What is left of Digital China, which sold its dist

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What is left of Digital China after selling its distribution business

after renaming and selling shell assets, digital China's distribution business completed all procedures for listing a shares

some media think that digital China's move is a return to a shares, but it is not accurate. What is listed in Shenzhen stock exchange this time is the distribution business of Digital China. The company name is digital China Group (hereinafter referred to as digital China), while its parent company Digital China Holdings (the company name is changed from digital China to Digital China Holdings) continues to maintain its status as a listed company in Hong Kong

in terms of legal procedures, the spin off and listing of Digital China is a move to sell assets. After the completion of the transaction, the Hong Kong listed company, China Holdings, does not hold the shares of the A-share listed company, digital China group, whose main equity is held by the employees of Digital China group

Guowei, chairman of the board of directors of China digital holdings, took the post of chairman of China digital group. Supply chain and smart city business came to the forefront. As early as many years ago, Guowei, chairman of China digital holdings, said that China digital holdings, a Hong Kong listed company, would gradually transform into an investment company, retaining only the business in the incubation period, and each mature business would be independently tested on a material testing machine, mainly to test the physical properties of raw materials, finished products and semi-finished products. With this divestiture, the business structure of Digital China has become clear

the A-share listing through spin off is the distribution business started by Digital China, which is also its largest business segment. The annual sales revenue in 2015 was HK $59.7 billion

as early as the year before last, Shenzhou information, another major business segment engaged in IT services, completed the listing of a shares through backdoor. Shenzhou information is the largest solution provider in China, with a turnover of HK $8.2 billion (RMB 6.7 billion) in 2015

in addition to China information, the businesses that remain in China Holdings include two major parts: supply chain management and new business group

supply chain management has developed rapidly in recent years, with an annual turnover of HK $2.1 billion. The business adopts the Kejie brand and provides logistics services in the middle and back offices for enterprises, e-commerce and brand service providers. At the same time, it is also expanding its own maintenance services based on the Internet

this business is not well known because it does not involve in the last mile of logistics (i.e. express delivery), but it is actually very valuable. In the international and domestic markets, there are many excellent supply chain management enterprises. Yingmai international, the world's largest distributor acquired by HNA recently, has strong supply chain business capabilities (click to view relevant reports)

Shenzhou Holdings' new businesses include smart city and financial services, with a turnover of nearly HK $400million in 2015. Among them, the business of smart city has been carried out for a long time. The current business scope covers one center and three platforms, namely, urban information resource management center, citizen integration service platform, enterprise integration service platform and urban integration management platform. This part of the business needs to cooperate with local governments at the strategic level, and occupies a large amount of funds, which is still in the expansion stage

the financial services business, which provides financing, factoring, leasing, guarantee and other services, is a new business area of China Holdings

as the president of Digital China group, Yan Guorong was placed high hopes

distribution business A-share listing focused on incentives

it is worth noting that with this sale and backdoor listing, digital China trademark was also transferred from China Holdings. After the parent company uses the name of China Holdings, it service business will continue to use the name of China information. It can be predicted that its new business will also use a new name, including Kejie of the above-mentioned supply chain business and Shenzhou Yunke of the known cloud service business

after the A-share listing through sale, the management and employees of Digital China, including Guo Wei, became the direct shareholders of the new digital China group. Yan Guorong, former president of Digital China, and his team have moved to new listed companies. Guo Wei, the chairman of both companies, became the only link between China Holdings and digital China group

at the appreciation meeting for Digital China Group's landing in a shares, Guo Wei talked about three reasons for doing so. First, through listing, key employees and employees with special contributions can become shareholders, so as to unify the interests of employees and enterprises in terms of mechanism; Second, after returning to A-share, it becomes a complete domestic enterprise, which can meet the regulatory requirements of the government when developing cloud services; Third, it shows the full trust and affirmation of the team headed by Yan Guorong

in fact, Guo Wei did not mention another reason, that is, the valuation of listing in Hong Kong is low, especially the value of distribution business is not recognized by overseas investors, so it is more valuable to return to a shares. The actual stock market performance also proves this point

Digital China Group's new strategy

the new strategy aims at individual users and cloud services

from the day of its birth, digital China has become the largest IT product distributor in China until today

in recent years, the value of distributors has been constantly questioned and considered as simple logistics and capital flow providers. However, from the financial statements, the distribution giants, including digital China, have maintained good profitability, although their turnover has not increased or even declined

of course, even so, distributors are aware of the need to find future growth engines and try new business breakthroughs

for Digital China, more than 30000 channel providers accumulated over the years are its valuable resources. These downstream partners are distributed in 860 cities nationwide, covering more than 1million enterprise customers. It is the strategic thinking point of Digital China to make full use of these resources and develop new business on this basis

according to yanguorong, President of Digital China, the new strategy of Digital China in the future is to make full use of new technologies such as Internet, cloud computing and big data, provide cloud to end products, technical solutions and services for Chinese enterprise users and individual users, and create China's largest new ecosystem in the pan IT field

specifically, three ecological cooperation platforms will be launched successively: B2B business partner cooperation platform, innovative b2c2c intelligent product marketing service platform, and enterprise cloud service platform, covering 50000 channel partners, 1million enterprise users and more than 10million individual consumers in the next three to five years

from the above new strategies, it is not difficult for us to read the two most important keywords: individual users and cloud services. Obviously, digital China is not satisfied with just being a distributor, but should start to contact the final consumers. From 2b to 2, in the process of paper product quality sampling inspection every year, C is a major (2) the development of China's new materials 2025 and national defense equipment; Transformation of. Cloud services, on the other hand, are intended to help international manufacturers with a good foundation for cooperation to implement cloud services in China

it is understood that these two businesses are advancing, and further information may be released in the near future

three platforms to be launched

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