Securities Times: DCN’s Q3 Report Shows Annual Revenue CNY 62.98 Billion and net profit growth 48%

October 31, 2019

Securities Times: DCN’s Q3 Report Shows Annual Revenue CNY 62.98 Billion and net profit growth 48%

On the evening of October 22, Digital China (000034.SZ) released its Q3 Report of 2019. According to the report, in the first three quarters of 2019, Digital China achieved an operating revenue of CNY 62.98 billion, a year-on-year growth of 18%; net profit attributable to shareholders of the listed company reached CNY 510 million, a year-on-year growth of 48%; non-net-profit attributable to shareholders of the listed company reached CNY 410 million, a year-on-year growth of 27%. In general, in the third quarter of 2019, Digital China’s operating revenue and net profit have increased, and the cloud strategic transformation and layout have achieved remarkable results.

In the first three quarters of 2019, Digital China won bids, launched or delivered several cloud and digital service projects, and made breakthroughs in the coverage of industry customers. With the help of several key projects, including the special cloud project for Guodu Securities, data desensitization project for Hunan Rural Credit Cooperatives Union, “hybrid cloud management platform” project for ZPMC, construction project for Beijing Daxing International Airport, and phase-1 project of fintech big data platform for Chongqing Xinrong, the cloud and digital businesses of Digital China quickly extend to financial securities, manufacturing industry, governments, transportation and other industries. The service layout, with cloud MSP and big data as the core, is gradually formed.

In terms of MSP service and layout, Digital China has strengthened its in-depth cooperation with major public cloud manufacturers, passed AWS management service capability audit at the full score of 1,000 points, and officially became an AWS management service provider (MSP); it has been awarded as a “TOP MSP PARTNER of Microsoft of the year”, and become Aliyun’s first national sole distributor at the beginning of the year; it has gained relevant MSP certification of Aliyun and became Aliyun’s core partner for MSP cooperation plan. At present, Digital China has MSP service capability fully covering the top three public clouds in the world. According to the first report on market shares in China’s cloud management service released by IDC, Digital China ranks second in the list and is evaluated as the cloud service provider with the “advantages of traditional IT service providers and emerging cloud service providers”.

Guided by the “Strategy of Greater Huawei”, recently, Digital China has become one of the first certified “preferred integrated delivery partners for Wotu digital platform” and the first “preferred partner for DevOps platform” of Huawei. Digital China has also carried out software adaptation for Kunpeng ecological products based on its own capabilities, to launch more valuable explorations and practices with Huawei in more cutting-edge technologies and core businesses.

With the rapid development of IaaS and AI market and the coming 5G network, SaaS market of enterprise-level applications will see more rapid development in China in 2019. While strengthening its technical service capabilities as a cloud manufacturer, Digital China has set up a new cooperation mode (SaaS Hosting) with global SaaS manufacturers. Recently, Digital China has helped promoted Palo Alto Networks deliver Prisma Cloud, a security cloud solution, in China. In the future, relying on the service mode of SaaS Hosting, Digital China will introduce and provide more global cloud technology services, help GlobalSaaS to expand in China, and provide better technologies and industry application services for the digital transformation of Chinese enterprises.

NEWS