Digital China Posts FY2012/13 Interim Results [Professional Services Close - Up]
(Professional Services Close - Up Via Acquire Media NewsEdge) Digital China Holdings Limited, an integrated IT services provider in China, announced the unaudited consolidated interim results of the Company and its subsidiaries for the six months ended 30 September 2012.
-For the six months ended 30 September 2012:
-The Group recorded turnover of HK$37,404 million, up 9.57 percent year-on-year as compared to HK$34,138 million for the corresponding period of last fiscal year. Turnover for the second quarter alone amounted to approximately HK$19,627 million, a record high for quarterly results.
-The Group timely liquidated inventories to avoid risks, resulting in an overall gross profit margin of 6.87 percent.
-Credit to stronger cost control measures, the expense ratio was lowered by 0.63 percentage point to 5.02 percent year-on-year.
-Profit attributable to equity holders of the parent amounted to HK$741 million, up 11.39 percent as compared to HK$665 million for the corresponding period of last fiscal year.
-Basic earnings per share were 69.39 HK cents, up 11.92 percent from 62.00 HK cents for the corresponding period of last fiscal year.
In a release on November 20, the Company noted that the Group advanced its Sm@rt City-focused operating approach and proactive customer development plans formulated earlier in the year. During the Period, the Group reported trend-bucking business growth overall. In particular, turnover for the second quarter achieved another breakthrough and recorded a record high for quarterly results. Owing to its business portfolio, the Group reported stable growth. The Group's Systems Business continued to reap additional market share by closely tracking demand for the construction of data centres and cloud computing centres. At the same time, the development of CES and e-commerce channels supported the positive growth of the Group's Distribution Business. The Supply Chain Services Business reported business value enhancements following continual initiatives in structural optimization. Meanwhile, the prudent advancement of the "Sm@rt City" strategy has cemented the foundation for the Group to carry on its service-oriented transformation in greater depth.
During the Period, the Group recorded turnover of approximately HK$37,404 million, a growth of 9.57 percent as compared to approximately HK$34,138 million for the corresponding period of last fiscal year. Gross profit margin declined to 6.87 percent as the Group cleared its stocks swiftly in a judicious move to avoid risks amidst soft demand in the consumer market and increasing competition and uncertainties in technologies and products since the beginning of the fiscal year. Meanwhile the Group's expense ratio during the Period was lowered by 0.63 percentage point year-on-year to 5.02 percent due to stronger cost control measures in line with the Company's persistent implementation of the operating principle of "prudent progress and streamlined establishment with enhanced efficiency". Other positive contributing factors included proactive stock clearance and enhanced trade receivables management. Profit attributable to equity holders of the parent during the Period amounted to approximately HK$741 million, up 11.39 percent as compared to approximately HK$665 million for the corresponding period of last fiscal year. Basic earnings per share were 69.39 HK cents, up 11.92 percent from 62.00 HK cents for the corresponding period of last fiscal year.
Since the beginning of the current fiscal year, risk control and cash flow management have been the Group's priority tasks for this fiscal year, fully considering the risks associated with market volatility. The Group's efforts have paid off well, assuring ongoing sound and stable business growth. Net cash inflow from operating activities amounted to approximately HK$338 million for the six months ended 30 September 2012 in sustained positive performance. Meanwhile, the Group stood at the industry's top levels in terms of working capital efficiency with further improvements, as represented by a cash turnover of 14.20 days for the period, being 1.35 days less than 15.55 days reported for the corresponding period of last fiscal year.
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