Securities code: Digital China Group Co.Ltd(000034) securities abbreviation: Digital China Group Co.Ltd(000034) Digital China Group Co.Ltd(000034) investor relations activity record
No.: 20220331
□ specific object research □ analyst meeting
Investor relations □ media interview √ performance briefing
Activity category □ press conference □ Roadshow
□ site visit
□ others (teleconference)
, Western Securities Co.Ltd(002673) , Zhongheng assets, Yikun assets and personnel surnames, Ping An assets, Huachuang securities, Huabao fund, Huaan Securities Co.Ltd(600909) Guoyuan Securities Company Limited(000728) , Fulida assets, Duoshi consulting, Caixin securities, CAITONG fund, Anxin securities, ICBC Credit Suisse, China Galaxy Securities Co.Ltd(601881) international and other 38 investors / analysts and 30 media representatives
Time: 16:30-18:00, March 31, 2022
Venue: Beijing Digital Technology Plaza Shenzhou video wechat video number of Digital China Group Co.Ltd(000034) group
Guo Wei, chairman and President
Ye Haiqiang, executive vice president of listed company
RECEPTIONIST: Wang Bingfeng, vice president and Chief Strategic Officer
Name: Vice President Li Gang
Vice President Han Zhimin
Chief financial officer Chen Zhenkun
Secretary of the board of directors Liu Xin
Investor relations I. Introduction to the overall operation in 2021:
In 2021, the Digital China Group Co.Ltd(000034) revenue exceeded 100 billion for the first time, overcoming the impact of the environment, and the revenue increased by 33% compared with the activity, reaching 122.4 billion yuan. Yunhe’s own brands grew strongly, with cloud revenue of 3.88 billion yuan, a year-on-year increase of 46%; The revenue of independent brands was 1.65 billion yuan, double that of last year, reaching 127%. While the company’s business grew rapidly, it strengthened the investment in overall R & D. in 2021, the R & D expenses reached 240 million yuan, a year-on-year increase of 32%. Deduct non net profit of 670 million and maintain stable growth. In terms of operational efficiency, inventory turnover was optimized for 4.5 days and accounts receivable for 5.3 days. Thanks to the continuous optimization of two important assets, capital efficiency was further optimized. 2、 Progress and Prospect of Yunhe Xinchuang strategy: cloud business:
In 2021, cloud revenue increased by 46% year-on-year, of which MSP + ISV revenue increased by more than 50% year-on-year. In terms of cloud resale, the company has completed the comprehensive coverage of global mainstream public cloud manufacturers. This year, more breakthroughs and capability certifications have been made on Alibaba cloud, Huawei cloud, Microsoft cloud, AWS and Tencent cloud. In addition, the company officially completed the acquisition of 60% shares of gopomelo, a partner of Google cloud and Facebook in Southeast Asia, becoming one of the few enterprises in China to complete the layout of the world’s top five public clouds. In terms of MSP, the company was selected into the first report on China Cloud migration, modernization and management services by Forrester and the panorama of hybrid cloud industry issued by 2021 hybrid cloud conference hosted by China information and Communication Research Institute and China Communication Standardization Association. MSP capability has been affirmed by the industry. The company’s MSP has also been upgraded to MSP +, providing customers with MSP services based on cloud native architecture and concept. In terms of ISV, in the data service industry chain, the company has built full life cycle data value mining capabilities covering data collection, governance, analysis, modeling, data platform, system development and strategy application, as well as full life cycle data strategy consulting capabilities, and built multi scenario data tools and solutions. The company will provide customers with consulting, analysis, processing, implementation and other related services in the whole data life cycle. At present, it has reached the industry-leading level in data desensitization, data analysis and cloud data application development. Xinchuang business:
In 2021, the company’s independent brand and Xinchuang layout have been continuously recognized by the market. The company’s independent brand business increased by 127% year-on-year, and the related business of Xinchuang also increased several times. With its profound technical accumulation and practical experience in the information and innovation industry, the company was shortlisted in the list of “Top 40 information and innovation enterprises” released by the media of Xinhua news agency. This year, the company faced many challenges, but also fruitful. In the focused industry, the company has many landing cases and scenarios. For example, the company provides financial customers such as Bank Of Communications Co.Ltd(601328) , Guotai Junan Securities Co.Ltd(601211) with a computing base to support customers’ core applications and support customers’ attempts to localize the whole stack. In addition, the company also provides customized complete cabinet server architecture to provide customers with overall cabinet servers with high node density and high space utilization with the concept of energy saving, high density, rapid deployment and simplified engineering design. At the same time, the company has also built and operated China’s first Kunpeng Supercomputing Center in Xiamen. The new operation mode avoids the traditional problems of high investment, low income and difficult operation and maintenance. Since its launch, it has operated stably and has been recognized by Xiamen public security bureau, Meteorological Bureau and other customers. Strategic Outlook:
In the past year, the company considered upgrading the company’s cloud strategy from the perspective of two key factors of enterprise digital transformation: business agility and data capitalization.
First, cloud computing can provide unlimited computing power. At the same time, customers need the agility brought by the cloud. In addition, in the digital age, data has become a factor of production, and the value of data will become the standard to measure the value of enterprises, which not only determines the digital ability of enterprises, but also determines the breadth and depth of enterprise digital transformation. Therefore, the integration of data and cloud computing, that is, digital cloud integration, will truly provide maximum value for enterprise digital transformation. In the future, the company will spare no effort to build its own service and product capabilities on cloud native and digital native, integrate ecological forces, provide customers with ubiquitous agile IT capabilities and integrated data-driven capabilities, and finally help customers establish their own core capabilities and competitive advantages in new business scenarios and new business models. We will selectively build innovative digital business scenarios with customers in some segments, such as FMCG retail, finance, automobile and other industries. 3、 Technology strategy:
In the second half of 2021, the company started the medium and long-term planning of technology. Since the beginning of the 22nd century, the R & D direction, investment and layout of the company’s technology have been gradually carried out in accordance with the new plan. I would like to share with you the latest technology strategy of the company.
The opportunities and challenges brought by the superposition of digital transformation and drastic changes in technology ecology make Chinese enterprises need to update a complete technology stack, so they need assistance at all levels. Among them, what enterprises most urgently need is a new perspective to understand the key capabilities required by digital transformation and the specific path of digital transformation. At the same time, in the past few years, the company has accumulated a large number of solutions in cloud, data, automobile retail and other industries. Therefore, the company can make full use of its digital transformation ability to help customers face more digital challenges.
The final technology strategy is referred to as 3 + 2 technology planning, that is, the company will focus and make efforts on three technical capabilities: (1) the transformation of technology paradigm to form agile it capability; (2) Construction of data insight; (3) The formation of digital business strategy. Finally, we should achieve two goals for customers: (1) further rooted in the new it ecology; (2) Focus on the industry, form a unique scene of industry digital transformation, or give customers guidance on the path of industry digital transformation.
Another goal of the 3 + 2 technology plan is that the company should be more deeply integrated into the new technology ecology. There are three kinds of new technology ecology: cloud ecology, open source ecology and China’s information creation ecology. The information and innovation ecology is directly related to the national strategy. We have re sorted out the core competencies of information and innovation and formulated more solid direction plans and objectives. The plan is divided into three steps: first, the business model of the whole machine has been verified, and the company’s ability in supply chain management, customer business opportunity mining and sales service system construction has been verified; Second, build the competitiveness of standard products, further develop the whole machine structure and main board, gradually realize differentiation and expand competitiveness; Third, build the competitiveness of solution products, more closely combine with the digital transformation of customers, promote the comprehensive information and innovation industry ecology, and form new infrastructure solutions such as cloud native composable data center and dual carbon data center or industrial digital factory solutions. 4、 Q & a session: 1. What are the company’s layout and plans for the detailed calculation of Eastern mathematics? A: the release of the policy will accelerate the implementation of new digital infrastructure and bring new development opportunities to relevant industries. At present, the company has successfully built the world’s first data center and Supercomputing Center Based on Kunpeng computing ecology in Xiamen. After more than two years of development, Xiamen Supercomputing Center has made gratifying achievements. The company hopes to continue to promote and copy the business model of Xiamen Supercomputing Center to meet the needs of East digital West computing and national Xinchuang. 2. The company’s revenue exceeded 100 billion yuan for the first time in 2021, of which the distribution business accounts for a large proportion. What is the position and layout of distribution in the company’s overall business strategy in the future? A: distribution business is the main business of the company. It can be described as one body and two wings. One body means that distribution is the basis of the company’s business. Xinchuang and cloud, as two wings, are the company’s continuous breakthroughs in strategic business. The company’s distribution business has maintained a leading position in China for 20 years and is in the process of strategic transformation
In the process, the resource advantages and expansion capabilities of the channel partners of the distribution business in various vertical industries have effectively promoted the steady development of cloud business and Xinchuang business.
3. The whole construction progress, pre-sale, follow-up plan and arrangement of the company’s International Innovation Center IIC in Shenzhen, and its impact on future statements?
A: the IIC project covers an overall area of 25000 square meters and a construction area of 206000 square meters, including 100000 square meters of office self-supporting, 40000 square meters of apartments and 61800 square meters of construction area, including 6000 square meters of underground commerce, 19580 square meters of underground commerce and commercial villas and 3622 square meters of office buildings. From the current construction progress, although affected by the epidemic situation in Shenzhen, it is relatively smooth on the whole. We are optimistic that the IIC project will get the pre-sale license in the second half of 2022 and realize the completion filing of the whole project in early 2023. We are optimistic about the location of Shenzhen in the whole Dawan district and the development situation of Dawan district and Shenzhen. We are very confident in the regional advantages and geographical location of Shenzhen International Innovation Center. Since IIC is defined as an international innovation center, we hope to further introduce international and Chinese partners to settle the headquarters of Dawan District in Shenzhen International Innovation Center and jointly operate the international headquarters base. We are also confident in the overall sales, continuous operation and cash flow performance in the future.
4. What do you think of the shortage of Kunpeng chips?
A: in the past two years, not only CPU chips, but also electronic components are in short supply. In fact, Kunpeng chips have been continuously supplied. In the short term, it is sustainable to maintain the healthy operation of the whole Kunpeng ecosystem. We hope that with the strong support of the state and the independent innovation of Chinese enterprises, we can quickly solve the basic problems such as chip streaming of the whole industry and completely solve the problem of chip production capacity. 5. The company had some cooperation with other domestic chips such as Feiteng last year. Can you tell us some progress in cooperation? At the same time, does the company have any product cooperation with other domestic chips such as haiguang? A: last year, our cooperation with Feiteng and Godson has made substantial progress and implementation, delivered terminal products and notebook products, and all products have passed relevant national tests. We adhere to the route of Kunpeng + Feiteng, and make technical exchanges and strategic reserves with haiguang in a customized way from the perspective of customer demand.
6. The company proposes a new strategy of digital cloud integration. How to implement it?
A: we see that there is a strong resonance and integration between data and cloud. The success of many international enterprises is not simply using cloud and data technology, but integrating the two very well. too
