Digital China Holdings Limited · HKEX:861
Digital China — H1 2022 Earnings Presentation
25 slides from Digital China's earnings presentation, August 2022
Slide 1: DC Holdings Limited 1H2022 Results Presentation
DC Holdings Limited 1H2022 Results Presentation 2022.8
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. Key Financial Highlights Contents 2. Product and Business Review 3. Outlook and Aspirations 2/23
Slide 4: Key Financial Highlights
1 Key Financial Highlights • Company Overview • Operating Highlights • Key Performance Metrics 3/23
Slide 5: DC Holdings - Leading the Way in Digitalization
DC Holdings - Leading the Way in Digitalization DC Holdings was founded in 2000, going public in 2001. Over the last two decades, we have committed to “Digitalizing China” as our core mission. Adhering to its corporate culture of “Responsibility, Passion, Innovation and Creating Shared Value”, we ke
Slide 6: Our Core Strategy in the Digital Economy Era
Our Core Strategy in the Digital Economy Era In 2018, we accelerated our core business by deploying big data and A.I. technologies and providing government and enterprise clients with a full-suite of big data products and solutions Leading Tech-driven big data City Digital Supply Chain Native Digita
Slide 7: Operating Highlights - Rapid Growth of Big Data Business
Operating Highlights - Rapid Growth of Big Data Business Focused on Big Data Product and Solutions Business, revenues and GP continue to expand rapidly Revenue Gross Profit (HK$ million) (HK$ million) CAGR+31% CAGR+35% 449/38% 1181 YoY +50% YoY +56% 789 288/37% 686 247/36% 2020-H1 2021-H1 2022-H1 20
Slide 8: Operating Highlights - Ongoing Income Structure Optimization
Operating Highlights - Ongoing Income Structure Optimization Big data business contribution increases steadily driven by a distinct business strategy % of Revenue by Segment % of Gross Profit by Segment Unit: HK$ million Unit: HK$ million 2022-H1 14% 32% 54% 2022-H1 29% 32% 39% 2021-H1 9% 31% 60% 20
Slide 9: Operating Highlights - Maintaining Industry-leading Positions
Operating Highlights - Maintaining Industry-leading Positions Capitalizing on our strengths to deepen client relationships whilst pursuing new verticals % Revenue Market Positioning Key clients No.1 for 9 straight years in IT/3C; Tech 45% Top 3 for 10 straight years in IDC IT Services Enterprise Ran
Slide 10: Operating Highlights - Breakthrough in Customer Expansion
Operating Highlights - Breakthrough in Customer Expansion Driving results through share of wallet expansion as well as new client acquisition % of Revenue for Top 30 No. of Key Accounts No. of New Customers customers Unit：% Unit: Clients Unit: Clients CAGR +79% CAGR +12% YoY +20% 1648 47% 120 36% 10
Slide 11: Key Performance Metrics – Evident Uplift through Big Data
Key Performance Metrics – Evident Uplift through Big Data Consolidated Revenue(1) Big Data Revenue Intellectual Property (HK$ mn) (HK$ mn) （count） 8,682 1,181 Cumulative 2392 +0.1% +49.7% New added +143 Profit attributable to Selling and Administrative Proposed Dividend shareholders (HK$ mn) Expense
Slide 12: Product and Business Review
Product and Business 2 Review • Business Structure • Big Data Products and Solutions • Innovative R&D model 11/23
Slide 13: Business Structure
Business Structure Big Data Products Big Data Solutions Data Fabric City Digital Native Transformation Big Data Data Hub Supply Chain Digital Native Transformation Supply Chain Products Digital Native City Digital Native Business Digital Twin Fintech Transformation and Transformation Solutions Softw
Slide 14: Big Data Products
Big Data Products Increasing big data product offering diversity, with accelerated standardization efforts Business Development： • Increased product standardization, with GP margin of 83%, up Data Fabric Data Hub Digital Twin 16% YoY; Data Quality Core Advantages： (Graphic Visualization • Comprehens
Slide 15: Big Data Solutions - Supply Chain Digital Native Transformation
Big Data Solutions - Supply Chain Digital Native Transformation Leveraging on “Supply Chain+Big Data+AIoT” to provide clients with supply chain end-to-end solutions Interface Platform Business Development： • 1H22 Supply Chain Big Data Revenue +81% YoY • '19-‘21 Revenue CAGR +113% Order Management Sy
Slide 16: Big Data Solutions - City Digital Native Transformation
Big Data Solutions - City Digital Native Transformation Enabling digital development of cities through planning, construction, management, and services Construction Projects Ops Portal Inspect Water works Construction area Business Development： Planning Key aspects Station work Compliance Environme-
Slide 17: Big Data Solutions - Fintech
Big Data Solutions - Fintech Utilizing big data to achieve inclusive finance, becoming a trusted digital transformation partner Solutions Business Development： • 1H22 Big Data related revenue +43% YoY Enterprise • Increase in number of large clients with RMB20mn in Microservices Platform annual reve
Slide 18: Innovative R&D Model - Industry-academia-research-usage
Innovative R&D Model - Industry-academia-research-usage Innovation Standard Drafting First Prize of the China National Led and participated in the compilation Technology Invention Award of 23 projects during 1H22 More than 80% technical R&D staff National and industry standards for Digital Twin/Smar
Slide 19: Outlook and Aspirations
Outlook and 3 Aspirations • Market Outlook • Growth Drivers & Growth Strategy & Goal • Investment highlights 18/23
Slide 20: A Vast Digital Economy Market
A Vast Digital Economy Market China’s Digital Economy’s Size Market size and growth rate of data intelligence (RMB trillion) applications in China（RMB billion） 2021 45.5 400 40% 35% 30% 32% 31% 2020 39.2 300 30% 31% 2019 28% 35.8 200 20% 2018 31.3 100 10% 2017 27.2 0 0% 2016 22.6 • China’s big data
Slide 21: Growth Drivers and Growth Strategy
Growth Drivers and Growth Strategy Leveraging “Spatial-temporal data layer+A.I.+Innovation use cases” to build a Big Data Product and Solution Matrix which enables further development of innovative use cases Growth Strategy Ecosystem Leverage Tap into a vast client pool under the wider DC ecosystem
Slide 22: Business Growth Trajectory
Business Growth Trajectory 2018-2024 Big Data Business's Gross Profit Contribution 2018A 1H22A 2024E 1% 29% 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 23: Core Management Team
Core Management Team Maria Kwok Yale Shen Sun Yang Victor Cheung Bailey Zhang COO CTO SVP VP VP 20+ years of Senior scientist with 30+ years of 30+ years of MNC Extensive experience in management 30+ years of experience in financial experience in the financial management experience at Fortune experi
Slide 24: Recap of Key Highlights
Recap of Key Highlights 1. Extensive market opportunity through the digital economy development, performance targets continue to be achieved with clear forward trajectory 2. Winning invention from the National Technology Invention Award combined with unique industry-academia-research-application R&D
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Digital China Holdings — H1 2022 Earnings Presentation on 6ix