Dahua Technology: The company's gross profit margin in the second quarter is expected to remain relatively stable.

On April 18th, Dahua Technology stated at a performance briefing that the gross profit margin in the first quarter was relatively high, mainly benefited from the company's focus on main channel products, optimization of business structure, and release of strategically reserved resources. The gross profit margin is expected to remain relatively stable in the second quarter. For the third and fourth quarters, the company needs to observe the impact of rising raw material prices, especially on the storage chip side, and consider market demand to determine the corresponding strategy. In addition, this round of supply chain price increases may be more beneficial for leading enterprises, as they can maintain relatively better market share with supply chain flexibility and bargaining power. Overall, the trend of gross profit margin needs to be observed comprehensively in conjunction with rising costs and customer demand, as well as the effects of optimizing the company's structure.