2019 Environmental, Social and Governance Report 2019 Environmental, Social and Governance Report of Dahua Technology Co., Ltd. 2019 Environmental, Social and Governance Report of Zhejiang Dahua Technology Co., Ltd.

About This Report Table of Contents

This report describes the actual practice of Zhejiang Dahua Technology Co., Ltd. Statement from the Chairman Environment (hereinafter referred to as the Company, Dahua, or Dahua Technology) in fulfilling Environmental Protection First in the Global Innovation-Driven its social responsibilities while achieving its development in 2019. It also details the /04 Who We Are Development /29 Company's efforts at corporate governance, integrity management, the protection Control Measures for Green and Innovation-Driven Development /30 of shareholders' rights and interests, technological innovation, environmental Global Network /06 Use and Management of Chemicals /32 protection, and public service activities, which is intended to strengthen the Dahua Heart of City /07 Energy Management /33 communication and connection between stakeholders and the Company. Core Products /09 Basis of Preparation /10 This report is made according to the "Sustainability Reporting Guidelines" issued Major Performance Governance by the Global Reporting Initiative (GRI) and the " Social Sustainable Development Management /11 Corporate Governance /35 Responsibility Instructions to Listed Companies", and the Company's actual Integrity and Compliance Management /37 situations. Anti-corruption and Anti-commercial Bribery /38

Network Security Guarantee System /39 Time Scope Social Customer Data and Privacy Protection /43 The reporting period is January 1, 2019, through December 31, 2019, and some Actions of Sustainable Development /13

information may be beyond this scope. Smart Internet of Things /14

Smart Ecosystem /15 Report Scope Business operation Smart Environment /16 The report covers the information of Zhejiang Dahua Technology Co., Ltd. and its Innovation R&D /45 Fight Against the Coronavirus Pandemic /17 major subsidiaries. Green Supply Chain /46 Public Welfare /18 Ingenious Manufacturing /49

Data Source Global Delivery and Service of Professional Integration /41 Information and cases disclosed in this report are mainly from the official documents, reports and relevant open data of Dahua and its major subsidiaries. Talent The Company's board of directors is responsible for the authenticity, accuracy, and Talent /21 Key Performance Indicators for Sustainable completeness of this report. Occupational Health and Safety Management /23 Development/52 Democratic Management /26 Data Description Human Rights Management /27 Appendixes:

The Company's financial statements of this year, the related documents, and the Dahua Employee Care Activities /27 Awards and Certifications /53 company's statistics. Zhejiang Dahua Technology Co., Ltd. reserves the right to Sustainability Reporting Guidelines (GRI Standards) Index /54 interpret this report.

Release Method 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 beyond this report, refer to the Company's annual report or visit the Company's website.

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Statement from the Chairman

Core Values Integrity, Dedication, Responsibility, Openness, Innovation

In compliance with the development trend of the digital economy, Dahua has accelerated the implementation of core technologies such as artificial intelligence, as well as the strategic planning and marketizaation of "Dahua Heart Vision of City", and continuously endeavored to improve such core capabilities as AIoT and SDTV. The Company has released The World-leading Video-centric the new big data platform, DAHUA GAIA, which establishes Smart IoT Solutions and Service Provider a closed loop for the customer-oriented value chain to empower different industries and lead the era of "smart twins". To adhere to our customer-centered value and better serve our customers, Dahua has launched a full-scale business transformation and management reform, aiming to enhance its systematic capabilities and operating efficiency.

Faced with the uncertainties of the global macroeconomic environment, the rapid development of new technologies, Mission and people's aspirations and demands for a better life, all Enabling a Safer Society and Smarter Dahua employees will remain fully committed to the great mission of "enabling a safer society and smarter living" and Living step up investment in technological innovation to bring safe and intelligent digital experience to cities, businesses, and individuals around the world. We are devoted to making new and greater contributions to social development and Fu Liquan environmental protection. With our mission in heart, we forge ahead with unswerving determination and keep up our down- to-earth spirits to deepen reforms.

Core Concepts

Customer-oriented, Employee-based

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Who We Are

Zhejiang Dahua Technology Holdings Co., Ltd. is a world-leading video-centric smart • Released the AIoT and SDTV strategies IoT solution and service provider, offering end-to-end video surveillance solutions, • Launched the GAIA big data platform systems, and services based on technological innovation, to create value for urban operation, enterprise management and the life of individuals. Future The Company has more than 16,000 employees, over 50% of which are engaged AIOT in R&D. Since the launch of the industry’s first independently developed 8-channel SDTV • Brought in the IT common cloud technology embedded DVR in 2002, Dahua Technology has devoted itself to technological Put the smart (IoT) industrial park innovation and been continuously increasing its investment in R&D. Every year, • Set up the Imou (formerly Lechange) brand to into operation around 10% of its sales revenue is invested in R&D. The company continues to enter the civilian video surveillance market explore emerging opportunities based on the video IoT technologies and has already • Established the first overseas branch in the Unit- established businesses in machine vision, video conferencing systems, professional ed States 2018 drones, smart fire control, electronic license plates, RFID, and robotics, etc. 2019

Launched the independently developed HDCVI technology, which was subsequently 2016 Become a provider of video-centric and AI-based Listed on the Shenzhen Stock Ex- adopted by the HDcctv Alliance and smart IoT solutions and operation services change in May 20 became the first international standard in 2017 Dahua Established Zhejiang Dahua the domestic security industry HOC Technology Co., Ltd. and entered

the video surveillance industry 2013 Expanded overseas busi- • Launched the new smart city architec- nesses 2014 ture —— Dahua Heart of City • Launched the European Supply Center 2010

2007 2002 2012 Obtained the CMMI5 certification, which 2008 Launched the technology of "Hard- established the company's global leading 2001 2003 ware-like Software Platforms", position in software development making large-scale deployment and maintenance easy

• Brought in the CMOS technology and launched the Launched the intelligent all-in-one trans- high-definition high-magnification camera portation solution, the records of which • Established the first post-doctoral mobile station in Invented the 8-channel audio-video synchro- become the de facto standard of China's China's security industry nization embedded DVR and created the No.1