Zhejiang Dahua Technology Co., Ltd.

Zhejiang Dahua Technology Co., Ltd. is a Chinese video-centric smart IoT company headquartered in Hangzhou, Zhejiang, founded in 2001. FY2025 revenue was RMB 32.744 billion with net profit of RMB 3.858 billion. The group employs roughly 23,500 people and sells in more than 180 countries, and is listed on the Shenzhen Stock Exchange under 002236.

Company Overview

Dahua is one of the two Chinese companies that reshaped global video-surveillance economics, and it is increasingly a transport-infrastructure supplier rather than a security-camera maker. FY2025 revenue reached RMB 32.744 billion, up 1.75%, while net profit attributable to shareholders climbed 32.77% to RMB 3.858 billion — profit growing far faster than sales. Recurring-quality metrics improved too: operating cash flow rose 44.19% to RMB 3.908 billion and total assets reached RMB 52.559 billion.

The revenue split is close to even between China and the rest of the world. Domestic sales were RMB 16.752 billion, or 51.16%, and overseas sales RMB 15.992 billion, or 48.84%, making Dahua far less dependent on its home market than most of its domestic peers. The core smart-IoT product and solution segment generated RMB 26.409 billion — 80.65% of revenue — of which software alone contributed RMB 1.833 billion, up 8.73%.

Growth Drivers

• Fusion sensing as the transport product. Dahua's radar-plus-vision integrated units have become the default roadside sensor in Chinese smart-highway and urban junction programmes, replacing separate radar and camera installations and reducing per-site cost.

• Manufacturing depth. Wholly owned subsidiary Dahua Zhilian operates high-precision SMT and EMS lines across three smart-manufacturing parks, giving the group production capacity for roughly 60 million traffic cameras, radars and terminals a year.

• Vehicle-side crossover. An electronics manufacturing and systems-assembly framework agreement with EV manufacturer Leapmotor moves Dahua Zhilian from roadside infrastructure into automotive electronics, a higher-value and longer-cycle market.

• Innovation portfolio. Machine vision and mobile robotics, thermal imaging, automotive electronics, security inspection, fire safety and alarms together generated RMB 5.670 billion, 17.32% of revenue, building a second growth curve independent of cameras.

Outlook & Risks

Dahua's principal constraint is geopolitical. US restrictions on Chinese video-surveillance equipment close off direct federal procurement and much state-level business in North America, pushing the group toward emerging markets where unit prices are lower. Input-cost inflation in memory and electronic components forced inventory to be built ahead of demand, and a share of Chinese smart-transport demand depends on municipal budgets whose payment cycles are long. Dahua nonetheless returned capital aggressively in FY2025, proposing a cash dividend of RMB 3.70 per ten shares on a 3.249-billion-share base while running a buyback-and-cancellation programme, and its EcoVadis silver rating supports access to European public tenders. VerityRank Score of 89/100.