Digital China Holdings Limited · HKEX:861
Digital China — FY2022 Earnings Presentation
27 slides from Digital China's earnings presentation, Mar 30, 2023
Slide 1: FY2022 Results Presentation
DC Holdings Limited 00861.HK FY2022 Results Presentation 30 March 2023
Slide 2: Disclaimer
Disclaimer This presentation may contain certain projection and forward looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Digital China Holdings may differ materially from those expr
Slide 3: Contents
1. Business Highlights Contents 2. Product and Business Review 3. Outlook and Aspirations 2/24
Slide 4: Business Highlights
1 Business Highlights 3/24
Slide 5: 2022 Company Overview
2022 Company Overview • Acceleration of big data and A.I. capabilities • Fed rate hike • Rapid growth of big data core business • US-China trade war • Optimization of business structure • Geopolitical conflicts Challenges • Recurrence of COVID-19 Growth • Local government financial pressure Drivers
Slide 6: Digital Economy | Core Strategy of Big Data
Digital Economy | Core Strategy of Big Data In 2018, we developed our core business of big data and A.I. technologies, thereby providing government and enterprise clients with a full-suite of big data products and solutions Big Data Solutions Incubation Supply Chain digitalization Digital Industrial
Slide 7: Rapid Growth of Big Data Business
Business Highlights | Rapid Growth of Big Data Business Both the scale and gross margins of the big data business continue to demonstrate strong growth Revenue Gross Profit (RMB million) (RMB million) YoY +26% YoY +38% CAGR +19% CAGR +34% 2,439 955/39.1% 1,937 1,709 693/35.8% 533/31.2% 2020 2021 202
Slide 8: Ongoing Optimization of Business Structure
Business Highlights | Ongoing Optimization of Business Structure The proportion of big data business has significantly increased, with gross profit exceeding 30% % of Revenue by Segment % of Gross Profit by Segment (RMB million) (RMB million) 2022 14% 31% 55% 2022 32% 28% 40% 2021 11% 32% 57% 2021 2
Slide 9: Well-recognized Provider to Top Clients
Industry Position | Well-recognized Provider to Top Clients % Revenue Market Positioning Key clients No.1 in IT/3C- The field of third-party supply chain; Tech 41% Top 3 for 10 straight years in IDC IT Services Enterprise Ranking, No.1 in the Chinese market No.3 in IDC China Banking IT Solutions Fin
Slide 10: Top Credentials and Awards
Industry Position | Top Credentials and Awards By 2022, we have led and participated in the preparation of 111 national and industrial standards which govern industries and elements including big data, digital twin, smart cities and zones, intelligent logistics, fintech and others No.1 No.2 2022 TOP
Slide 11: Product and Business Review
2 Product and Business Review 10/24
Slide 12: Business Structure
Business Structure Big Data Products Big Data Solutions Data-driven Big Data Data Fabric Digital Cities Supply Chain City Digital NativeProducts Digital Native Data Hub Digital Supply Chain Business Transformationand SolutionsTransformation Digital Twin Fintech Software development & Supply Chain Se
Slide 13: Big Data Products
Big Data Products Products cover the entire life cycle of data elements and generate gross profit margins of 90% Core Advantages： • 20+ years of industry experience and unique understanding of data Data Fabric Data Hub Digital Twin • Continuously formulating national industry standards • Innovative
Slide 14: City Digital Native Transformation
Use Case Applications | City Digital Native Transformation “City CTO" model continuously drives progression of urban digitalization Smart Digital Core Advantages: Digital Society Government Economy • City CTO positioning covering different fields of digitalization • 20+ years of practical experience
Slide 15: Supply Chain Digital Native Transformation
Use Case Applications | Supply Chain Digital Native Transformation Leveraging on Supply Chain + Big Data + AIoT strategy to provide clients one-stop supply chain solutions Enterprise Consumer Core Advantages: • 20+ years of industry experience in both logistics and technology B2B/B2C Offline Online
Slide 16: Fintech
Use Case Applications | Fintech Trusted digital transformation partner for institutions looking to expand digital capabilities Financial solutions and use-case based applications Core Advantages： • More than 30+ years of experience in the financial industry, covering 1,900 financial institutions • C
Slide 17: Localization
Use Case Applications | Localization Capitalize on the localization trend in China and create a firm business base Core Advantages： 1 Goal • Possess full-stack service capabilities of localization: consulting and planning, implementation, execution and testing, operation and maintenance National loc
Slide 18: Innovative R&D: Industry-Academia-Research-Application Ecosystem
Innovative R&D | Industry-Academia-Research-Application Self-Innovation Setting Standards First prize of the State Technological 111+ standards drafted Innovation Award National and industry standards such as Over 80% of headcount in technical Digital Twin/Smart City and research and development Par
Slide 19: Big Data Business Continues to Grow Rapidly
Performance | Big Data Business Continues to Grow Rapidly Consolidated Revenue Big Data Revenue Signed but not sold (RMB million) (RMB million) (RMB million) 17,750 2,439 6,558 +4% +26% +5% Profit before tax Proposed Total DPS Operating cash flow (RMB million) (HK cents) (RMB million) 501 6.8 526 -4
Slide 20: Outlook and Aspirations
3 Outlook and Aspirations 19/24
Slide 21: Historic Opportunity for Digitalization in China
Historic Opportunity for Digitalization in China Digital Industrialization Digital Industry Digitalization Localization (信创) Data element market construction China Digital City, Digital Village, Digital Finance, Digital Supply Chain, Digital Trade …… February 2023, the CPC Central Committee and the
Slide 22: City CTO, Data Intelligence, Enterprise CSO Development Engine
Development Engine Combining publicly available data with our proprietary data to enable a comprehensive offering City Data Intelligence Enterprise CTO Software & CSO Services • Government/economy/society • Accelerate our big data strategy to become a • Drive supply chain digitalization • Innovative
Slide 23: Accelerate Overseas Deployment
Accelerate Overseas Deployment • The Belt and Road Initiative provides digital supply chain opportunities targeted in developing Southeast Europe Asia and Africa markets Europe Middle • Utilizing Hong Kong’s unique global status, we will Mediterranean Asia China expand our overseas intelligent suppl
Slide 24: Continuous Innovation in Our Business Model
Continuous Innovation in Our Business Model Enterprise 10+ central ministries Enterprise Government: 300+ cities Data sourcing, Sanitized data collection and Data mining, analysis, components and data consolidation management, security and services Enterprise sharing Enterprise Data Fabric Data Hub
Slide 25: Business Growth Trajectory
Business Growth Trajectory 2018-2024 Big Data Business's Gross Profit Contribution 2018A 2022A 2024E 1% 32% 50% Big Data Business Others Big Data Business Others Big Data Business Others • Main business focus on system • Strong focus on big data business, • Highly standardized products and integrati
Slide 26: 25
25
Slide 27: Appendix: Financial Summary
Appendix: Financial Summary Revenue Gross Profit Segment Results (RMB 000s) FY22 FY21 FY20 FY22 FY21 FY20 FY22 FY21 FY20 Big Data Products 2,438,536 1,937,068 1,709,425 954,540 692,914 533,208 32,809 -64,398 -189,812 and Solutions Software and 5,545,843 5,439,234 5,112,697 814,060 1,113,083 1,212,93
Digital China Holdings — FY2022 Earnings Presentation on 6ix