News Center
03/30
2020

DC Holdings Doubles Net Profit in 2019, Smart Industry Chain and Smart City Business Lead the Growth

(30 March 2020, Hong Kong) Digital China Holdings Limited (“DC Holdings” or the “Group”; Stock Codes: 00861.HK) is pleased to announce its annual results for the year ended 31 December 2019 (the “Reporting Period”).

In 2019, DC Holdings’ Smart Industry Chain and Smart City business both achieved remarkable breakthroughs, leading to overall revenue and profit growth, the Group’s revenue was approximately HK$17,727 million, representing a year-on-year increase of 16.21%. The gross profit was HK$3,155 million, a year-on-year increase of 8.43%, and the gross profit margin was 17.80%. The profit attributable to shareholders of the parent company was approximately HK$ 302 million, a significant increase of 101.78% year-on-year.

Revenue of Smart Industry Chain surged 42.26%, with segment profit exceeding HK$100 million

IT Logistics is a leading end-to-end integrated service provider for smart industry chain. IT Logistics recorded a turnover of HK$5,374 million, a substantial increase of 42.26% year-on-year; the gross profit was HK$690 million and the gross profit margin was 12.84%. IT Logistics achieved a profit turnaround with a segment profit of HK$106 million.

Relying on its core strategy of “Supply Chain + Big Data +Artificial Intelligence Internet of Things (AIoT)”, IT Logistics improved its synergy efficiency between the supply chain’s upstream and downstream through the continuous increase in investment of research and development, upgrade of logistics collaborative management software, and combination of the “Software Internet” products of DC Holdings. With the intelligent services based on big data products “KingKoo Data”, IT Logistics provided customers with differentiated services and continued to improve the company’s service competitiveness, including the artificial intelligence solutions “Human+Robot” series, new AIoT product series such as “Jieyunbao”(捷運寶) and e-signing product “Jieyun Express”(捷雲快簽) etc.

In 2019, IT Logistics once again set a new industry record of 3 million orders in one single warehouse during the Double Eleven Shopping Festival. After expanding the cooperation with core customers in China market, IT Logistics is rapidly growing its overseas business by leveraging the development opportunities brought by the Belt and Road Initiative. It successfully won the bids for ZTE’s projects in Malaysia and contracted to build warehouses in Hong Kong, Kuala Lumpur, Kuching and Kota Kinabalu, as well as a new NVG central warehouse in Jarkata, Indonesia.

“Yan Cloud DaaS” contributed to win multiple high-value Smart City projects, and was instrumental in the fight against the epidemic

Based on the characteristics of each city and core technologies of DC Holdings, DC Holdings successfully built the "Smart City 3.0" deep penetration model with an integrated management of industry, city and people. During the Reporting Period, the overall turnover of the Smart City business reached HK$327 million; the gross profit was HK$74.69 million and the segment profit was HK$11.49 million.

The "Resource Reflection Mechanism and Efficient Interoperability Technology for Cloud-End Converged System", which was jointly researched and developed by Beijing Internetware Company, a subsidiary of DC Holdings, and Peking University, won the First Prize of National Technology Invention Award. The products of the “Yan Cloud DaaS” series, transformed based on the abovementioned technology, have been widely applied in the construction of big data industry, and helped DC Holdings to win multiple high value projects, including the Phase I of “Digital New District” project in Changchun New District under a contract of approximately RMB174 million, “Smart Tangshan” construction project with contract amount of RMB140 million. DC Holdings will participate in the comprehensive planning and project construction of “Digital Qujing”, focusing on the applications including construction of middle office platform, citizen services platform and municipal operation and administration.

During the fight against the coronavirus (“epidemic”), DC Holdings actively identified and utilized the big data product “Yan Cloud DaaS” to strengthen the integrated analysis and prediction of the epidemic, and provide analytics services supported by comprehensive and accurate scientific data, in order to support the local governments to prevent and control the epidemic with precise measures. Besides, DC Holdings constructed several big data platforms rapidly to connect citizens, cities and governments, helping Beijing, Tianjin, Xuzhou, Sanming, Longyan, Zibo, Weihai and other places to fight against the epidemic.

Strategically focusing on the financial technology sector, DCITS ranked 1st for 7 consecutive years in the industry of core banking business and channel management solution

In 2019, Digital China Information Service Company Ltd. (“DCITS”) ranked no. 38 in the “IDC FINTECH RANKINGS”, while ranked no. 1 for 7 consecutive years in the industry of core banking business and channel management solution. During the Reporting Period, DCITS’s sales reached HK$11,504 million, an increase of 9.33% year-on-year, and the gross profit margin reached 18.27%; Segment profit increased by 101.98% to HK$301 million . Besides, DCITS is leading in the field of quantum communication. During the Reporting Period, DCITS successfully won the bids for the key cities quantum-secured communication metropolitan area network projects under the national “New Infrastructure” investment plan.  

iSESOL’s Smart Manufacturing project was selected as one of the Big Data Industry Development Pilot Demonstration Projects by the Ministry of Industry and Information Technology

iSESOL, an affiliate of DC Holdings, launched an industry IoT terminal iSESOL BOX. Its edge computing capabilities enable real-time interaction between devices and cloud platforms by utilizing the Edge Cloud Collaboration capability of the iSESOL industry Internet platform to help the enterprises improve their production efficiency. As of now, the service scope of the iSESOL industrial Internet platform has covered 26 provinces and 161 cities, serving more than 3,000 corporate customers, and has connected more than 30,000 smart devices, up 20% year-on-year. The interconnection project between the processing equipment and industrial big data of iSESOL has been successfully enlisted into the "Public List of 2020 Big Data Industry Development Pilot Demonstration Projects" released by the Ministry of Industry and Information Technology. This is another special honour of iSESOL in 2020, in addition to being selected in the “List of 2019 Industrial Internet Pilot Demonstration Projects” released by the Ministry of Industry and Information Technology. It is believed that with the acceleration of the “New Infrastructure” strategy, the development of industrial Internet big data will present huge opportunities.

Seeking breakthroughs in innovation on the backdrop of technological changes to fulfill the mission of Digital China

Mr. Guo Wei, Chairman of the Board of DC Holdings stated, “Looking forward, Digital China Holdings will rely on "Yan Cloud DaaS", the Internet of Things ("IoT"), biometrics and security technology, and through the introduction of technology industry resources and the big data operation services empowering cities' intelligent development and industries’ digital transformation, it will achieve profit growth and drive shareholders’ returns while striving to realize the dream of "Digital China".


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About Digital China Holdings Limited

Founded in 2000, Digital China Holdings Limited (“DC Holdings”) was listed on the Main Board of The Hong Kong Stock Exchange in 2001 (Stock code: 00861.HK).

Over the past 20 years, DC Holdings has consistently achieved innovations and breakthroughs, living up to its corporate culture of “Responsibility, Passion and Innovation” as it continued to fulfill the mission of building a “Digital China”. From a dominant distributor of IT products in China, DC Holdings has completed a strategic upgrade to transform itself into a leading integrated IT service provider, digital transformation specialist and Smart City specialist in China. Now, DC Holdings is taking a further turn in transformation through digitalisation, in a commitment to become a world-leading Big Data operation service group.

As a high-tech enterprise which empowers the Smart City development and the digital transformation of industries on the back of its proprietary innovative core technologies in Big Data, Internet of Things and Artificial Intelligence, DC Holdings has completed its business deployment with illustrious accomplishments in core sectors such as Smart City, Smart Industry Chain, Financial Technology, Smart Health, Smart Manufacturing, Smart Agriculture, Smart Maintenance and Quantum Communication.

For additional information about DC Holdings, please visit the Group’s website at

www.dcholdings.com.


Media Inquiries:

Investor Connect Advisory Limited

Ms Samantha Wang   

Tel: +852 3618 7438 

Email: samantha.wang@ICAdvisory.com.hk

IR Inquiries:  

DC Holdings IR Team

Tel: 852-3416 8085 

Email: ir@dcholdings.com

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