Digital China Holdings Limited has published its unaudited interim results for the six months ended September 30, 2011, stating that its operating revenue increased by 23.87% year-on-year to HKD34.138 billion and its profit attributable to equity holders increased by 23.91% year-on-year to HKD665 million.

During the reporting period, Digital China's overall gross profit margin reached 7.5%, due to the substantial improvement in the gross profit margins of the system business and the supply chain services business. Its total gross profit reached HKD2.56 billion, increasing by 44.86% compared with the same period of last fiscal year. Meanwhile, a net cash inflow from operating activities of HKD258 million was reported for the interim period, reflecting the company's effective management measures in spite of credit tightening.

By the end of the six months ended September 30, 2011, Digital China's distribution segment realized operating revenue of HKD18.447 billion, a year-on-year increase of 15.26%. The gross profit margin for this segment was 4.82%. By the reporting period, the company had opened 119 new Digital China "@PORT" franchise retail outlets and concession counters to bring the total number of "@PORT" outlets and counters to 745, contributing to a 68% growth in the business scale of its retail end as a whole in comparison to the corresponding period of last fiscal year.

For the system segment, the company realized operating revenue of HKD8.108 billion, a year-on-year increase of 25.35%. Its system business gained significant achievement in solutions deployment and the company reported strong revenue growth exceeding 30% for businesses in all of its three types of solutions offered, covering communications, video conference and security.

Digital China's services business reported a year-on-year increase of 33.1% to HKD3.526 billion. By sector, the company reported revenue growth of 58.17%, 49.04%, and 17.01% from the financial, government and telecommunications sectors, respectively.


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