Digital China: Subsidiary wins bid for 2.373 billion yuan China Mobile procurement project

On February 18, Digital China issued an announcement stating that recently, China Mobile's Procurement and Tendering Network released the "Notice of Candidate Winners for the 2021-2022 PC Server Centralized Procurement (Batch 1) (Packages 8 and 13)". The company's wholly-owned subsidiary Digital China (China) Co., Ltd. (referred to as "Digital China") is one of the candidates for winning bid for Package 8 of the project. Digital China's bid price is approximately 2.373 billion yuan (excluding tax), with a winning share of 22.22%.

Lenovo said that if the project can win the bid and be implemented smoothly, it is expected to have a positive impact on the company's future operating performance.

In terms of performance, Digital China expects to achieve operating revenue of 117.9 billion yuan to 127.1 billion yuan in 2021, an increase of 28.07% to 38.06% over the same period last year; net profit attributable to shareholders of listed companies is 200 million yuan to 260 million yuan, a decrease of 67.95% to 58.34% over the same period last year.

Digital China pointed out that the company's overall business maintained good growth, and its operating income is expected to increase by 28%-38% year-on-year. The cloud service business continued to maintain rapid growth, service capabilities continued to improve, and the business structure continued to improve. The cloud business revenue is expected to increase by 45%-55% year-on-year; at the same time, the company firmly continued to invest in its own brand business, focusing on key industries and core products, and its revenue is expected to increase by 120%-140% year-on-year.

Public information shows that Digital China is China's largest and most extensive IT distribution and value-added service provider. After more than 20 years of accumulation, Digital China has established a To B marketing channel network with the widest coverage in China (covering more than 1,000 cities in China), the largest ecological scale (covering more than 30,000 channel partners), and the highest operational efficiency (operational efficiency indicators such as inventory turnover rate and capital cost are significantly higher than the industry average). This channel network has long-term services and deep binding with a large number of domestic enterprise-level customers, with huge resource value and extremely high operating barriers. It is the preferred partner for domestic and foreign technology companies to enter the Chinese enterprise-level IT market.

The products covered by Digital China include mobile office equipment, computer accessories, smart hardware, Internet of Things devices, laptops, display devices, servers, storage devices, network equipment, application software and more than 10,000 other IT products. It has been ranked first in the domestic market in the field of IT distribution for more than ten years in a row.