DC Holdings (00861) Annual Report 2024 Full Analysis: Focus on the core business, activate new momentum for sustainable development.

On April 25, Digital China Group Holdings Limited (00861) released the "2024 Annual Report" and the "2024 Environmental, Social and Governance Report", showcasing the company's development status and strategic deployment from all aspects. Upon reviewing various business indicators of the company, it can be observed that despite facing pressure from the environment and the market, the overall governance structure of the company is healthy, the development trend is stable, and the future prospects are optimistic. Not long ago, the company also ranked first in the Hong Kong information technology industry ESG performance list by Huazheng Index, demonstrating the market's full recognition and confidence in the company's development. I. Robust Performance: Focusing on Strategy and Business Resilience to Strengthen Development Foundation According to the 2024 financial report, DC HOLDINGS achieved a revenue of 16.657 billion RMB for the whole year. The company's business maintained steady development, with strong asset strength, abundant cash flow, and sufficient orders in hand. As of the end of 2024, the company's total assets were 22.307 billion RMB, net assets were 9.507 billion RMB, operating cash flow for the reporting period was 6.00 billion RMB, new contracts signed were 113.77 billion RMB, and contracts signed but not yet sold were 69.44 billion RMB, laying a solid foundation for long-term and stable growth of the business. At the same time, DC HOLDINGS focuses on the integration and innovation of AI technology with smart supply chains, financial technology, and other physical scenarios, continuously increasing core technology investment in the field of data value release and AI scenario applications, demonstrating strong strategic determination. In 2024, the company's R&D expenses were 732 million RMB, with 390 new patents, and leading the compilation of 184 national and industry standards, laying a solid foundation for the company's long-term development in the digital field. II. Integration of Communication and Specialization: Technology-driven and Deep cultivation of scenes form a growth flywheel Facing the AI technology revolution, DC HOLDINGS seized the initiative with the "technology + scene + ecosystem" model and created replicable typical cases in multiple business areas. Relying on the Yanyun DaaS transmitted by the first prize of the National Technology Invention Award, it was further upgraded and iterated into Yanyun Infinity, becoming the core engine that drives the company's business development, and also becoming a powerful tool for releasing the value of data elements. In terms of promoting the landing of AI technology in scenarios, the company helped a leading food enterprise build a supply chain control tower, with over 90% of customer risk warning items, over 20% increase in delivery efficiency, over 20% increase in on-site logistics efficiency, over 5% cost savings, and a 65% reduction in consumables. Not long ago, the company signed consecutive contracts with Changchun First Automobile and SAIC General Motors Wuling, relying on over 2,600 network points nationwide, creating a data intelligent chain service model for chain operations, which can achieve real-time response and rapid on-site localized operation support, thoroughly solve the problem of delayed response to industry service across regions, and seize the initiative in the current market demand for data intelligence. III. Governance Level: Building a stable core through compliance management and talent development In terms of compliance management, the company strengthens compliance management responsibilities through daily risk control by business departments, special supervision by compliance departments, and independent assessment by internal audit. In terms of ethical conduct, a zero-tolerance culture for fraudulent behavior has been formed, with a 100% coverage rate of suppliers signing clean agreements. The company has established a standardized process control and refined management division of labor to achieve a long-term guarantee mechanism for compliance management. In terms of talent strategy, DC HOLDINGS has completed a perfect human resources management system in more than twenty years, forming an elite management team and corporate culture. For high-potential executives in key positions, the company conducts training through a lecturers team consisting of members of the president's office, core management team, and external guests, forming an effective mentoring mechanism. The report shows that in 2024, the total number of company employees was 19,268, representing an increase of approximately 15% compared to the previous year, demonstrating the company's sustained investment in business expansion and team building. In 2025, the government work report clearly proposes to "accelerate the construction of Digital China" and continue to promote the "AI+" action. At the same time, the promulgation of the "Effective Reduction of the Logistics Costs Action Plan" makes reducing logistics costs a core strategic measure to improve economic operational efficiency. DC HOLDINGS is entering a new historical opportunity period with its unique underlying data intelligent technology and deep cultivation in the supply chain scene, and believes that DC HOLDINGS, which is light and agile, will embark on a more robust growth trajectory in the new era.