On the evening of August 30, Digital China Group (000034.SZ) released its interim results report of 2023. During the reporting period, it achieved an operating income of 55.601 billion yuan and a net profit of 433 million yuan attributable to the parent company, up 11.19% year on year. Among them, the revenue of cloud computing and digital transformation business reached 3.188 billion yuan, up 34.48% year on year, and the revenue of independent brand business reached 1.510 billion yuan, up 88.40% year on year.

In the first half of 2023, Digital China actively responded to the ongoing challenges of economic recovery in the post-pandemic era and embraced new opportunities from the iteration of digital technologies such as AGI / AIGC, Digital China maintained prudent operation and deeply promoted the strategy of “data-cloud integration and information technology innovation”. Its overall income structure has improved continually with a stable growth in its profits, making it rank 123rd in the list of Fortune China 500 Listed Companies.

Focusing on AGI / AIGC
Digital China’s data-cloud integration accelerates the evolution of intelligence

With data assets as the core, it actively embraced the reforming and upgrading of large model and generative artificial intelligence technology represented by ChatGPT. During the reporting period, Digital China’s data-cloud integration technology system accelerated the evolution of intelligence, helped customers deepen their digital process, building its agile and intelligent capabilities for the future.

In terms of AI application, Digital China’s AI knowledge management platform Jarvis (AIGC version) has verified the feasibility of scenarios in multiple Fortune 500 enterprises, and has been continuously applied in scenarios such as pharmaceutical industry, customer service, and super employees. Jarvis can use the data without pre-marking for training, and has an excellent comprehension of Chinese, which can enable enterprise clients to launch their own chatbots in a short time, and achieve very ideal results for enterprise knowledge quiz, emotion analysis and sentence classification. Taking a well-known high-end cosmetics client as an example, during the reporting period, Digital China helped it realize the IT HelpDesk Bot which was put into production without training, providing excellent man-machine dialogue for all people of the client. Compared with traditional Bot, customers need not invest a lot of manpower in FAQ sorting, sample collection and training, but only invest a little manpower to prepare knowledge documents. The AIGC version of Jarvis can read, understand, summarize and provide humanized services for employees.

In such areas as AI training, the cooperation between Digital China and Microsoft has continually deepened. Now, it has combined Microsoft Open AI training with the basic certification courses of AI and needs of local customers to deliver localized training services. Recently, Digital China was awarded “2023 Microsoft China Region Partner of the Year Award winner”, becoming the best partner of Microsoft China in 2023.

Zhisuan China
Digital China’s own brands maintain a high growth rate

In the face of higher requirements of computing power raised by the rise of generative AI model, during the reporting period, Digital China launched “Zhisuan China Led by Shenzhou Kuntai ”, actively expanded its deployment in such fields as computing power of AI, strengthened the research and development of hardware products and services related with computing power, helped all sectors and quarters to build a computing power base with high performance and high security and support the application of artificial intelligence technology in various industries.

In terms of product development, Digital China released a new generation of central training server, which is based on Kunpeng 920 + Ascend 910 processor, integrated with sub-systems such as AI computing, which can be applied in service scenarios such as deep learning, model development and AI training, and support standalone and whole cabinet mode, with an excellent performance in many industrial scenarios. Therefore, it can meet the requirements of being deployed in the machine room of enterprises and the deployment of clusters in a large-scale data center.

In terms of industrial application, Digital China was actively involved in the construction, operation and service of AI centers in different places such as Shenyang and Shanghai to build a solid foundation for the innovation and development of regional AI computing industry. It has won the bids of AI identification projects of different places in the industries of security and traffic, and served a wide range of AI application scenarios such as face recognition and vehicle recognition. During the reporting period, Shenzhou Kuntai series products of Digital China successively won the Phase IV Golden Tax platform of four provinces and municipalities of the taxation sector and two procurement projects of servers with a value of over 100 million yuan of China Mobile and China Unicom, empowering AI scenarios such as intelligent inspection in the energy industry.

In addition, Digital China was selected as a computing power partner into the “Beijing General Artificial Intelligence Industry Innovation Partnership Program” (second batch) launched by Beijing Municipal Bureau of Economy and Information Technology together with the Municipal Science and Technology Commission, the Zhongguancun Administration Committee and the Municipal Development and Reform Commission; participated in the compiling of the Report on the Ecosystem Research and Case Analysis of China’s Edge Computing Industry recently released by the Open Data Center Committee; the “Bank of Communications Data Warehouse Computing Base Project” built by Shenzhou Kuntai won 2023 “Golden Tripod Award", and the intelligent desktop cloud solution of information technology innovation won the “Excellent Solution Award” of the Fifth Electronic Institute of the Ministry of Industry and Information Technology. While enabling the development of the industry with its own capabilities, Digital China has also won a lot of praise.

At present, Digital China has become an important driving force for the development of society and economy, as its cloud provides a great computing power to build ubiquitous agility and the value of data has become an important measurement of the values of enterprises. Under the support of AIGC large model, data generation has picked up speed. The digital transformation of enterprises is developing in depth and advancing digitalization to evolve towards intelligence based on data. It has been deeply involved in the disruption and reform of digital technology to drive the upgrade and development of its own technology deployment. Digital China has taken firm steps in its strategic deployment of “data-cloud integration and information technology innovation”, growing steadily towards the goal to “become a leading digital transformation partner”.