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Dahua Technology, global video-centric smart IoT solution and service provider, released its 2018 annual report, which demonstrates stable growth in the past year as well as prospects for the future.

During the reporting period, Dahua Technology has achieved RMB 23.666 billion in operating income, representing an increase of 25.58% on a year-on-year basis; net profit attributable to the shareholders of listed companies was RMB 2.529 billion, indicating a year-on-year growth of 6.34%.

Dahua Technology’s continuous growth results from the following core competencies:

High R&D investment in core technologies Innovation is an important source of power and core competitive advantage for the development of Dahua Technology

Innovation is an important source of power and core competitive advantage for the development of Dahua Technology. In 2018, the company's R&D investment accounts for 9.65% of the annual sales revenue, which are focused on artificial intelligence, cloud computing, big data, chips and other future-oriented core technologies to enhance R&D capabilities and accelerate the technology commercialisation. In the past year, Dahua AI algorithms ranked first in as many as 13 lists of KITTI VISION competitions and Dahua facial recognition algorithm ranked first among domestic manufacturers in 2018 NIST facial recognition competition for natural scenarios. The company makes use of the industry-leading innovative capabilities to pursue and grasp new development opportunities, opening up new growth space.

Deep insight into customer demands 

Focusing on customer demands, Dahua Technology has constantly expanded and upgraded its business models, so as to independently offer comprehensive solutions and operational services in entire industrial chain of video surveillance. In 2018, Dahua Technology further streamlined the standardised solutions and provided tailored solutions for safe city, smart traffic, smart retail and other key industries. It also launched a series of smart front-end products and servers to satisfy the smart application scenarios and solidify the implementation of Dahua Heart of City (HOC) strategy - a smart city development engine supported by Full Sensing, Full Intelligence, Full Computing, and Full Ecosystem (4 Full) capabilities.

Establishing a globalised marketing network

2018 overseas revenue reached RMB 8.578 billion (accounting for 36.25% of total revenue and an increase of 26.01% year-on-year). Dahua Technology has established a global marketing and service network with 54 overseas subsidiaries and representative offices. The products and solutions are applied in over 180 countries and regions worldwide. Meanwhile, the European Supply Center was set up to provide fast and high-quality end-to-end services for customers. Through cultivating an international marketing and management team and building localised marketing and services centers as well as opening Dahua brand image stores and Dahua element stores, the company will further enhance the brand coverage of Dahua Technology abroad and seize the opportunities in international markets.

"Customer-oriented and dedicated to success" corporate culture

"Customer-oriented and dedicated to success" is placed at the core of Dahua Technology’s corporate culture

"Customer-oriented and dedicated to success" is placed at the core of Dahua Technology’s corporate culture. The company, through customer-oriented business processes and organisation reconstruction, regards creation of customer value as the work guidance and performance evaluation criteria for every employee. Meanwhile, the company adheres to the value orientation of "dedicated to success" for continuous optimisation of the performance evaluation and compensation scheme and promotes diversified short-term and long-term incentive packages to award high-performance staff with sustainable salary and other encouragement. The company has a management team with strong sense of mission and global vision, and boasts of a strong talent team in the core technology fields of AI, big data, chips, etc.

Future strategy prospects

For the future, Dahua Technology will focus on the following aspects:

First, improve the capability to come up with comprehensive end-to-end solutions to solve business pain points for customers based on the HOC structure. Second, continuously increase investment in R&D and facilitate technological innovation in AI, cloud computing, big data, chip and other future core technologies. Third, continuously enrich the customer interface to enhance the ability to create values for customers.

Fourth, deepen the exploration of the domestic market while promote overseas business localisation and optimise revenue structure. Fifth, build systematic delivery and service capabilities oriented toward the global market. Sixth, take video capabilities as the core and increase the investment in innovative businesses to cultivate new growth potentials. Seventh, focus on the pain points in businesses and process to strengthen management improvement, enhancing operational efficiency, and increasing the ability to continuously create values for customers. Lastly, further improve the incentive system for talents and the development of corporate culture.

With a mission of “Enabling a Safer Society and Smarter Living”, Dahua Technology will continue to focus on “Innovation, Quality, and Service”, to serve partners and customers around the world.

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