among others.* Data source: The 2021 Global Intelligent Video Surveillance Market Information Service Report released by OMDIA, a market research organization
About DahuaAbout Dahua
About Dahua
Global NetworkDahua has a global marketing and service network with 57 domestic and overseas branches in Asia, North Ameri-ca, South America, Europe, Africa and Oceania, and more than 200 o?ces in China to provide fast and high-qual-ity services to customers. Dahua products are available in over 180 countries and regions around the world. Theyare widely applied to multiple elds such as tra?c, manufacturing, education, energy, nance and environmentprotection to enable a safer society and smarter living.
Manufacturing and supply centerResearch center
manufacturing and supply centers
continents coveredAsia, Europe, Africa, North America,South America, Oceania
research centers
Hangzhou (China), Xi'an (China),Chengdu (China), Poland, Mexico
global service outletsHangzhou (China), Hong Kong (China),Russia, Poland, Dubai, India, Indonesia,South Africa, the United States, Brazil,Mexico, etc.
About Dahua
Global Network
Hangzhou (China), Changsha (China),India, Vietnam
History
Invented the 8-channel audio-videosynchronization embedded DVR andcreated the No.1 brand of embedded DVR
Launched the technology of"Hardware-like Software Platforms",making large-scale deploymentand maintenance easy
2001
Established ZhejiangDahua Technology Co., Ltd.and entered the videosurveillance industry
2002
2003
Expanded overseas businesses
2007
Launched the intelligent all-in-onetransportation solution,the records of whichbecame the de facto standardadopted by China's electronic police
2008
Listed on the Shenzhen Stock Exchangeon May 20
2010
2012
2014Introduced the independentlydeveloped HDCVI technology, whichwas subsequently adopted by theHDCCTV Alliance and became thefirst international standard in thedomestic security industry
Introduced the IT common cloud technologySet up the Imou (formerly Lechange)brand to enter the civilian videosurveillance marketEstablished the first overseas branchin the United States
2013
Introduced the CMOS technologyand launched the high-definitionhigh-magnification cameraEstablished the first post-doctoralmobile station in China's securityindustryEstablished Zhejiang Dahua SecurityNetwork Operation Service Co., Ltd.
About Dahua
History
The ultra-high precision thermal imaging bodytemperature measurement solution was launchedin a week to facilitate pandemic prevention and control.Built 8 domestic regional software development centersto accelerate regional application of softwareDahua Intelligence (IoT) Industrial Parkwas put into use
Launched Dahua Heart of City,a new smart city architectureLaunched the European Supply Center
Released the AIOT and SDTV strategiesLaunched the GAIA big data platform
2016
2017
2018
2019
FUTURE
Obtained the CMMI5 certification,thus establishing the company's globalleading position in software development
Provide video-centric smart IoT solutions and
services to facilitate digital innovation of citiesand digital intelligence transformation of enterprises
Released the brand-newDahua Think# Strategy
2020
2021
Internet of Thingsfor a Future of Digital Intelligence
About Dahua
History
In October 2021, Dahua released the brand-new Dahua Think# strategy. With 20 years of experience in technology and persistence in the in-dustry, Dahua has adhered to its strategic positioning as a video-centric smart IoT solution and service provider, and focused on the strategiesfor two major businesses of cities and enterprises and the two major technical areas of AIOT and the IoT digital intelligence platform. It hascontinuously consolidated the foundation of its "5 Full" capabilities that include Full Sensing, Full Intelligence, Full Connection, Full Computing,and Full Ecosystem to provide the value of smart IoT. Together with its partners, Dahua aims to create a collaborative and mutually benecialsmart IoT ecosystem community. While enabling digital innovation of cities and digital intelligence transformation of enterprises, Dahua has alsopromoted the sustainable, green, and high-quality economic and social development.
Focusing on Strategies of TwoBusinesses of Cities and Enterprises
Brand Strategy
About Dahua
Brand Strategy
Innovated Businesses
Machine Vision
and RobotsSmart LivingCollaborationthrough videosSmart FireProtectionSmart StorageAutomotiveelectronicsSmart Security
Check……
Full Ecosystem
ServiceEcosystemBusinessEcosystemSoftwareEcosystemAlgorithmEcosystemHardwareEcosystem
……
| 2021年10月，公司全新升级发布Dahua Think#战略，依托大华股份20年的技术积累与行业沉淀，坚持以视频为核心的智慧物联解決方案提供商与运营服务商战略定位，聚焦城市、企业两大业务战略，坚定AIOT、物联数智平台两大技术战略，夯实全感知、全智能、全连接、全计算、全生态“五全”数智能力基座，释放智慧物联价值，聚联合作伙伴，打造共建、共赢、共生的智慧物联生态共同体，赋能城市数字化创新与企业数智化转型，助力经济社会可持续、绿色、高质量发展。 | |||||||||||
| IoT Digital Intelligence Platform | |||||||||||
| AloT | |||||||||||
| Full Sensing | Full Intelligence | Full Connection | Full Computing | ||||||||
City
Enterprise
Internet of Things for a Future of Digital Intelligence
...
Enterprise
Safety Operation
Energy Saving andEfficiency Improvement
Cost Reduction andProduction Increase
EpidemicPrevention
Regulation and
Management
Explore the market segment, enable business innovation,and facilitate the digital intelligence transformation of enterprises
| 3000+ business scenarios, 300+ industry solutions, 1000+ business componentsBuildingManufacturingAgricultureLogisticsFinanceElectricitySteelPetrochemistryCoalHealthcareEducationCulture & TourismRetail... | ||||||
...
City
Disaster Prevention
and Relief
Efficient ManagementPreventionEnvironment Protection...Public service
Empowered by digital intelligence to build a new ecosystem of "unity, compatibility,
sharing and openness" and to promote digital transformation
| Public Security | Governance Efficiency Improvement | Orderly Urban Management | Green Development for the Benefit of People | |||
5000+ scenarios, 200+ industry solutions, 800+ business components
TransportationUrbanGovernanceEmergencyRailwayAviation
TrafficControl
EnvironmentProtection
Agricultureand Rural Area
WaterConservancyPortCommunity
Internet of Things for a Future of Digital Intelligence
Focusing on Strategies of TwoBusinesses of Cities and Enterprises
Brand Strategy
About Dahua
Brand Strategy
Adhering to Two Technical Strategies of AIOT and the IoTDigital Intelligence Platform
...
Enterprise
Safety Operation
Energy Saving andEfficiency Improvement
Cost Reduction andProduction Increase
EpidemicPrevention
Regulation andManagement
Explore the market segment, enable business innovation,and facilitate the digital intelligence transformation of enterprises
| Security System Optimization | Production Efficiency Improvement | Operation Management Facilitation |
3000+ business scenarios, 300+ industry solutions, 1000+ business componentsBuildingManufacturingAgricultureLogisticsFinanceElectricitySteelPetrochemistryCoalHealthcareEducation
Culture &Tourism
Retail
...
| 5000+ scenarios, 200+ industry solutions, 800+ business componentsTransportationUrban GovernanceEmergencyRailwayAviationTraffic ControlEnvironment ProtectionAgriculture and Rural AreaWater ConservancyPortCommunity聚焦城市、企业两大业务战略 | ||||||||
坚定AIOT、物联数智平台两大技术战略
Accumulate the coretechnologies and industryparadigms of video IoT toempower thousands ofindustries to realize digitalintelligence transformation
IOT DIGITALINTELLIGENCEPLATFORM
Build leading capabilities ofsensing, connection, edgecomputing and controlinteractions to create a worldof digital intelligence
AIOT
Multidimensional
AwarenessSensingDimen-sionUpgradeEnviron-
mentAdapta-
tionMultidi-mension-al Fusion
Multi-endConnection
ChannelUpgrade
SecurityReinforcement
Smart Computing
EdgeComputing
High-densityStorage
ControlInteractionsCashlessTollCollec-tionRemoteInterac-tionPreciseReach
City EnterpriseOnline Data
SensingaccessVideo IoT
Smart Monitoring
DispatchCenterAlgorithmLibrary
Training
Engine
Smart Data
One-stopEngine
Heteroge-neousDataFusion
Full-pro-cessIntelli-gence
BusinessEmpowermentModular-izationIntelli-genceTransfor-mationCoopera-
tion &Open-nessTask Coordination
Computing Power
Coordination
Data CoordinationBusiness Coordination
| Internet of Things for a Future of Digital Intelligence |
Collection
asrequired
Dahua strictly follows the Company Law of the People's Republicof China, the Securities Law of the People's Republic of China, theCode of Corporate Governance for Listed Companies in China,the Rules Governing the Listing of Shares on Shenzhen StockExchange and other relevant laws and regulations and regulatorydocuments of regulatory authorities to establish a mutually inde-pendent governance structure with checks and balances featuringshareholders’ meeting, board of directors, board of supervisorsand management. Each party fullls its obligation and shouldersits responsibility to ensure the regulated operation of Dahua.The board of directors has four professional committees to assistthe board of directors in performing decision-making and monitor-ing functions in terms of strategic decision-making, nomination,compensation and assessment, and audit. Dahua has also em-ployed independent directors to participate in decision-making andsupervision, reinforcing the objective and scientic decision-mak-ing by the board of directors.
Board ofSupervisors
Board ofDirectors
AuditCommitteeStrategyCommitteeNominationCommitteeRemunerationand AppraisalCommitteeSeniorManagement
ShareholdersMeeting
Build an Efcient and Transparent Governance System
Corporate Governance
Shareholders?and?shareholders?meeting: The?Company?stan-dardizes?the?calling,?convening,?and?voting?procedures?in accor-dance with?the?regulations?and?requirements?of?the? RegulatoryOpinions for the General Assemblies of Shareholders of ListedCompanies,?the?Articles?of?Association?and?the?Rules?of?Proce-dures?of?the?Shareholders?General?Meeting.?Associated?share-holders?shall?avoid?voting?when?relevant?issues?are?being?dis-cussed?during?these?meetings,?and?connected?transactions?areensured to be?fair?and?rational?without?harming?the?inter-ests?of?shareholders. Treat all shareholders equally to ensure thatshareholders, especially minority shareholders, can fully exercisetheir rights. The general meetings of shareholders are convened bythe Company’s board of directors and witnessed by the lawyer.Company and controlling shareholders: The?Company?is?in-dependent?from?its controlling?shareholders?in?terms?of?busi-ness,?personnel,?assets,?finance?and?organizations.?TheCompany's?board?of?directors,?board?of?supervisors?and?other?in-ternal?institutions?operate?independently. The controlling share-holders of the Company are able to strictly regulate their behaviors,without any behavior that directly or indirectly interfere with theCompany's decision-making and business activities beyond theirgeneral meetings, or any non-operational behavior of appropriationof the capital of listed Companies.Directors and board of directors: The Company currently hasseven directors, including three independent directors, all ofwhom are experts in elds such as corporate management andnancial accounting. The number and composition of the boardof directors meet the requirements of relevant laws and regu-lations and the Articles of Association. The Board of Directorsconvenes board meetings and implements the resolutions of theshareholders' meeting in strict accordance with the Articles of As-
sociation and the Rules of Procedure of the Board of Directors;all the directors are able to perform their due duties and consci-entiously attend the Board meetings and shareholders' meetingsto safeguard the legitimate rights and interests of the Companyand shareholders.Supervisors and the board of supervisors: The Company cur-rently has three supervisors, including two employee supervisors.The number and composition of the board of supervisors meetthe requirements of relevant laws and regulations and the Arti-cles of Association. The board of supervisors convenes supervi-sor meetings in strict accordance with the Articles of Associationand the Rules of Procedure of the Board of Supervisors. All thesupervisors perform their duties conscientiously, and e?ectivelysupervise and express independent opinions on the legitimacyand compliance of the performance of the corporate finance,directors and senior managers in an integral, diligent and consci-entious manner, to safeguard the legitimate rights and interestsof the Company and shareholders.Specic members of the committees under the board of di-rectors:
Audit Committee: Liu Hanlin (convener), Cao Yanlong, andChen Ailing; mainly responsible for communication, supervisionand verication of internal and external audits of the Company.Nomination Committee: Cao Yanlong (convener), Liu Hanlin,and Fu Liquan; mainly responsible for selecting and making sug-gestions on candidates, selection criteria and procedures for theboard directors and managers of the Company.Remuneration and Appraisal Committee: Zhang Yuli (con-vener), Liu Hanlin, and Zhang Xingming; mainly responsible forstudying and reviewing the remuneration policies and plans ofthe board directors and management of the Company, as well asformulating remuneration policies with regard to the establish-ment of formal and transparent procedures.Strategy Committee: Fu Liquan (convener), Zhang Yuli, WuJun, and Zhang Xingming; mainly responsible for conductingresearch and making suggestions on the Company’s long-termdevelopment strategy and major investment decisions.During the report period, the Company adopts a variety of meet-ing forms to ensure the smooth convening of the three importantmeetings, and actively encourage its directors, supervisors andsenior managers to fully perform their duties. In 2021, the Com-pany organized 18 board meetings, 11 supervisors meetings and4 shareholders meetings to strengthen the awareness of internalinformation disclosure compliance, with focus on matters suchas foreign investment, related transactions, external guarantees,and external nancial assistance, among othersDuring the report period, the independent directors of the Com-pany look closely at corporate operations and perform their dutiesindependently in accordance with relevant rules, laws and reg-ulations, proposing many professional opinions on the improve-ment of the corporate system and daily operation decisions, andthus playing their due role in perfecting the corporate supervisorymechanism and safeguarding the interests of the Company andshareholders, especially those of public stocks.For more information pertaining corporate governance, see the"Corporate Governance" section of the 2021 Annual Report.
Build an E?cient and Transparent Governance System
Corporate Governance
2. Business Compliance Group
1) Formulate the overall objectives and work plans of the business sec-
tor, and promote the implementation of the business compliance work ofthe sector;
2) Cooperate with each Special Compliance Group to achieve objectives
in the business sector, so as to ensure the e?ective implementation ofvarious compliance plans and measures;
3) Collect and solve business compliance issues in the business sector
in a timely manner; For any problem that dees solutions, cooperate witheach Special Compliance Group to push for solutions. For any problemthat still cannot be addressed, report it to the Company's Ethics Com-pliance Management Committee for decision-making after making clearsuggestions on the problem.Operation Mechanism of Ethics Compliance Manage-ment Organization:
1. Convene quarterly meeting of the Ethics Compliance Management
Committee to review the periodic plan and implementation of ethics com-pliance operation management, and make decisions on major issues ofethics compliance operation management; in the case of urgent or sud-den problems, convene special meetings as needed;
2. Each group of the Ethics Compliance Operation Management Execu-
tive Body shall hold monthly operation meetings to manage the periodicplan and implementation of each module’s ethics compliance operationmanagement work; if problems are beyond the scope of authority or defyjudgments, and thus it is impossible to make decisions, submit relevantmatters to the Ethics Compliance Management Committee for delibera-tion and decision-making in a timely manner as needed.Dahua requires all employees to be fully aware of compliance, ensuresthat employees at all levels are well informed of and adhere to compli-ance requirements through publicity and training, and sign the corre-sponding commitment documents. The Company regularly reviews thecompliance status of its internal staff, and shall seriously handle anyviolations in accordance with the regulations.
Ethics and Integrity
Adhere to Compliant Integrity Operation
Responsibilities of the Ethics ComplianceManagement Committee:
1. Formulate the overall requirements, management strat-
egies and organizational forms of the Company's corpo-rate ethics compliance management;
2. Review the operation plans of each Ethical Compliance
Management Executive Body based on the Company'soverall requirements for ethics compliance management,and periodically review the implementation of these plans;
3. Other major decisions concerning the Company’s cor-
porate ethics compliance.
Responsibilities of the Ethics ComplianceOperation Management Executive Body:
1. Special Compliance Group
1). Formulate operation plans for corresponding modules
based on the Company's ethics compliance managementrequirements, and submit them to the Ethics ComplianceManagement Committee for review;
2) Work towards the ethics compliance operation objectives
of the corresponding module, recruit professionals andimprove capabilities in the eld, establish systematic man-agement and regulation standards, coordinate the effortsof di?erent executive departments and compliance groups,rene the plan and promote the implementation of the plan;
3) Regularly carry out special audits in the eld and pro-
mote the improvement of the auditing work;
4) Regularly report progress to the Ethics Compliance
Management Committee;
5) Collect and solve compliance problems in this module
in a timely manner. For any problem that dees solutions,report it to the Company's Ethics Compliance Manage-ment Committee for decision-making after making clearsuggestions on the problem.
Honest Dahua: Clean Administration Month
Dahua adheres to the principle of “honesty for success” and iscommitted to strict business code of conduct and ethics rules,aiming at building a transparent, fair, equal, honest and trust-worthy business cooperation environment for our employees,suppliers and customers. Dahua believes that corruption is themost serious injustice to hardworking employees. Therefore, Da-hua attaches great importance to the enrichment of employees’spiritual well-being while actively leading employees at all levelsto improve their material well-being. Since 2017, Dahua has reg-ularly carried out honesty and integrity training for new employ-ees and employees at key positions every month. In addition,Dahua joined the Trust and Integrity Enterprise Alliance in 2019to jointly resist corruption with other members of the Alliance.In 2021, Dahua further strengthened the development of cleanadministration, launching the first Clean Administration Monthcampaign with the theme of “Understanding responsibility, tak-ing responsibility and performing responsibility”. The campaignincluded commitment signature on the wall, clean administra-tion case study seminars and quizzes, which have been widelypraised by employees from all regions and levels.
Build an E?cient and Transparent Governance System
Ethics and Integrity
As a global commercial entity, Dahua Technology has always practiced legal and compliant operations with strict adherence to the Codeof Conduct, market discipline and international rules In order to further enhance the Company's competitiveness in the global businessexpansion, the Company continues to guarantee the high-quality and steady growth of the Company’s performance. the Ethics Compli-ance Management Organization is composed of the Ethics Compliance Management Committee and the Ethics Compliance OperationManagement Executive Body. The Executive Body consists of the Special Compliance Group and Business Compliance Group.
The Company pays great attention to data security and privacy protection and takes it as one of ourguiding principles. Since the promulgation of the Cyber Security Law of the People's Republic of China,the GB/T 35273 Information Security Technology - Personal Information Security Specication, the EU’sGeneral Data Protection Regulation (GDPR), and other laws and regulations, the Company has madeactive responses by setting up a special cyber security and data protection team to pay close attentionto the global data protection laws and regulations, formulating pragmatic compliance strategies, conduct-ing comprehensive compliance audits, and strictly following the requirements of laws and regulations. Inaddition, the Company has collaborated with third-party authorities to introduce external evaluation andcertication, and has passed the German T?V Rheinland privacy protection certication for IoT products,IoT service privacy protection certication, ISO27701 privacy information management system certicationand ISO27018 cloud privacy protection certication.During the reporting period, with the e?ective of the Data Security Law of the People's Republic of Chinaand the Personal Information Protection Law of the People's Republic of China, in order to further improvethe data protection of products and services and better help customers achieve compliance, the SpecialCompliance Group has updated the Personal Data and Privacy Protection Code according to product priva-cy requirements, privacy design principles, and the latest laws and regulations. The Company introduces aprivacy baseline in the product requirement validation and design phase, adopts business-friendly protectionmeasures throughout the entire life cycle of the product including data collection, transmission, storage, useand deletion, and continues to practice the principles of Privacy by Design and Privacy by Default by takinginto account the user experience features such as privacy policies and privacy-friendly settings.In July 2021, Cloud Dahua passed the Trusted Cloud Service (TRUCS) certication with its continuouse?orts in the development of data security protection and security management throughout the entire lifecycle of data, which represents that Cloud Dahua has met all certication requirements including datasecurity, service continuity and user rights protection. This is an important basis for customers to chooseCloud Dahua as their provider of secure and trusted cloud services.
To create an environment where it is impossible for employeesto be corrupted, the Company has periodically revised normativeguidelines including the Eight Provisions on the Work Style ofDahua Cadres, the Code of Conduct, the Anti-Fraud System, theAdministrative Measures for Reporting Corrupt Practices, the Ad-ministrative Measures for Employees' Acceptance of Gifts, Gratu-ities, and Other Coupons (Cards), the Administrative Measures forRewards and Punishments, the Administrative Measures for Con-dentiality, and the Employee Handbook. In 2021, Dahua updatedand re-published the Notice on Rewards for Real-Name Report-ing, which reiterated that corruption is the bottom-line mistake that
the Company cannot tolerate. The Company will never be soft oncorruption at any time, and it will continue to improve the policiesand processes while building an internal accountability system,and work with all employees to defend honesty, transparency andintegrity which consists of the cornerstone of the Company. Thenotice explicitly encourages embezzlement reporting:
(1) If the complaint information is incorrect, the Company will
clarify the issue and will not hold any party responsible;
(2) In the case of real-name reporting, if the complaint informa-
tion is proved true after investigation, and thus plays an importantrole in cracking the case, helps recovering or reducing the Com-pany’s economic losses, or makes other substantial contributionsto the Company, the Company will give rewards according to theNotice on Rewards for Real-Name Reporting.In 2021, Dahua set up an official WeChat account reportingchannel in addition to the reporting mailbox and hotline, to makeit more convenient for interest impaired parties to le complaintsand safeguard the Company's reputation of “Honest Dahua” withall sectors of society.Complaint and Reporting Channel:
Official WeChat Account: Fanghua Society - Honest Dahua -Complaint and Reporting ChannelEmail: jbrx@dahuatech.comTel: 86-0571-28816326Under no circumstances will Dahua allow any retaliation againstany reporter who, in good faith, believes that certain actionsmay violate applicable laws, rules and regulations. Any superioror other employee who threatens or impose sanctions on anyreporter will be subject to penalties including disciplinary actionand even dismissal.
Build an E?cient and Transparent Governance System
Data Protection/Trade Compliance
Before major public holidays, Dahua sends a “Integrity Festival”reminder and relevant management rules to all employees, andclearly informs the o?cial reporting channel and complaint chan-nel for corruption; also, following the publication of the Anti-Cor-ruption Case Compilation, in 2021 Dahua released the "CleanAdministration Comic" which has a wide audience to make em-ployees unwilling to be corrupted in daily work.
Honesty Reminder & Comic
Data Protection
Trade Compliance
The Company complies with relevant laws and regulations of China, the United Nations, the United States and the European Union. ATrade Compliance Group has been set up under the Ethics Compliance Management Committee to formulate the overall strategy of theCompany's trade compliance, as well as establish and improve the compliance policies and processes. Through early risk managementand management compliance, the Company promotes the implementation of trade compliance requirements in various business areasto ensure the all-round implementation of trade compliance policies and control processes in the Company.
Build an E?cient and Transparent Governance System
Tax Compliance
Product Compliance
Fair Competition
Tax compliance refers to the conformity of operation and man-agement behaviors of enterprises and their employees to thelaws, regulations and regulations on taxation. The Company’stax department focuses on establishing a standardized globaltax compliance system for the Company's global business op-erations, and on the overall management of tax risks. In orderto effectively achieve compliance with tax requirements, theCompany has carried out corresponding process development,including the standardization and formation of a fixed processof tax calculation templates, and the documentation of daily taxwork operation manuals and procedures. The relevant informa-tion system construction is also being continuously optimized,including the global tax platform, related transaction pricing sys-
Product compliance management is coordinated and managedby the Product Compliance Unit, which is responsible for for-mulating the overall product compliance strategy, establishingand improving product compliance mechanisms and process-es, building an internal cross-department product compliancemanagement platform, promoting the implementation of productcompliance requirements in various business lines, and realizingvisual and controllable product compliance management. Prod-uct compliance requirements run through the entire product lifecycle. The requirements of product compliance are met in everystage from the initial stage of product demand validation; in theproduct design, testing and verification stage, product compli-ance standards and laws and regulations are introduced, andproduct compliance requirements are integrated into businessprocesses and specications; in the stage of product manufac-turing, inspection and testing are strictly conducted in accor-
Advocating fair competition and fair trade, Dahua always seeksfair and honest competition, and persists in developing its com-petitive edge through quality products and services rather thanunethical or illegal business practices. The Company continuesto pay attention to the developments of the legislation, lawenforcement and administration of justice related to monopolyand unfair competition in the jurisdictions where it operates itsbusiness. In addition, Dahua regularly reviews and evaluatesthe compliance of its own competition behavior and businessoperations, and actively formulates and updates enterprise com-pliance policies including the Code of Conduct. In foreign invest-
tem, reconciliation system, and invoicing system, to ensure thetax process implementation and continuous update are in placeaccording to regulations. Meanwhile, by establishing and improv-ing our electronic file management system, the Company hase?ectively managed tax compliance-related documents to meetcompliance requirements. In addition, the Company regularly ex-amines tax risks and continuously follows up on their resolution.The Company e?ectively responds to and manages all kinds oftax disputes that may occur globally. In response to the complex-ity and distinctiveness of compliance in each country and region,the Company has set up a special team to build the top-levelcompliance framework in a dedicated form so as to graduallyrealize the improvement of the global tax compliance system.
dance with product compliance requirements; when the productor the standard is changed after the product is certied, producttesting reports and certifications, among other qualifications,are updated as required in accordance with compliance require-ments to ensure the consistency of mass-produced productsand certied products, as well as the validity of testing reportsand certications. In the process of product sales, the Companysells products in strict compliance with national laws and regula-tions. Dahua not only pays attention to the product complianceof its own brand, but also attends to the product complianceof its suppliers and customers, with corresponding certicationprocesses and specications issued to achieve all-round productcompliance control. The implementation of these key measureshas provided strong guarantee for the compliance of Dahua'sproduct sales in the global market.
ment projects, compliance review obligations are performed instrict accordance with local laws and regulations. The Companycontinues to introduce high-quality external law rm resources athome and abroad, and organizes various departments to carryout compliance training on anti-monopoly and anti-unfair com-petition according to the opinions and guidance of professionallawyers, so as to keep improving employees’ awareness offairness and honest competition, create a stronger complianceculture featuring opposition to monopoly and unfair competition,and continue to strengthen the organization's systematic abilityto prevent and handle relevant compliance risks.
During the reporting period, we continued to improve the Com-pany's trade compliance system, and follow up on the tradecompliance regulations, policies, and law enforcement cases ofvarious countries. Under the guidance of relevant professionalorganizations and other external resources, we have releasedthe updated Dahua Export Control Compliance Manual 2.0 andthe export control compliance operation guidelines for businessdepartments such as R&D, supply chain and sales, integratingcompliance management requirements into every stage of theCompany's production and operation management.Based on the factors such as items, end users, destination coun-tries/regions, and end purposes, the Company has set up com-pliance control points in the business process for implementationthrough informatization and digitization, and optimized the identi-cation and management of trade compliance risks in all stages ofthe business process including R&D, procurement, sales, delivery
and service to ensure information security and automatic control.During the reporting period, through regular inspection by thetrade compliance team, self-inspection by each business de-partment and annual audit by the internal audit department, weensured the implementation of the Company's trade compliancegovernance requirements and compliance control points, andperformed targeted optimization and update of internal policiesto promote the continuous improvement of the trade compliancesystem.At the same time, we have actively carried out compliancetraining and strengthened employees' compliance awarenessthrough training for all employees and targeted training of rele-vant departments. We have enabled compliance personnel ineach department to be familiar with compliance policies and re-quirements, as well as control measures and operations to carryout compliance work more e?ectively.
Tax Compliance/Product Compliance/Fair Competition
Table Risk Management ProcessManagementProcess
Main Content
Foundationbuilding
Riskassessment
? The Company has set up risk control groups such as the Strategic Decision-making Committee, the Audit Committee, the Information Security Committee, theSafety Production Committee, the Compliance Committee, and the Corporate Pandemic Containment Team;? The Company has set up a model of three lines of defense against risks (business department, internal control department, and internal audit department) tobuild a risk-oriented internal control framework;? The main business functions at the corporate level and branches and subsidiaries designate department-level contact persons for internal control.
? Based on the risk database, through the introduction of various sources of risk information such as regulatory tips, industry risks, research, audit ndings, andfeedback from managers, evaluate the likelihood of risk events, the degree of impact caused, and the vulnerability of countermeasures in terms of risk level, andthen conduct an overall evaluation by combining the major risk categories to achieve comprehensive risk analysis and evaluation.
Risk identi-cation
Riskresponse
? Identify and review risks at the corporate level, branches and subsidiaries through interviews, special reports on internal audits, special surveys on related is-sues, reviews of major issues and special surveys on key control points in various elds, among others. Build and continuously enrich the risk database of eachbusiness segment and department in line with the actual situation, and chart the risk map.Meanwhile, constantly and dynamically identify the dynamic changesof risks according to the latest business adjustments and planning.
? Determine response strategies to risks based on risk assessment results, including risk reporting, risk undertaking, risk avoidance, risk mitigation, and risktransfer strategies, specically:
? Risk response compliance: Consolidate internal control management support in accordance with the internal control requirements for companies listed on theShenzhen Stock Exchange;? Scenario-based risk response: Conduct in-depth assessment of processes and internal controls in high-risk areas such as marketing, delivery, and procure-ment, and adopt di?erent risk management models for di?erent business scenarios;? Risk response by levels: Promote the review of high-risk matters in various elds, and gradually establish a hierarchical and graded authorization mechanism,with clear authorized details at each level, and clear approval and authorization procedures for each matter, to achieve the matching of authority and responsibili-ty, reduce ambiguity, optimize the distribution of power, enable senior management to direct energy on the management capability development of the Company,and balance operational risks and development e?ciency;? Risk response specialization: For high-risk business, establish company-level and department-level internal control specialization to closely and e?ectivelyintegrate internal control with business processes to avoid or reduce the occurrence of risks.RiskmonitoringReportingmechanism
? A risk monitoring mechanism is established to routinely monitor and check the response to risks and ensure that the outcomes of risk response are guaranteedboth in the design of response plans and in their implementation.For example, the risk response is monitored through the review of matters such as large receiv-ables, large inventory losses, and large returns.? Regular training on risk awareness and capability: Strengthen the awareness of internal risk control through the sharing of classic cases, special training, andthe establishment of internal control risk mailboxes to form an atmosphere of consistent emphasis on internal control, so that every employee understands andconsciously participates in internal control;? Reporting mechanism: In order to better manage risks, a risk reporting mechanism is established in the form of regular routine reports, special risk reports, andmajor risk/emergency risk reports, to reect the substantive risk status faced by the operation and management of each branch, subsidiary, and department in acomprehensive, timely, and objective manner during the reporting period.
The Company emphasizes the cultivation of risk awareness and regularly organizes risk management training for all departments, so asto strengthen the Company's risk warning and handling capabilities and develop the risk control awareness among all sta?.
Risk Management
Cultural System
Risk Manage-ment Function
Architecture
SystemRisk Management
MonitoringAppraisal System
Risk ManagementInformation System
Internal Control
Systems
The third line of defenseThe second line of defenseThe rst line of defense
Foundation
Building
Risk
Response
Risk Identi-cationReportingMechanism
Risk
AssessmentRisk
Monitoring
EnterpriseDevelopmentStrategic
Target
Figure Risk Management Framework
Build an E?cient and Transparent Governance System
Risk Management
Risk Management
Based on the COSO-ERM framework and BCM businesscontinuity management system, the Company has estab-lished a "risk-oriented, system-based, process-bonded,control-enabled, and IT-supported" risk managementsystem framework (see the gure on the right) to provideexcellent support for the realization of corporate strategies.Through identifying risks and evaluating their levels in termsof severity, likelihood and effectiveness of existing mea-sures, we improve the hierarchical decision-making autho-rization system according to the acceptable level of risks,establish or optimize systems and processes, promote theIT-supported processes and other control activities, and es-tablish process systems (see the table below) such as theRisk Assessment Management Procedures, the Operation-al Guidelines for the Company's External Guarantees, theInternal Operational Guidelines for the Company's ExternalFinancial Assistance, the Contract Management Measures,the Risk Management Process, and the Response Mecha-nism for Handling Major Accidents, to comprehensively ad-dress the internal and external risks that may be foreseenin production and operation activities.
As a world-leading video-centric smart IoT solutions and service provider, Dahua is committed to bringing excellent technical services toevery corner of the world and to building a green, Eco-friendly, safe, and smart world. It aims to create greater value for customers andplay a greater role in the sustainable development of society. These are captured by our mission of “Enabling a safer society and smarterliving" that it advocates and makes great e?ort to realize.Dahua fully integrates sustainable development into its overall development strategy. In September 2015, world leaders adopted the2030 Agenda for Sustainable Development at the United Nations Summit. The agenda includes 17 sustainable development goals,which came into e?ect on January 1, 2016. According to its sustainable development strategies, Dahua has developed detailed actionplans based on the 17 goals, making sure that the sustainable management goals are fully implemented. The Company's sustainabledevelopment management committee reviews the performance.
No poverty
High-qualityeducation
Clean waterand sanitationfacilitiesA?ordable cleanenergy
Gender equality
Zero hunger
Good healthand well-being
? Establish a social security system for employees to improve their welfare. ? Advocate public welfare activities to alleviate poverty, carry out charitableactivities to help needy students, and donate clothes and books every year.? On September 27, 2021, Dahua Huayu Public Welfare Development Center joined hands with the Zhejiang Lions Clubs Yuanmeng Service Team toorganize a public welfare project with the theme of “Clothes for love. Books for warmth”, during which 475 pieces of clothes and more than 200 bookswere collected.
? Dahua has joined hands with Shaoxing City on the "Smart Safe Campus" campaign to maintain the safety of more than 1190 campuses in the city andcreate a safe and harmonious environment for 742000 teachers and students in the city.? To support the education development of Binjiang District, Hangzhou City, Dahua has donated one million RMB to fund the living and study of studentswith nancial di?culty.? Dahua has developed a good training system, set up a special committee and built a training base to guide employees to improve their abilities.TheCompany has carried out the dual empowerment mode of "external training" + "internal training", established an independent internal training system andcarried out relevant training at the same time on the ELearning platform.? Carry out university-enterprise cooperation by building technological innovation platforms, joint training bases, innovation practice centers to promotethe integration of higher education and industrial development and enable technology to empower industrial development.? Provide smart ecological solutions, and build a comprehensive "air and earth integration" intelligent monitoring and sensing system to realize the at,intelligent and rened business integration application of ecological monitoring and protection.? Provide Dahua's river visualization monitoring system solution, implement river monitoring and water quality monitoring, and ensure the availability ofsafe drinking water and sanitation facilities to reduce water pollution and conduct water resource management.Employ the intelligent management systemof drinking water sources, which can monitor, visualize and control the water condition, to detect and make warnings about water quality, water level,oating objects, and illegal mining, aiming to protect the safety of water sources.? Improve the utilization rate of recycled water.? Embrace the development of clean energy and help achieve the goals of carbon peak and carbon neutrality.At photovoltaic power stations, the thermalimaging processing algorithm and the photogrammetry technology are used to improve the inspection e?ciency and ensure the stable, e?cient operationof photovoltaic power stations.
? Increase the proportions of female managers and female employees.? Provide equal training sessions and resources to male and female employees.
? Provide a variety of healthy and safe meal options for employees.? Sponsor public welfare causes, carry out ood relief activities in Zhengzhou, Henan Province, and send presents to families in need and families withchildren with disabilities during the Spring Festival.? Dahua continues to improve the full-process digital intelligence management of food and make use of the IoT sensing and digital applications to protectthe healthy growth of crops. The Company ensures food storage safety through comprehensive management, and guarantee food safety by using see-through kitchens where the entire cooking process is visible.? Dahua has launched a full-process regulatory solution for food production, transportation, storage, and sales to supervise the entire process, makinguse of AI to ensure food safety.The Company has promoted the implementation of the "Zhejiang Food Chain" and "Wuhua Smart Market" in Zhejiang, thesmart cold chain project in Shandong, and many other projects such as Transparent Kitchens in Henan and Hubei.? Dahua has helped Empresa Panamena de Alimentos (EPA), Panama's leading food processing enterprise, apply video surveillance solutions to enablerecord management on an integrated platform, strengthen food safety, and prevent and control the pandemic in the post-pandemic era.? Dahua has launched a smart elderly care solutions of "Internet+" and "AI+" that include di?erent elderly care models such as home-based care, commu-nity care, and institutional care, providing more comprehensive and smarter safety measures for the elderly and promoting smart, convenient elderly careservices.At present, Dahua has facilitated the implementation of projects in Guangzhou, Shenzhen, Huzhou and other regions in the country.? In the Sixth People's Hospital of Shanghai, Dahua adopts smart approaches such as integrated gate and access control to divide the physical spaceinside the hospital, and assists the hospital's operation and management through digital means to o?er a new direction for hospital management in thenew era.? Dahua has created a good working environment, set up sta? physiotherapy rooms, carried out EAP psychological assistance program for employees,conducted EHS management system training, and reduced casualties.? Dahua regularly commissions third-party institutions to conduct checks on all occupational disease hazards, equips relevant employees with laborprotection supplies and organizes regular occupational health checks.? Dahua has introduced and established the environmental and occupational health management system and the hazardous substances process man-agement system to protect employees' health and the environment.
Sustainable De-velopment Goals
Dahua's Actions
ESG Management
Sustainable Development Strategies
ESG Management
Sustainable Development Strategies
A?ordable cleanenergyDecent work andeconomic growthIndustry, innovation,and infrastructureReduce inequalitySustainable citiesand communities
Responsibleconsumption andproduction
Action on cli-mate changeUnderwater crea-tures
? At wind farms, Dahua develops the wind farm video management system for wind power operation enterprises, and sets up video monitoring sys-tems across the entire wind farms to facilitate safe production and to realize less manpower at wind farms and intelligent operation and maintenanceof wind farms.? At hydropower stations, Dahua provides video monitoring of dam construction quality in every step and process for Wudongde Hydropower Stationon Jinsha River, which is the seventh largest hydropower station in the world. Dahua has adopted thermal imaging and black body technology tofacilitate intelligent construction, and used AI-based intelligent video analysis algorithms to realize intelligent, visualized control of the entire construc-tion cycle.? Provide high-quality jobs and increase investments in job creation. ? Protect labor rights and interests.? Promote smart manufacturing ? Promote the digital transformation of villages in many parts of the country, promote the revitalization of ruralindustries, and boost rural modernization. ? Release Dahua Think Strategy with the theme #Internet of Things for a Future of Digital Intelligence#to create an ecosystem community for the Internet of Things.? Democratic management?Human rights governance? Dahua’s smart city scheme is employed to enable the Company to continuously improve the modern digital system solution of urban governancewith the help of multidimensional awareness, articial intelligence, cloud computing, big data and other technologies, so as to modernize the govern-ment's governance system and capacity.? Provide smart community and business park solutionsRealize the intelligent upgrades of the security and o?ce applications in business parks toand improve the security and o?ce productivity of enterprises. Facilitate the digital transformation of enterprises in every aspect to improve safety,enhance work e?ciency and reduce management costs.? Focus on people's livelihood, provide solutions for smart farmers markets, smart tea gardens, smart communities and rural tra?c managementthrough digital intelligence technology innovation and information services, aiming to upgrade and transform farmers' markets and old communities,and improve the safety of roads in villages.? Dahua’s digital solution to control tra?c congestion helps quickly handle tra?c accidents and clear the tra?c, boost the intelligent management oftra?c congestion, and make residents’ traveling more convenient.? Dahua joins hands with Xixi Management Committee of West Lake to build a comprehensive intelligent control platform and a vehicle reservationand management platform for the pain points in the management of West Lake scenic spot by using advanced video analysis algorithms, realizing achange in the management mode from post-accident handling to pre-accident warning,helping tourists improve their travel experience, and achievingthe intelligent management and control of West Lake scenic spot.? Strengthen waste recycling in production? Advocate the green policy, establish the green mechanism, and set up the green product management platform (GPM) to make green productionand hazardous substance management intelligent and informationized.Integrate environmental protection requirements into product R&D, productionand manufacturing, and smart IoT solutions, promote the R&D of green technology, produce green products, and minimize the impact of productionon the environment.? Working towards the goals of carbon peak and carbon neutrality, Dahua adopts in its headquarters park intelligent transformation measures suchas “park intelligent brain”, smart adjustment of central air conditioning and lighting system with automatic turning o?. The power saving rate exceeds20%. The conference rooms are equipped with electronic whiteboards to realize paperless o?ce, multi-screen sharing and remote collaboration,creating a low-carbon o?ce environment.? Dahua’s smart power consumption scheme empowers energy saving and emission reduction in various industries, and facilitates the achievementof carbon peak and carbon neutrality.? Dahua’s intelligent monitoring solution for air quality is applied to multiple scenarios such as open outdoor burning, “black-smoke” vehicles, andreduction of emission from moving sources to continuously boost the ability of air pollution prevention and control, and e?ectively improve air quality.? Reduce carbon emission ? Dahua’s intelligent forest re monitoring system facilitates the monitoring, protection and recovery of forest andgrass resources in Tibet, Yunnan, Hebei and other provinces. It promotes the use of information technology in the management of forest and grass,improves governance e?ciency, protects forest with digital intelligence, and facilitates the achievement of goals of carbon peak and carbon neutrality.? Provide the smart ecosystem solutions.? Dahua’s deep-sea camera unveils the secret at 10000 meters underwater. It adopts digital technology in ocean-related activities, provides anocean scenario-based intelligent solution, and facilitates the exploration of the vast, deep blue world.? Intelligent shing ban solution for Yangtze River creates an all-round supervision system for shing ban to achieve rened management of theareas that prohibits shing. It empowers the management of shing ban in water areas through digital intelligence, to greatly improve the e?ciency ofinspection and protect the water ecological environment.? Dahua's solution for shing ban driven by digital intelligence guards the beauty of Dongting Lake with technology, protects the water ecosystem,and facilitates the intelligent shery administration.
Sustainable De-velopment Goals
Dahua's Actions
Terrestrial crea-tures
Peace, just andstrong institutionsPartnershipsthat promote theachievement ofgoals
? For the protection of rare and endangered animals and plants in the protected area, Dahua has built an intelligent monitoring and early warningsystem covering the whole area, to carry out comprehensive accurate observation, research and evaluation of wildlife, ecological types and biodiver-sity in the protected area, protect the balance between the species and the general ecological environment, and provide data for the development ofecological civilization.? Protect wild animals on land, realize intelligent detection, analysis and counting of wild animals in conservation areas, and facilitate the closeobservation and study of the migration of rare wild animals. Dahua participated in the development of intelligent ecological protection system inQinghai's "ecological window" program.? Dahua 5G digital ecological intelligence monitoring system is used to protect biodiversity, and conduct comprehensive precision observation andresearch and evaluation of 62 national protected animal species such as Yunnan snub-nosed monkey, as well as ecological types and ecologicaldiversication, in Yunnan Baima Snow Mountain National Nature Reserve, protecting the species and ecological balance.? Provide smart policing, tra?c control, transportation, judicature, emergency solutions. ? Issue human rights policies and manifestos, and askupper-stream supply chain partners to implement them.? Establish a comprehensive all-channel partner management system, and focus on the operation of the key advisory committee.? At the same time, provide livestreaming courses on the Dahua cloud business platform for distributors and partners. The courses cover products,solutions, technologies, and industry insights, among others.In 2021, the Dahua cloud business platform conducted 116 livestreaming courses andonline courses, with a total of 224000 viewers.? Optimize the industrial ecology, industrial solutions partner ecosystems.
ESG Management
Sustainable Development Strategies
Sustainable Development PolicyRespect the value of the Company, partners, and employees, andcomply with regulations, international standards, and internal rulesand regulations. Strive to create value in corporate governance,social issue handling, environmental protection, talent develop-ment, and public welfare investment.Sustainable Development Management SystemIn order to promote sustainable development of the Company'sstrategy execution and target achievement, Dahua introduced asustainable development management system. Based on internaland external environments, Dahua pays close attention to theneeds of interested parties to realize the closed loop managementof the sustainable development goals and improve the satisfactionof all interested parties in the ve aspects of planning, organiza-tion, process operation, performance evaluation and continuousimprovement.Guidelines regarding sustainable development management sys-tem stipulate the overall framework structure of the system, clarifythe responsibilities and rights of the management level and all de-partments as well as the relations among them, and standardizeall kinds of operation procedures and record management. Driven
by the management system and guidelines, Dahua's quality,health, safety and environmental management are implementedin an orderly manner.Duties and Operations of the Sustainable Develop-ment Management CommitteeTo ensure the realization of the sustainable development strate-gies of the Company, Dahua has built the management mecha-nism and system for sustainable development. The Company'sSustainable Development Management Committee, as the execu-tive body of sustainable development management, promotes fairtrade, the establishment of a supply chain ecosystem, corporatesecurity and health protection, labor management, environmentalmanagement, and social contributions, among others.The Sustainable Development Management Committee is com-posed of more than 10 leaders from the operation managementcenter, R&D center, administration center, human resourcescenter and other departments. The director of the committee isDahua's president. The executive team under the committee ismainly responsible for the implementation and coordination of thecommittee's daily work and the realization of the objectives listedin the sustainable development strategy.Duties of Sustainable Development ManagementCommittee? Formulate the Company's sustainable developmentstrategy, objectives, policies and systems, and super-vise the implementation.? Coordinate the establishment, implementation andcontinuous improvement of the sustainable develop-ment management system to ensure that Dahua's sus-tainable development management complies with rele-vant laws and regulations and customer requirements.? Guide the establishment, operation and improvementof the Company's EHS management system, and beresponsible for handling major EHS issues.
Responsibilities of the Working Group? Release the decision-making mechanism of the com-mittee.? Responsible for the implementation, coordination andfollow-up of daily work.
Figure Sustainable Development Management Committee
ESG Management
Sustainable Development Strategies
Working Group
Sustainable Development Management Committee
Director: Executive PresidentMembers: Members of the management committee
Operation Management CenterResearch centerAdministration CenterHR CenterDepartment of Public A?airsFinance CenterLegal DepartmentSupply Chain Management CenterSecurities Investment DepartmentDelivery and Service CenterDomestic Marketing CenterOverseas Marketing CenterQuality Management CenterProcurement Management CenterBranding DepartmentProcess IT CenterInternal Audit Department
Risks and Opportunities in Sustainable Development
We have integrated sustainable development risk management into the Company's scope of business management, adopted compre-hensive risk and opportunity management measures, enhanced risk resistance capacity, and provided operational guidance for the in-corporation and application of these measures in the quality and environmental management system as well as for the evaluation of thee?ectiveness of these measures. It is important to identify all potential sustainable development risks and opportunities as reference forstrategic planning development, which drives us to formulate specic goals and annual work plans.The major opportunities and challenges in the external environment at present are the di?erences in technology application capabilitiesof di?erent countries and regions in the world, which is not conducive to the synchronous and balanced development; personalized andscenario-based intelligent applications are required for industry segments and specic groups. Dahua has seized opportunities and facedup to challenges by actively participating in the global strategic cooperation, completing the planning and design together, providing cus-tomized services and application solutions for customers, jointly developing an application development platform which is easy to use,and striving to bring Dahua's extraordinary technologies and services to every corner of the world.
Interested Party Information and CommunicationDahua has always been adhering to the core concepts of “Customer-oriented, employee-based” and practicing the mission of “Enablinga safer society and smarter living”. It fully considers and responds to interest-related concerns and demands, jointly promotes economicand social development with interested parties, and shares development achievements.The main interested parties of Dahua include customers, partners, employees, governments, and investors. The trust and support ofstakeholders are the basis for the survival and development of the Company. We have established communication mechanisms withinterested parties. Understanding interested parties' expectations of the Company and the major ESG issues of concern can help theCompany plan for its long-term sustainable development. We actively work on building the bridge of communication with interested par-ties, as well as identify and respond to the expectations of interested parties in multiple dimensions and through multiple channels.
Shareholder
/Investor
? Increase of market value and prot ofthe Company? Sustainable Operation? Information Disclosure? Continuous improvement of theCompany's performance in fullling itsenvironmental and social responsibility
? Shareholders’ meeting, infor-mation disclosure, the Company’swebsite? Investor meetings, eld research,strategy meetings, investor presen-tations, etc.
? Information transparency and timely disclosure? E?orts to improve performance, prot, and environmental andsocial responsibility management
Customer
? Product safety and service quality? Customer health and safety? Cyber security and user privacyprotection? R&D and innovation? Scenario-based customer solutions
? 400 customer service Hotlines? Customer satisfaction survey? Customer meeting? Customer evaluation, researchand cooperation projects
? Insist on customer-centric, quality-backed craftsman spirit thatseeks opportunities from customer demands and boost the successof customers? Establish a strict product safety control mechanism, implementstrict product safety standards, and provide consumers with safe andreliable products and services? Integrate sustainability requirements into the whole life cycle ofproducts and advocate circular economy? Regard cyber security and user privacy protection as an importantguiding principle for the CompanyEmployee
? Health and safety at work? Compensation and welfare? Career development? Humanistic care
? Employee representative commu-nication meeting? Employee survey? Manager feedback? Dahua Sta? electronic magazine? Complaints, suggestions, reportsand complaintsfor receiving complaints, sugges-tions, reports and complaints
? Establish sound management and safeguard systems for employeehealth and safety? Adhere to the striver-awarded principle, encourage all kinds oftalents to make the greatest contribution at the best time at the bestposition, and ensure they get the biggest returns? Establish a sound training system and a clear path for careerdevelopment? Pay attention to diversication, establish good work conditions, andcreate a healthy work atmospherePartner
? Win-Win Cooperation? Training and Empowerment? Integrity and Trustworthiness? Supplier Management? Sustainable Development
? Field Investigation? Supplier Conference? Supplier Training? Channel conference? Cloud business platform
? Adhere to ethical and transparent procurement and zero tolerancefor bribery and corruption? Conduct supplier training and coaching and carry out supplierdevelopment program? Adhere to the sinking strategy, continuously empower partners andachieve co-construction and sharingGovernmentsand Regula-
tors
? Compliance with Law? Employment and Wealth Creation? Safe Production? Green Production? Tax Payment According to Law? Environmental Protection
? Policy consultation? Governmental Meetings? Compliance management? Fill in various forms as requiredand attend related trainings andmeetings
? Abide by business ethics, international conventions and relevantlaws and regulations of various countries? Engage local labor force in employment process and local suppli-ers in procurement process, and pay taxes in accordance with laws? Step up campaigns on production safety and strengthen oversight? Make e?ort to reduce total emissions of industrial pollution? Reduce carbon emissions, advocate circular economy and in-crease the use of renewable energyCommunity
? Communication with Communities? Environmental Protection
? Community Activities? Interviews and investigations
? Community activities? Waste classication in the park? Rectication and treatment of sewage discharge
InterestedParty
Interested Party Expectations
Main Communication andParticipation Mechanisms
Enterprise Response
Interested Party Participation
ESG Management
Interested Party Participation
Protection of Rights and Interests of All RelevantParties - Return on Investment
During the reporting period, the Company has actively given backto shareholders, continuously improved the governance struc-ture, strictly fullled the obligation of information disclosure, andstrengthened the management of investor relations, striving to ful-ll its obligations and raise awareness of protecting the rights andinterests of shareholders.
Protection of the Rights and Interests of Share-holders and Creditors
1. Regulated and transparent information disclosure
Dahua has formulated relevant rules and regulations centeringon the improvement of corporate governance according to lawsand regulations such as Company Law, Code of Corporate Gov-ernance for Listed Companies in China, and Guidelines of Articlesof Association for Listed Companies. It continuously promotes andstrengthens the development of the Company's internal controlmanagement system, claries the responsibilities and authority indecision-making, execution, supervision and other aspects, and
forms a reasonable and e?ective division of responsibilities and amechanism that balances powers to ensure the authenticity, accu-racy, completeness, timeliness and fairness of information disclo-sure. In 2021, the Company released 216 information disclosureannouncements, and the information disclosure work was rated asexcellent by Shenzhen Stock Exchange for 11 consecutive years.
2. Positive investor relations management
Dahua has always been committed to being a truthful, compliantand transparent listed company for investors, actively setting upa good communication mechanism with investors and fully pro-tecting investors' right to know. After the release of the periodicreport, the Company will hold a meeting on business performanceas soon as possible, to ensure that investors have access to theCompany's interpretation of its periodic reports truthfully, accu-rately, completely and timely as early as possible. During thereport period, more than 80 groups of delegations, with a total ofmore than 2000 people, were received on site. The Company par-ticipated in 48 external broker strategy meetings, and organized1 investor communication event, interacting with more than 1000domestic and foreign investors. In addition, more than 400 hotlinecalls were answered and 250 questions on the Hudongyi platformof the Shenzhen Stock Exchange were answered.
High
LowHighImportance to the sustainable development of enterprises
Importance to Interested Parties
23. Smart manufacturing
| High |
?Anti-corruption and Anti-commercial Bribery
?People Orientation?Diversity and Inclusiveness?Employee Benefits
?Respect for Human and Labor Rights
?Occupational Health and Safety Management?Manufacturing Digitalization
?Environmental Management?Green and Innovation-driven Development
?Chemicals Management
?Reduction of Power Consumption and Carbon Emission
?Water Management?Reduction of Greenhouse Gases Gas emissions?Noise Management
?Hazardous Substance Management?Waste Management
?Cyber Security
?Compliance with Law?Customer Data and Privacy Protection
?Public Welfare and Community Contribution
?Local Economic Impact
?Solution of Social Issues?Sustainable Economic Growth?Innovation and Research?Clean Technology and Applications
?Win-Win Cooperation Sustainable Development
?Fair Business Practices
?Climate Change
?Community Issues
?Environment Issues
?Product Safety and Quality
?Sustainable Development Management System
?A Future of Digital Intelligence?Construction of Global Service Ecosystem
| Importance to Interested Parties |
Through media study and engaging interested parties in surveys, Dahua combines the opinions and expectations of interested partieswith its own management and development needs to evaluate and analyze the importance of such issues, providing basis for formulatingthe long-term ESG strategy.Focus on Substantive Issues
ESG Management
Focus on Substantive Issues
Practicing the social responsibility to achieve goals ofcarbon peak and carbon neutrality, and empoweringenterprises to save energy and reduce consumptionIn order to realize the national goals of carbon neutrality and carbonpeak, energy saving and emission reduction is an indispensable taskfor every enterprise during production and operation. Based on thedemand of enterprise electricity management, Dahua has launched thecomprehensive energy e?ciency management solution for enterpriseswhich focuses on energy saving, consumption reduction, and electricitysafety. By adopting innovative sensing and detection technology, thesolution detects various potential electricity hazards in electrical lines inreal time to ensure the safety of electricity consumption. The solutioncan identify high energy consumption points or risky points according tothe electricity consumption habits of the enterprise, and provide accuratebig data risk assessment for safe electricity use by enterprises. Throughadvanced technologies such as Internet of Things, big data and 5G, aswell as the unied management of the platform and the unied imple-mentation of strategies, Dahua ensures electricity safety, energy savingand consumption reduction of the buildings and parks of enterprises tohelp the country achieve the goals of carbon peak and carbon neutrality.
Enabling vision to be a source of productivity andpromoting the green development of steel industryIn iron and steel production, heating furnace and sintering furnaceare important smelting equipment, and the conditions inside the fur-naces need to be checked in real time during production. Dahua hascollaborated with New Tianjin Steel Group to launch a furnace amemonitoring system, which adopts 24/7 HD monitoring, thermal imag-ing temperature measurement, ame status trend analysis and othertechnologies to meet the demanding requirement of monitoring at2000℃inside the furnace, to realize real-time measurement of furnacetemperature, real-time generation of temperature curve and real-timeanalysis of combustion status, and help operators to make timelyadjustment of parameters such as feeding speed and combustionair volume, which ensures the safety of operation personnel, makesthe furnace control system more intelligent, improves the operatione?ciency of the furnace, reduces energy consumption, lowers the pro-duction cost of the enterprise, and realizes the green and sustainabledevelopment of the enterprise.
Using AI to safeguard coal mine production safetyand facilitate smart mining
Based on the characteristics of coal mining scenario, Dahua has de-veloped a solution adapting to the production process of coal. It hasmade full use of its advantage in algorithms and integrated equipmentto develop a solution where faults such as belt deviation, blocking,foreign matter and re can be automatically detected. While facilitatingon-site inspection personnel to understand the running status of thebelt machine and reducing the workload of inspection personnel, thissolution improves the e?ciency of handling malfunctions and reducesaccident losses. In addition, videos applied in industrial production areused to monitor the safety of personnel, supervise equipment and in-spect the production through visualization, and regulate and control vi-olation behaviors, so as to further make the coal mining process moreintelligent, reduce costs, and increase e?ciency while ensuring safety.
Embracing clean energy and build a “green home”At photovoltaic power stations, the thermal imaging analysis technologyand the photogrammetry technology are used to make accurate analysisand judgment of the type and grade of hot spots on photovoltaic panels,and identify the positions of the defects to improve the inspection e?-ciency and ensure the stable, e?cient operation of photovoltaic powerstations. At wind farms, Dahua develops the wind farm video manage-ment system for wind power operation enterprises. By covering theentire wind farms with video monitoring systems, the system monitorsin real time the station and wind turbine equipment as well as the sur-rounding environment of the wind farm, records the entire work processof operation personnel, and provides easy-to-read data for risk controlin advance and operation management, facilitating safe production andrealizing less manpower at wind farms and intelligent operation andmaintenance of wind farms. In terms of hydropower stations, Dahua hasdeveloped a hydropower engineering machine vision intelligent moni-toring platform for Wudongde Hydropower Station on Jinsha River, theseventh largest hydropower station in the world. It uses ultra-distancethermal imaging temperature measurement technology to conductreal-time accurate temperature measurement and over-limit warningfor concrete. It can accurately control the temperature during the entirecycle from preparation in the mixing tower to setting out and leveling,and to pouring. The qualied rate is improved and cracks in the dam areprevented. At the same time, based on AI intelligent analysis of concreteproduction, transportation, pouring and maintenance, it can conduct all-round tracking on problems such as large aggregate concentration andwater secretion and accurately control the quality of important stepssuch as thermal insulation covering and polyurethane spraying. Throughthe digital assets formed during dam construction, dam construction canbe visualized and standardized, and information technology and smarttechnology are adopted to the construction.
Empowerment by Digital Intelligence for GreatnessEmpowerment by Digital Intelligence
Empowerment by Digital Intelligence for Greatness
Empowerment by Digital Intelligence
Smart healthcare to help hospitals operate e?ciently
To deal with hospital access management during the pandemic, Dahuahas launched an intelligent hospital space order management schemeto facilitate the access management of hospital personnel, smart ver-ication of health codes, and management of inpatient care providersand visitors. Using advanced technologies such as AI, big data, andIoT, the scheme can achieve more e?cient hospital admission screen-ing, orderly registration, easy management of inpatient care providers,and control of key areas to ensure the safety of medical care, keepthe hospital environment clean and improve patients’ medical experi-ence. In the Sixth People's Hospital of Shanghai, Dahua adopts smartapproaches such as integrated gate and access control to divide thephysical space inside the hospital, realizes the security screening andverication of hospital admissions, and assists the hospital's operationand management through digital means to offer a new direction forhospital management in the new era.
Empowerment by digital intelligence for invigorat-ed agriculture
Dahua has joined hands with a pig farm in Guangxi to build a digitalintelligence pig farm. Through the intelligent pig management platform,the farm realizes an e?cient closed loop of pig counting, quarantineinspection and temperature measurement and effectively improvesthe production efficiency of live pigs sold to Hong Kong. This hassaved labor costs, improved the monitoring capability, and provided animportant basis for the farm to further broaden the sales channels oflive pigs and increase the added value of live pigs. Dahua has helpedenterprises meet the high standards of the entire process of live pigprocurement set by Hong Kong Food and Environmental Departmentand other departments. At the same time, Dahua has helped the pigfarm become one of the rst batch of farms free of African swine feverin Guangxi. In addition, Dahua makes use of digital intelligence toinvigorate the agricultural industry and designs schemes for the entireindustry chains of the planting sector and the breeding sector. In termsof specic business areas, Dahua has provided service to elds suchas well-facilitated farmland, protected agriculture, pigs, cows, beefcattle, freshwater and mariculture, and poultry farming. The entire pro-cess of agriculture has involved many stages such as planting, raising,slaughtering, further processing, storage, transportation and sale.
Smart security check to help relieve the logisticspressure around the "Double 11" FestivalThe traditional manual security check of mails and parcels takes lots oftime and e?ort, and errors and omissions are likely to occur due to longtime of work. Dahua takes advantage of its technical advantages in thevideo eld, and has independently developed a security inspection ma-chine for the logistics industry to meet its needs of logistics and expresstransportation scenarios. In the mail and parcel distribution scenario, thismachine can sort mails and parcels at an ultra-fast speed, up to 3 m/s, which can meet the needs of logistics enterprises for quick securityscreening and distribution of more than 5000 pieces/hour, greatly short-ening the sorting time and improving the security check e?ciency.
Smart and safe use of electricity to help numerousstores in di?erent cities build a "rewall"Dahua applies its smart power solutions to various types of stores,monitors electricity loads such as voltage and current of power linesin real time through the smart air switch, and adopts the dual securitymechanism of warning and alarm to prevent re.Dahua has helped a famous convenience store franchise chain in China,which has a total of more than 4000 stores in China , realize cloud-basedequipment management, transform to asset-light business model, andreduce burden on the enterprise through Dahua’s smart power solution.The headquarter of the franchise company detects the online and o?inestatus of electrical equipment in stores in real time. The platform canreceive the alarm of the equipment and monitor the operation status
Using technology to empower smart travel and cre-ate a new landscape
Dahua has joined hands with Xixi Management Committee of WestLake to build a comprehensive intelligent control platform and a vehiclereservation and management platform for the pain points in the man-agement of West Lake scenic spot by using advanced video analysisalgorithms. The platform can be used to serve as a remote megaphoneto call out to illegal parking vehicles on the road, persuade touristsfrom trampling on the lawn, set o? alarm when uncertied guides aretrying to deceive tourists, and quickly approve the admission of vehi-cles on holidays if the drivers have booked a place for their vehicles. Ithas been applied in multiple actual management scenarios to realizea change in the management mode from post-accident handling topre-accident warning,Since the launch of the platform, during the national day, the numberof illegal parking at the Yanggong Causeway section of the West Lakehas decreased by more than half compared with the same period inprevious years. The intelligent reminder system for trampling on thelawn has set off alarm more than 300 times. The driving time fromJiulisong tourist center to the entrance of Lingyin Temple and FeilaiPeak has been shortened from 25 minutes to 3 minutes, which has ef-fectively improved tourists’ experience and made the management andcontrol of the West Lake scenic spot more intelligent.
Empowerment by Digital Intelligence for Greatness
Empowerment by Digital Intelligence
of electrical equipment in all stores nationwide in real time. When thepower line of an electrical equipment malfunctions, the platform will sendan alarm message to the management sta? APP at the earliest time fortimely handling to eliminate dangers and avoid re. While ensuring safe-ty, the platform can analyze the current/voltage/power data of di?erentstores, at di?erent time and of di?erent equipment to help the franchisecompany identify high energy consumption points or unfavorable elec-tricity use habits through comparative analysis. By formulating scienticand reasonable power consumption strategies, Dahua helps stores saveelectricity as much as possible and reduce operating costs.
Non-contact temperature measurement and healthcode verication to continuously support pandemicprevention and controlIn 2021, China entered the stage of regular prevention and controlmechanism of the COVID-19 pandemic. Dahua's products, includingthermal imaging temperature measurement and temperature measure-ment security door, continue to serve key places such as subway sta-tions, hospitals, and railway stations to help with pandemic preventionand control through accurate temperature measurement. The all-in-onehealth code intelligent verication machine performs verication in mul-tiple ways including personnel identication, ID card, and health code,playing an important role in schools, hospitals, enterprises, stations,and supermarkets, among others. Meanwhile, Dahua has actively re-sponded to the customized needs of pandemic prevention in variousregions, completed the alignment with big data platform systems of 24provinces/cities, and realized the rapid verication of health codes ofpersonnel in and out of premises, thus continuously contributing "Da-hua strength" to pandemic prevention and control.
Risk identication through dangers to help with thesafety of chemical industryPetroleum and chemical industry is an important basic and pillar industryin China. Dahua adheres to providing digital intelligence services for allscenarios of the industry to promote new production and practice new safe-ty. In the park scenario, Dahua is committed to simplifying management,facilitating office work and optimizing energy consumption by integratingvarious systems. In the production scenario, Dahua is committed to buildingan intelligent scenario of full sensing and full connection by developing mul-tidimensional awareness products that t with practical needs. In the safetyproduction scenario, based on optical Al, Dahua is committed to realizingthe prediction and early warning of environmental abnormalities, instrumentstatus, equipment inspection, construction elements, personnel compliance,operation process, storage and transportation specications by integrating avariety of sensors, so as to make the management more intelligent.Dahua has joined hands with Wanhua Chemical Group Co., Ltd., thenational leader in ne chemical industry, to empower the intelligent up-grading and construction of its major bases with science and technolo-gy. Through AI optical technology, remote intelligent supervision on theviolation of personnel behaviors in the production area is implementedto ensure the safe operation of personnel. Based on thermal imagingAI technology, sensitive alarm to the leakage in the device area is
available to eliminate potential risks and ensure the stable operationof the device. Data fusion technology is adopted to complete the inter-connection of multiple systems, realizing the e?cient ow of personneland logistics, and safeguarding the safe daily operation of the park.In the upstream of petroleum and chemical industry, Dahua has providedsafety upgrading construction with the theme of "Promote new produc-tion and practice new safety" for industry giants such as China NationalPetroleum Corporation (CNPC) and China National O?shore Oil Corpo-ration (CNOOC). Dahua has provided safety protection for tens of thou-sands of drilling wells through AI optical technology and thermal imagingtechnology to make oil and gas exploitation and exploration safer andassure the society the safe use of oil and gas. Dahua has empoweredhazardous chemical production with science and technology, guardedenergy security and production safety with actions, and contributed tothe stable operation of petroleum and chemical enterprises.
Intelligent water conservancy to support targetedcontrol of waterWater conservancy is closely related to people's livelihood. Dahua hasconstantly met the rapidly changing development needs of water con-servancy by focusing on technical advantages such as video IoT, AI anddata fusion, to continuously make innovations and breakthroughs in theeld of intelligent water conservancy application and built an intelligentsystem for the whole process of water conservancy. In addition, theCompany has taken practical actions to support the protection of Yang-tze River, the South-to-North Water Diversion and the ood control ofYellow River, so as to improve the e?ciency of water area managementempowered by science and technology.The refined management system of Yangtze River embankment in acity in Jiangsu Province, in which Dahua is deeply engaged, has passedthe nal acceptance. This system has functions of real-time monitoringand playback, intelligent analysis, automatic alarm, remote call, andclassied management and control, among others. Relying on the 129monitoring points along Yangtze River, it has established a three-dimen-sional monitoring grid of the river surface and embankment, and realizedall-weather, full coverage and all-round supervision and protection of theentire 216 kilometers of Yangtze River in the city.Dahua signed a strategic cooperation agreement with Shanxi WaterConservancy Management Center of Wenzhou. The two parties havejointly built a R&D base of intelligent water conservancy to help achieveinnovative applications in water conservancy, such as automatic identi-cation of oating objects, monitoring of illegal excavation and illegal con-struction along rivers, AR panoramic monitoring, platform networking,and emergency law enforcement, thus accelerating its digital upgradingand providing valuable experience for the digital transformation of waterconservancy industry in Wenzhou city and even Zhejiang province.Intelligent lighting to protect the eye health of pri-mary and secondary school studentsBinjiang District of Hangzhou is a pioneer in the development of smartcity. In order to further reduce the myopia rate of primary and sec-ondary school students in compulsory education in the whole district,Dahua has helped Binjiang Education Bureau to take the lead in thecitywide informatization and intelligent transformation of classroomlighting in primary and secondary schools. Focusing on the develop-ment concept of "Green eye protection, energy conservation and en-vironmental protection, and intelligent IoT", Dahua has completed therenovation of intelligent lighting environment in more than 1000 class-rooms of 16 primary and secondary schools and built a district-levelintelligent lighting management platform in the Education Bureau. Theproject has realized the interconnection, intelligent control, real-timemonitoring and big data analysis of the educational lighting equipmentin the whole district, thus making school lighting more intelligent. Inaddition, the system can make timely identication of problems, furtheroptimizing the allocation of school education management resources,and realizing the full coverage of "Bright Classroom", which is one ofthe "New top ten heart-warming action projects" in Binjiang District.
Empowerment by Digital Intelligence for Greatness
Empowerment by Digital Intelligence
Digital intelligence monitoring to protect biodiversity
For the rare and endangered animals and plants in the reserve, Dahuahas built an intelligent monitoring and early-warning system coveringthe whole area, to carry out all-round accurate observation, researchand evaluation on wild animals and plants, ecological types andbiodiversity in the reserve, protect species resources and ecologicalbalance, and provide data support for the construction of ecologicalcivilization.In order to protect the rare and endangered wild animal and plantspecies like the Yunnan snub-nosed monkey, alpine blue sheep, blackbear, and Himalayan yew, Dahua has built a 5G digital ecological in-telligent monitoring system that conforms to the characteristics of highaltitude. The system automatically identifies and gives warnings onillegal behaviors such as poaching, unlawful felling tree, overgrazing,and collecting undergrowth resources under tree crowns in and aroundconservation areas to eliminates the inuence of human activities andprotect the gradual growth of wild populations. It has also developedthe environmental big data capability of conservation areas and built"one map" management of ecological protection to assist scientificdecision-making and biodiversity research, and help with the intelligentand rened ecological protection work of management departments,which has realized the continuous monitoring, intelligent statistics ofpopulation quantity, intelligent analysis of activity patterns and livinghabits of 62 kinds of national key protected wild animals in the reserve,including Yunnan snub-nosed monkey, reduced human interventionand better helped with the protection of wild animals.
Digital intelligence countryside to make life betterFocusing on the requirements of industrial prosperity, pleasant livingenvironment, e?ective management of rural customs and civilization,and a?uent life, Dahua has actively responded to the rural revitaliza-tion strategy, deeply explored the application of digital technology inrural revitalization, empowered the new development model of "agri-culture, rural areas and farmers", and promoted the modernization ofagriculture and rural areas.Smart agriculture with full-chain digital servicesDahua has used modern information technologies such as IoT sens-ing, remote sensing, video visualization and video live broadcasting toimprove the e?ciency of agricultural management, assist agriculturalscientic decision-making and improve the brand benets of local char-acteristic products.
Digital tourism to bring prosperity to the villageThrough the power of digital science and technology, Dahua hashelped improve the digital management and operation of rural scenicspots in tourism services, tra?c management and environmental gov-ernance, and boost the revitalization of rural industries.Safety governance to improve rural happinessDahua has set up a map of rural safety management to effectivelyprovide comprehensive security guarantees. Three-dimensional mon-itoring of rural environment helps with rural ecological protection. Da-hua helps with intelligent supervision of rural refuse classication andfarmers' markets to improve rural life order and service quality.Innovation in people's livelihood service to facilitate rural lifeDahua helps build an innovative government service system to provideone-stop and user-friendly services for people's livelihood. An earlywarning mechanism for abnormal situations has been established toensure the safety of specic groups.
Digital intelligence fire prevention to guard the"Happy Green" with science and technology
In view of the pain points of large forest area, low monitoring e?ciencyand slow incident response, Dahua has built a full-coverage, all-intel-ligence and whole-process intelligent monitoring system for forest reprevention, which has realized automatic re warning, real-time masterof re situation and closed-loop handling process through digital intel-ligence science and technology, thus improving the forest re preven-tion monitoring and incident response capability.Dahua has innovatively created an intelligent monitoring system for for-est re prevention based on the characteristics of forest area of Rizhaoin Shandong. Through AI algorithm and thermal imaging technology,the system can greatly shorten the time to discover re, immediatelydetermine the re location, re intensity and the situation around there, and synchronously send the information to mobile phones, so asto transfer them to sta? for handling within ve minutes and strive forthe "golden time" to put out re as soon as possible, thus securing suc-cessful re prevention. In addition, based on the capability of big data,a "map" of re prevention management has been created to provide avisual view of re prevention, ignition situation and re situation, whichprovides real-time decision-making basis for timely dispatching of reprevention and patrol forces to achieve the closed-loop managementof re prevention from discovery, assignment, handling to feedback.After half a year's operation, the system has discovered more than 30real mountain res, and e?ectively controlled the occurrence of res,thus achieving the "early, timely and thorough" prevention of forest re.Meanwhile, the average number of res discovered every day duringthe re prevention period decreased by 80% compared with the initialperiod. Illegal re use has been e?ectively controlled, villagers' aware-ness of re prevention has been improved, and 1400 square kilome-ters of forest resources in the city have been safeguarded.
Digital intelligence fishing ban to protect "thebeauty of clear water and nice fish" with scienceand technologyAiming at the pain points of frequent illegal shing at night, and smallboat shing di?cult to be discovered and di?cult to be dealt with bylaw enforcement in time, Dahua has built a shery administration su-pervision system based on the perception ability of IoT and applieddigital intelligence high-tech power to curb illegal shing so as to real-ize automatic prevention of illegal shing, intelligent early warning ofillegal vessels and closed-loop business of process handling, improvethe response and handling e?ciency of illegal incidents, and help sh-ery administration law enforcement departments to carry out intelligentand rened shing ban.In order to help Dongting Lake achieve a complete ban on shing, Da-hua has built a shery administration supervision system for DongtingLake. Through the empowerment of intelligent thermal imaging tech-nology, the discovery time is greatly shortened. Even in the dark night,it can immediately determine the real-time position of illegal shing, thedirection of ships and surrounding conditions, so as to realize accurateprediction and early warning. Remote patrol coverage of the lake withthe help of high-altitude trinocular thermal imaging can reduce thehardships of law enforcement personnel. In virtue of Dahua FisheryAdministration Supervision Platform, real-time perception of the be-havior of important points and waters is available to enable timely dis-covery of boats along the lake and illegal shing behaviors and quickprocessing, so as to improve the e?ciency of law enforcement. In thenine months since the operation of the system, more than 150 illegalshing behaviors have been found, e?ectively protecting the safety ofshery resources and water ecological environment, and ensuring theaquatic ecological security of Dongting Lake and Yangtze River.
Empowerment by Digital Intelligence for Greatness
Empowerment by Digital Intelligence
Green technology innovation to protect the bal-ance of ecological environment.
Protect the ecological environment with digital intelligence technologyand practice the social responsibility of enterprises. All along, Dahuahas been vigorously promoting green technology innovation in the eldof hazardous solid wastes and xed pollution sources of the ecologicalenvironment, aiming to improve the ecological environment monitoringsystem, enhance the modernization of monitoring capacity, and pro-mote the development of a beautiful China!Whole-process supervision of hazardous solid wastesBy comprehensively strengthening the whole process and visual su-pervision of solid wastes, the environmental risks can be effectivelyprevented and controlled. Advanced technologies such as big data,IoT, video analysis are integrated to realize the modernized, rened, in-telligent, and real-time closed-loop management of the whole processof hazardous waste generation, transfer and disposal.Supervision of xed pollution sourcesThrough the integration of video AI and IoT sensing application tech-nology, achieve the intelligent monitoring and early warning of variousscenarios, especially that of sewage outlets, prevent the occurrenceof various incidents such as illegal discharge, excessive dischargeand human interference on online monitoring, improve the intelligentapplication level of prevention and regulation of xed pollution sources,accelerate the transformation of pollution prevention from post-eventprocessing to proactive early warning and prevention, and improve themonitoring system.
Prohibiting straw burning, and building a security"rewall" with digital intelligence
Aiming at the pain points and di?culties of the falling behind supervision,and low e?ciency and di?cult law enforcement of straw burning, Dahuatakes the prevention of straw burning as the starting point, and hasestablished a monitoring and early warning system of straw burning pro-hibition through intelligent image recognition technology, GIS geographicinformation technology, integrated communication technology, thermalimaging and other advanced technologies under the policy guidance ofthe Outline of the 14th Five-Year Plan (2021-2025) for National Econom-ic and Social Development and Vision for 2035 of the People's Republicof China, so as to carry out real-time monitoring and e?cient supervi-sion of straw burning prohibition. The prohibition of straw burning haschanged from "people on guard" to "technology and people on guard",which has improved the e?ciency and e?ectiveness of burning ban andreduced unnecessary social losses. At present, the system has beenbuilt in Zhangjiakou and Xiong'an New Area of Hebei, Shandong, Hubei,Sichuan, Shanxi, Liaoning, Guangxi, Anhui and other provinces.Full-link food supervision with AI guarding thesafety of foodIn combination with the national plan to deepen reform and strengthenfood safety, Dahua has launched a full-link supervision solution forfood production, circulation, storage, and trading, involving multiplelinks and scenarios such as sunshine factory, smart cold chain, smartfarmers market and see-through kitchens, so as to create a food safetyinformation platform for big data analysis, focus on promoting the ap-plication of big data, IoT, articial intelligence and other technologiesin the eld of food safety supervision, and implement intelligent super-vision. The solution puts emphasis on promoting the comprehensive
Helping EPA, Panama's leading food processingenterprise, strengthen food safety.In the post-pandemic era, life and health have become key words.Mankind has to guard against not only the rising non-traditional secu-rity risks, but also the huge crisis caused by the overlapping and inter-weaving of non-traditional security risks and traditional security risks.Dahua has helped Empresa Paname de Alimentos (EPA), Panama'sleading food processing enterprise, deploy a set of video surveillancesolutions, which has been applied in temperature monitoring, accesscontrol, attendance management, perimeter protection and AutomaticNumber Plate Reader (ANPR) in the post-pandemic era, and enabledrecord management on an integrated platform for all equipment, eventalarm and user reports, so as to strengthen food safety and pandemicprevention and control. In addition to Empresa Panamena de Alimen-tos (EPA), Dahua has also helped many retail enterprises around theworld operate safely and contributed to food safety and pandemic pre-vention and control in various countries.
Intelligence to bring benets to people's livelihood, andAI to promote peace and health care for the elderly.As China has gradually entered the aging society, the central govern-ment and local governments have attached more importance to thedeepening deployment and development of the elderly care. In viewof the characteristics of China's elderly care, Dahua has launched"Internet+" and "AI+" smart elderly care solutions that include di?erentcare models including home-based care, community care and institu-tional care, covering di?erent scenarios including living rooms, activityrooms, canteens, and community activity centers, so as to realize re-al-time monitoring and early warning of activity tracks, physical healthconditions and abnormal emergencies, and solve a series of problemslike the shortage of nursing staff, lack of intelligent IoT equipment,under-developed management methods and lagging professionalservices. More comprehensive and intelligent safety care measureshave been provided to help the responsible institutions and govern-ment departments improve management e?ciency, promote the rapiddevelopment of intelligent elderly health care industry in many aspects,improve the standard system of elderly care services and speed upthe implementation, and promote intelligent and convenient elderlycare services. At present, Dahua has facilitated the implementation ofprojects in Guangzhou, Shenzhen, Huzhou and other regions in thecountry.
implementation of schools' "See-through Kitchens", strengthening thesupervision upgrade required by the surge of online ordering due tothe pandemic, enhancing the food safety supervision of take-out mer-chants, realizing the intelligent visual supervision of food safety withfull-scenario coverage, whole-process tracking, full-link connection andthe participation of the whole society, further improving the food safetysupervision system of risk analysis and supply chain management,and improving the intelligence and informatization level of supervision.At present, Dahua has promoted the implementation of the "ZhejiangFood Chain" and "Wuhua Smart Market" in Zhejiang, the smart coldchain project in Shandong, and many other projects such as Transpar-ent Kitchens in Henan and Hubei. The IoT sensing application tech-nology can help achieve the intelligent monitoring and early warningof various scenarios, especially that of the sewage outlets, prevent theoccurrence of various incidents such as illegal discharge, excessivedischarge and human interference on online monitoring, improve theintelligent application level of prevention and regulation of xed pollu-tion sources, accelerate the transformation of pollution prevention frompost-event processing to proactive early warning and prevention, andimprove the monitoring system.
Empowerment by Digital Intelligence for Greatness
Empowerment by Digital Intelligence
Empowering the smart retail logistics center
Dahua has helped Pets Corner, the second largest pet chain in the UK, openan updated and more environmentally friendly smart retail distribution center inHandcross, West Sussex County, serving its 150 stores. Dahua has designed anddeployed a 64-camera video surveillance system for employees, vehicles andwarehouse management in the logistics center of Pets Corner, which has e?ec-tively simplied their operation."Dahua's support for us throughout the project has been remarkable, and weare deeply impressed by the excellent manufacturing quality of the equipment,"said Andy Lloyd, director of Pets Corner's urban security system. Graham Denny,Logistics Director of Pets Corner, also praised, "Dahua has provided us with ex-cellent video images, and the software can be easily used on my laptop, desktopcomputer and mobile phone at the same time. Therefore, I highly recommendDahua CCTV system to any group with similar needs."With the help of the outstanding performance of the video surveillance system ofDahua, Pets Corner can focus more on what they do best and help their custom-ers.
Helping a time-honored real estate management companyrealize smart parking
MTS is a leading real estate management company with a history of 20 years. Ithas 600 employees and experts in real estate management, real estate consult-ing, market research and owner representatives. As the world's leading intelligentIoT solution and service provider with video as its core, Dahua has customizedan integrated parking solution for MTS to help manage Santillana building moreintelligently. Through a variety of innovative products and advanced technologies,Dahua has realized the real-time monitoring of parking spaces, license plate rec-ognition, and the display of parking space status with di?erent indicator colors, soas to help the building manage parking and respond to incidents more e?ciently,quickly and easily. At the same time, the LED screen of each parking oor dis-plays the automatically calculated number of available parking spaces, whichhelps drivers nd parking spaces quickly. Drivers can also locate their own vehi-cles through the reverse car nder. In the future, Dahua will also help enterprisesand operators around the world upgrade their parking management systems,achieve e?cient parking management, and enable people to get a more conve-nient parking experience.
Dahua Huayu Public Welfare Development Center
Established on September 24, 2021, Dahua Huayu Public Welfare Development Center is a social organization dedicated to social service andpublic welfare activities. With the aim of "Dedicate love. Help others. Serve the society", it has cultivated Dahua people to establish a social styleof unity, fraternity, willingness to help others, and being courageous and seless. With the leadership of the Company and the help of the society, ithas become a social organization focusing on teamwork and full of spirit for voluntary service, and a practical organization with strong will power.
Delivering the light of life with love - Blood dona-tion activities in public welfare seasonIn order to fully demonstrate the warm-hearted love of Dahua people,the Party committee of Dahua launched blood donation activities inDahua 1199 Park, 1181 Park and Fuyang Base on July 5, 2021. A to-tal of 528 people signed up to participate, and 402 people successfullydonated blood, with a cumulative blood donation of 119240 ml. Dahuapeople have actively promoted the spirit of voluntary blood donationand supported public welfare activities with practical actions. Everyblood donation is a relay of life. Every beat is a spark of hope.
Public Welfare Activities
Empowerment by Digital Intelligence for Greatness
Public Welfare Activities
Rushing to Henan for emergency relief
In July, 2021, rare extreme rainstorms broke out in many places inHenan, resulting in serious waterlogging in Zhengzhou and other cit-ies. The grim ood condition was felt by people all over the country,and rescue was imminent.On July 21, Dahua decided to donate ve million RMB to ZhengzhouRed Cross Society for ood relief, protection of a?ected people andpost-disaster recovery in Henan.As soon as the ood occurred, Dahua Henan related regions respond-ed quickly, set up an emergency support team, organized employeesto participate in the rescue while ensuring their own safety, assistZhengzhou, Kaifeng, Jiaozuo, Zhoukou and other places to provide7×24-hour on-site technical support and protection services, fully co-operating with local authorities in emergency ood control, strictly pre-venting secondary disasters and minimizing people's life and propertylosses.
Love warms the children and their New Year - Con-dolence activity held with Service Center for theDisabledIn order to further support the family security of disabled children withdifficulties, ensure that disabled children spend a warm and happySpring Festival and promote the traditional virtues of the Chinese na-tion to help the weak and the disabled, Zhejiang Dahua TechnologyCo., Ltd. and the Municipal Comprehensive Service Center for the Dis-abled visited 20 families of disabled children with di?culties in our cityon December 30, 2022, sending warmth and care to them.
"Clothes for love. Books for warmth" - Clothing do-nation activities in public welfare season
On September 27, 2021, Dahua Huayu Public Welfare DevelopmentCenter joined hands with Zhejiang Lions Clubs Yuanmeng ServiceTeam to organize a public welfare project with the theme of "Clothesfor love. Books for warmth". This activity was held simultaneously in1199 Park, 1181 Park and Fuyang base, lasting for 2 days, duringwhich 475 pieces of clothes and 200 books were collected.
Signing strategic cooperation with the educationcenterOn September 7, 2021, Zhejiang Dahua Technology Co., Ltd. donatedone million RMB to Hangzhou Binjiang District People's EducationFoundation.Empowerment by Digital Intelligence for Greatness
Public Welfare Activities
In the process of rapid enterprise development, Dahua insists on scientic and technological innovation as the strategic support for high-qualityenterprise development, and about 10% of the Company's annual sales revenue is invested in research and development. With Hangzhou head-quarters as its center, the Company has established R&D sub-centers in Xi'an and Chengdu of China, Poland and Mexico, deployed global R&Dforces, met the growing business needs, and made continuous breakthrough contributions to lead the industry development with persistent innova-tion capability.
Hard Work for High-quality Development
Innovation and Research
R&D Innovation System
In 2021, the Company continued to increase e?ective and high-qualityinvestment in R&D. Based on Dahua Think# strategy, it adheres tothe two technical strategies of AIOT and IoT Digital Intelligence Plat-form with five research institutes of advanced technology, big data,central, cyber security and smart city as the underlying support, andpromotes implementation of urban solutions and enterprise solutions
Innovative Talent StrategyAdhering to the talent strategy, the Company is commit-ted to building a diversied innovation culture and culti-vating a high-performance R&D team with the courageto break through and innovate. Dahua has been vigor-ously developing innovative method empowerment andpractice activities represented by TRIZ, and graduallyintegrating the application of innovation methods intothe technological development process. At present, theachievements of Dahua's outstanding practice projecthave won the rst prize of Zhejiang Innovation MethodsCompetition for ve consecutive years and won the rstprize of National Innovation Methods Competition formany times. Dahua has launched the leading plan tostrengthen the development of expert team which cov-ers various industries and elds, and focused on coretechnology breakthroughs, so as to further enhancethe Company's industry competitiveness and leadingposition through the superb technology, products andscenarios of application. A large reward is o?ered forholding internal competitions such as R&D innovationconference, software OJ league, and eld technologycontest, which has created a favorable atmosphere ofdaring to break through and innovate, and constantlystimulated the innovation vitality of talents, so as toprovide talent guarantee for the Company's high-qualitydevelopment.
with R&D in AIOT product and software platform, so as to deepen the"5 Full" digital intelligence capability of full sensing, full intelligence, fullconnection, full computing, and full ecosystem, empower a variety ofindustries and support the sustainable, green and high-quality devel-opment of economy and society.
Hard Work for High-quality Development
Innovation and Research
Technology Ecosystem
Adhering to the concept of full ecology and exible technology frame-work, the "Technology Ecosystem" has been developed to realize thefull-link technology open system including open software platforms,open industry solutions, open AI platforms, and open DHOP. A total of1000+ technology partners have been developed, integrating indus-tries and collaborating on innovation, to drive the ecosystem with tech-nology and accelerate the construction of an ecosystem of new digitalintelligence industry cooperation.
Industry-University-Research CooperationThe Company continues to strengthen cooperation and exchange withnational well-known universities to jointly promote new technologicalrevolution. In 2021, the Company signed a university-enterprise stra-tegic cooperation agreement with the College of Information Science& Electronic Engineering of Zhejiang University for in-depth cooper-ation in talent training and joint innovation, so as to push forward thehigh-quality development of "industry-university-research-application"collectively. It also joined hands with Hangzhou Dianzi University toestablish the Intelligent Information Processing Engineering ResearchCenter, thereby deepening the all-round technical and engineeringresearch cooperation in the elds of AI technology and AI developmentframework. In addition, the Company teamed up with a number ofuniversities, including Zhejiang University, Sichuan University, XidianUniversity and Xi'an Jiaotong University, to set up the University DahuaScholarship, thus making due contribution to the talent cultivation ofChinese universities.
Standard Development and Intellectual PropertyRightsDahua has actively participated in the development of standards,leading and participating in the preparation of 28 standards in 2021,and winning the first prize of the Science and Technology Award ofthe China Communications Standards Association. The Company iscommitted to green technology innovation for the protection of ecolog-ical balance, including the approval of the international standard Re-quirements and Reference functional model of IoT-based smart forestreghting system, compiled under its leadership, and the publicationof the rst green packaging group standard for the security industry T/ZJAF 9-2021 Technical Specifications for Green Packaging of Elec-tronical Security Products.
In the era of knowledge-driven economy, the market competitionamong enterprises has shifted to high value-added technology andbrand competition. Innovation is the primary driving force in leadinghigh-quality development, and the protection of intellectual propertyequals to the protection of innovation. The Company attaches greatimportance to the protection of intellectual property, and has selectedand commended teams and individuals with outstanding contribu-tions to technological innovation for 10 consecutive years, providingeffective incentives for innovation; it has continuously improved itsintellectual property management mechanism and actively carried outthe application and maintenance of patents, software copyrights andtrademarks; through strategic patent layout for core technologies andhigh-quality patent incubation, it has accumulated high-value patentassets to provide strong support for its market competitiveness. Duringthe reporting period, 975 patents were granted, of which 498 patentswere for inventions, accounting for 51%, up by 114.6% year-on-year.Engineering Experiment CenterDriven by innovation and prioritized on quality, the basic researchand engineering experiment capability of Dahua Engineering Ex-periment Center provides strong support for technological innova-tion. In 2021, more than 30 new instruments and equipment wereinstalled to increase the number of research and testing capabilityitems by more than 40. In particular, the newly acquired high-endinstruments and equipment such as x-ray and scanning electronmicroscope enhanced the level of technical research in materialmicroscopy. In line with the Company's development directionof reducing energy and resource consumption, new areas such
as energy digitization and integrated simulation were extended,boosting the ecological development of technological innovation.During the reporting period, Dahua Industrial Design Center, basedon the Engineering Experiment Center, was successfully awarded the"National Industrial Design Center" by virtue of its leading design inno-vation capability in the eld of intelligent IoT. Currently, Dahua Indus-trial Design Center has formed a professional hierarchical structure,taking basic research and innovative design as its core, continuouslystrengthening its industrial design capabilities, improving its industrialdesign innovation system, and actively promoting the process of in-depth empowerment of industrial development with industrial design.
Patent forinvention
SoftwarecopyrightDesignpatent
TrademarkUtility mod-el patentNew498 pcsAccumulated1234 pcs
New289 pcsAccumulated1338 pcs
New122 pcsAccumulated977 pcsNew188 pcsAccumulated885 pcs
New130 pcsAccumulated804 pcs
Hard Work for High-quality Development
Innovation and Research
Open Software Platforms,Open Industry SolutionsOpen AI platforms, Open DHOP...
TechnologyEcosystem
1000+
Articial Intelligence Ecological Cooperation
As the AI industrialization at scale represents a eld with considerableopportunity, the Company should work together with its partners andcustomers to build an AI industrial ecosystem. The Company providestargeted empowerment tools for partners with different levels of de-mand, thus accelerating the process of AI industrialization.For customers with insufficient AI development capability, the Com-pany provides Jinn AI open platform, enabling customers to use theirown data to train scenario-based private algorithms. Simply throughthe four steps of labeling, training, verication and deployment, privatescenario-based algorithms can be customized to meet business needs,reducing the threshold and cost of AI development, which has beenimplemented in Dahua Cloud public cloud and corporate privatizationsolutions.
Articial Intelligence Global RankingDuring the reporting period, Dahua was ranked rst in multiple global rankings in AI eld.
Meanwhile, for various partners with solution development capabilities,including integrators, the Company provides more than 300 commer-cial algorithm solutions for typical scenarios so as to help customersquickly complete the transformation of AI industrialization.With so many AI chip manufacturers and different chip capabilities,algorithm deployment can be time-consuming and laborious. TheCompany provides Jinn NNX, an algorithm deployment tool, as a one-click optimization deployment solution for algorithm manufacturers withcertain algorithm development capabilities. Jinn NNX now covers morethan 70 types of network structures and over 40 kinds of chips, andhas been delivered to dozens of domestic and international manufac-turers, facilitating the rapid productization of customers' self-developedalgorithms.
Articial Intelligence Global RankingFirst in Text Recognition?ICDAR 2019 ReCTS (Reading Chinese Text on Signboard), Character Recognition and Text Line Recognition
First in Gait Recognition?CASIA-B Gait DatasetFirst in Segmentation
?Cityscapes Dataset - Instance-Level Semantic Labeling Task Instance Segmentation Task?COCO Detection Challenge (Segmentation Mask, Test-dev) Instance Segmentation Task
?Inria Remote Sensing Image Urban Building Segmentation Dataset?Weakly Supervised Semantic Segmentation for Lung Adenocarcinoma
Competition?Giga Detection: Object Detection Meets Gigapixel Videography (ICIP 2021 Workshop), First in Comprehensive Performance
?Giga Tracking: When Multi-Object Tracking Meets Gigapixel Videography (ACM MM 2021 Workshop), First in ComprehensivePerformance?ICCV DeeperAction Challenge - FineAction Track on Temporal Action Localization, First in Video Motion Detection Competition
First in Target Detection
?MSCOCO Dataset - CoCo Detection Challenge (Bounding Box), Comprehensive Performance Ranking in Target DetectionFirst in Target Search
?VERI-Wild Vehicle Image Search Dataset
Hard Work for High-quality Development
Innovation and Research
Online labeling toolsSemi-automated labeling
services
Online verication of
model e?ectContinuous iterationand optimizationGPU training clustersAutomatic optimizationof parameters andnetworks
End-edge-cloud supportMulti-platform deploymentLabelTrainingVericationDeployment
Security Organization and StructureDahua has established a systematic professional security team tosecure cyber security in all execution units through the hierarchical or-ganization structure, covering R&D, market, supply chain, and deliveryand service.
The integrated development of such technologies as cloud comput-ing, big data, IoT, AI and 5G, pushes human society into the era ofAIOT. While emerging technologies are driving human progress,the open and heterogeneous network architecture also poses newthreats and challenges. In order to cope with cyber security threatsand challenges, Dahua has established the Cyber Security ResearchInstitute, which focuses on the continuous development of core secu-rity technologies, emerging privacy technologies, security engineeringcapabilities, and security ecological cooperation, and is committed toproviding customers with more secure products and solutions, andrapid security emergency services.
Cyber Security
Cyber Security Man-
agement System
Privacy ProtectionManagement System
SecurityManage-
ment
Security Engineering Capability
SecurityEngineer-
ing
Core Security Tech-nology
Emerging Privacy
Technology
SecurityTechnolo-
gy
Incident ResponseSecurity Ecology
SecurityService
Research Center
Cyber Security
Research Institute
DPO
......
Cyber SecurityCommittee
Front Product LineSecurity Engineering GroupStorage Product LineSecurity Engineering GroupSoftware Platform SecurityEngineering GroupBig Data SecurityEngineering GroupResearch CenterDomestic Marketing CenterOverseas Marketing CenterSupply Chain Management CenterLegal DepartmentSecurities Investment DepartmentDelivery and Service Center
? As a supreme decision-making organization of cyber security, ourcyber security committee is the leadership decision-making institutionof cyber security under the leadership of the Board of Directors and isresponsible for overall planning, coordinating, guiding and monitoringcyber security work at a strategic level.? As a joint executive team across business, the cyber security ex-ecution group is responsible for leading discussion and formulatingmechanisms and strategies relevant to cyber security at a tacticallevel, and for developing, tracking and processing daily cyber securityat an executive level.It covers research, market, supply chain, deliveryand service, and legal service, and quickly implements Dahua's cybersecurity resolutions in every of its business systems.
? The Cyber Security Research Institute, as an entity organization,undertakes research on key security and privacy technologies, securityengineering capacity building, and security ecology construction, re-sponsible for the implementation of security and privacy requirements,security and privacy risk assessment, security and privacy design,penetration testing, vulnerability management, and incident response,as well as the development of security process systems and securitycompliance systems.? A cyber security engineering group is set up for every product lineto closely interact with the Cyber Security Research Institute, so asto achieve the rapid implementation of security standards and regula-tions, security and privacy technologies, and vulnerability repair andhandling across all products.
Hard Work for High-quality Development
Cyber Security
Security Engineering Capability Building
With introduction of the best security practices in the industry, Dahua has established a full set of sSDLC security software development process-es, and fully implemented them in the R&D center. Through e?orts of the professional security team, the capabilities on the whole process of secu-rity management covering the security and privacy demand, assessment, design, coding and testing of products and solutions are realized and thesecurity strategies are implemented, to ensure that all products are developed in compliance with high-standard security requirements and passrigorous o?ensive and defensive testing and verication.
Secure Products and Solutions
Security Capability SupportsSecurity Standards andSpecications
Security Technology and
Capability Library
Security Tools
Security Governance (Cyber Security Committee)Policy and ComplianceStrategy and Measurement
Basic Security Support
Network Layer Security DevicesApplication Layer Security Devices
sSDLC (Security Software Development Life Cycle)
Security Demand
Security Training
SecurityDesignConguration Management (Security, Consistency, End-to-end Traceability)
SecurityTestPenetrationTestSecurityRealization
ReleasePreparation
SecurityIncidentResponse
CDP LaunchLife CycleConceptDesign and PlanningDevelopment and TestVerication and Release
Charter
TR1TR2TR3TR4TR5TR6TR4B
PDRADRLDR
Continuously Evolved and Comprehensive Security Baseline
Since the launch of the "Security Baseline" plan in 2016, Dahua has been adhering to the core principles of "Security by Design" and "Security byDefault", digging deep into product security technologies, and dedicating to providing comprehensive security guarantee for users.With the Security Baseline based on and practicing the design principle centering on security and privacy, Dahua has constructed a product secu-rity layout of "AAA+CIA+P", forming a systematic security framework covering physical security, system security, application security, data security,cyber security and privacy protection.The "AAA+CIA+P" security elements are laid out as follows:
- AAA: Authentication, Authorization, Audit- CIA: Condentiality, Integrity, Availability- P: Privacy ProtectionTo ensure the adequacy of the Security Baseline, the Company has carried out a series of activities such as "Compliance with Laws and Regula-tions", "Standards and Specications Study", "Tracking Industry Dynamics", "Threat Modeling Analysis", "Key Technology Pre-research", and "Se-curity Demand Survey", to continuously output e?ective and high-value security demands for the Security Baseline.As one of the important corporate standards of Dahua, the Security Baseline has been an integral part of Dahua's life-cycle management processof security software development, and deeply integrated into the product quality assurance system to make sure default security technology guar-antee for the full series of products.During the reporting period, the Security Baseline was iterated to V2.2.
Hard Work for High-quality Development
Cyber Security
Security Awareness Promotion and Talent Cultiva-tion
During the reporting period, Dahua actively responded to the nationalcall and held the Dahua Cyber Security Promotion Month in Septem-ber 2021 with the theme of "Cyber Security for the People, CyberSecurity by the People, and Dahua Security by Everyone". This CyberSecurity Promotion Month adopted both online and o?ine posters andon-site interactions to convey global cyber security laws and regula-tions, standards and policies to all employees of the Company, andto enhance their awareness and vision of cyber security through Q&Aand suggestion collection activities.
Continuously Upgraded Security BaselineAuthenticationAuthorizationAuditCondentialityIntegrityAvailabilityPrivacy Protection
Security Baseline
V1.0Security Authentication
Strong Password
StrategyRestricted/Trusted ListDigital Envelope
+ ……
Security Baseline V1.1
+ Anti-Brute Force+ Session Protection+ Service Minimizing
Strategy+ Custom PermissionManagement+ Sensitive DataEncryption and Storage+ ……
Security BaselineV1.2+ No DefaultAccount+ Built-in Firewall+ Security Shell+ Reliable Upgrade+ Reliable OperatingEnvironment
+ ……
Security Baseline
V1.3+ Privacy Protection
Security Baseline V2.0
+ Secure Start+ Firmware Encryption+ Stream Encryption for
Transmission+ Secure Alarm Linkage+ Open-source Software
Control+ ……
Security BaselineV2.1+ Wireless Security+ Encryption Func-tion Optimization+ ……
Security BaselineV2.2+ AI Feature Protection+ ……v1.0v1.1v1.2v1.3v2.0v2.1v2.2
Dahua attaches great importance to the cultivation of cyber securitytalents and continues to step up investment in cyber security develop-ment. In the 2021 Hangzhou Regional Cyber and Information SecurityAdministrator (Cyber Security Administrator) Vocational Skills Com-petition, three colleagues from the Cyber Security Research Instituteswept the top three. The rst prize winner was awarded the TechnicianVocational Qualication Certicates of Cyber and Information SecurityAdministrator (Cyber Security Administrator) after the qualificationverication, as well as the title of "Hangzhou Technical Expert" by theMunicipal Bureau of Human Resources and Social Security.
Professional Product Security Incident Response Team
Dahua Product Security Incident Response Team (PSIRT) is responsible for the management of the security environment and product vulnera-bilities in accordance with the industry practices. We o?er 7*24 service to respond to global security issues and timely provide security notice andreinforcement services. Ensure that security issues reported to Dahua through o?cial channels can be responded to within 24 hours, or 48 hoursat the latest.
CustomerCERT or Other
Interested
Parties
Customer
InternalSupplierSecurity Team
Dahua PSIRT
Dahua PSIRT
Vulnerability
Collection
Authorization
SecurityEvaluation
Retention
Analysis, Verica-tion and Repair
Clear
Disclosure
DahuaPSIRTVulnerability
Library
PDTLMThttps://www.dahuatech.com/service/network.html
Hard Work for High-quality Development
Cyber Security
As for the management of security issues, Dahua PSIRT adopts SN(Security Notice) and SA (Security Advisory) for customer communica-tion to make sure that customers are properly informed of such issuesat di?erent stages.Dahua PSIRT constructs disclosure processes for security vulnerabil-ity, security advisory and security notice for all the products in accor-dance with ISO/IEC 30111:2013 Vulnerability Handling Processes, andISO/IEC 29147:2018 Vulnerability Disclosure, among other standards,and encourages end customers, partners, suppliers, government bod-ies, industry organizations and independent researchers who nd anypotential risk/vulnerability to take the initiative to report the securityvulnerability to us.Dahua PSIRT actively participates in various industry and public ac-tivities, and keeps a positive and open attitude towards exchange andcommunication with government CERT, customer CERT/PSIRT, othersuppliers, researchers, and third-party coordination units. By joining
the Forum of Incident Response and Security Teams (FIRST), interna-tional CVE Numbering Authorities (CNAs), China National VulnerabilityDatabase of Information Security (CNNVD), China National Vulner-ability Database (CNVD), China Cyber Threat Governance Alliance(CCTGA), Industrial Information Security Incident Services SupportUnit, and other information security organizations, Dahua plays its fullrole as a member in promoting intelligence sharing and handling coor-dination in dealing with cyber security threats.In 2021, the Company was awarded the honor of "Outstanding Con-tributor to Vulnerability Handling" by the National Computer NetworkEmergency Response Technical Team/Coordination Center of Chi-na (known as CNCERT/CC)/China National Vulnerability Database(CNVD) for our outstanding contributions to vulnerability detection andhandling; in addition, the Company was shortlisted as a technical sup-port unit for the China National APP Vulnerability Database (CAPPVD)of the Ministry of Industry and Information Technology.
Equipped with Information Systems Compatiblewith the StrategyHardware Network SystemIn order to build a safe, stable and sustainable information systemenvironment, Dahua has now established multiple data centers: Hang-zhou Headquarters Data Center, Xiaoshan Telecom Data Center,Hangzhou Iron and Steel Group Company Mobile Data Center, andAWS Data Center with multiple nodes on overseas clouds (Singapore,Germany, Brazil) and multiple availability regions. With dedicated net-work links, dedicated POP points and Internet links, accelerated bySDWAN, redundancy deployment of the ring network globalization hasbeen achieved, to ensure the reliability of the data center networks. Interms of network core and convergence, dual redundancy has beenadopted to guarantee the speed and stability of the intranet.Based on the design of links and hardware redundancy architecture,automatic switching of failed single link to standby link is realized,enabling backbone services to be fully online and no perception of au-tomatic switching by users; based on the deployment of the softwaremanagement system, full coverage of business scenarios is realized;based on the construction of data lake and data warehouse, full con-nection of data and timely access to information is achieved; throughthe ITSM hotline service, 7*24 services and self-service for internalusers are provided, and through applications such as the portal/App,information inquiry self-service is provided for external customers, sup-pliers and partners. The Company keeps increasing its investment inhardware to support the framework of global business operation.Software Management SystemCurrently and for a long time to come, the IT architecture of Dahua willfollow a hybrid architecture model: traditional holistic architecture + mi-croservice mid-platform architecture + cloud computing base + AI/IoTapplications. In terms of the application system, the Company recon-structs and connects various "chimney" systems through the businessmid-platform to establish various shared service centers and realizethe digital accumulation of business capabilities; through the construc-tion of data mid-platform and data lake, the Company builds the datasharing platform for the group, realizing the centralized managementof at-most-once data extraction and improving the reuse rate of data,to e?ectively avoid data isolation and provide digital basis for manage-ment decisions. The technical architecture of the data mid-platformadopts a convergence structure to realize the unied management andimplementation of data standards, data governance and data directory,while providing data services in the form of microservices to ensure thedata consistency of each application system.
low). The Company selects premium software and hardware suppliersand their products, and builds information systems that meet industrycharacteristics and business needs. By working closely with suppliers,training software and hardware maintenance personnel, and engaginginformation system users, the Company ensures the reliability, security,and ease of use of information system software and hardware.
Ensuring the Reliability, Security and Ease of Useof Software and HardwareThe Company has formulated relevant regulation documents such asDH IS 009 Information Asset Condentiality Management System, DHIS 017 Anti-virus and Malware Management Regulations and DH IS 022Data Backup Management Regulations to well manage data, informa-tion, software and hardware, and improve the reliability, security andease of use of data and information management software and hard-ware, thus ensuring that the information system infrastructure meetsthe Company's strategic development requirements (see the table be-
Reliability
? The Company adopts the dual outlets of Telecom andUnicom for its Internet outlets, and has established a mainserver room and a backup server room. The entrance isconnected to the redundant link from AliCloud through adedicated dual server room link, with entrance from AliCloudto ensure the security and reliability of link access. Theserver rooms are equipped with dual utility power and highlyreliable UPS system power supply to ensure the stabilityof the Company's network infrastructure and businesssystems;? All key business systems are designed with disasterresponse solutions to ensure stable operation of informa-tion systems and data security at any time and under anycircumstances. In case of a disaster, information systemscan be quickly migrated or recovered;? A reliable data backup and recovery plan is adopted fornon-critical business systems, with all data kept with remotestorage backups; regular drills are performed to check therecoverability of backups.
Security
? Based on the four major components of the SecurityBaseline for terminal access detection by access devices,namely, antivirus software, DLP, access system, and wa-termarking system, the security requirements of terminalsaccessing the internal network of enterprises are fullled;virtual desktop systems are deployed for key positions; andthe deployment of data backup systems are strengthened;? The data centers have deployed blacklist and whitelist,and port minimization policies, and so forth. Meanwhile,security devices, rewalls and WAFs, among others, aredeployed at data center boundaries, to shield high-riskports, and turn on security modules such as IPS, AV, andWAF to guarantee secure and controllable business.? Due to its global development strategy and the ercemarket competition demand, Dahua was awarded ISO/IEC27701 Privacy Information Management SystemCertication, ISO27017 Cloud Security Certication andISO27018 Public Cloud Personal Information ProtectionCertication by the British Standards Institution (BSI);? The accreditation of these three certications signiesthat Dahua products have been recognized by internationalauthorities in terms of security, accuracy and transparencyin handling personal information;? The Company also possesses the ability to operate andmanage public cloud business. Dahua is the rst companyin the security industry to obtain such certications, whichfully demonstrates its foresight and continuous practice indata security and privacy protection.
CategoryDescription
TableReliability, Security and Ease of Use of Information Systems
Hard Work for High-quality Development
Building a Secure and Reliable IT Architecture
Building a Secure and Reliable IT Architecture
Reliability: By building such infrastructure as redundancy, high availability, and backup recovery, ensure the high availability of perfor-mance, and smooth and reliable continuous operation of data centers, network links, and computing storage of system applications (seethe table below).
Security: By building an information security system architecture, defend against external risks, prevent internal vulnerabilities, and sus-tain security operations, so as to ensure the security and solidity of Dahua's business (see the gure below).
Plan the construction of data centers andclouds in a unied manner to improvethe physical environment for stableoperation of information systems andenhance reliability.
Build a network architecture that matchesthe distribution of application systemsand data centers; realize the redundancyof globalized networks and data centerbackbone; improve the load balancingcapability of network ows; and enhancesecurity and network reliability.
By planning and integrating server com-puting resources and storage resourc-es, realize shareable, easily scalableand exible back-end resources thatcorrespond to application system deploy-ment, and enhance high availability andreliability of business.
Data Center + CloudNetwork and LinkComputing and Storage
Table Reliability - Data Centers, Network Links, Computing Storage
Figure Security - Information Security System ArchitectureGeneral policy of information security: Strengthen internal and external security risk management to meet the requirements
of rapid corporate development; enable continuous improvement to ensure solid business operation.
Information Security Organizations byDepartment
Third-Party Audits & Compliance Testing
Technical Systems
Physical SecurityCyber SecuritySystem SecurityData SecurityTerminal SecurityApplication Security
Operating System
External Threat DefenseBusiness ContinuityInternal Vulnerability
Management
Disaster DrillIncident and Incident
Response
Access Control
Management
Security Capability Supports
SecurityOrganization
Promotion, Implemen-
tation and Training
Safety InspectionInstitutional Process
Risk Assessment
InformationSecurity Awareness of Sta?
Preventing InternalVulnerabilities
Defending Against External RisksConsolidating Platform Stability and ComplianceThe information securitytechnology defense safe-guards information assetsand maintains competitiveedges.
Defend against external attacks and com-petitors' stealing of secrets, and enhancesecurity strength in the industry; fulfill auditrequirements and comply with laws and reg-ulations, full of social credibility.
Improve the information security management system to supportbusiness continuity; build an information security audit and mon-itoring system, strengthen promotion and implementation amongall sta?, enhance sta? awareness of information security, preventinternal leakage of secrets and ensure sta? behavior compliance.
Management Systems/Technical StandardsDevelopment/OrganizationBuilding
? Establish regulations on information security to ensurethat security works are guided on a legal basis.? Clearly dene responsibilities and establish a top-downpromotion mechanism.? Populate laws and regulations and advocate law-abidingto form sound security awareness.Risk Assessment/Process Monitoring
? Identify and dispose of security risks.? Apply information security technologies exibly? Monitor behavioral trends to perceive risks and givealerts timely.Security Inspection/Compliance Audit
? Discover non-compliance of actual operations andpropose corrections in time to promote the implementation,improvement and upgrade of security policies.Security Assessment andAccountability
? Enhance the awareness of security responsibility andlevel of attention to security responsibilities.? Promote the implementation of security works.Security Culture/Awareness Promotion
? Shape a sound corporate security culture.
Security Operations
Module
Function
Examples ofKey ActivitiesManagement of Key PositionsSystem Revision and ReleaseCondentiality Agreement Signing
Information Security Organization Appoint-mentsIntensive Asset ManagementDLP OperationVulnerability ScanningBYOD Control
Account/Permission ManagementProject Risk AssessmentSword ActionISO270001 AuditResignation and Job Transfer Audit
Classied Protection/Security InspectionSpecial Audit of Key PositionsSecurity Incident HandlingDaily Non-compliance NoticationPromotion and Alert
Security ReportSecurity PerformanceExecutive/Management InterviewsSecurity Week/Thematic PromotionOnline Exam
Sta? Training
Continued En-hancement in 2020
Normalized/OngoingOperation in 2019
Hard Work for High-quality Development
Cyber Security
Service Network CoverageDahua has formed a three-tier service network to provide techni-cal services to customers worldwide, with 57 branches worldwideand a service network covering 180 countries. It has 4 spare partsdistribution centers and 140 spare parts stations (46 spare partsstations in China), with 4000+ project managers and technicalservice personnel (including certied personnel), and over 1000service partners, o?ering e?cient service support for customersand markets.In China, we have more than 200 o?ces, with a service networkcovering 100% of all provinces, municipalities, autonomous re-gions and prefecture-level cities.Service Capacity BuildingTechnical support integration: Build a large service mid-platformwith the integration of ITR, 400, project technical support and han-dling of customer quality issues, so as to provide rapid responseto front-line business and connect all service links to ensure aclosed-loop of service guarantee without breakpoints and improveservice e?ciency and customer satisfaction.Training system empowerment: In addition to a scenario-basedeld training facility at the headquarters, Dahua has establishedfield training centers in 32 Chinese provinces and 5 overseasregions to create a "doorstep" eld training setting for customers,facilitating training and certification. By combining theories withpractice, Dahua provides the best solution for talent training andcontinuously improves its own service capacity as well as that ofits partners and customers.
Digital tools installed: A complete delivery and service digitalplatform has been built around project delivery management,customer service and service ecology construction, which realizesthe whole process management and standardization of projectdelivery through the ISDP system. A system for hierarchical andgraded service ecology, standardized management and capacityenhancement has been jointly built through the ecological man-agement and training certication platform.Service Quality ImprovementThrough a sound technical training, assessment and inductionmanagement mechanism, the technical service capacity is empow-ered to guarantee the technical capacity service business stan-dards. By means of a grid-based sta? skills information and sta?ngmanagement platform, the consistency and standardization of ser-vice capacity across the network is ensured, while service qualityis monitored through systematic monitoring, and automated testingis realized following the repair of hardware products, requiringcompliance with factory standards. In addition, the service qualityof the whole process from customer to customer is supervised, sys-tematic problems are summarized and improved, and maintenancequality is monitored. The logistics evaluation system comprehen-sively evaluates and incorporates logistics providers that meetcustomer needs, and monitors logistics timeliness and abnormalitythrough the TMS system, so as to realize end-to-end systematizedmonitoring of the full-process logistics information, and improvetransportation timeliness based on systematic transportation modeof automatically allocating reworked products and spare parts. Reg-ular return visits on logistics to customers ensure that the quality oflogistics services meets customer requirements.
With the customer-oriented service concept, Dahua has been gradually building four service systems covering the whole market and thefull business, including the integrated delivery system, technical support system, operation and maintenance management system, andtraining and certication system; meanwhile, by integrating its corporate resources and pooling the power of the ecology, Dahua providesfull life-cycle services of products and solutions to the market. Our vision is to build a world-class e?cient and professional delivery plat-form and become a superb service value creator.
Professional Service and Delivery for Global Customers
Problem solvingTechnical support
TroubleshootingSpare parts
Customer careO&M solutionsMajor incident coverage
Routing inspection foroperation and maintenance
Fault handlingIncident Response
Training managementCertication management
University-enterprisecooperationClient training
Talent DevelopmentConsultation and design
Plan management
Operation ManagementQuality control
Resource managementIntegrated delivery
Network layout
Provincialand municipalorganizationsCompetencestandards
RegionalorganizationsFramework
design
NationalorganizationsTrainingcertication
HeadquartersorganizationsServicesupervision
SchedulingoperationIntegrated deliveryService organization construction
Technical supportO&M management
Training andcertication
Hard Work for High-quality Development
Professional Service and Delivery for Global Customers
In the process of rapid enterprise development, Dahua insists on scientic and technological innovation as the strategic support for high-qualityenterprise development, and about 10% of the Company's annual sales revenue is invested in research and development. With Hangzhou head-quarters as its center, the Company has established R&D sub-centers in Xi'an and Chengdu of China, Poland and Mexico, deployed global R&Dforces, met the growing business needs, and made continuous breakthrough contributions to lead the industry development with persistent innova-tion capability.
Caring For Employees, Shaping CommonDevelopmentOrganizational Structure
Employment Overview
Human Rights Management
A Business-Oriented Three-Pillar Model
Modeled on the Three-Pillar Model from the HRM master David Ul-rich, Dahua has designed the structure of COE, HRBP and SSC,which emphasizes the concept of satisfactory business and customerdemand orientation. During the daily operation, business customersare classified into different kinds of objects, and the "Three-Pillar"working operation mode is formed by combining the standardizedpersonnel service and HR system with the characteristic requirementsof business departments, so as to better support the business. Moreattention is paid to the import of customer demands and the speed ofachieving and responding to customer demands, which is in line withthe requirements for HR in the VUCA era.
The overall responsibilities of Dahua's Human Resources Center include:
?Formulating and implementing various strategic plans for HR, medium and long-term HR development plans;?Establishing and improving HR-related policies, systems and processes;?Deepening core HR imperatives such as organizational management, job qualication management, talent pipeline construction, cadre manage-ment, recruitment management, corporate culture of performance management, employee care, and training management.?Promoting organizational transformation and innovation to boost organizational performance.?Other corporate HR-related special tasks.Based on the Three-Pillar Model and overall responsibilities, Dahua's Human Resources Center is divided into seven divisions according to func-tions: HRBP Management Division, SSC Shared Services Division, Organization and Cadre Division, Talent Management Division, Employee Re-lations Division, Recruitment Division, and Compensation and Performance Division, to undertake corresponding responsibilities.
Dahua always believes that employees are one of the most valuable assets, respects and pays attention to the hard work of every employee, pro-tects their rights and interests, claries the goal and vision, and strives to create a comfortable and inviting working environment for employees sothat they can grow together with Dahua.
In business practice, Dahua values principles of human rights as stipulated in Universal Declaration of Human Rights, International Conven-tions on Economic, Social, and Cultural Rights, International Conventions on Civil and Political Rights, and United Nations Guiding Principles forBusiness and Human Rights. The internal Social Responsibility Management Manual is developed according to policies and objectives listed inSA8000 International Standard and Social Accountability, and e?orts are made to incorporate these regulations into daily workow and policies,so as to improve the value of Dahua's overall business activities. The company respects employees' rights of freedom of association and collec-tive bargaining that are in accordance with national laws and under voluntary conditions, protects employees' personal information and privacy,and clearly prohibits all possible illegal employment practices such as employment of child labor, forced labor, and restraint of freedom. In orderto maintain the harmonious and stable development and protect the rights and interests of employees, Dahua has established the Dahua LaborUnion, to actively organize activities to motivate the employees, and to act as a bridge between Dahua and the employees, to listen to their opin-ions and protect their rights and interests. As of December 31, 2021, Dahua had a total of 20,000+ employees worldwide.
Focus:
OperationE?ectivenessDelivery
HRCOE
HR Service Center
HumanResourcesPartner
DesignFocus:
CustomerCloseness
Focus:
ValueExcellent talentLeadership
Identication
Caring For Employees, Shaping Common Development
Workforce Structure/Employment Prole/Human Rights Management
With its commitment to "Customer-oriented, Employee-based" principle, Dahua has been actively attracting external talents, so as to provide stra-tegic support for its development.In 2021, Dahua launched the Starburst Program for doctoral candidates, established the Dahua Scholarship in many universities, and organized aseries of activities themed as Coming from Campus and Going to Campus, including the National University-Enterprise Forum, Open Day event,and Dahua Experts into Campus.
Employee Recruitment
Under the requirements of pandemic prevention and control, the Company carried out large-scale and standardized cloud campus recruitment ac-tivities, adopting a full contactless process from cloud presentation, cloud written test, to cloud interview and cloud o?er, ensuring the e?cient andorderly progress of the overall recruitment process. During the campus recruitment for students who will graduate in 2022, we attracted more than80,000 students from nearly 2,000 universities around the world, with over 50% of them having master's or doctoral degrees.
Dahua Scholarship
Dahua has joined hands with several universi-ties to set up the Dahua Scholarship and carryout in-depth cooperation in talent cultivation,scientific research cooperation, joint projectfiling, student competitions and experts intocampus, so as to nurture talents together.
Open DayDahua Open Day is open to students and teaching staff worldwide.Through in-depth visits and communications in Dahua, visitors can gethands-on experience of Dahua's rst-class high-tech atmosphere, com-fortable working environment and dynamic corporate culture.
University-Enterprise Forum
Dahua's University-Enterprise Forum invitesteachers from various universities to the Com-pany for in-depth communications, so as topromote its cooperation with universities and toboost their "collaborative innovation".
StarForce (Global Campus Recruitment)In 2021, Dahua's campus recruitment footprint spread across the globe,with 189 offline presentations and 14 online presentations, reaching5w+ students from 1977 colleges and universities.
Dahua actively provides an excellent career development platform and career choice plans for all job seekers, and won the hon-ors of Zhejiang Extraordinary Employer of the Year (awarded by Liepin, a recruitment platform), Most Inuential Employer (awardedby Haitou.com, a job-hunting platform), and King's Ark Employer with the Most Love for Talents (awarded by BOSS Direct Re-cruitment) in 2021, realizing a virtuous cycle of talent management of the Company while reaching a win-win situation betweenthe Company and the employees.
King's Ark Employer withthe Most Love for TalentsBOSS Direct Recruitment
Most Inuential EmployerHaitou.com
Zhejiang Extraordinary Employer of
the YearLiepin
Employee Recruitment
Caring For Employees, Shaping Common Development
Alumni and Experts into Campus
In order to enable students to understand theprospects and trends of enterprises and indus-tries earlier, and also to better clarify their ca-reer choices, Dahua regularly organizes alumniand experts into campus for communicationswith students.
Dahua always dedicates itself to constant improvement of the compre-hensive incentive system that takes full consideration of employees'material and spiritual needs, as well as short-term and long-termneeds, providing them with competitive salaries and comprehensivewelfare guarantees. Dahua advocates "strivers-orientation", and en-courages resources to be directed to strivers. Some of the outstandingkey employees are also entitled to stock option incentives and innova-tive business follow-on investment plans. In accordance with relevantnational and local laws and regulations, Dahua pays employees' laborcompensation in full and on time, and provides them with legal bene-ts such as "ve social insurances and one housing fund", as well asadditional work benets including supplementary holidays, supplemen-tary medical insurance, meals, communications, and interest-free loanfor house purchase. In terms of talent incentive, we strive to share thefruits of the Company's development with employees who grow withand continue to contribute to the Company by creating a continuousmaterial incentive system through stock option incentives, year-endbonus and venture capital platform. For employees with excellentperformance, the Star of Endeavor award is also set up for them, to-gether with written publicity and experience sharing, to continuouslycreate a motivated and upbeat organizational atmosphere. In addition,the Company continues to improve the quality of life of its employees
The Company has established a reasonable and comprehensive performance management system, which closely integrates strategic planningwith performance management and forms a closed virtuous cycle system through several processes, such as assessment plan formulation, pro-cess counseling, performance evaluation, assessment result application, and performance improvement cycle. Through scientic managementmethods, the individual performance of employees and the overall performance of the Company are organically combined to closely follow Da-hua's strategic development direction.
The Company carries out performance appraisal based on the principles of fairness, openness, impartiality, scientication, clarity and objectivity,and evaluates the actual achievement of the performance target of the appraised based on key results and performance by a combination of ab-solute and relative evaluation. The absolute evaluation is the "ratio to targets", scored by direct superiors and project managers, while the relativeevaluation is the "ratio to others", in which employees of the same position and rank are compared and ranked together on the basis of the abso-lute evaluation, to generate a certain proportion of normal distribution and evaluate the performance level, so as to inspire employees to catch upwith each other and strive to become best performers.
Physiotherapy roomCafeteria
through interest-free loan for house purchase, annual health check-up, meal allowance, high temperature allowance and communicationallowance. To solve the problem of di?cult parking for employees, theCompany has funded the construction of a parking building, which canaccommodate nearly 1,000 employee vehicles. The Company hasallocated special funds for team building and set up commemorativeawards for employees according to their time of joining the Company.The headquarters zone has opened leisure facilities such as physicaltherapy rooms, co?ee bars and gymnasiums, and regularly holds var-ious featured activities and club activities to enrich the spare time ofemployees.
Caring For Employees, Shaping Common Development
Compensation & Benets/Performance Management
Compensation and Welfare
Performance Management
Company level
+
+
CompanyobjectiveKey PerformanceIndicator (KPI)Department objective KPIIndicatorsSta? objectiveKey Performance Indicator
(KPI)
Operational business level
Sta? level
0 - Company strategy map
FinancialPersonnel
OperationCustomer
1.1 - Company quantitative
KPI (Finance+Operation+-Customer)
2.1 - Department quantita-
tive KPI (Finance+Opera-
tion+Customer)
3.1 - KPI
+ Personal performance
contribution
3.2 - Personnel
management goal
3.3 - Individual
development
objective
1.2 - Corporate strate-
gic initiativesbreakdown (strategicevents)
1.2 - Department
strategic initiativesbreakdown (strategicevents)BreakdownUndertake
BreakdownUndertake
BreakdownUndertake
BreakdownUndertakeBreakdown
Organi-zationPerfor-mance
Individ-
ualPerfor-mance
Performance breakdown process
Dahua regards talent as valuable assets. Talent strategy is an integralpart of the Company's strategy, and also a key cornerstone and guar-antee for the long-term development of the Company. "Breaking theboundary of ability and cultivating more talent" is the main keynote ofsta? training and development in Dahua. The development of Dahua isinseparable from the e?orts and contributions of all Dahua employees.While growing, Dahua strives to improve the platform and mechanismfor talent development, so that employees can develop faster and cre-ate more values for Dahua and also for themselves, achieving a statewhere stars gather and talents emerge.
Career DevelopmentThe company has established a sophisticated mechanism for talenttraining and development, a qualication management system, guidingemployees on career planning. Employees can grow, both in the man-agement channel and in the technology channel. In addition, the Com-pany o?ers multiple talent development solutions to help employeeswith their career development, such as: Leaders Program, ReserveCadre Pool Project, Starburst Program (High Potential), DandelionProgram, and Internal Talent Market.Give Full Play to Employees' Potential and InitiativesIn order to establish itself as a learning-based organization, theCompany has built an employee qualication mechanism to promptemployees to continuously learn and take the initiative to exert theirstrengths. With explicit job responsibilities and full authorization, em-ployees are guided to work creatively and independently to give fullplay to their potential.Establish a Multi-Channel Talent Training Sys-tem to Provide Employees with Opportunities forLearning and DevelopmentAccording to the di?erent abilities, hobbies and characteristics of var-ious positions of employees, Dahua provides two channels for theircareer development: the channel of technology, and the channel ofmanagement, so as to get them fully motivated. Based on the dualchannels of development, Dahua sets up posting standards and learn-ing resources to enhance the competence of employees. Meanwhile,the Company adopts the mode of separated evaluation and employ-ment, and provides development opportunities for employees on thebasis of their abilities shown through job performance, in the form oforganizational nomination, competitive recruitment, internal recruit-ment, and various resource pools.
Employee Career Development GuidanceThe Company conducts career development planning and design foremployees, jointly formulates career development goals and actionplans for employees, and provides corresponding support, such asperformance guidance and open competition.TrainingIn terms of the career development of employees, the Company pro-vides dual channels of management and expertise, and constantlydevelops a qualification system with "ability" as the core, a job ap-pointment and removal procedure with "responsibility" as the core, anda job matching procedure with "contribution" as the core. Dahua alsoprovides timely incentives through the salary system, so as to fullyenable employees to develop their abilities, undertake responsibilitiesand realize values, and obtain continuous improvement.The Company continues to enhance the build-up of professional at-mosphere. Through the establishment and operation of ProfessionalCommittee/Technical Committee, the Company plans for the develop-ment of its professional/technical system, precipitates its knowledgeand experience, and provides employees with clear professional com-petence standards and learning resources, so as to continuously andcomprehensively improve the professional/technical competence ofemployees, and lay a solid foundation for them to undertake "respon-sibility" and continue to "contribute" on their posts.The Company also attaches great importance to the cultivation and in-centive of the expert team, dening experts as an important guaranteefor the sustainable development of the business. Leading experts ineach professional eld are encouraged to break the boundaries, focuson core technology breakthroughs, and guide more excellent profes-sionals through subject research, practice, and knowledge and expe-rience accumulation. In addition, external training, expert allowance,subject bonus, expert conference, and exclusive car parking incentiveplan are provided to them for their development and incentives.During the reporting period, the Company launched the DandelionPlan for the mobility of technical staff. The Dandelion Plan fully re-spects the will of employees and adopts a voluntary application model,with the encouragement and support of established regulations on thecompany level.During the reporting period, the Company launched a number of di?er-entiated development programs for di?erent employees to fully covertheir development needs. For example, the "Dandelion Plan", basedon the will of employees, aims at the mobility and rotation practice oftechnical sta?; the "Leader Plan", supporting the breakthrough devel-opment of experts in various elds; the "Cadre Reserve Plan", aimingat the development and training of excellent managers; the "StarburstProgram", aiming at high-potential employees; and the HTTP Program,targeted at the training of fresh graduates.The Company emphasizes staff training and practice, and has setup hands-on training bases for employees. It upholds the "businesssuccess-oriented, organization development-centered, and personalgrowth-based" training concept, with managers at all levels activelyparticipating in the development and teaching of training sessions, to"cultivate better people with the best people".
Leadership and Man-
agement TrainingThe Spark Project
Business Scenario
TrainingYouth Training SystemNew Employee Training
Learning Section forLeaders
Professional Quali-cation Study
Course Library Question Bank Case Library Lecturer Pool Mentor PoolE-learning Platform
OperationSpecication
Implementationand Operation
TrainingPlatform
Management channel
Senior managerMiddle and senior
managersJunior and middlemanagers
Professional technologychannelSenior expertExpertsBackbone sta?
Employee Career Development Channel
BeginnerJunior sta?
Employee Growth
Caring For Employees, Shaping Common Development
Employee Growth
An employee forum has been launched, enabling employees to ex-press their views, and participate in online communications and dis-cussions. And also the company culture are promoted to employeesin ways that are welcomed by them. The Company has also launchedthe project of "Reporting Once at Most", set up a suggestion box foremployees, and opened a message board in its WeChat public ac-count "FangHua Club" to listen to employees' suggestions.
For employees having joined the company for one, three, ve or tenyears, commemorative gifts were awarded to them, to enhance theirsense of belonging and strengthen their adhesion to the Company.
Greetings were sent to family members of expatriate employees andemployees staying in their posts during the Spring Festival, and letterswere addressed to the families of outstanding employees.
Dahua is dedicated to building its cultural atmosphere, and keepsexperimenting with more diversified platforms and innovative mediainteractions. The employee culture system ranging from o?ine to on-line, headquarters to regions, and local to global, has been graduallyestablished, enabling more Dahua fellows to feel and practice the"customer-centered and striver-oriented" corporate culture.
In 2021, the Company continued to hold activities of the "HealthSeason - Striving Season" series, and started the "Dahua People -Happiness Star" series. This will draw more attention of employees tohealthy life and work, becoming a healthy and happy Dahua member.Every Saturday, professional organizations are invited to the Park toprovide free tutoring services for employees' children, primarily home-work tutoring and interest cultivation.Diversified clubs including soccer club, basketball club, badmintonclub, running club, singing and dancing club, Tai Chi club, and musicclub have been set up, and various sports and cultural activities areheld from time to time to enrich the spare time of employees.
Figure Anniversary care
Figure Condolences to employees in di?culty
The Company employs a combination of "learning, training, practice and examination" to develop employees' ability and experience in a multi-di-mensional manner. Based on the qualication system and business development, the Company shares learning resources through learning plat-forms to achieve 555,000 hours of independent learning during the reporting period, 107,000 hours of learning through live streaming on onlinelearning platforms (considering the pandemic situation and employees' diversied learning demands), and 313,000 hours of learning through of-ine intensive training. During the reporting period, the total training hours of Dahua employees reached 975,000 hours, and the total direct trainingcost was RMB 3.614 million. Additional costs were generated from instructor fees, tutor fees, and qualication exam incentives, totaling RMB 2.322million, making a total training cost of RMB 5.936 million.
With concern for the physical and mental health of every employee, Dahua creates a good working environment for its employees, respects them,encourages them to actively participate in all aspects of Dahua's operation, maintains good communication channels, and inspires them to recog-nize the mission and value of work. The company continues to innovate format of democratic management, provide employees with relevant in-formation through more channels, and enable immediate interactions and feedbacks. When setting up rules and regulations related to attendanceappraisal, performance appraisal, employee rewards and punishments, salary payment, social insurance, welfare treatment, labor contract, andsafety production, the company will seek inputs from labor union and employee representatives by making information public on company o?cesystem or in written format.
Employee Care
Caring For Employees, Shaping Common Development
Employee Care
Organizational Structure for Occupational Healthand Safety ManagementDahua has a Safety Production Management Committee that strict-ly observes the relevant provisions of national and local laws andregulations, to strengthen occupational health, safety and environ-mental management, consistently improve the management mech-anism, and protect employees' safety and Company's property. Thecompany strictly follows relevant regulations, and has formulatedcorresponding rules and regulations such as DH QP 020 Envi-ronmental Health Operation Management Procedures", "SafetyProduction Management System", "DH-BPR-BS-463-S01 Com-pany Safety Management System", and "DH-BPR-BS-463-G01Safety Management And Prevention Guidance, which have clearrequirements, as well as distinct reward and punishment standards,consistently improving the ability of safety production and environ-mental management. By consistently improving the managementorganization, all staff have signed the responsibility statement ofsafety production at di?erent levels, with clear safety objectives andresponsibilities detailed to individuals. Annual assessment is con-ducted accordingly. In addition, the company increases surveillanceon high-risk sites through reinforced management of technicalsafety measures at production site. As a result, safety production isin sound condition and under continuous improvement. No safetyproduction accidents have occurred in the past three years.Moreover, the Company is among the rst batch of 5A-certiedenterprises for Good Standardizing Practice in China, which sig-
nies that it has established a standard system with reasonablestructure, clear hierarchy, comprehensive system and good secu-rity, and boasts a set of standardized management mode suitablefor its own development characteristics, with strict implementationof standardized management.Occupational HealthAccording to relevant laws and regulations as well as systemstandards, Dahua regularly commissions third-party institutions toconduct checks on all places with occupational disease hazards,equips relevant employees with labor protection supplies andorganizes regular occupational health checks. Through publicityand education, Dahua has actively taken a number of occupa-tional health prevention and protection measures, carried outcorresponding operation guidance for all employees exposed toand using chemicals, and posted occupational hazard and safetynotication cards, and hanging safety instruction signs at produc-tion sites to clarify the protection requirements and emergencyhandling requirements; the coverage percentage of safety educa-tion for Dahua's on-the-job personnel, the percentage of specialoperators holding certicates and the percentage of occupationalhazard factor detection have all reached 100%. During the re-porting period, no cases of occupational accidents were reportedin Dahua. In addition, we continued to optimize the productionprocesses and reduce or avoid employees' direct exposure to oc-cupational disease hazards through intelligent transformation.
Secretariat: SecurityManagement DepartmentDirector of the Security Commit-tee: Xu Zhicheng (general)Members: Vice President and De-partments & Persons in ChargePark Security GuardsCatering CommitteeDorm ManagementCommittee MemberEmergency Committee
Tier-2 Organization
Tier-1 Organization
Management Branch ofDomestic Marketing CenterManagement Branch ofOverseas Sales CenterManagement Branch ofAdministrative CenterDelivery and Service CenterManagement BranchManagement Branch ofZhejiang Dahua SystemEngineering Co., Ltd.Management Branch ofZhejiang Dahua ZhilianCo., Ltd.Management Branch ofOther Departments andSubsidiaries
Director of Safety Production Committee
Management Branch ofResearch Center
With its constant focus on employees' occupational health and safety, Dahua has strictly complied with the Work Safety Law of the People'sRepublic of China, the Law of the People's Republic of China on the Prevention and Treatment of Occupational Diseases, and the ManagementMeasures of Occupational Health Inspection, among other national and local laws and regulations on occupational health in its operations. Dahuahas built a top-down systematic prevention management mechanism to minimize the occurrence of accidents in production, environmental pollu-tion and occupational diseases. The Company has established and passed ISO45001 Occupational Health and Safety Management Systems, andISO14001 Environmental Management Systems, among other system certications, and conducts internal and external audits on a regular basis,to e?ectively control the risk factors to the occupational health & safety and the environment as well as running activities relating thereto, so as toe?ectively utilize resources and energy, fundamentally eliminate or lower the risks to the occupational health & safety and the environment, andensure compliance with the policies and objectives for the management of the occupational health & safety and the environment.
Employee Health and Safety Management
Employee Health and Safety Management
Caring For Employees, Shaping Common Development
Safety Production System Construction
Dahua strictly abides by the Law of the People's Republic of Chinaon Work Safety, the Regulations on Work Injury Insurance and otherrelated laws and regulations, focuses on the management of worksafety, and always implements the production safety policy of "safetyrst, prevention oriented, and comprehensive management". It rmlyimplements the production safety responsibility system, comprehen-sively carries out the investigation and treatment of hidden dangers inproduction safety, and extends the safety technology from productionsites to the whole process of R&D, procurement and product life cyclemanagement.The Company obtained OHSAS18001 Occupational Health andSafety Management System certication in 2010 and upgraded it toISO45001 international standard in 2019, forming the basis for ensur-ing the e?ective operation of the system, and controlling or eliminatingpotential environmental impacts and occupational health and safetyhazards. On one hand, a series of policies, such as Safety ProductionManagement System, Production Operation Specication, EquipmentSafety Management System, and Hazardous Chemicals ManagementSystem, have been developed as detailed safety standards and workspecications to guide employee for standardized operations. On theother hand, the matrix organizational management model is adopted,so that the safety management committee of the base implement var-ious of safety-related working responsibilities specic to each post, toorganize regular safety meetings, regular safety inspections, re drills,and other safety themed activities.During the reporting period, Dahua's system operated smoothly and theoverall safety risks were under control. Dahua continuously strength-ened safety publicity and training, and organized a series of diversiedemergency drills to enhance the safety awareness of employees.
The Company passed the initial assessment of Level 2 Enterprise ofSafety Production Standardization in 2017 and completed the secondassessment in 2021. The production base, as a densely populatedplace, also passed the Level 2 Assessment of Safety Production Stan-dardization, thus realizing the standardization of management, sitesand operations. These achievements are continuously consolidated.Safety Management and PreventionWith great emphasis on safety production, the company hasstepped up investment in management resources, regularly carriedout relevant activities for employees, such as occupational safety edu-cation and training, emergency drills, joint defense between the policeand enterprises, re drills, safety activities, knowledge communication,and hazard identication, to advocate early hazard identication andprevention, as well as e?ective hazard management.June 2021 marked the 20th "Safety Production Month" in China. Da-hua's labor union, together with safety committee of Dahua FuyangPark, organized a series of activities for 2021 "Safety ProductionMonth" in the Fuyang production base. Under the theme of "DeningSafety Responsibility and Promoting Safety Development", variousactivities were organized, such as safety knowledge contest, fireemergency drills, safety knowledge promotion, all-sta? safety knowl-edge tests, and work meetings of the safety committee. The safetyawareness and emergency incident response capability of employeeswere further enhanced, and the initiative of all staff to participate insafety management was continuously improved, thus enhancing thesafety environment in and around our parks on an ongoing basis, andboosting the level of safety production and continuous stability of safe-ty production in the parks.
? Safety Knowledge ContestEmployees participated in the question and answer sessionby scanning the QR code, together with the lucky draw. Theyactively searched and raised questions for the productionsafety laws and regulations requirements and general knowl-edge of safety protection and emergency rescue. The front-line employees were motivated to participate in safety man-agement.? Fire Emergency Drill
Fireghting knowledge training, early warning, personnel es-cape and evacuation, and hands-on use of re extinguishersdrills were carried out to improve the re safety awarenessand self-rescue ability of all sta? through professional guid-ance.
Occupational Health Examination and HazardCommunication Process
During the reporting period, the DH-BPR-BS-1066-S01Occupational Health Management Guidelines were es-tablished to clarify the process of occupational healthexamination and notication of occupational hazards.Occupational Health Management for Solder-ing Operations
Solder work instructions were developed to guide sol-dering workers in individual protection and hazardouswaste collection and disposal, so as to strengthen thestandardization of occupational health and environmentalmanagement of soldering operations in the Company.
Occupational Health Examination
During the reporting period, occupational health examina-tion was arranged for employees exposed to occupation-al hazards, with all the examination results being goodand no cases of occupational diseases.
Occupational Hazard Factor Testing
During the reporting period, the Company commissionedqualied third-party testing organizations to conduct com-prehensive testing of all exposure points to occupationalhazards, with all testing results being "Pass".
Occupational Health Protection
Organizational Structure for Occupational Health and Safety Management
Caring For Employees, Shaping Common Development
? All-Sta? Safety Learning and Test
Together with the Human Resources and Legal A?airs departments, we prepared test questions on safety for all sta? and distributed thelink to the safety test (mandatory) on the Company's learning platform. Dahua employees actively participated in the test, with more than10,000 of them participating in the online test.? Safety Promotion
Safety banners and posters were displayed at the main en-trances and exits, and relevant requirements of Safety Monthand re safety knowledge were played on electronic screenson a rolling basis to promote general knowledge of produc-tion safety and create a safe production atmosphere.
? Entrance and exit vehicle
management? Parking lot vehicle man-agement? Automatic dispatch ofwarehouse vehicles andgoods
? Automatic visitor control? Automatic control of
production station andenvironment? Intelligent access controland consumption man-agement
? Electronic inspection sys-tem? Control center dispatch
(stereoscopic managementand control)? Park and production datacontrol
VehiclePeople
? RFID warehouse access man-
agement? Machine room environmentmonitoring (temperature andhumidity, UPS, etc.)? Automatic control of hazardousgoods warehouse
MaterialManagement
Safety Management Monitoring System
The safety management system is an important branch of safety governance. Based on the "ve elements" of people, machine, material, environ-ment, and management, a safety management system is established in compliance with such requirements as safety standardization and EHS,o?ering real-time, highly integrated, and classied management and enabling timely warning of dangers to quickly locate the exception and reduc-tion the scope and level of dangers.In 2021, in the face of the pandemic, the Park Safety Committee formulated detailed preventive measures according to relevant government pol-icies. By establishing multi-channel, rapid and e?ective information communication channels and leveraging technological innovation, systemssuch as itinerary registration, health reporting, telecommuting and park passes were introduced promptly for timely and accurate collection of allsta? information. Meanwhile, WeChat groups were formed in each department to ensure consistent communication and implementation of an-ti-pandemic policies. For suspected and conrmed cases at home and abroad, we promptly arranged local medical resources for them and closelymonitored their conditions on a daily basis.In addition, the cafeteria adopted separate tables and batches of dining to avoid unnecessary risks when dining; employees on trips and thoseliving outside of the parks needed to show green health codes, measure body temperatures, and report their itinerary daily at work; during thepandemic, dormitories, cafeteria, public areas and production workshops were disinfected once a day, stocked with anti-pandemic supplies suchas disinfectants, hand sanitizers, independent quarantine rooms, masks, and tents; when employees had fever, cough, and other abnormalities,special vehicles were arranged to send them to hospitals.
Dining in Di?erent Tables at Di?erent Times
Face Recognition and Temperature
Measurement
Network Identification of Health Code
and Attendance
Organizational Structure for Occupational Health and Safety Management
Caring For Employees, Shaping Common Development
Following the principle of "win-win cooperation, transparency and compliance", Dahua has established and continuously maintained good partner-ships with suppliers, banks and other stakeholders by adopting a contract-based business model. It insists on standardizing and continuously opti-mizing the supplier incorporation process system, with the establishment of a perfect contract system to ensure the stable and e?cient operation ofthe supply system. By the end of 2021, the Company had included 1,665 suppliers worldwide in its qualied supplier resources pool and rigorouslyrequired suppliers to sign key agreements such as the Material Procurement Framework Agreement, Supplier Social Responsibility Agreement,Supplier Compliance Commitment Letter and Supplier Commitment Letter on Environmental Protection to ensure the sound and sustainable de-velopment both Dahua and suppliers.
Forging Ahead Hand in Hand, and Living inHarmony
Supplier Management
Exploration of the Market Segment and Transparent Procurement
As an international listed company, Dahua has been adhering to the concept of "Fostering, Accompanying, Growing" in the management and cul-tivation of suppliers, realizing the online visual management of the whole business in the whole process management of suppliers, making greate?orts in the incorporation, collaboration, performance and support of suppliers, completing the formulation of business standards and rules, ande?ectively transferring information and data through the upstream and downstream system connections.
High-quality Development and Continuous Stable ProcurementIn the face of the turbulent world economy and the complex and changing pandemic conditions, it has been the Company's primary strategic policyto resolve the uncertainty in its supply chain and ensure the security of supply. Through continuous practice and exploration, the Company has es-tablished a complete system and process mechanism to deal with various uncertainties. The many unexpected events in the supply chain in recentyears never halted the production, product development or sales of the Company, but rather have made its business even more robust, maintain-ing more rapid and steady vigorous development. This is precisely supported by the rapid response of the Company's supply chain system and itsstrong R&D strength.
Open and transparent incorporation process? Customize supplier development strategies by category,establish a hierarchical management mechanism based on cat-egory, and dene the incorporation threshold standard, with thered line one vote veto? Clarify environmental protection qualications, social respon-sibility, integrity, and condentiality requirements, and sign envi-ronmental protection, integrity, and condentiality agreements? Establish the collective on-site review mechanism of threeparties of technology, quality, and procurement, to incorporatesuppliers in the IT system monitoring of the whole processLean guidance for continuous improvement? Support suppliers in capacity layout and automation of pro-duction lines? Provide lean guidance for suppliers with poor performance,and incentives for those with good performance, to motivatesuppliers and achieve win-win results? Implement a strict supplier exit mechanism, that replaces orphases out in time suppliers who violate the red line or remainincompetent after guidance.The AVL library and potential suppli-er library guarantee the supplies of the resource pool
Business collaboration and information
sharing? Get involved in the early development of new componentsthroughout the supplier process? The supplier collaboration platform supports supplier incor-poration and order tracking, to improve the fulfillment rate ofdelivery requirements? Support the key process parameters, production, delivery,and quality data of suppliers' components? The IT system supports the building of a cost model to achievecost coordination between the supplier side and the buyer side
Fair data performance management? Establish suppliers' risk proles in an all-round way, give earlywarning of abnormal risks, and systematically track risky deci-sion-making plans? Establish suppliers' performance ratings and implementassociated order quota adjustment to ensure fair treatment ofmultiple parties? Combine regular routine audits, surprise checks and QBR,and develop restricted and trusted lists to motivate suppliers
Supplierdevelop-
mentSuppliercollabo-rationSuppliersupportSupplierperfor-mance
? Establish risk assessment pro-grams and specific judging rules,and build an electronic platform formanagement? Establish a supplier risk data-base and market risk collectionsystem? Establish a management systemfor risky materials and suppliers
? Identify strategic suppliers basedon supplier profiles, and developand implement targeted strategiesand action plans? Sort out key suppliers accordingto material categories, and formu-late and implement a managementplan for risky suppliers
? Establish a basic database ofmaterial costs, process capacityand production line automation ca-pability for each material category? Establish a control system forsecondary materials such as bulkcommodities? Promote the layout of localiza-tion, automation and information-ization in a scientic way
? Prepare stocks and developalternatives for risky materials andsuppliers? Provide risk warning and riskavoidance for new product materialselection
Build a supply secu-rity platform
Optimize the ecologicallayout of strategic collab-
oration
Enhance the anti-riskcapability of supplies
Enforce strategies
against risks
Supply Security
Supplier Management/Intensive E?orts and Sunshine Procurement/Quality Development and Sustainable Procurement
Forging Ahead Hand in Hand, and Living in Harmony
Shared Prosperity and Harmonious Procurement
As a socially responsible enterprise, Dahua has been responding to the national call and advocating the harmonious development within the humangroup and between human and nature. In terms of the environment, Dahua requires all the incorporated suppliers to follow the requirements of theISO14000 environment management system and strictly implement RoHS2.0 for all the materials, including process production. All the suppliers shallsign the Commitment Letter on Environmental Protection. A red threshold is set for suppliers with no system management or not satisfying the basicterms on environmental protection. Training for improvement is also provided to help our partners improve their source allocation capacity.In terms of humanity and social responsibility, Dahua emphasizes equality among di?erent people and races. Handicapped persons have the prior-ity for humanistic care and suitable jobs to give play to their social value. While being self-disciplined, we also require all the partners to fulll theirresponsibilities and sign the Supplier Social Responsibility Agreement. Taking safety as the starting point, Dahua requires all the partners to carryout safe production and operations, and sign an EHS commitment, avoid intentional delay of salary payment, avoid harsh working environment,and take the lead to build a safe and stable social business environment.
Regional Coordination and Local PresenceAs a forerunner for the concept of a world economic community, Dahua enhanced cooperation with worldwide material suppliers and processingplants. The Company implemented traceability label management for the purchased materials, classied and graded di?erent materials and thecapacity of di?erent regions, reasonably allocate resources and supplies in di?erent places, so as to promote the coordinated development of thewhole economy. Moreover, as a leading technology enterprise in Hangzhou, Dahua is also committed to promoting the local and surrounding eco-nomic ecosystem, giving full play to the features of the local economy, obtaining local materials for processing and production, and reducing wastecaused by the allocation of resources from far places. In this way, the surrounding ecosystem can realize the maximization of economic benetsfor resources and the highest use ratio of energy. For example: Major suppliers for packing materials, injection-molded materials, and die castingcomponents should be within the 4-hour supply cycle and the Just-in-time (JIT) mode is e?ectively implemented.Responsible Mineral ProcurementDahua holds and maintains that it is our corporate social responsibility not to procure and use conict minerals. Even if we are not regulated by theSEC, we still make our best e?orts to ensure the procurement and use of conict-free minerals in our supply chain to the extent commercially rea-sonable.Dahua supports initiatives related to responsible minerals, and conducts continuous and comprehensive due diligence management of possiblerisks in the supply chain to jointly practice our corporate social responsibility. All relevant suppliers of Dahua shall have a management policy/program to respond to conict minerals requirements and shall not directly or indirectly use materials such as gold, tantalum, tungsten, tin andcobalt that originate from areas of armed conict. The latest version of the Conict Minerals Reporting Template (CMRT&CRT) is used to discloseinformation on the use of conict minerals and smelter sources to Dahua annually for suppliers and their supply chains, and all smelters must beincluded in the Responsible Minerals Assurance Process (RMAP).With the resources provided by the Responsible Minerals Initiative, including the Responsible Minerals Plan, Dahua will develop a conict mineralscontrol framework to assist suppliers in sourcing and using conict-free minerals, continuously ensure the supply of smelters not a?ected by con-icts, and e?ectively eliminate the use of any conict minerals in the supply chain.
Supplier development and qualicationreview? Review the environmental system, operatingpersonnel and production process documents? Conduct three-party review of manufacturingsuppliers and secondary suppliers, with a focuson compliance of environmental, health andsafety management with national requirements,in addition to their manufacturing capabilitiesRegular and unannounced inspection? Perform sampling inspection on materials pro-vided by suppliers to see whether they meet theenvironmental requirements? Build the Dahua RoHS testing lab and meet theEU directive; develop a materials lab testing planto expand the coverage of RoHS testing? Perform unannounced inspections on suppliersfrom time to time to see whether the working en-vironment and on-site management of personnelmeet the requirements of agreements
Agreement signing and e?ective-
ness management? All suppliers are required to sign the Com-mitment Letter on Environmental Protection All suppliers are required to sign the Sup-plier Social Responsibility Agreement? Regularly update the environmental RoHSreport through the system and audit the va-lidity of the environmental RoHS report
Summary and improvement? Solve identified problems which can beimproved? Corresponding changes shall be made tothe agreement if it is found to be incomplete? In case of serious non-compliance, thesupplier shall be punished accordinglySocial responsibility
Harmoniousprocurement
Proactive and Harmonized Procurement/Regional Linkage and Local Penetration/Responsible Mineral Procurement
Forging Ahead Hand in Hand, and Living in Harmony
Keycontrolelementsfor conict
minerals
General provisions:
In consideration of the possible compliance risks or inuence brought by conict minerals, Dahua has included conict mineralsin the centralized management of the Product Compliance Committee, formulated control strategies, and monitors the opera-tional risks. Meanwhile, conict metals are included in Dahua's general hazardous substance control requirements. Identify andfollow up the dynamic updates of conict minerals initiatives and review internal control requirements regularly.? Due Diligence Guidance for Responsible Supply Chains of Minerals from Conict-A?ected and High-Risk Areas - Organiza-tion for Economic Cooperation and Development (OECD)? Dodd-Frank Wall Street Reform and Consumer Protection Act (Section 1502: Conict Minerals) - Securities and ExchangeCommission (SEC)? Supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating fromconict-a?ected and high-risk areas (entering into force on January 1, 2021) - European Union (EU) 2017/821? Responsible Minerals Initiative (RMI) - Responsible Business Alliance (RBA)Supplier import:
Conict minerals control is included in the Supplier Incorporation Management Process as one of the baselines for supplier im-port, requiring all manufacturing suppliers to sign and comply with the "Declaration of Conict-Free Metals" in the ProcurementFramework Agreement to ensure that products supplied to Dahua and its a?liates do not contain conict minerals or metals.Due diligence for the supply chain:
Dahua conducts due diligence on conict minerals in its supply chain through its supplier portal on an annual basis, and requiresits lower-level suppliers to e?ectively disclose information about the country of origin of the minerals, the smelters and reneriesused and their downstream supply chains in accordance with the reporting template of the Responsible Minerals Plan - [ConictMinerals (Cobalt) Reporting Template (CRT)] [Conict Minerals (Gold, Tantalum, Tungsten and Tin) Reporting Template (CMRT)].Supply chain collaboration:
We have established an environmental interface in the supplier portal, and further raise awareness of conict minerals regu-lations through training and advocacy for the supply chain. In addition, we assist suppliers in completing the conict mineralsdue diligence promptly, and support their development of internal procurement policies for conict minerals and sub-level duediligence programs to jointly practice corporate social responsibility.Supplier review:
During the supplier import review and regular annual quality audit, the source or procurement channel of relevant raw minerals areveried and conrmed. If the information provided by suppliers cannot be veried or if the suppliers do not take e?ective measuresto comply with the conict minerals policy of Dahua, Dahua reserves the right to terminate cooperation with such suppliers.
Emergency
plan
**Conict minerals/metals (3TG): The term refers to tin (Sn), tungsten (W), tantalum (Ta), gold (Au), and other minerals derived from the Demo-cratic Republic of Congo (DRC) and surrounding countries. The mining and sales of such minerals often go with severe human rights abuses andenvironmental crises, and may provide nancial support to persistent illegal armed groups and regional armed conicts in these countries.In the report period, the governance achievements of conict minerals are as follows:
1. The signing rate of Declaration of Conict Minerals-Free by new suppliers is 100%;
2. The reply rate of production suppliers is 100%;
3. Complaint about violations of conict minerals is 0;
Dahua added due diligence for cobalt for the rst time and has made signicant progress. At the same time, we will continue to focus on seekingalternative technologies for cobalt materials in lithium batteries. In addition, Dahua has issued an updated Declaration of Metal Conict-Free (formore information, please visit: https://www.dahuasecurity.com/newsEvents/DahuaNotice/847)
Conict minerals management framework
To handle the possible risks of conict minerals, Dahua has formulated the corresponding emergency plans and dened theresponse mechanism and handling processes for issues in connection with conict minerals to further improve the emergencyhandling capacity for risks of conict minerals. Dahua has fully identied the risks of conict minerals in the supply chain andcontinuously shares the results of supply chain due diligence with customers when necessary.Interpret relevant regulations on conict minerals for each supplier in advance, and publicize the impacts of using con-ict minerals. If a supplier is found to have illegal use, immediately carry out the suspension investigation of its productsand identify and warn early potential risks resulted.
Risk warning in advance
Summarize the reasons and fundamental problems of illegal use of conict minerals, and make adjustment to the rele-vant product design standards or supplier management regulations to avoid similar risks during new material selectionor supplier selection in the future.Summary and improvement afterwards
1. Stop using current materials of non-compliant suppliers, make rectications, and adjust the quota of its new products;
2. The illegal products shall be destroyed from the market and replaced by reliable products;
3. In case of serious impacts on the Company or customers, suppliers should be held legally accountable.
Emergency settlement in the middle of an event
Responsible Mineral Procurement
Forging Ahead Hand in Hand, and Living in Harmony
Continuously optimizing the layout of global supply industries and promoting sustainable social development.In the process of global supply network layout, Dahua adheres to the openness and cooperation of the supply chain, gives full play to itsown advantages, strengthens the operation coordination of the global industrial chain, and actively explores the green and low-carbonsupply ecological chain with professional material suppliers, OEM manufacturers, and warehousing and logistics service providers, so asto drive more partners to practice the concept of harmony and win-win, and take the road of sustainable development.In the report period, based on di?erent business scenarios and business models, Dahua's supply chain matched digital solutions to forma 1 + 2 + 4 + n global multi-level supply network layout centered on the Fuyang Base of Hangzhou Headquarters, so as to meet the di-versied needs of global customers quickly, exibly, and e?ciently.? Hangzhou Headquarters as the center: As the core intelligent manufacturing and distribution center, Dahua Smart (IOT) IndustrialPark has a 670,000㎡-security industry base, covering an area of 510 acres.The park is equipped with dormitories, canteens, basketballcourts, training center, cinema, supermarket, medical room, entertainment centers, ATMs and other facilities, which greatly improves thequality of life and well-being of employees, reduces safety risks, and provides a solid guarantee for stable product supply.? The second manufacturing base in China: To expand the security industry layout in Central China, Dahua signed a cooperationframework agreement with Changsha Municipal People's government in 2021. The two sides will carry out in-depth cooperation in theelds of articial intelligence, big data application, smart city, smart education, smart re protection, intelligent transportation and smartsecurity, so as to help the construction of smart city in China.? Overseas supply network: Dahua has established two light asset manufacturing and supply centers in India and Vietnam, four HUBwarehouses in core regions such as Hungary and Panama, and national sub warehouses in core overseas countries, so as to createmore local employment opportunities while serving overseas customers more e?ciently and contributing to local economic development.
Growth of Suppliers
Dahua focuses on growing together with its partners. In the report period, it has carried out the QCC Activity and Quality EmpowermentTraining Camp to share the Company's excellent management experience with suppliers to improve their problem-solving ability.
Supply Chain ManagementDahua’s supply chain is committed to building an e?cient, intelligent and reliable supply system for the global market, adhering to the"customer-centered" service philosophy, taking globalization, diversication, integration and digital intelligence as the main line for devel-opment, mitigating the adverse impact of uncertain and complex supply environment on supply chain operation, and continuously andstably providing high-quality products for the society; Take ingenious manufacturing and green manufacturing as the development goal,actively make e?orts in the construction of intelligent manufacturing and green manufacturing, utilize digital technology and information toenable industrial transformation and upgrading, jointly carry out green and low-carbon production together with the upstream and down-stream of the supply chain, and promote the action of carbon peak in the whole chain.
?A total of 34 suppliers participated the supplier training camp, with 47 trainees regis-tered and 14 courses taught.
?With the e?ort and guidance of each SQE, the online review of 33 projects of the 2021supplier empowerment training camp was completed; 29 qualied projects were regarded asqualied (including 1 outstanding project, 14 excellent projects and 14 qualied projects).
April 17th
? Supplier registrationand selection? Training courseresearch? Preparation ofinvitation letter? QC project training? Improvement ofprojects submission
May 15th? Training arrangement(quality tool training)? Mid-term coaching ofproject improvement
July 17th? Business andsystem training? Coaching of projectimprovement
January 7th? Online improvementof project Resultsreporting
QCC Activity and Quality Empowerment Training Camp supplier training program
Supplier Growth/Supply Chain Management
Forging Ahead Hand in Hand, and Living in Harmony
Promote digital intelligence of manufacturing andimprove business performance
Dahua has deepened reform, actively promoted the digitalizationtransformation of "Internet Plus manufacturing", insisted on the in-telligent manufacturing strategy, continuously improved the level ofproduction automation, and achieved the maximum labor intensity re-duction, labor cost reduction, productivity improvement, product qualityenhancement and ecological environment for production by using in-dustrial robots and exible automation equipment, as well as data linkcommunication and information interaction among systems.? Breakthroughs in automatic assembly: Dahua continues to pro-mote the application and networking of automatic production equip-ment and facilities. In 2021, focusing on the needs of high-precisionassembly and relying on our deep technical accumulation in the eldsof video and AI algorithm, Dahua developed a new intelligent visualscrew driver to reduce the repeated mechanical actions of employees;At the same time, through data acquisition, operational analysis andfeedback adjustment, the qualication rate of screw assembly was in-creased from 90% to more than 99%, achieving the goal of improvinge?ciency and quality.? Intelligent development of automated testing: Dahua continuesto develop and upgrade its automated testing platform, constantlybreaks through the bottlenecks of industry testing technology, and thecoverage of fully automatic testing technology of core products hasreached 86%.
1. The self-developed MTF (modulation transfer function) has changed
the subjective judgment of images to quantitative objective automaticjudgment, and the coverage of MTF standard has reached 73%.
2. The application of new high-precision focusing technology has
turned manual focusing into fully automatic focusing, increasing therst pass yield from 80% to 95%.
3. The innovative SD card function of products makes it possible to
avoid the starting of the cold test scheme, reducing the working hoursfrom 35S to 7S for each set, improving the e?ciency by 80%.? Intelligent logistics:
1. By adopting AGV, machine vision, robot, big data and other tech-
nologies independently developed by Dahua, we managed to promotethe automation of on-site logistics (warehousing, sorting, transmission,batching to the line and shipment) step by step, improving the level oflogistics automation.
2. Coupled with the improvement of logistics automation efficiency,
Dahua promoted the application of internal and external turnover box-es in the supply chain, realizing the utilization of unied packaging andlogistics vehicles from material manufacturing, transportation, storage,turnover to product manufacturing by Dahua and its suppliers. At thesame time, with the application of disposable packaging materialsreduced, this measure has reduced consumption and enhanced envi-ronmental protection, while reducing employees' box changing actionsand improving their work e?ciency.? Digital platform management:
1. The independently developed IOT TPM platform has realized the
online management of equipment maintenance plan and implemen-tation, equipment safety operation and maintenance management,core equipment fault diagnosis and maintenance through the comput-er-computer, human-computer and computer-system interconnectionsof key equipment. At the same time, early warning and closed-loopmanagement have been realized for equipment operation and processdata acquisition and application, thus improving the safety and utiliza-tion of equipment.
2. Through the integration of SCP, APS, MES, WMS, WCS and other
systems, the digital and visual management of the whole process from
order to delivery has been realized, and the early warning managementof local business has been realized through core data collection and bigdata analysis. Facing the adverse factors, such as the complexity anddiversity of customer demands and the continuous increase of uncer-tainty in the supply chain environment, Dahua enhanced its risk man-agement ability over order delivery and improved customer satisfaction.
E?cient digital intelligent transportation manage-ment systemAs a practitioner of enterprise intelligence and digitization, Dahua con-tinues to promote the construction of digital intelligent transportationmanagement system by adhering to the principles of giving priorityto timeliness and service over everything else, as well as continuousinnovation. In the report period, the Company made multiple achieve-ments in the construction of digital intelligent logistics and digital intel-ligent customs capacity, leading the sustainable development of thelogistics industry.? Digital intelligent logistics scheduling platform: Through thedata interaction of EBS, MES, SCP, WMS, ICC and TMS systems,the online management of sales and delivery plan, production plan,logistics resource information, real time inventory information, trans-portation scheme planning, task execution, tracking and expensesettlement are put through. As the visualization of delivery nodes andthe traceability of logistics process are supported, the management oflogistics suppliers has been improved and the logistics services havebeen continuously perfected through data analysis and the monitoringof logistics timeliness and abnormalities.At the same time, Dahua hasconstructed domestic warehouses (CDC/RDC/PDC) and cooperatedwith logistics suppliers through agreement to realize the pre-allocationof warehouses and improve the logistics timeliness, with 12 - 24hdelivery guaranteed in Tier-1 cities and 24 - 48h delivery guaranteedin tier-2 and tier-3 cities. Through continuous optimization of overseaslogistics network, Dahua has expanded the multi-modal transport andnew mode of direct signing by shipping companies, improving thetimeliness of logistics from 85% to 90%.? Digital intelligent customs management platform: By establish-ing cooperation with suppliers and Hangzhou Customs and buildingits own bonded warehouse, Dahua managed to realize the intelligentmonitoring of customs and the automation of material warehousinglogistics and remote customs declaration, thus improving its emergen-cy response ability, reducing supply risk and capital occupation, andimproving material turnover rate and logistics timeliness.Through the digital intelligent customs service and tari? platform, thefull coverage of import, export, overseas and local tari? in 44 countrieswas put through, and the overall full link compliance control was re-alized. As a national pioneering project, the digital intelligent customsservice management platform has been included in the 2022 "Trail-blazer" and "Leading Wild Goose" key research projects of the provin-cial Science and Technology Department (Project No. 2022C03139),which was submitted by Hangzhou Customs Data Center and popular-ized in Zhejiang as Dahua digital intelligent customs service solution,which has enhanced the brand inuence of Dahua and facilitated itsmarket promotion.
Global Supply Chain Network 1 + 2 + 4 + n
In 2021, Dahua Zhilian obtained the AEO advanced certification. Atpresent, three companies of Dahua have been AEO-certied, whichreduces the customs inspection rate and improves the timeliness andconvenience of customs clearance. At the same time, through the AEOcertification process, the Company systematically sorts out and im-proves the weak points of internal control of Customs a?airs, making itpossible for the comprehensive promotion of preferential policy imple-mentation and ensuring the e?cient operation of import and export.
Supply Chain Management
Forging Ahead Hand in Hand, and Living in Harmony
Glories of the supply chain
In terms of social welfare, in 2021, Dahua Zhilian participated in the "Construct with One Heart"First Aid Training in Jiangzhou Village, Xintong Township jointly organized by Fuyang DistrictGrass-roots Committee, Xintong Township People's Government and Fuyang District First Peo-ple's Hospital to assist the "Rush for Construction and Time to Increase Production and Benet"activities by Xintong Township. And the Company was awarded the honorary certicate of "Enter-prise Contributing to 'Rush for Construction and Time to Increase Production and Benet'".
Growth of Distributors
The Company takes "joint construction and sharing" as the concept for the cooperation with distributors and always takes mutual growth with dis-tributors as a strategic focus.In the aspects of vocational and technical certication, operation and management, Dahua has established a perfect empowering mechanism fordistributor partners. In terms of vocational and technical certication, relying on 32 training centers across the country, Dahua managed to accom-plish training and certication for a total of 7726 man-times in 2021, covering 1230 distributors. Meanwhile, relying on the Dahua Cloud BusinessPlatform, live-stream open courses, covering all aspects such as products, solutions, technology and industry insight, are o?ered to distributor part-ners. 116 live-stream broadcasts and online courses were o?ered on Dahua cloud business platform in 2021, with a total of 224,000 participants.In the aspect of operation and management, Dahua regularly organizes core distributor partners to conduct intensive training and discussion onthemes from nancial management, contract business management to sales management, and carries out practical empowerment related to oper-ation and management relying on the co-construction system between Dahua and its distributor partners.Through the construction of multi-dimensional distributor empowerment system, Dahua has contributed to improve the overall ability of distributorpartners.In terms of distributor product and solution capacity building, 40,000+ training sessions were completed in 1,600+ large and medium-sized citiesworldwide in 2021, covering 1,700+ primary distributor customers, 8,600+ secondary distributors and 17,000+ small and medium-sized engineer-ing companies. Relying on the distributor conferences, promotional meetings, workshops, exhibitions vehicles, Internet live-stream broadcasts andother methods, the course contents covered products, SMB solutions, technology empowerment, technology certication, delivery, after-sales andother aspects. A total of 100+ courses were developed in 2021, with a total of more than 73,000 people participating in the training. In terms of jointoperation and common development, the Company actively carried out ve empowering systems of strategic benchmarking, organization bench-marking, purchase, sales and inventory benchmarking, resource investment benchmarking and product structure benchmarking, so as to jointlybuild the cooperation ecology with suppliers and achieve a sustainable, high-quality and steady development.
Open EcosystemUnder the tide of digital intelligence, open and integration havebecome a new business format for the development of smart IOTindustry. Facing the trillion-level smart IOT market, the empow-ering industry needs the joint participation and e?orts of multipleecological forces to realize digital intelligence upgrading. Adher-ing to the concept of "Full Ecosystem" and the exible technicalarchitecture, Dahua has constructed a complete open ecosystemand built comprehensive opening capacity from technology, busi-ness to service. It is committed to allowing more partners to jointhe ecological development system of Dahua, seeking commondevelopment, joint innovation and two-way empowerment withthe whole industry, and jointly realizing the industrial vision of "In-ternet of Things for a Future of Digital Intelligence".
Co-construction, win-win and symbiosis. Build a smart IOT ecological community.
Technology Ecosystem
1000+
Business EcosystemService Ecosystem
15,000+2,100+Open software platformIndustry solution devel-opmentOpen AI platformDHOP development...
Training and empowermentProfessional certicationTraining room constructionDelivery, operation andmaintenance...Supply chain integration
Industry summitMutual-guidance of tra?cChannel, customer andbusiness opportunitysharing...The establishment of a global service ecosystemEstablish a global service ecosystem centering on the To SMB/To B business strategy to realize local delivery, support the transformation of theCompany's solutions, and realize the reform from "equipment sales" to "the sales of equipment and service schemes". Comprehensively establisha service ecosystem from actions such as the import of the ecosystem, certication, contract-signing, authorization, order assignment, settlement,to realize the coverage of nationwide cities and the grid-based deployment of the ecosystem abroad. E?ectively support the local delivery of proj-ects, improve the delivery e?ciency and timeliness, reduce the delivery cost, relieve the labor shortage of the company, and set the technical anddelivery personnel from a large amount of small and medium projects.Currently, more than 600 domestic companies have signed a contract for the ecosystem and more than 200 overseas service providers havesigned a contract. The ecosystem has realized 100% coverage of cities in China and grid-based deployment abroad. More than 5000 orders havebeen assigned from the service ecosystem, which e?ectively supported the delivery of and services for more than 1000 projects. The ordinaryresponse time of the business process based on the service ecosystem is within 24 hours, which can e?ectively ensure the timely and e?cient de-livery of businesses.
Growth of Distributors/Open Ecology
Forging Ahead Hand in Hand, and Living in Harmony
Innovative development and global layout basedon environmental protection
As the global industry leader, Dahua is committed to improving theoverall competitiveness of the enterprise through continuous invest-ment and cultivation of technological innovation power. While focusingon technological innovation, Dahua takes environmental complianceas one of the ve major compliance baselines of products and alsothe important foundation for business operation. The Company makesunremitting efforts to satisfy customer demands with high-qualityproducts and services. In the process of active exploration of theoverseas market, Dahua continues with its global layout by utilizing itscomprehensive advantages in technology research and development,project design, service support, and green operation, further realizingits green expansion and business upgrade in the global market.Environmental GuidelineAdvocate green intelligent Internet of Things andlead the innovative development of environmentalprotection
Advocate green policy and set up green mechanism to comprehen-sively improve the environmental awareness of employees and sup-pliers. Incorporate environmental protection requirements into productresearch and development, design, manufacturing, and intelligentInternet of Things solutions, promoting research and development ofgreen technologies, and ensuring the continuous and e?ective opera-tion of the hazardous substances process management system duringfull range industry penetration and expansion, so as to practice greenmanufacturing and lead green development.
By establishing the Hazardous Substances Process Management System (HSPM) and the green certication scheme, Dahua has strictly followedthe requirements of QC080000 the Hazardous Substances Process Management System Standards and made active approach to o?er su?cientresponse to the regulations of the use of hazardous substances in electrical and electronic products required by customers in the global marketrepresented by the European Union and other environment protection related regulations, fully implementing the end-to-end environmental compli-ance business requirements. The operation of the system adheres to the practical and realistic principle, and the management and control proce-dure is systematic and standardized in coordination with Green Product Management (GPM) platform, enabling the upstream and downstream tobe synchronous, transparent, and e?cient.
Environmental Protection, Carbon EmissionReduction and Green DevelopmentInnovation-driven Approach to Green Development
Environmental Compliance Management System
Continue to meet customer demands and under-take global social responsibility with courageAttach great importance to the sustainable co-development of human andenvironment. In the process of global market expansion and businessupgrade, observe strictly with various national and regional environmentallaws and regulations, international conventions, and diversied customerdemands for environmental protection, improve customer's comprehen-sive service ability, and ensure product compliance. Minimize the adverseimpacts on environment and human health while making profits to beaccountable to shareholders and assuming legal responsibility.Explore the green value system and improve thee?ciency of environmental complianceDahua is always committed to environmental protection and produc-tion of green products. While focusing on providing quality productsand services, Dahua introduced and established environmental andoccupational health management system, and hazardous substancesprocess management system, to safeguard employee health, protectenvironment, produce green products, and minimize the adverseimpacts on environment from production activities, fully assumingits social responsibility of green and sustainable development. Inthe meantime, Dahua actively explores and experiments in e?ectiveenvironmental control schemes, as well as set up green product man-agement platform (GPM) to make green production and hazardoussubstance management intelligent and informatized, so as to improveenvironmental compliance efficiency on the premise of meeting theneeds of environmental risk management and control Dahua thorough-ly identies relevant laws and regulations of environmental protectionat home and abroad, and actively promotes environmental protectioneducation covering all employees and the whole supply chain.
Internal Audit
Contract review
Raw MaterialQualityTraining andDocumentManagement
ManufacturingProcess MonitoringSupplier Approval
Management
Finished Product
Quality
Exception Handling
ManagementReviewData AnalysisContinuousimprovement
DemandImport
OverallDesignDesign andPlanning
EngineeringDemo Machine
First BatchTrial
ProductionPrototypeMachineMarketAnalyze
LifeCycleSmall Batch +Mass Production
Release
SupportedOperation
PerformanceEvaluationImprovementPlanning
LeadershipFunction
CDP(Launch)
Life CycleConceptDesign and PlanningDevelopment and TestVerication and Release
Project set-up
TR1TR2TR3TR4TR5TR6TR4B
PDRADRLDR
ManagementPlanning
Internal AuditManagementReviewData Analysis
Output
Internal
Audit
Dahua General Hazardous Sub-stance Restriction RequirementsManagement
ReviewData Analysis
Input
Green Innovation Consciousness/Environmental Compliance Management System
Environmental Protection, Carbon Emission Reduction and Green Development
Environmental com-
pliance manage-ment organization
The environmental compliance management team of Dahua is a cross departmental organization led by senior manag-ers, and is responsible for dealing with environmental protection issues in business activities and formulating sustain-able environmental policies and medium and long-term reduction objectives.Environmental Compliance Group: Responsible for following up the interpretation, update, process transformation,management and implementation of all environmental regulations and requirements, as well as regularly reviewing thesuitability of environmental compliance management policies and making timely adjustments when necessary.Procurement, supply chain and other departments: Responsible for the formulation and implementation of the overallrequirements for environmental compliance of suppliers, carrying out relevant business activities in strict accordancewith the requirements, and identifying environmental protection risks in time.In addition, Dahua has established a unied business interchange window for environmental compliance to connectwith external environmental compliance requirements, suppliers' technical support, and internal process managementconsulting as the supplement to the compliance management system.Green design ofproducts
According to the identied domestic and overseas regulations and standards, including RoHS, REACH, CA65, PAHsand other representative environmental protection requirements, DH QP 055 Dahua General Hazardous SubstancesRestriction Requirements have been formulated. These requirements are synchronized internally and externally in theSuppliers' Portals and supplier quality agreements.In the early stage of product design and production, relevant regulatory requirements should be fully identied. Also, asone of the input requirements for the design and production of Dahua's own products, it is necessary to meet relevantrequirements, such as the limit of hazardous substances.Environmentalprotection proper-ties of materials andproducts
Each material in the material management system has its independent environmental protection property/ label (includ-ing nished products). In addition to providing the necessary RoHS inspection report and completing REACH sub-stance declaration requirements, material introduction shall carry out sampling inspection by the third party accordingto the environmental protection risk level.The environmental protection label of nished products is convoluted by the material BOM and bound to the sales area andtarget customers in the CRM sales system. Ordering of products that do not meet the environmental protection requirementsis restricted by the system to ensure compliance with the relevant policy requirements of the company's product complianceand trade compliance, and ensure the smooth global delivery of products in terms of environmental compliance.Supply chain intro-ductionand environmentalprotection risk iden-tication
Supplier environmental protection requirements: In order to be included as o?cial suppliers, all suppliers shall beinspected by SQE, procurement, and R&D on the site for supplier environmental protection review and sign EHS andEnvironmental Protection Commitment when being introduced into the supply chain. The on-site inspection includesbut is not limited to whether environmental protection management requirements of raw materials, and consumablematerials applied in the manufacturing process and key technologies meet the environmental protection requirements,and the implementation of other internal environmental protection management process of the supplier.Supplier introduction: The review group, composed of Procurement, R&D, SQE, and other departments, shall grade theassessment requirements, including environmental compliance requirements, according to the classication of suppli-ers, which can be included in the supplier system after passing the review. All suppliers are required to sign and complywith the relevant provisions of EHS and Environmental Protection Commitment in the Supplier Quality Agreement.Environmental pro-tection informationupdateand self-declaration
The Company independently developed the Green Product Management Platform (GPM), an environmental protectionsystem, forming an environmental compliance management mechanism from the material source. Trigger the updatemechanism: Update the environmental protection information of the materials which are still in mass production anddelivery every two years. Compliance declaration mechanism: Establish compliance declaration procedure based ondi?erent regulations to complete the collection and conrmation of substance information and compliance status.Chemical analysislaboratory
In 2018, Dahua founded a professional chemical analysis laboratory and put it into use to undertake the detection ofcomponents in hazardous substances and other testing and analysis for the environmental protection of internal products,as well as the verication of the environmental compliance for incoming material after mass production and delivery.Testing capability coverage: The chemical analysis laboratory conducts physical testing and chemical testing, whichis mainly composed of XRF (X-ray uorescence spectrometry), GC-MS (gas chromatography-mass spectrometer),and other core devices. The experiment operators can only operate after receiving a series of training in standards,operation, and safety awareness, and passing the examination. Meanwhile, in order to ensure the continued accuracyand e?ectiveness of internal test results, it is required to tighten internally the standard limit requirements, increase thequality control samples, and irregularly carry out the blind sample comparison tests in third-party laboratories.Environmentalprotection samplinginspection andcontrol of criticalprocess (CCP)
On the premise of full assessment of the environmental protection risks of materials, Dahua has developed an e?cientsampling inspection mechanism for incoming materials. Meanwhile, Dahua has conducted environmental compliancemonitoring of the processes of high risk and relevant consumables in the production process to eliminate environmentalcompliance risks of mass production to the greatest extent.Improvement ofenvironmental com-pliance awareness
Internal and external environmental compliance standard libraries have been established respectively, trainings onmanagement requirements have been carried out for relevant employees in the environmental compliance manage-ment system, and the education on external suppliers has been reinforced, so as to jointly enhance internal and exter-nal environmental compliance awareness.
Green sustainablemanagement
Dahua will review the environmental protection objectives set every year, including material introduction, signing ofenvironmental protection agreement by suppliers, achievement rate of sampling inspection, qualication rate of envi-ronmental protection quality, customer satisfaction, reduction achievement progress and other environmental indica-tors, which will be included in the performance appraisal, and has established the HSPM management system reviewmechanism.HSPM management system review mechanism: By combining the Hazardous Substances Process ManagementSystem with the Quality Management System, Dahua formulates its annual internal audit plan, conducts cross-depart-mental audit by professionally trained auditors, and fully veries the e?ectiveness of the system operation.Internal auditor team: In strict accordance with the Environmental Compliance Management System QC080000:2017,the internal auditors conduct internal review and regular management review every year according to the review planand correct the non-conformance items and items to be improved. At present, Dahua has more than 40 qualied inter-nal auditors in the eld of environmental protection with certicates, and they are distributed in horizontal departmentsat all levels.
Environmental Compliance Management System
Environmental Protection, Carbon Emission Reduction and Green Development
Visualized Data Integration
Environmental QualityManagement
Customer SupportBusiness OpportunityManufacturingDesign, Development and Verication of Designs
ProductDevelop-ment
SCP
EBS
OA
PLM
Demand Management
Collection of regulations
Supplier approval
management
Customer environmentalprotection agreement review
Online environmentalprotection declaration
Compliance informationoutput
Technical documentation
deliveryRegular sampling inspection
of chemical substancesfor incoming materialsDisposal process forabnormal incoming environ-mental goodsSubstance declara-
tion process
Data update process
Environmentalknowledge base
Compliance infor-
mation update
SamplinginspectionMaterialimportRegulationtrendupdateOnlinesubstancedeclaration
Reports andstatisticsBasicdatabaseComponentidentication
BOM convo-lution
ChangemanagementDiversied customer demandsfor environmental protection
Data interaction
Data interaction
Industry-specic environmentalrequirementsDynamic tracking
GPM Green Product Management Platform
Product Life Cycle (PLC)
The Green Product Management Platform (GPM) is a cross-platform IT system independently developed by Dahua Technology, dedicated to moree?ectively and comprehensively managing the green pro-environment features of products. This tool has fully realized the transition from the pre-vious passive, manual and fragmented environmental protection management to an intelligent and open environmental management platform fullyintegrated with existing business processes, greatly promoting the standardization and systematic process of environmental protection design,avoiding negligence caused by manual operations, improving the e?ciency of green product management, reducing the risk of excessive harmfulsubstances in products, lowering management costs, and enhancing customer satisfaction.
Dahua adheres to comprehensive management of hazardous substances from the source of upstream materials. Based on the comprehensiveassessment of environmental protection risks of manufacturing process and raw materials, Dahua continuously updates and optimizes basic environ-mental protection and hazardous substance information combined with internal whole-process environmental protection management based on lifecycle. Meanwhile, Dahua horizontally expands environmental certication requirements in order to achieve overall environmental compliance of prod-ucts. Hereby transfer the uncertain environmental protection risks from the single result demonstration to process management to improve the man-agement capabilities of all environmental protection processes to the greatest extent, and continuously reduce the environmental compliance risks.In the report period, more than 40,000 kinds of raw materials used by Dahua were provided with RoHS data. Data beyond the validity period of Dahuahave been continuously updated, with more than 8,000 copies updated in 2021. The RoHS sampling inspection pass rate of self-developed productsexceeds 99%, and the REACH declaration coverage of various material types reaches 100%. At present, the SCIP declaration for thousands of prod-uct models sold in Europe has been completed. The overall recovery rate of WEEE (Waste Electrical & Electronic Equipment of European Union)products has reached 80%, exceeding the standard requirements by more than 10%. According to 2021 internal audit, the Hazardous SubstancesProcess Management System (HSPM) has been running well. There are no major non-conformance items, all relevant processes and managementmeasures have been operated e?ectively, and there are no recalls or customer complaints caused by abnormal product environmental compliance. Interms of environmental compliance management, Dahua has received IECQ QC080000: 2017 Hazardous Substances Process Management SystemCertication. Moreover, it has also received green product certications, such as Five Star Certicate of Green Supply Chain Assessment, China Envi-ronmental Labeling Certication (Type I), and the title of "China Environmental Labeling Outstanding Enterprise".In the report period, Dahua China newly obtained China Environmental Labeling Certication (Type I) for 452 monitors, 80 high-performance com-puter products and 536 server products, and passed QC080000 third-party supervision and audit again with zero inconformity.
In the report period, Dahua established a new green manufacturer identication procedure to further rene the hierarchical management of sup-pliers, which improved the maintenance e?ciency of environmental protection data by 20%. At the same time, the second phase optimization andreconstruction of the supplier portal of Green Product Management (GPM) platform was carried out to realize the fully automatic triggering of thesubstance declaration process, e?ciently collect the information of all substances, and convolute, summarize and connect with the external decla-ration system, so as to meet the requirements of REACH regulation and SCIP notication.
Green Product Management Platform (GPM platform)
Environmental Protection Assurance and Certicationfor Products
QC080000Certication
Green Factory
Certication
Type IIChina Environ-mental Labeling
CerticationGreen Supply ChainFive Star Certicate
Type IChina Environmental
Labeling Certica-
tion
China Certica-tion of Environ-mental Products
CCEP
Green Product Management (GPM) Platform/Product Environmental Protection Quality Assurance and Certication
Environmental Protection, Carbon Emission Reduction and Green Development
Packaging Material Management
Environmental Protection, Carbon Emission Reduction and Green Development
Following the principles of lightweight, recyclable and sustainable, all packaging materials used by Dahua including paper, plastic, wood and met-al, as well as auxiliary materials such as packing straps and tapes, are regulated for hazardous substances according to the requirements of theEU94/62/EC Packaging and Waste Packaging Directives to ensure that the total content of lead, mercury, cadmium, and hexavalent chromiumtherein does not exceed 0.01% (100 ppm). Carton products shall strictly follow the relevant requirements of GBT 39084-2020 Green Product As-sessment-Packings for Express Service.Material RecoveryDahua implements the concept of "green development", vigorouslydevelops reverse logistics. By setting up the management departmentfor returned products, the Company has formulated Scrap Process, SellO? Process, Management Specications for Selling o? Scrap Materialsand Material Recovery Management Process to carry out centralizedprocessing of returned products, so as to promote the recycling and re-use of materials and improve the utilization value of scrapped materialsthrough scheme evaluation, renovation, processing and selling o?.In 2021, in order to strengthen the business compliance operationand improve the recovery efficiency, Dahua developed the returnedproducts management platform. The business development modewas thus transformed from the traditional mode to digital informationmanagement. With the online management of material return, materialreceiving, treatment scheme evaluation and implementation, the visualtraceability of the whole process was realized. At the same time, bydigging deep into data, the Company managed to reduce returnedproducts from the source, further reducing environmental pollution,waste generation and operating costs. The recovery rate of returnedproducts reached 37% in 2021.
Packaging Material Management
Returning of material
While reviewing the return request
Review the return schemes
Data informatizationThe whole process of return, receiving,scheme evaluation and material pro-cessing is managed on the platform,making the business process transpar-ent, compliant and traceable.
Material receiptReceive, count and record accord-ing to the Receiving Process ofReturned Products
Solution implementationAccording to the treatment solution,materials are recycled and handedover in strict accordance with the Man-agement Specications for Selling o?Scrap Materials, so as to realize thetraceability of the process.
Solution evaluationAccording to the Returned Prod-ucts Treatment Process, profes-sional evaluation and specifictreatment solutions are providedfor returned materials from theperspectives of product quality, lifecycle, and demand, among others.
Stainless steelKG23470Board without components (includ-
ing o?cut and cross-board)
KG23098Wave soldering slagKG19196.35
CableKG18431.3Steel meshKG11593.4Power supplyKG6221.1Copper clad plate(without components)
KG4610
MotorKG3843Manual solder slagKG2191.07
Copper wireKG1928Display screen larger than 30 inchesPiece1151Electroless Au plated board
(without components)
KG1099BatteryKG1072.2PCBA with componentKG1040
FanKG489Display screen smaller than 30
inches
Piece370
ChipKG280Waste solder paste tankKG239.85
Recovery classication (2021)UnitQuantity
Production material recovery list:
IronKG227442.1Waste trayKG140501AluminumKG87460
PlasticsKG71938.6
Recovery classication (2021)UnitQuantity
Green Packaging DesignThe packaging design of Dahua adheres to the principles of normal-ization, lightweight, green and recyclability. Dahua promotes energyconservation and consumption reduction in the upstream and down-stream of the packaging industry chain, realizes standardized andintelligent packaging design, reduces the use of packaging materialsand the proportion of plastic applications, and improves the utilizationof storage and transportation space through technological innovationand design innovation.? Standardized design of packagingBased on product characteristics and packaging requirements, Dahuamakes full use of the e?ective capacity and loading weight of logisticstransportation tools and storage space to promote the design of stan-dard packaging box. Based on the size of logistics module, 30,000standard packaging specification data are designed and divided.Combined with the actual product application requirements, about600 specications of outer packaging boxes previously used are uni-fied and designed into about 90 specifications of standard logisticspackaging boxes, reducing the specication types of outer packagingboxes by 85%, promoting the concentration and standardization ofproduction processing, improving the reuse rate of outer packagingboxes and reducing the loss caused by dull packaging boxes with cus-tomized specications. At the same time, since the standard boxes aresuitable for pallets, shelves, containers, etc., the utilization of storageand transportation space has been greatly improved, making the box-es also suitable for mechanized and automatic loading and unloading.
? Development and application of new film com-posite packaging technology
The innovative self-developed new lm composite packaging technolo-gy has applied the combined structure of high-strength new material lmand paperboard to the packaging of electronic products. By utilizing the100% recyclable green environment-friendly materials, a new packagingbusiness format as well as an automatic production technology havebeen created. The technology can provide products with green andsustainable overall packaging solutions with high protection, high reuse,high environment-friendliness, easy processing packaging easily t intocontainers, which can partially replace the traditional inner bu?er pack-aging. The reduced structure design can reduce the use of packagingmaterials by 40%, increase production capacity by 30% and improvethe utilization of storage and transportation space by 50%. Dahua iscommitted to practicing the low-carbon concept through technologicalinnovation. The innovation has solved the problems of normalizationand lightweight in the packaging industry to a certain extent, greatlyimproves the environment and safety of packaging production, andplays a positive role in promoting energy conservation and consumptionreduction in the packaging industry chain, reducing resource consump-tion, promoting the green transformation and upgrading of the traditionalpackaging industry, and improving the level of intelligent manufacturing.
? Design of EHS ecological pallet with paper re-placing plastic
The self-developed EHS ecological pallet with paper replacing plas-tic is a light-weight, high-strength, moisture-proof, impact resistant,environment-friendly paper tray created through combining the de-velopment of high-strength paper foot pier, new material compositetechnology, coating infiltration moisture-proof technology and othertechnologies. For the products delivered by one-time pallet, the useof paper to replace plastic and wood (pallet) has been realized, whichimproves the recycling and degradability of packaging, reduces weightby more than 50%, and lowers energy consumption in production.
Packaging Material Management/Energy Management
Environmental Protection, Carbon Emission Reduction and Green Development
? Design of reusable turnover box/palletDurable turnover boxes are used for the turnover of materials (parts)from suppliers and materials in the park, and recycled at the suppli-er's end and in the park. The turnover boxes come in five standardspecications. When the empty boxes are recycled, their space sizesare fully used for nesting and stacking, so as to improve the utilizationrate of storage and transportation space and reduce the loss of paperboxes. The nished materials in the production park are transportedand stacked with plastic pallets. The plastic pallets are light, impact re-sistant, recyclable and convenient for container loading and unit trans-portation. There are about 80,000 plastic pallets in the park. Replacingpaper pallets with them can save about 128 tons of paper every year.
Dahua takes energy saving and consumption reduction, and maximization of benets as its core objectives, adheres to the sustainable devel-opment concept of low energy consumption, low emission, and recycling, comprehensively plans and implements energy saving and emissionreduction from a strategic perspective of long-term development. Through the improvement of management, technology progress, and industrialstructure adjustment, Dahua has achieved continuous and reasonable reduction of overall energy consumption, provided comprehensive benetsof energy saving and emission reduction, and recycling economy, and maintained continuous improvement. Dahua has established a favorablesocial image of observing laws and disciplines and became the benchmark of energy consumption. The Company is dedicated to making greatercontribution to promote the development of the enterprise and the common development of local economy. During the reporting period, Dahua hasalways insisted on the sustainable development concept, and energy saving and consumption reduction to promote intelligent production aimingto build the green and intelligent factory. In order to enable the Company to follow the principle of continuous improvement of energy performanceand the systematization of energy management system, Dahua has established an energy management system and formulated Energy ReviewManagement Procedure. All departments shall compile Identication Table of Energy Management Factors according to the actual situation, im-plement the responsibility system for energy consumption reduction, and regularly invite qualied third party to identify and check energy manage-ment factors. We propose to post energy saving and consumption reduction signs in the park, advocating "Achieve multiple use of water to reducewaste from the source", "Save energy by turning o? lights to reduce residential electricity consumption", "Promote double-sided printing to reducewaste from the source", and "We are in action for low carbon service". In addition, the Company also proposes to carry out multiple energy savingand consumption reduction projects, aiming to build a green and intelligent park.Dahua Technology has adopted a series of energy management measures to dene energy-saving controls over the entire consumption of energysuch as electricity and natural gas in the main production process, supporting production process and auxiliary production process. A decision sys-tem based on objective data is established to comprehensively and meticulously improve energy e?ciency from the macro to the micro, manage-ment to implementation. Rened energy management is practiced to further enhance energy management and reduce production and operationenergy consumption.
Energy Management
Energy Management/Water Management
Environmental Protection, Carbon Emission Reduction and Green Development
Energy Reservation and Consumption ReductionPower and Environment Supervision System
In addition to the basic functions of electricity and gas consumption me-tering, billing, and statement analysis, the system also provides onlinereal-time monitoring of energy consumption, energy consumption diag-nosis and analysis, and other functions to o?er comprehensive energyconsumption management to managers, improve the efficiency andlevel of energy consumption management, and reduce operation cost.Energy Control CenterIt includes the functions used by the energy consumption detectionsystem and facilitates the reduction of energy cost and the estab-lishment of a decision-making system based on objective data, andprovides users with more in-depth functions and services from energysaving control and energy consumption management.The Company enables functions such as electricity and gas energyconsumption metering and billing, report analysis, constant onlinemonitoring of energy consumption, and energy diagnosis and anal-ysis, providing managers with comprehensive energy managementservices, to improve their e?ciency and level of energy managementand reduce operation and maintenance costs. The monitoring andmeasuring equipment required for energy management are calibratedand maintained in accordance with the Monitoring and MeasuringEquipment Control Procedures, and relevant recorded shall be saved,to ensure that the data provided by the equipment for monitoring keyfeatures is accurate and reproducible.As an industrial enterprise, the company accounts a relatively largeproportion in energy consumption. Dahua shall focus on strengtheningenergy management, fully tap into enterprise's potential in energy-sav-ing and emission-reduction, and e?ectively improve resource utiliza-tion, so as to put energy saving and emission reduction into practiceDahua has conducted thorough investigation on the public electricaldevices and facilities, formulated energy-saving renovation plans or
suggestions to gradually carry out the renovation, which has madeoutstanding achievements.
1. Intelligent power transformation of air conditioning: Based on the
national strategy of "carbon peak and carbon neutrality", the energy ef-ciency improvement solution was implemented in the Intelligent Park.An intelligent air conditioning energy-saving system was establishedby utilizing the air conditioning network management and intelligentIOT integrated management platform to reduce the power cost.
2. Transformation of precision air conditioning: The outdoor unit of
precision air conditioning was changed from manual water cooling toautomatic temperature-controlled cooling and heat dissipation to saveenergy and reduce consumption.
3. The 125W mercury lamp bulbs are replaced by 46W LED bulbs.
The lighting of garage, passageway, hall, elevator hall, and stairwayhave been divided into lighting for the day time and night time. Thenumber of lamps used has been reduced as much as possible on thepremise that the overall lighting requirements and complete and order-ly style can be ensured.
4. The 1KW high-voltage mercury lamps originally installed in the
basketball court and football eld are replaced with 500W LED lamp.The Company has strengthened the patrol inspection of high-powerelectromechanical equipment to ensure the motor is in good operationto improve e?ciency. Increase the maintenance of control equipment,reduce the number of overspeed shutdowns of high-power equipment,and reduce power consumption.
5. Do a good job in repairing old parts and reusing the waste. Repair
the replaced items such as documents, lamps, and ballasts. Reducethe use of new parts through repairing old parts by replacing compo-nents or reassembling.Electricity℃5158300378411334Natural gas10k m
9191631040392GasolineL4363634316Diesel oilL2656942955
Type ofEnergy
UnitConsumption in 2020Consumption in 2021
Comprehensive en-ergy consumption per10K yuan output value
kgce/RMB 10k3.543.48%Comprehensive elec-tricity consumption per10K yuan output value
kgce/RMB 10k2.823.00Comprehensive en-ergy consumption per10K units of product
kgce/10k units1702.251294.97Comprehensive elec-tricity consumption per10K units of product
kgce/10k units1306.531115.7
Assessment ItemUnit
Volume Achieved
in 2020
Volume Achievedin 2021
Municipal waterTon545530790857
Type of Water
Resource
Unit
Total Consump-tion in 2020
Total Consump-tion in 2021
Dahua Technology has established a strict water management system in accordance with the production process and relevant local laws, regu-lations and standards, to use water in a scientic and rational way, and improve the e?ciency of water utilization comprehensively. The Companyactively adopts advanced water-saving technologies, selects water-saving equipment and appliances, installs water-saving and spill-proof devices,to reduce water consumption and increase the reuse rate of water resources. Meanwhile, the Company also actively advocates the water-savingculture and creates the water-saving atmosphere, to further strengthen the conservation of water resources.The Company starts with sta? awareness by training all its new and old employees on water-saving awareness and methods, and continuouslypromoting energy saving and emission reduction within the Company. In the meanwhile, designated persons are assigned for patrol so that anyproblem once found can be rectied in a timely manner. The wastewater of the Company is mainly domestic sewage and the canteen oily waste-water is discharged to the municipal water pipe network after being treated in oil separation tanks according to the Integrated Sewage DischargeStandard. The discharged water body is annually detected and analyzed by the Binjiang Water Quality Analysis and Monitoring Station, and allindicators turn out to meet the relevant national standards.
Water Management
Oil-smoke and noise detection;Wastewater detection;
Discharge Management/Solid Waste Management /Hazardous Chemicals Management
Environmental Protection, Carbon Emission Reduction and Green Development
Dahua Technology is a high-tech research and development enterprise, and uses international advanced equipment and technology for produc-tion. Its workshops are equipped with exhaust systems to collect waste gas uniformly. Testing agencies regularly conduct on-site inspections andoutput the Industrial Exhaust Gas Inspection Report, showing that all indicators have met national relevant standards. Dahua has installed fumepurication devices certied by the environmental protection department to deal with oil fumes from canteens, which is fully processed before be-ing discharged.The measures adopted by Dahua to eliminate pollution sources are in accord with industrial policies, and clean production requirements. Thepollutant emission meets the corresponding national standard Therefore, the quality of the environment is not a?ected, and the ecological environ-ment will not be changed.
Emission Management
Total disposal amount of hazardous wasteTon8.5652.4Hazardous waste disposal densityTon/million revenue0.0004
Hazardous WastesUnitTotal in 2020Total in 2021Dahua has specically formulated the exclusive site management system for hazardous wastes and account management system according toLaw of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste to ensure the reasonable, stan-dardized, and e?ective management of hazardous wastes.
Solid Waste Management
According to relevant regulations, such as Safety Regulations on the Control of Dangerous Chemicals and Directory of National HazardousWastes, Dahua formulated Management System of Hazardous Chemicals and Regulations on the Management of Warehouse Chemicals to stan-dardize the daily safety management of hazardous chemicals, so as to reduce the risk of environmental safety and ensure the personal safety ofemployees.Supplier management: Dahua signs safety management agreement with suppliers and transportation units of hazardous chemicals, veries theirqualication certicates (including Hazardous Chemicals Business License and Hazardous Chemicals Operator Certicate, etc.), and keep thecopies in record.Storage: The Company has set up independent warehouses for hazardous chemicals. In addition to the original basic explosion-proof electrical, itcarried out explosion-proof transformation, added explosion-proof boxes and explosion-proof combustible gas detectors for the hazardous chemi-cals warehouses, and passed explosion-proof, lightning protection and anti-static tests by third-party professional organizations in the report peri-od. The warehouse keepers of hazardous chemicals were required to hold the Certicate of Hazardous Chemicals Management Personnel issuedby the Emergency Management Department and do a good job in stocking in and stocking out strictly following the management requirements ofthe government and the company.
Hazardous Chemicals Management
Hazardous Chemicals Management/Clean Technology Application
Environmental Protection, Carbon Emission Reduction and Green Development
Usage: The explosion-proof cabinets in the production workshops are positioned at xed points, MSDS signs are posted, ventilation and elec-trostatic grounding e?ectiveness are maintained, and operators are trained on the safety knowledge of hazardous chemicals regularly. Damagedwarning signs are replaced regularly every year, and Operators are required to correctly wear labor protection equipment that meets MSDS re-quirements. The workshops are equipped with eye washer, chemical absorbent cotton and other emergency materials.Treatment: Independent hazardous waste warehouses have been set up. Hazardous wastes are classied and collected in strict accordance withnational requirements, and are treated by qualied third-party organizations entrusted on regular basis.
Explosion-proof transformationWorking With CerticateWorkshop hazardous
chemicals management
Dahua always adheres to the responsibility of protecting the environment and practicing green development. In the report period, the Companyactively carried out innovative green design for products, reduced product energy consumption and promoted green expansion and business up-grading in the global market through clean technologies.Clean Technology and Applications
Surface spray-free technologyThrough the optimization of functional characteristics and on the premise of maintainingproduct performance, some spray-free materials have been adopted, and the spray-ing process has been canceled for some materials, so as to reduce the environmentalpollution caused by the spraying process. Based on the annual production capacity of3 million units, 257,400 kW-hr of electricity can be saved and 102.96 tons of standardcoal combustion can be decreased, reducing carbon dioxide emission by 256.63 tons,dust emission by 28.01 tons, sulfur dioxide emission by 3.09 tons, and nitrogen oxideemission by 1.54 tons.
Clean technology products (single product clean technology application)
Small-space LED screen and controllerIn the product design of small-space LED display screen, energy saving and coolingare considered from the aspects of LED lamp beads, driving chip, driving circuit designand driving control mode. Flip chip, common cathode, high integration, dynamic energysaving and other technologies have been adopted to improve the luminous e?ciency. Atthe same time, the controller detects the ambient light intensity through photosensitivityand adaptively adjusts the brightness of LED screen, which not only improves the view-ing sensory experience, but also reduces the product energy consumption, Finally, theenergy consumption of the whole product is reduced by 60% compared with the originalproduct.LED ll lightBy replacing high-power stroboscopic ll light with low-power dim ll light, low-power lllight can be achieved while the light only ashes to provide ll light when capturing pic-tures, reducing power from 50W to 15W and saving energy by 70%.Second generation face recognition equipmentScreen is adopted to provide ll light instead of the traditional white light, which reducesthe white light pollution of the equipment and the overall power consumption. Accordingto the estimated annual sales volume of face equipment, the face equipment producedevery year can save about 10,000 kW-hr of electricity for the world.
In order to e?ectively maintain normal operation order of the park, and ensure property interests, personnel safety and R&D safety at the park, Da-hua Technology has established Security Rules and Regulations based on Regulations on the Supervision and Inspection of the Internal Securityand Safeguard for Enterprises and Public Institutions by Public Security Organizations, Regulation on Internal Security and Safeguard for Enter-prises and Public Institutions, and others. The main contents include:
1. Regulations: Security guard responsibility, duty system, handover system, and rewards and punishments system;
2. Security guard manual;
3. Emergency response of security guard;
4. Service courtesies and more.
Safety management system is an important branch of safety governance. Based on the “ve elements” of people, machine, material, environment,and management, a safety management system for park safety is established in compliance with requirements such as safety standardization andEHS, o?ering real-time, highly integrated, and classied management and enabling timely warning of dangers to quickly locate the exception andreduction the scope and level of dangers.The Company strives to make the park highly e?cient, intelligent-controlled and safe. In 2021, the park was selected as the "Safety DemonstrationUnit" of 2019-2020 by the "Safety Creation" Leading Group of Hangzhou Municipal Party Committee. In the process of pandemic prevention andcontrol, we improved the management through intelligent means such as smart apartment management system and smart park comprehensivemanagement platform, so as to achieve accurate pandemic prevention.
1. Intelligent elevator control system:
The system can realize online personnel identication management, active identication of trailing and blacklist alarm, background log query andanomaly monitoring.
2. Smart apartment management system:
Combined with the characteristics of the park, the system can handle check-in and check-out online in batches, and delicately manage dormitoriesand beds. Through the linkage of all-in-one human-ID card machine and entrance and exit gate machine, the safety of employees is ensured. Es-pecially during the pandemic and special periods, close contacts can be screened out and personnel in temporary quarantine can be monitored.
3. Integrated security and re protection management system:
Nearly 8,000 points in the park, including detection points, water tanks and liquid levels, are e?ectively monitored. Abnormal power consumption ise?ectively monitored to eliminate the potential safety hazards of power consumption. Through the cooperation with ICC, visual monitoring on thekey re control areas is achieved
4. Smart park integrated management platform:
Elevator control, apartment management, integrated security and re protection management, energy management, access control, gate, vehiclemanagement, perimeter management and other systems are integrated to protect the safety of personnel and property in the park.
Security Practices
Safety Management Monitoring SystemClean Technology Application/Security Practice /Safety Management Monitoring System
Environmental Protection, Carbon Emission Reduction and Green Development
Intelligent air switch
Real-time alarm and emergency power-o? protection can be carried out for integratedpower consumption detection, control module, as well as real-time monitoring of voltage,current and temperature by providing energy consumption data, so as to support intelli-gent power consumption and reduce energy consumption while ensuring power safety. Itcan be adapted to a variety of energy-saving power solutions. For example, in the intel-ligent lighting system, where dynamic lighting mode is adopted, with the time fragmenta-tion and independent energy saving, the energy-saving rate can reach up to 70%.Low power consumption monitoring system scheme of solar power supplySolar energy is converted into electric energy through photovoltaic panels and stored inlithium batteries to power the monitoring system. Video data is transmitted through 4Gnetwork to provide a complete set of clean and pollution-free monitoring system solutionsfor remote areas where power supply and network wiring are di?cult. Low power designis adopted to support normal operation in continuous rainy days; Power is collected inreal time to realize video superposition, and the battery power is clear at a glance; Thescheme supports all 4G networks and can realize the remote wake-up through SMS,which is not only power-saving but also convenient to operate.
Clean technology products (single product clean technology application)
Safety Management Monitoring System/Green Awareness Upgrading
Environmental Protection, Carbon Emission Reduction and Green Development
Dahua strives to create a green, safe, and harmonious environment, since the corporate sustainable development is inseparable from the en-hancement of employees' environmental protection awareness. An energy-saving and emission-reduction atmosphere is created through wayssuch as announcing its environmental management strategy through the corporate portal, setting up o?ce computer screen savers to publicizeits pro-environment policy, releasing energy conservation and consumption reduction initiatives, optimizing equipment operating parameters, andsetting up energy-saving and consumption-reduction administrators, to help employees improve their awareness of environmental protection in asubtle way, and enable employees to work in a robust and sound environment. Dahua Technology also attaches great importance to jointly fulllingcorporate social responsibility with its supplier partners. While promoting green sustainable development, it also drives the supply chain to jointlycontribute to the sustainable development of society.In the report period, Dahua has established a highly professional library of environmental protection laws and regulations, a universal library ofinternal standard cases and a document library of related external suppliers. At the same time, Dahua learning platform pushed learning plansand examinations for more than 6,000 employees in environmental compliance-related posts, forming a systematic publicity channel fully coveredby the multi-dimensional closed-loop of "three libraries and one examination", so as to convey the rigorous concept of environmental complianceof Dahua internally and externally and further improve the business skills of relevant parties. Throughout the year, 13 new internal and externalperiodicals were compiled and pushed and 4 sessions of special o?ine training for new employees and horizontal business departments were or-ganized to further deepen the inuence of environmental protection publicity.
Upgraded Green Consciousness
Supplier quality training camp - Environmental Compliance and Control Requirements of Dahua
Introduction toProposition 65 (SafeDrinking Water andToxic EnforcementAct of 1986)
O-benzene controlcase sharing
National standardVOC regulation infor-
mation
Carbon neutralitynews sharing
Global RoHSregulation overview
Introduction to GPMplatform function
Environmental compliance promotion journal
Environmental compliance o?ine training
Zhejiang Listed Company Best Internal Control Award
School of Management of Zhejiang University,the Listed Company Association of Zhejiang2021 China ESG Golden Awards-Social (S) Responsibility AwardSina Finance
Top 100 ESG Companies in A stock MarketSecurities TimesChina Listed Company Best Investor Relationship AwardSecurities Times
Evergreen AwardCaijing MagazineZhejiang Quality AwardThe People’s Government of ZhejiangOutstanding Contribution Award for Pandemic Prevention and ControlSponsored by Hangzhou Daily Newspaper Group
Top 50 Enterprises of Best Practices for2021 China Digital Economy Industry
APEC China Business CouncilTop 100 National Quality and Credit Benchmarking EnterpriseChina Association for Quality InspectionContribution Award in Combating Pandemic for International Contractors
in Zhejiang Province
Zhejiang International Contractors AssociationZhejiang Red Cross Society Special Contribution Award for COVID-19
Pandemic Prevention and Control
Zhejiang Red Cross SocietyNational Product and Service Quality Integrity Demonstration EnterpriseChina Association for Quality Inspection
National Security Industry Quality Leading BrandChina Association for Quality InspectionNational Outstanding Enterprise in Quality and CreditChina Association for Quality InspectionNational Advanced Enterprise in Quality and IntegrityChina Association for Quality Inspection
Zhejiang Top 100 Enterprises
Zhejiang Enterprise Federation, Zhejiang Enterprise DirectorsAssociation and Zhejiang Federation of Industrial Economics2021 China Top 100 Innovation EnterprisesChina Enterprise Confederation/China Enterprise Directors Association
2021 China Top 500 EnterprisesChina Enterprise Confederation/China Enterprise Directors Association2021 Top 100 Enterprises in China's Strategic Emerging IndustriesChina Enterprise Confederation/China Enterprise Directors Association
2021 China Top 500 Manufacturing EnterprisesChina Enterprise Confederation/China Enterprise Directors Association
NameAwarding Unit
Appendix 1
Enterprise Honors of Dahua Technology
Appendix 2
Sustainability Reporting Guidelines (GRI Standards) Index
Standards
Disclosure
Issue/DisclosureItem
Disclosure ItemChapter IndexPage Index
Organi-zationOverview
102-1Organization NameAbout This ReportP1
102-2Activity, Brand, Product and ServiceAbout DahuaP4
102-3Headquarter LocationAbout This ReportP1
102-4Operation PlaceAbout This ReportP1
102-6Service MarketAbout DahuaP4
102-7Organization SizeAbout DahuaP4
102-8Information about Sta? and Other WorkersAbout DahuaP4
102-9Supply ChainSupply Chain ManagementP47~49Strategy
102-14Statement of Senior Decision-MakerStatement from the ChairmanP3
102-15Key Impacts, Risks, and OpportunitiesRisk ManagementP14Ethics and
Integrity
102-16Value, Principle, Standard and Code of ConductAbout DahuaP4
102-17Mechanism of Ethical Advice and ConcernsEthics and IntegrityP11~12Gover-nance
102-18Governance Structure
Build an E?cient and Transparent Gover-
nance System
P10
102-30E?ects of Risk Management ProcessRisk ManagementP14InterestedParty Par-ticipation
102-40Group List of Interested PartyInterested Party ParticipationP18~19
102-42Reorganization and Selection of Interested PartiesInterested Party ParticipationP18~19
102-43Interested Party Participation PolicyInterested Party ParticipationP18~19
102-44Main Topics and Concerns RaisedFocus on Substantive IssuesP19
Report andPractice
102-45Entity Covered in Consolidated Financial StatementAbout This ReportP1
102-46Denition of Report Content and Issue BoundaryAbout This ReportP1
102-47List of Substantive IssuesFocus on Substantive IssuesP19
102-50Reporting PeriodAbout This ReportP1
102-51Date of Latest ReportApril 25, 2022
102-52Reporting CycleAbout This ReportP1
102-53Contact Information on Report IssuesAbout This ReportP1
102-55GRI Content IndexAppendix 2 GRI Standards IndexP61~65
201Economic PerformancePerformance Summary 2021P2Man-agementMethod
GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsPerformance Summary 2021P2103-3 Evaluation on Management MethodPerformance Summary 2021P2
Economy
201-1Economic Value Directly Generated and DistributedPerformance Summary 2021P2
202Market PerformancePerformance Summary 2021P2GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsPerformance Summary 2021P2103-3 Evaluation on Management MethodPerformance Summary 2021P2
204Purchasing PracticeSupplier ManagementP44~47GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsSupplier ManagementP44~47103-3 Evaluation on Management MethodSupplier ManagementP44~47
205Anti-corruptionAdhere to Compliant Integrity OperationP11~12GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsAdhere to Compliant Integrity OperationP11~12103-3 Evaluation on Management MethodAdhere to Compliant Integrity OperationP11~12205-2
Communication and Training of the Policies and Procedures of
Anti-corruption and Anti-commercial Bribery
Adhere to Compliant Integrity OperationP11~12
206Unfair Competition BehaviorFair CompetitionP13
Appendix 2
Sustainability Reporting Guidelines (GRI Standards) Index
Standards
Disclosure
Issue/Disclosure
Item
Disclosure ItemChapter IndexPage Index
Economy
GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19
103-2 Management Method and Its ComponentsFair CompetitionP13103-3 Evaluation on Management MethodFair CompetitionP13
206-1
Legal Actions for Anti-competitive Behavior, Anti-trust,
and Monopoly Practices
Fair CompetitionP13
Environment
301Material
Forging Ahead Hand in Hand,and Living in Harmony
P44~57GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its Components
Forging Ahead Hand in Hand,and Living in Harmony
P44~57103-3 Evaluation on Management Method
Forging Ahead Hand in Hand,and Living in Harmony
P44~57301-1Weight or Volume of Materials AppliedPackaging Material ManagementP53~54301-3Recovered Products and Their Packaging MaterialsPackaging Material ManagementP53~54302EnergyEnergy ManagementP54~55GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsEnergy ManagementP54~55103-3 Evaluation on Management MethodEnergy ManagementP54~55302-1Energy Consumption within the OrganizationEnergy ManagementP54~55302-3Energy IntensityEnergy ManagementP54~55302-4Reduction of Energy ConsumptionEnergy ManagementP54~55302-5Reduction of Energy Demand for Products and ServicesEnergy ManagementP54~55303Water Resource and Sewage
Water Resource Managementand Discharge Management
P55~57GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its Components
Water Resource Managementand Discharge Management
P55~57103-3 Evaluation on Management Method
Water Resource Managementand Discharge Management
P55~57303-1Interactions with Water as a Shared Resource
Water Resource Managementand Discharge Management
P55~57305EmissionEmission ManagementP56GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsEmission ManagementP56103-3 Evaluation on Management MethodEmission ManagementP56305-1Direct (Scope 1) GHG EmissionsEmission ManagementP56305-2Energy-related Indirect (Scope 2) GHG EmissionsEmission ManagementP56305-4Greenhouse Gas Emissions IntensityEmission ManagementP56306Sewage and WasteEmission ManagementP56~57GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsEmission ManagementP56~57103-3 Evaluation on Management MethodEmission ManagementP56~57306-2Total Amount of Waste Classied by Category and Treatment MethodEmission ManagementP56~57306-4Hazardous Substance TransportationEmission ManagementP56~57307Environmental ComplianceEmission ManagementP56~57GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsEmission ManagementP56~57103-3 Evaluation on Management MethodEmission ManagementP56~57308Supplier Environment EvaluationSupplier ManagementP44~47GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsSupplier ManagementP44~47103-3 Evaluation on Management MethodSupplier ManagementP44~47308-1New Suppliers Screened by Environmental StandardsSupplier ManagementP44~47
Appendix 2
Sustainability Reporting Guidelines (GRI Standards) Index
Social
401EmploymentCaring For Employees, Shaping Common DevelopmentP36~40GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsCaring For Employees, Shaping Common DevelopmentP36~40
103-3 Evaluation on Management MethodCaring For Employees, Shaping Common DevelopmentP36~40
401-2
Benets Provided to Full-time Employees (Temporary or Part-time
Employees Not Included)
Caring For Employees, Shaping Common DevelopmentP36~40
401-3Parental LeaveCaring For Employees, Shaping Common DevelopmentP36~40
402Employment RelationsCaring For Employees, Shaping Common DevelopmentP36~40GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsCaring For Employees, Shaping Common DevelopmentP36~40103-3 Evaluation on Management MethodCaring For Employees, Shaping Common DevelopmentP36~40
403Occupational Health and Safety
Organizational Structure for Occupational Health and
Safety Management
P41~43GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its Components
Organizational Structure for Occupational Health and
Safety Management
P41~43103-3 Evaluation on Management Method
Organizational Structure for Occupational Health and
Safety Management
P41~43403-2
Categories of Occupational Injuries, Rate of Occupational Injuries,Occupational Disease, Working Days Lost and Absence
Organizational Structure for Occupational Health and
Safety Management
P41~43404Training and EducationCaring For Employees, Shaping Common DevelopmentP36~40GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsCaring For Employees, Shaping Common DevelopmentP36~40103-3 Evaluation on Management MethodCaring For Employees, Shaping Common DevelopmentP36~40404-1Average Number of Training Hours Per Employee Per YearCaring For Employees, Shaping Common DevelopmentP36~40404-2
Employee Skills Improvement Program and Transition Assistance
Program
Caring For Employees, Shaping Common DevelopmentP36~40405Diversication and Equal OpportunityCaring For Employees, Shaping Common DevelopmentP36~40GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsCaring For Employees, Shaping Common DevelopmentP36~40103-3 Evaluation on Management MethodCaring For Employees, Shaping Common DevelopmentP36~40405-1Diversity of Governance and EmployeesCaring For Employees, Shaping Common DevelopmentP36~40406Anti-discriminationCaring For Employees, Shaping Common DevelopmentP36~40GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsCaring For Employees, Shaping Common DevelopmentP36~40103-3 Evaluation on Management MethodCaring For Employees, Shaping Common DevelopmentP36~40407Freedom of Association & Collective BargainingCaring For Employees, Shaping Common DevelopmentP36~40GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsCaring For Employees, Shaping Common DevelopmentP36~40103-3 Evaluation on Management MethodCaring For Employees, Shaping Common DevelopmentP36~40408Child LaborCaring For Employees, Shaping Common DevelopmentP36~40GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsCaring For Employees, Shaping Common DevelopmentP36~40103-3 Evaluation on Management MethodCaring For Employees, Shaping Common DevelopmentP36~40409Forced or Compulsory LaborCaring For Employees, Shaping Common DevelopmentP36~40GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19
103-2 Management Method and Its ComponentsCaring For Employees, Shaping Common DevelopmentP36~40103-3 Evaluation on Management MethodCaring For Employees, Shaping Common DevelopmentP36~40410Security Practices
Organizational Structure for Occupational Health and
Safety Management
P41~43
Standards
Disclosure
Issue/DisclosureItem
Disclosure ItemChapter IndexPage Index
Appendix 2
Sustainability Reporting Guidelines (GRI Standards) Index
Social
GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its Components
Organizational Structure for Occupa-tional Health and Safety Management
P41~43103-3 Evaluation on Management Method
Organizational Structure for Occupa-tional Health and Safety Management
P41~43413Local Community
Public Welfare ActivitiesEnvironmental Protection, Carbon Emis-sion Reduction and Green Development
P25~26P50~59GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its Components
Public Welfare ActivitiesEnvironmental Protection, Carbon Emis-sion Reduction and Green Development
P25~26P50~59103-3 Evaluation on Management Method
Public Welfare ActivitiesEnvironmental Protection, Carbon Emis-sion Reduction and Green Development
P25~26P50~59414Supplier Social EvaluationSupply Chain ManagementP47~49GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsSupply Chain ManagementP47~49103-3 Evaluation on Management MethodSupply Chain ManagementP47~49416Customer Health and Safety
Professional Service and Delivery for
Global Customers
P35GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its Components
Professional Service and Delivery for
Global Customers
P35103-3 Evaluation on Management Method
Professional Service and Delivery for
Global Customers
P35416-1
Health and Safety Impact Assessment of Products and
Services
Professional Service and Delivery for
Global Customers
P35417Marketing and Identication
Growth of distributors/Development ecosystem
P49GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its Components
Growth of Distributors/Development Ecosystem
P49103-3 Evaluation on Management Method
Growth of Distributors/Development Ecosystem
P49417-1
Information and Identication Requirements of Products and
Services
Growth of Distributors/Development Ecosystem
P49418Customer PrivacyData ProtectionP12GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsData ProtectionP12103-3 Evaluation on Management MethodData ProtectionP12418-1
Substantiated Complaints Related to Infringement of Customer
Privacy and Loss of Customer Data
Data ProtectionP12419Social Economic ComplianceCompliance ManagementP12~13GRI 103：
ManagementMethod 2016
103-1 Description of Substantive Issue and Its BoundaryESG ManagementP15~19103-2 Management Method and Its ComponentsCompliance ManagementP12~13103-3 Evaluation on Management MethodCompliance ManagementP12~13
Standards
Disclosure
Issue/DisclosureItem
Disclosure ItemChapter IndexPage Index
ENABLING A SAFER SOCIETY AND SMARTER LIVING
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Zhejiang Dahua Technology Co., Ltd. │ Headquarter address: 1199 Bin’an Road, Binjiang District, Hangzhou, Zhejiang │ Stock code: 002236 │Website: www.dahuatech.com │ Service hotline: 400-672-8166