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Published:
Digital China Announces 1Q FY08/09 ResultsHONG KONG, Aug. 20 /Xinhua-PRNewswire/ --China's leading IT service provider, Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code: 00861.HK) today announced unaudited consolidated results for the three months ended 30 June 2008.
Highlights:
For the three months ended 30 June 2008:
-- Revenue increased 27.38% YoY from Q1 FY08 to HK$10,011 million
-- Profit attributable to shareholders amounted to HK$114 million,
representing a 74.70% YoY growth
-- Gross profit up 33.24% to HK$662 million on YoY basis
-- Overall adjusted gross profit margin and net profit margin were 7.65%
and 1.14% respectively, representing a respective improvement of 58bps
and 31bps
-- Basic earnings per share was 11.83 HK cents up 58.58% as compared to Q1
FY08/09
Financial Review During the period under review, the Group recorded a turnover of Mr.
Segment Results
Three months ended 30 June
(HK$ million) 2008 2007 Change (%) YoY
Distribution Business
Turnover 5,461 4,766 14.57
Gross profit 235 206 14.05
Segment Results 91 77 18.24
Systems Business
Turnover 3,278 2,253 45.46
Gross profit 271 186 45.55
Segment Results 82 68 20.91
Services Business
Turnover 1,272 839 51.63
Gross profit 156 104 49.12
Segment Results 27 (10) N/A
Business Review
Services Business (with a primary focus on Industry Market) During the period under review, the Group's Services business continued
its transformation from a start-up into a profit contribution stage. The
contract value of the Group's Services business for the period was Although the Distribution business experienced a slowdown in turnover growth because of theSichuan earthquake, it has raised society's awareness for contingency catastrophe planning. The Group conducted research and development solutions in an intensive and orderly manner for disaster alarms, emergency management and networked customs supervision systems. The disaster alarm system and emergency management system will provide unique support and services for disaster relief while the Group has signed contracts for a number of projects applying the 3+1 solution for networked customs supervision. Systems Business (with a primary focus on Enterprise Market) The Group's Systems business sustained robust growth during the period
under review. Turnover of the Group's Systems business for the three months
ended 30 June 2008 was Distribution Business (with a primary focus on SMB & Consumer Markets) Turnover in the Group's Distribution business for Q1 FY08 amounted to
Outlook Demand in the China IT market will remain steady in the coming year. The Group should benefit from the restructuring of its service business that will outpace that in the overall IT market. Management is confident in the Group's future business development. For the Distribution business, the Group will continue to seek more IT products to enrich its product mix. At the same time, the Group will expand its regional distribution penetration rate. Both strategies will broaden its revenue sources. For the Systems business, with its solid foundation of the sound cooperation with vendors and its sales channels, will ensure a rapid revenue growth. Meanwhile, the Group will strengthen its technical teams that will further enhance its technical support capabilities and provide better value-added service to customers. Management believes that the Distribution business and System business will maintain stable revenue and earnings growth. The Group will benefit from its Services business restructuring momentum which is expected to generate significant growth in the current financial year. The Group's promotion system and product support of the IT outsourcing and maintenance services (PSOM) is well established. A professional team of service agents, which operates on a re-selling basis, is being established to cover all regions ofChina. This lays a sound foundation for growth of the Group's Services business in the current financial year. The restructuring of telecom service providers and issuance of 3G licenses are expected to present tremendous opportunities to the Group's core system projects and value-added operations in the future. The Group will try to capitalize these opportunities to accelerate business development. Looking into the remaining financial year, Mr. About Digital China DigitalChina was listed on the main board of The Stock Exchange ofHong Kong in 2001 under stock code "00861.HK" following a successful spin off from the Legend Group. In pursuit of its "Digitalized China" corporate strategy, Digital China is focused on providing its customers with pioneer electronic business platforms, solutions and services. A one-stop IT services concept, available to individual consumers and large enterprises alike, enables its client base to span across a wide range of different industries, from banking and telecommunications to government and public sectors. Leveraging on its strong partnership with over 100 top IT vendors worldwide, Digital China has become the largest integrated IT service provider inChina. Through effective guiding, Digital China provides fully integrated IT services to customers with different needs and at various stages of development to create value and success for them. For further information on its products and services, please visit http://www.digitalchina.com.hk .
CONDENSED CONSOLIDATED INCOME STATEMENT
Three months ended 30 June
2008 2007
(Unaudited) (Unaudited)
HK$'000 HK$'000
Revenue 10,010,710 7,858,762
Cost of sales (9,348,504) (7,361,756)
Gross profit 662,206 497,006
Other income and gains 129,825 91,305
Selling and distribution costs (397,424) (309,392)
Administrative expenses (83,774) (70,606)
Other operating expenses, net (141,236) (92,203)
Total operating expenses (622,434) (472,201)
Finance costs (40,818) (39,439)
Share of profits and losses of:
Jointly-controlled entities 700 (1,155)
Associates 2,446 (167)
Profit before tax 131,925 75,349
Tax (19,031) (12,414)
Profit for the period 112,894 62,935
Attributable to:
Equity holders of the parent 114,034 65,273
Minority interests (1,140) (2,338)
112,894 62,935
Earnings per share attributable to
ordinary equity holders of the parent
Basic 11.83 HK cents 7.46 HK cents
Diluted 11.83 HK cents 7.33 HK cents
CONDENSED CONSOLIDATED INCOME STATEMENT
At 30 June At 31 March
2008 2008
(Unaudited) (Audited)
HK$'000 HK$'000
NON-CURRENT ASSETS
Property, plant and equipment 405,034 401,124
Investment properties 239,955 234,212
Prepaid land premiums 15,024 14,765
Intangible assets 5,308 5,526
Interests in jointly-controlled entities 5,645 7,894
Interests in associates 38,058 35,612
Available-for-sale investments 31,611 31,611
Deferred tax assets 20,970 19,480
Total non-current assets 761,605 750,224
CURRENT ASSETS
Inventories 2,683,075 2,559,364
Trade and bills receivables 4,985,337 3,772,820
Prepayments, deposits and other receivables 1,213,010 1,233,629
Cash and bank balances 1,652,439 998,454
Total current assets 10,533,861 8,564,267
CURRENT LIABILITIES
Trade and bills payables 3,499,136 3,334,519
Other payables and accruals 1,803,881 1,695,420
Tax payable 65,757 66,405
Interest-bearing bank borrowings 2,014,475 400,066
Total current liabilities 7,383,249 5,496,410
NET CURRENT ASSETS 3,150,612 3,067,857
TOTAL ASSETS LESS CURRENT LIABILITIES 3,912,217 3,818,081
NON-CURRENT LIABILITIES
Interest-bearing bank borrowings 919,410 952,803
Bond payable 227,015 221,582
Total non-current liabilities 1,146,425 1,174,385
NET ASSETS 2,765,792 2,643,696
EQUITY
Equity attributable to equity holders of the
parent
Issued capital 96,362 96,362
Reserves 2,512,727 2,389,347
Proposed final dividend 140,210 140,210
2,749,299 2,625,919
Minority interests 16,493 17,777
TOTAL EQUITY 2,765,792 2,643,696
For investor and media inquiries:
Wycee Liu
Digital China Holdings Limited
Tel: +852-3416-8089
Email: liuyqa@digitalchina.com
Jane Liu
PRChina
Tel: +852-2522-1838
Email: jliu@prchina.com.hk
Winnie Wang
Digital China Holdings Limited
Tel: +852-3416-8090
Email: wangminh@digitalchina.com
Vivian Shi
Digital China Holdings Limited
Tel: +852-3416-8076
Email: vivianshi@digitalchina.com
Henry Chik
PRChina
Tel: +852-2522-1838
Email: hchik@prchina.com.hk
SOURCE Digital China Holdings Limited Tags: ,CPR,ECM,STW,ASI,ERN,Digital-CN-1Q-Results _ _Is your favorite bookmark site missing? Ask for it. |
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