Dahua Technology

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Zhejiang Dahua Technology Co., Ltd.
TypePublic company
SZSE: 002236
IndustryVideo surveillance Solutions
Founded2001
HeadquartersHangzhou, Zhejiang
Area served
Worldwide
ProductsSecurity Cameras, Network Cameras, HDCVI analog-to-HD Solutions, NVR/DVR, PTZ Cameras, Fisheye Cameras
RevenueIncrease $[4.06 billion (2020)][1]
Number of employees
+18,000 (2020)
SubsidiariesLorex
Chinese name
Simplified Chinese浙江大华技术股份有限公司
Traditional Chinese浙江大華科技股份有限公司
Websitedahuasecurity.com

Zhejiang Dahua Technology Co., Ltd. is a partially state-owned publicly traded company based in Binjiang District, Hangzhou,[2] which sells video surveillance products and services. It was founded and controlled by Fu Liquan (傅利泉).[3]

Dahua Technology has more than 18,000 employees[4] all over the world. Dahua solutions, products, and services are used in 180 countries and regions. It has 58 subsidiaries globally covering Asia, the Americas, Europe, Middle East, Oceania, Africa, etc.[5]

Shareholders[edit]

Dahua Technology is majority owned and fully controlled by Fu Liquan and his wife Chen Ailing.[6] As of 31 December 2020, Fu owned 34.18% shares as the largest shareholder, while Chen owned 2.38%.[7]

According to its 2020 annual financial report, Dahua Technology is also partially state-owned by Central Huijin Asset Management and China Galaxy Securities Co., Ltd. at 1.05% and 1.82 respectively.[7] Central Huijin Investment is a state-owned enterprise and wholly owned subsidiary of China Investment Corporation,[8] a sovereign wealth fund that reports to the State Council of the People's Republic of China.[9][10]

China Mobile acquired a 10.42% stake in Dahua in March 2021.[11]

Controversies[edit]

Cybersecurity vulnerabilities[edit]

In September 2016, the largest DDoS attack to date, on KrebsOnSecurity.com, was traced back to a botnet. According to internet provider Level 3 Communications, the most commonly infected devices in this botnet were Dahua and Dahua OEM cameras and DVRs.[12][13][14] Nearly one million Dahua devices were infected with the BASHLITE malware.[12][15][16] A vulnerability in most of Dahua's cameras allowed "anyone to take full control of the devices' underlying Linux operating system just by typing a random username with too many characters."[12] This was exploited, and malware installed on devices that allowed them to be used in "both DDoS attacks as well as for extortion campaigns using ransomware."[12]

In March 2017 a backdoor into many Dahua cameras and DVRs was discovered by security researchers working for a Fortune 500 company.[17] The vulnerability had been activated on cameras within the Fortune 500 company's network, and the data trafficked to China through the company's firewall.[18] Using a web browser, the vulnerability allowed unauthorised people to remotely download a device's database of usernames and passwords and subsequently gain access to it.[19][20] Dahua issued a firmware update to fix the vulnerability in 11 of its products.[21] Security researchers discovered that the updated firmware contained the same vulnerability but that the vulnerability had been relocated to a different part of the code. This was characterized by the security researchers as deliberate deception.[18]

In March 2021, the Federal Communications Commission declared that Dahua services and equipment "pose an unacceptable risk to U.S. national security.”[22]

Mass surveillance of ethnic minorities[edit]

Dahua has played a role in the mass surveillance of Uyghurs in Xinjiang.[23][24] In October 2019, the U.S. government placed Dahua on the Bureau of Industry and Security's Entity List for its role in surveillance of Uyghurs in Xinjiang and of other ethnic and religious minorities in China.[25][26] In November 2020, after security researchers identified facial identification software code with designations by ethnicity, Dahua removed the code in question from GitHub.[27] In February 2021, the Los Angeles Times published an investigation of Dahua's technology for the purpose of Uyghur surveillance.[28]

Security Industry Association expulsion[edit]

The Security Industry Association, a U.S.-based trade organization representing electronic and physical security solutions providers the United States, terminated Dahua Technology's membership on June 1, 2021, citing unnamed violations of its code of ethics.[29][30]

See also[edit]

References[edit]

  1. ^ http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900004625&stockCode=002236&announcementId=1209438619&announcementTime=2021-03-24
  2. ^ "Contact us". Zhejiang Dahua Technology Co., Ltd. Archived from the original on 2021-03-10. Retrieved 2021-03-15. Dahua Technology Co., Ltd. No.1199, Bin'an Road, Binjiang District, Hangzhou, China P.C:310053 - Chinese address Archived 2021-03-11 at the Wayback Machine: 杭州市滨江区滨安路1199号
  3. ^ Flannery, Russell (October 26, 2016). "Chinese Entrepreneur Who Sold His Home To Start A Business Adds To Billionaire Fortune". Forbes. Archived from the original on October 27, 2016. Retrieved 2020-05-24.
  4. ^ "Introduction - Dahua Technology". de.dahuasecurity.com. Archived from the original on 2018-02-24. Retrieved 2018-02-25.
  5. ^ "Dahua, GKUVISION, SLR Magic LTD, & DZO" (PDF). olympus-global.com. February 22, 2018.[dead link]
  6. ^ 大华股份:遭实控人减持7375万股. caixin (in Chinese). 12 May 2017. Archived from the original on 12 May 2017. Retrieved 24 May 2020.
  7. ^ a b "2019 Annual Report". Shenzhen Stock Exchange. April 2020. pp. 105–108. Archived from the original on May 24, 2020. Retrieved May 24, 2020.
  8. ^ Xiangming, Hou; Spring, Jake (2015-09-06). "Central Huijin Investment to issue 30 bln yuan bond on Friday". Reuters. Archived from the original on 2021-05-09. Retrieved 2020-05-24.
  9. ^ Ren, Daniel (March 3, 2017). "State-backed institutions outshine stock-focused mutual peers". South China Morning Post. Archived from the original on April 4, 2017. Retrieved May 24, 2020.
  10. ^ Ying, Moxy (November 17, 2018). "When Stocks Crash, China Turns to Its 'National Team'". Bloomberg News. Archived from the original on August 9, 2019. Retrieved May 24, 2020.(Subscription required.)
  11. ^ Rollet, Charles (2021-03-29). "State-Owned China Mobile Acquires 10% of Dahua". IPVM. Retrieved 2021-06-05.(Subscription required.)
  12. ^ a b c d Franceschi-Bicchierai, Lorenzo (29 September 2016). "How 1.5 Million Connected Cameras Were Hijacked to Make an Unprecedented Botnet". Vice. Archived from the original on 3 June 2019. Retrieved 2019-06-03.
  13. ^ Goodin, Dan. "Brace yourselves—source code powering potent IoT DDoSes just went public". ARS Technica. ARS Technica. Archived from the original on 3 October 2016. Retrieved 2 October 2016.
  14. ^ "Attack of Things!". Level 3 Blog. Level 3 Communications. Archived from the original on 3 October 2016. Retrieved 3 October 2016.
  15. ^ "BASHLITE malware turning millions of Linux Based IoT Devices into DDoS botnet". HackRead. 2016-09-02. Archived from the original on 3 October 2016. Retrieved 3 October 2016.
  16. ^ "BASHLITE Botnets Ensnare 1 Million IoT Devices". www.securityweek.com. Archived from the original on 2019-06-03. Retrieved 2019-06-03.
  17. ^ ipvideomarket (6 March 2017). "Dahua Backdoor Uncovered". IPVM. Archived from the original on 3 June 2019. Retrieved 2019-06-03.
  18. ^ a b J. FREEDBERG JR., SYDNEY. "Hacker Heaven: Huawei's Hidden Back Doors Found". breakingdefense.com. Breaking Defense. Archived from the original on 7 July 2019. Retrieved 7 July 2019.
  19. ^ "Dahua backdoor". Krebs on Security. Archived from the original on 2019-06-03. Retrieved 2019-06-03.
  20. ^ at 02:58, Richard Chirgwin 8 Mar 2017. "Dahua video kit left user credentials in plain sight". The Register. Archived from the original on 3 June 2019. Retrieved 2019-06-03.
  21. ^ "Dahua security camera owners urged to update firmware after vulnerability found". The State of Security. 8 March 2017. Archived from the original on 3 June 2019. Retrieved 2019-06-03.
  22. ^ Shepardson, David (2021-03-13). "Five Chinese companies pose threat to U.S. national security: FCC". Reuters. Archived from the original on 2021-03-12. Retrieved 2021-03-13.
  23. ^ Jennifer Chang, I-wei (2019-12-04). "Taiwan's "Warm Power": Sharing Lessons on Digital Governance". globaltaiwan.org. Global Taiwan Institute. Archived from the original on 14 December 2019. Retrieved 14 December 2019.
  24. ^ "Amazon buys heat-sensing cameras from blacklisted Chinese firm". The Guardian. Reuters. 2020-04-29. ISSN 0261-3077. Archived from the original on 2020-05-02. Retrieved 2020-05-03.
  25. ^ Shepardson, David (2019-10-07). "U.S. puts Hikvision, Chinese security bureaus on economic blacklist". Reuters. Archived from the original on 2019-10-07. Retrieved 2019-10-07.
  26. ^ Swanson, Ana; Mozur, Paul (2019-10-07). "U.S. Blacklists 28 Chinese Entities Over Abuses in Xinjiang". The New York Times. ISSN 0362-4331. Archived from the original on 2020-04-15. Retrieved 2020-05-24.(Subscription required.)
  27. ^ Borak, Masha (November 5, 2020). "Chinese surveillance giant expanding in the US attracts scrutiny over possible targeting of Uygurs". South China Morning Post. Archived from the original on November 6, 2020. Retrieved November 6, 2020.
  28. ^ Bhuiyan, Johana (February 9, 2021). "Major camera company can sort people by race, alert police when it spots Uighurs". Los Angeles Times. Archived from the original on February 9, 2021. Retrieved February 10, 2021.
  29. ^ "The Security Industry Association Expels Dahua". IPVM. June 8, 2021. Retrieved June 8, 2021.
  30. ^ "SIA Supports Ethical Uses of Security Technology". Security Industry Association. June 1, 2021. Retrieved June 8, 2021.

External links[edit]