Digital China Holdings Limited announces 2024 Interim Financial Results

Summary of the 2024 Interim Financial Results (for the six months ended June 30, 2024)

- Profit attributable to shareholders is approximately RMB 10.81 million.
- Total revenue is RMB 7.014 billion, with an increase of about 5% year-on-year.
- Breakthrough progress in big data products and solutions, with revenues of RMB 1.277 billion, showing a year-on-year growth of 17%.
- Rapid growth in overseas business, with revenues amounting to RMB 465 million, a year-on-year increase of 55%. This has been driven by successful wins for supply chain tenders in Thailand and Vietnam for BYD.
- The Group has also secured major projects, including an AI infrastructure project (Smart Computing Center) in Jilin Changchun New District, the second phase of the Computing Power Center in Changchun, and an Intelligent Water Project in Jilin Province.
- The interim dividend for the six months ending June 30, 2024, is HKD 0.01 per ordinary share.

HONG KONG, Sept 2, 2024 - (ACN Newswire) - Digital China Holdings Limited ("DC Holdings" or "the Company," together with its subsidiaries referred to as "the Group"; Stock Code: 00861.HK) announces its unaudited interim results for the six months ended June 30, 2024 (the "Reporting Period").

During the Reporting Period, the Company achieved total revenue of RMB 7.014 billion, representing a year-on-year increase of 5%. Revenue from big data products and solutions was RMB 1.277 billion, with a year-on-year growth of 17%; and overseas revenue was RMB 465 million, up 55% year-on-year. Profit attributable to shareholders was approximately RMB 10.81 million (compared to RMB 40 million in the same period last year). The decrease in profit was primarily due to heightened competition faced by the Company Ltd. (“DCITS”), and its ongoing increase in investments within various business sectors, leading to a decline in gross profit margin, and increased costs related to new product lines.

Breakthrough Progress in Big Data Products and Solutions

Fueled by the robust and swift growth of its big data business, DC Holdings has further refined its overall business structure. The innovative “City CTO + Enterprise CSO” model continues to gain strength, utilizing years of accumulated government resources to expedite expansion into industry and enterprise sectors. This strategy has been effectively validated by clients and quickly replicated.

Major Project Wins: During the Reporting Period, The Group has secured major projects, including the AI infrastructure project (Smart Computing Center) in Jilin Changchun New District, the second phase of the Computing Power Center in Changchun, and an Intelligent Water Project in Jilin Province.

Intelligent Computing Center Development: The Company will continue to enhance and evolve industry-specific software models on its proprietary “Three-in-One” industrial intelligent brain platform. This platform delivers robust computing power and intelligent solutions across various industries.

Serving Enterprise Clients: During the Reporting Period, the Company successfully collaborated with leading domestic chip manufacturer Geehy Microelectronics and several industry-leading enterprises. These partnerships span a diverse range of areas, including cutting-edge technology, consumer goods, and advanced manufacturing.

Core Technology of Self-Developed Knowledge Graphs and Integration of Industry-Academia-Research

In technology development, the Company focuses on standardized products and solutions, powered by two core elements: knowledge graph-based digital twins and AI large language model-based ecological platform capabilities. This strategy enables enterprises to swiftly develop AI applications, modularize and platformize products and solutions, and leverage AI tools alongside deep industry insights. It assists clients in dynamically analyzing and managing business processes in complex, ever-changing market environments, thereby boosting operational efficiency, reducing costs, and fostering business innovation to enhance competitive advantage.

The Company integrates its dual-core technologies into big data products and solutions, targeting key scenarios such as smart cities, supply chains, and fintech. It continues to enhance AI-driven decision-making capabilities, enabling rapid development with low-code or no-code solutions. The Company drives horizontal expansion across multiple industries through the “3+N” model and standardized replication with clients via the “1xN” model.

In the first half of the year, the Company advanced its intelligent manufacturing solutions with blue-chip clients, swiftly deploying and implementing end-to-end smart supply chain control tower solutions, covering everything in the manufacturing process from initial research and development initiatives to products sales and after-sales customer service.

The Company collaborates with universities and research institutions to strengthen industry-academia-research integration and increase investment in the development of "big data + Artificial Intelligence" products and solutions. R&D expenses reached RMB 320 million.

Expanding Overseas: A New Growth Phase

During the reporting period, DC Holdings achieved overseas revenue of RMB 465 million, marking a 55% year-on-year increase. Under China’s Belt and Road Initiative, the Company leverages its extensive overseas experience and high-end networks to actively expand its value chain, focusing on “localization,” “win-win cooperation,” and “leading domestic ecosystems while integrating into international ecosystems.”

Following this international strategy, the Group has formed strategic alliances with prominent Chinese enterprises such as Huawei, Honor, ZTE, and BYD to enhance their global presence. They offer comprehensive supply chain operations and digital services, including international and domestic transport, warehousing, import and export, cross-border e-commerce, and live streaming services. During the reporting period, the Company secured supply chain tenders from BYD for Thailand and Vietnam, providing integrated end-to-end supply chain services for overseas raw materials and components.

Future Outlook

In 2024, the National Data Bureau will introduce eight institutional documents focusing on data ownership, data flow, revenue distribution, security governance, public data development and utilization, enterprise data development and utilization, high-quality development of the digital economy, and data infrastructure construction. With the release of the “Three-Year Action Plan for Data Elements (2024-2026)” policy and the initiation of data resource listings, the market for data elements is poised for significant industrial growth. Digital China will seize this historical opportunity, leverage its strengths in data governance and application, actively engage in cutting-edge technology areas, and accelerate expansion into enterprise markets.

DC Holdings will expedite the implementation of the “Enterprise CSO” business model, deepen its focus on core smart supply chain scenarios, and continue to collaborate with warehousing and logistics ecosystem partners. By utilizing the supply chain control tower, the Company aims to assist more enterprise clients with end-to-end supply chain operations and continuously iterate AI intelligent applications from visualization and assisted decision-making to autonomous intelligent decision-making, promoting rapid replication and implementation of the end-to-end supply chain control tower solutions for clients.

Looking ahead, as global intelligent transformation deepens, DC Holdings’ “Big Data + Artificial Intelligence” strategy will experience significant development. The Company will rely on its core technologies to expand market space in data elements and industry-specific intelligent applications, advance scenario implementation amidst the AI wave, and accelerate international expansion while continuing to cultivate the domestic market, aiming for exponential business growth.

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About Digital China Holdings Limited

Digital China Holdings Limited (DC Holdings) was established in 2000 and listed on the main board of the Hong Kong Stock Exchange in 2001 (Stock Code: 00861.HK). Over the past twenty years, the Company has remained committed to the mission of "Digital China," and adheres to the principle of "leading in concept, technology, and practice"

Currently, the Company focuses on the "Big Data + Artificial Intelligence" strategy and the "City CTO + Enterprise CSO" innovative model, striving to drive the commercialization of high-quality data and AI application scenarios. The Company is dedicated to deepening its efforts in key areas such as smart cities, smart supply chains, and smart finance, continuously developing data analysis and decision-making products and intelligent applications for government and enterprise clients, and aims to be a pioneer in big data technology

For more information, please visit Digital China Holdings Limited’s website: https://www.dcholdings.com/zh/company-overview

This press release is issued by Intelligent Joy Limited on behalf of Digital China Holdings Limited.

For enquiry, please contact Intelligent Joy Limited:
Jason Guo / Karena Ke
Email:Jason.guo@intelligentjoy.com/karena.ke@intelligentjoy.com