2023 / 10
Digital China's Net Profit in Third Quarter Increases by 43%, with a Strong Recovery in Growth

On the evening of October 30, Digital China Group (000034.SZ) released its operating results for the third quarter of 2023.

In the first three quarters of 2023, the operating revenue of Digital China was 84.155 billion yuan; the net profit attributable to parent company was 851 million yuan, up 25% year on year; the net profit with non-recurring gains and loss deducted was 843 million yuan, up 28% year on year. Its performance in the first three quarters has firmed the confidence of Digital China that its rapid growth and performance objectives would be achieved.

A strong recovery in the third quarter, with a growth of 43% in net profit attributing to parent company

After the accumulation in the first half of 2023, in the third quarter of 2023, the net quarterly profit of Digital China achieved a great growth. It was one of the first to recover in the post-pandemic era, continuing to build its growth momentum.

The financial report shows that its operating revenue in the third quarter of 2023 was 28.554 billion yuan, up 6% year on year, and the net profit attributable to parent company was 417 million yuan, up 43% year on year; the net profit with non-recurring gains and loss deducted was 415 million yuan, up 47% year on year.

Breakthrough in strategic business with continuous structural optimization

The strong performance growth has benefited from the continuously deepened strategic layout of data cloud integration, and the accelerated breakthrough and fulfillment of the strategic business.

In the first three quarters of 2023, the revenue of Digital China's cloud computing and digital transformation reached 4.92 billion yuan, with a year-on-year growth of 36%, and the revenue of its independent brand business reached 2.367 billion yuan, up 49% year on year, among which the revenue of its information technology application reached 2.0919 billion yuan, up 69% year on year.

Focusing on “information technology application and intelligent computing”, during the reporting period, Shenzhou Kuntai's next-generation central training server, Kunyun series all-in-one machine, Shenzhou Kuntai full-stack intelligent computing products and solutions were successively fulfilled. It won the bidding of a server order with a value of a hundred million yuan from China Telecom for the first time, thus realizing a full coverage of the three major operators.

It has firmly deployed in generative AI for enterprises, officially released the Shenzhou Wenxue platform and launched the “Learning and Creation Program”. Digital China and the Beijing China Info 100 Academy jointly released the White Paper on the Application of Generative AI in Enterprises, helping the enterprises to solve the core challenges faced by the application of generative AI from three aspects.

Guo Wei, chairman and CEO of Digital China, said, “Digital strategy is a corporate strategy. In the future, enterprises will enter the integration era of cloud native, digital native and AI native. Digital China is also willing to become a partner for enterprises in the whole life cycle of their digital transformation and seek a win-win future with the industry.”

Recommended Reading