Dahua Overseas Head Is Out

By: John Honovich, Published on Jul 27, 2018

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's ******** (*.*., *************) business, ** *** ** Michael ****, *** **** quietly *******, ****** ********** International ***** *** *********** changes ** *****'* **********.

**** ***** ****** ***, Chen *** ******** **** by **** **** *** President **********, ************ *****:

** **** ****, ** examine *** *********, ***** a ********* **** ***** to ****, *** ******* what ** ********* ** Dahua.

[***************]

Dahua *********

***** ***** *** *** issued *** ******** ************ about ****, **** *** respond ** ****'* *********, explaining:

*** ****** *** **** to ******** *** ******** structure. ******** **. **** made * ***** ************ to *** ******** ******** for **** *****, ***** Zhao *** *** **** appointed ** *** ****** of *** ******** ******** unit. **. **** *** ten ***** ** **********. It ** **** ****** for * ******** ** business ********** ****** *****.

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

*** *************, **** ******* close ** *** *******, is **** * ********** issues *** ******* **** change: ************* ***** ******** and *** *** ***** CEO ******** ******.

*****'* ************* ***** *** struggling. *****, **** ********* (*** *** ******** ***** own ********), ***** ** ****** increasing ************ ********* *** foreign ***********, **** **** and ******, ***** ******** pricing, *** ******* *** Chinese ************'* **** *********. Secondly, ****** ********, *****'* International ******** *** ************ struggled ** ********* ************* sound ********** (*.*., *** 3********* ***** *** *********** **** ******* **** year, *** **** ****** of ***** ** **** now ***, ** ****).

****** ****,***** ******* ** * new *** **** ****, **** ******. *** understanding ** *****'* **** for **** **-****** ********* is ** ***** ** the ********** ********* *** structures ** ******, * much ****** *** ****-*********** operation, ** *****. ******* him **** ****** ** Jason ****, *** *** leader ** *** ******** business ****.

Prospects *** *******

** ** *** **** enough ***** *** **-****** leaders *** ******* *****, so ** ** *** appropriate *** ** ** opine ** ***** *********. On *** ******** ****, Dahua's ******** ******** ********** team *** **** ** inept, **** ** ***** not **** **** ** be ******. *** ******* is, **** ******* ****** aimed ******* *** *** and ***** *********, *** ex-Huawei ***** ******* **** a *********** *********** ** conduct **** * **********.

Vote / ****

Comments (16)

Avatar

Mick Brown

07/27/18 12:44pm

Has anyone checked 

the amount of shares the management at dahua are selling

Undisclosed #1

In reply to Mick Brown | 07/27/18 01:26pm

No I have not

do you have any

more info?

Undisclosed #2

In reply to Undisclosed #1 | 07/27/18 02:21pm

No I have not

do you have any

more info?

Almost, but not quite a Haiku.

Undisclosed #1

07/27/18 01:25pm

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

This statement is so true it hurts.

Avatar

Mick Brown

In reply to Undisclosed #1 | 07/27/18 02:29pm

Who would work there 

no job security 

Undisclosed #4

In reply to Undisclosed #1 | 07/28/18 01:21am

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

John Honovich

IPVM | In reply to Undisclosed #4 | 07/28/18 01:23am

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

Undisclosed #1

In reply to Undisclosed #4 | 07/28/18 01:36am

They do demotion and replacing.

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

Undisclosed #3

IPVMU Certified | In reply to Undisclosed #1 | 07/28/18 02:02am

Rotating someone out of the company still counts, right?

John Honovich

IPVM | In reply to Undisclosed #3 | 07/28/18 10:25am

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).

Avatar

Sean Nelson

Nelly's Security
07/27/18 01:42pm

yet another dahooie kablooie

Undisclosed #3

IPVMU Certified | 07/27/18 11:25pm

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

No comment out of Harare?

John Honovich

IPVM | 07/30/18 11:13am

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.

Robert Shih

Independent
07/30/18 12:56pm

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.

Undisclosed #5

07/30/18 01:56pm

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 !

Gerald Spradlin

08/02/18 04:54pm

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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