Investor Relations
09/04
2018

DC Holdings Announces FY2018 Interim Results - Revenue and profit growth with multiple breakthroughs in Big Data-enabled applications

08/30
2016

DC Holdings Announces FY2016 Interim Results - Drive Strategic Transformation towards Internet Services,Ride Out the Storm Through Reform and Innovation

04/21
2016

Digital China Holdings Partners with China Chengxin Credit Management to Create "Credit City"

03/29
2016

Digital China Holdings Announces FY2015 Annual Results, Implements Extensive Strategy for Internet Service, Sm@rt City Service Boosts Development of New Businesses

12/22
2015

Digital China Sm@rt City Launches in Beijing Creates a Unified Public Services Platform in Beijing

12/08
2015

Digital China Implements "Internet + Agriculture" Strategy with Wide Recognition

11/24
2015

Digital China Announces 3Q'2015 Results, Disposal of Traditional Distribution Business on Track for Overall Strategic Transformation toward Internet+

11/20
2015

Digital China Signs Strategic Cooperation Agreement with Henan Provincial Government to Accelerate Integration of Internet+

11/12
2015

Press Release

Press Release


(12 Nov 2015, Hong Kong) Resumption announcement published by a subsidiary of Digital China Holdings Limited, 神州数码信息服务股份有限公司 (Digital China Information Service Company Ltd.*), regarding adjustment to the non-public placing of new shares

For details, please refer to the announcement published on the website of The Shenzhen Stock Exchange (http://www.szse.cn/main/disclosure) and the website of cninfo (http://www.cninfo.com.cn).

11/09
2015

Press Release

Press Release - Suspension Announcement regarding Adjustment to the Non-public Placing of New Shares


(9 Nov 2015, Hong Kong) Suspension announcement published by a subsidiary of Digital China Holdings Limited, 神州数码信息服务股份有限公司(Digital China Information Service Company Ltd.*) regarding adjustment to the non-public placing of new shares.

For details, please refer to the announcement published on the website of The Shenzhen Stock Exchange (http://www.szse.cn/main/disclosure) and the website of cninfo (http://www.cninfo.com.cn).

11/09
2015

Press Release - Disposal of IT Products Distribution Business

Press Release - Disposal of IT Products Distribution Business


Announcement published by  Shenzhen Shenxin Taifeng Group Co., Ltd. 深圳市深信泰丰(集团)股份有限公司 (purchaser to the share transfer agreement)  regarding the anti-trust review on concentration of business operators, conducted by The Ministry of Commerce of the PRC has been passed

For details, please refer to the announcement published on the website of The Shenzhen Stock Exchange (http://disclosure.szse.cn/finalpage/2015-11-07/1201757358.PDF) and the website of cninfo (http://www.cninfo.com.cn).

10/29
2015

Press Release - Disposal of IT Products Distribution Business

Press  Release - Disposal  of  IT  Products  Distribution Business


(29, Oct 2015) Reply to feedback on the issue of new shares, payment of cash consideration for the acquisition of assets, fund raising and related party  transaction of Shenzhen Shenxin Taifeng Group Co., Ltd. 深圳市深信泰丰(集团)股份有限公司, purchaser to the share transfer agreement

For details, please refer to the announcement published on the website of The Shenzhen Stock Exchange (http://disclosure.szse.cn/finalpage/2015-10- 30/1201740969.PDF) and the website of cninfo (http://www.cninfo.com.cn).

10/22
2015

Zhongguancun Innovative Entrepreneurship Service Platform Launched, Digital China Establishes ''Online Meeting Room'' Platform

10/20
2015

Jingmen Integrated Citizens Service Platform Launched, Digital China Helps the City to Boost the Construction of Sm@rt City

09/30
2015

Launching Changshu Public Information Service Platform Digital China Establishes Plan to Sm@rt City Construction in County-Level City

09/17
2015

Launching Longyan Public Services Web Digital China Helps City Upgrade with “Internet+”

09/15
2015

Digital China’s “In Chengdu” Is Available on Alipay

09/14
2015

Digital China Creates Milestone of Jewelry Manufacturing

09/11
2015

Digital China Signed Framework Agreement with HKUST to Build Sm@rt City Research Institute

08/25
2015

Digital China Announces FY2015 Interim Results - Full potential for Internet Service and Reap the full benefits of Strategic Transformation

07/31
2015

Launching Benxi Citizen Web on WeChat, Digital China Accelerates the Construction of Sm@rt City

07/13
2015

Digital China Listed on "Fortune China 500" for 6 Consecutive Years Top 10 in Technology Industry

07/08
2015

Press Release

(8 July 2015, Hong Kong) Digital China Holdings Limited (the “Company”, Stock Code: 00861.HK; 910861.TW) received a notice from its subsidiary, 神州數碼信息服務股份有限公司 (Digital China Information Service Company Ltd.*) (“DCITS”), that trading in its shares on the Shenzhen Stock Exchange has been suspended from Wednesday, 8 July 2015. DCITS proposes to acquire equity interests in a PRC company who operates in the IT industry. Given the uncertainties associated with the event, trading in DCITS’s shares was suspended to avoid unusual movement of its share price. DCITS anticipates that trading in its shares will be resumed after disclosure of the event is made no later than 10 trading days after the suspension. Based on the information available to the Company, the event will not have any material impact on the Company.

07/08
2015

Digital China Signed Sm@rt City Strategic Cooperation Agreement with Manchester

07/08
2015

DCITS Successfully Builds the First Batch of Hebei Rural Property Transfer Trading Platform

07/07
2015

DCITS Signed Cooperation Agreement with the State Information Center to Develop Comprehensive Strategic Cooperation

07/03
2015

Digital China Chairman Guo Wei Attended 2015 EU-China Urbanisaton Partnership Forum Following Chinese Premier Li Keqiang

06/25
2015

Digital China Ranked No. 1 in “TOP 50 Sm@rt City Service Providers”List

06/24
2015

Digital China Joins Hands with Ant Financial in Sm@rt City Strategies

06/23
2015

An Integrated Citizen Service Platform Launched in Chongqing

06/15
2015

Digital China strategically invests in Cuncunle, Deploying the Sm@rt Rural Strategies

05/29
2015

Digital China Forms Strategic Cooperation with Tencent to Build Sm@rt City in Benxi

04/27
2015

Digital China Announces FY2015 First Quarter Financial Results - Seizing the “Internet Plus” Opportunity to Expedite the Construction of Sm@rt City

Digital China Announces FY2015 First Quarter Financial Results
Seizing the “Internet Plus” Opportunity to Expedite the Construction of Sm@rt City


(27 April, 2015, Hong Kong) Digital China (the “Group”; Stock Code: 00861.HK; 910861.TW), the largest integrated IT services provider in China, today announced its financial results for the first quarter of fiscal year 2015 ended on 31 March, 2015 (the “Period”).

During the reporting period, China GDP growth slowed down and dropped to 7%. Despite the pressure of the economy slowdown, the Digital China management continued to drive its key tasks and various measures relating to its transformation in a prudent manner and maintained stability in revenue and profit. During the first quarter of 2015, the Company reported revenue of approximately HK$16.90 billion, with a mild increase of 1.77 % compared to the same period of last year. Overall gross profit margin was 7.18%, with a year-on-year slight increase of 72 basis points.  Profit attributable to shareholders amounted to approximately HK$171 million, representing a decrease of 13.80% compared to the corresponding period of last year.  Excluding the effect of exchange rate changes on the Company’s profit, profit attributable to shareholders for the first quarter of 2015 increased by 6.23%.

Seizing the opportunities presented by Internet+ and proactively responding to the Nation’s call for smart city construction, Digital China expedited the promotion of “one center and three platforms” throughout the nation and accelerated contracting and implementation of corresponding projects. During the first quarter of 2015, the Group entered into agreements in respect of Sm@rt City operations with Yibin, Longyan and Tianjin. The Group will further improve the construction and management of the integrated citizen service platform, integrated enterprise service platform and integrated city administration platform based on experience generated from operations, so as to lay a solid foundation to commence the platform operation in 100 cities in three years. Currently Digital China’s “one centre and three platforms” Sm@art City business has entered into cooperation with 16 cities, with platforms launched in 6 cities, including the Chengdu platform that was signed up in the first quarter of this financial year.

Driven by the trend of “Internet+”, Digital China does not only seek its own transformation into an Internet-based corporation, but also get engaged in active cooperation with operators of existing large Internet platforms to explore models for close strategic cooperation, bringing together Digital China’s technology in Sm@rt City platform and its rich experience through involvements in numerous Sm@rt City solutions over the years and well-developed user bases and efficient promotion provided by Internet platform operators to forge an Internet-based model for the Sm@rt City operation. Meanwhile, the Group will gradually develop Internet finance business to unleash the value embedded in our Sm@rt City Internet platforms.

DCITS: Persistent Drive of Business Upgrade and Optimization, Fueling Strong Growth in New Business

During the first quarter, the Company’s Service Business reported revenue of HK$1.41 billion, with a 16.45% decline year-over-year. The Company persisted in strategic upgrade and business transformation. Within the Service Business, technical services, agricultural informatization, industry application software and equipment under owned brands reported revenue of HK$643 million, representing a 17.19% increase year-over-year. The Group continued to optimize its business mix and quality. During the first quarter of this financial year, the Company’s gross profit margin grew by 531 basis points to 20.48% as compared with the corresponding period of last financial year, underpinning a notable improvement in profitability.

The Group’s technical service business reported revenue of HK$439 million, for the first quarter of this financial year, representing a 17.96% growth year-over-year. New customers signed up including Pudong Development Bank, Southwest Securities and China Merchants Securities.

The agricultural informatization business reported a fourfold growth in signed contract compared with the corresponding period of 2014 as it seized market opportunities to expand its market coverage at a faster pace and made a major effort to realize business services for the registration and transfer of agricultural land use rights. In addition to Hebei Province, full-scale cooperation was sought in other regions of the country.

Digital China Group: Achieving Overall Stability by Focusing on both Corporate IT and Consumer Electronics Sectors

Digital China achieved a rapid growth and overall stability by persistently adopting market share management and business transformation, and seizing opportunities in sub-sectors. During the first quarter of the fiscal year 2015, revenue was HK$14.41 billion, with a slight decline of 0.3% year-over-year. Overall gross profit margin was approximately 5.43%, a year-on-year increase of 53 basis points. The Consumer Business (formerly the Distribution Business), focused on the development of the omni-channel, and was affected by the lackluster demand of the offline distribution market. As a result, revenue of this segment dropped to HK$9.09 billion, an approximate 5.21% decrease year-on-year.  Revenue of the international brand operations of the Corporate Business (formerly Systems Business) increased 221% year-over-year, resulting from the enhanced cooperation with major domestic brands, as well as the rapid expansion of online distribution business.

Corporate Business (formerly System Business) optimized its business planning and continued to drive its business transformation based on its “owned brands” and “Cloud Computing” strategy. Against the backdrop of macro-economic slowdown and the government policy of “autonomy and controllability,” the Group outperformed the market by sticking to its market share management and international business. As a result, the revenue decline for the international brand operations of the Corporate Business (formerly Systems Business) has been narrowed. Revenue of Corporate Business increased 9.35% to HK$5.33 billion and overall gross profit margin decreased by 63 basis points to 8.04% resulting from the low gross profit margin of the domestic brand.

Supply Chain Management Strategy Unit: E-Commerce Business Continued to Grow Rapidly, Business Model Further Optimized, and Business Structure Moved towards a Stable Mix

The Supply Chain Business was engaged in vigorous market development, reporting revenue for the first quarter of 2015 approximately HK$1 billion, with a year-on-year increase of 151.32% as compared with the corresponding period of last financial year. The overall gross profit margin of the Supply Chain Business for the first quarter was 8.40%, representing a year-on-year decrease of 651 basis points, reflecting a substantial increase in the percentage share of the E-Commerce business which commanded a lower gross profit margin. Three major segments of the Supply Chain Business, namely e-Commerce Supply Chain, Logistics and Maintenance, reported year-on-year revenue growth of 283.67%, 21.83% and 16.52% respectively.

New Business based on “Internet+”: speeding up developing the Internet-based Sm@rt City and Internet Finance BusinessesSm@rt City Service Group: Seizing the “Internet plus” Opportunities, Expediting the Implementation of Sm@rt City Operations.

For Sm@rt City Businesses, in 2015, the Group continued to further promote the implementation of the Sm@rt, City by following four product-oriented principal themes of “My Government, My Life, My Payments and My Communications”.

Regarding the Sm@rt City project development, the Group entered into a Sm@rt City strategic cooperation agreement with Zhuhai Municipal Government, as well as a number of operating service contracts with a number of cities. The Sm@rt City revenue model has been further elucidated, Moreover, the Group successfully acquired equity interests in Fuzhou Rongcheng Universal Card Ltd. (Fu Zhou Rongcheng) which had issued 2 million cards covering the entire transportation system of Fuzhou and certain points of its commercial retail network. The cooperation with Fuzhou Rongcheng represented an important step for the Group to explore the online and offline integration of the Sm@rt City model.

For Internet Finance Businesses, the Financial Services business continued to make strong efforts in the development of the financial institution business, while product development at the sub-segments of financial leasing, factoring and micro-credit loans were also enhanced to provide customers with a greater variety of financial products.

The financial leasing business has broadened its scope of business after obtaining the qualifications for operating lease-back businesses. It also actively explored the application of the finance lease model in PPP projects to generate synergies with the Sm@rt City Service Group by providing innovative financial services to the Sm@rt City operations of local governments.

Digital China Hui Cong Micro-Credit Co., Ltd., the micro-credit loan business formed by the Group in joint venture with HC International, broadened its product portfolio with the development of “loans for trading” (“交易貸”) and etc. While exercising stringent control over credit risks, more diversified financing services were provided to members of hc360.com and customers of Digital China. The loan balance as at the end of March 2015 exceeded RMB800 million.

Management Outlook: Opportunities and Challenges Co-exists in the Future, Continuing to Deepen management and Control

During the first quarter of 2015, the Group steadily advanced its business tasks and maintained stability in its revenue against the backdrop of the macro-economic downside and the ongoing impact of “Internet+” on the distribution and other business. Looking to the future, Mr. Yang Lin, CEO of Digital China, commented, “As we are facing new opportunities and challenges, we will carry on the steadfast implementation of our Sm@rt City strategy and vigorously develop new business models on the Internet platform, complemented by our strong efforts to develop high-margin and fast-growing new businesses such as IT technical services, agricultural informatization, supply chain and the financial institution business. Meanwhile, we will continue to strengthen our management and control with strong determination. Following the implementation of organizational and financial management, we will continue to optimize our corporate structure and formulate detailed provisions for the resources allocation to ensure the thorough implementation of the reorganization. The management will also continue to realize synergies based on the core Sm@rt City strategy, and create higher returns for our shareholders.”

04/24
2015

An Integrated Citizen Service Platform Launched in Chengdu

An Integrated Citizen Service Platform Launched in Chengdu


(24 April 2015, Hong Kong) Digital China (Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that on 23 April 2015, the grand launching ceremony for the Integrated Citizen Service Platform “In Chengdu” was held in Chengdu Century City International Convention Center. The world’s first Sm@rt City platform serving 10 million people officially went online. Mr. GOU Zhengli, Chengdu’s Deputy Mayor, Mr. GUO Wei, the Chairman of the Board of Directors of Digital China, Mr. FANG Chunhao, Deputy Director of the Sichuan Provincial Economy and Information Commission, Mr. SHI Yaohua, Director of Chengdu Economy and Information Commission, and Mr. XIE Yun, Digital China’s Chief Scientist jointly launched the service platform.

Accessing 121 convenient services initially, "In Chengdu" has three user terminals: PC, mobile phone application, and digital television; and provides four services: Family Planning, Service for Senior Citizens, Home Purchasing, and Entrepreneurship, all of the services covering online processing and enquiry. Ms. YOU Ya, the director of Sm@rt City in the southwestern area, said, “’In Chengdu’ provides location-based services through search engines. Meanwhile, it builds the one-stop service platform by integrating and optimizing the decentralized government services used by previous customers.

Recently Chengdu has been vigorously promoting the construction of Sm@rt City. Its 12th Five-Year Plan has set a definite goal for the setup and improvement of the city’s public information service system. The plan also proposes that in 2015, Chengdu will continuously deepen its digitalization in economy, politics, culture and society, realizing its initial goals in Sm@rt City.

During the launching ceremony, Mr. Guo said, "Chengdu is the first city with a population of ten million to combine the "Internet +" and public services in World. Digital China is delighted to work with the Chengdu Municipal Government and the community to strive to keep Chengdu’s Sm@rt City advantage".

04/24
2015

Digital China Strategically Cooperates with Shenyang Machine Launching the Industry 4.0 Initiative

03/30
2015

Digital China Announces FY2014 Annual Results - Optimized Organizational Structure, Accelerated the Implementation of Sm@rt City Strategy

01/29
2015

Digital China Forms Strategic Cooperation with Aliyun in Sm@rt City and Cloud Computing

Digital China Forms Strategic Cooperation with Aliyun in Sm@rt City and Cloud Computing


(29 January 2015, Hong Kong) Digital China (Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that on 29 January, the Group has signed a strategic cooperation agreement with Alibaba Cloud Computing (Aliyun) to work together on Sm@rt City and cloud services initiatives. To kick-off the collaboration, both parties will focus on providing cloud computing services to government agencies and corporate, sharing resources and developing markets together.

As a leader in the field of Sm@rt City in China, Digital China seeks to leverage its strengths with Aliyun’s leading position in cloud technology to serve customers. Under the terms of the agreement, Digital China will collaborate with Aliyun in research and development, and provide services on the basis of Software as a Service (SaaS) and Platform as a Service (PaaS). Both sides will also cooperate in Big Data scope and provide customers with next-generation data driven applications. In Sm@rt City area, Aliyun will customize its cloud platform based on Digital China’s specifications. Furthermore, both firms will share market resources and cooperate in marketing.

In March 2014, China’s State Council issued the “National Plan on New Urbanization (Year 2014-2020)”, focusing on how to construct China’s new-type cities and advance the development of smart cities. In August, eight state ministries jointly issued a document entitled “Guidance on Promoting Healthy Development of Smart Cities”. These high-level government endorsements of smart cities development marked a turning point in 2014 by when Sm@rt City construction in China will proceed to a stage of large-scale implementation.

Since 2010, Digital China has engaged in Sm@rt City business deployment in over 70 cities. To date, the Group has signed Sm@rt City strategic cooperation agreements with 33 provinces and cities across the country. The Public Information Service Platforms that were launched in Fuzhou, Foshan, Zhangjiagang, Benxi, Weihai and the others have become a model for Sm@rt Cities development.

Aliyun has signed agreements with 12 provinces and cities in a year’s time, spanning nearly half of China by virtue of its technology accumulation. By introducing the next-generation cloud computing, the local governments hope to transform public services to be more e-commerce alike, wireless-enabled and smart based, and upgrade traditional manufacturing industry, the finance industry and the services industry. In order to provide one-stop cloud services, Aliyun launched the “cloud cooperation plan” in August 2014, which is to build a cloud eco-system with partners in the data technology (DT) era.

10/27
2014

Digital China Announces FY2014 Third Quarterly Results - Futher Promotes the General Strategy of Diversification, With more Efforts on Fostering New Businesses

10/08
2014

Digital China Joins Hands with Benxi Municipal Government of Liaoning Province in Launching a Citizen Integration Service Platform

Digital China Joins Hands with Benxi Municipal Government of
Liaoning Province in Launching a Citizen Integration Service Platform


(8 October, 2014, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that the “Benxi Citizen Integration Service Platform” jointly developed by the Group and Benxi Municipal Government of Liaoning province was officially launched on 25th September, which was the first time that Citizen Integration Service Platform V3.0 of Digital China made its debut.

The platform has integrated on-line services with off-line services. By bringing together government administration, commerce, citizens’ life and other services, the “Benxi Citizen Website” can provide human-oriented and tailor-made integration services to the locals. Citizens can make related inquires, deal with relevant personal business or communicate directly with the city administrators through computers, mobile phones or self-service terminals; the off-line product “Citizen Card” allows citizens to handle personal business, enjoy public services, complete transactions and make payments in a more convenient manner and therefore one card will be used for multiple purposes and citizens will make relevant payments within just five minutes. In order to contribute to the convenient use of Citizen Cards, Benxi Municipal Government will work with Digital China to install self-service terminals in different communities.

Mr. Guo Wei, chairman of Digital China said at the product-launch event: “The launch of the Citizen Integration Service Platform is just a start of the Sm@rt City development in Benxi. Digital China will spare no effort to achieve the goal of the Sm@rt City development in Benxi, the goal of improving people’s livelihood and turning Benxi into a shining SmArt City. The Group would like to take this opportunity to take root in Benxi and grow along with this city.”

Mr. Gao Hongbin, mayor of Benxi city, said, “As the State Council recently launched a series of policies on rejuvenating the development of northeastern China, Benxi wants to speed up the cooperation with Digital China and relevant organizations to jointly accelerate the development of the data center of cloud computing, city operation management center and other projects, and take advantage of the Big Data to better benefit citizens, enterprises and municipal administration, as well as to promote scientific, sustainable and inclusive development in terms of Benxi’s society and economy.”

In addition, the Northeastern Research Center of Digital China Sm@rt City Engineering Academy was officially launched at the product-launch event, which was the first Sm@rt City research base that was jointly established by the enterprises and the government; meanwhile, telecom companies in Liaoning and many of commercial banks in Benxi city and other enterprises will also engage in the Sm@rt Benxi development. The agreement entered into between Benxi Municipal Government and the local commercial banks has saved the cost invested by the government, and improved the financial payment function of Citizen Card. Besides, the banks can tap into broader market through Citizen Card promotion and take the service platform as a core, to bring together the Citizen Website, the Citizen Card, the research base, the e-commerce Cloud base and the Big Data center to develop the Sm@rt industry in Benxi city, as well as to fuel the economic transformation and upgrade as a whole in Benxi city.

09/25
2014

Digital China and Heihe Municipal Government Signs a Strategic Cooperation Agreement - Jointly Develop a "Happy Heihe" and a "Sm@rt Heihe"

Digital China and Heihe Municipal Government Signs a Strategic Cooperation Agreement
Jointly Develop a “Happy Heihe” and a “Sm@rt Heihe”


(25 September 2014, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that Heihe Municipal Government and Digital China signed a strategic cooperation agreement in terms of Sm@rt City on 21st  September. Under the agreement, both parties shall conduct comprehensive cooperation in areas of public service platform development, smart community, E-checkpoint, city management and smart travelling so as to jointly develop a “Happy Heihe” and a “Smart Heihe”.

In recent years, sticking to the outlook of sustainable development and the idea of conducting transformation in the process of development, Heihe Municipal Government has laid a solid foundation for informalization development. Growing on this base, Heihe Municipal Government has launched a new series of construction projects in terms of the “Five Key Strategic Emerging Industries”, including agriculture and forestry, pillar industry of mining, cultural tourism, modern service of foreign trade and logistics, and  new energy, etc.so as to develop a “Happy Heihe” and a “Sm@rt Heihe” in an all-round manner.

After the agreement was entered into by Heihe Municipal Government and Digital China, with a top-level design and a scientific planning, both parties will take advantage of the support from the government and enterprises, focus on forging a public service system for citizens, improve public service standards, promote the development of a service-oriented government, and enhance residents’ happiness level.

Mr. Guo Wei, Chairman of Digital China said: “In order to increase Heihe’s information consumption, provide multi-channel integration services and nurture economic growth in new areas, Digital China will provide comprehensive tailor-made services to Heihe in terms of smart tourism, smart checkpoint and smart government administration, as well as accelerate the development of industry structure upgrade and high-end information services. Digital China aims to turn Heihe that is now a conventional border tourism and trade city into a new Sm@rt City “integrating services with information consumption” and therefore upgrade from an informalization city to a Sm@rt City.”

09/24
2014

Digital China Conducts Comprehensive Cooperation with the Municipal Government of Luohe, Henan in Sm@rt City

Digital China Conducts Comprehensive Cooperation with the
Municipal Government of Luohe, Henan in Sm@rt City


(24 September 2014, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that Digital China and Henan’s Luohe municipal government has signed an strategic cooperation agreement which both parties would conduct cooperation in terms of Sm@rt City.

Luohe, a city where the Oracle Bone Symbols unburied are 4,000 years older than the Oracle Bone Inscriptions discovered in Yinxu, Anyang, and the Seven-Scale Bone Flute unburied is by far the oldest instrument in the world music history. Besides, Luohe boasts a historical site where the first joint war operation conducted by several kingdoms in ancient China took place in human history. However, how to combine ancient civilization with modern technology? In what way Luohe can achieve sustainable development as a well-known historic and cultural city? Those questions are always put under the consideration of Luohe municipal government.

On 29th January 2013, Zhengzhou, Hebi, Luohe, Jiyuan, Xinzheng and Luoyang New Zone in Henan province were put on the list of the first batch of 90 pilot smart cities issued by the Ministry of Housing and Urban-Rural Development of the PRC. Luohe aimed to develop a Sm@rt City of its own characteristics by combining informatization with industrialization, actively looking for cooperation opportunities with scientific and technical corporations of great strength.

Digital China is a pioneer in developing smart cities in China with rich expertise and experience in terms of informatization, sound theories and solutions for Sm@rt City development that best match China’s national conditions. Currently, Digital China has introduced its Sm@rt City strategy in more than 70 cities in China and signed strategic cooperation framework agreements with 26 cities. Mr. Guo Wei, chairman of Digital China expressed at the signing ceremony in Luohe that Digital China took a lead in concepts, technologies and practices when developing a Sm@rt City.

As Luohe is a pilot city, its development positioning and strategic goal just match the theories and practices of Digital China to a large degree. At the signing ceremony, Luohe’s mayor, Mr. Cao Cunzheng highly looked forward to the cooperation. Mr. Guo Wei said, “The difference of the cooperation lies in that we are not establishing a brand new platform for Sm@rt City development, but complementing each other for win-win results based on a platform that has a long tradition and a solid foundation for industrial and agricultural development.” It is said that both parties will establish a joint venture. Digital China will arrange for a professional team to station at Luohe and further study the  specific needs in Luohe, while the local government will make all-out efforts to support the cooperation in terms of policies and funds. Both parties aimed to grow stronger by bring together their own advantages.

As the largest meat processing base in China, crop processing base and an important beverage production base in the Central China, Luohe has always been committed to develop an industrial chain in modern agriculture. Digital China has been taking a lead in agricultural informatization and information security in food industry. It has established a system that can show the origin of meat and vegetables by conducting cooperation with Suzhou city and Wujiang city and therefore has become a model for food safety in China.Recently, Digital China acquired Beijing Zhongnong Xinda Information Technology Limited (中農信達信息技術有限公司), China’s largest agricultural informatization company and introduced a comprehensive strategy for agricultural informatization. After signing the agreement with Luohe, Digital China will mobilize qualified resources to provide digitalized services to the food processing industry in Luohe and contribute to the development of food safety system and the entire industrial chain in Luohe.

Mr. Guo Wei emphasized, “Only by combining advanced concepts and technologies with the typical characteristics of each city, we can provide practical services to the cities. In the process of future development of the Sm@rt City in Luohe, Digital China will commit itselfto improving the domestic government’s services standards, contributing to regional prosperity and citizens’ sense of happiness and inject new genes for development into this one-thousand-year ancient city by devoting its rich experience accumulated in terms of ‘Citizen Services Platforms’, ‘Cloud Computing’ and ‘Big Data’ over the past years, conducting cooperation with the domestic government and enterprises in an all-round way.”

08/25
2014

Digital China Announces FY2014 Interim Results - Continue to Promote Strategy Deployment in Key Areas, Extend Development by Utilizing Capital Operation

06/30
2014

Mr. Yang Xueshan, Vice Minister of MIIT Visited Digital China - Hearing Application of Safe and Reliable Information System

Mr. Yang Xueshan, Vice Minister of MIIT Visited Digital China 
Hearing Application of Safe and Reliable Information System
 
(30 June 2014, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that on 19 June, Mr. Yang Xueshan, Vice Minister of Ministry of Industry and Information Technology (MIIT), visited Digital China and listened to the working progress report of the Alliance for Promoting Applications of Safe and Reliable Information System and the Joint Lab of Safe and Reliable Solutions established by the Alliance. He has exchanged views with member enterprises of the Alliance, while inaugurated the Lab of Safe and Reliable Solutions with leaders of the Alliance enterprises. Staff of MIIT Software Services Division, MIIT Electronic Information Division and Beijing Municipal Committee of Economy and Information Technology also joined the research forum. 
 
During 12th Five-Year Plan period, China has launched a series of major projects in the Information Technology field, aiming to acquire key technologies and develop core strategic products, so as to build a complete self-developed innovating system. Currently, competition in global information industry is largely about a more competitive value chain and eco-system rather than competition in merely products, technologies or business models. Therefore, cooperation between upstream and downstream in the value chain must be strengthened to enhance overall competitiveness. With the establishment of the Central Leading Group for National Internet Security and Informatization, information security has been lifted to national strategies level, which provides favorable development environment and opportunities to domestic IT companies. Under this circumstance, Digital China Information Service (DCITS, 000555.SZ), a subsidiary of Digital China, and Sugon invited three other leading companies in the IT industry chain, including Shenzhou General Data, China Standard Software and Beijing Tongtech to jointly found the Alliance for Promoting Application of Safe and Reliable Information System in May 2014. 
 
The five companies of the Alliance are playing important roles in China’s IT industry value chain. Servers with proprietary IP self-developed by Sugon, and the operating system self-developed by China Standard Software offered sound infrastructural support on the IT system resources level. On application support level, Shenzhou General and Tongtech provided database and middleware based on local demand. On industry application level, DCITS, leveraging its years of accumulated experience as well as its significant market influence, established platforms for joint researches, adopting safe and reliable solutions in areas like Sm@rt City, finance, taxation and etc. Through vertical integration of core resources of the IT industry, the five member companies have built a thorough eco-system from infrastructure to application levels. 
 
The Alliance for Promoting Application of Safe and Reliable Information System is the sole application promotion alliance initiated by domestic enterprises. The alliance will tailor- make application solutions according to specific clients’ needs. On the premise of market feasibility, the Alliance will work to ensure technical feasibility through the cooperation of solutions and infrastructure supports, after which it will ensure commercialization feasibility through collaboration among member companies in market development, product development, personnel cultivation and capital operation. 
 
The Alliance members, leveraging on the fruits of the forum, will strive to speed up the application of safe and reliable information systems in various industries with joint efforts and perseverance. 

06/20
2014

Digital China’s Sm@rt Business Landed in Chongqing Piloting the Integrated Services Platform

Digital China’s Sm@rt Business Landed in Chongqing
Piloting the Integrated Services Platform


(20 June 2014, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that on 18 June, the launching ceremony of the Company’s big data business and Chongqing Citizen Integrated Services Platform in Liangjiang New Area was held at the Administrative Committee Building of Chongqing New North Zone. Ling Yueming, member of the Standing Committee of Chongqing Municipal Committee, Secretary of the Party Working Committee and Director of the Administrative Committee of Liangjiang New Area and Secretary of the Party Working Committee of Chongqing New North Zone, and Mr. Guo Wei, Chairman of Digital China, and other leaders have attended the launching ceremony.

Chongqing has been a strategic focus of Digital China’s Sm@rt City business. In May 2013, Digital China signed a strategic cooperation framework agreement with Chongqing Municipal Government on Sm@rt City construction. In the past year, based on Chongqing City’s “Cloud project” and “Big Data Industry Project”, Digital China has proactively built its Management and Business Co-ordination Platform in Chongqing, aiming at developing it into Southwest China’s headquarter. The Southwest Headquarter Building was established in Chongqing New North Zone as well.

Through engaging in Big Data, Mobile Internet, Internet financial services, IT distribution, e-commerce and so forth, Digital China has bee promoting its Sm@rt Industry initiatives. The Group has strived to bring upstream and downstream companies of the value chains to Chongqing, which have clustered on the Big Data industry, and thus making significant progress in the Sm@rt City business.

At the launching ceremony of Chongqing Citizen Integrated Services Platform, Mr. Ling Yueming, Member of the Standing Committee of Chongqing Municipal Committee, commented, “Digital China’s Citizen Integrated Services Platform represents the advanced standard of Sm@rt City development in China. Liangjiang New Area of Chongqing, as the pilot district, aims to improve the level of public services by means of information technology. The Platform is planned to cover the whole Chongqing City gradually. The launch of the Platform is a very important step toward uplifting people’s living standard in Chongqing.”

Chongqing Citizen Integrated Services Platform follows the implementing strategy of “Top-down design, Piloting in some areas”, having Liangjiang New Area as the pilot zone. It aims to build a one-stop public services platform, which will bring convenient government services and life experience to Chongqing citizens in the future.

This time’s Big Data industry landing also included the signing ceremony of the headquarter building of the Southwest region, and opening ceremonies of Sm@rt China (Chongqing) Operation Services, Digital China HC Micro Finance of Chongqing and other two companies. These companies will focus on Sm@rt City and Big Data industries, Internet finance industry, traditional IT industry, Science and Technology Park and other related industries. The total amount of investment is nearly RMB 3 billion and the future combined industry output is exceeding RMB 10 billion. Meanwhile, it can lead to an industrial cluster effect, driving breakthroughs of the whole Sm@rt industry in Chongqing. The signing ceremony of strategic cooperation between Digital China and Chongqing Bank was held at the same time.

05/27
2014

Digital China Announces FY2014 First Quarterly Results - Steadily promotes Sm@rt City and Business Restructuring Began to Bear Fruits

Digital China Announces FY2014 First Quarterly Results
Steadily promotes Sm@rt City and Business Restructuring Began to Bear Fruits


(27 May 2014, Hong Kong) Digital China (the “Group”; Stock Code: 00861.HK;910861.TW), the largest integrated IT services provider in China, today announced its first quarterly consolidated results for the three months ended 31 March 2014 (the“Period”).

During the period under review, China’s economic situation remains grim and the IT sub-segment markets showed little signs of improvement. Nevertheless, the Group reported stabilised revenue and profit thanks to the effective implementation of measures in “Controlling Costs” and “Adjusting Structures”. For the first quarter, the Group reported revenue of approximately HK$16,544 million, a decrease of 1.7% as compared to the corresponding period of last financial year; While our overall gross profit margin decreased by 129 basic pints to 6.19% , gross profit margin figures for our principal business segments were steady or higher during the period. For the first quarter, profit attributable to equity holders of the parent amounted to approximately HK$198 million, an increase of 0.9% ; Basic earnings per share amounted to 18.56 HK cents, an increase by 0.18 HK cents over 18.38 HK xents.

In view of complicated market conditions, the Group continued to exercise stringent cost control and business structure adjustment. During the period, the Group’s selling and distribution expenses, administrative expenses and total operating expenses decreased by 28.4%, 48.9% and 19.5%, respectively. While consolidating its fundamental businesses, the Group also enhanced its effort in business mix adjustment, with the aim of mitigating the impact of declining business through continuous development of high-growth segments, the Group achived a very successfully cash flow management progress, net cash inflow from operating activities of approximately HK$655 million during the period, providing a solid foundation for reaching cash flow target throughout the financial year.

To address the medium- to long-term impact of market changes, the Group sought to make more in-depth efforts in innovation and transformation with reference to certain breakthrough points. In connection with our traditional businesses, the Distribution Business was focused on implementing “Omni-Channel” marketing during the period with the aim of enhancing values on the vendors’ side, while our Systems Business was stepping up with its planning for the domestic brand business. The Group’s Sm@rt City Business provided support to 12 cities in applying for national pilots cities and provinces. This Business has also expanded the functions of the Public Information Service Platform and further improved the Enterprise Integrated Service Platform, while completing the prototype development for the City Operations and Management Centre. During the first quarter of the current financial year, the Group entered into Sm@rt City strategic cooperation agreements with cities such as Xuzhou and Qinhuangdao, bringing the total number of cities signed up for strategic cooperation to 21.

To review the distribution business of group, though the market is still in low level, the Group’s Distribution Business made a balanced effort in three major channel formats and achieved positive revenue growth with its major brands outperforming. Revence of the Group’s Distribution Business amounted to approximately HK$9,585 million, representing an increase by 4.0% as compared to the corresponding period of last financial year; Gross profit margin of the Distribution Business for the first quarter was 2.97%, reflecting consolidation of the much improved margin recorded for the previous quarter.

During the period, revenue from notebook sales (excluding CES channels) was argely unchanged from the corresponding period of last financial year, while revenue from accessories sales (excluding CES channels) and the sales of Mobile Internet business increased by 31% and 14%, respectively. Substantial growth was reported in the sales of major cooperating brands with CES partners for the first quarter as we continued to enhance our capabilities in CES retail management, while closer cooperation with e-commerce customers was fostered by seeking steady progress in the scope and model of collaboration with mainstream e-commerce customers, resulting in a year-on-year growth of over 20% in revenue for the first quarter.

As proactive adjustment of business mix and efforts in new sector market development, the Group’s Systems Business was to enhance development of the application sub-segment markets, year-on-year revenue decline for first quarter narrowed obviously versus comparable figures for previous financial year, the Group’s Systems Business reported revenue of approximately HK$4,874 million, a 2.5% decline as compared to the corresponding period of last financial year. Gross profit margin of the Systems Business standing at 8.68%, was lower on a year-on-year basis but represented improvement over the same period last year.

However, due to the continued decline infavorable conditions from some core vendors, the Group adhered to share management and stable a foundation for business advantage, while achieved a substantive breakthrough by increasing expansion of the domestic brands and subdivision applications. The Systems Business reported initial positive results in its efforts to enhance development of application sub-segment markets, as it seized growth opportunities in these sub-segments in close tracking of market trends. Revenue from packaged software products and data storage products grew by 54% and 22%, respectively, as compared to the corresponding period of last financial year.

For the service business, in 2014, following the government’s call for deepening reforms on all fronts and encouragement of adequate market competition, it caused maetker competition increased in the first quarter. The Group’s Services Business continued to drive its customer plans in a bid to broaden coverage of customers, as well as strength the risk prevention, while selecting customers and businesses in a prudent manner to ensure long-term business stability. Revenue from the Group’s Services Business during the period decreased by 25.4% to approximately HK$1,685 million, as compared to the corresponding period of last financial year, Gross profit margin for the Services Business was 15.17%, an increase by 118 basis points as compared to the corresponding period of last financial year.

The Gorup continuous drive of strategic transformation to enhance business deployment. The revenue from software, technology services, operation, proprietary brand equipment as a percentage of total revenue for the Services Business increased to 33%, an increase of 9 percentage points as compared to the corresponding period of last financial year, reflecting ongoing business mix optimisation of the segment.

During the period under review, the Supply Chain Services Business reported revenue of approximately HK$400 million, an increase by 12.2% as compared to the same period of last financial year. The logistics service business and maintenance service business grew by 33% and 7% respectively, as compared to the same period of last financial year. The logistics business continued to improve operation quality and customer satisfaction. Premium customers in the communications, IT, home appliances and home decoration sectors were solicited. The maintenance business extended its scope to cover new product lines in peripherals, tablets, Internet equipments and home appliances, while continuing to improve store profitability and new models for services sales in in internet marketing.

Looking ahead, the chief executive officer of Digital China, Mr.Lin Yang said, “ The Group’s business stabilised during the first quarter of 2014 despite the continued downturn of the macro-economy, thanks to the gradual implementation of its business adjustment measures. We believe that the macro-economy will not be subject to excessive volatility under the government’s policy of setting upper and lower limits for economic growth. The Group will continue to pursue growth for its Distribution Business and seek to reverse the decline of its Systems Business through enhanced business adjustment. The promulgation of the “National Planning for New Urbanisation (2014-2020)” and “Notice on Tasks relating to the Acceleration of the IT For the People Project” at the start of 2014 in connection with the further drive of Sm@rt City at national level has created an excellent opportunity for the progress of our Sm@rt City business. The Group remains firmly committed to the objective of transforming its business towards the Internet-based Sm@rt City model, in a bid to deliver greater value for shareholders.”

04/30
2014

Actively Deployed Smart City Strategic Coorperation - Digital China Creating Extraordinary 2014

Actively Deployed Smart City Strategic Coorperation
Digital China Creating Extraordinary 2014

(30 April 2014, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that the Group signed a strategic cooperation framework agreement on 23 April with the Chengdu Municipal Government for the development of Sm@rt City. The Group has previously entered into several cooperation agreements with the authorities of Xuzhou, Qinghuangdao, Luoyang and Wuxi, respectively. Both parties will, based on the needs for development of the Sm@rt Chengdu and leveraging Digital China’s strengths, forge cooperation in integrated public services, e-commerce and logistics, Sm@rt city industrial park, Green city, IT operation and maintenance services, among others, with a view to promoting “Benefiting from Information” in Chengdu and a healthy development of the Sm@rt City. Li Kunxue, Deputy Secretary of Chengdu Municipal Government, Gou Zhenli, Deputy Mayor of Chengdu, Guo Wei, Chairman of the Board of Directors of Digital China, and Xie Yun, Vice President of Digital China Information Services, attended the signing ceremony.

  
 
The Sm@rt City presents a new concept and model of China’s urban transformation, as well as the integration of IT development and urbanization process. In this year’s urbanization development plan, the Chinese Government has attached great importance to Sm@rt City construction, and Chengdu is one of the first 20 pilot cities nationwide.
 
According to Mr. Guo Wei, Chairman of Digital China, Chengdu plays a pivotal role in the Company’s strategic layout in China as the hub of technology, commerce, finance, transportation and communication in Southwest China. Pursuant to the strategic agreement with Chengdu Municipal Government, both parties will focus on Chengdu City’s goal for urban development and foster cooperation in Sm@rt City planning, Sm@rt industry development and public information applications. By joining forces, the two parties aspire to build Chengdu into a model Sm@rt City in China as well as in the world.
 
Gou Zhenli, Deputy Mayor of Chengdu said: “Amidst the new urbanization development, the introduction of modern information services corporations such as from Digital China, will not only foster a closer partnership between both parties in Sm@rt city, Sm@rt industries and public information applications, but also drive the development of new generation information technology industry in Chengdu.” 
 
Sm@rt city of Digital China has been expanded to more than 70 cities nationwide after its 4 years of technology development and profound practice since Digital China’s announcement of its Sm@rt City strategy in 2010. The public information service platform, which has been launched last year, became the first core support system in urban management, and is able to fully integrate government services, public services and business services. Its offering of a comprehensive and multi-faceted information communication system and convenient service platform to the idea of “Benefiting from Information” showcases the top level of innovation in terms of the Sm@rt City development. Currently, this platform operates in Fuzhou, Foshan, Zhangjiagang and other cities; whilst drawing attention in the industry and the public. Currently, Digital China has entered strategic cooperation agreements with 24 cities, including those signed with Municipal Governments of Xuzhou, Qinghuangdao and Luoyang in 2014.
 
Digital China earned wide recognition by related authorities in China for its outstanding achievements in the development of Sm@rt city. During the “2014 International Forum for China’s Urbanization”, 10 different authorities, organizations and enterprises, including Cities and Small Towns Reform and Development Center of NDRC, Digital China, SEEC Media and SRE Group have formed the “Sm@rt City Development Alliance”. The alliance aims to accelerate the development of “Benefiting from Information”, convey the message and idea of the development of Sm@rt City to the public, drive urban governance and management, and public service innovation, to achieve a people-oriented and sustainable development by promoting Sm@rt City. 
 
In the future, the alliance will focus on the requirements of "China New-type Urbanization Plan". Under the policy framework of “Notice about Accelerating the Development of Public Information Projects”, the alliance will cooperate with the high-tech industry department of National Development and Reform Commission on policy advice and research, so as to promote the communication of relevant industry-leading companies, and to accelerate the implementation and operation of Sm@rt City plan.

04/22
2014

Digital China Signs Strategic Cooperation Agreement with Wuxi Municipal Government Jointly Construct One Centre and Four Platforms in Sm@rt Wuxi

Digital China Signs Strategic Cooperation Agreement with Wuxi Municipal Government
Jointly Construct One Centre and Four Platforms in Sm@rt Wuxi

 

(22 April 2014, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that the Group signed a strategic cooperation agreement on 16 April with the Wuxi Municipal Government for the development of Sm@rt City in the city. Pursuant to it, both parties will bolster cooperation on the Sm@rt Wuxi’s overall construction scheme of One Centre and Four Platforms, the construction and operation of Sm@rt City key projects, urban big data centre, public integrated information service platform as well as other industrial information applications, so as to accumulate industry resources and foster informatization in Sm@rt Wuxi. Ms. Huang Lixin, the Secretary of Wuxi Municipal Committee; Mr. Wang Quan, Mayor of Wuxi City; together with Mr. Guo Wei, Chairman of Digital China, and Ms. Liu Yao, Vice President of Digital China, hosted the signing ceremony. Mr. Cao Jiazhong, Deputy Major of Wuxi City, Mr. Zhang Keping, Director of Information Office with major principals from major bureaux and commission witnessed this significant moment.

In order to impel Sm@rt Wuxi construction, to further enhance the capacities of Wuxi E-government affairs, urban management, economic operation and public services, and to rank top on the development Sm@rt Cities in China, Wuxi Municipal Government actively discusses and cooperates with Digial China, a leading enterprise in Sm@rt City development. They come to an agreement on the strategic cooperation agreement of Sm@rt Wuxi, thereby continuously strengthening leading edge of Wuxi city in the Sm@rt city operation.

Pursuant to the agreement, Digital China will fully participate in the construction of Sm@rt Wuxi, leveraging its advanced concepts of Sm@rt City construction and operation as well as the integration of IT technology and other resources. The Company will provide IT solutions, software applications, IT and others services in different aspects, including citizen and enterprise services, community services and infrastructure construction. Wuxi Municipal Government will proactively support Digital China’s development in Wuxi by capitalising on its capacity in industry integration, government services and policy advantages. Besides, Wuxi Municipal Government and Digital China plan to establish a coordination group on strategic cooperation, so as to forge a closer cooperation in the future.

Wang Quan, Mayor of Wuxi City, said at the signing ceremony, “By proactively introducing China’s leading IT companies like Digital China into Wuxi, and upgrading traditional industries with information technologies, we strive to form an all-round development of Sm@rt Wuxi to build Wuxi City into a leading demonstration area of Sm@rt City. Wuxi Municipal Government will create favourable conditions to give a full play to Digital China’s strong service capacity in Sm@rt City area, thereby encouraging Digital China’s participation in smart city construction and boosting the development of Sm@rt Wuxi.”

Mr. Guo Wei, Chairman of Digital China, commented, “Wuxi is a model city in terms of the application of information technology in China, and Digital China has rich practical experience and leadership in Sm@rt city expertise. The cooperation will help enhance the level of informatization in Wuxi, while catering macroeconomic policies of “expanding information consumption” and others. In the next stage, Digital China plans to connect its advanced integrated service platform and its industry informatization solutions with Wuxi’s overall construction scheme of One Centre and Four Platforms. Digital China is engaged in building Wuxi city into a leading demonstration area of Sm@rt City with international influence, a smart economic development industry hub with top competitiveness, and an innovation area of smart public services with strong radiating capacity.”
 

04/16
2014

Digital China Signs Strategic Cooperation Framework Agreement with Luoyang New District Administrative Committee to Jointly Promote and Construct “Sm@rt Luoyang”

Digital China Signs Strategic Cooperation Framework Agreement
with Luoyang New District Administrative Committee to
Jointly Promote and Construct “Sm@rt Luoyang”

 

(16 April 2014, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that the Group signed a strategic cooperation framework agreement on 11 April with the Luoyang New District Administrative Committee for the development of Sm@rt City.  Both parties are going to promote the "Sm@rt Luoyang", focusing on the construction of Sm@rt urban designs, public information platform and Sm@rt industries. Mr. Wang Lilin, Director of Luoyang New District Administrative Committee, Mr. Shang Yingzhao, Deputy Mayor of Luoyang City, Lou Huifeng, Deputy Director of Luoyang New District Administrative Committee, Ms. Li Jiangyin, President of Digital China Sm@rt City - Central District and other leaders attended the ceremony.

Mr. Guo Wei, Chairman of Digital China, commented, “This is another important strategic initiative for the Group to expand Sm@rt Cities following the strategic cooperation framework agreement with Qinhuangdao Municipal Government in March. We will continue to play our advantages and work with various cities for the construction and operation of Sm@rt City. Through cooperation with the Luoyang Municipal Government, Digital China will maintain its high standard, high-efficiency guidelines for the Sm@rt City's construction, with a view to providing high quality services.”

As one of the country's first pilot Sm@rt Cities under the Ministry of Housing authority in China, Yibing New District in Luoyang City has a total planning area of 70 square kilometers, and plans to become the first real Sm@rt City of high standard, as well as a national model of Sm@rt Cities. As the first batch on the list, the Group has fully participated in the concept of Sm@rt city’s planning in Luoyang New District. Leveraging its philosophy and experience of building Sm@rt Cities, Digital China will fully participate in the "Sm@rt Luoyang," such as the high level designs and planning, as well as the development of smart industries, whilst launching the pilot project in Yibing New District of Luoyang New District. Furthermore, the construction will be extended to the core region of New District and the entire city, and thus gradually across the country. Pursuant to the agreement, Digital China and Luoyang city government will carry out in-depth cooperation in the field of Sm@rt City’s decision support, public information and service platform, exhibition center of Sm@rt city, the urban management, construction and operation of public cards, etc., to jointly promote the construction of "Sm@rt Luoyang".

The planned public information and service platform in Luoyang City is the first core support system for Sm@rt Cities, which is first announced by the Group in October 2013. Currently it has been operating online in Fuzhou, Foshan, Zhangjiagang, among other cities. Through a variety of service channels such as personalized citizen website, citizen card, citizen service hotline and community service stations, the platform integrates government services, public services, ancillary business service for residents, network consultation and urban management, thereby providing one-stop convenient services for public, enhancing the government's public service capacity as well as improving people’s well-being.

03/25
2014

Digital China Announcement Results for FY2013 9 Months Ended, keeps Innovating in Traditional Business and Progresses Firmly in Sm@rt City

Digital China Announcement Results for FY2013 9 Months Ended

keeps Innovating in Traditional Business and Progresses Firmly in Sm@rt City

03/04
2014

Digital China Signs Strategic Cooperation Framework Agreement with Qinhuangdao Municipal Government Driving Sm@rt City Development In The City

Digital China Signs Strategic Cooperation Framework Agreement with Qinhuangdao Municipal Government
Driving Sm@rt City Development In The City


(4 March 2014, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that the Group signed a strategic cooperation framework agreement on 28 February with the Qinhuangdao Municipal Government for the development of Sm@rt City in the city. Mr. Zhao Yong, Deputy Secretary-General of CCP Hebei Provincial Committee; Mr. Tian Xiangli, Secretary of CCP Qinhuangdao Municipal Committee; Mr. Shang Liguang, Mayor of Qinhuangdao; together with Mr. Guo Wei, Chairman of Digital China, hosted the signing ceremony.

The Group and Qinhuangdao Municipal Government will create city public service platform and Sm@rt city strategic cooperation framework, bolster cooperation on the development of smart industry park so as to drive the growth of Sm@rt City and smart industries in the city. Also, both parties plan to build cloud data network information security base, and promote environmental governance by employing new energy for further cooperation. Thus, the cooperation can improve people's livelihood in Qinhuangdao, promote the economic development and attract talents so as to drive the vigorous development of IT industries.

Qinhuangdao City has attached great importance to Sm@rt City construction. It is clearly stated in the "Twelfth Five-Year Plan" that efforts will be put in the systemization and smartization of the city management through fully leveraging Internet technologies and integrating related resources within the next five years.

Mr. Zhao Yong, Deputy Secretary-General of CCP Hebei Provincial Committee, said, “At the stage, China is invigorating the country economy through promoting Internet industry. This can largely benefit the cooperation between Qinhuangdao City and Digital China in Sm@rt City construction. We hope to achieve full coverage of information services through our joint efforts of innovation, therefore boosting the overall development of information industry chain in Qinhuangdao City such as Cloud Computing, electronics manufacturing and logistics services.

Mr. Guo Wei, Chairman of Digital China, commented, “Digital China will utilize its integrated advantages to consolidate the demands of informatization and development of the information industry in Qinhuangdao. In addition it will innovate the service model and build an innovative mechanism of government management and service. Digital China will work closely with Qinhuangdao Municipal Government aims to construct the smart community as pilot, to co-create a public information service platform which consist of an integrated service platform for citizens, integrated service platform for enterprises and city management platform. This will build Qinhuangdao into a paragon of government public services.”

02/25
2014

Digital China Signs Strategic Cooperation Framework Agreement with Xuzhou Municipal Government Boosting Smart Industry Development in Xuzhou

Digital China Signs Strategic Cooperation Framework Agreement with Xuzhou Municipal Government
Boosting Smart Industry Development in Xuzhou

 

(25 February 2014, Hong Kong) Digital China (the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, announced that the Group signed a strategic cooperation framework agreement with Xuzhou Municipal Government on 20 February 2014. This cooperation aims to promote development of information technology and modern service industries in Xuzhou. Xuzhou City Mayor, Mr. Zhu Min; Vice Mayor, Mr. Feng Xingzhen together with Chairman of Digital China, Mr. Guo Wei, attended the signing ceremony.

Digital China will initiate extensive cooperation with Xuzhou Municipal Government thereafter on Sm@rt City development in areas such as provision and operation of public services to citizens and enterprises, city management, so as to integrate IT industry resources and promote consumption arising from informatization. After thorough surveys on local government bureaus, companies and citizens as well as systematic study of the city’s social, economic and IT development, Digital China mapped out the "Blueprint of Sm@rt Xuzhou" . This top-level planning of Xuzhou's smart industries integrates foreign and domestic Sm@rt City concepts and practices.

Mr. Zhu Min, Mayor of Xuzhou City, said, “Xuzhou Municipal Government has attached great importance to Sm@rt City construction. We believe the informatization strategy will help us build the Sm@rt Xuzhou, therefore creating apparent competitive advantages for Xuzhou. Meanwhile, it can raise the city’s environment capacity, creating a new cultural landscape and improving people’s well-being.”

Mr. Guo Wei, Chairman of Digital China, commented, “the strategic objectives of Sm@rt Xuzhou perfectly match Digital China’s Sm@rt City concepts and experiences. Digital China is willing to go hand in hand with Xuzhou to bolster all-round cooperation on the construction and operation of Sm@rt Xuzhou as well as driving Xuzhou IT industry development. We aim to promote the city’s economic structural transition and upgrade, casting a modern smart regional hub.”
 

12/10
2013

Digital China’s sCloud Services In Spotlight At 2013 CCEXPO

12/09
2013

Digital China Shined in China High-Tech Fair 2013 Showcasing its Sm@rt City Development Updates

12/06
2013

Digital China Signs Strategic Cooperation Framework Agreement with Benxi Municipal Government on Sm@rt City Project - Driving the Sm@rt City Development In The City

Digital China Signs Strategic Cooperation Framework
Agreement with Benxi Municipal Government 
on Sm@rt City Project
 
Driving the Sm@rt City Development In The City
 
(6 December 2013, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, announces that the Group signed a strategic cooperation framework agreement on 28 November with the Benxi Municipal Government for building the “Benxi Sm@rt Green City”. Pursuant to it, both parties will carry out in-depth cooperation on the development of Sm@rt City project and build an informatized public services platform in Benxi within three years. One of key areas they will focus on is to develop a cloud-based data center, a city operation and management center, citizen card system and public information service platform in the city.
 
 
The “Benxi Sm@rt Green City” is a core Sm@rt City project of local government to enhance the city’s management and public services and to facilitate its policy formulation by raising its informatization, digitalization and intellectualization levels. This project will help improve the standards of local public services and propel the transformation of local government towards service-driven, turning this traditional industrial city in Northeast China into a new smart city integrating services, information and consumption.
 
 
Under the witness of the Mayor of Benxi City Mr. Gao Hongbin, Vice Mayor Mr. Qu Gang, on behalf of Benxi City, signed the agreement with Digital China at the signing ceremony.  Mr. Gao Hongbin delivered a speech at the ceremony, “While carrying out the ‘Sm@rt City’ project, the Benxi Municipal Government will strive to explore the best ways to serve local citizens and enterprises, to improve its administration and services quality so as to increase citizens’ satisfaction, to provide a platform for enterprises to understand the conditions of Benxi City on a timely basis, and to provide the local government with a convenient and effective channel for decision-making. The Benxi Municipal Government will work closely with Digital China to drive the construction of ‘Benxi Sm@rt Green City’.  At the same time, we sincerely hope that Digital China will actively attempt to explore regional development models and related businesses and contribute its efforts in these areas in the future.”
 
 
Mr. Lin Yang, CEO of Digital China, said, “It can effectively reinforce Sm@rt City construction by establishing Citizen Card and City Public Information Service Platform. This will also further improve people’s livelihood, transparency of the city’s management, and the city’s industrial structure, thereby boosting the transformation and upgrade of China’s economy and society. As a pioneer in the development of Sm@rt City project, Digital China has engaged in it for over 5 years. We have completed a complete theoretical framework and technical system and will introduce domestic and overseas cutting-edge concepts and technologies of Sm@rt City into Benxi’s construction. Working closely with Benxi municipal government, we aim to build ‘Benxi Sm@rt Green City’ into a national model for China’s Sm@rt City construction.”

11/29
2013

Digital China's Chairman Guo Wei Named the Most Influential Leader of Listed Company at China Securities Golden Bauhinia Awards

11/28
2013

Digital China Named as Gold Award Winner of The Asset’s Corporate Awards for Four Straight Years

Digital China Named as Gold Award Winner of
The Asset’s Corporate Awards for Four Straight Years


(28 November 2013, Hong Kong) Digital China (the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, is pleased to announce that it won the Asset Excellence in Management and Corporate Governance Awards 2013 – Gold Award. This was the fourth consecutive year for the Group to receive this award from the globally renowned financial magazine. In February this year, Digital China was also named by The Asset as one of China’s Most Promising Companies in recognition of the growth potential of its Sm@rt City business as well as its leadership in domestic IT industry. The Group’s receiving of these awards reflects that it has been highly acclaimed in the global market for its all-round development.

The Asset Excellence in Management and Corporate Governance Awards are widely recognized in Asia. The award winners were selected after a judge panel from financial veterans in Asia with decades of market experience carried out rigorous selection process and thorough study in accordance with the stringent methodology. The Group’s regaining of the Gold Award reaffirms the market recognition of its performance in sustainable development, corporate governance, social responsibility, environmental responsibility and investor relations. This indicates that Digital China is widely recognized in the industry for its excellence in management and corporate governance.

Mr Guo Wei, Chairman of Digital China, said, “We feel very honored to receive this internationally famous award from The Asset magazine for the fourth consecutive year. This is a great encouragement for our team. Digital China proactively optimized its operating strategy and enhanced the Sm@rt City business in the face of worsening macro-economic conditions in the IT market. As our efforts are widely recognized in the market, the management is more confident about driving the Group’s future growth. We will continue to focus on the operating strategy of “Stabilizing Fundamentals, Adjusting Structures and Controlling Risks” in the future, so as to maintain its leading position and competitiveness in the industry. Moreover, we will make necessary structural adjustments in line with new market trends, in order to promote the Group’s long-term interests and to create greater value for shareholders.”

11/19
2013

Digital China Announces FY2013/14 Interim Results - Leveraging Sm@rt City Strategy to Further Enhance Servicing Capabilities

Digital China Announces FY2013/14 Interim Results
Leveraging Sm@rt City Strategy to Further Enhance Servicing Capabilities
 
(19 November 2013, Hong Kong) Digital China (the “Group”; Stock Code: 00861.HK; 910861.TW), the largest integrated IT services provider in China, today announced its consolidated interim results for the six months ended 30 September 2013 (the “Period”).
 
 
The continuous slowdown in China’s macro-economic growth since the 2012/13 financial year has resulted in unprecedented challenges for each IT sub-segment market and exerted obvious impacts on the Group’s operations. The Group’s management has devised an operating strategy focused on “Stabilizing Fundamentals, Adjusting Structures and Controlling Risks”. While seeking to reinforcing leadership in our traditional strongholds, we also made proactive moves to adjust our business structure, strengthen the operation of high-value businesses and step up efforts to foster new niches for business growth in the emerging sectors. Meanwhile, the Group continued to enhance its Sm@rt City servicing capabilities to drive implementation at cities which had signed up for Sm@rt City. During the Period, the final inspection of the Wujiang Meat and Vegetable Circulation Tracking System was completed, while the Foshan integrated citizen services platform has become a major channel of citizen services for the Municipal Party Committee and Municipal Government of Foshan. Also, the Group continued to enrich the contents of Sm@rt City business through cooperation at capital level and setting up a joint venture in Nanjing to operate the citizen card business. These developments have further reinforced the Group’s leadership in Sm@rt City expertise. During the second quarter of the current financial year, the Group invested HK$170 million to increase in the shareholding of HC International, Inc. (Stock Code: 08292.HK) and became the latter’s single largest shareholder. This investment will allow the Group to accumulate experience for the expansion of its Internet business, while facilitating future business cooperation between the two companies.
 
 
Financial Review
From the beginning of this financial year, competition was intensifying in an increasingly complicated IT market, where the profiles of products and competition were rapidly changing amid continued doldrums. Affected by such factors, the Group reported revenue of approximately HK$33,629 million for the six months ended 30 September 2013, a decrease of 10.09% as compared to the corresponding period of last financial year. Overall gross profit margin for the first six months of the current financial year was 6.16%. For the six months ended 30 September 2013, profit attributable to equity holders of the parent amounted to approximately HK$633 million, a decrease of 14.58% as compared to the corresponding period of last financial year. Basic earnings per share amounted to 59.24 HK cents. Excluding one-off gain arising from the disposal of a subsidiary, profit attributable to equity holders of the parent for the second quarter of the current financial year actually increased by 22.20% as compared to the corresponding period of last financial year.
 
The Group reported consistent reductions in expenditure following proactive measures in cost structure adjustment, stringent expenditure control and organisational optimisation. For the six months ended 30 September 2013, the Group’s total operating expense was 9.15% lower than that for the corresponding period of last financial year. During the second quarter of the current financial year, selling and distribution expenses and administrative expenses decreased by 20.91% and 39.23%, respectively, as compared to the corresponding period of last financial year. During the Period, the Group’s trade receivables turnover days was 58.74 days, being 2.46 days longer as compared to the corresponding period of last financial year. The longer turnover period was attributable to the adjustments of the Group’s business structure and the increase of businesses that have longer credit term. The progress of collecting receivables was also affected by complicated inspection and acceptance procedures owing to the diverse nature of certain projects. Taking into full account risks associated with market volatility, the Group implemented its risk management policy in a persistent manner. Net cash inflow from operating activities for the second quarter of the financial year amounted to approximately HK$150 million, providing an effective protection for the stable operation of the Group’s business.
 
Business Review
 
Services Business (primary focus on the Industry Market, offering products and services in IT planning and IT systems consultation, design and implementation of industry application software and solutions, outsourcing of IT system operation and maintenance, as well as systems integration and maintenance)
During the current financial year, there was a trend of postponing IT procurement among industry customers amidst a macro-economic downturn. The Services Business reported stable growth with the effective support of the Group’s persistent drive of customer plans and ongoing market development efforts in the financial and government & corporations sub-sectors, for which notable results have been achieved. During the Period, the Services Business of the Group reported revenue of approximately HK$3,738 million, a decline of 5.56% compared to the same period of last financial year. Revenue for the second quarter of the current financial year increased by 5.53% compared to the corresponding period of last financial year. Revenue generated from the financial sector increased by 5.11%, as we continued to roll out core system projects with large banks such as China Development Bank and signed up regional banks such as Jilin Bank, Anhui Rural Credit Union and Shaanxi Rural Credit Union as new customers. Revenue from the government & corporations sector grew by 39.33% as we strengthened relationships with strategic customers such as the State Grid Corporation of China and made progress in the expansion of businesses with the local tax bureaus of Ningbo, Qingdao and Tianjin.
 
During the Period, in persistent efforts to advance business transformation, the Group’s Services Business continued to expand into businesses commanding high values and a high degree of stickiness, such as IT consultancy, industry application software and warranty services, and achieved steady growth in the proportion of pure Software and pure Services businesses. Meanwhile, the Group kept fostering project management capabilities in response to market volatility and changes in customers’ requirements to enhance the controllability of project delivery. The Services Business reported gross profit margin of 15.77% for the first two quarters of the current financial year, which was stable as compared to the same period last year.
 
Distribution Business (primary focus on the SMB & Consumer Markets, engaging in the distribution of general IT products such as notebook computers, desktop computers, peripherals, accessories and consumer IT products)
The IT Consumer Market remained in doldrums in the second quarter,marked by a further dwindled market for PC notebooks amid the accelerated transformation in the product profile. Affected by this development, revenue from the Distribution Business of the Group for the first half of the financial year amounted to approximately HK$17,218 million, representing a decrease by 11.91% as compared to the corresponding period of last financial year. Revenue from the notebook business (excluding CES channel) decreased by 19.31% as compared to the corresponding period of last financial year. Overall gross profit margin of the Distribution Business was lower as compared to the corresponding period of last financial year following proactive adjustment of the CES business. Gross profit margin declined to 2.03% in aggregate for the first half of the current financial year.
 
During the Period, the Group proactively reinforced its business structure adjustments. While securing our existing market shares in traditional products, we increased our efforts in the development of mobile device business and achieved breakthroughs in such emerging business sectors. Significant growth was reported for the sales of Microsoft’s Surface Tablet and Apple products, contributing to an 85% year-on-year growth in the sales of our mobile device business (excluding CES sales) in the second quarter. Meanwhile, the Group was also identifying opportunities in the market of Taobao e-commerce customers, in addition to ongoing progress in e-commerce coverage and continuouse enhancement in strategic cooperation with core e-commerce customers.
 
Systems Business (primary focus on the Enterprise Market, offering value-added distribution of systems products such as servers, networking products, storage products and packaged software)
With the beginning of the 2013/14 financial year, the domestic Enterprise Market for IT infrastructure facilities continued to decline. The rise of domestic brands threatened the existing market profile, for which major international vendors reported slower or even negative growth. Affected by such factors, the Group’s Systems Business reported revenue of approximately HK$12,015 million for the six months ended 30 September 2013, a 10.00% decline as compared to the corresponding period of last financial year. Gross profit margin of the Systems Business was lower owing to escalating market competition, decreasing to 8.07% for the second quarter.
 
In response to complicated market conditions, the Group’s Systems Business assured its leadership in market shares for core product lines thanks to persistent efforts in market-share management. In the meantime, the Group continued to enhance its expansion into the package software and domestic brands. In the second quarter, revenue from package software recorded a growth of 18% as compared to the corresponding period of last financial year. Rapid growth was also reported for our business in domestic brands, as represented by Huawei. Sales of Huawei products have increased by 33% in the second quarter as compared to the corresponding period of last financial year.
 
Supply Chain Services Business (primary focus on the markets of Hi-tech Industries, Branded e-Commerce Platform Operators and Branded Services Providers, providing “one-stop” consultancy and execution in logistics, business flow, capital flow and information flow)
During the Period, the Group’s Supply Chain Services Business seized opportunities arising from the rapid growth of the market for third-party logistics and made major moves to expand its logistics services business. Breakthroughs were achieved in the communications, automobile accessories and apparels sub-sectors, providing effective support for the substantial revenue growth of the Supply Chain Services Business. During the Period, the Supply Chain Services Business of the Group reported overall revenue of approximately HK$659 million, an increase by 19.85% compared to the same period of last financial year.
 
Our Supply Chain Services Business reported improvements in operating efficiency and business deployment as it continued to enhance its capabilities in warehousing, transportation, delivery and maintenance services. In the logistics business, we won the centralised logistics procurement bid from China Mobile’s terminal company, securing business in 14 provinces including Guangdong and Zhejiang. Our outsourcing business with BYD increased to 60,000 square metres in terms of storage gross floor area and shifts in cities like Shenzhen, Shanghai and Beijing have been completed. In the maintenance business, we started Microsoft Surface tablet maintenance services during the second quarter, while signing up Xiaomi as customer. The maintenance cooperation with Yixun was also established. Meanwhile, our per-store profitability continued to improve with the number of profitable stores growing by 31% as compared to the same period of last financial year.
 
Market Outlook
Mr. Lin Yang, CEO of Digital China, said, “Given the enormous impact on the IT market of worsening macro-economic conditions in 2013, the Group’s operations will continue to be adversely affected as a result. Against such complicated market conditions, we will review market developments and make necessary structural adjustments in line with new market trends and changes to accord with the long-term interests of the Company. At the same time, we will step up with the implementation of Sm@rt City in signed-up cities, while closely monitoring industry developments under the “Guidance for Facilitating the Healthy Development of Smart Cities” jointly prepared by 8 ministries and commissions to seize any opportunities for enriching its service contents that will benefit its overall objective of business transformation. We will also expedite the deployment of its Mobile Internet business and develop businesses with domestic brands in tandem with the changing profiles of the IT market, with the aim of mitigating the impact of market factors in order to assure sound business development and striving to enhance shareholders’ value.”

10/30
2013

Digital China Launches China's First City Public Information Service Platform

Digital China Launches China's First City Public Information Service Platform


(30 October 2013, Hong Kong) Digital China (the “Group”, Stock Code: 00861.HK), the largest integrated IT services provider in China, announces in Beijing that China’s first city public information service platform self-developed by the Group has been successfully launched. As the first core support system for Sm@rt City construction in China, it addresses the needs for current development of China. This human-centric platform ensures domestic cities to sustain healthy growth. It leverages state-of-the-art IT technologies such as Cloud Computing and Big Data to drive system integration and innovation, thereby providing citizens, enterprises and city government with bilateral and multi-directional communication mechanisms and convenient service channels.

It is a pioneering step taken by domestic IT enterprise to protect and improve people's livelihood and bolster the sharing of basic public resources, following the State Council recently issued the guidance to drive IT consumption. This is crucial for the transformation and upgrading of China’s economy.

This public information service platform consists of three parts: integrated service platform for citizens, integrated service platform for enterprises and city management platform. For citizens, it helps to improve and protect people’s livelihood and serve the public. For enterprises, it helps to promote the continuing economic transformation and development, create a favorable operating environment, drive enterprises' innovation, and promote the integration of industrialization, informatization, urbanization and agricultural modernization. For the municipal government, it provides a management platform that support both of daily city operations and emergency command with a primary focus in the areas of environment, transportation, healthcare and education. Moreover, this platform enables themunicipal government to implement scientific policy-making, as it uses Big Data technology to carry out data mining from the city’s complicated IT systems, identify the city’s development patterns and verify the reasonableness and effectiveness of the government’s policies. It provides municipal government a useful tool to drive the city’s sustainable growth.

Mr. Guo Wei, Chairman of Digital China, commented, “While designing this city public information service platform, we took into account the city’s requirements for current and long-term development so that it can achieve sustainable growth in a smart, green and harmonious way. On the one hand, this platform should integrate and create valuable information to promote more convenient social life, to make its economy more prosperous and the society more harmonious. On the other hand, through the information integration and sharing among the municipalgovernment, citizens and enterprises, their roles as information seekers and providers will be changed. With this IT platform, we can help establish an effective communication channel for the creation of a beautiful home for all.”

In 2012, Digital China started to explore the ways to build and operate the city public information service platform and successively launched platforms in Fuzhou, Foshan and Wuhan. In 2013, based on the extensive experiences it gained from the development of Sm@rt City project, Digital China launched the customized public information service platform which meets the unique requirements of domestic cities. This is the first self-developed core support system for Sm@rt City construction in China, which has recently been launched in Zhangjiagang. Its initial results are satisfactory.

10/25
2013

Digital China's IT Logistics Won a Major Logistics Services Contract from China Mobile Terminal Company

10/18
2013

Digital China Signs Strategic Cooperation Framework Agreement With Qingdao Municipal Government Driving the Sm@rt City Development In The City

09/04
2013

Digital China Focuses on Earthquake Emergency System and Bolsters the Construction of Integrated Technology Platform in Xi'an

07/30
2013

Digital China Bolsters Informatization via Citizen's Home in Wuhan Building the Largest Administrati Service Center in China

07/17
2013

Digital China Remains in Top 100 of Fortune China 500 for Four Years in a Row

Digital China Remains in Top 100 of Fortune China 500
for Four Years in a Row



(17 July 2013, Hong Kong) Digital China (the “Group”; Stock Code: 00861.HK) announces that it ranked 83th among the “2013 Fortune China 500” due to its overall competitive strengths. The Group has remained in top 100 of the list for four straight years.

Based on a comprehensive analysis for all Chinese enterprises listed both in China and overseas markets, Fortune China magazine picked corporates according to a wide range of parameters, including their asset size, profitability, growth potential, resources utilization and other financial indicators recorded for the calendar year ended December 2012. During the calendar year of 2012, the Group achieved total revenue of RMB 59.956 billion. It recorded revenue of HK$73.499 billion for the financial year ended 31 March 2013.

As the largest integrated IT services provider in China, Digital China has made continuing breakthroughs in the innovation of IT services and become a driving force behind the technology development in the country. In recognition of its extensive experience and persistent efforts in the development of the Sm@rt City business, the Group has been named one of the “Most Innovative Chinese Companies” by Fortune China for a number of times.

The inclusion of Digital China in top 100 of “Fortune China 500” for four straight years not only highlights the Group's leading position in the IT industry, but also reflects the wide recognition of its significant contributions to China's informatization through the Sm@rt City strategy.

The Group introduced the Sm@rt City strategy in 2010 which is based on “people-oriented” concept. Through various state-of-the-art technologies such as Cloud Computing and Mobile Internet to promote the full integration of government services and information technology, thereby bringing greater convenience and well-being to the public. The Group launched Sm@rt City Citizen Services Platforms in Fuzhou and Foshan, respectively at the end of 2012, marking a great achievement in its development of Sm@rt City business in China. These platforms set a good example for people-oriented livelihood services. Up to date, the Sm@rt City business has been strategically deployed in 69 cities across the nation, and the Group signed strategic cooperation framework agreements with 15 cities. Digital China is now China’s leading “Sm@rt City expert" that boasts a forward-looking theoretical structure and has the largest stock of successful cases. It becomes an engine to drive China's economic transformation.

06/18
2013

Digital China Announces FY2012/13 Annual Results - Achieves Trend-bucking Growth in Overall Turnover and Profit and Makes Breakthroughts in the Sm@rt City Business

04/03
2013

Digital China Signs Strategic Cooperation Agreement with Shenzhen Government to Bolster Shenzhen's Innovative Development and Transformation Upgrade

Digital China Signs Strategic Cooperation Agreement with Shenzhen Government
To Bolster Shenzhen’s Innovative Development and Transformation Upgrade


(3 April, 2013, Hong Kong) Digital China (the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, announced that the Group signed a strategic cooperation agreement with the Shenzhen Government on 30 March. By utilizing their respective advantages, the two parties will work closely to bolster Shenzhen’s innovative development and transformation upgrade as well as accelerate its pace of advancement into an international modern city. Leaders of Shenzhen, such as Mr. Xu Qin, Mayor of Shenzhen, joined by Mr. Guo Wei, Chairman of Board of Directors of Digital China, participated in the signing ceremony.

According to the strategic cooperation agreement, Digital China will bring its integrated advantageous resources to Shenzhen and will offer its entire support for the cluster development of IT industry there. To be specific, Digital China will strengthen the competitive advantages of IT development in Shenzhen by developing five major segments such as investment, international operation, finance, Sm@rt City as well as an IT hub.

Meanwhile, Digital China will leverage on its advantages in respect to Sm@rt City and its experience in building Sm@rt Livelihood projects. It will introduce the world’s leading advanced citizen-card technology and build an integrated citizen-service system which is government-oriented, citizen-centric and features mobile coverage. With the goal of promoting livelihood services in an equal and fair manner and improving innovation in social management, Digital China aims to optimize the industry chain of convenient eCommerce and to set industry standards for urban management system.

“Shenzhen will strive to become a place where the dreams of IT players come true,” Mr. Xu commented, “The cooperation between Shenzhen Government and Digital China is conducive to developing synergies between Digital China’s competitive advantages in informatization and the cluster development effect of the IT industry in Shenzhen, as well as integrating innovation capabilities of the two parties. These will not only bolster Digital China’s goal of becoming a diversified international enterprise with expanded market space, but will also speed up the innovative development of the IT industry and establishment of Sm@rt City in Shenzhen. By vigorously creating an international business setting governed by laws, a low-carbon residential and commercial environment, as well as an integrated and innovative ecosystem, Shenzhen will fully support the development and improvement of innovation-driven enterprises, such as Digital China.”

Mr. Guo Wei, Chairman of Board of Directors of Digital China, said, “Shenzhen is an important high-tech research and development as well as manufacturing base in China. As the country’s leading innovation-oriented city, it plays an essential role in Chinese economic growth. The cooperation between Digital China and Shenzhen achieves a win-win situation for the two parties. By utilizing its integrated advantages in terms of resources and technologies of Sm@rt City, Digital China will fully support the construction and development of informatization in Shenzhen. It also aims to make Shenzhen a leading Sm@rt City in the nation.”

02/26
2013

Digital China Announces FY2012/13 Third Quarterly Results - Reports Growth amidst Headwinds Quarterly Gross Profit Margin Rebounds from 1H levels

Digital China Announces FY2012/13 Third Quarterly Results
Reports Growth amidst Headwinds
Quarterly Gross Profit Margin Rebounds from 1H levels


(26 February 2013, Hong Kong) Digital China, China’s largest integrated IT services provider, today announced the unaudited consolidated third quarter results of the Company and its subsidiaries (collectively the “Group” ; Stock Code: 00861.HK) for the nine months ended 31 December 2012 (the “Period”).

In response to uncertainties and challenges in the macro-environment as well as various market sub-segments in 2012, the Group continued to implement the guiding principle of “prudent progress, streamlined establishment with enhance efficiency and with a focus on Sm@rt City” and was able to report trend-bucking stable growth in revenue and profit amid intense market competition thanks to its comprehensive and balanced business distribution which also enabled stable and healthy development in results under overall macroeconomic weakness. Market share management was enhanced in Distribution Business and Systems Business, while close cooperation with core vendors was maintained to sustain stable market share. Supply Chain Services Business reported improvements in business value thanks to ongoing optimization of its business mix. Our Services Business increased effective coverage of sub-segment industries by increasing the proportion of software and services business. The steady progress of the “Sm@rt City focus” strategy provided an effective driving force for the Group’s transformation to a services-oriented business.

The Group launched the nation’s first integrated citizen services platforms in Fuzhou and Foshan in December of the current financial year with the benefit of its focus and vision in the development of Sm@rt Cities. Meanwhile, the Group was included in “Forbes Asia Fab 50” for the fourth year in a row, reflecting ongoing recognition from the capital


Financial Review

During the Period, the Group recorded turnover of approximately HK$56,674 million, a growth of 6.83% year-over-year. Against the slowdown in market growth, all business units reported stable revenue growth as the Group adopted the approach of “progress subject to stability” and explored the depth of the market to identify new business opportunities by continuously strengthening our ties with vendors and channels / customers. Meanwhile, on the back of ongoing efforts by our business units to optimize their business mixes with a strong focus on gross profit margin improvement, the Group reported gross profit margin of 8.01% for the third quarter of this financial year to reverse the decline in the second quarter. Profit attributable to equity holders of the parent for the nine months ended 31 December 2012 of the current financial year amounted to approximately HK$1,171 million, sustaining a double digit growth of 11.43% as compared to approximately HK$1,051 million for the corresponding period of last financial year. Basic earnings per share amounted to 109.64 HK cents, representing an 11.75% growth compared to 98.11 HK cents for the corresponding period of last financial year.

Management of the Group continued to implement a stringent policy in risk management and control. Key tasks in risk management and cash flow management were effectively implemented with measures to optimise business flows and enhance management of receivables. The Group’s net cash inflow from operating activities amounted to approximately HK$615 million for the nine months ended 31 December 2012. Net cash inflow from operating activities for the third quarter amounted to approximately HK$276 million in sustained positive performance. Meanwhile, in view of the slowdown in revenue growth, the Group further strengthened stringent cost management and control policies formulated at the start of the year, making constant improvements to our resource utilisation efficiency by streamlining our product lines and staff positions. The Group’s operating expense ratio for the nine months ended 31 December 2012 was substantially lower at 5.30% as compared to 5.65% reported for the corresponding period of last financial year with total operating expense achieving zero growth for the year.


Business Review

Services Business (primary focus on the Industry Market, offering IT planning and IT systems consultation, design and implementation of industry application software and solutions, outsourcing of IT system operation and maintenance, as well as products and services in systems integration and maintenance)
During the Period, the Services Business reported turnover of approximately HK$6,755 million, up 30.21% year-over-year. Turnover from the Services Business for the third quarter increased by 68.31% year-over-year, reflecting realisation of deferred customer demand. Management of the Group made proactive adjustments to its business strategies in response to volatility of industry market and succeeded in orchestrating substantial growth for the Services Business as a whole by integrating the Group’s resources and strengthening business development in the government corporation industry and the financial industry to capture opportunities arising in these sub-segments. During the Period, the financial and government corporation sectors reported strong growth rates of 56.97% and 57.37%,respectively.

The Group continued to drive its transformation to a services-oriented business and to enhance the development of pure software and pure services businesses in various industry sub-sectors. Related to the financial industry, a new business model of “Financial Cloud Services” has been widely accepted by the market and customers, as more than 50 township banks have been signed up for the provision of operational services such as core business systems, credit systems and Internet banking systems. Moreover, in addition to ongoing provision of software and services to the State Administration of Taxation, our taxation business continued to sign up new customers including the Shandong Local Taxation Bureau, Ningbo Local Taxation Bureau, and Hainan Local Taxation Bureau. Breakthroughs in tax payment services have also been achieved with the successful implementation of online tax payment at Guizhou Local Taxation Bureau, Guizhou Bureau of the State Administration of Taxation, Shaanxi Bureau of the State Administration of Taxation, Gansu Bureau of the State Administration of Taxation and Anhui Local Taxation Bureau.

With the benefit of its focus and vision in the development of the Sm@rt City, the Group launched the nation’s first integrated citizen services platforms in Fuzhou and Foshan on a pilot basis in December 2012. The platforms marked a change of the role of the Group in its Sm@rt City business from a solution provider to an operational services provider, and further reinforced its position as an expert in Sm@rt City. For the nine months ended 31 December 2012, the Sm@rt City business operated in 69 cities across the nation and the contracts signed for solutions and projects increased by 41%, with solutions being implemented in numerous cities across nation. Following the growing maturity and successful implementation in various cities of the citizen card project and meat and vegetable source system, data application solutions were also implemented in Wuhan, Lanzhou and Xinjiang, while cloud computing solutions were successfully implemented in Lanzhou and Zhangjiagang, with exponential growth in contract amount signed.

Distribution Business (primary focus on the SMB & Consumer Markets, engaging in the distribution of general IT products such as notebook computers, desktop computers, peripherals, accessories and consumer IT products)
There was a notable decline in the businesses of our principal products of notebook computers and peripherals in 2012 as the impact of the macroeconomic slowdown became evident on demand in the IT consumer market. The effect of new products and technologies launched in the third quarter of the financial year as a driving force for the consumer market has yet to be recognized. During the Period, the Group was increasingly concerned with stable and healthy business development, as it resolutely strengthened the implementation of its business strategy of “streamlined establishment with enhanced efficiency.” Through stringent management over the input of business resources and corresponding output, proactive measures were taken to streamline and cut back product lines with low output, while continued efforts were made to enhance in-depth cooperation with vendor-ends and the channel-ends. These efforts have resulted in the retention of stable market share. During the Period, the Group’s Distribution Business reported turnover of approximately HK$28,445 million, a slight decrease compared to the corresponding period of last financial year. Gross profit margin for the third quarter improved significantly subsequent to a temporary decline in the second quarter owing to stock clearance measures to avert potential business risks.

During the Period, the Group’s coverage of CES and e-commerce channels was enhanced by further breakdown of channels and close monitoring of changes and development in retail formats. The Group continued to enhance cooperation with large-scale retail hypermarkets. In particular, we have strengthened cooperation with Gome and Walmart in connection with Apple products. During the Period, CES business reported rapid growth of 45.63% year-over-year. In connection with e-commerce, the Group strengthened strategic cooperation with core customers such as 360buy, 51buy and Suning, etc to leverage growth opportunities in the e-commerce industry and sustain rapid growth for e-commerce business, so that it will provide another important source of revenue in addition to the traditional IT product channel and CES channel.

Systems Business (primary focus on the Enterprise Market, offering value-added distribution of systems products such as servers, networking products, storage products and packaged software)
The Systems Business of the Group effectively capitalised on opportunities arising from market growth in the first half of the year and reported significant growth. During the Period, turnover amounted to approximately HK$20,620 million, up 13.48% year-over-year, while gross profit margin also increased by 53 basis points to 9.19%, offering effective support to the achievement of the Group’s overall results. While demand in the Enterprise Market was affected by the growth slowdown of macro-economy in the third quarter of this financial year, profit growth for our Systems Business remained robust thanks to our efforts to increase our quarterly gross profit margin and stringent internal management control.

During the Period, The Group’s Systems Business worked closely with key vendors. Through effective market share management, cooperation in existing businesses was fortified to secure stability and growth in market share for major areas. Moreover, we also worked with key vendors to monitor developments in novel areas such as cloud computing and big data, commencing strategic cooperation with leading players in cloud computing such as Cisco, Oracle and IBM, etc in a joint effort to plan for cloud computing data centre solutions as well as industry systems solutions for the telecommunications, financial and government sectors, etc.

Supply Chain Services Business (primary focus on the markets of Hi-tech Industries, Branded e-Commerce Platform Operators and Branded Service Providers, providing “one-stop” supply chain consultancy and execution in logistics, business flow, capital flow and information flow)
The Group’s Supply Chain Services Business took the initiative to adjust businesses commanding lower gross profit as part of its ongoing efforts to optimise our business mix and improve business distribution. Through persistent monitoring and in-depth analysis, new business development endeavours were made in the logistics segment in relation to industrial sectors, while the proportion of the services business increased in relation to the service station segment. Such efforts drove ongoing growth in the overall profitability of the Supply Chain Services Business. Our Supply Chain Services Business reported turnover of approximately HK$854 million for the nine months ended 31 December 2012. Gross profit margin increased by 145 basis points to 20.72%, as compared to the corresponding period of last financial year. The logistics business reported overall revenue of approximately HK$328 million, sustaining rapid growth with a 57.90% increase year-over-year. Services station business continued to optimise business mix and strengthen station management to enhance profitability through servicing ability. The Group sustained healthy growth in revenue from the services station business and the gross margin of services station business was 624 basis points higher as compared to the corresponding period of last financial year.

Market Outlook

In 2012, the economy embraced a cycle of sluggish growth. Since the beginning of the fourth quarter, there has been increasing volatility and challenges in the sub-segment markets. More adverse conditions are expected overall as there are few signs of recovery in the consumer market, while the Enterprise Market is also facing a slowdown. In terms of general strategy for the final quarter of the current financial year, the Group management will continue to implement the guiding principle of ‘prudent progress, streamlined establishment with enhanced efficiency and with a focus on Sm@rt City’ proposed at the start of the year, and will also closely monitor market changes, remain flexible and respond resolutely. In terms of business strategy, management will reinforce its existing business foundation through market share management, customer planning and increased efforts to develop new industries and customers for new business growth niches. In terms of the Sm@rt City business, we will continue to implement the trial operation of integrated citizen services platforms and actively investigate operating models for the Sm@rt City, while enhancing our marketing efforts for Sm@rt City solutions. In connection with management and control strategy, the Company will continue to strengthen management of risk management and operating cash flows to assure healthy and stable business growth. Management will endeavour to overcome unfavourable factors for business operation in the fourth quarter, striving to accomplish business targets and to continue delivery of value to shareholders.

02/21
2013

Digital China Received Another Award from The Asset in 2012: - China's Most Promising Company -

Digital China Received Another Award from The Asset in 2012:
 - China's Most Promising Company -

 

12/28
2012

Clients Expanding to Small and Medium-Sized Banks from Township Banks Digital China Signs Financial Cloud Services Contracts with almost 80 Banks

Clients Expanding to Small and Medium-Sized Banks
from Township Banks
Digital China Signs Financial Cloud Services Contracts with almost 80 Banks


(28 December 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, announced that the Group recorded continued success in signing contracts with banks in Chongqing, Haikou, Shanghai and other cities, to undertake installation and maintenance of core banking system. This showcases Digital China’s robust IT servicing capabilities and that its Financial Cloud Services model has been well recognized by the market and clients, paving a solid foundation for future contracts and projects.

The Financial Cloud Services are high-end professional IT outsourcing services that Digital China develops for small and medium-sized banks. It serves as the technology department that fully supports the bank’s business, including IT systems deployment, installation, launch and upgrade, ensuring fulfillment of requirements and compliance management in building server rooms as well as IT systems 7 days 24 hours daily maintenance. Digital China is also able to provide IT system operation services in a number of areas, such as core banking business, bank cards, bills, online banking, financing as well as telephone banking, message platform, call center, etc. In addition, based on clients’ requirements, the Financial Cloud Services can also cover debit card outsourcing services, data center hosting and disaster recovery services as well as IT operation and maintenance management consulting.

The Financial Cloud Services model sets high prerequisites for IT services providers in terms of scale, corporate credibility, industry experience, successful cases as well as management standards. With its superior comprehensive advantages, Digital China is the only IT company in China with capabilities to fully support the banks’ holistic IT systems in such an emerging IT operation outsourcing market. Its Financial Cloud Center has become the largest Financial Cloud service platform in China. It recently signed cooperation contracts with Chongqing Liangping ANZ Rural Bank, Haikou United Rural Commercial Bank, 14 township banks arising from Shanghai Rural Commercial Bank as well as Ruzhou Yuchuan Rural Bank, to undertake installation and maintenance of core banking systems. Targeting township banks when this business started, Digital China grew its clientele and successfully explored small and medium-sized banks, such as rural commercial banks. To date, it has close to 80 Financial Cloud Services clients.

Mr. Lin Yang, CEO of Digital China, said, “The Group has 26 years of experience in IT development for the banking sector and has thus gained extensive experience in the field. With global knowledge and a thorough understanding of domestic market, we possess unparalleled advantages. We have a high-standard data center in Xi’an with a professional IT outsourcing management system. Moreover, the Group implemented a clear strategy for the development of Financial Cloud Services. Going forward, we will  further enhance our IT service platform and business model, thereby promoting the robust growth of small and medium-sized banks in China.”

12/20
2012

Foshan Launches "Citizen Services Platform" Digital China Achieves New Sm@rt City Development

Foshan Launches “Citizen Services Platform”
Digital China Achieves New Sm@rt City Development


(20 December 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, announced the launch of a Sm@rt City Citizen Services Platform in Foshan today, following the launch of this self-developed platform in Fuzhou early December. It is a solid step in achieving the goal for improving livelihood and strengthening the city through a Sm@rt Foshan initiative. The Platform is another innovative initiative taken by the municipal government to create a convenient, favorable and beneficial environment for its citizens who can enjoy enhanced public services through multi-channels from the government.

Adhered to the citizen-oriented concept, the Foshan Citizen Services Platform is based on a reliable network to provide access for residents in the city to enjoy public services through various channels including computers, mobile phones and public hotlines, thus ensuring the city government’s delivery of services to the people in a fair and equitable manner.

Starting from now, citizens in Foshan can dial the hotline 40009-12980, log in Foshan citizen website (http://foshan.smartcity.cn), download Apps onto their mobile devices or visit designated community service centres to enjoy convenience and efficiency brought by the Foshan Citizen Services Platform. The citizen not only paying their utility bills, checking their social insurance and provident fund accounts, but also making online data submissions and applications relating to 307 personal public services under 24 major categories and be kept real time update of the processing progress. Moreover, they can enquire about public service information, navigate services and interact with officers through the platform. Enquiries on illegal actions and appointments with doctors and domestic helpers will also be available by the end of 2012.

Mr. Guo Wei, Chairman of Digital China, said, “As an economic heartland of the Pearl River Delta, Foshan is an important base for the implementation of the Group's Sm@rt City strategy. We signed a strategic cooperation agreement with the Foshan government since March 2012 and will lend full support toward IT development of Sm@rt City in Foshan. Our strategic corporation covers a wide range of areas including intelligent transportation, the Internet of Things and cloud computing, which will further promote the informatization of urban management and social services in Foshan. We will fully exert the leading role of Foshan in China’s Sm@rt City Development to drive its economic, social and environmental transformation, accelerate Foshan’s IT infrastructure to support Sm@rt City development and propel rapid economic growth."

12/13
2012

Digital China Named as Gold Award Winner of The Asset’s Corporate Awards 2012

Digital China Named as
Gold Award Winner of The Asset’s Corporate Awards 2012


(13 December 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, announced that it won the Gold Award of the Corporate Awards 2012 from The Asset magazine for its excellence in management and corporate governance. This is the third consecutive year that the Group received this globally recognized award from The Asset after being named as one of China’s Most Promising Companies in 2009.

The Corporate Awards by The Asset magazine set strict selection criteria for listed companies in different regions. The judging panel evaluated the candidate companies based on their performance in five areas including financial performance, corporate governance, investor relations, social responsibility and environmental responsibility. Digital China received very high recognition in all five categories and was granted the Gold Award for its excellence in management and corporate governance. This demonstrates that the Group achieved all-around development in all aspects. The award was in recognition of the Group’s future strategy, development planning, existing model and high transparency of corporate governance.

Mr Guo Wei, Chairman of Digital China, said, “It is our great honour to be awarded by The Asset magazine for the third consecutive year. This not only indicates international recognition for Digital China’s continuous contribution to China’s IT industry, but also reflects international investors’ confidence in our Sm@rt City-focused operating approach and proactive customer development plans. In investor relations, we will remain our proactive approach and continue to strengthen communications with investors to keep improving our transparency of corporate governance. We will continue to strengthen risk controls, operating cash flow management and reforms of internal administrative structure, optimise staff efficiency and enhance organisational effectiveness, with a view of accomplishing business targets for greater shareholders’ value.”

On 20 November 2012, the Group announced its interim results. For the six months ended 30 September 2012, the Group recorded turnover of HK$37,404 million, up 9.57% year-on-year as compared to HK$34,138 million for the corresponding period of last fiscal year. Turnover for the second quarter alone amounted to approximately HK$19,627 million, a record high for quarterly results. Profit attributable to equity holders of the parent amounted to HK$741 million, up 11.39% as compared to HK$665 million for the corresponding period of last fiscal year.

12/06
2012

Digital China Bolsters Sm@rt City Citizen Integrated Platform Development in Fuzhou With the Launch of the First “Citizen Services Platform” in China

Digital China Bolsters Sm@rt City Citizen Integrated Platform Development in Fuzhou
With the Launch of the First “Citizen Services Platform” in China


(6 December 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, today announced the launch of Fuzhou Sm@rt City Citizen Integrated Platform, the first “Citizen Services Platform” in China designed and developed by the Group. Vice Minister of the Ministry of Science and Technology Mr. Zhang Laiwu, Secretary of the CPC Fuzhou Municipal Committee Mr. Yang Yue and Mayor of Fuzhou Mr. Yang Yimin, along with other government officials, academicians from the Chinese Academy of Sciences and the Chinese Academy of Engineering, national-level IT experts, Chairman of Digital China Mr. Guo Wei, CEO of Digital China Mr. Lin Yang as well as leaders of the world's top 500 IT enterprises and elites in domestic Sm@rt City sector attended the forum.

The launch of the Citizen Integrated Platform in Fuzhou is in-line with the government’s call for the convergence of “Industrialization”, “Urbanization” and “Informatization” under its “Twelfth Five-year Plan” and the government’s initiative put forth in the 18th National Congress of the CPC to promote livelihood projects. It provides a customized platform to citizens to enjoy integrated services. According to people’s daily needs, they are categorized into four types of services: “My Living”, “My Government”, “My Payments” and “My Voice”. Equipped with state-of-the-art IT technology including cloud computing, mobile Internet and the Internet of Things, this platform is able to self-upgrade its technology and services. Through informatization and data mining, it helps optimize resources allocation in the city, meanwhile allows most residents to enjoy social services in an equal and fair manner, thus easing livelihood issues in China.

Mr. Chen Daqiang, Vice Mayor of Fuzhou, said “Fuzhou Citizen Services Platform is the first citizen services platform in China. Its launch marks a significant step of Fuzhou City to innovate its social management. The Fuzhou Government always attaches great importance to the informatization of citizen services in the city. During the process of creating a Digital Fujian, China Fuzhou Portal and the platforms of administrative information and authorities were all put online. Fuzhou Citizen Services Platform will integrate with the Convenient Service hotline 12345, which was opened in 2008. As our professional and reliable partner, Digital China has strong skills in resources integration and advanced management experiences, which will effectively promote the innovation of Fuzhou’s urban management system with the integration effect of Fuzhou citizen services platform, thereby driving the information construction in Fuzhou and supporting it to fully promote the Sm@rt City construction.”

“All those who can speak can freely enjoy citizen services,” Mr. Guo Wei, Chairman of Digital China, said. “As the leading integrated IT services provider in China, we offer comprehensive Sm@rt City services to Fuzhou City, ranging from top-level consultation and planning, development of IT infrastructure to the operation services of Sm@rt City. We have helped Fuzhou evolve into a model city boasting itself with people-driven social services during a smart city boom. An uninterrupted two-way, multi-channel communication mechanism has been successfully established, allowing the government, enterprises and residents freely exchange views on a fair platform. It forms a foundation for the development of a wonderful city and interest community. Moreover, the successful launch of this platform marks another achievement made by Digital China in pursuing Sm@rt City strategy. Going forward, we will continue to push ahead with this strategy, thereby contributing our efforts to the livelihood projects and urbanization process in China.”

11/20
2012

Digital China Announces FY2012/13 Interim Results, Top Line and Bottom Line Achieved Stable Growth amidst Headwinds

10/09
2012

Digital China Named Exclusive Distributor of CISCO's New Products - Facilitates CISCO's "China for China" Strategy - The Group Continued to Receive the Greater China Best General Distribution Agent Award

09/13
2012

Digital China Named One of Forbes Asia's Fab 50 for Fourth Consecutive Year Up 3 Spots from Last Year Amid Volatile Markets

Digital China Named One of Forbes Asia's Fab 50 for Fourth Consecutive Year Up 3 Spots from Last Year Amid Volatile Markets

09/06
2012

Digital China's IT Logistics Technology Service Center with Apple's Authorization Grandly Opens, Providing Customers with Professional Maintenance Services with "Innovative Experience, Dedicated Attitude"

Digital China’s IT Logistics Technology Service Center with
Apple’s Authorization Grandly Opens
Providing Customers with Professional Maintenance Services with "Innovative
Experience, Dedicated Attitude"


(6 September 2012, Hong Kong) Digital China Holdings Limited (“Digital Chi na” or the “Group”; Stock Code: 00861.HK), a leading integrated IT services provider in China, is pleased to announce that the Group’s Supply Chain business has entered into the cooperation with Apple Inc., to open “IT Logistics Technology Service Centre”. The store is located in Beijing’s Dongcheng District and becoming popular among Apple fans. The cooperation marked a milestone between the Group and Apple Inc., for further engagement in service business.


IT Logistics Technical Service Centre not only provides maintenance services to Apple users, but also incorporates warehouse management system, as well as a customer training centre and a software applications interactive zone. It meets the strict requirements of Apple’s Certification Scheme for Authori zed Service Provider in various fields including business reputation, service experience, technical knowhow, staff training, management mechanism and corporate culture, thereby ensuring iPhone, iPad, Mac and iPod users to enjoy professional, standardized and efficient maintenance services. Meanwhile, the establishment of the customer training centre and the software applications interactive zone enable customers to receive customized one-to-one guidance from specialists trained and accredited by Apple on personalizing the settings of Apple products and learn to use a variety of applications. Customers can also get access to various free technical support and specialist advisory services. The centre will organize regular gatherings for Apple users in order to build a communication and learning platform for them. Looking ahead, the service centre wi ll offer more learning opportunities for the professional users, such as organizing lectures specializing on software for professional photographers, filmmakers and musicians. The service centre is dedicated to maximize the users’ experience.


Mr. Lin Yang, the CEO of Digital Chi na, said, “The opening of IT Logistics Technology Service Centre with Apple’s authorization marks a great stride for the cooperation between Digital China and Apple Inc. in the service business. We wi ll seize the opportunities arising from the sale of Apple products and forge a closer relationship with Apple Inc. With an emphasis on ‘innovative experience, dedicated attitude’, we are determined to offer Apple users exceptional and professional maintenance and services.”

08/28
2012

Digital China Announces FY2012/13 First Quarterly Results Achieved Progress in a Prudent Manner amidst Volatile Market with Double-digit Growths for Top Line and Bottom Line

Digital China Announces FY2012/13 First Quarterly Results
Achieved Progress in a Prudent Manner amidst Volatile Market
with Double-digit Growths for Top Line and Bottom Line


 (28 August 2012, Hong Kong) Digital China Holdings Limited (“Digital China”; Stock Code: 00861.HK), China’s largest integrated IT services provider, today announced the unaudited consolidated first quarterly results of the Company and its subsidiaries (collectively the “Group”) for the three months ended 30 June 2012 (the “Period”).

At the beginning of fiscal year 2012/13, the Group management calls for “prudent progress, streamlined establishment with enhanced efficiency, and with a focus on Sm@rt City” as the guiding principle of the Group’s business operation. In line with this principle, the Group completed an organizational restructuring that led to more focused business units. In the Distribution Business, full coverage of business formats was implemented for traditional channels, chain electronic stores (“CES”) and e-commerce. In the Systems Business, we capitalized on demand from corporate customers arising from cloud computing applications. Benefiting from the Sm@rt City strategy, the Services Business and Supply Chain Services Business continued to achieve business value enhancement, contributing to a balanced portfolio that allowed strong risk resistance against a volatile market. Meanwhile, for the first quarter, the Group achieved a stable revenue growth as well as a higher profit growth rate as compared to the growth in revenue, by adopting stringent cost and risk controls.

Financial Review

During the Period, the Group recorded turnover of approximately HK$17,777 million, a growth of 10.84% as compared to approximately HK$16,038 million for the corresponding period of last fiscal year. The Group’s gross profit for the Period was up 9.54% year-on-year to approximately HK$1,341 million and its gross profit margin was maintaining at a stable level of 7.54%. In view of the increasingly difficult economic environment, the Group will introduce more cost management and control measures in more specific terms with enhanced execution. During the Period, the overall expense ratio was 4.90%, a decline from 5.37% for the corresponding period of last fiscal year. Profit attributable to equity holders of the parent for the Period amounted to approximately HK$401 million, an increase of 12.16% as compared to HK$357 million for the corresponding period of last fiscal year. Basic earnings per share amounted to 37.52 HK cents, 13.35% higher as compared to 33.10 HK cents for the corresponding period of last fiscal year.

Risk control measures have been implemented in a more rigorous manner since the beginning of the fiscal year, with a tighter grip over cash flows. Despite the complicated operating environment, the Group recorded sound cash flow performance by streamlining internal processes and enhancing receivables collection. Against the backdrop of tight liquidity in the market, our net cash inflow from operating activities amounted to approximately HK$132 million for the three months ended 30 June 2012, providing a strong backing for sustained healthy and stable growth of the Group’s businesses. While assuring sound cash flow, we also maintained our operating efficiency at the industry’s top level, as represented by a cash turnover of 15.02 days for the first quarter.

Business Review

Services Business (primary focus on the Industry Market, offering IT planning and IT systems consultation, design and implementation of industry application software and solutions, outsourcing of IT system operation and maintenance, as well as products and services in systems integration and maintenance)
During the Period, the Group reported turnover of approximately HK$2,122 million for the Services Business, a growth of 18.58% as compared to approximately HK$1,790 million for the corresponding period of last fiscal year while the gross profit margin remained at 16.87%. The growth in profitability resulted from new inroads in financial and government corporation sectors, as well as the strides in business transformation. The financial and government corporation sectors reported robust growth in revenue of 89.51% and 67.56%, respectively.

Our Services Business continued to optimize its structure during the first quarter and further enhanced its business value through ongoing development of proprietary services, software and operational services. In the financial sector, we signed cooperation agreements for core banking systems with two new customers - Bank of Qinghai and Bank of Cangzhou, and old customers such as Jinshang Bank, Jiangsu Changjiang Commercial Bank, Qilu Bank, etc. We achieved business growth over 100% with joint-stock commercial banks and regional banks. Meanwhile, we also reported rapid growth in our “Financial Cloud Service” and achieved progress in business model innovation, through providing services for core-banking, payments, debit cards, international settlement, online banking and credit management for more than 30 township banks and other financial institutions. In the government sector, we signed up taxation service projects with the local tax bureaus of Hainan and Shenzhen. In the telecommunications sector, we received orders from China Unicom’s Shanghai branch, China Mobile’s Shenzhen and Inner Mongolia branches for our proprietary services.

The Group’s business transformation was greatly driven by the consistent exploration of software and services businesses. The Group successfully expanded its Sm@rt City business all over the nation, with key solutions being implemented in a number of cities. The “Meat and Vegetable Source Tracking System” implemented in Suzhou last year was successfully replicated in Wujiang and Taicang during the Period. Moreover, the Group also signed up for software supply and services at Nanjing Sm@rt City Experience Centre and Qilin Eco-Technology City Planning and Demonstration Centre, and the “Citizen’s Home” project of Wuhan and the Citizen Card project of Shunde, Foshan during the Period.

These projects guaranteed steady progress of the Sm@rt City strategy for the Group.
Distribution Business (primary focus on the SMB & Consumer Markets, engaging in the distribution of general IT products such as notebook computers, desktop computers, peripherals, accessories and consumer IT products)
Despite a notable slowdown in the overall demand from the consumer market since the beginning of this quarter, the Group’s Distribution Business focused on market share management. It reported turnover of approximately HK$8,805 million during the Period, relatively the same level as compared to the corresponding period of last fiscal year. Despite a slight decline in turnover from the notebook computers business, our e-commerce business still achieved substantial growth, by leveraging on the Group’s refined channel development strategy in response to changes in business model of the retail business, and by enhancing cooperation with e-commerce and CES on the back of a rich variety of specialty products and consultancy services. In addition to effective risk controls, ongoing collaboration with Apple and proactive development of regional stores, the CES business achieved a stable revenue growth of 14.74% amidst a difficult market environment. Benefiting from close cooperation with manufacturers as well as stronger capability for channel building, the Group reported rapid growth in certain new accessory product lines, such as hard disk, monitors, etc., which contributed to a year-on-year turnover growth of 34.54% for the accessories sub-segment. In particular, the introduction of high-end products from existing branded partners has contributed to obvious gross margin improvement. Meanwhile, our business in relation to mobile internet recorded steady growth, as the Group continued to monitor developments in the mobile internet market and planned our marketing with the focus on mobile devices.

Systems Business (primary focus on the Enterprise Market, offering value-added distribution of systems products such as servers, networking products, storage products and packaged software)
During the Period, as the Group capitalized on cloud computing requirements from enterprises, the Systems Business outgrew vendors on all fronts and reported a turnover of approximately HK$6,597 million, an increase of 27.70% year-on-year, providing strong support for the achievement of the Group’s overall results for the first quarter of the fiscal year. The Systems Business reported strong growth in its principal product lines thanks to effective market share management. Our storage business reported a strong year-on-year growth of 52.48% in revenue together with sound growth in gross profit margin for the first quarter, as it seized opportunities presented by virtualization requirements from enterprise customers. Our servers business also reported a 30.21% growth year-on-year in revenue for the first quarter on the back of enhanced strategic cooperation with core vendors. Turnover from the networking products business and the packaged software business increased year-on-year by 26.39% and 38.34% respectively, as our effective coverage of industries and regions drove rapid growth of these sub-segments. Meanwhile, the Group’s Systems Business facilitated broader and deeper cooperation with channels by strengthening regional coverage. In the meantime, the Group promoted bundled product portfolio to our channels on the back of our rich product resources and effectively enhanced the adhesion of channels by providing relevant technical support.

Supply Chain Services Business (primary focus on the markets of Hi-tech Industries, Branded e-Commerce Platform Operators and Branded Service Providers, providing “one-stop” supply chain consultancy and execution in logistics, business flow, capital flow and information flow)
During the Period, the Group increased efforts to streamline its Supply Chain Services Business and it reported turnover of approximately HK$252 million and gross profit margin of 21.14%, an increase of 6.84 percentage points, as compared to 14.30% for the corresponding period of last fiscal year. By positioning its core operation as the logistics business, the Group took advantage of the continued growth of the logistics market by enhancing its core capabilities in storage, transportation and delivery as well as customer satisfaction. The B2C e-commerce storage service business set up during last fiscal year has become a major contributor to the revenue growth. Furthermore, there was a notable increase in the business volume of our out-of-warranty service, as our service station business endeavored to strengthen satisfaction with manufacturers and customers, as well as to optimize product and service structures. While seeking to maintain stable revenue growth, the service station business also started to shift its focus to SMB customers, with a view to building for future profit growth.

Market Outlook

Mr. Lin Yang, CEO of Digital China, commented, “2012/13 fiscal year will be a challenging year. Given the intricate conditions of the overall IT market in the current fiscal year, the management will act in resolute accordance with the guiding principle of ‘prudent progress with a focus on Sm@rt City’. We will continue to invest in the research and development of Sm@rt City to further fortify our market leadership in China’s Sm@rt City development. In view of weak sentiments in the market for retail customers, the Company will enhance management and exercise stringent risk control, striving to outperform the industry with a streamlined establishment and better efficiency; in the corporate market, which is a traditional stronghold for Digital China, we will seize the growth opportunities through effective sales and marketing management and close strategic cooperation with leading international manufacturers such as IBM and CISCO. We will put more emphasis on positive operating cash flow, stringent risk control and efficient staff establishment as it continues to closely monitor changes in the macro-economy and the IT market, so as to ensure the accomplishment of various business targets for greater shareholders’ value”

 

08/21
2012

Digital China Wins the Bid for New Generation Core Banking System Project for Bank of Qinghai - Lays a Solid Foundation for its Development into the Northwest Market

Digital China Wins the Bid for
New Generation Core Banking System Project for Bank of Qinghai

Lays a Solid Foundation for its Development into the Northwest Market


(21 August 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, is pleased to announce that the Group won the bid for the new generation core banking system project for the Bank of Qinghai (“the Bank”). This laid a solid foundation for the Group to further penetrate the Northwest market in the future.

Since the project is one of the major focuses of the 12th Five-Year Plan of the Bank, the Group accurately grasped its needs and came up with a feasible proposal. Leveraging on the Group’s product advantages, strong implementation capability as well as its sophisticated and practical approaches, the proposal was eventually approved by the Bank. The new generation core banking system that will be built by the Group for the Bank reflects the “customer-oriented” and “product-focused” concepts. In addition, it completely fulfills the requirements to support interest rate liberalization reform and new accounting principle application. By adopting various technologies such as parameterization and modularization, the system helps the Bank to develop new financial products efficiently. The new system will provide technical support for business process restructuring and centralized business processing for back offices. In addition, it will feed fundamental information to the management system and enhance its management efficiency and core competitiveness of the Bank. Upon completion, the system will provide the Bank with a more reasonable, practical and prospective IT infrastructure, thus greatly boost the flexibility and scalability of its information system and raise its core applications to a leading standard among domestic commercial banks.

Mr. Lin Yang, CEO of Digital China, commented, “With an unparalleled competitive advantages and a leading position in building core banking system, we are one of the best service providers in the sector that can handle multiple projects and accumulate over ten successful cases such as China Development Bank, Shenzhen Rural Commercial Bank, Bank of Chengdu and the one we just won earlier - Bank of Cangzhou. The cooperation with the Bank of Qinghai had laid a solid foundation for the Group to further explore the Northwest market. We will continue to exert our unique competitive advantages and provide the Bank of Qinghai with an advanced and competitive core system that fully supports its current business operation and development in the future.”

08/09
2012

Digital China Enters Another Partnership with Bank of Cangzhou Sings Agreement for the "Core Business System"

08/07
2012

Digital China Bolsters "Sm@rt City" Development with the Launch of a One-stop Service Portal Platform - “Sm@rt Jiangsu”

Digital China Bolsters "Sm@rt City" Development with the Launch of a
One-stop Service Portal Platform - “Sm@rt Jiangsu”


(7 August 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider is pleased to announce that China's first Sm@rt City provincial integrated access platform built by the Group, “Sm@rt Jiangsu” portal platform, was successfully launched and commenced operation on 23 July 2012. This marked a solid step for Digital China in providing China’s Sm@rt City online services.


The “Sm@rt Jiangsu” portal platform project is organized and led by Jiangsu Economic and Information Technology Commission, undertaken by the Jiangsu Branch of China Telecom and built by Digital China. It is one of the key projects under the Informatization Strategy of the 12th Five-Year plan of the Jiangsu Provincial Government. Digital China designed a service platform covering 1 main provincial portal, 13 sub-portals at municipal level and individual county (including city and district). The “Sm@rt Jiangsu” portal platform comprises of seven major themes including “Sm@rt Government”, “Sm@rt People”, “Sm@rt Life”, “Sm@rt Enterprise”, “Sm@rt Community” and “Sm@rt Olympics”. With a province-wide coverage, the platform provides services to every resident in urban as well as rural areas. The platform supports Android and IOS systems on PC, tablets, smart phones and a variety of other terminal accesses. Everyone can now enjoy convenient information access anytime and anywhere through this platform.


Mr. Lin Yang, CEO of Digital China commented, “‘Sm@rt Jiangsu’ is another key success outlining Digital China’s ‘Sm@rt City’ strategy. Through this portal platform, the urban and rural residents of Jiangsu Province can enjoy one-stop services in the aspects of government, economy and people’s livelihood. Pursuant to the launch of the portal platform, Digital China will further drive its ‘Sm@rt City’ strategy, offering full support to Jiangsu Province in carrying out its ‘Sm@rt transformation’ in the areas of government affairs, economy, urban and rural social management and public services.”


The launch of the “Sm@rt Jiangsu” portal has established a national benchmark for the online service of Digital China’s Sm@rt City strategy. Leveraging on the wealth of expertise and rich experience over the years, Digital China advocated the strategy in 2010, starting from overall planning and design, with the goal to provide a comprehensive infrastructure for Sm@rt City operations. For more information on the “Sm@rt Jiangsu” portal platform, please visit http://www.smartjs.cn/.

07/20
2012

Digital China ranked top 100 in Fortune China 500 for three straight years

Digital China ranked top 100 in Fortune China 500 for three straight years


(20 July 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK) ranked top 100 among “Fortune China 500” for three straight years and remained the leader in the category of IT services companies. With revenue of RMB 54.699 billion*, the Group was chosen as one of “Fortune China 500” in 2012.

*Note: Fortune China compiled the figure based on the revenue recorded for the calendar year ended December 2011, while Digital China has announced its annual results with revenue of HK$70.319 billion for the fiscal year dated from 1 April 2011 to 31 March 2012.

Fortune China announced the winners of “Fortune China 500” for the third year. Winners are selected from all Chinese companies listed in domestic or overseas markets. Parameters under consideration include their asset size, profitability, growth potential, resources utilization and various financial indicators. Quantitative analysis has been conducted and thus the ranking is authoritative and has high reference value.

As the largest integrated IT services provider in China, Digital China has made various breakthroughs in IT services innovation and become a major player for China's informatization development. Leveraging on various innovative IT means including cloud computing technology, Digital China has rolled out “Sm@rt City” strategy in 2010 and brought about technological integration and innovation, thereby enabling the government bodies to provide customer-driven and convenient public services through information technology. With extensive experience and know-how in the IT sector, Digital China was named one of the “Most Innovative PRC Companies” for the first time in 2011, ranking No.10 among the 25 winners and the only IT services company in the list. The winning of these awards not only symbolizes the Group’s wide recognition for its continuous efforts in innovation and contribution to the informatization development in China, but also implies that its “Sm@rt City” strategy has achieved great success.

06/25
2012

Digital China Received Corporate Governance Asia's "Best of Asia" of Corporate Governance Asia Annual Recognition Awards 2012

Digital China Received Corporate Governance Asia's "Best of Asia" of Corporate Governance Asia Annual Recognition Awards 2012


(25 June 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), a leading integrated IT services provider in China”, was awarded “Best of Asia” of Corporate Governance Asia Annual Recognition Awards 2012 by Corporate Governance Asia.

Mr. Lin Yang, CEO of Digital China, said, “With the belief that good corporate governance is vital to the long-term success of a corporation, Digital China has adhered to high corporate governance practices by implementing the necessary structure and mechanism. Its Board of Directors consists of competent and professional executive and non-executive directors, whose excellent leadership conspires to the success of strategic transition towards IT service and fast growing business of Sm@rt City.”

The Corporate Governance Asia Recognition Awards is organized by Corporate Governance Asia, with aims to foster the corporate governance of Asian companies and to recognize Asian companies that demonstrate excellence in corporate governance with Asian values and spirit.

06/12
2012

Digital China Announced FY2011/12 Annual Results - Fulfilled targets in each segment and consolidated the image of Sm@rt City expert in China

Digital China Announced FY2011/12 Annual Results
Fulfilled targets in each segment and consolidated the image of Sm@rt City expert in China


(12 June 2012, Hong Kong) Digital China Holdings Limited (“Digital China”; Stock Code: 00861.HK), China’s largest integrated IT services provider, today announced the consolidated annual results of the Company and its subsidiaries (collectively the “Group”) for the 12 months ended 31 March 2012 (the “Period”).

Owing to our mature software and servicing capabilities and implementation of the “Sm@rt City” strategy during the financial year under review,Services Business maintained solid turnover growth and ongoing improvements in gross profit margin. Supply Chain Business recorded strong growth underpinned by a dual approach of enhancing cooperation with core CES customers as well as expanding logistics business. Systems Business’s undisputed leadership was maintained in terms of market share, underscoring our prestigious position in value-added distribution. In Distribution Business, we are able to adapt the market demand changes and capture the market favorable factors. Targets were accomplished on the back of the rapid growth in accessories, PC servers and consumer IT products, as we made strong efforts to capitalize on changes in market demands, which also supported the healthy growth of the overall income of the Group.

Financial Review
During the Period, the Group recorded turnover of approximately HK$70,319 million, representing a 23.79% growth as compared to approximately HK$56,804 million for the corresponding period of FY2010/11. The third quarter turnover reached a record high at approximately HK$18,913 million. The Group’s gross profit margin for the annual period was 7.55%, which is 0.66 percentage point higher than 6.89% for the corresponding period of previous financial year. Total gross profit recorded a significant growth of 35.63% to HK$5,306 million. During the Period, profit attributable to equity holders of the parent of the Group was HK$1,245 million, a 23.81% growth as compared to approximately HK$1,005 million for the corresponding period of last financial year. Basic earnings per share amounted to 116.32 HK cents, which was 21% higher as compared to 96.13 HK cents for the corresponding period of last financial year. During the Period, all business segments have beaten expectation and attained their respective performance targets set at the beginning of the year and sustained sound growth momentum that outperformed the market.

A strong net cash inflow from the Group’s operating activities for the year ended 31 March 2012 of approximately HK$473 million provided assurance for the Group’s healthy and stable development. The growth in cash flow contributed by business operations is significant. The stability of the Group’s operations was also underpinned by its cash turnover of 16.99 days for the year ended 31 March 2012, 1.43 days less compared to 18.42 days reported for last financial year.

Business Review

Services Business (primary focus on the provision of industry software, urban information infrastructure and “Sm@rt City” operation services to the Industry Market)
During the Period, the Group reported turnover of approximately HK$7,892 million for its Services Business, a growth of 30.62% as compared to approximately HK$6,042 million for the corresponding period of last financial year. As our software and servicing capabilities grew in sophistication, gross profit margin for the financial year under review reached 16.38%, representing an increase of 0.35 percentage point as compared to last financial year.

Government and banking sectors have a 78.16% and 30.51% growth year-over-year, respectively. These sectors continued to sustain positive growth momentum. In particular, we made solid breakthroughs in the insurance and power sectors, providing support to the overall rapid growth of Services Business. Our application software business has achieved notable results in the development of new customers among regional banks and local taxation authorities business. In the banking sector, business relationships have been established with 15 banks, including China Resources Zhuhai Commercial Bank, Jiangsu Changjiang Commercial Bank and Bank of Xi’an, through the provision of regional core banking solutions. We have also made inroads into the market of local taxation authorities with our third-generation golden tax collection and administration system, signing up the local tax bureaus of Shenzhen, Hainan and Shandong as new customers. Initial results have been achieved in the investigation of new models for the software business, including financial software operation service, with 26 township banks being signed up, and our taxpayer-end service business was established in Hainan. All these are making us the undisputed market leader in this sub-segment. We have devoted major efforts to the development of proprietary brands, while continuing to consolidate our leading edge in the telecommunications, banking and government enterprise sectors, as we secured several multi-million contracts from the State Administration for Industry and Commerce, China Unicom and China Telecom. We gained further inroads in our pursuit of refined management underpinned by the productization and standardization of services, with more specific business and profit models that provided a very solid foundation for massive growth.

During the financial year under review, the Group swiftly completed the tracking coverage of the Sm@rt City target cities, exceeding targets set at the beginning of the year for contract sign-ups and revenue by a significant margin, while overall sign-ups also substantially exceeded our annual targets. More specifically, mature core solutions were replicated in other cities, such as the Citizen Card project in Zhenjiang and Lanzhou, the Citizen Service project in Foshan, and the demonstration center project in Zhenjiang and Guangzhou, for which contracts have been signed for implementation. Meanwhile, significant progress has also been made in strategic solutions, such as the Yangzhou Healthcare Information Platform in the health sector, the Suzhou Meat and Vegetable Source Tracking System in the food and drug sector and relevant projects for Shunde, Zhuzhou, Wuhan and Shenyang in the data exchange sector. These projects signed up and started during the year have not only contributed to improvements in terms of the richness and sophistication of solutions, but also enhanced the overall strengths of the Group as China’s leading solution provider in Sm@rt City.

Supply Chain Services Business (primary focus on the markets of Hi-tech Industries, Branded e-Commerce and Online Service Providers and Platform Operators)
For the year ended 31 March 2012, the Group’s Supply Chain Services Business reported turnover of approximately HK$7,426 million, a growth of 58.48% as compared to the corresponding period of last financial year. The overall gross profit margin for the year for the Supply Chain Services Business was 6.80%, increasing significantly by 1.27 percentage points as compared to last financial year. Cooperation with CES customers underscored Digital China’s effective coverage of multiple business formats. The management team of the Supply Chain Services Business sought to enlarge the scope of cooperation with retail malls, while actively expanded our product exposures by introducing items with strong market recognition and higher gross profit margin, such as the Apple products, as well as various accessories, in order to enhance our business value. During the financial year under review, CES business grew 56.75% as compared to last financial year. Gross profit margin increased significantly by 1.25 percentage points over last financial year.

Driven by the rapid growth in the demand of the logistics market, turnover from the logistics business of the Supply Chain Services Business for the year ended 31 March 2012 has grew 86.25%. In logistics services, we continued to enhance the streamlining and development of the core logistics capabilities of storage, transportation and dispatching. Breakthroughs were being made in third-party logistics in connection with both B2B and B2C e-commerce storage. We have become an important partner of Taobao. Our service station business benefitted from cooperation with key manufacturers of notebooks and desk-tops and the extensive coverage of our service outlets, as business expansion continued in a systematic manner. Thanks to the outstanding performance of our warranty services, gross profit margin of the service station business for the financial year under review increased by 7.19 percentage points over last financial year.

Systems Business (primary focus on the Industry and Enterprise Markets)
Turnover from the Systems Business for the year ended 31 March 2012 grew 26.50%, year-on-year, to approximately HK$17,487 million. The gross profit margin of the Systems Business was at par with last financial year to contribute significantly to the overall profit growth of the Group, notwithstanding the substantial increase in turnover. Gross profit margin for the financial year under review was 9.97%, indicating further consolidation and improvement as compared to 9.74% for last financial year. Driven by the data processing requirements of corporate customers, turnovers for packaged software and storage products for the financial year under review grew 45.34% and 27.42%, respectively, as compared to last financial year. Turnover of networking equipment for the financial year under review grew 31.79% over last financial year, reflecting the benefits of larger shares of the market comprising major vendors and additional business volumes channeled through new partners.

Our Systems Business has strengthened the marketing of compounded products. Rapid year-on-year growth of 42% in the total sales revenue from the three types of solution businesses, namely communications, video conference and data security, was reported. In view of the demand for cloud computing and virtualization technologies from the enterprise market, our Systems Business cooperated with vendors such as CISCO, VMware and NetApp, to roll out a separate “Planter Plan”. Our market leadership has been reinforced and our market shares in businesses with vendors have been increased as a result.

Distribution Business (primary focus on the SMB & Consumer Markets)
Turnover from the Group’s Distribution Business for the year ended 31 March 2012 grew 16.32%, as compared to the corresponding period of last financial year, to approximately HK$37,515 million. Gross profit margin for the financial year under review was 4.71%, a significant rise by 0.56 percentage point over last financial year. Driven by the higher market shares of CPU (chips) manufacturers and the new expansion of product lines (such as hard disk drives and monitors), the turnover for accessories for the financial year under review was 49.10% higher as compared to the corresponding period of last financial year. The 22.07% growth in turnover of PC servers for the financial year under review was mainly attributable fresh demand arising from the construction of cloud computing infrastructure and the ongoing replacement of some of low-end UNIX servers. As a core element of the Distribution Business, notebooks recorded near double-digit growth in turnover despite falling ASP (average sales price) due to the increasing market competition. Gross profit margin for notebooks improved 0.96 percentage point as compared to last financial year as a result of the shortage in HDD supply for notebooks in last financial year. Noting the change in market demand brought about by the Mobile Internet, Digital China also worked on its exposures to different products with a special emphasis on smartphones and tablets.

The Group highly values new channels as important alternate business channels to traditional IT products stores (IT Mall) and CES (large chain electronic stores). Through the provision of feature products and consulting services, Digital China delivered mutually beneficial relationships and established long-term cooperation with key customers, laying the foundation for investigating the e-commerce model while driving significant overall growth for the e-commerce sub-segment. Digital China also made steady progress in the development of the terminal chain retail store, as an important measure for retail end control. The Group opened 156 new Digital China “@PORT” franchise retail outlets and concession counters as at 31 March 2012 to bring the total number of “@PORT” outlets and counters owned to 790.

Market Outlook
Mr. Lin Yang, the CEO of Digital China said, “Amid the intricate and volatile times of 2011, our management team completed and exceeded all financial targets set for the financial year under review. As guided by the overall strategy of the Company, we have also conducted bold investigations regarding the probable directions of Sm@rt City and realigned our organizational structure in tandem with our Sm@rt City strategy.

Market conditions are set to remain challenging in 2012. Our management has formulated the principle of “prudent progress with a focus on Sm@rt City,” whereby the Group will concentrate on customer marketing, process streamlining and optimization and technological innovation, with a view to bolstering its competitive strengths, enhancing its leadership and influence in the Sm@rt City sector and achieving various business targets for greater shareholders’ value.”

05/16
2012

“Sinopharm headquarters data centre”passes the final acceptance - Digital China provides reference for cloud evolution to Chinese SOEs

“Sinopharm headquarters data centre”passes the final acceptance
Digital China provides reference for cloud evolution to Chinese SOEs

 

(15 May 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, and China National Pharmaceutical Group Corporation (“Sinopharm Group”), held a conference in Beijing to announce the Sinopharm data centre transformation project has passed the final acceptance. They also announced cloud computing strategy for SOEs and the white paper for cloud computing implementation. Officers from the State-owned Assets Supervision and Administration Commission of the State Council and CIOs from various SOEs attended the conference to witness the acceptance of the project. It is also the first batch of representatives in SOE cloud computing.

Experts who attend the conference listened to the presentation of Sinopharm Group and Digital China in relation to the data centre transformation project. They also had a deep discussion in the actual implementation. Experts agreed that the project achieved the goal of building a dynamic, allocated and rapid deployable infrastructure and resources pool through cloud computing concept and virtualization technology. The project also adhered strictly to ISO9000 standards in regards to security, reliability, advanced technology, compatibility and scalability. Furthermore, the project fully embraced green, environmentally friendly, efficient, energy-saving concepts. This project enables the traditional IT infrastructure platform to strike its first step towards cloud computing. After rigorous testing, the entire system is operating well and meets Sinopharm Group's information needs for the next one to two years. The project also lays a solid foundation for the upgrade and transformation of Sinopharm Group and its subsidiaries’data centres during the 12th Five-Year period. Furthermore, this project offers a successful data centre transformation case for other SOEs. In summary, experts all agreed with the acceptance.
 
In recent years, Sinopharm Group had been planning to consolidate its internal IT infrastructure resources through cloud computing as it gained a deeper understanding of the technology and as it further evolved it into group corporate cloud. Based on this plan, Sinopharm Group conceptualized the layout of“three centres in two areas”.During the last six months of the implementation process, Digital China project team, who possesses a better understanding and practical experience of cloud computing, superior project management and delivery standards, and integrated IT services capability, has successfully completed three phases of the construction including server room construction, basic platform construction and dynamic resources pool and passed all relevant tests. In summary, Digital China assisted Sinopharm Group in laying a key foundation for the unified cloud service centre.

05/11
2012

Digital China won two bids of a cloud computing project of a telecom operator

Digital China won two bids of a cloud computing project of a telecom operator

(11 May 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, is pleased to announce the winning of two bids of a telecom operator’s cloud platform project owing to cloud computing and systems integration technological accumulation, solid solution capability and rich implementation experiences. The first practice of the operator’s cloud computing projects provides a valuable application example to the current transition of telecommunications industry and played an exemplary role on the "data concentration" of telecommunications industry’s information construction.

Since the beginning of 3G era, telecom operators are experiencing transition from solely providing voice service to providing content and information services. The operator requires its group to plan and construct resources pool and data centre management platform projects in order to meet users’ demand on high quality data services. These cloud projects need to fulfill the needs of current business development. As it is the initial stage of construction, there is no case for reference. Therefore, the operator attaches great importance to this project by selecting service providers with strict requirements in the bidding process; including the assessment of the technical strength, brand reputation and implementation experience.

Mr. Lin Yang, the CEO of Digital China, commented, “Digital China is committed to expand their business in four areas including industry software, services and information infrastructure, enterprise applications and infrastructure, terminals and mobile solutions, and Sm@rt City operational services. In the telecommunications industry, Digital China not only has long-term and in-depth understanding of the industry, but also advances corporate informatization progress through innovative services and technology. Therefore, Digital China has piled up implementation experiences in the field of cloud services. We won two bids in operator’s cloud computing project is the result of our continuous cultivation in telecommunications industry.”

04/24
2012

Digital China celebrates grand opening of Jiangsu Smartcity Research Institute to accelerate Sm@rt Yangzhou project

Digital China celebrates grand opening of
Jiangsu Smartcity Research Institute to accelerate Sm@rt Yangzhou project

 (24 April 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s leading integrated IT services provider, is pleased to announce the grand opening of Jiangsu Smartcity Research Institute. Mr. Xie Zhengyi, Secretary of Yangzhou Municipal Committee, and Mr. Lin Yang, CEO of Digital China, attended the opening ceremony.

Jiangsu Smartcity Research Institute is located in Jiangsu Information Service Base (Yangzhou) in Guangling New Town of Yangzhou City. The institute was jointly established by the Yangzhou municipal government, Guangling New Town government and Digital China. The institute acts as a platform for developing key technologies and initiating industry standards, conducting research applications, demonstrations and promotions, as well as providing professional training and academic exchange. Through detailed research in new technologies and concepts, the Yangzhou Sm@rt City model is advocated to advance the development of other Sm@rt Cities in China.

Going forward, Digital China will participate in planning and supervising key projects of Yangzhou's Sm@rt City with advanced concepts and technologies and will accelerate the progress of “Sm@rt Yangzhou”. Digital China will expand its promotion of the Yangzhou Sm@rt City model with local features to the entire province to give impetus to other projects around Jiangsu Province. Meanwhile, Digital China signed a strategic cooperation agreement to jointly develop Sm@rt City with the Yangzhou government. To further sustain Sm@rt City projects in Yangzhou, this agreement wil improve and enhance the Sm@rt City rollout through Eastern China and provide strong support to nationwide Sm@rt City projects.

02/21
2012

Digital China announces FY2011/12 Third Quarterly Results - Leveraging "Sm@rt City" sustains growth momentum

Digital China announces FY2011/12 Third Quarterly Results
Leveraging "Sm@rt City" sustains growth momentum
 
(21 February 2012, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's largest integrated IT services provider, today announced the unaudited consolidated results of the Company and its subsidiaries (collectively the "Group") for the nine months ended 31 December 2011 (the "Period").

The Group maintained its strategy to expand its Sm@rt City business in five areas and achieved record success. These five areas are 1) industry application software and IT infrastructure, 2) smart devices and mobile solutions, 3) enterprise application and infrastructure, 4) Sm@rt City operation services and 5) Sm@rt City collaborative industries.

Mr. Guo Wei, Chairman of the Board of Digital China said, "The Board is pleased with management's results and Digital China's revenue and net profit for the nine-months of FY2011/12. Under management's guidance, Digital China's momentum remains strong and its installation pipeline is full for the foreseeable future. We are very happy that management generated more profit for the first nine months of this fiscal year than that of the last entire financial year. Management's strategy of 'driving growth, speeding up transformation and building Sm@rt City' has been successful and it shall continue its implementation as it continues to maximize value enhancement at all its businesses. We are proud that management has been recognized for its efforts through the inclusion in Forbes Asia's Fab 50 for the past three consecutive years as well as being named as one of China's Most Promising Companies in 2011 by The Asset magazine."

Financial Review
During the Period, the Group achieved record turnover, net profit, EPS and operating cash flow. The Group recorded turnover of approximately HK$53,051 million, representing 25.17% growth as compared to approximately HK$42,382 million in the nine-months of FY2010/11. The Group's gross profit margin for the Period was 7.52%, which was 0.7 percentage point higher than 6.82% for the comparable period of last year. Total gross profit recorded a significant growth of 37.97% to HK$3,990 million. Profit attributable to equity holders of the parent of the Group in FY2011/12 3Q was HK$1,051 million, a 26.74% growth as compared to approximately HK$829 million for the corresponding period of last fiscal year. Profit attributable to equity holders reported for the first three quarters of the current fiscal year has already exceeded the total profit attributable to equity holders of last entire fiscal year. Basic earnings per share amounted to 98.11 HK cents, which was 22% higher as compared to 80.42 HK cents for the nine-months of FY2010/11. The profitability of key businesses continued to grow, creating favorable conditions for the Group to achieve operating targets for this fiscal year.

Management improved cash flow through stringent risk controls and cash flow management amidst a macroeconomic environment constrained by tightened monetary policies. Net operating cash flow for the first three quarters of the current fiscal year amounted to approximately HK$640 million. The Group’s cash turnover was 15.99 days for the first three quarters of the current fiscal year compared to 14.86 days for the corresponding period of the last fiscal year.

Business Review

Services Business (primary focus on Industries market)
Revenue growth in the nine-months of FY2011/12 was mainly attributable to the "Sm@rt City" strategy implemented at the beginning of the current fiscal year and our "customer-focused and service-oriented" strategy transformation articulated five years ago. The nine-months revenue of FY2011/12 from the financial and government sectors grew 37.70% and 46.51% respectively, representing a strong growth momentum. In the financial sector, we extended our reach in core banking application software and infrastructure services. We also benefitted from the transformation of local banks to regional and nationwide-banks because of increased demand for core banking systems. Conversely, these transformations bolstered our market share of nationwide-banking clients. Our newly added major customers during the Period include Shanghai Rural Commercial Bank and Yellow River Rural Commercial Bank. In the government sector, we focused on the expansion of local taxation markets with customers from local tax authorities in Anhui, Shaanxi, Hainan and Shandong. Looking forward, we will make concerted effort to promote our self-branded services through productization and standardization of our services, which should become a new driving force for our future growth.

The Group maintained and strengthened its leading position as the "China's Sm@rt City expert" in the current financial year. Our "Sm@rt City" strategy extended to the regional health-care information platform, the exhibition and experience center as well as regional social security information platform. The Group has accomplished the total contracts targeted for the whole financial year. These projects formed a solid customer base for our future development and provided a positive start to the regional implementation of our five strategic paths.

Systems Business (primary focus on the Industry and Enterprise Markets)
The Systems Business continued to expand market share with major vendors. Contributing to this performance was peak procurement from corporate customers ahead of the year-end. The turnover for packaged software and storage products grew 89.06% and 52.41% during the nine-months of FY2011/12, respectively, compared to the comparable period last year. Meanwhile, networking equipment sales benefitted from increased market share at major vendors and additional business from new partners. The gross profit margin of the Systems Business was maintained by leveraging its ability to add value through technical knowledge. Elsewhere, our product solutions, including communications, video conferencing and security applications, recorded robust year-on-year revenue growth.

Supply Chain Services Business (primary focus on High tech Industry, Branded e-Commerce and Online Service Providers and Platform Operators)
Our Supply Chain Services Business continues to be heavily influenced by big box Chain Electronic Stores (CES). During the quarter, we expanded our regional electronic store network and increased cooperation with potential new customers, such as Wal-Mart. At the same time, we strengthened our relationship with our major customer including Gome. To enhance our performance, we sought to enrich Gome and other customer's product offerings by introducing higher-end products that command higher profit margins, such as Apple products and accessories.

The B2C business for e-commerce company segment, a new business that commenced in the current fiscal year, made considerable contribution during the nine-months of FY2011/12. The Company gained valuable experience in further extending its coverage in this emerging industry through the cooperation with e-commerce enterprises such as Taobao. Meanwhile, the post-sales service business enjoyed expansion through cooperation with key manufacturers including HP, Dell and Lenovo. The outstanding performance of out-of-warranty services bolstered overall margin in this segment.

Distribution Business (primary focus on the SMB & Consumer Markets)
Distribution Business sustained growth by probing opportunities arising from the demand for accessories, PC servers and consumer IT products. Driven by increased sales of CPUs and the expansion of our product lines to include hard disk drives (HDD) and monitors, the turnover for accessories increased 55.85% as compared to the corresponding period of last financial year. Turnover growth during the nine-months of FY2011/12 for PC servers grew 25.32% year-on-year, attributable to the ongoing replacement of PC servers by UNIX servers and increased demand from the Small Medium-sized Business (SMB) market. Meanwhile, the sale of notebook computers, a core element of the Distribution Business, recorded double-digit turnover growth during the nine-months of FY2011/12, despite lower unit selling prices due to intense competition. The turnover for the third quarter recorded an improvement of 24.91% as compared to the third quarter of last financial year, as a result of the consolidated demands reported during the New Year and Lunar New Year. The shortage of HDD supply due to the flood in Thailand also led to an increase in the gross profit margin as compared to the third quarter of last financial year.

Moreover, management has developed and expanded new distribution channels, including e-commerce retail enterprises and mega chain retail stores. The Group opened 156 new Digital China "@PORT" franchise retail outlets and concession counters during the nine-months of FY2011/12 to bring the total number of "@PORT" outlets and counters to 790.

Market Outlook
Mr. Lin Yang, the CEO of Digital China commented, "Management believes that by leveraging its solid foundation, its continuous focus on service transformation and the Sm@rt City-focused strategy, the Company can roll-out successful strategies and fulfill prospective operating targets that will maximize shareholder value. The current market of global economic uncertainty resulting from the Euro debt crisis and slowing domestic growth in the PRC presents the Group with challenges and opportunities. However, the Group remains confident because of its commitment to "Sm@rt City" implementation. Meanwhile, the Group believes it will benefit from increased global IT spending because of its position as one of the leading IT companies in China. Management will closely monitor market volatility and related risk indicators. It will maintain flexibility in order to make tactical adjustments to its business strategies as well as implement stringent cost control in order to capture potential business opportunities that could further extend its lead in the market."

02/07
2012

Digital China Received Asset Magazine’s “China’s Most Promising Companies 2011” Award

Digital China Received Asset Magazine’s
“China’s Most Promising Companies 2011” Award
 
(07 February 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), a leading integrated IT services provider in China”, was ranked by The Asset magazine as one of “China’s Most Promising Companies 2011 in recognition of its excellent operation and management, outstanding results and good corporate governance practice.

Mr. Lin Yang, CEO of Digital China, said, “It is a great honor for us to be named by The Asset magazine as one of China’s Most Promising Companies in 2011. Despite the volatile international market roiled by European Sovereign Debt Crisis, international investors remain fully confident in the outlook for Digital China’s IT expansion in China and our ‘customer-focused and service-oriented’ development strategy.”

The Asset magazine invited investment experts and financial analysts to select “China’s Most Promising Companies 2011” according to a series of rigorous selection criteria such as revenue and profitability, management quality, corporate governance standards, business attitudes towards minority shareholders and the effectiveness of investor relations. This award is recognized as a key indication in the market. Digital China was highly appraised by the financial market and was ranked the first in the technology sector due to its leading position in the market, high standards of corporate governance, clear operating strategies and outstanding IT products and services.

02/01
2012

Digital China Creates Smart Jiangsu through Advanced Technology - Developing Information Security Platforms in Jiangsu and Yangzhou

Digital China Creates Smart Jiangsu through Advanced Technology
Developing Information Security Platforms in Jiangsu and Yangzhou
 
(1 February 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, announced that it has won the bid to develop an information security platform for monitoring the e-government portal and major IT systems of the municipal government in Yangzhou. Previously, the Group successfully helped the Jiangsu provincial government set up a similar platform. These achievements mark a new chapter in its implementation of the Sm@rt City strategy in Jiangsu Province.

E-government is rapidly growing in China, imposing greater threats and risks to information security. As a result, governments of various provinces and cities assign the utmost importance to upgrading their information security systems during the informatization process. The Jiangsu provincial government started to establish the information security platform in 2010 and planned to develop similar platforms in 13 cities within the province. Digital China was commissioned to design and execute the project, through which a monitoring network covering the whole province would be created by linking together the provincial government’s platform with those of municipal governments. With advanced technology and extensive experience in Sm@rt City implementation, Digital China successfully launched the provincial government’s platform in April 2011. This platform protected 271 e-government portals in the province (including the Business Recovery Centre of Jiangsu Province, portals of some major provincial government agencies, portals of Wuxi municipal government and e-government portal of the Nanjing municipal government) from a variety of information security problems including disruption, modification, Trojan viruses, domain theft and the protection of sensitive information. The platform substantially enhances the capabilities of the provincial government to monitor, alert and manage potential security threats that may occur in its e-government portal and major IT systems. The project passed the preliminary test in November 2011. It is currently the largest, most intensive and effective regional security platform for e-government portals in China.

Recently, Digital China won another bid to develop the information security platform for monitoring the e-government portal and major IT systems of the municipal government of Yangzhou. Leveraging its advanced technology, the Group helped the government to develop a comprehensive security management and monitoring system to protect about 200 e-government portals and the government’s major IT systems from security threats before, during and after potential problems occurred. Moreover, the security levels can be temporarily raised when important events occur or during specific periods, thus providing constant security monitoring during client-specified periods.

Mr. Lin Yang, the CEO of Digital China, commented, “The smooth development of the information security platforms in Jiangsu Province and Yangzhou lays a solid foundation for the interaction between both platforms. It establishes a good model for other provincial and municipal governments to follow. We formulated the Sm@rt City strategy in 2010 to drive our business transformation by shifting towards a ‘customer-focused and service-oriented’ approach. This transformation has enabled us to capture opportunities arising from the urbanization and informatization process in China and the results continue to be promising. We have successfully carried out the Sm@rt City strategy throughout the country. To date, we have forged preliminary agreements for strategic cooperation with major cities including Nanjing, Wuhan, Shenzhen and Yangzhou, making us the leading expert in Sm@rt City solution with the highest number of installations.”

01/31
2012

Digital China Wins Best Investor Relations Award from Corporate Governance Asia Magazine

Digital China Wins Best Investor Relations Award
from Corporate Governance Asia Magazine

(31 January 2012, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s leading integrated IT service provider, announced that the Group won the Best Investor Relations (China Company) award in the 2nd Asian Excellence Recognition Awards 2012 from the notable Corporate Governance Asia magazine.

The Asian Excellence Recognition Awards are designed to recognize companies with outstanding achievements in investor relations, business ethics, corporate social responsibility, environmental practices and financial performance. A few thousand companies from various regions in Asia participated in the awards. The recognition is based both on the scores from data that participating company submitted, while the Best Investor Relations award is based on the votes from more than 9,000 readers of Corporate Governance Asia magazine within the investment community and interviews conducted with the institutional investors.

It was the second award that Digital China has received in investor relations following the Asset magazine’s Gold award granted in December last year. These awards clearly demonstrate that the investment community recognizes the Group’s efforts in practicing and upholding high standards of investor relations.

“We are delighted to receive this award in recognition of our investor relations initiatives,” commented Mr. Lin Yang, CEO of Digital China. “Digital China has always been committed to best practices in our investor relations program. This award recognizes the concerted efforts we make to keep members of the investment community informed on the Group’s business, development strategies and operating performance through multiple channels. We will continue to follow rigorous standards of disclosure, delivering timely information to investors, as well as creating maximum value for shareholders."

12/20
2011

Digital China Won Gold Award for the Best Investor Relations by the Asset for Two Consecutive Years

Digital China Won Gold Award for the Best Investor Relations By
The Asset for Two Consecutive Years
 
(20 December 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China’s leading integrated IT service provider, announced that the Group was named by The Asset magazine as the Gold Winner of 2011 Corporate Awards for the Best Investor Relations. This is the second straight year that Digital China won the prize.

The screening process was conducted by over 100 international institutional investors. Candidates shortlisted include outstanding listed companies from China, Hong Kong, Singapore, India and South Korea. The judge panel evaluated the candidate companies based on their performance in five areas including financial performance, corporate governance, social responsibilities, environmental responsibilities and investor relations. Digital China won the prize for two consecutive years as it regularly discloses its operating results and future plans, actively participates in local and overseas investor meetings, and maintains a transparent and smooth communication channel. Moreover, the Group was named one of China’s Most Promising Companies in 2009 by The Asset for its excellent management, outstanding achievements, and efficient corporation governance.

Mr. Lin Yang, CEO of Digital China, commented, "Digital China constantly put investors’ interest on its top priority since it was listed in Hong Kong ten years ago. The management attaches great importance to investor relations build-up as they proactively disclose business advancement, regularly meet with investors, and always value opinions from the capital market. These are the key factors that enable the Group to realize strategic transformation. We will continue to enhance investor relations and create a win-win situation for the Group and its investors."

12/01
2011

Digital China Won the Bid of Decision Support Platform for the Third Phase of Golden Tax Project, Assist the State Administration of Taxation to Implement the Informationization of Taxation

Digital China Won the Bid of Decision Support Platform for the Third
Phase of Golden Tax Project
Assist the State Administration of Taxation to Implement the
Informationization of Taxation

(1 December 2011, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, announced that Digital China becomes one of the IT service providers of the third phase of Golden Tax project carried out by State Administration of Taxation with its profession in the industry. The commencement of Decision Support Platform for the third phase of Golden Tax project marks The Third Phase of Golden Tax project coming to a brand new stage that allows data storage, data communication between the management and the staff, and data analysis.

Mr. Lin Yang, the CEO of Digital China commented, “The Golden Tax Project chose Digital China as the provider for its profession in consultancy and planning, independent research and development, standard project management and distribution, and quality service support. Digital China provides full set value-added IT service and solutions based on tax revenue, core collection and management, decision support, to the State Administration of Taxation, and the taxation units at provincial and primary level, thereby gaining rich experience in taxation industry. With the versatile IT Service ability and rich experience in various industries, Digital China becoming partners of many national-level projects.”

The Third Phase of Golden Tax Project, the brand-new phase of the National Golden Tax Project, is a complicate and grand e-government project based on 10-year development of taxation informationization, covering system assembly and application system development. Decision Support Platform, as a key session in the third phase of Golden Tax project, allows the administration of taxation at the state and provincial level to share the data that can be stored, loaded, searched, analyzed, and displayed on the platform. The State Administration will adopt the fully developed application while administrations at the local level can continue to develop customized applications according to the standard. Moreover, the Decision Support Platform will meet the demand that tax revenue at the state and local level transforms from manipulation style to management style, and will realize the data analysis and the application of decision support, thereby achieving the goal of efficiency, safety, standardization, concentration, data share, and quality management.

Decision Support Platform meets various demands of the data processing of tax revenue according to the users at different level, considerably improving the working efficiency. The system enhances the adherence of tax payers and eases the burden of tax payment through the risk management system. The government, particularly the taxation department, can facilitate citizens to enjoy civil service by improving the ability of management and the efficiency of service. Commencement of the Third Phase of the Golden Tax Project marks expansion of Digital China in the informationization within enterprises. By continuously improving the data application and informationization in taxation industry, Digital China will help build a convenient, healthy, safe, and green city.

11/24
2011

Digital China Wins "Most Growth Potential Enterprise" at Golden Bauhinia Awards, "Sm@rt City" Strategy Widely Recognized by the Market

Digital China Wins "Most Growth Potential Enterprise"
at Golden Bauhinia Awards
"Sm@rt City" Strategy Widely Recognized by the Market

“Sm@rt City” Strategy Widely Recognized by the Market (24 November 2011, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, announced that the Group was honored with the Most Growth Potential Enterprise prize at 2011 China Securities Golden Bauhinia Awards, which was selected by professional judges and voted online. Mr. Herbert Hui, CFO of Digital China, attended the ceremony and received the honour on behalf of the Group.

Ta Kung Pao, a press in Hong Kong associated with the important management institutions,
security institutions and economists in Hong Kong and Mainland China, to select the most outstanding and successful enterprises and its management as the significant representatives of the capital era during 20 years’ development of the securities market in China, by comparing and testing all the listed companies and the management in Mainland China and Hong Kong. Golden Bauhinia Awards are sorted into 10 categories according to the features of different industries and periods.

The team of judges and advisors is unprecedentedly strong with the most powerful people from political field, financial industry and academic circle. This event invited famous economists as honorary advisors, including Mr. Liu Hongru, former chairman of China Securities Regulatory Commission; Mr. Long Yongtu, famous economist and Security- General of Boao Forum for Asia; Mr. Zhang Xuewu, Chairman of The Hong Kong Chinese Enterprises Association; Mr. Zhang Huafeng, member of National Committee of the Chinese People's Political Consultative Conference and Chairman of Hong Kong Christ Fund Securities; Mr. Lang Xianping, famous economist and professor of Chinese University of Hong Kong; Mr. Li Yining and Mr. Xie Guozhong, famous economists.

Mr. Lin Yang, the CEO of Digital China, said, “this prize is a recognition of Digital China for its 10 years’ outstanding performance since listed in Hong Kong, and the confidence from the capital market in our growth potential and Sm@rt City strategy during the Twelfth Five-Year Plan. Recognition from the Market is the best prize of our 10 years efforts. We have the confidence to keep a healthy growth while creating satisfactory returns for the shareholders.”

11/16
2011

Digital China Announced FY2011/12 Interim Results - Driving Growth, Speeding Up Transformation, Sm@rt City Drives Turnover to a Quarterly New High

Digital China Announced FY2011/12 Interim Results
Driving Growth, Speeding Up Transformation,
Sm@rt City Drives Turnover to a Quarterly New High
 
(15 November 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group";Stock Code: 00861.HK), China’s largest integrated IT services provider, today announced the unaudited consolidated interim results of the Company and its subsidiaries (collectively the "Group")for the six months ended 30 September 2011 (the "Period").

The Group formulated a strategy to expand Sm@rt City business in five areas and achieved
preliminary success. These five areas were industry application software and IT infrastructure, smart devices and mobile solutions, enterprise application and infrastructure, Sm@rt City operation services and Sm@rt City collaborative industries. With increased market share and strengthened leadership in these areas, the Group delivered robust growth in turnover to ride out the volatile market.

Mr. Lin Yang, the CEO of Digital China said, "The Group commenced business transformation at the outset of FY2011/12 through the implementation of the Sm@rt City strategy. To ensure the successful launch of our third five-year business development plan, we formulated an articulate strategy at the beginning of this financial year: 'driving growth, speeding up transformation and making a concentrate effort to build Sm@rt City', which was designed to accommodate expected market conditions and the business development objectives set for the current financial year. Guided by our strategic goal, the Group devised business expansion and transformation plans in tandem with the five strategic paths of "Sm@rt City", which provided a clear direction in our drive towards business value enhancement for all segments and helped us to carry out our business plans effectively."
 
Financial Review
During the Period, the Group recorded turnover of approximately HK$34,138 million, representing a 23.87% growth as compared to approximately HK$27,560 million for the corresponding period of FY2010/11. The second quarter turnover reached a record high at approximately HK$18,100 million, representing a growth of 24.40%. The Group’s gross profit margin for the interim period was 7.50%, which was 1.09 percentage points higher than 6.41% for the corresponding period of previous financial year. Total gross profit recorded a significant growth of 44.86% to HK$2,560 million. Profit attributable to equity holders of the parent of the Group in the first half of FY2011/12 was HK$665 million, a 23.91% growth as compared to approximately HK$537 million for the corresponding period of last financial year. Basic earnings per share amounted to 62.00 HK cents, which was 17.87% higher as compared to 52.60 HK cents for the corresponding period of last financial year. The profitability of key businesses continued to grow, creating favorable conditions for the Group to achieve the operational targets of this financial year.
 
The Group enhanced cash flow management to cope with the tightening policy of the government. During the Period, it maintained a solid cash flow position with net cash inflow of approximately HK$258 million from overall operating activities. Cash turnover for the Period was 15.55 days, which was almost unchanged from 15.36 days for the corresponding period of last financial year. The cash position of the Group remained stable.
 
Business Review

Services Business (primary focus on the provision of industry software, urban information infrastructure and “Sm@rt City” operation services to the Industry Market)
During the Period, the Group reported turnover of approximately HK$3,526 million for its Services Business, a growth of 33.10% as compared to approximately HK$2,649 million for the corresponding period of last financial year. The growth was mainly attributable to its “customer-focused and service-oriented” strategy transformation carried out five years ago and the implementation of the “Sm@rt City” strategy introduced at the beginning of the current financial year. Revenue from financial, government and telecommunications sectors grew 58.17%, 49.04% and 17.01% year-on-year, respectively. Gross profit margin of financial sector improved significantly due to our rapid expansion of core banking software services and infrastructure services for investment funds and regional banks.

The Group made satisfactory progress in the implementation of Sm@rt City strategy along two major rail lines (Beijing-Shanghai Line and Beijing-Guangzhou Line) and in the three key economic regions (Bohai Rim Development Region, Yangtze River Delta Economic Region and Pearl River Delta Economic Region). It won a number of contracts and started to implement them, including 1) the bid for cloud services development and a demonstration project for Citizen Card applications in Chancheng District of Foshan, 2) the bid for the development of a regional healthcare information platform in Yangzhou, 3) the bid for developing a meat and vegetable tracking system phase 1 in Suzhou, and 4) the bid for Sm@rt City service platform in Chancheng. In addition, it also signed up and started a number of government projects, such as the data center construction and application software development for Trade Exhibition Center of Zhongguancun. Another project it signed up was the core information projects of the Electronic Customs Clearance System in Jiangsu Province (including software development and service agreement and related software/hardware procurement and integration contracts), which expanded the Group’s portfolio of “Sm@rt City” projects and enriched the variety of its solutions. These projects have enhanced the Group’s reputation as the “China’s Sm@rt City expert” and provided a solid foundation for “Sm@rt City” operation services.

Supply Chain Services Business (primary focus on the markets of Hi-tech Industries, Branded e-Commerce and Online Service Providers and Platform Operators)
For the Period, the Group’s Supply Chain Services Business reported turnover of approximately HK$4,057 million, a growth of 66.44 % as compared to the corresponding period of last financial year.

The Chain Electronic Stores (CES) are an integral part of the Supply Chain Services Business. During the Period, the Group reinforced efforts to expand its customer base for CES and established a presence in chain stores other than Gome and Suning. Moreover, it enriched its product offerings by introducing new products and components with higher gross profit margins, leading to an increase in both of turnover and gross profit margin for the Period.

For the six months ended 30 September 2011, revenue from the e-Commerce business of the Supply Chain Services Business segment grew 79% year-on-year, underpinned by notable progress in customer development. Meanwhile, turnover generated from our logistics business doubled as the segment enjoyed substantial growth on the back of the rapid increase in demand. The performance of out of warranty services within our Service Station Business segment was outstanding as well. The solid performance of the businesses mentioned above led to the improvement in gross profit margin of this business segment.

Systems Business (primary focus on the Industry and Enterprise Markets)
Since the beginning of the current financial year, our Systems Business has focused its marketing efforts on enterprise IT deployment and the demand for infrastructure under the guidance of the “Sm@rt City” strategic paths. We continued to gain new shares in both the end-user market and with principal manufacturing partners. Turnover for the first six months of the current financial year grew 25.35%, year-on-year, to HK$8,108 million, which consolidated our leading edge position in the value-added distribution segment. Turnover growth for storage products and packaged software was driven by the data processing requirements of corporate customers. Meanwhile, the substantial increase in the gross profit margin for this sector was attributable to our ability to add value through its technical qualities.

During the first six months of the current financial year, our Systems Business delivered remarkable results through its solution business planning, reporting revenue growth exceeding 30% in all of the three solution types offered: communications, video conference and security. Gross profit margin remained stable despite rapid revenue growth.

Distribution Business (primary focus on the SMB & Consumer Markets)
During the Period, turnover from the Group’s Distribution Business grew 15.26%, as compared to the corresponding period of last financial year, to approximately HK$18,447 million. Gross profit margin was 4.82%, a substantial improvement from 4.15% for the corresponding period of last financial year.

The Group reported stable growth in the sales of notebook and desktop computers despite growing competition in the notebook market and the pressure of declining average selling price. Gross profit margin was significantly improved, while market shares in general and in the segment of major manufacturers remained stable.

Our consumer IT products business made significant gains in turnover and gross profit margin due togrowth in market demand, which strongly underpinned turnover growth and gross profit improvements in our Distribution Business. In the meantime, our Distribution Business stepped up its efforts in the SMB Market and investigated demand for standardized solutions in the market during the first six months of the current financial year in pursuit of stronger growth. Revenue growth for PC servers became an important contributor to overall revenue growth as we seized opportunities in markets where the substitution effect of PC servers as a replacement for other Unix server effect was strong.

The Group’s leading edge in the new markets was further consolidated with the opening of 119 new Digital China “@PORT” franchise retail outlets and concession counters during the reporting period to bring the total number of “@PORT” outlets and counters to 745 as at 30 September 2011, contributing to a 68% growth in the business scale of our retail end as a whole in comparison to the corresponding period of last financial year. The official roll-out of the strategic paths for “smart device and mobile solutions” of “Sm@rt City” strategy took place during the six months ended 30 September 2011 and initial deliverables were reported. Growth in the mobile solution business was particularly strong, making solid contributions to the gross profit growth of our Distribution Business.

Market Outlook
Mr. Guo Wei, the Chairman of Digital China commended, “Management has been savouring the challenges and opportunities of the crucial 2011 financial year from the very start of the year, as this year marks the first year of the implementation of China’s 12th five-year plan of macro-economic development, as well as a year in which China’s urbanisation process would be gaining strong momentum. Our Group overcame market volatility, delivered sound results, accomplished business targets and fulfilled undertakings to the Board under the guidance of the ‘Sm@rt City’ strategy. ” Mr. Yan Guorong, the President of Digital China commended, “The management is confident of the Group’s performance despite market volatility. Further technological development in the Mobile Internet, the Internet of Things and Cloud Computing will form a solid basis for further development of the ‘Sm@rt City’ and provide useful leads to the business roll-out plans of Digital China. The Group will continue to follow the five strategic paths of ‘Sm@rt City’ and refine its evelopment strategies for the five years ahead, enhancing local implementation and ongoing management to provide a firm foundation for future business development. In addition, management will keep close track of market conditions and make flexible adjustments to its strategies in a timely manner to seize business opportunities presented by the peak procurement season before the close of the calendar year. We will continue to seek new market share and extend our lead, in a bid to reward shareholders with growth in results.”

11/01
2011

Digital China Promotes Urbanization, Sm@rt City Strategy Backs up Rural Financial Services

Digital China Promotes Urbanization
Sm@rt City Strategy Backs up Rural Financial Services
 
(1 November 2011, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s largest integrated IT services provider, announced that the Group has provided outsourced SaaS (Software as a service) banking solutions to almost 100 township banks by the end of October 2011, making it one of the largest outsourced core banking solution providers in China. The outsourced solutions offered by the Group cover various areas including core banking system, credit management system and e-banking system.

The Chinese government called for the promotion of a steady urbanization process in the “Twelfth Five-year Plan”. While small and medium-sized city banks and township banks play a crucial role in this process, they face a variety of challenges and opportunities when undertaking informatization initiatives. The China Banking Regulatory Commission plans to set up 1,294 modern financial institutions in the rural areas by the end of 2011, including 1,027 township banks. Nevertheless, most township banks find it difficult to burden the heavy costs of developing and maintaining comprehensive IT systems due to small scale, technological weakness and difficult operating condition. As a result, immediate IT support for its core banking system development is essential for the start-ups of these township banks.

Digital China commands competitive advantages in the financial sector. According to the latest figures from IDC, it is the second largest IT solution provider to the financial sector in China. Leveraging on over 20 years of experience in providing software service to the financial sector in China, Digital China fully promotes the outsourced banking operation service by integrating IT planning and consultancy, solutions, and outsourced service. It not only accords with the strategy of rural banks development in China, but becomes the key operation and service business in the Group’s next 5-year plan considering its high value, stable customers and high return.

Mr. Lin Yang, the CEO of Digital China said, “Leveraging on its IT services competitive edges, Digital China plays certain roles in the national strategy of developing small-andmedium- sized cities and rural areas. As the leader of Sm@rt City project, Digital China gained rich experience and successful cases in the informationization of township banks. Almost 100 township banks select Digital China as their outsourced IT service provider, which represents the ample recognition of Digital China’s comprehensive ability in outsourced IT service business, and the penetration of Sm@rt City strategy in financial sector. Apart from the township banks, the outsourced service mode is also favored by commercial banks in some small and medium sized cities”.

10/18
2011

Another breakthrough for Sm@rt City strategy as Digital China wins the contract for Wuhan’s Public Service Center

Another breakthrough for Sm@rt City strategy
as Digital China wins the contract for Wuhan’s Public Service Center
 
(18 October 2011, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s leading integrated IT services provider, announced that the Group has won a contract for the provision of overall design and system integration services to Public Service Center, the project on the municipal administrative services centre in Wuhan. This project will facilitate the Sm@rt City development in Wuhan.

Public Service Center in Wuhan is by far the largest investment of its kind in China and covers the largest site area. It incorporates latest IT technology including the Internet of Things and clouding computing and will become an information hub for all government agencies in Wuhan, which enables the municipal government to consolidate information and resources for the implementation of electronic government, administrative approval and exchange of public resources and to offer one-stop, advanced and convenient administrative services to enterprises and general public. Upon completion of the project, the municipal government can provide one-stop services to the public and charge them under the same roof, which range from public services, project demonstrations, public education, trainings and forums, commercial negotiations, and cultural and leisure activities.

Mr. Lin Yang, Chief Executive Officer of Digital China, said, “The construction of Public Service Center is vital to the development of Sm@rt Wuhan programme. Our winning of this contract marks another achievement for the implementation of Sm@rt City strategy. Wuhan municipal government attaches great importance to the project and listed it as one of the ‘Top 10 tasks that must be completed’ for the second consecutive year. In April, we formed Digital China Octopus Information Technology Services Limited with Octopus China Investments Limited. The newly established joint venture immediately entered into a strategic agreement with Wuhan City Card Company Limited for the operation of Wuhan City Smart Card project. This project has evolved to be an indispensable part of Sm@rt Wuhan programme. Wuhan is of strategic importance to the implementation of Sm@rt City strategy. As a result, we set up the second headquarter in August and cooperates with Wuhan municipal government to carry out Sm@rt Wuhan programme.”

09/30
2011

Digital China's Sm@rt City strategy extended to Western China, Citizen Card will be rolled out in Lanzhou

Digital China's Sm@rt City strategy extended to Western China
Citizen Card will be rolled out in Lanzhou
 
(September 30, 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China’s leading integrated IT services provider, announced that it has formed a partnership with the Lanzhou municipal government to develop "Lanzhou Citizen Card Project". The citizen card will incorporate information on public management and community services ranging from social security, healthcare, census to housing, whereby providing greater convenience to the public and improving the quality of social services.

As the provincial capital of Gansu Province and a hub in western China, Lanzhou takes a lead in informatization development of the area. The open platform of Lanzhou Citizen Card developed by Digital China enables it to add new services according to the adjustment in the planning of public services in the future.

Mr. Lin Yang, CEO of Digital China, said: "We have carried out Sm@rt City strategy in 62 cities throughout China and gained leading edges in this field. The Core System of Citizen Card developed by ourselves was named as '2011 Innovative Software Products in China'. Due to the different development stages of Citizen Card project in various areas, the Citizen Card rolled out in some pilot cities will incorporate other services other than some basic functions. They include the payment of public transport fares, settlement of public utility bills, payment of entrance fees of some tourist attractions and electronic wallets. Our achievements in Citizen Card development were highly acclaimed by the Lanzhou municipal government."

09/21
2011

Sm@rt City strategy extended to food safety area Digital China helps Suzhou to track meat and vegetable sources

Sm@rt City strategy extended to food safety area
Digital China helps Suzhou to track meat and vegetable sources

(21 September 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT services provider, announced that the Group has won the bid for developing the meat and vegetable tracking system phase 1 in Suzhou, Jiangsu Province. It can be used to track down the sources of contaminated food immediately, whereby ensuring food safety in the city.
 
Mr. Lin Yang, CEO of Digital China, said, "There has been a growing concern over food safety among the general public in China. It is crucial to develop meat and vegetable tracking systems as soon as possible to ensure healthy food supply. As a result, the central
government and the State Council attach great importance to the development of such systems. The Ministry of Finance and the Ministry of Commerce had issued a joint circular outlining the plan to establish the tracking systems in 20 cities in two phases. About RMB 1.6 billion would be raised and earmarked by the central government and local governments for this project. Food supervision is an area that our Sm@rt City strategy focuses on. We have gained extensive experience in the logistics sector and got involved in the development and application of food tracking solutions since 2010. Receiving this contract marks another breakthrough for our Sm@rt City operation as we had earlier won the bids for the development of Citizen Cards and electronic customs clearance system. It clearly shows that Digital China has strong IT capabilities in helping the government to solve livelihood issues through IT means."

09/14
2011

Digital China named one of Forbes Asia’s Fab 50 for the third straight year

Digital China named one of Forbes Asia's Fab 50 for the third straight year
 
(14 September 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; stock code: 00861.HK), the largest integrated IT services provider in China, is pleased to announce that the Group was again named one of the Asia’s Fab 50 by internationally renowned business magazine Forbes this year. It received the award for the third consecutive year from 2009 to 2011 and scored the highest ranking among all Chinese IT enterprises, reflecting that its leadership in the sector was widely recognized.

Forbes magazine made thorough assessments of more than 1,000 companies in the Asia-Pacific region with revenue or market capitalization of over US$3 billion and then selected from them the finalists according to their performance on various financial indicators over the past five years. Digital China was ranked 16th on the merits of its strong profitability and sustainable business growth.

Mr. Lin Yang, CEO of Digital China, commented, "We feel very proud to be named as one of the Forbes Asia's Fab 50 for the third year in a row. The award not only confirms our achievements made, but also drives us to keep innovating through strategic transformation and to contribute our efforts in promoting the development of 'Sm@rt City' in China."

Mr. Lin Yang added, "This year sees the beginning of the Group's third Five-year Plan. It also marks the first year for us to implement the 'Sm@rt City' strategy in full swing. Under the guidance of this strategy, we achieved robust growth in overall business and steady cash inflows from the operations, whereby striking a perfect balance between business development and risk management. The Group has made preparations in 57 cities throughout the country for the launch of Sm@rt City strategy. We hope to forge an extensive alliance with business partners to push ahead the development of Sm@rt City in China."

09/05
2011

Digital China's Sm@rt Card Cloud Computing Platform Granted National Accreditation

Digital China's Sm@rt Card cloud computing platform
granted national accreditation
 
(5 September 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT services provider, announced that the Sm@rt Card cloud computing platform developed by the Group was given "China Cloud" (華夏雲) accreditation and named as a "Reliable Proprietary Cloud Computing Solution for Software and Hardware" during the Forum to Promote Reliable Proprietary Cloud Computing Solutions for Software and Hardware. The forum was jointly held by the Centre for Software and Integrated Circuit Promotion (CSIP) of the Ministry of Industry and Information Technology and related enterprises. The Group's cloud computing platform was one of the solutions mainly promoted in the forum.

Mr. Lin Yang, CEO of Digital China, said, "We are very pleased to receive the 'China Cloud’ accreditation. It shows that Digital China's Sm@rt City solution is the most advanced application solution in China. The Citizen Card / Sm@rt Card solutions can be fully applied in the cloud computing environment. As a result, it characterizes cloud computing features and supports cloud computing services. The software and hardware of our platform is self-developed by domestic enterprises and is thus safe and reliable. Through this platform, we will build strong connections with industry players and strengthen these connections for further expansion. Meanwhile, the establishment of this platform demonstrates safe and wide application of our Sm@rt City solution."

The Sm@rt Card cloud computing platform is the only solution which integrates functions of public services, commercial use and government services together. It is a software platform developed according to the practical applications of Sm@rt City and is currently put into use in Chancheng, Foshan. Users can leverage the virtualization and flexible deployment offered by the cloud computing technologies to centralize the management of various Sm@rt Cards issued by the government, enterprises and other organizations. Moreover, they can provide information services to the related parties. For example, they can provide different cardissuing organizations with information about card issuance, card status management, card usage statistics. Users of the platform include government, enterprises and retailers (for membership services or loyalty programs etc).

08/25
2011

Digital China Successfully Signs Core Banking Project of Changchun Rural Commercial Bank, Sm@rt City Marches Ahead to Financial Industry

Digital China Successfully Signs Core Banking Project of Changchun Rural
Commercial Bank
Sm@rt City Marches Ahead to Financial Industry
 
(25 August 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China’s leading integrated IT services provider, announced that with Sm@rt City strategy expanding nationwide, Digital China made significant progress in bank informatization of financial industry, as it signed the contract to build New Generation Core Banking System for Changchun Rural Commercial bank (CCCB).

The New Generation Core Banking System of CCCB, including the construction of core business System, peripheral business system, front-end counter system and ESB platform, will integrate the existing core and peripheral system in the head office and branches, meet the requirements of organization, management and supervision when opening rural banks, take into account of the differentiated needs of branches, and reinforce the information security management. As for the CCCB project, Digital China will build a unified and strong platform for business and customer service by applying the self-developed new generation core banking system Sm@rtEnsemble to CCCB, which is the first application of Sm@rtEnsemble in rural commercial banks in China. This product has been delivered in numerous urban commercial banks and foreign invested banks in China and is the only core banking system with 100% success rate approved by a number of banks. The core application of the system has reached the top level among national commercial banks, and will enhance the management skill and competency of CCCB in all aspects.

Mr. Lin Yang, CEO of Digital China, said, "The winning of CCCB bid is a significant progress of Sm@rt City strategy in financial industry. Digital China has launched five business layouts in city information infrastructure, mobile internet access device and application, industry and corporate market, Sm@rt City operation service, Sm@rt City collaborative industry. The signing of this project further consolidates the strategic layout of the "industry and corporate market". In addition to financial industry, Digital China also provides leading infrastructure service, consultancy and software solutions to customers from telecom, electric power, and medical care industries as well as enterprise customers, insisting in exploring SaaS-based service to enhance the core competency and sustainable development of major accounts through informatization."

08/16
2011

Digital China Announces First Quarterly Results for FY2011/12 - Achieves Record-high Quarterly Turnover in the First Year of Launch of Sm@rt City Strategy

Digital China Announces First Quarterly Results for FY2011/12
--
Achieves Record-high Quarterly Turnover in the First Year of Launch of
Sm@rt City Strategy
 
(16 August 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), the largest integrated IT services provider in China, today announced its unaudited consolidated results for the three months ended 30 June 2011. (the "Period").

After thorough research and accessment of the macro-economic outlook and the market trends, the Group rolled out the Sm@rt City strategy at the beginning of FY2011/12. Based on the experiences gained from implementing "customer-focused and service-oriented" strategy over the last 5 finanical years, the Group formulated plans with the theme of "driving growth, speeding up transformation and focusing on Sm@rt City" for the new financial year. Sm@rt City strategy was carried out in different business segments. The Group started the implementation plans for business segments based on Sm@rt City, while the marketing battle aimed at growth against adverse conditions by "sustaining current volumes and seeking additional volumes" was also rolled out in full scale at the beginning of the year. These measures have been rewarded with notable results.

Mr. Guo Wei, Chairman of Digital China, said, "Our market position has been further strengthened after the implementation of the first two 'Five-year Plan'. Through accurate judgement, we have formulated the third "Five-year Plan" and decided to effectively drive our overall business growth through the five paths of the Sm@rt City strategy including city information infrastructure, mobile internet devices and applications, industry and enterprise markets, Sm@rt City operations and services, and Sm@rt City coordination industries. The outstanding 1Q results we achieved show that this strategy is moving on the right track. Guided by our Sm@rt City strategy, the management is confident that it will help sustain stable business development in the future despite the volitaile market conditions."

Financial Review
During the Period, the Group achieved record-high quarterly turnover of approximately HK$16,038 million, representing an increase of 23.28% from HK$13,010 million for 1Q of FY2010/11. Overall gross profit margin increased by 1.26 percentage points from 6.37% for 1Q of FY2010/11 to 7.63%. Gross profit jumped up 47.61% year-on-year to HK$1,224 million. During the Period, profit attributable to shareholders of the parent amounted to HK$357 million, up 22.98% from HK$290 million for 1Q of FY2010/11. Basic earnings per share increased by 16.34% to 33.10 HK cents from 28.45 HK cents for 1Q of FY2010/11. Continued improvement in the profitability of core businesses laid a solid foundation for the Group to achieve operating targets for this financial year.

In the face of restrictive measures introduced by the government from the start of this financial year, the Group enhanced cash flow management. Despite tight liquidity in the market, the Group secured positive cash flow, which ensured healthy growth of its businesses. During the Period, the Group's net cash inflow from overall operating actitivies amounted to approximately HK$158 million, reversing from a cash outflow for the fourth quarter of last financial year. The improvement in cash flow secured its future business expansion. Fund efficiency continued to improve, with overall cash turnover for the Period reduced by 0.42 days from 15.39 days for 1Q of FY2010/11 to 14.97 days.

Business Review

Services Business (with a primary focus on the provision of urban information infrastructure and Sm@rt City operation services to the Industry Market)
During the Period, turnover of Services Business amounted to HK$1,790 million, up 29.10% from HK$1,386 million for the same period of last financial year. Gross profit margin remained sound and reached 17.00%. Improvement in profitability was due to the Group's extended reach to a number of business sectors. And the Group made breakthroughs in the sectors such as governments, investment funds, insurance and regional banks. Turnover from the finance sector grew by 55% year-on-year, while that from clients of the government sector jumped nearly 80%.

As the Group's customer base continued to grow, its dominance in the financial sector became increasingly evident. It commenced work on 5 core banking systems and 3 ESB (Enterprise Service Bus) systems, serving mainly city commercial banks such as Bank of Qinghai, Qinhuangdao City Commercial Bank and Jinshang Bank. New customers like Bank of Chongqing and Ping An Bank signed up for its ESB systems, which proved to be very popular with mid-sized banks. In the meantime, a new user was enlisted for the Group's core banking system based on cloud computing and operated on a SaaS application model. Smooth progress was made in business with local tax bureaus and taxpayers as the Group won the projects in Shaanxi and Ningbo after bagging the same for Shenzhen and Hainan.

Supply Chain Services Business (with a primary focus on the markets of Hi-tech Industries, Branded e-Commerce and Online Service Providers and Platform Operators)
Logistics and procurement agency businesses showed outstanding value under the Sm@rt City strategy as the Group rolled out business in the e-commerce market. During the Period, Supply Chain Services Business reported turnover of approximately HK$1,901 million, an 87.87% growth compared to the corresponding period of last financial year. The logistics business, which commanded higher gross profit margins, reported a 100% year-on-year growth for the Period.

The procurement agency business conducted on behalf of CES customers also produced outstanding results. Riding on the strong growth of e-commerce market, the Group made enhanced efforts to tap into online business sector. Turnover for the Period topped HK$123 million, laying a strong foundation for its future growth. Improved operating performance of Supply Chain Services Business was mainly attributable to increased inherent demands of the CES market and the ongoing additions of new varieties in products under direct supply. During the Period, CES business grew by 83.95% year-on-year.

Systems Business (with a primary focus on the Industry and Enterprise Markets)
Demand in the enterprise market has picked up since the beginning of the current financial year. The Group seized such market opportunities in a timely manner to advance customer development, while continuing to extend its lead in value-added distribution. Turnover of Systems Business reported a substantial year-on-year growth of 23.97% for the first quarter. The Group enhanced cooperation with both upstream and downstream partners. While capitalising on opportunities presented by adjustments in the channel structure to enlarge our market shares on the back of our inherent strengths, the Group also sought to improve the way it cooperated with major manufacturing partners. As a result, gross profit margin of Systems Business for the Period increased to 9.89% from the corresponding period of last financial year. The Group continued to develop the market of regional clients. Its regional clients grew by 45% when compared to the corresponding period of last financial year. Its customer base was extended to cover sectors such as telecommunications, finance, government and manufacturing.

Distribution Business (with a primary focus on the SMB & Consumer Markets)
Turnover of the Group's Distribution Business for the Period amounted to approximately HK$8,469 million, up 13.18% from approximately HK$7,483 million for the corresponding period of last financial year. Based on planned moderation between network grid coverage and the retail end under the Sm@rt City strategy, the Group devised effective strategies of Distribution Business in a timely manner and achieved growth underpinned by positive results in terms of product lines, retail and network grid coverage. And the Group's competitive edge in the distribution market of 4-6th tier cities has been further strengthened. Driven by the launch of new products such as smart devices and digital products as well as increased sales of mobile internet solutions, gross profit margin grew to 5.12%, which was substantially higher than 3.94% reported for the corresponding period of last financial year. Initial results have also been achieved in mobile internet terminals and their application planning.

Digital China continued to expand its "@PORT" franchise retail outlets and concession counters in China. With ongoing expansion, the Group's competitive edge in the distribution market of 4-6th tier cities has been further strengthened. Meanwhile, the Group was actively identifing new approaches to expansion, with a view to speed up business layout at the retail end.

Outlook
Mr. Guo Wei, Chairman of Digital China, commented, "Year 2011 not only marks the first year of the implementation of China's 12th Five-Year Plan, but also sees rapid urbanization in the nation. As a result, it is a crucial year for the Group’s future development. In the face of uncertainties in the macro-economic environment, we will adhere to the strategy of “driving growth, speeding up transformation and focusing on Sm@rt City” under the guidance of Sm@rt City strategy. In tandem with the five paths of the Sm@rt City strategy (city information infrastructure, mobile internet devices and applications, industry and enterprise markets, Sm@rt City operation and services as well as Sm@rt City coordination industries), we will actively procure the implementation and transformation of various business segments under the new strategy and seek to bring benefits to the Group’s business as a whole through the vigorous development of Sm@rt City. We will keep a close watch on latest developments of the market and adjust our strategy flexibly. We will seize every opportunity available to safeguard our market shares and competitive edges, whereby achieving growth in results performance and adding value for shareholders."

08/16
2011

Digital China Announces First Quarterly Results for FY2011/12 Achieves Record-high Quarterly Turnover in the First Year of Launch of Sm@rt City Strategy

Digital China Announces First Quarterly Results for FY2011/12
--
Achieves Record-high Quarterly Turnover in the First Year of Launch of Sm@rt City Strategy
 
(16 August 2011, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), the largest integrated IT services provider in China, today announced its unaudited consolidated results for the three months ended 30 June 2011. (the “Period”).

After thorough research and accessment of the macro-economic outlook and the market trends, the Group rolled out the Sm@rt City strategy at the beginning of FY2011/12. Based on the experiences gained from implementing "customer-focused and service-oriented" strategy over the last 5 finanical years, the Group formulated plans with the theme of “driving growth, speeding up transformation and focusing on Sm@rt City” for the new financial year. Sm@rt City strategy was carried out in different business segments. The Group started the implementation plans for business segments based on Sm@rt City, while the marketing battle aimed at growth against adverse conditions by “sustaining current volumes and seeking additional volumes” was also rolled out in full scale at the beginning of the year.
These measures have been rewarded with notable results.

Mr. Guo Wei, Chairman of Digital China, said, "Our market position has been further strengthened after the implementation of the first two ‘Five-year Plan’. Through accurate judgement, we have formulated the third ‘Five-year Plan” and decided to effectively drive our overall business growth through the five paths of the Sm@rt City strategy including city information infrastructure, mobile internet devices and applications, industry and enterprise markets, Sm@rt City operations and services, and Sm@rt City coordination industries. The outstanding 1Q results we achieved show that this strategy is moving on the
right track. Guided by our Sm@rt City strategy, the management is confident that it will help sustain stable business development in the future despite the volitaile market conditions.”

Financial Review

During the Period, the Group achieved record-high quarterly turnover of approximately HK$16,038 million, representing an increase of 23.28% from HK$13,010 million for 1Q of FY2010/11. Overallgross profit margin increased by 1.26 percentage points from 6.37% for 1Q of FY2010/11 to 7.63%. Gross profit jumped up 47.61% year-on-year to HK$1,224 million. During the Period, profit attributable to shareholders of the parent amounted to HK$357 million, up 22.98% from HK$290 million for 1Q of FY2010/11. Basic earnings per share increased by 16.34% to 33.10 HK cents from 28.45 HK cents for 1Q of FY2010/11. Continued improvement in the profitability of core businesses laid a solid foundation for the Group to achieve operating targets for this financial year.

In the face of restrictive measures introduced by the government from the start of this financial year, the Group enhanced cash flow management. Despite tight liquidity in the market, the Group secured positive cash flow, which ensured healthy growth of its businesses. During the Period, the Group’s net cash inflow from overall operating actitivies amounted to approximately HK$158 million, reversing from a cash outflow for the fourth quarter of last financial year. The improvement in cash flow secured its future business expansion. Fund efficiency continued to improve, with overall cash turnover for the
Period reduced by 0.42 days from 15.39 days for 1Q of FY2010/11 to 14.97 days.

Business Review

Services Business (with a primary focus on the provision of urban information infrastructure and Sm@rt City operation services to the Industry Market)
During the Period, turnover of Services Business amounted to HK$1,790 million, up 29.10% from HK$1,386 million for the same period of last financial year. Gross profit margin remained sound and reached 17.00%. Improvement in profitability was due to the Group’s extended reach to a number of business sectors. And the Group made breakthroughs in the sectors such as governments, investment funds, insurance and regional banks. Turnover from the finance sector grew by 55% year-on-year, while that from clients of the government sector jumped nearly 80%.

As the Group’s customer base continued to grow, its dominance in the financial sector became increasingly evident. It commenced work on 5 core banking systems and 3 ESB (Enterprise Service Bus) systems, serving mainly city commercial banks such as Bank of Qinghai, Qinhuangdao City Commercial Bank and Jinshang Bank. New customers like Bank of Chongqing and Ping An Bank signed up for its ESB systems, which proved to be very popular with mid-sized banks. In the meantime, a new user was enlisted for the Group’s core banking system based on cloud computing and operated on a SaaS application model. Smooth progress was made in business with local tax bureaus and taxpayers as the Group won the projects in Shaanxi and Ningbo after bagging the same for Shenzhen and Hainan.

Supply Chain Services Business (with a primary focus on the markets of Hi-tech Industries,Branded e-Commerce and Online Service Providers and Platform Operators)
Logistics and procurement agency businesses showed outstanding value under the Sm@rt City strategy as the Group rolled out business in the e-commerce market. During the Period, Supply Chain Services Business reported turnover of approximately HK$1,901 million, an 87.87% growth compared to the corresponding period of last financial year. The logistics business, which commanded higher gross profit margins, reported a 100% year-on-year growth for the Period.

The procurement agency business conducted on behalf of CES customers also produced outstanding results. Riding on the strong growth of e-commerce market, the Group made enhanced efforts to tap into online business sector. Turnover for the Period topped HK$123 million, laying a strong foundation for its future growth. Improved operating performance of Supply Chain Services Business was mainly attributable to increased inherent demands of the CES market and the ongoing additions of new varieties in products under direct supply. During the Period, CES business grew by 83.95% year-on-year.

Systems Business (with a primary focus on the Industry and Enterprise Markets)
Demand in the enterprise market has picked up since the beginning of the current financial year. The Group seized such market opportunities in a timely manner to advance customer development, whilecontinuing to extend its lead in value-added distribution. Turnover of Systems Business reported a substantial year-on-year growth of 23.97% for the first quarter. The Group enhanced cooperation with both upstream and downstream partners. While capitalising on opportunities presented by adjustments in the channel structure to enlarge our market shares on the back of our inherent strengths, the Group also sought to improve the way it cooperated with major manufacturing partners. As a result, gross profit margin of Systems Business for the Period increased to 9.89% from the corresponding period of last
financial year. The Group continued to develop the market of regional clients. Its regional clients grew by 45% when compared to the corresponding period of last financial year. Its customer base was extended to cover sectors such as telecommunications, finance, government and manufacturing.

Distribution Business (with a primary focus on the SMB & Consumer Markets)

Turnover of the Group’s Distribution Business for the Period amounted to approximately HK$8,469 million, up 13.18% from approximately HK$7,483 million for the corresponding period of last financial year. Based on planned moderation between network grid coverage and the retail end under the Sm@rt City strategy, the Group devised effective strategies of Distribution Business in a timely manner and achieved growth underpinned by positive results in terms of product lines, retail and network grid coverage. And the Group’s competitive edge in the distribution market of 4-6th tier cities has been further strengthened. Driven by the launch of new products such as smart devices and digital products as well as increased sales of mobile internet solutions, gross profit margin grew to 5.12%, which was
substantially higher than 3.94% reported for the corresponding period of last financial year. Initial results have also been achieved in mobile internet terminals and their application planning.

Digital China continued to expand its “@PORT” franchise retail outlets and concession counters in China. With ongoing expansion, the Group’s competitive edge in the distribution market of 4-6th tier cities has been further strengthened. Meanwhile, the Group was actively identifing new approaches to expansion, with a view to speed up business layout at the retail end.

Outlook
Mr. Guo Wei, Chairman of Digital China, commented, "Year 2011 not only marks the first year of the implementation of China’s 12th Five-Year Plan, but also sees rapid urbanization in the nation. As a result, it is a crucial year for the Group’s future development. In the face of uncertainties in the macro-economic environment, we will adhere to the strategy of “driving growth, speeding up transformation and focusing on Sm@rt City” under the guidance of Sm@rt City strategy. In tandem with the five paths of the Sm@rt City strategy (city information infrastructure, mobile internet devices and applications, industry and enterprise markets, Sm@rt City operation and services as well as Sm@rt City coordination industries), we will actively procure the implementation and transformation of various business segments under the new strategy and seek to bring benefits to the Group’s business as a whole through the vigorous development of Sm@rt City. We will keep a close watch on latest developments of the market and adjust our strategy flexibly. We will seize every opportunity available to safeguard our market shares and competitive edges, whereby achieving growth in results performance and adding value for shareholders.”

08/15
2011

Digital China named one of most innovative Chinese companies by Fortune China - Reaffirming its innovation capabilities

Digital China named one of most innovative Chinese companies by Fortune China
Reaffirming its innovation capabilities
 
(15 August 2011, Hong Kong) Fortune China has named 25 enterprises as China's Most Innovative Companies in 2011. Digital China Holdings Limited ("Digital China" or the "Group") was ranked No.10 for its strong innovation and execution capabilities. The Group was ranked 73rd among "Fortune China 500 for the Year 2011" in July. It was the second award presented to the Group by Fortune China.

Fortune China and Pan-Pacific Management Institute joined together to conduct a comprehensive review on the financial position of a number of Chinese enterprises and shortlisted 52 candidates after taking into account various factors including the sectors in which they operated, their products cycle and
investment strategies. The judge panel then selected the 25 winners according to a series of criteria. The selection process was carried out in two stages. In the first stage, Pan-Pacific Management Institute classified 500 Chinese enterprises into 25 industrial sectors. It then carried out a preliminary
examination of their performance based on different indicators such as income arising from their core operations, net profit margin and return on net assets. Afterwards, 52 candiates from different sectors were chosen. Finally, specialists were invited to pick the 25 winners from the candidates according to a
number of criteria, including their innovation strategies, products, ability to retain creative talents, management process and innovation capaibilities.

Mr. Lin Yang, CEO of Digital China, said, "We feel very proud to be named as one of the most innovative companies in China. Innovation has been the driving force behind the robust business growth of Digital China. The winning of Fortune China’s award reflects that we not only have a strategic vision, but also possess an effective management system and strong execution capabilities to realize such vision. Under the guidance of Sm@rt City strategy, Digital China has evolved to be an important force to drive the digitalization process in China. We will continue to accelerate our growth, making a greater contribution to the digitalization process in the country."

08/09
2011

Digital China wins the bid of data centre and application software development for Trade Exhibition Centre at Zhongguancun National Innovation Demonstration Zone, Commanding the leadership in national demonstration projects

Digital China wins the bid of data centre and application software development
for Trade Exhibition Centre at
Zhongguancun National Innovation Demonstration Zone

Commanding the leadership in national demonstration projects
 
(9 August 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China’s leading integrated IT services provider, announced that the Group has won the bid of the data centre and application software development for the Trade Exhibition Centre at Zhongguancun National Innovation Demonstration Zone (“ZNIDZ”), the first national demonstration zone for the country’s proprietary innovations.

The State Council of the PRC approved the creation of ZNIDZ in March 2009, aiming at developing Zhongguancun into an influential innovative hub in the world. After years of efforts, the zone has evolved to be home to nearly 20,000 high-tech enterprises including market leaders Lenovo, Baidu and Digital China. The demonstration zone is famous for information technology, bio-pharmacy, green energy, new materials, advanced manufacturing as well as aviation and aerospace industries. Aggregate revenue of the companies operated in Zhongguancun soared by 22.6% year-on-year to RMB 1.59 trillion in 2010, accounting for 1/7 of total revenue from all high-tech zones in China.

The project on the data centre and application software development for the Trade Exhibtion Centre at ZNIDZ is comparable to that used in Shanghai World Expo. It encompasses various functions such as demonstration, education, training, international forum and meeting and will become a science, culture, education and tourism hub of Beijing in future. Moreover, the government can use it to promote its image, while businesses can use it for product demonstration. Visitors can learn the latest technological innovations here as well. The winning of this bid marks that the Group has successfully tapped into the field of national demonstration center construction, which is a significant step for Digital China to penetrate the Northern China and the whole country under the Sm@rt City strategy.

Mr. Lin Yang, CEO of Digital China, said, "We possess strong IT integration capability and is the best partner to help develop the national demonstration centre. This project makes the business model of our Sm@rt City strategy more complete and sets a good example for us to extend Sm@rt City strategy in Beijing and throughout the country."

08/02
2011

Digital China further expands Sm@rt Foshan portfolio after winning the bid for Sm@rt City service platform in Chancheng

Digital China further expands Sm@rt Foshan portfolio
after winning the bid for Sm@rt City service platform in Chancheng
 
(2 August 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT services provider, announced that the Group has won the bid for Sm@rt City service platform in Chancheng. This is the third winning bid in Foshan, following its successful bids for cloud services development and demonstration project for Sm@rt City service as well as the project of integrated applications of Citizen Card in the city.

Leveraging the cloud computing technologies and applications, Sm@rt City service platform integrates resources of the government, the community and businesses. This platform is specifically designed for local residents to use public services easily and conveniently through Citizen Cards. Citizen Card holders only need a personal identification number to get access to various public services, including lodging complaints against government agencies, using enterprise services, expressing views on public administration and using community services. This platform helps the Group forge a public service value chain and will form an integral part of the Sm@rt Foshan portfolio which will further strengthen its Sm@rt City structure. It marks another significant achievement made by Digital China in public services sector and lays a solid foundation for its expansion of Sm@rt City project in Southern China.

When this platform is completed, residents in Changcheng can use an integrated service platform and call centre to apply for and enjoy public services, whereby experiencing real convenience to them. On the other hand, the government can better understand real needs of the people through individual channels activated by their personal identification numbers and can thus provide them with customized and value-added services. Digital China not only helped develop software and sevices system for this project, but also provided outsourcing services to the government for its handling and processing services delivered through the platform. This is the first step for the Group to expand its business operation service.

Mr. Lin Yang, CEO of Digital China, commented, "This project plays a significant role in promoting the convergence of informatization, industrialization, urbanization and internationalization, so as to turn Foshan into a Sm@rt City. It received strong financial support from special funds. The undertaking and delivery of the project shows our strong capabilities in public services sector and paves the way for vigorous expansion of Sm@rt City project in Guangdong Province."

07/26
2011

Digital China makes another achievement in the medical field, Residents in Zhangjiagang covered by Urban Worker Programme can now get access to medical services under the City Social Insurance Scheme

Digital China makes another achievement in the medical field
Residents in Zhangjiagang covered by Urban Worker Programme can now get
access to medical services under the City Social Insurance Scheme
 
(26 July 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT services provider, announced that the Citizen Card holders in Zhangjiagang covered by the Urban Worker Basic Medical Insurance Programme ("Urban Worker Programme") can now get access to the medical services covered by the City Social Insurance Scheme. The Citizen Card solution launched in Zhangjiagang was Digital China's first government outsourcing programme which integrated system development and business operations under the Sm@rt City strategy. This marks another success subsequent to the recent winning bid of Yangzhou's regional healthcare information platform, demonstrating Digital China's competitiveness in the medical field.

The major areas that the City Social Insurance Scheme covers include elderly, unemployment, work-related injury and child-bearing. As the premium payment methods and coverages of the scheme were different from those of the Urban Worker Programme, residents participating in the Urban Worker Programme might not be able to use some medical services on a timely basis in the past. However, effective from 12 pm on 1 July, residents in Zhangjiagang who enrol in the Urban Worker Programme can use their Citizen Cards to get access to medical services at 42 medical institutions and more than 400 pharmacies in the city specified in the City Social Insurance Scheme. They can really enjoy the convenience of using one card for various functions and get away from the hussles of bringing along many cards for different purposes. It marks a great achievement of the Citizen Card solution, a part of Digital China's Sm@rt City strategy. This achievement provides valuable experience and sets a good example for the Group's expansion of Citizen Card operations in other cities.

Mr. Lin Yang, CEO of Digital China, commented, "Jiangsu Province is one of the most thriving areas in China and hence becomes our focus for implementing the Sm@rt City strategy. Nevertheless, the pressing market demand imposes great challenges to us for the delivery of services. We leverage our sophitsticated integration capability and extensive experience in the medical sector to push forward the Sm@rt City strategy in this area and achieved satisfactory results. The healthcare management issues have been gradually improved, leading to the more effective use of local healthcare resources. The problems of difficult access to medical services and high medical cost are now solved and the general public can benefit from the digital healthcare services."

07/20
2011

Suceessive winning bids on Sm@rt City, Digital China helps develop intelligent customs clearance system in Jiangsu Province

Suceessive winning bids on Sm@rt City
Digital China helps develop
intelligent customs clearance system in Jiangsu Province
 
(20 July 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT services provider, announced that the Group has won its first information infrastructure development contract for a "provincial electronic customs clearance system" subsequent to the successful delivery of the electronic customs clearance systems for Zhangjiagang and Changshu City in Jiangsu Province. It has also received the contracts for procurement and integration of software and hardware for this contract.

Jiangsu Province is located in the eastern coastal area of China and trading activities at its ports have been very active since ancient times. The rapid growth of industrial zones and tariff-free zones stimulates port trading in the province, whereby requiring better management of its ports. Digital China will assist the Customs of Jiangsu in transforming its customs clearance system from traditional and administration-oriented into modern and service-oriented, providing users with functional, convenient and efficient business channels. Moreover, the new system provides the customs and the commerce department a uniform and standardized platform to share information for carrying out their supervisory work, which will further increase the efficiency of customs clearance and enhance the services and supervisory functions of the the government. As a result, the new system is of great significance to boost Jiangsu's export-oriented economy.

Digital China was previously awarded two contracts for developing core informatization projects of the "Electronic Customs Clearance System" in Jiangsu Province. They were the "Software Development and Services Agreement" and the "Agreement for Procurement and Integration of Software and Hardware". The main tasks of the contracts were to provide proprietary application software, software services and system integration services. The winning of the contracts reflects the overall strengths of Digital China as an integrated services provider. To support the implementation of the contracts and establishment of the first provincial electronic customs clearance system in Jiangsu, the Group will provide the Customs of Jiangsu with self-developed “Electronic Customs Clearance Platform" (proprietary application software product of Digital China) and other application systems for the platform such as the "Specialized Apprvoval System for Trading/Processing Import & Export Companies". Moreover, as a software services provider, Digital China will help the Customs of Jiangsu integrate other application systems based on the "Electronic Customs Clearance Platform", making it a real HUB, connecting the information systems of various ports in the province. Regarding to the “Agreement for Procurement and Integration of Software and Hardware", the Group will procure and integrate standard 3rd-party hardware and software for the development of the platform, which effectively helped customers reduce the project cost and improve the overall efficiency of the system. The projects mentioned above is a typical example to show how the Group's Sm@rt City strategy helped traditional businesses to grow. The winning of various contracts reflects that the Group has a leading capability in the development of electronic customs clearance system. It marks a great success of its Sm@rt City strategy and lays a solid foundation for its expansion in the customs sector.

The achievements made in Jiangsu Province is only a miniature of the Group's Sm@rt City strategy nationwide. The Group successfully implemented Sm@rt City strategy from the overall planning to the execution of the projects and through coordination among various business segments. With innovations and breakthroughs made over the past two five-year plans, Digital China has become the largest integrated IT services provider as well as infrastructure network and software application services provider in China. As accelerating urbanization imposes greater challenges on various city management authorities, the Group rolls out the Sm@rt City strategy, adopting a "customer-focused and service-oriented" approach to help them offer integrated public services, promote the effective use of resources and enhance their capacity of providing services to businesse and residents. The Group has rolled out the Sm@rt City strategy in 57 cities in China and possesses a leading edge in this area so as to further penetrate into other regions of the nation.

07/15
2011

Digital China jumps to 73rd in 2011 Fortune China 500

Digital China jumps to 73rd in 2011 Fortune China 500
 
(15 July 2011, Hong Kong) With revenue of RMB 48.124 billion*, Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China’s leading integrated IT service provider, was ranked 73rd in "Fortune China 500 for the Year 2011", up 4 spots from the 77th for 2010. The Group was one of the four China’s IT companies to be included in the list. The other three were Lenovo Group, Great Wall Technology Company and Great Wall Computer.

*Note: Fortune compiled the figure based on the revenue recorded for the calendar year ended December 2010. On the other hand, Digital China announced on 14 June its revenue for the fiscal year from 1 April 2010 to 31 March 2011 was HK$56.804 billion.

It was the second year for Fortune China to release the Fortune China 500. All of the selected companies are China's enterprises listed in Shanghai, Shenzhen, Hong Kong, New York, London, or Tokyo. The minimum revenue required to be selected for this year was RMB 1.2 billion higher than last year. Total revenue of the top 500 Chinese enterprises amounted to RMB 18.9 trillion, up 38% from last year and accounted for 47% of the country's GDP.

Benefiting from a shift towards a "customer-focused and service-oriented" approach, Digital China has achieved a new milestone in its business transformation, as reflected by an increase in its rankings and revenue. Leveraging on these achievements, the Group rolled out the Sm@rt City project this year. Up to now, the Sm@rt City project has been introduced in 57 cities throughout China, generating outstanding operating results.

Digital China is a pioneer of China's informatization process and has witnessed the rapid change of IT industry in the country. In fact, the development history of the Group can be viewed as an epitome of that for the IT sector of China. The Group took a preemptive move to implement business transformation. It launched the first "five-year" plan, focusing on the development of network, software and related businesses. And the second "fiveyear" plan helped it successfully transform into an IT service provider. The year 2011 saw the commencement of the third "five-year" plan. In light of the accelerating urbanization in China and the bottlenecks it faced, the Group rolled out the Sm@rt City strategy to help develop digital network by integrating IT products and services, aiming at creating Sm@rt City with unique features in different regions. In the feature stories covering "Fortune China 500 for the Year 2011", the magazine carried an article on Digital China and commented, "Without doubt, the integrated Sm@rt City strategy plays a significant role in the China's urbanization process. And it is an important tool for the Group to realize its vision of creating 'Digitalized China' in the next 5-10 years." This comment reflects the wide recognition of Digital China's strategy in the market and clearly points out the driver of Digital China in the future.

07/14
2011

Digital China won bid to implement regional healthcare information platform for Sm@rt Yangzhou, Marking another success of its Sm@rt City strategy

Digital China won bid to implement regional healthcare information
platform for Sm@rt Yangzhou
Marking another success of its Sm@rt City strategy
 
(14 July 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT services provider, announced that the Group has won bid to build a regional healthcare information platform for Yangzhou. The informatization level of the city's healthcare system will thus be further enhanced. The winning of the project marks another success of the Group's Sm@rt City strategy.

This is the first major project open for bidding as the city government rolled out campaigns in 2011 to develop Yangzhou into a Sm@rt City. The project is essential in reforming the existing medical and healthcare system of the city and will provide strong IT support for the transformation of its medical and healthcare system which focuses on a community-oriented approach. Through the data exchange platform, the government can establish integrated healthcare archives of local residents, whereby allowing it to optimize medical resources and to offer safe, effective, convenient and affordable medical and healthcare services to the public.

Yangzhou is one of the first pilot cities in China to implement informatization initiative and ranks second among them in terms of the level of informatization. The system enables the city to offer pioneering and world-class healthcare services. By collecting, grouping and analyzing healthcare information, the system is able to provide access to decision support tools and carries out performance management and hygiene management timely and efficiently for various levels of healthcare administration bureaus, medical and hygiene institution and public health professional bodies. Moreover, the system facilitates inter-organizational collaboration and the implementation of precise management, leading to lower costs and more efficient use of medical and healthcare resources.

Mr. Lin Yang, CEO of Digital China, said, "This project makes use of information technology to share information and services. The general public can hence enjoy digital healthcare services and to resolve the problems of difficult access and high cost of healthcare services. Subsequent to the issuance of Citizen Card in Yangzhou, we hope to extend the number of business applications in Sm@rt City portfolio and introduce the Yangzhou model to other regions."

The cooperation between Digital China and Yangzhou is not limited to the healthcare area. The most striking feature of modern city management is the provision of integrated and convenient public services in a people-oriented approach. While developing the platform for modern city management, we have to figure out solutions to the provision of medical services, transportation, energy supply and social security services. This is exactly what Digital China's Sm@rt City strategy help construct a Sm@rt Yangzhou. This strategy put forth by Digital China covers a wide range of areas, including citizen cards, regional healthcare, smart travels, corporation between government departments and enterprises, integrated taxation, data exchange, cloud computing and security surveillance. It depicts a blueprint for Yangzhou's vision to becoming a Sm@rt City. Moreover, it lays a solid foundation for implementing Sm@rt City strategy in other regions. The Group rolled out the strategy in Jiangsu and extended it to 57 cities all over the country. Digital China will take advantage of its leading edges and strive to become China's "Sm@rt City Expert".

06/14
2011

Digital China Announces Annual Results for FY2010/11 - "IT Operation Service" Tramsformation Paves Way for Rolling Out "Sm@rt City" Strategy and Improves Results

Digital China Announces Annual Results for FY2010/11
--
"IT Operation Service" Tramsformation Paves Way
for Rolling Out "
Sm@rt City" Strategy and Improves Results
 
(14 June 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; StockCode: 00861.HK), China's leading integrated IT service provider, today announced its annual results forthe year ended 31 March 2011. ( "Period" )

During the Period, with the benefit of a balanced coverage of various industry segments, outstanding customer value and comprehensive product offerings, the Group assured notable enhancements in profitability for principal operations to sustain the stable revenue growth, bagging approximately HK$56,804 million for the full year which was 13.20% higher compared to approximately HK$50,178 million for the corresponding period of last financial year. More particularly, we finished the second and third quarters with successive record-high levels of quarterly sales to assure strong growth in annual
results. Turnover for the fourth quarter of the financial year amounted to approximately HK$14,421 million, representing a growth of close to 17% as compared to the corresponding period of last financial year. Meanwhile, The "Citizen Card" projects for Yangzhou, Wuxi, Zhangjiagang and Zhenjiang were hugely successful, while the "Cloud-Based Platform for Smart Cards” in Foshan City was smoothly progressing. The successful conclusion of strategic cooperation agreements with Hainan Province and the cities of Shenzhen, Nanjing, Zhengzhou, Wuhan and Guilin during the year have also provided a solid foundation for the Group as China's Sm@rt City Expert.

Mr. Guo Wei, Chairman of Digital China, commented, "In 2010, being the final year of the 11th Five-Year-Plan period of China, the nation sustained stable economic growth with solid deliverables in the aftermath of the financial turmoil. It was also a spectacular year for the Group, in which the transformation from a 'product-oriented distribution business' into a 'customer-focused and service-oriented' integrated IT service provider for 10 years has finally been successfully achieved. While our Group was celebrating the 10th anniversary of public listing, we engineered the 'second wave' of our business transformation by remolding ourselves into an 'IT operation service provider' on top of being an 'IT service provider'. With proven experience and execution capabilities garnered
through the construction of 'Digitized City' in the past two years, we commenced yet another transformation process to assume a strategic commanding position in the development of the 'Sm@rt City'. In overview of the financial year, the 'customer-focused and service-oriented' strategy was implemented in full swing, while the 'Digitized City / Sm@rt City' strategy was rolled out in a most favorable manner, with all segments reporting stable growth that outperformed the industry average in fulfillment of benchmarks set at the beginning of the year."

Financial Review
The Group's profit attributable to the equity holders of the parent (profit attributable to shareholders) for the year amounted to approximately HK$1,005 million, representing a 21.97% growth as compared to last financial year. Profit attributable to shareholders for the fourth quarter of the financial year under review was approximately HK$176.21 million, representing a 19.37% growth as compared to HK$147.61 million for the corresponding period of last financial year. Basic earnings per share amounted to 96.13 HK cents, which was 15.65% higher as compared to 83.12 HK cents for the corresponding period of last financial year.

During the Period, the Group's net cash inflow from operating activities for the financial year amounted to HK$433 million. The Group assured healthy business development and stable growth thanks to persistent efforts in stringent risk control measures and strengthened cash flow control. Fund efficiency was significantly improved as overall cash turnover for the financial year was reduced to 18.42 days, hortened by 0.8 days as compared to 19.22 days of the corresponding period of last financial year.
 
Business Review
Services Business (with a primary focus on Industry Market)
During the Period, IT Services continued to expand. Our software and servicing capabilities continued to mprove as the overall gross profit margin of the Services Business reached 16.03%, representing a ubstantial growth over 13.32% for the corresponding period of last financial year. In particular, the ervice Business bagged the year's highest quarterly turnover of approximately HK$1,715 million in the ourth quarter, providing a further boost to the Group's dominant position in the IT service market.

During the Period as at 31 March 2011, strategic deployment for the "Sm@rt City" Project had ommenced in 57 cities throughout the nation. The "Citizen Card" projects for Yangzhou, Wuxi, hangjiagang and Zhenjiang were hugely successful, while the "Cloud-Based Platform for Smart Cards nd related Demo Project" for the People's Government of Chancheng District, Foshan City, uangdong was effectively implemented and smoothly progressing. Meanwhile, a publicity campaign romoting our brand new image as "China's Sm@rt City Expert" based on the concept of integrated and oncerted service has also been launched in full scale. The successful conclusion of strategic ooperation agreements with Hainan Province and the cities of Shenzhen, Nanjing, Zhengzhou, Wuhan nd Guilin have provided a solid foundation for the Group as China's Sm@rt City Expert. Also in the pipeline are solutions for citizen cards, regional health systems, smart tourism, government-business onnection, general tax administration, data exchange, cloud servicing and safety surveillance, etc, ffering solid support of our future business progress.

Software service projects accounted for an increasing share of our Group's business during the financial ear. In the financial sector, we capitalized on opportunities in the market of regional banks to complete ur coverage of the same and make breakthroughs in the sales of core systems with the Xi'an base rown into a settlement security center. Our pre-sale capabilities for core bank projects were also nhanced. The development of new solutions, such as the 2nd-generation payment system, was xpedited. For the full year of 2010, more than 20 new customers were signed up (including 15 regional anks, 3 joint-stock banks, 2 foreign banks and 1 rural bank). Six new customers (including 4 regional anks and 2 foreign banks) for core banking systems were signed up, as regional banks proved to be the astest-growing customer group. In the tax sector, active expansion of market coverage continued as ustomers were secured in various segments from the large-scale customer of head bureaus to core ustomers of local tax bureaus and individual taxpayer services. In the telecommunications sector, we ere awarded BOSS and CRM projects of a provincial branch of China Mobile as well as the ODS roject of China Telecom during the financial year, despite cutbacks in telecommunications carriers' nvestments in overall construction and deferred procurement for certain projects.

Digital China has been involved in the formulation of national IT service standards after being esignated as Deputy Chief of the Working Group and the Head of the Supporting Team by the Working Group on Standardization of China's IT services" under the Ministry of Industry and nformation Technology. In this connection, the "White Paper on IT Services Standards (First Edition)" as officially published on 28 October 2010 during our third quarter of the financial year. Leveraging he formulation and publication of national standards for IT services, the Group's Services Business ccomplished the target of increasing contracts for proprietary services by 30% during the year ended 31 arch 2011. We also assumed a dominant position in the formulation of national IT support standards nd in China Mobile's first nationwide centralized procurement for third party services, while achieving nitial success in the design and drive of management systems. In addition to honors and awards for IT ervices garnered during the financial year, we also received 3 commendations from the PBOC / CSRC or the development of 3 major marketable solutions including the operation management center and thers for financial institutions / operators, which featured monthly updates of the proprietary solution nd product road map and turned automated operation into a bright spot for the market. Our industry nfluence has been enhanced as a result.

Supply Chain Services Business (with a primary focus on the High-tech Industries Market)
The business structure of the Group's Supply Chain Services Business underwent significant odifications during the financial year in response to changes in the macro-economic environment and ustained sound growth as a result despite volatility in certain market sub-segments. The Group's Supply hain Services Business reported turnover of approximately HK$10,021 million during the year ended 31 March 2011 which represented a 14.19% growth over the corresponding period of last financial year. he Supply Chain Services Business reported a record-high gross profit margin of 4.17% thanks to going optimization of its business structure. In particular, the gross profit margin of 4.78% for the ourth quarter represented a significant improvement of 0.96 percentage points compared to 3.82% for he corresponding period of last financial year, effectively lifting the overall profitability of the Supply hain Services Business.

Our Chain Electronic Stores (CES) business continued to expand its regional store operations, while aintaining our business volume with large electronic stores such as Gome and Suning as well as our arket shares. These efforts combined to contribute to a substantial year-on-year growth of over 50% in ES turnover. For our third-party logistics business, we continued to develop new customers. For the ear ended 31 March 2011, turnover of third-party logistics business grew by 78.19% as compared to he corresponding period of last financial year. As a value-added service for the supply chain, the aintenance Service Business sustained rapid expansion with revenue from maintenance services rowing approximately 25% over the corresponding period of last financial year.
 
Systems Business (with a primary focus on Enterprise Market)
Turnover from the Group's Systems Business for the year ended 31 March 2011 amounted to pproximately HK$13,823 million, representing a 9.13% growth over the corresponding period of last inancial year. The Group's Systems Business returned a gross profit margin of 9.74%, which was 0.32 ercentage points higher as compared to 9.42% for the corresponding period of last financial year. In articular, gross profit margin reached 10.42% for the final quarter of the financial year, driving ignificant improvements in the overall profitability of the Systems Business.

The Group’s Systems Business continued to capitalize on opportunities available to explore the regional arket and expand its base of preferred customers, while constantly improving and substantiating its bility to provide solutions. During the year ended 31 March 2011, our regional customer business grew y 27.03% in comparison with the corresponding period of last financial year, contributing to our utperforming growth in overall turnover. Meanwhile, the Company's profitability was significantly mproved on the back of stronger ability to provide solutions attributable to the increase in the number nd business volume of large corporate customers.

Dstribution Business (with a primary focus on SMB & Consumer Markets)
Turnover from the Group's Distribution Business for the year ended 31 March 2011 grew 18.47%, as ompared to the corresponding period of last financial year, to approximately HK$26,918 million, epresenting a higher growth rate than the average market level for the segment. Gross profit margin was .38%. In particular, turnover for the fourth quarter of the financial year grew 17.13%, year-on-year, to pproximately HK$6,662 million, which far exceeded the industry average.

There were 634 Digital China "@PORT" franchise retail outlets operating in China as at 31 March 2011, representing a 50% growth as compared to 422 outlets at the end of the corresponding period of last inancial year and effectively consolidating the Group’s leadership in tiers 4-6 cities. In addition, SMB hannels grew by over 20%. Our leading edge was further extended as our sales grids covered more than 94 cities in the 4th to 6th tiers.

On the back of a balanced and complete product portfolio as well as a proactive strategy in market overage and expansion, we avoided declines or attained growth in various product lines for the year nded 31 March 2011 despite volatility in certain sub-segment markets during the year, thanks to timely trategies for sustaining current business volumes and seeking additional business volumes. We ucceeded in preventing our percentage share in mainstream brands from shrinking, while reporting a % year-on-year growth for our notebook segment. Meanwhile, substantial year-on-year growth was eported for other product lines, such as PC servers, consumer IT products and peripherals, the sales of hich increased by over 30%. In the mobile communications sector, the future driver for business olume growth, a smart phone business plan underpinning "Three Major Operators" and "Six Major perating Systems" was devised, while MAA-based solutions and sales promotion were adopted. Proprietary intermediary products for mobile communications were also launched as part of our ongoing efforts to increase our ability to provide futuristic solutions.

Outlook
Mr. Guo Wei, Chairman of Digital China, commented, "Based on meticulous research on China's IT market in the context of complicated conditions of global economy in 2011/2012 and the macro-economic development of China under the 12th Five-Year Plan, we have defined the 2011/2012 financial year as the first year for the third five-year plan of our Group, and have adjusted our organization structure accordingly so that our Company's operation will be in closer tandem with the customers and the market and better positioned for sustainable development. We believe that urbanization will provide the major driving force for China's economic growth as the process rolls on, and urbanization cannot be successful without the support of informatization. As such, the Group will continue to roll out and consolidate its strategic planning for the "Sm@rt City" so that it would become the engine of Digital China's future growth. With our best-in-class management team and our proven management process and risk management system, we will be able to address the current challenges effectively and sustain strong growth that outperforms the industry."

05/02
2011

Enjoy Stylish Apple Experience at Digital China @PORT - Its Authorized Apple Flagship Store Opened in Zhongguancun

Enjoy stylish Apple experience at Digital China @PORT
Its authorized Apple flagship store opened in Zhongguancun
 
(2 May 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT services provider, announced that the authorized Apple flagship store of its franchised retail outlets Digital China @PORT has grandly opened at Top Electron City Plaza Phase 1, Zhongguancun. Mr. Guo Wei, Chairman of Digital China, and Mr. Wang Huamao, Vice President of Digital China and President for operations management of the Consumer & SMB Solutions Strategic Business Unit, attended the opening ceremony.

Leveraging on its global IT network, Digital China provides comprehensive IT products and solutions to address the needs of different industries, enterprises and individual consumers. Through franchised retail outlets nationwide, it offers products, solutions and services to individual customers at a one-stop platform including online store and franchises. The Apple store of Digital China @PORT is one of the important strategies to penetrate the consumer market.

Consumers have grown accustomed to stylish and intelligent lives in recent years. IT products and information applications become essential parts of their everyday lives. As a result, they no longer satisfy with merely the buying of IT products such as PCs, mobile phones or personal intelligent terminals. They require products, solutions and services at the same time. Digital China capitalizes on its advantages in personal applications and integration services to satisfy clients' changing needs vary from products, solutions to services through the establishment of direct sales channels. Meanwhile, developing a one-stop sales perform is also able to provide better services to its clients.

Digital China @PORT's Apple store at Top Electron City Plaza Phase 1, Zhongguancun is a flagship store with distinctive features. Customers can fully satisfy their appetite for quality and innovation of Apple products, as they can find a variety of Apple products and peripherals there. Technicians at the store will also provide tailor-made solutions to customers to address their specific requirements. Moreover, this store is also an authorized Apple service station. It provides not only high quality products, but also comprehensive after-sale services. When customers come in the store, they can immediately experience the premier services and convenience in person. This Zhongguancun store is not only the largest authorized Apple store in the IT market that incorporates sales and service together, but also the first direct store of the Group. It shows the strengthened efforts by Digital China to expand into the retail market and marks an important step by the Group to strategically shift towards the consumer market.

Being the largest integrated IT services provider in China, Digital China integrates resources vary from product, technology and service in the IT sector. It takes a pioneering approach to implement Sm@rt City strategy with a focus on integration services. According to this strategy, consumer business is a core operation of the Group. Combining its strengths with Apple's brand recognition and product advantages, Digital China @PORT aims at developing the largest authorized Apple chain store. It marks the start of the Group’s "Terminal Strategy" by incorporating consumer IT products, communications and smart home appliances, services and solutions.

03/10
2011

Supported by innovative IT Services of Digital China BOC-Fullerton Community Banks successfully commence operation

Supported by innovative IT Services of Digital China BOC-Fullerton Community Banks successfully commence operation
 
(10 March 2011, Hong Kong) Digital China Holdings  Limited  ("Digital China" or  the  "Group";  Stock  Code:  00861.HK),  China's  leading  integrated  IT  services  provider,  announced BOC-Fullerton Community Banks at Qichun and Jingshan in Hubei province, implementing the Group's core banking system, commenced operation recently. These two banks are the first two joint  venture  community  banks  built  by  sizable  commercial  bank  and  overseas  strategic investors. According  to  the plan of Bank of China and Fullerton Financial Holdings,  they will jointly establish 12 community banks within six months, and 200 to 400 community banks in 5 years.
 
The group has been  focusing on  the development of core banking systems  for 16 years and has provided SaaS (Software-as-a-Service) to community bank at Xiping, Henan province and Shenzhen Longgang Community Bank. As  the Group maintains 100% success rate  till  today, our  IT  service  becomes  the  top  pick  brand  for  China's  community  banks. We  also  provide operation and maintenance services pursuant to the successful construction and delivery of the core system.

Mr. Guo Wei, Chairman and CEO of Digital China, said, "In response to the relevant provisions of regulatory authorities and intense market competition, preparatory group from BOC-Fullerton Community Banks  decided  to  start  up  the  core  banking  system  construction  simultaneously while applying  for  license  in order  to ensure  their banks can operate within  the shortest  time. This  project  requires  more  on  the  supplier's  integrated  capacities,  especially  in  project management. After thorough communication, we used "simultaneous development and monthly delivery" model to promote core system construction. This business model enables the banks to balance their business development and IT spending, so as to improve cash flow sufficiently and enhance return on IT investment. It also facilitates the successful operation and lays a solid foundation  for  further business development. As a  result,  the successful operation of  the  two banks provides good examples for our industry peers. Digital China feels honored to be chosen as  the  service  provider  for  the  project.  I  believe,  based  on  years  of  practice  in  the  banking sector, the expertise from Digital China will also bring added-value to our customers."

03/02
2011

Two Chinese IT Giants Join Hands for Full Cooperation - Digital China Becomes General Agent for Huawei

Two Chinese IT Giants Join Hands for Full Cooperation
Digital China Becomes General Agent for Huawei
 
(2 March 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT services provider, announced the Group and Huawei Technologies Co Ltd ("Huawei") are hosting a signing ceremony today at Diaoyutai State Guesthouse to sign an agreement in which the Group is engaged as General Agent for the Shutong series of products from Huawei.
 
Mr. Lu Jun, Director for China Industrial Market of Huawei, and Mr. Yan Guorong, Standing Vice President of Digital China, are presenting at the signing ceremony. According to the agreement, the two parties will jointly mobilize the resources to develop the Shutong series of products, which are widely applied in the enterprise internet systems. The two parties may extend the cooperation into other IT informationization projects to promote the synergies and maximize the interests for both parties.
 
Mr. Lu commented, "The joint forces between Huawei, China's largest internet equipment provider, and Digital China, China's largest IT distributor, will build a comprehensive distribution system to serve the detailed needs of our clients from products to technologies, to brand building and promotion, to training, to expansion and to sales services. The cooperation will surely have a profound implication for the informationization construction of all enterprises."
 
Mr. Yan said, "Enterprise market will be the main driving force for the IT market and our cooperation with Huawei will help us expand the distribution of our products in this market. The cooperation between Huawei and Digital China is a milestone event in the enterprise IT market and is vital to promote the informaitonization process in China. The two parties will expand the ra nge of cooperation and deepen our cooperation in the projects to develop the full potential, achieve a win-win result and contribute to the informationization process in China."

03/01
2011

Digital China Named by the Asset Gold Winner of Corporate Awards for the Best Investor Relations

Digital China named by The Asset
Gold Winner of Corporate Awards for the Best Investor Relations
 
(1 March 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT service provider, announced that it has been named by The Asset magazine as Gold Winner of Corporate Awards for the Best Investor Relations. The Group is the only winner from technology industry among the 12 gold winners. This is the second international award presented to the Group by The Asset after being ranked as one of China's Most Promising Companies in 2009.
 
The screening process was conducted by over 100 international institutional investors. Candidates shortlisted include outstanding listed companies from China, Hong Kong, Singapore, India and South Korea. The judge panel evaluated the candidate companies based on their performance in five areas including financial performance, corporate governance, social responsibilities, environmental responsibilities and investor relations. Digital China got top scores in the investor relations area, showing that its high transparency was highly recognized in the capital market, as the Group made regular disclosure of its operating results and future development plans and actively participated in local and overseas investor meetings.
 
Ms. Wycee Liu, spokesperson of Digital China, said, "Digital China has made its presence in the international capital market for ten years. During the period, we embraced the vision of promoting digitalization in China and strode out towards this goal. While succeeding in transforming ourselves towards IT service, we always attach great importance to investor relations, even our board of directors and the management team has also actively involved. We are dedicated to strengthen communication with investors in order to improve the transparency of corporate governance. As a result, we receive strong support from investors to our transformation. We are fully confident of completing the strategic transformation, which lay a solid foundation for us to deliver better returns to shareholders. In the future, we will continue to improve our corporate governance in order to attract domestic and overseas investors and to ensure stable and sustainable business growth."
 
On 22 February 2011, the Group announced its third quarterly results. Turnover of HK$42,382 million was recorded for the nine months ended 31 December 2010, an increase of 12.04% from HK$37,826 million for the corresponding period of last financial year. This growth rate was significantly higher than the average of China’s IT market. Profit attributable to shareholders of the parent amounted to HK$829 million, in excess of the annual figure for last financial year and an increase of 22.53% over the corresponding period of last financial year.
 

02/22
2011

Digital China Announces 3Q Results for FY2010/11 - Well Prepared for Implementation of Sm@rt City Strategy and Achieving Excellent Results

Digital China Announces 3Q Results for FY2010/11
--
Well Prepared For Implementation of Sm@rt City Strategy
and Achieving Excellent Results
 
(22 February 2011, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT service provider, today announced its results for the nine months ended 31 December 2010. ( "Period" )
 
The Group achieved outstanding results in the first nine months ended 31 December 2010. Profit attributable to the equity holders of the parent for the first three quarters exceeded the annual figure of the previous financial year. Turnover for the third quarter reached HK$14,823 million, a record high of the Group’s quarterly turnover. Profitability of its all major businesses grew significantly during the Period, with overall profit margin climbed to 6.82%, a 0.38 percentage point increase when compared to 6.44% for the corresponding period in the previous financial year. Sm@rt City projects were quickly deployed throughout the nation in line with our forward-looking strategic planning and the Group had established a strong presence in 51 cities. Following the successful launch of “Citizen Cards” in four cities, namely Yangzhou, Wuxi, Zhangjiagang and Zhenjiang, it made another successful move by launching the “Cloud-Based Platform for Smart Cards and related Demo Project” in Chancheng District, Foshan City, Guangdong. Moreover, it entered into Sm@rt City strategic cooperation agreements with Hainan, Shenzhen, Nanjing, Zhengzhou and Wuhan.
 
Mr. Guo Wei, Chairman and CEO of Digital China, commented, "Digital China has made its presence in the international capital market for ten years. During the period, we embraced the vision of promoting digitalization in China and strode out towards this goal. In this financial year, we continued transformation towards IT-serivce and captured market opportunities to implement Sm@rt City strategy in the Chinese cities. We strengthened our leadership in the market, with our business value and profitability continued to improve. During the Period, our various performance indicators outperformed management’s expectations and were highly acclaimed by international investors. The Group was named Forbes Asia Fab 50 for the second consecutive year."
 
Financial Review
The Group recorded turnover of HK$42,382 million for the nine months ended 31 December 2010, an increase of 12.04% from HK$37,826 million for the corresponding period of last financial year. This growth rate was significantly higher than the average of China’s IT market. During the Period, operating profit jumped 90.12% to HK$818 million from the corresponding period of last financial year. Profit attributable to shareholders of the parent amounted to HK$829 million, representing a 22.53% growth from HK$677 million for the corresponding period of last financial year. Basic earnings per share grew 16.74% year-on-year to 80.42 HK cents.
 
The Group made continuing efforts in proactive risk control and cash flow management. Cash flow from operations reached HK$1,075 million, ensuring healthy and stable growth of the Group’s business. The Group continued to claim leadership among its peers in terms of cash turnover, as the cash turnover cycle of 14.86 days for the nine months was shortened by 1.93 days as compared to the corresponding period of last financial year, and meanwhile, it was reported a cash turnover cycle of 13.09 days for the third quarter of the current financial year, which was among the best benchmarking for the industry.
 
Business Review
Services Business (with a primary focus on Industry Market)
During the Period, turnover from the Group's Services Business amounted to HK$4,327 million. In terms of the Services Business, the Group has been focusing on value enhancement for customers with a special emphasis on software and services. During the nine months ended 31 December 2010, the Group's software and servicing capabilities continued to improve as the overall gross profit margin of the Services Business reached 16.62%, representing a substantial growth over 13.55% for the corresponding period of last financial year. In particular, gross profit margin for the third quarter of the current financial year reached 19.87%, which was significantly higher than 14.37% for the corresponding period of last financial year, underpinning breakthroughs in profitability.
 
The value of service contracts signed increased by 57% as compared to the corresponding period of last financial year, as the Group accelerated with business transformation in full swing to underpin significant improvements in the overall profitability of the Services Business. The brand influence of the Group's proprietary service continued to increase, as it received numerous awards and honors in recognition of its expertise in industry application solutions and service products and its ability to deliver standardized and efficient services. Digital China has been involved in the formulation of national IT service standards after being designated as Deputy Chief of the Working Group and the Head of the Supporting Team by the "Working Group on Standardization of China's IT services" under the Ministry of Industry and Information Technology in 2009. In this connection, the “White Paper on IT Services Standards (First Edition)” was officially published on 28 October 2010. Meanwhile, the Group received the "China's No.1 Influential IT Services Brand- Huazun Award” in the "Huazun Award – Annual Ranking in Large-scale Chinese Iconic Industrial Brands" jointly organized by Economy Magazine, China Business Times, Economic Newspaper and Magazine Association and the China Economy Innovation and Development League in November 2010, signifying another important recognition of the Group's leadership in IT services by industry peers and clients.
 
Currently, preparations for the "Sm@rt City" Project were expanded into 51 cities throughout the nation. Following the launching of "Citizen Cards" in four cities, namely Yangzhou, Wuxi, Zhangjiagang and Zhenjiang, the Group made another successful move by launching the “Cloud-Based Platform for Smart Cards and related Demo Project” in Chancheng District, Foshan City, Guangdong during the third quarter of the current financial year. The undertaking and delivery of this project will give a significant boost to the technological levels of Digital China’s citizen card solutions and provide more possibilities for the business model of the citizen card service. Meanwhile, with the successful establishment of strategic cooperation agreements with Hainan , Shenzhen, Nanjing, Zhengzhou and Wuhan, the Group has become an increasingly influential player in the market as China’s leading expert in Sm@rt City, on the back of a forward-looking theoretical structure and a larger portfolio of successful cases than anyone else.
 
In the financial sector, we maintained our leading edge in the core system building for domestic banks as we won the tender for the new generation of “core business system” of Qinhuangdao City Commercial Bank during the third quarter of the current financial year. We also signed up for our first IT Operation Outsourcing Service Project with a regional bank, marking another important progress in the regional banking market following our projects with Qilu Bank, Jinshang Bank and Bank of Chengdu and laying a solid foundation for future outsourcing services with other city commercial banks. In the telecommunications sector, the Group were awarded BOSS and CRM projects of a provincial branch of China Mobile during the third quarter of the current financial year, despite cutbacks in telecommunications carriers’ investments in overall construction and deferred procurement for certain projects. As the 3G-user bases of the telecommunications carriers continue to expand with ongoing improvements in network building, abundant opportunities for core business systems and value-added operation and maintenance services will be in the pipeline. In the taxation sector, the Group made further inroads in Shenzhen and the South China market as a whole after its official takeover of the Shenzhen Local Taxation Collection and Administration Core System Project, a sub-provincial city that generates tax income of over RMB100 billion and ranks third in China in terms of local tax income. Following the local tax project of Hainan Province, and being the second local taxation collection and administration core system at sub-provincial level taken over by the Group, this project is set to bolster its regional development and market penetration in the taxation sector.
 
Supply Chain Services Business (with a primary focus on the High-tech Industries Market)
The Group's Supply Chain Services Business continued to enjoy strong momentum for growth subsequent to the exceptionally rapid growth recorded for the corresponding period of last financial year. During the nine months ended 31 December 2010, turnover of the Group’s Supply Chain Services Business amounted to HK$7,226 million, representing a 8.66% growth over the corresponding period of last financial year. Meanwhile, the overall profitability of the Supply Chain Services Business was effectively boosted by ongoing optimization of its business structure, as evidenced by its gross profit margin of 3.94%, a significant improvement of 0.55 percentage points compared to 3.39% for the corresponding period of last financial year.
 
Turnover from the Chain Electronic Stores (CES) business grew significantly by 54.94% as compared to the corresponding period of last financial year, as we continued to enhance its cooperation with the stores, with special emphasis on regional players. As a value-added service for the supply chain, the Maintenance Service Business sustained rapid expansion with revenue from maintenance services growing approximately 30% over the corresponding period of last financial year. Over 290,000 maintenance orders were received for the period, with a 88% growth over the corresponding period of last financial year. For the Group’s third-party logistics business, it continued to enhance inherent capabilities and develop new customers. For the nine months ended 31 December 2010, turnover grew by 53.52% as compared to the corresponding period of last financial year.
 
Systems Business (with a primary focus on Enterprise Market)
For the six months ended 30 September 2010, turnover from Systems Business increased 7.96% year-on-year to HK$10,573 million. Turnover from network products were driven by market demand to grow by 22.60% over the corresponding period of last financial year. The Group continued to optimize the regional distribution of its Systems Business in active response to market and customer changes. While pursuing steady development of the storage business, we were also actively engaged in new customer development with a view to sustaining high growth. During the nine months ended 31 December 2010, our regional customer business grew by 34.23% in comparison with the corresponding period of last financial year, fortifying our market leadership while positioning us to capture any market opportunities.
 
Distribution Business (with a primary focus on SMB & Consumer Markets)
The distribution business recorded approximately HK$20,256 million for the nine months ended 31 December 2010, an increase of 18.91% from the same period last year, higher than the average rate of growth among the peers. The gross margin is 4.35%, which is higher than the 4.27% for the previous fiscal year. The total number of Digital China "@PORT" franchise retail outlets is 597, increased by 43.86% from last year, when the number of the outlets was 415. The expansion objective is achieved one quarter ahead of the planned schedule, laying a solid foundation to enhance the market position and competitive edge of the distribution business. The two major segments of the distribution business, IT products and PC servers, increased by 39.99% and 31.83%, respectively, effectively drove an overall higher increase in the distribution business as compared to other industry players.
 
Outlook
Mr. Guo Wei, Chairman and CEO of Digital China, commented, "According to China's 12th Five Year Plan, the nation will continue to advance its urbanization process, which will become a major driving force for the economic growth. The informatization is indispensable and supportive to the development of modern cities, in which Digital China will play a vital role. The construction and expansion of the Sm@rt City will contintue to be the Group's strategic focus and major driving force for the business growth. We believe that the effective management, continuous commitment to service-oriented business and strategic focus to construct Sm@rt City will help us achieve our our business objectives for the full fiscal year and create greater value for our shareholders."
 

01/17
2011

Digital China Takes Over Shenzhen Local Taxation Collection and Administration Core System Project to Further Penetrate into Southern China

Digital China takes over Shenzhen local taxation collection and
administration core system project to further penetrate into Southern China
 
(January 17, 2011, Hong Kong) Digital China Holdings Limited ("igital China" or "the Group"; stock code: 00861.HK), the largest integrated IT services provider in China, announced that it has taken over the Shenzhen local taxation collection and administration core system project. Shenzhen is the third largest subprovincial city with tax revenue over RMB100 billion. Thus, this project signals a milestone in the process of Digital China's further penetration into Shenzhen and Southern China. This is Digital China's another winning bid for a taxation administration system for sub-provincial and provincial governments in China, following a project for Hainan provincial government.
 
Mr. Guo Wei, Chairman and CEO of Digital China, signed a strategic cooperation agreement with Shenzhen municipal government. According to the agreement, Digital China will accelerate penetration in Shenzhen through establishing its Digital China E-commerce Industrial Park as well as Digital China Smart Card Application & Research and South China Operating Center. Meanwhile, the Group will work closely with the Shenzhen municipal government in its IT planning, information integration, information security, E-commerce and smart card application, so as to assist Shenzhen to transform into a Sm@rt City.
 
Mr. Guo Wei commented, "We have demonstrated our strong capability, commitment and competitive edge with the successful delivery of many IT projects for Shenzhen municipal government in recent years, which paves the way for us to win the bid for the Shenzhen local taxation collection and administration core system project. We will help improve the Shenzhen Local Taxation Administration System and hence substantially enhance tax collection, information system management and tax-payer services. We believe that it will be an advanced and standard taxation administration system for Shenzhen, which will have a profound implication for the construction of standard taxation systems throughout China."
 
Moreover, at a State Council executive meeting, China's State Council Premier Wen Jiabao announced a series of measures to boost the development of the software and integrated circuit industries. Major support will be provided by the Government for key software and IC technology R&D, and increased informatization and application promotional efforts will be made for enterprises possessing original technology Intellectual Property Rights (IPR). Preferential VAT policy for software products, and tax breaks on operating taxes and revenue taxes for qualifying enterprises will continue to be applied. As a leader in China's IT market, Digital China will be benefited from these policies. Digital China has put a lot of resources in R&D and IPR. Three first-class software delivery centers were developed in Beijing, Xi'an and Chengdu. Its R&D system includes an engineering team, a delivery base and the Group's business units and comprises over 4000 software development talents and a number of specialists in various fields including finance and telecommunications with international background. The Group has developed over 300 application solutions and owns copyrights for about 180 software. As the largest integrated IT services provider in China, Digital China was named as one of the "Top 500 Informatized PRC Enterprises" by the National Informatization Evaluation Center of China for six consecutive years and was the only IT enterprise included in the top 50 list. We believe the supportive policies targeting on IT industry announced recently will further provide a better environment for the rapid growth of the Group.

12/29
2010

Digital China further expands Sm@rt City project in Southern China - by striking a contract of cloud computing platform project with Chancheng District People's Government

Digital China further expands Sm@rt City project in Southern China
by striking a contract of cloud computing platform project
with Chancheng District People's Government
 
(29 December 2010, Hong Kong) Digital China Holdings Limited ("Digital China" or "the Group"; stock code: 00861.HK), the largest integrated IT services provider in China, announced that it has entered into an agreement today with the government of Chancheng District, Foshan in Guangdong Province ("Chancheng District Government") for the research and development of a cloud computing platform for smart cards and related demonstration project. This project showcases the convergence of informatization, industrialization, urbanization and internationalization and the development of a smart city in Foshan. It will receive strong financial support from the government and will be operated according to the requirements of the National Technological Development Fund. The undertaking of the project will significantly enhance the technological level and the business model of Digital China's smart card solutions. Besides, the Southern China headquarters of Century Cloud Computing Centre opened in April this year. This project will thus benefit from greater synergies.

There is a huge demand for all-in-one cards from the enterprises in Chancheng District and a lot of smart card providers, such as Foshan Tong, Guangfo Tong, Guangfo Travel i-Pass and Changtong Card, provide them solutions. However, due to their limited capability and resources, they can hardly offer economical and efficient solutions to clients. With the government support, the cloud-based smart card solutions enable backward and forward integration and facilitate the development of a diversified business model, thus best suiting various requirements of enterprises.

The differences between Digital China's cloud based smart cards and traditional smart cards are as follows: Traditional smart cards are software tailor-made for an individual client. As there is strong demand for smart card applications among various enterprises (particularly SMEs), hefty costs would be incurred if a unique smart card is developed for each one. To address this problem, Digital China intends to develop a cloud computing platform for enterprises in the same area. They only need to pay a fee for building and using the common platform and can thus make substantial cost savings because they do not need to pay for developing a specific operating system. Moreover, they can settle the cost by installments.

Mr. Lin Yang, President of Digital China, commented, "We have gained extensive experiences in the areas of smart card issuance, management, development and applications from the launch of Citizen Card project in Yangzhou, Wuxi, Zhangjiagang and Zhenjiang. The development of a cloud based platform for smart cards and related demo project received enthusiastic support from the Chancheng District Government and it is a great encouragement to us. When the development process is completed, the platform will be promoted extensively in the industry. We will leverage on our extensive experiences gained from the development of Sm@rt City project and cloud-based smart card solutions in Chancheng to enhance our cloud computing platform and business cooperation with others, so as to cope with the needs of Chancheng. This will not only enhance our integrated capability, but also help us improve the business model for citizen cards. Through this project, Digital China will be making efforts to construct a smart industry agglomeration zone as well as advanced management zone, assisting Chancheng District to create a smart, beautiful and harmonious home."

12/01
2010

Digital China Awarded "China's No.1 Influential IT Services Brand"

Digital China Awarded "China's No.1 Influential IT Services Brand"
 
(01 December 2010, Hong Kong) Digital China Holdings Limited ("Digital China"or "the Group"; stock code: 00861.HK), the largest integrated IT services provider in the Greater China area, was awarded "China's No.1 Influential IT Services Brand - Huazun Award" for its overall strength and outstanding innovation.
 
The China Brand New Marketing Model Summit and China Iconic Industrial Brands–Huazun Award Ceremony was co-organized by Economy Magazine, China Business Times, the Economic Newspaper & Magazine Association, and the China Economy Innovation Development League in Beijing. Nominations were received from experts, journalists, planners and industry professionals. Candidates were judged by participants on "China Economy” and“315e"websites, according to customer satisfaction, market share and brand influence.
 
Mr. Guo Wei, Chairman and CEO of Digital China, commented, "Leveraging on our extensive experience in serving various industries, outstanding integration ability, state-of-art technology and comprehensive services, Digital China has become an important partner involving in enterprises' entire IT life cycle. The Huazun Award is another affirmation of Digital China's IT service capability. For the upcoming national IT service standards, the Group will provide more comprehensive, standardized and delicate services in the establishment of "Sm@rt City" project, as it is the No. 1 IT services brand in China and one of the participants in the establishment of China IT service standards. We are deeply rooted in China's IT services market and will strive to maintain innovation leadership to fulfill the dynamic demands of our customers."

11/24
2010

Digital China's TDR successfully issued on 24 November

Digital China's TDR successfully issued on 24 November
 
(24 November 2010, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), the largest integrated IT service provider in Greater China, is pleased to announce that the Group successfully issued Taiwan depository receipts (TDR) today on the Taiwan Stock Exchange. It is the largest TDR issuance this year and marks a major breakthrough for the Group's business expansion in Greater China. The issue price is NT$30.2 per unit of TDR (equivalent to approximately HK$7.736) and each unit represents half of a share of Digital China.
 
Digital China's revenue, operating profit and earnings per share grew by a compound annual growth rate of 26.07%, 32.73% and 29.90% respectively over the last five financial years. Urbanization and industrialization are gathering momentum in China. Moreover, the government is stepping up efforts in promoting the convergence of tele-communications, TV and Internet networks, while cloud computing also gains popularity on the Mainland. Such developments offer considerable opportunities to the domestic IT sector. The Group's TDR issuance provides investors in Taiwan with a channel to participate in this growth.
 
According to the draft of the "Twelfth Five-year Plan" put forth by the fifth plenum of the 17th CPC Central Committee, the government will make coordinated efforts in promoting urbanization, informatization and industrialization,leaving plenty of future business opportunities in Sm@rt City's operations. The Development Research Centre of the State Council projected the urbanization rate of China will reach 47.2% by the end of this year. During the period of "Twelfth Five-year Plan", it will climb further to about 51%. When China opened up its economy, the urbanization rate was only 17.9%, however, it shot up to 46.6% in 2009, which just stood at the mid-point of the fast growting period of 30%-60%.
 
The Group's Sm@rt City project addresses the needs of urbanization in China and provides comprehensive solutions to customers. It originally focused on IT distribution operations with comparatively lower profitability. However, as it expanded into higher value-added IT services businesses, profitability has also been substantially improved. This transformation helps to ensure the sustainable growth of the Group's operating results and better returns to shareholders. Digital China has undertaken preparations for Sm@rt City projects in 47 cities across the country. In addition, it successfully rolled out the Citizen Card project in several cities including Yangzhou, Wuxi, Zhangjiagang and Zhenjiang.
 
Mr. Guo Wei, Chairman and CEO of Digital China, commented, "The TDR issuance helps us develop a financing platform linking China, Hong Kong and Taiwan. We can thus have easy access to communication hardware and software providers in Taiwan, which allows us to introduce Taiwan's quality products and services to Mainland China. It creates a win-win situation for both sides. During the accelerating urbanization process on the Mainland, Digital China will work closely with Taiwan's IT brands to expand into 4th to 6th tier cities where we should find ample business opportunities."

11/18
2010

Digital China Partner Summit 2010 Held in Chengdu - To Create Bright Future for Digital City through Convergence

Digital China Partner Summit 2010 Held in Chengdu
To Create Bright Future for Digital City through Convergence
 
(18 November 2010) Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), the largest integrated IT service provider in Greater China, announced that the Digital China Partner Summit 2010 was grandly opened at the Chengdu Pride International Convention Centre. The Group unveiled its latest strategies on the concept of the Sm@rt City at this event. The featured theme was "Digital China, On the Rise" and it put forth informatization solutions to tackle the challenges brought forth by urbanization. Digital China joined IBM, Cisco Systems, Hewlett Packard, Microsoft, Oracle, EMC and Symantec to set out a course for the Sm@rt City.
 
China has become the second largest economic entity in the world. Its outstanding economic performance in 2010 surprised the world as the financial crisis dealt a heavy blow to other regions of the global economy. While the urbanization process is gathering momentum in China, the country is seeing its economy and society rapidly expand. This process will be the driving force for its future development.
 
While reviewing the draft of "Twelfth Five-year Plan" at the fifth plenary session of the 17th Central Committee of the Communist Party of China, the committee pointed out that urbanization and industrialization play and will continue to play a crucial role in China's economic and social development. The committee made it clear that the increase in urbanization rate is a major goal for the next five years. The government will also speed up the convergence of informatization and industrialization, and the informatization process in various fields. The convergence of urbanization, informatization and industrialization will be the foundation of China's future development.
 
It is expected that China's urban population will be over 700 million during the "Twelfth Five-year Plan" and that the urbanization rate will increase to above 50%. Such developments will impose various difficulties on us. For example, cities will encounter bottlenecks in public services, and governments will need to develop new models for population management. One of the major concerns will be how to overcome difficulties arising from traditional vertical management models and the massive flow of population between different cities. The convergence of urbanization and informatization is an obvious solution to these problems.
 
Mr. Guo Wei, Chairman and CEO of Digital China, commented, "Digital networks facilitate such convergence. Let's develop a digital city for each physical city. This is the best way to tackle the problems resulting from urbanization. Our core competence is the capability to realize such convergence, which will help us build a better Sm@rt City."
 
This year sees the tenth anniversary of the Group's listing in Hong Kong. Over the past ten years, the Group has dedicated its effort to build a "Digital China" and has played a leading role in the domestic IT sector. The Group's easy access to global resources and its strong integration capability is the key to developing successful digital cities.
 
Digital China has undertaken preparatory work in 47 cities throughout China for the launch of the Sm@rt City project. It successfully rolled out a Citizen Card project in Yangzhou, Wuxi and Zhangjiagang and has signed an agreement with Zhenjiang Government for the launch of Citizen Card there. These demonstrate the great successes the Group has achieved through its Sm@rt City strategy.
 
On 11 November 2010, Digital China signed a strategic partnership agreement with the Shenzhen Municipal Government for the joint development of informatisation in Shenzhen. We will strive hard to turn Shenzhen into an advanced digital city and model Sm@rt City for the whole nation.
 
Chengdu's IT sector has experienced rapid growth in recent years. To develop Chengdu into a digital city is an obvious development. Digital China is currently working with relevant government departments of the city to develop several demonstration projects for the internet in six major areas. Digital China invited leaders from the world's 500 largest companies to attend the Partner Summit in Chengdu in order to give them have a better understanding of information sector of the city and to promote its cooperation with various parties, thereby driving the growth of Sm@rt city in Chengdu.
 
Looking forward, Mr. Guo Wei said that the experiences accumulated in the past decade enhanced Digital China's integration capability. In the next five years, Digital China will enter a new phase and focus on the development of integration services that are based on the concept of Sm@rt City. The new approach will enable them to realize the convergence of urbanization and informatization. The Group will leverage on cloud computing technology and broadband network to build a data exchange platform for the integration of urbanization and informatisation.
 
Mr. Qian Daqun, President & CEO of IBM Greater China Group and Mr. Chen Shiwei, President & CEO of Cisco's Greater China district, attended the summit, delivered speeches and exchanged views with participants on the convergence of urbanization and informatization. Both IBM and Cisco are senior global partners of Digital China.
 

11/09
2010

Digital China Announces Interim Result for FY2010/11 - Transformation through Service to Enhance Business Value Profitability Sustains Robust Growth

Digital China Announces Interim Result for FY2010/11
--
Transformation through Service to Enhance Business Value
Profitability Sustains Robust Growth
 
(9 November 2010, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group";Stock Code: 00861.HK), China's leading integrated IT service provider, today announced its results forthe six months ended 30 September 2010. ( "Period" )

For the six months ended 30 September 2010, the Group implemented a customer-focused marketing strategy and explored business opportunities in regional markets. As a result, it achieved robust growth in profitability. Meanwhile, it carried out effective risk control measures to ensure strong net cash flow growth, thereby laying a solid foundation for its business expansion in future.

Mr. Guo Wei, Chairman and CEO of Digital China, commented, "In the face of market recovery, Digital China grasped opportunities in the market by accelerating its transformation using a service-oriented approach. IT services operations made a larger contribution to our overall business and reinforced our profitability. After 10 years' of effort, we have made achievements in our development strategy. This not only strengthened our leading position in the market, but also significantly enhanced our profitability."

Financial Review
The Group recorded turnover of HK$27,560 million for the six months ended 30 September 2010, an increase of 12.65% from HK$24,464 million for the corresponding period of last financial year. The growth rate was significantly higher than that of China’s IT market average. During the Period, operating profit increased significantly by 96.64% to HK$529 million from HK$269 million for the corresponding period of last financial year. Profit attributable to shareholders of the parent amounted to HK$537 million, representing a 30.42% growth from HK$412 million for the corresponding period of last financial year. Basic earnings per share grew 23.07% year-on-year to 52.60 HK cents.

Benefiting from stringent risk control measures, the Group’s cash flow from operations grew considerably and its cash turnover rate remained the best in the industry. During the Period, net cash 2 inflow from operating activities was HK$579 million, while cash turnover cycle significantly dropped by 3.84 days to 15.36 days from the same period of previous financial year. Through effective cost control, the Group's overall operating expenses ratio decreased to 4.75% from 4.99% for the same period of last financial year.
 
Business Review
Services Business (with a primary focus on Industry Market)
During the Period, turnover of the Group's Services Business amounted to HK$2,649 million. The contribution of software and IT services operations to our overall business increased substantially and accounted for 56% of total turnover of Services Business. The profitability of software and IT services operations achieved significant gains. Gross profit margin of this segment increased to 14.55% from 13.09% for the corresponding period of last financial year. Gross profit margin for the second quarter was 16.48% as compared to 13.43% for the corresponding period of last financial year. The significant increase in gross profit margin reflected the increased overall profitability of Services Business.

The Group’s role as a leading IT service provider was strengthened as the contract signed of Services Business increased 37% year-on-year in the Period, of which turnover of proprietary services operation advanced by 40% year-on-year. Subsequent to the launch of the Sm@rt City Project Solution Version 1.0, the Group rolled out Version 3.0 in the second quarter of current financial year. In addition to citizen cards, data exchange, integrated tax collection and customs logistics, the latest version is also applicable to new areas such as regional hygiene, smart tourism and information security. As at 30 September 2010, the Group began preparations for the project underway in 47 cities throughout the country. After the successful launch of the "Citizen Card" Project in Yangzhou, Wuxi and Zhangjiagang in the previous financial year, the Group won the "Zhenjiang Citizen Card Full Integration & Application Engineering Project" contract during the second quarter of current financial year. This signifies another landmark triumph for the Group's Sm@rt City business.

Moreover, the Group won the tender for the "Centralized Core Collection and Management System for Provincial Local Taxation" from Hainan's Provincial Local Taxation Bureau due to its extensive experience in the local taxation sector, premier solutions, outstanding service systems and proven track record in the national taxation system. It also won a contract from Bank of Chengdu for the development of a new-generation core business system and made breakthroughs in expanding business with regional banks in the second quarter. In the telecommunications sector, despite various uncertainties in the market, the Group signed an agreement with China Mobile for a Customer Relationship Management (CRM) project and an agreement with China Telecom for an Operational Data Store (ODS) project. The completion of infrastructure networks by telecommunication carriers and integration of three networks will provide the Group with tremendous opportunities in core business systems and value-added operational and maintenance services.

According to IDC, the Group has remained the leading IT service provider in China because of its professional application solutions and services for different industries and capability of delivering standardized and efficient services. It has received various honours including the award of the "2009-2010 Most Satisfactory IT Services Management Solution for State-invested Enterprises Award", "Innovation Award for the Commercialization of Communications Information Technology (IT) Services in China 2010" and the "Golden Award of Satisfaction 2010 for IT Operation Services". These awards should further enhance the market influence of our brand.

Supply Chain Services Business (with a primary focus on the High-tech Industries Market)
For the six months ended 30 September 2010, turnover of the Group's Supply Chain Services business amounted to HK$5,174 million, representing a growth of 10.42% year-on-year. The gross profit margin of this segment increased 0.75 basis points to 3.96%. Turnover from mega Chain Electronic Stores (CES) business jumped 68.69% year-on-year, making the Group the most important supplier to China's mega chain electronic stores. Moreover, Digital China became the largest IT products supplier to Suning and Gome. In order to provide value-added services to customers, our service stations were extended to over 500 nationwide. Turnover from maintenance services increased 34.40% from the previous year, with maintenance orders reaching about 200,000, which was the total number of contracts of last year. The competitiveness of our third-party logistics business continued to improve and we succeeded in getting many new customers. For the six months ended 30 September 2010, turnover for this business increased more than 70% over the same period of last financial year, providing us a solid background to expand our supply chain services business.

Systems Business (with a primary focus on Enterprise Market)
As the enterprise market picked up gradually, management adjusted its business strategy to expand its customer base by exploring and addressing customer needs. For the six months ended 30 September 2010, turnover from Systems Business increased 10.43% year-on-year to HK$6,468 million. Gross profit margin for this segment climbed to 9.33% from 9.21% for the same period of last financial year.

Distribution Business (with a primary focus on SMB & Consumer Markets)
Turnover from the Distribution Business amounted to HK$13,269 million in the six months ended 30 September 2010, up 19.01% year-on-year and above the market average. With a balanced and comprehensive product mix, we cooperated with suppliers to actively expand our business. For the six months ended 30 September 2010, turnover from PC servers and consumer IT products increased 39.26% and 32.81%, respectively, from the same period of last financial year. The increases drove the growth of our overall operations and enhanced our market share. The number of Digital China '@PORT" franchise retail outlets in China increased to 570 from 313 for the corresponding period of
last financial year, hence reinforcing our competitive edges in 4th to 6th tier cities.

Outlook
Mr. Guo Wei, Chairman and CEO of Digital China, said, "The urbanization process will power China's economic growth during the period of the 'Twelfth Five-year Plan'. We will address such change by strengthening our marketing and management systems based on our strategies on the development of Sm@rt City. These strategies will be the driving force behind our future growth. Meanwhile, the volume of imports and exports is set to balloon during the 'Twelfth Five-year Plan' and our business will benefit from the appreciation of Renminbi. Management believes that as the concept of Sm@rt City is fully realized, our business value will be further enhanced and hence lay a foundation for us to achieve the targets set for the full year."

10/28
2010

Digital China Participated in the Establishment of China's IT Standardization

Digital China Participated in the Establishment of China's IT
Standardization
 
(28 October 2010, Hong Kong) To showcase the achievements of information system integration over the last 10 years and advance the development of the industry, the Software Services Bureau of the Ministry of Industry and Information Technology (M.I.I.T) and the Qualification of Computer Information Systems Office co-organized the “10th anniversary of China Computer Information System Integration & 2009 China IT Services Summit” in Beijing in the middle of October 2010. Officials of more than 10 departments of the M.I.I.T, plus over 1,500 representatives, including department heads from software services industry in various regions, local qualification evaluation institutions, regional information system integration corporate, information system project supervisors, typical
industrial users and other professionals in related organizations attended the conference. Meanwhile, during the summit, M.I.I.T. announced the “White Paper on IT Services Standards (First Edition)”.
 
Led by the M.I.I.T., the "Working Group on Standardization of China's IT services" ("Working Group") was founded in 2009. After more than a year of hard work, the "White Paper on IT Services Standards (First Edition)"  was announced. Our Infrastructure Services Strategic Business Unit ("SBU") was appointed a vice leader of the Working Group and the head of the support team, owing to our leadership in the industry and extensive market experience. The Group has become actively involved in developing standards for the IT services sector in China. Mr. Zhou Yibing, President of the Infrastructure Services SBU, said,"'Proficient Service Package' offered by Digital China is based on years of commercialization and standardization experiences and hence contributed to overall standardization in China. Under the guidance and support of the government, we are determined to build out our IT services operations."
 
System integration and qualification evaluation are crucial for the provision of quality information infrastructure and they help promote the development of the IT services industry. IT infrastructure and services also enable us to cover the entire value chain of IT service operations. It can be divided into various parts, including consulting and design, development and implementation, operation and maintenance. The IT services sector is changing continuously and market players must know more about the intrinsic value of IT services in order to create greater value for clients.
 

10/04
2010

Digital China Applies for Listing of Taiwan Depositary Receipts

Digital China Applies for Listing of Taiwan Depositary Receipts

(4 October 2010, Hong Kong) Digital China Holdings Limited ("Digital China" or "the Group"; stock code: 00861.HK), the largest integrated IT services provider in the Greater China area, today announces that the Group made an application on 4 October 2010 for the issue of Taiwan depositary receipts (“TDR”). The Company expects the issue to involve not more than 140,000,000 units of TDR. Each unit of TDR will comprise 0.5 shares of the Company, so no more than 70,000,000 new ordinary shares will be issued by the Company, representing 6.86% of the shares in issue. Another 120,000,000 units of TDR will be offered with ordinary shares underlying, comprising 60,000,000 ordinary shares, representing 5.88% of the shares in issue. The TDRs of the largest integrated IT services provider in Greater China will be available for trading on the Taiwan Stock Exchange.

The Directors are of the view that compared with the cost of other means of fund raising exercises; TDR Issue will be the most appropriate method of raising extra funds for the Group’s future business development. And the Directors believe that the TDR is a good way of broadening the shareholder base, promoting the Group's corporate image internationally, enhancing its competitiveness as a whole.

Digital China is the largest integrated IT services provider in Greater China area, and was listed on the main board of The Stock Exchange of Hong Kong Limited on 1 June 2001. It has 19 regional centers in the major cities of Mainland China, Hong Kong and Macau, providing industry clients, large enterprises and consumers with comprehensive IT products and services, related to IT planning and consultation, industry application and enterprise solution design and implementation, IT system outsourcing, system integration, maintenance, IT professional services and consumer electronics etc. The Company has strong client network and partnership resources in the Greater China area, and has established strategic partnership with over 100 leading global IT manufacturers. The Company has maintained a leading position in various market segments. In particular, the Company ranks among top players in IT volume distribution, value-added distribution and system integration service markets in Mainland China, and also maintain the leading position in government sector, financial industry and telecom industry respectively in the field of software services.

In the 10 years since its establishment, Digital China has seen its profitability expand considerably. It is attributable to huge IT demand in the Mainland China domestic market, excellent risk management skill on the part of the Company, and a successful strategic transformation towards IT services. The Company successfully weathered the impact of the financial tsunami and registered excellent results both in operating performance and stock price. Its share price soared from a low of HK$1.92 in 2008 to a record high of HK$14.38 in March 2010. In September 2009, the Company made its first equity issue since going public nearly 10 years ago, and received an enthusiastic response from the capital market. In Financial Year 2009/10, Digital China achieved operating income of HK$50,178,000,000,

representing an increase of 18.55% from the previous financial year. Its net profit amounted to HK$824,000,000, representing an increase 28.57% from the previous financial year. In 2009 and 2010, the Company was selected by Forbes Asia as one of the "Forbes's Asia Fab 50 Companies" for 2 years in a row.

In 2010, Digital China launched the "Sm@rt City" strategy, which will provide city authorities, enterprises and individual citizens with a wide range of IT products, services and information support infrastructure based on their various needs during the process of IT development for respective cities. It aims at building up a series of IT related operations with regional features in cities. The Company's management is confident of this initiative given the robust urbanization process in China, strong support from government in digital urban planning, as well as the Company's rich talent pool and experience over many years in full-range IT services.

09/18
2010

Digital China Earns Spot on Forbes Asia Fab 50 for Second Straight Year

Digital China earns spot on Forbes Asia Fab 50 for second
straight year
 
(18 September 2010, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), a leading IT services provider in China, announced that Digital China was ranked by Forbes Asia as one of the Asian Fab 50 companies for the second year in a row. The ranking further illustrates the Group's outstanding profitability and continuous growth performance in the Asia-Pacific area.
 
It is the sixth year that Forbes Asia releases its annual ranking of the best of Asia Pacific's biggest listed companies. All candidates must meet a threshold of at least US$3 billion in revenue or market capitalization. The judging panel first screens candidates on their five-year track record of revenue, operating earnings and return on capital. It then looks at their most recent results, share price movement and the outlook for the year ahead. In making its decision, the panel also takes into consideration differences in transparency, accounting and conditions amongst countries.
 
After a rigorous screening, the panel selected Asia's Fab 50 companies from 936 enterprises in the Asia Pacific region. The number of candidates rose from 910 companies last year, reflecting the recovering Asia-Pacific economy. These companies included not only giant enterprises, but also fast growing smaller businesses. It is noteworthy that 20 companies (or 2/5) on the list are from China, while 10 companies (or 1/5) are from the technology industry.
 
Ms. Wycee Liu, spokesperson of Digital China, commented, "Ranking in Asia's Fab 50 companies again is a precious milestone for us after the financial crisis in 2008, the weak market in 2009 and the European debt crisis in the first half of this year. This honor is a result of the selfless contribution of our management and staff over the last 10 years. Though our achievements are clear to the market, we have a long way to go to fulfill our mission of "Digitized China" and the strategic transformation to IT service is just beginning. We will continue to implement our strategy of being“customer-focused, service-oriented" to enhance enterprise value and returns to shareholders."

09/10
2010

Digital China Wins Bid for New Core Banking System at Bank of Chengdu - Enters Harvesting Phase of Strategic Marketing

08/24
2010

Digital China Announces 1Q FY2010/11 Results

Digital China Announces 1Q FY2010/11 Results
--
Steady Growth Overall
Operating Income Surged 1.4 times
 
(25 August 2010, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), China’s leading integrated IT service provider, today announced its results for the three months ended 30 June 2010.

For the three months ended 30 June 2010, the Group sustained growth in its businesses overall, highlighted by substantial growth in operating profit and ongoing improvements in the profitability of its principal businesses. Meanwhile, we reported sound operating cash flow coupled with trimmed expense ratios, underpinning our success in steering a balanced course between business growth and risk control. All in all, we have made a positive start to the financial year and are well on course to fulfilling our business and management objectives for the year.

Mr. Guo Wei, Chairman and CEO of Digital China, commented, “Digital China has listed in Hong Kong for almost 10 years. Since the company was set up, the management team has been adjusting our strategy in response to changes in the IT market. At the same time, our service-driven transformation since 2007 has achieved a certain degree of success. For the three months ended 30 June 2010, the Group reported significant growth in contract values of software and services as the Services Business sector capitalized on the market rebound, while the Distribution Business sustained rapid growth after seizing market share. However, uncertainties remain in the economic recovery and customers are cautious on IT spending. In order to deal with such situation, the Group will continue to implement the transformation strategy of being “customer-focused and service-oriented”. We will uncover opportunities in sub-segment markets and take marketing campaigns to new frontiers with an ongoing effort to forge an excellent marketing regime.”

The Group recorded turnover of HK$13,010 million for the three months ended 30 June 2010, an increase of 22.04% compared to HK$10,660 million for the corresponding period last financial year. Our growth surpassed growth in China’s IT market in general. During the period under review, the Group reported ongoing improvements as highlighted by a 139.58% growth in operating profit to HK$287 million from HK$120 million for the corresponding period last financial year. Profit attributable to shareholders of the parent amounted to HK$290 million, representing 10.80% growth as compared to HK$262 million for the corresponding period last financial year. Basic earnings per share grew 4.44% to 28.45 HK cents year-on-year.

Due to the consistent and continuing implementation of stringent risk control measures and cash flow management, the Group was able to secure stable and healthy business growth. For the period under review, net cash inflow from operating activities was HK$20 million. The overall cash turnover cycle was 15.39 days, which was significantly 7.01 days less than the corresponding period last financial year. The overall operating expense ratio of the Group for the three months ended 30 June 2010 decreased to 4.58% compared to 5.30% reported for the corresponding period last financial year.

Business Review

Services Business
(with a primary focus on Industry Market)

During the period under review, turnover of the Group’s Services Business amounted to HK$1,386 million, representing a year-on-year increase of 12.16% as compared to HK$1,236 million reported for the corresponding period last financial year. Profitability improved in this segment 15.05% to HK$26 million. As we focus on the development of industry market, the Group sustained growth in contract values of software and services. Moreover, the Group’s position as a service provider has been further strengthened.

In the financial sector, the Group maintained leadership in domestic core banking system construction and made a good start for the new financial year. The Group won the tender for the core banking system project for a new city commercial bank. Progress was made in its attempt to sign up certain joint-stock banks and rural banks as customers. In the government sector, we are looking forward to sustainable, in-depth development of taxation systems after the successful tap of local tax administrations on the back of our vast experience with the national taxation system. Meanwhile, the Group continued to make progress in the Sm@rt City Project by winning the tender for the citizen card project of Zhenjiang, which will be the fourth city to launch the citizen card after Yangzhou, Wuxi and Zhangjiagang.

The Service Business division walked away with two major awards, the “Premium Brand Name for Customer Satisfaction in China’s IT Maintenance Service Market” and the “Best National Exemplary Brand Name for Customer Satisfaction in IT Maintenance Services”, in a campaign known as the “National Public Poll on Public Satisfaction with Service Businesses”. These awards reflect the industry’s overwhelming recognition of Digital China’s service capabilities.

Supply Chain Services Business (with a primary focus on the High-tech Industries Market)
For the three months ended 30 June 2010, turnover of the Group’s Supply Chain Services business amounted to HK$2,325 million, representing a growth of 26.10% year-on-year. This segment’s gross profit margin increased 0.52 basis points to 4.16%. Revenue from mega Chain Electronic Stores (CES) business recorded a year-on-year growth of 115.22% to become the most important supplier of China’s chain stores. Meanwhile, the Group continued to foster the long-term competitiveness of its third-party logistics business within the Supply Chain Services Business by enhancing the development of internal capabilities and process streamlining. New customers were secured during the first quarter of the financial year, contributing to steady turnover growth.

Systems Business
(with a primary focus on Enterprise Market)
The Group’s Systems Business is near the end of a low-growth period. It is focused on identifying new key customers’ demands as well as developing new accounts. It strived to secure more favorable products and policies at the beginning of the current financial year. Turnover of the Group’s Systems Business for the three months ended 30 June 2010 amounted to HK$ 3,128 million, representing 14.69% growth year-on-year. Segment results of the business were up 136.89% to HK$152 million. Gross profit margin significantly widened to 9.61% from 8.37% for the corresponding period last financial year. By adopting customer-focused strategy, the Group continued to strenghten and expand its regional markets as well as to improve its capabilities in providing solutions. For the period under review, the Group’s regional customer business reported year-year growth of 45.83%, laying a solid revenue growth of the Systems Business.

Distribution Business (with a primary focus on SMB & Consumer Markets)

Turnover and segment results of the Group’s Distribution Business for the three months ended 30 June 2010 amounted to HK$6,171 million and HK$103 million respectively, representing 27.14% and 50.93% growth year-on-year, respectively. This beat the market’s overall growth rate. The Group’s Distribution Business reported year-on-year turnover growth of 65.61% and 54.30%, respectively, in the major business sectors of PC servers and consumer IT products. Due to advanced business planning that commenced in the previous financial year, we also secured distribution rights for a range of intelligent products, such as the Apple iPhone/iPad, panel computers, smart phones and e-books, etc to address robust demand for products with 3G applications. We were also appointed as an authorised national service provider for China’s big-three carriers, namely China Mobile, China Unicom and China Telecom, after successfully obtaining nine qualifications from them. The appointments should pave the way to future business growth and further market share capture. For the three months ended 30 June 2010, turnover from 4th to 6th tier cities grew 45.30% compared to the corresponding period last financial year. The Group’s competitive edge in 4th to 6th tier cities has also been further enhanced with the presence of
503 Digital China “@PORT” franchise retail outlets in China.

Outlook
Mr. Guo Wei, Chairman and CEO of Digital China, said, “The Group grew even stronger after gaining experience from the financial crisis in 2008, the weak market in 2009, as well as the European debt crisis in the first half of this year. While we are aware that FY2010/11 will be full of challenges, management is determined to add value for shareholders by fulfilling the performance benchmarks set for the financial year.”

After attaining all benchmark indicators for business performance and risk management set for the first quarter ended 30 June 2010, the management team will continue to implement the transformation strategy and seeks to consolidate or even extend its market share by seizing opportunities in the market. Meanwhile, the Group will make further improvements in fundamental management, with a view to enhancing its overall competitiveness and operating profit as well as lowering its costs.

07/20
2010

Digital China Announces FY09/10 Annual Results

Digital China Announces FY09/10 Annual Results
--
Strategic Marketing to Promote Transformation to IT Services
Turnover Growth Continues to Outperform the Market Average
 
(21 July 2010, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), China's leading integrated IT service provider, today announced its annual results for the year ended 31 March 2010 (the "Review Period").

Mr. Guo Wei, Chairman and CEO of Digital China, commented, "The market conditions around the world and in China were very difficult and full of uncertainties over the past year. However, we were well prepared to tackle the challenges. We took an active approach to respond to the changes in market environment and captured the opportunities that arose. During the period under review, the Group achieved all targets in the fields of corporate management, operating results and risk control. The value and profitability of our IT service business continued to improve. Besides, the extensive market coverage of our software service business helped us preempt and outperform our peers in the development of government software solutions business. Our software solution products experienced phenomenal growth and we got the contracts for projects with high growth potential including "Sm@rt City", state and local taxation system project. Meanwhile, our core banking products were widely acclaimed in the market for their supreme quality. These products further strengthened our competitive edges. The Group's exposure to the telecommunication sector was well-balanced, with coverage of China Mobile, China Unicom and China Telecom."

Financial Review
During the Review Period, various sectors in China operated in a complicated and severe environment due to the impact of financial crisis. In response to the difficult condition, management of the Group further proceeded with the "customer-focused and service-oriented" strategy. By defining the Review Period as "Year of Strategic Marketing", the Group shrewdly explored and seized opportunities in different sectors arising from the ever-changing macro-environment and launched large scale customer-focused marketing campaigns. As a result, the Group met various operational targets and achieved excellent operating results.

The Group recorded turnover of HK$50,178 million for the Review Period, representing an increase of 18.55% from HK$42,326 million in the previous financial year. The growth rate stayed above that for China's IT industry. Gross profit was HK$3,300 million, an increase of 11.53% year-on-year. Profit attributable to the equity holders of the parent reached HK$824 million, an increase of 28.57% year-on-year. Basic earnings per share amounted to 83.12 HK cents, an increase of 24.84% year-on-year. Due to its enhanced efforts in cost management, operating expense ratio continued to decrease. Overall operating expense ratio declined to 5.49% in the Review Period from 5.96% in the previous financial year. During the Review Period, cash turnover ratio decreased by 4.44 days to 19.22 days from the previous financial year, which was among the lowest in the industry.


Services Business (primary focus on Industry Market)
During the Review Period, the Group stepped up efforts in raising the contribution of software and IT service operations to Services Business segment and reduced its reliance of hardware delivery business. As a result, the value and profitability of Services Business segment made a significant improvement. Turnover from this segment was approximately HK$4,698 million, a slight decrease from the previous financial year. Nevertheless, gross profit margin increased remarkably to 14.82% from 13.41% in the previous year. Software solutions business grew robustly, with the Group's successful implementation of a number of large IT solutions projects. In the financial sector, the Group helped Qilu Bank and Jinshang Bank launch their core banking systems and Jinzhong City Commercial Bank launch debit card system. Moreover, it signed a contract with Bank of Xuchang for the application software of core banking system and related services.

In the government sector, the Group got two consulting bids relating to the Golden Tax Project Phase III of the State Administration of Taxation in August 2009. Besides, the Sm@rt City project was successfully launched in various cities in the PRC, which not only greatly promoted the informatization development in the cities of the country, but also helped the Group firmly establish its leading position in this field. Citizen card program is a part of the Sm@rt City project. Citizen cards were issued in Wuxi and Zhangjiagang following their successful launch in Yangzhou in May 2009.

Supply Chain Services Business (primary focus on High-tech Industries Market)
During the Review Period, Supply Chain Services Business segment reported turnover of HK$8,775 million, representing a substantial growth of 65.89% over the previous financial year. This business segment played an important role for the Group to realize operational targets and became a new driver of its business growth. Turnover from the Fulfillment business (FA business) grew by 60.15% over the previous financial year on the back of closer cooperation with manufacturers such as HP and Dell, while turnover from its mega Chain Electronic Stores (CES) significantly increased by 90.21% over the previous financial year owing to the introduction of new products, business model innovation and improved operating process. Meanwhile, the Group made breakthroughs in the development of corporate supply chain services business and became services provider to famous enterprises such as PetroChina and BYD.

Systems Business (primary focus on Enterprise Market)
Management of the Group actively adjusted business strategies to stimulate customers' demands. During the Review Period, Systems Business segment generated turnover of HK$13,983 million, an increase of 4.70% over the previous financial year. This segment experienced persistent growth over the past two years and achieved breakthroughs in the expansion of local customer business. The Group's IT solutions capabilities were therefore continuously improved. During the Review Period, business from local customers increased by more than 56% year-on-year, providing stable income to support the development of Systems Business. During the Review Period, driven by robust demand from China's telecommunications and financial sectors in 2009, turnover from the sale of storage products soared by 42.50% over the previous financial year.

Distribution Business (primary focus on SMB & Consumer Markets)
The Group reinforced its leading position in the distribution business sector through rapid expansion of business. Profitability of its Distribution Business segment was further improved. This segment reported turnover of HK$22,722 million, an increase of 20.88% over the previous financial year. Gross profit margin of this segment slightly increased and reached 4.40%. Sales of notebooks, PC servers, consumer IT products grew significantly by 48.98%, 55.44% and 34.25% year-on-year, respectively, driving the vigorous growth of turnover from Distribution Business segment.

The Group made breakthroughs in exploring new business in consumer and commercial business sectors. It was appointed by China Mobile as its Top Tier Distributor in the first quarter of FY09/10 and entered into agreement with China Unicom in the second quarter to become its nation-wide partner for WO-3G business with special emphasis on the iPhone. Digital China is the national distributor in the country providing distribution services to the three domestic telecommunications giants: China Mobile, China Unicom and China Telecom. During the Review Period, its regional network and channel development were further expanded with franchised retail outlets of Digital China "@PORT" on Mainland China increased to 422. The expansion of distribution network led to an increase of more than 70% in turnover from fourth to sixth-tier cities over the previous financial year, thereby further enhancing the Group's leading position and competitive edges of distribution business in these cities.

Outlook
The Chinese and global economies have entered the "post-financial crisis era" since the beginning of 2010. While the macro economy is recovering gradually, the Chinese government takes initiative to prevent the Chinese economy from overheating. As a result, domestic economy is full of uncertainties this year. On the other hand, the IT industry in China has gradually transformed from distribution of hardware to IT services and this process is accelerating. The IT services sector will play a more important role in the future. In the face of challenges and opportunities, Digital China, as a pioneer of IT services in the country, will continue to implement the established strategies. Leveraging on solid business foundation and extensive customer base, the Group will step up efforts in expanding IT services business in order to ensure its sustainable growth. Management believes that by sticking to these strategies, the Group will sustain persistent growth and deliver greater value to shareholders and customers.

07/11
2010

Digital China Wins Bid for Local Taxation System Project in Hainan Province

Digital China Wins Bid for Local Taxation System Project in
Hainan Province
 
(12 July 2010, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), a leading integrated IT services provider in China,today announced that the Group won the bid for "local taxation collection and administration core system" project in Hainan Province on the merit of its competitive advantages, which include extensive industry experience, outstanding solutions and excellent system service.
 
The "local taxation collection and administration core system" is a comprehensive system covering shroff counter service, tax collection, administration, audit and tax payment services. "Informatization" development will play an important role in the strategy to develop Hainan Province as an international tourist destination announced by the central government. As a result, the Hainan government has stepped up its intelligent information system development on the island. Digital China astutely identifies and attaches great importance to high potential opportunities arising from the development of the Hainan tourist island, Yangpu Bonded Port, Hainan Ecological Software Park and the Sanya Creative Industrial Park. Management visited Hainan in April 2010 and agreed with the provincial government to cooperate strategically. In addition, it maintained regular contact with local authorities responsible for information technology and put forth detailed proposals for cooperation. The Hainan government highly appreciated the Group's efforts and proposals. In the end, Digital China won the local taxation system project bid.
 
Through the implementation of Hainan project, the Group will further consolidate various taxation authorities' systems in order to reduce systems costs. The move will also provide the Group with a solid platform to promote its services in other cities. The development of Hainan Province's "local taxation collection and administration core system" enables the Group to expand its associated businesses in the taxation sector, ensuring its sustainable growth in this field in the following years. Digital China has been a long-term partner with the State Administration of Taxation. The Group developed the China Taxation Administration Information System ("CTAIS") that has been used in the national taxation system for years. Digital China won bids for demand management as well as master planning, design and project management consulting under Phase III of the "Golden Tax Project".
 
Mr. Guo Wei, Chairman and CEO of Digital China, commented, "The Hainan project is our another achievements subsequent to our success in procuring local taxation collection and administration core systems bids in Liaoning and Shandong Provinces. We are making great strides as we expand in the taxation sector. Moreover, this project paves a solid foundation for smart city development in Hainan Province. The Hainan project augers well for our development in financial year of 2010/11 and demonstrates that our efforts in promoting informatization development in urban areas pay off. China is actively promoting smart city development in domestic cities. As a pioneer and market leader in promoting‘Digitized China’, the management believes that leveraging on its proven solutions and extensive market experience, Digital China is set to further expand its business coverage in China."

05/12
2010

Digital China joins Cisco Systems to showcase, "Smart + Connected Life" at World Expo in Shanghai

Digital China joins Cisco Systems to showcase
"Smart + Connected Life" at World Expo in Shanghai

(12 May 2010, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), a leading integrated IT services provider in China, joins its long-term strategic partner Cisco Systems to showcase how innovative technology makes future life more convenient at the expositions themed "Smart + Connected Life" held at the Cisco Pavilion in the Shanghai World Expo.

Digital China has been a long-term strategic partner of Cisco Systems in China since 1997. As a senior sponsor of core network equipment and solutions for the Shanghai World Expo, Cisco Systems joins hands with Digital China to present "Smart + Connected Life" to visitors through smart city management solutions, which include public services management centre solutions, UC electricity solutions for integrated office platform and other related IT service solutions.

Zhou Yibing, President of Digital China System Integration Strategic Business Unit, said, "Our mission is to drive technological innovations for work and life and to enhance the digitalization process in China, which coincides with the theme of the Cisco Pavilion of creating a smart future city. We are glad to cooperate with Cisco Systems to realize the vision of 'Smart + Connected Life'. As a leading IT services provider for system integration in China, Digital China will leverage on its 20 years of experience in IT service sector, unparalleled services and products, a variety of solutions and the global best practice of Cisco Systems to give visitors a thorough introduction of smart future city and smart connected life."

With the progress of information technology, future city will evolve to be more intelligent and informatized. Digital China's smart city management solutions are designed to improve IT infrastructure in urban areas and to provide solutions for various uses such as logistics, operation, communications, education, electricity and medical services in addressing needs of different walks of life. With high connectivity, completeness, usability and efficiency, they will change the traditional community into the connected community. By then, people can easily access office voice systems at anytime and anywhere; use mobile office and share resources; select the best route through real-time traffic information; get the best treatment at any time from anywhere. All these long-cherished dreams will come true and urban residents, enterprises as well as government will enjoy highly efficient, modern and intelligent life, which will further enhance quality of life while strengthen environmental protection and promote social and economic sustainable development.

04/28
2010

Digital China Joins BlackBerry Alliance Program

Digital China Joins BlackBerry Alliance Program
 

(28 April 2010, Hong Kong) Digital China Holdings Limited (“Digital China” or the “Group”; Stock Code: 00861.HK), a leading integrated IT services provider in China, today announced it has joined the BlackBerry® Alliance Program as an Elite member.

As an Elite member of BlackBerry Alliance Program, Digital China aims to integrate resources from sales and management so as to fully explore the potentials of mobile applications for local developers and system integrators, which assists RIM to further enhance the BlackBerry developer ecosystem in China.

Guo Wei, Chairman and CEO, Digital China, said, “As a leading IT service provider in China, Chinese enterprises as well as consumers look to Digital China for its breadth of knowledge and expertise in mobile applications. With support from RIM, we aim to foster local talent and bring more local applications for both business and personal use to customers on the BlackBerry platform.”

Gregory Shea, Managing Director, China, Research In Motion, said, “We are very pleased that Digital China has joined the BlackBerry Alliance Program. Digital China’s expertise in the industry is a welcome addition to the BlackBerry ecosystem in China and will help bring more local applications to the market.”

04/26
2010

Digital China will receive support from the national independent innovation demonstration zone in the Z-Park for development into an enterprise with market value of hundreds of billions dollars

Digital China will receive support from the national independent
innovation demonstration zone in the Z-Park for development into
an enterprise with market value of hundreds of billions dollars

(26 April 2010, Hong Kong) Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK), a leading integrated IT services provider in China, is pleased to announce that the Group was chosen by the national independent innovation demonstration zone in the Zhongguancun Science Park (Z-Park) as one of the targets to be developed into enterprises with market value of hundreds of billions dollars, mainly due to its rapid growth, outstanding operating results, excellent innovation capability and good corporate governance practice.

In order to carry out the State Council's decision to accelerate the expansion of the national independent innovation demonstration zone, the Z-Park has implemented a project aiming at developing more than 200 leading enterprises with certain scales and innovation capability into influential enterprises with market value of hundreds of billions dollars, enterprises with market value of tens of billions dollars which will drive the market growth, and rapidly expanding enterprises with market value of billions dollars,  respectively. They will receive tailor- made policy and resources support. The companies which are chosen to be developed into enterprises with market value of hundreds of billions dollars include Digital China, Lenovo, Nokia and Beijing Founder, while those will be developed into enterprises with market value of tens of billions dollars include Potevio, Tsinghua Tongfang and Sinovel Wind. The companies which will be developed into enterprises with market value of billions dollars include Huawei, Oracle and Ultrapower Software. The management committee of the Z-Park will provide support to targeted companies on various areas such as market development, enhancement of innovation capability, talents recruitment and motivation of talents, development of R & D and production bases, listing and M&A, brand building, development of intellectual property and standards upgrading.

Ms. Wycee Liu, spokesperson of Digital China, commented, "It's a strong drive force and of great significance to us that Digital China will receive support from the Z-Park for our development into an enterprise with market value of hundreds of billions dollars. Under the government's significant support, we will speed up the strategic transformation towards IT services and continue to improve our innovation capability, with an aim to become an enterprise with market value of hundreds of billions dollars and a leading IT company with global influence."
 

04/20
2010

Digital China receives "China's Most Promising Companies 2009" award

Digital China receives“China’s Most Promising Companies 2009” award
 
(20 April 2010, Hong Kong) Digital China Holdings Limited (“Digital China” or the“Group”; Stock Code: 00861.HK), a leading integrated IT services provider in China, was ranked by The Asset magazine as one of “China’s Most Promising Companies2009” in recognition of its excellent operation and management, outstanding resultsand good corporate governance practice. Mr. Lin Yang, President of Digital China, received the award at a ceremony held in Hong Kong today. Meanwhile, the Group is pleased to announce that its Citizen Card solution was presented the “China Informatization Project Award 2009” at The China Computer World’s CIO & CEO Summit 2009 (“CIO & CEO Summit 2009”).
 
Mr. Lin Yang, President of Digital China, said, “It is a great honour for us to be named by The Asset magazine as one of China’s Most Promising Companies in 2009. This not only reflects on the optimism of international investors about the outlook for Digital China’s IT expansion in China, but also shows a strong market confidence in our ‘customer-focused and service-oriented’ development strategy. We have achieved robust growth in our IT service business after years of effort. Our innovation capability and competitiveness have continued to improve. Our IT solutions have been well received by many industries. Moreover, our Citizen Card solution won the ‘China Informatization Project Award’ in recognition of our significant contribution to national IT development.”
 
The Asset magazine invited investment experts and financial analysts to select“China’s Most Promising Companies 2009” according to a series of rigorous selection criteria such as revenue and profitability, management quality, corporate governance standards, business attitudes towards minority shareholders and the effectiveness of investor relations. Digital China was ranked third in the technology sector due to its leading position in the market, high standards of corporate governance, clear operating strategies and outstanding IT products and services.
 
Meanwhile, the “China Informatization Project Award 2009” was aimed at recognizing IT projects which made significant contributions to the country and society, stimulated the upgrading of IT and promoted informatizational development in China. The Citizen Card solution developed and promoted by Digital China has become an effective means of improving urban management and offers a lot of convenience to residents. It sets a trend for future development of China’s IT growth. After being rolled out in Yangzhou last year, the Citizen Card was launched in major cities in the Yangtze River Delta such as Wuxi and received enthusiastic responses from users.

04/19
2010

Digital China Staff Hope Charity Foundation donates RMB 2 million to earthquake-stricken Yushu, Qinghai Province

Digital China Staff Hope Charity Foundation donates RMB 2 million to earthquake-stricken Yushu, Qinghai Province


(19 April 2010, Hong Kong) Digital China Holdings Limited (“Digital China” or the“Group”; Stock Code: 00861.HK), a leading integrated IT services provider in China, today announced that “Digital China Staff Hope Charity Foundation” donated RMB2 million to Yushu County, Qinghai Province which was hit hard by severe earthquakes. In addition, the Group contributed 24 large backup steel tents previously used in relief efforts in Sichuan earthquake to Yushu County.

Digital China Staff Hope Charity Foundation said, “About ten thousand Digital China’s staff members have made donations to help the victims of Yushu earthquake to ride out their difficulties.”

Digital China Staff Hope Charity Foundation was initiated by Digital China’s staff on their own with an aim to improve education in impoverished areas in China. It has made contributions for the construction of 10 hope schools in the Sichuan and Hubei Provinces. It joined hands with Digital China to donate more than RMB5 million worth of money and materials to the earthquake-stricken area in Wenchuan County, Sichuan Province.
 

02/09
2010

Digital China Announces 3Q FY09/10 Results

01/20
2010

Digital China and Octopus Form Partnership to Jointly Develop Citizen Card Application Solutions and Operational Service in Mainland China

Digital China and Octopus Form Partnership to Jointly
Develop Citizen Card Application Solutions and
Operational Service in Mainland China

Joint Venture Integrates China and Hong Kong Know-how in Smart
Card and IT Solutions to Develop Innovative Services for Ultimate
Convenience

(Hong Kong,20th January 2010) Digital China Software Limited (hereafter "Digital China Software"), a subsidiary of Digital China Holdings Limited (Stock Code: 00861.HK) and Octopus China Investments Limited (hereafter "Octopus China Investments"), a wholly-owned subsidiary of Octopus Holdings Limited today signed a momentous agreement to establish a joint venture Digital China Octopus Information Technology Services Limited (hereafter "Joint Venture") to develop application solutions and operational services for Citizen Cards in Mainland China.

With a total investment of RMB120 million, the Joint Venture will be headquartered in Beijing and is expected to begin operations within this year. Digital China Software and Octopus China Investments hold 51% and 49% of the capital of the Joint Venture respectively.

According to the joint venture agreement, the Joint Venture will provide application solutions and operational services to Citizen Cards issued in municipal cities of Mainland China. Services will include developing new application systems for Citizen Cards, providing day-to-day operational services and support, and exploring value-added application solutions and services to support the development of "Digital City" in Mainland China. "Digital City" is one of the key development strategies of Chinese municipal governments, which aims to create a robust information technology (IT) platform to enhance the efficiency of municipal management services and to offer convenient, efficient and reliable services to their people.

As China's largest integrated IT services provider, Digital China has already signed contracts with a number of cities to build Citizen Card systems and some cities have already issued their Citizen Cards.

Digital China Software and Octopus China Investments will utilise their strengths to the fullest in the Joint Venture. Octopus is one of the world's most widely used smart cards with more than 95% of Hong Kong residents using it on a daily basis. Leveraging Octopus' rich experience in developing and operating contactless smart card systems, as well as Digital China’s expertise in IT applications and in-depth knowledge of the China market, the Joint Venture will focus on expanding the range of applications of Citizen Cards. In addition, the Joint Venture will also provide operational services in an effort to promote the development of application know-how and services of Citizen Cards in Mainland China.

"We are confident that our co-operation with Octopus will achieve positive results. By combining the experience and expertise of both sides, the Joint Venture is set to enjoy a strong competitive edge, which will effectively support our business development efforts in building a ‘Digital City'," says Guo Wei, Chairman and Chief Executive Officer of Digital China Holdings Limited. "As a leading integrated IT service provider in Mainland China, our Citizen Card solutions have been taking the lead in the market. Through the Joint Venture, Digital China can explore more opportunities for operational business of smart cards, so that we can provide more quality services to the government in various areas in realisation of the 'Digital City' plan."

"We are delighted to be able to work with Digital China to provide application and operational services for Citizen Cards in Mainland China. It has always been a core strategy of Octopus to tap into the enormous China market, and the Joint Venture certainly marks a remarkable step forward in the implementation of this long-term growth strategy," Prudence Chan, Chief Executive Officer of Octopus Holdings Limited says. "Over the years, Octopus has been actively promoting around the world the technological know-how and best practices of the Octopus contactless smart card, so as to make everyday life easier for people in other cities and countries. We will share through this Joint Venture our unique experience of developing and operating smart cards in Hong Kong, with the aim to contribute to the development of innovation services related to Citizen Cards in the Mainland."

Citizen Cards are chip cards issued by citizen card companies authorised by municipal governments in Mainland China. Based on the vision of "Comprehensive Profiling, Lifetime Services", the multi-function Citizen Cards are designed to provide an all-in-one solution for identity certification, data storage and payment. Citizen Card holders can enjoy government services such as social security, medical and healthcare, cultural and educational, civil affairs (including preferential and pension services), population and birth planning, and residential property management. Citizen Cards also enable use of public utility and commercial services such as paying public transport fares and water, electricity and gas bills. About 10 cities around China, including Hangzhou and Ningbo of Zhejiang province; Nanjing, Wuxi, Suzhou and Yangzhou of Jiangsu province, as well as Yantai of Shandong province have issued their Citizen Cards. Offering convenient, efficient and reliable services by Citizen Cards has now become a key home affairs project in many Chinese cities.

11/26
2009

Digital China Ranked by the Asset as One of China’s Most Promising Companies


11/10
2009

Digital China Announces FY09/10 Interim Results


11/04
2009

Digital China Software and SJI Will Form a Strategic Partnership to Jointly Develop Businesses in China and Japan


辽宁省辽阳县“智慧农村6+1管理服务平台”
国内首个智慧农村核心系统,其创新的管理模式被中组部作为内部学习推介的标杆 。平台提供多服务端和全方位应用,涵盖了组织部、纪委、政法、民政、农业等多个体系,实现了农村基层管理标准化、协同化、流程化,在基层管理工作中发挥了重大作用,密切了党群、干群关系,打通了服务群众的“最后一公里”。 国内首个智慧农村核心系统,其创新的管理模式被中组部作为内部学习推介的标杆 。平台提供多服务端和全方位应用,涵盖了组织部、纪委、政法、民政、农业等多个体系,实现了农村基层管理标准化、协同化、流程化,在基层管理工作中发挥了重大作用,密切了党群、干群关系,打通了服务群众的“最后一公里”。 国内首个智慧农村核心系统,其创新的管理模式被中组部作为内部学习推介的标杆 。平台提供多服务端和全方位应用,涵盖了组织部、纪委、政法、民政、农业等多个体系,实现了农村基层管理标准化、协同化、流程化,在基层管理工作中发挥了重大作用,密切了党群、干群关系,打通了服务群众的“最后一公里”。 国内首个智慧农村核心系统,其创新的管理模式被中组部作为内部学习推介的标杆 。平台提供多服务端和全方位应用,涵盖了组织部、纪委、政法、民政、农业等多个体系,实现了农村基层管理标准化、协同化、流程化,在基层管理工作中发挥了重大作用,密切了党群、干群关系,打通了服务群众的“最后一公里”。 国内首个智慧农村核心系统,其创新的管理模式被中组部作为内部学习推介的标杆 。平台提供多服务端和全方位应用,涵盖了组织部、纪委、政法、民政、农业等多个体系,实现了农村基层管理标准化、协同化、流程化,在基层管理工作中发挥了重大作用,密切了党群、干群关系,打通了服务群众的“最后一公里”。 国内首个智慧农村核心系统,其创新的管理模式被中组部作为内部学习推介的标杆 。平台提供多服务端和全方位应用,涵盖了组织部、纪委、政法、民政、农业等多个体系,实现了农村基层管理标准化、协同化、流程化,在基层管理工作中发挥了重大作用,密切了党群、干群关系,打通了服务群众的“最后一公里”。 国内首个智慧农村核心系统,其创新的管理模式被中组部作为内部学习推介的标杆 。平台提供多服务端和全方位应用,涵盖了组织部、纪委、政法、民政、农业等多个体系,实现了农村基层管理标准化、协同化、流程化,在基层管理工作中发挥了重大作用,密切了党群、干群关系,打通了服务群众的“最后一公里”。 国内首个智慧农村核心系统,其创新的管理模式被中组部作为内部学习推介的标杆 。平台提供多服务端和全方位应用,涵盖了组织部、纪委、政法、民政、农业等多个体系,实现了农村基层管理标准化、协同化、流程化,在基层管理工作中发挥了重大作用,密切了党群、干群关系,打通了服务群众的“最后一公里”。 国内首个智慧农村核心系统,其创新的管理模式被中组部作为内部学习推介的标杆 。平台提供多服务端和全方位应用,涵盖了组织部、纪委、政法、民政、农业等多个体系,实现了农村基层管理标准化、协同化、流程化,在基层管理工作中发挥了重大作用,密切了党群、干群关系,打通了服务群众的“最后一公里”。