Dahua Overseas Head Is Out

JH
John Honovich
•Published Jul 27, 2018 11:27 AM

The long-time head of Dahua's overseas (i.e., International) business, VP and GM Michael Chen, has been quietly removed, amidst struggling International sales and fundamental changes to Dahua's leadership.

Just three months ago, Chen was standing side by side with the President of Zimbabwe, representing Dahua:

In this note, we examine the departure, share a statement from Dahua to IPVM, and analyze what is happening at Dahua.

Dahua *********

***** ***** *** *** ****** *** official ************ ***** ****, **** *** respond ** ****'* *********, **********:

*** ****** *** **** ** ******** the ******** *********. ******** **. **** made * ***** ************ ** *** overseas ******** *** **** *****, ***** Zhao *** *** **** ********* ** the ****** ** *** ******** ******** unit. **. **** *** *** ***** of **********. ** ** **** ****** for * ******** ** ******** ********** within *****.

Struggling ***** *** **-****** ********** *****

*** *************, **** ******* ***** ** the *******, ** **** * ********** issues *** ******* **** ******: ************* sales ******** *** *** *** ***** CEO ******** ******.

*****'* ************* ***** *** **********. *****, like ********* (*** *** ******** ***** *** ********), ***** ** ****** ********** ************ headwinds *** ******* ***********, **** **** and ******, ***** ******** *******, *** blunted *** ******* ************'* **** *********. Secondly, ****** ********, *****'* ************* ******** has ************ ********* ** ********* ************* sound ********** (*.*., *** ********** ***** *** *********** **** ******* **** ****, *** most ****** ** ***** ** **** now ***, ** ****).

****** ****,***** ******* ** * *** *** last ****, **** ******. *** ************* ** Dahua's **** *** **** **-****** ********* is ** ***** ** *** ********** practices *** ********** ** ******, * much ****** *** ****-*********** *********, ** Dahua. ******* *** **** ****** ** Jason ****, *** *** ****** ** the ******** ******** ****.

Prospects *** *******

** ** *** **** ****** ***** the **-****** ******* *** ******* *****, so ** ** *** *********** *** us ** ***** ** ***** *********. On *** ******** ****, *****'* ******** Overseas ********** **** *** **** ** inept, **** ** ***** *** **** much ** ** ******. *** ******* is, **** ******* ****** ***** ******* the *** *** ***** *********, *** ex-Huawei ***** ******* **** * *********** environment ** ******* **** * **********.

Vote / ****

Comments (16)
Avatar
Mick Brown
•Jul 27, 2018

Has anyone checked 

the amount of shares the management at dahua are selling

(1)
U
Undisclosed #1
•Jul 27, 2018
In reply to Mick Brown

No I have not

do you have any

more info?

(2)
UI
Undisclosed Integrator #2
•Jul 27, 2018
In reply to Undisclosed #1

No I have not

do you have any

more info?

Almost, but not quite a Haiku.

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U
Undisclosed #1
•Jul 27, 2018

It is very common for a rotation of business executives within Dahua.

This statement is so true it hurts.

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Avatar
Mick Brown
•Jul 27, 2018
In reply to Undisclosed #1

Who would work there 

no job security 

(4)
U
Undisclosed #4
•Jul 28, 2018
In reply to Undisclosed #1

This statement is actually completely untrue. Dahua does not do job rotation. They do demotion and replacing. 

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JH
John Honovich
•Jul 28, 2018
IPVM
In reply to Undisclosed #4

Lol, what a funny exchange, I am pretty positive #1 is joking and #4 knows more than #1...

U
Undisclosed #1
•Jul 28, 2018
In reply to Undisclosed #4

They do demotion and replacing.

Well, that is a kind of rotation. Rotating someone out of the company still counts, right?

(2)
U
Undisclosed #3
•Jul 28, 2018
IPVMU Certified
In reply to Undisclosed #1

Rotating someone out of the company still counts, right?

(4)
JH
John Honovich
•Jul 28, 2018
IPVM
In reply to Undisclosed #3

As a point of fact, my understanding is that Chen still has some role at Dahua, though what role is unclear.

Perhaps related, my understanding is that it is hard to terminate employees in China. PRC rules are quite restrictive on this (e.g. 1, 2, 3).

(2)
Avatar
Sean Nelson
•Jul 27, 2018
Nelly's Security

yet another dahooie kablooie

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U
Undisclosed #3
•Jul 27, 2018
IPVMU Certified

Just three months ago, Chen was standing side by side with the President of Zimbabwe...

No comment out of Harare?

JH
John Honovich
•Jul 30, 2018
IPVM

Update: Dahua's stock is down ~5% today:

The most likely cause is that their H1 2018 financials were released. Good news - reported revenue was up 31% (higher than Hikvision's ~27%) but net profit margins declined from 15.2% to 12.7% (much lower than Hikvision's ~20%).

Dahua only reported a 3 page summary of results with no breakdowns by region, product category, etc. If or when they do, we will update this post.

RS
Robert Shih
•Jul 30, 2018
Independent

Maybe we should start a topic as to who should be nominated for x position in Dahua? I know Honovich would love to give them some ideas. Lol.

(2)
U
Undisclosed #5
•Jul 30, 2018

To the average Dahua buyer is does not matter. Its cheap and that's all they care about.

Now for some of the people that work at Dahua they are leaving !

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GS
Gerald Spradlin
•Aug 02, 2018

I've had dinner with Michael Chen going back a decade or more on 10 or more occasions. Michael is WHY I became a Dahua distributor some ten years ago. Honest, accurate, articulate, and a very interesting guy. My humble opinion?
He was too honest to adhere to this new Dahua culture. I haven't sent Dahua a PO since the Mirai Botnet fiasco. I believe that's three years or so. 

I hope Michael accepts a position with ANY CCTV maker excluding Dahua and Hikvision as he brings a wide range of experience and expertise to ANY competitor of Dahua.

Hopefully within a few years both Dahua and Hikvision banned from ALL U.S. installations beyond just government projects.

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