Shenzhou Digital First quarter to achieve turnover of about HK $16.013 billion

Digital China adhere to the "smart city" strategic choice, the first quarter with Chongqing, Huizhou signed a strategic cooperation agreement with the Public Integration service platform as the center, around cloud computing and large data industry development as the core, in the intelligent city construction, E-commerce industry, it financial services and other areas of all-round cooperation.

For the three months ended June 30, 2013, the digital operating cost rate of Shenzhou (the percentage of total operating expenses accounted for the total turnover) was 5.12%, maintaining a stable situation compared with the same period of fiscal year, and the total amount of operating expenses was negative. Affected by seasonal fluctuations, the digital services business in Shenzhou has achieved a turnover of about HK $1.801 billion over the three months ended June 30, 2013, down 15.15% from the same period in the previous fiscal year.

Distribution business: Accelerate the adjustment of business structure;

Digital China distribution business mainly for small and medium-sized Enterprises and consumer distribution of common IT products, including notebook computers, desktops, peripherals, kits and consumer IT products.

As macroeconomic growth slowed further, the demand for it consumer markets began to show a downward trend last year. In the first quarter, China's digital distribution business achieved a turnover of about HK $7.804 billion, down 11.37% from the same period in the previous fiscal year.

Shenzhou Digital to take "one minus two increase" strategy to increase mobile interconnection based on the introduction of related products, cultivate new business growth. The first quarter, digital China successfully introduced Microsoft Surface tablet Computer commercial channel proxy.

System business: Insist on share management

Shenzhou Digital Systems business mainly for enterprise-class customers to sell value-added distribution system products, including servers, network products, storage equipment and packaged software.

In this fiscal year, there was a marked slowdown in the enterprise-class market IT investment, and the performance of major suppliers in China has declined in varying degrees. For the three months ended June 30, 2013, the Shenzhou Digital system business achieved a turnover of about HK $6.091 billion, down 7.67% from the same period in the previous fiscal year. The system business has a gross profit margin of 8.68%, up 34 basis points over the same period in the previous fiscal year.

China's first-quarter software product revenue rose 17.62% from the same period in the previous fiscal year, with slowing demand growth in the domestic enterprise IT market.

Supply Chain service business: adjusting business structure

Shenzhou Digital supply chain service business mainly for High-tech Enterprises, E-commerce platform and brand service providers, to provide logistics, business flow, capital flow, information flow of one-stop consulting and implementation services.

For the three months ended June 30, 2013, the overall turnover of supply chain services was about HK $318 million, which grew by 25.9% over the same period in the previous fiscal year.