When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

According to today's company announcement, in the first half of 2024, Dahua Technology achieved operating income of 14.867 billion yuan, a year-on-year increase of 1.59%; net profit of 1.81 billion yuan, a year-on-year decrease of 8.42%.

Looking at the quarters, both quarters saw a slight increase in revenue compared to the previous year, but net profit in the first quarter increased by 13.26% year-on-year, while net profit in the second quarter decreased by 15.68% year-on-year.

In terms of regions, in the first half of the year, Dahua Technology's overseas income increased by 9.08% year-on-year, accounting for 50.35% of revenue. Domestic income decreased by 5.01% year-on-year, accounting for 49.65% of revenue. Overseas revenue exceeded domestic revenue for the first time. In the same period last year, domestic revenue was higher than overseas revenue, with a revenue ratio of 53.11% to 46.89%.

In the domestic business sector, the TO G business showed a significant decline, with a revenue decrease of 15.07% year-on-year, while the TO B business increased by 1.11% year-on-year, and other businesses decreased by 6.47% year-on-year.

In terms of overseas markets, the company stated that it is currently deepening the construction of the distribution system, comprehensively promoting grid coverage, exploring the operation of third-level customers, accelerating the layout of new business channels, and maintaining sustained business growth. At the same time, the construction of overseas supply centers is accelerating, and overseas delivery capabilities are continuously improved.

Dahua Technology's main business is the research, development, production, and sales of smart IoT products, providing video-centric smart IoT solutions and operation services.

The financial report shows that the profitability of each product has declined across the board in the first half of the year, with the gross margin of smart IoT products and solutions decreasing by 1.28 percentage points compared to the same period last year, among which the gross margin of software business decreased by 1.44 percentage points; the gross margin of innovative business decreased by 0.12 percentage points. The gross margins of domestic and overseas businesses have both declined by 2.72 percentage points and 1.03 percentage points respectively compared to the same period last year.

However, the revenue of the innovative business in the first half of the year increased by 8.95% year-on-year, and the current revenue proportion of this business is 16.55%. In the field of innovation, Zhejiang Dahua Technology explores business in machine vision and mobile robots, smart life, thermal imaging, automotive electronics, smart security inspection, smart fire protection, storage media, etc.

In the first half of the year, Dahua's R&D investment increased by 4.78% year-on-year. In terms of R&D, the company has developed large-scale model samples, promoted replication and implementation, and continuously launched new products such as Zhiqiang, Luban, Honghu, Tian series, and Night King 2.0.

During the reporting period, due to the increase in payment of taxes and employee compensation compared to the same period last year, the net cash flow from operating activities of the company decreased by 293.07% year-on-year. In addition, the net cash flow from investing activities in the first half of the year decreased by 2080.04% year-on-year, mainly due to the purchase of large bank deposits.