On July 25th, 2024, the Fortune China Top 500 list was officially revealed, with Digital China Group Co., Ltd. (referred to as "Digital China", stock code 000034.SZ) making it onto the list for the eighth consecutive year. The company ranked 186th, climbing 8 spots from its position in 2023, thanks to its outstanding performance in 2023 and the continuous deepening of its AI-accelerated data and cloud integration strategy.

According to the report by the Chinese edition of Fortune, this year's top 500 Chinese companies include both listed and unlisted enterprises, with total revenues reaching $14.6 trillion in 2023, surpassing 81% of China's GDP for that year. Based on this list and its data, one can understand the latest development trends of China's largest enterprises. Notably, the entry threshold for this year's list increased by about 9% compared to last year, indicating a clear improvement in overall business performance, with several companies re-entering a growth trajectory.

In 2023, seizing new opportunities brought by the rapid development of the digital economy, Digital China deeply implemented the "data and cloud integration" strategy. Benefiting from the continuous focus on high-value business and ongoing optimization of the overall business structure, the company achieved an annual revenue of RMB 119.624 billion and a non-GAAP net profit of RMB 1.263 billion, a year-on-year increase of 37.22%, significantly enhancing its profitability. Among them, the revenue from the data and cloud integration business (MSP+ISV), with a gross margin of over 40%, surged by 68.25%, and the revenue from the IT innovation business crossed the threshold of RMB 3.4 billion, increasing by 71% year-on-year. The high growth in high-value business areas has laid a solid foundation for the company's long-term value enhancement.

At the intersection of three major technological waves—cloud-native, digital-native, and AI-native—Digital China actively embraced change, promoted industrial innovation and upgrades, and embarked on a new layout of "data and cloud integration 2.0" accelerated by AI. In the era of AGI (Artificial General Intelligence), the company fully embraced AI, focusing on AI-native scenario empowerment, multi-cloud heterogeneous green intelligent computing, and international AI ecological innovation, creating an acceleration engine for AI.

Digital China's independently developed AI-native empowerment platform—Smart Vision—has become a key force driving the implementation of its strategy. By deeply integrating computing power, models, knowledge, and application scenarios, Smart Vision tailors intelligent solutions for enterprises, achieving seamless connection from scenario empowerment to model management, accelerating the pace of enterprise intelligence transformation.

To meet the growing demand for computing power, Digital China's subsidiary, Shenzhou Kuntai, actively supports the green and low-carbon transformation of computing power infrastructure. By creating the Heterogeneous Intelligent Scheduling Operation Platform (HISO) and the Heterogeneous Intelligent Computing Acceleration Platform (HICA), it has solved the challenges of compatibility, scheduling, and low utilization rates in multi-cloud and heterogeneous environments, providing enterprises with efficient, low-cost, green intelligent computing solutions and accelerating the modernization of computing power infrastructure.

Moreover, against the backdrop of accelerated global digital transformation, Digital China is also rapidly expanding into new tracks and actively deploying overseas operations. It has established an international business headquarters in Shenzhen and signed a Memorandum of Understanding (MOU) with Thailand's Ministry of Digital Economy and Society, embarking on a journey to establish a presence in Thailand and reach and cover Southeast Asia, accelerating its globalization effort.

The recently released semi-annual forecast report for 2024 shows that, thanks to the accelerated advancement of the data and cloud integration strategy, strategic business revenue maintains a growth of over 50%, continuously strengthening Digital China’s profitability and core competitiveness. Among them, the high-value data and cloud integration business, with a gross margin of 30%~40%, is expected to grow by 90%~100% year-on-year. The IT innovation business revenue, with a gross margin of 12%~13%, is expected to be RMB 2.133 billion to RMB 2.267 billion, a year-on-year increase of 60%~70%.

Committed to becoming a leading digital transformation partner, Digital China will continue to advance the "AI-driven data and cloud integration" strategy, providing more intelligent, efficient, and sustainable solutions for digital transformation of enterprises, and jointly accelerating towards the vast blue sea of digitalization.