Digital China Expands Retail Outlets By 50%

China's leading integrated IT service provider Digital China Holdings Limited has announced the annual results for its fiscal year ended March 31, 2011, stating that its total turnover realized a year-on-year increase of 13.2% to HKD56.804 billion and its net profit increased by 21.97% year-on-year to HKD1.005 billion.

The financial report shows that the gross margin of Digital China's IT services reached 16.03%, increasing by 13.32% compared with the previous fiscal year.

For the distribution of traditional products, Digital China's operating revenue was about HKD26.918 billion, a year-on-year increase of 18.47% and its gross margin was 4.38%. In addition, there were 634 Digital China "@ PORT" franchise retail outlets operating in China as at March 31, 2011, representing a 50% growth compared with 422 outlets at the end of the corresponding period of last fiscal year.

For the company's systems business, its operating revenue from the enterprise market reached about HKD13.823 billion, a year-on-year increase of 9.13%, while the gross profit margin was 9.74%, which was 0.32% higher compared with 9.42% for the corresponding period of last fiscal year.

The company's supply chain services business reported turnover of approximately HKD10.021 billion during the year ended March 31, 2011, which represented a 14.19% growth over last year. The supply chain services business reported a record-high gross profit margin of 4.17%, due to ongoing optimization of its business structure. In particular, the gross profit margin of 4.78% for the fourth quarter represented a significant improvement of 0.96 percentage points compared to 3.82% for the corresponding period of last fiscal year.