omniture

Digital China's TDR Successfully Issued on 24 November

Digital China Holdings Limited
2010-11-24 13:40 887

HONG KONG, Nov. 24, 2010 /PRNewswire-Asia/ -- Digital China Holdings Limited ("Digital China" or the "Group"; HongKong: 0861), the largest integrated IT service provider in Greater China, is pleased to announce that the Group successfully issued Taiwan depository receipts (TDR) today on the Taiwan Stock Exchange. It is the largest TDR issuance this year and marks a major breakthrough for the Group's business expansion in Greater China. The issue price is NT$30.2 per unit of TDR (equivalent to approximately HK$7.736) and each unit represents half of a share of Digital China.

Digital China's revenue, operating profit and earnings per share grew by a compound annual growth rate of 26.07%, 32.73% and 29.90% respectively over the last five financial years. Urbanization and industrialization are gathering momentum in China. Moreover, the government is stepping up efforts in promoting the convergence of tele-communications, TV and Internet networks, while cloud computing also gains popularity on the Mainland. Such developments offer considerable opportunities to the domestic IT sector. The Group's TDR issuance provides investors in Taiwan with a channel to participate in this growth.

According to the draft of the "Twelfth Five-year Plan" put forth by the fifth plenum of the 17th CPC Central Committee, the government will make coordinated efforts in promoting urbanization, informatization and industrialization, leaving plenty of future business opportunities in Sm@rt City's operations. The Development Research Centre of the State Council projected the urbanization rate of China will reach 47.2% by the end of this year. During the period of the "Twelfth Five-year Plan", it will climb further to about 51%. When China opened up its economy, the urbanization rate was only 17.9%, however, it shot up to 46.6% in 2009, which just stood at the mid-point of the fast growing period of 30%-60%.

The Group's Sm@rt City project addresses the needs of urbanization in China and provides comprehensive solutions to customers. It originally focused on IT distribution operations with comparatively lower profitability. However, as it expanded into higher value-added IT services businesses, profitability has also been substantially improved. This transformation helps to ensure the sustainable growth of the Group's operating results and better returns to shareholders. Digital China has undertaken preparations for Sm@rt City projects underway in 47 cities across the country. In addition, it successfully rolled out the Citizen Card project in several cities including Yangzhou, Wuxi, Zhangjiagang and Zhenjiang.

Mr. Guo Wei, Chairman and CEO of Digital China, commented, "The TDR issuance helps us develop a financing platform linking China, Hong Kong and Taiwan. We can thus have easy access to communication hardware and software providers in Taiwan, which allows us to introduce Taiwan's quality products and services to Mainland China. It creates a win-win situation for both sides. During the accelerating urbanization process on the Mainland, Digital China will work closely with Taiwan's IT brands to expand into 4th to 6th tier cities where we should find ample business opportunities."

About Digital China

Digital China Holdings Limited ("Digital China" or the "Group"; Stock Code:00861.HK) is the largest integrated IT service provider in the Greater China area. Digital China has regional centers in 19 major cities nationwide with approximately 9,700 employees. The Group provides customers with comprehensive IT products and services that drive technological innovations for work and life and that enhance the digitalization process in China with four core businesses: IT Services, Enterprise Systems, IT Products Distribution and Supply Chain Services. The Group has maintained its No.1 position in IT product distribution while it has increasingly focused on expanding into IT services. It is one of the top five IT services providers across various sectors in China including telecommunications, finance and government, providing self-developed and proprietary products that are customized for specific industry needs.

For additional information about Digital China, please visit the Company's website at www.digitalchina.com.hk.

For investor and media inquiries:




Wycee Liu


Digital China Holdings Limited


Tel: 852-3416-8089


Email: liuyqa@digitalchina.com




Judie Zhu


Digital China Holdings Limited


Tel: 852-3416-8090


Email:zhusja@digitalchina.com




Henry Chik


PRChina


Tel: 852-2522-1368


Email: hchik@prchina.com.hk




Eric Song


PRChina


Tel: 852-2522-1838


Email: esong@prchina.com.hk




Lily Lai


Digital China Holdings Limited


Tel: 852-3416-8133


Email: lilylai@hk.digitalchina.com




Ada Tsang


PRChina


Tel: 852-2522-2823


Email: atsang@prchina.com.hk





Source: Digital China Holdings Limited
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