Dahua Revenue Plunges, 3 Execs Resign Q1 2020

By Charles Rollet, Published on Apr 29, 2020

Dahua's sales dropped by 19.47% in the first quarter of 2020 amid the coronavirus pandemic, while three senior executives resigned, including its CFO.

IPVM Image

The drop is far worse than crosstown rival Hikvision, whose sales fell ~5%. Plus, the Dahua resignations add to significant turbulence, with the firm's CEO leaving only two months ago.

In this note, we examine this news and what it means for Dahua's long-term outlook, including:

  • Sales Plunge
  • Dahua Blames Pandemic, "Big Projects" In Q1 2019
  • Executives Resign for "Personal Reasons"
  • Dahua Response to Resignations: Execs Need to take Responsibility
  • Li Ke Was Supposed to Make Things "Clear"
  • Chinese Media Reaction: What Happened to Dahua?
  • Dahua Says Overseas Sales Still Growing
  • Dahua's Mysterious Rise in Profits
  • Thermal Camera Sales Surge But Still "Niche"
  • Thermal Cameras Dahua's Best Hope?

Sales ****** **%

** ***** **** **********, ******** ***** **, Dahua **** *** ** revenue **** **.**% ** about $*** ******* ****-**-****, a ******** **** (******* below *** ** ******* yuan):

IPVM Image

Dahua ****** ********, "*** ********" ** ** ****

** *** ******** ****, Dahua ********** *** **** drop ****** ** *** pandemic:

***** *** ***** *******, the *******'* ******** *** been ******** ** * certain ****** *** ** the *********** ******** *** the ******** ** *** macro *******. *** ****** of *** ******** ******** orders *** *********, ******* execution *** ******** **** also **** *******.

*******, ***** ***** **** the ***** **** *** also *** ** ******* "big ********" ***** ******* as ******* *** ** 2019 - ******* *****,"*** ****** ** *** revenue ****** ** **** or **** *** ****" as *** ***********:

*******, ***** **** ****big ******** **** *** ****** ******* ********* ** *** same ****** **** ****so *** **** ***** [** ****] *** ****. Therefore there's been a [big] decline on the revenue part. But if ** **** *** *** ******* *** ******* ****** ** ** ****, *** ****** ** *** ******* ****** ** **** ** **** *** **** with what was disclosed by two other competitors. [emphasis added]

***** *** *** ******* what ***** ******** ***** were *** **** ***** not **** **** ** prior ***** ***********.**** ** ***** ** that *****'* ** ***** ****** has ************ **** ****** than *** *** **** year, ** ***** *** certainly ****** ** ******* that *** ****:

Executives ****** *** "******** *******"

***** **** ************* ***** **** ********** had ******** ***** ******** "for ******** *******": *** Meizhong, *** ****, *** Zhang ***. *** ******** was *** ****'* *** as ****. * ** the * *** *** but *** **** ******* with ***** ** ** of ******* **********.

Dahua ******** ** ************: ***** **** ** **** **************

** *** ******** ****, Dahua **** ***** ***** executives, ********* *** *** CFO, *** **** ****** from *** ********* **** the **** *** ***** and ****** ** **** "responsibility":

***** *** ********** ******: frankly ********, *** ****** management ****** **** **** this ****haven't ****** **** ******** ** *** *******'* **** ******** **** **** *** **** *** *****. We want to use this chance to sort things out clearly. This is also in line with our management principle that was brought up this year, which is making **** *** ************** ** ***** for every matter and every matter falls on the shoulder of specific personnel. [emphasis added]

***** ******* *** *** CFO ** ******* ** a ****** **** - Qiaofen ** *** ** of *****'* ******* ********** and *** **** **** the ******* ***** ****:

*** *** *** *** the ****** ** *** new ******* ********. *** had **** *** ******* manger ** *** ******* department ****** ** ** practice ***** ****'* **** too **** ****** ******** to *** ****.

Li ** *** ******** ** **** ****** "*****"

***** **** *** ************ were **** ** * move "** **** ****** out *******" *** **** "clear" **** **** ****** had ** ****** ***** "responsibility".

********** *******, **** ** the **** ****** **** Dahua's ****** *** ** Ke *** ******* **; Ke ** * ****** executive ** ******, ***** is ***** *** *************/*********** ********* *******.*** **** ** ***** three ********** *** ** more ******* ** * historically ***** ********* ****** and *** **** *** someone ** **** *** fall.

*** ***** *** **** left *** ** * lucrative***** ********* ****** ***** (********* the **** *** ** their ************) ***** ****** from $*.* ******* ** $5.4 ******* ***** ** stock. ***** ** *********, the ***** ***** *** relatively *** ******** ($***,***-$***,***) and $*.* ******* ** $3.4 ******* ** ***** stock ****.

Chinese ***** ********: **** ******** ** *****?

*** ************ **** ******* by *** ***** **** some ********, ******** ******* much *********** ** *** they ********.

**** **** ******* ******** asked,"**** ******** ** *****?"

IPVM Image

*** **** ******* ************** ***** *****'* ******:

IPVM Image

Dahua **** ******** ***** ***** *******

******* ******* **** ** Dahua's ** **** ****** is *** ***** **** overseas ******* ****, ******* the ******* ****-**% **** in ***** *****:

*** ********, *** ********* covid-19 ******** *** **** affected **** ** *** business **********. *** *** systematic ************* ** *** overseas ******* **** *** past ******* ***** *** gradually ***** *******. *** overseas ****** *** ********** growth ** **

***** *** *** ********* its ***** ******* ***** and ******** *** **. In*** **** ******, ***** **** **.**% of *** ***** **** overseas, ************* ****** **** Hikvision's ~**% ******** *****:

IPVM Image

Dahua's ******* **** ** *******

*********, **** * ******* reports * ********** **% drop ** *****, ******* go **** ** ****, since ** ** ****** to *** ***** ** quick ** ******* *****. However, ***** ******** * 0.5% ***************** ** ****. ** its ******** ****, ** explained ** ********* **** this *** **** ****** to ***** ********* ***** it ******** ****** ** "continuous ************ ** ******* structure":

*** ********* **** ********* by **.**% ******** ** the **** ****** **** year, ****** ** *) the *******'* ******** ********** over **** ******* **** continuous ************ ** ******* structure *** *) *** decrease ** ******* ** the **** ******.

**** *********** ** ***** and ********* ** ********* with ****** ********* ******** but ***** ******* ** further *******.

***** **** ** *******

** *** ******** ****, Dahua **** "*** ******* will *** *** *** staff":

the ******* **** *** *** *** *****. The cost control will strengthen some local operations and improve some online operations and delivery capabilities. Overall we will do some flexible budget management, strengthen investment accuracy and effectiveness, reduce unnecessary losses, optimize our fee structure, including investing in some key areas. [emphasis added]

**** ** ******** **** negative ********** **** *********, which**** ** *****"******* ****** ** ***** size".

Thermal ****** ***** *****, *** ***** "*****"

** *** ****, ***** said ** *** ********* from ******** ****** ********, *** **** **** was ***** * "********** niche" *******:

******** ******* ******* ******** have *********** ** ** and **,they *** ***** ********** ***** ******** ******** ** *** ******* ’* ******* ******* ******. They can really contribute to the company from the perspective of the year. [But] the performance may not be very large, more reflects the company's rapid response ability as a platform company [emphasis added]

Thermal ***** ******* *****'* **** ****?

************, ***** **** ** had ******** "******* *** hundred ******* ** ***** [of ******* **** *****]" of ***** ** ***** cameras ** **, ****** domestic. ** *****, **** expression ****** ** ***** 600m ($***), ** **** means ***** ******* **** up **% ** *** Q1 ***** ** *.* billion ******* **** ($****), a ************ ********** ***** will ****** ** ***** surge ********:

** *** ***** *******, there **** ******** ** millions ** ******** ******* imaging *****. ** *** first *******, ** *** mainly *** ******** ******. It ** ******** *** ****** ******* ** thermal ******* ****** ** dominated ********

******, ******* ******* *** Dahua's **** ****, **** the **** ************ ********* them ****** *** ***** (unlike *********'* **** ******** approach); ** ******* **** reported,****** *** ************ *,*** ***** ******* cameras ** * **** $10 ******* ****.

Outlook ********** *** ****** ** ***** *******

*****'* **** **% ***** drop ** *** ****** than *** ***** **********'* and ** ************* *** result, ******* *****'* ************. The ********* ** ****** staff, ********* *****'* ***, also ***** ********* ********** at *** **** ** an ******* ********* ************* time.

*******, *** ****'* ********** move **** ***** ******* is ****** *** *** should ******* * *********** buffer, ************ ** *** pandemic ******* ****** *** globe *** *****'* ******** branches ** *******.

Comments (8)

*** **** ** ********* in *** ******. ** also **** **** **** posted ** ****:"****** ***** ** ******* Firm [*****] ** *.*. Blacklist ** **** ******* Camera *****" ******* *******

**... ****** ** ******* Dahua, *** ***** ** on *** “****** ****” and *** ** *** restrictions ******* ** ****... What ***** **** **** for ****** ******* ** US ********** ***********, ***?

***, ******* ******* **** up. ** ******* ** how *** ** ********** implements (** ******) *** blacklisting ******.

*** ***** ****** ** that ***** ******* *** likely (*********) ** ** trashed ** **** ***** regardless.

****** **** **** **** to *** ***********.

****** **** **** **** to *** ***********

******, *** '*********' ** is ********* ** ** the *** ***** ***** of ****** ********* *** no ****** **** ** the **********. ** **** case, ****** ***** *** need *********** ** *** ** government, ****** ***** ****** have ** *** ***** to ** ****** **** selling ** *** ** government. **** ** ********* to ** **** ****** this ******, ***:***** ***** ******** ********* of *****, ********* *****,** *** ******** "*** No ****** ** ********" With *********** ***** *****, Hikvision, ******

*** **** ****** ** Covid19 ** *** ******** will ** ******* ** Q3 ****. * *** of ******* ** ** were *** ******** ** the ***** ***** *** contracts *** ********** *** signed **** **** *** especially *** *** ********. In ** ******* *** number ***** ******* **** made ***** ************ ** buy ***** ** ***** in ** ****.

***** ****** ******** ******* to *** ********* **** calling ** ******:

IPVM Image

**** *** ********* *** lead ** *****'* *** financial ******* **** ****.

Read this IPVM report for free.

This article is part of IPVM's 6,592 reports, 889 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

Uniview H1 2020 Financials Examined on Sep 08, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
2020 Mid Year Video Surveillance Industry Guide on Jul 27, 2020
The first half of 2020 has been shocking, for the world generally, and for...
ADT Slides Back, Disappointing Results, Poor Commercial Performance on Aug 06, 2020
While ADT had an incredible start to the week, driven by the Google...
Dahua Revenue Grows But Profits Down, Cause Unclear on Oct 20, 2020
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant...
Salesforce Drops Dahua and Hikvision on Aug 12, 2020
Salesforce has dropped Dahua and Hikvision as customers, forcing the two mega...
Chile Cancels 1,000 Camera Hikvision Project on Oct 12, 2020
Six months ago, Chile awarded a 1,000-camera project using Hikvision. The...
Costar Technologies / Arecont H1 2020 Financials Examined on Sep 16, 2020
Costar's financial results have been hit by the coronavirus with the company...
Dahua Profits Surge Due To Fever Camera Sales on Aug 25, 2020
While Dahua's overall revenue is down, driven by challenges within China, the...
JCI / Tyco Drops Dahua on Sep 03, 2020
Johnson Controls (JCI) / Tyco Security has completely dropped Dahua OEMs from...
NetPosa's Terrible Situation Worsens on May 19, 2020
NetPosa is fighting for its existence as the situation worsens for what was...
Remove Dahua and Hikvision Equipment "Immediately" Or Else Banned From US Government Contracts on Jul 10, 2020
The US government has directed contractors to remove covered equipment, such...
Worst Over But Integrators Still Dealing With Coronavirus Problems (June Statistics) on Jun 30, 2020
While numbers of integrators very impacted by Coronavirus continue to drop,...
Axis Compares Fever Camera Sellers to 9/11 on Sep 18, 2020
Axis Communications, the West's largest surveillance camera manufacturer, has...
Amazon, Microsoft and IBM Abandoning Face Recognition Is An "Irresponsible PR Stunt" Says AnyVision on Jul 17, 2020
In the wake of national protests against US police abuses, big tech firms...
Hikvision Global Revenue Falls, Hit By Coronavirus on Apr 27, 2020
Hikvision's global revenue fell in the first quarter of 2020 due to the...

Recent Reports

ISC Brasil Digital Experience 2020 Report on Oct 23, 2020
ISC Brasil 2020 rebranded itself to ISC Digital Experience and, like its...
Top Video Surveillance Service Call Problems 2020 on Oct 23, 2020
3 primary and 4 secondary issues stood out as causing the most problems when...
GDPR Impact On Temperature / Fever Screening Explained on Oct 22, 2020
What impact does GDPR have on temperature screening? Do you risk a GDPR fine...
Security And Safety Things (S&ST) Tested on Oct 22, 2020
S&ST, a Bosch spinout, is spending tens of millions of dollars aiming to...
Nokia Fever Screening Claims To "Advance Fight Against COVID-19" on Oct 22, 2020
First IBM, then briefly Clorox, and now Nokia becomes the latest Fortune 500...
Deceptive Meridian Temperature Tablets Endanger Public Safety on Oct 21, 2020
IPVM's testing of and investigation into Meridian Kiosk's temperature...
Honeywell 30 Series and Vivotek NVRs Tested on Oct 21, 2020
The NDAA ban has driven many users to look for low-cost NVRs not made by...
Ubiquiti Access Control Tested on Oct 21, 2020
Ubiquiti has become one of the most widely used wireless and switch providers...
Avigilon Aggressive Trade-In Program Takes Aim At Competitors on Oct 20, 2020
Avigilon has launched one of the most aggressive trade-in programs the video...
Mexico Video Surveillance Market Overview 2020 on Oct 20, 2020
Despite being neighbors, there are key differences between the U.S. and...
Dahua Revenue Grows But Profits Down, Cause Unclear on Oct 20, 2020
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant...
Illegal Hikvision Fever Screening Touted In Australia, Government Investigating, Temperature References Deleted on Oct 20, 2020
The Australian government told IPVM that they are investigating a Hikvision...
Panasonic Presents i-PRO Cameras and Video Analytics on Oct 19, 2020
Panasonic i-PRO presented its X-Series cameras and AI video analytics at the...
Augmented Reality (AR) Cameras From Hikvision and Dahua Examined on Oct 19, 2020
Hikvision, Dahua, and other China companies are marketing augmented reality...
18 TB Video Surveillance Drives (WD and Seagate) on Oct 19, 2020
Both Seagate and Western Digital recently announced 18TB hard drives...