Digital China Holdings Full Year 2023 Earnings: CN¥1.23 loss per share (vs CN¥0.21 profit in FY 2022)

Digital China Holdings (HKG:861) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥18.3b (up 3.0% from FY 2022).
• Net loss: CN¥1.83b (down from CN¥310.4m profit in FY 2022).
• CN¥1.23 loss per share (down from CN¥0.21 profit in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Digital China Holdings Earnings Insights

The primary driver behind last 12 months revenue was the Traditional and Localization Services segment contributing a total revenue of CN¥9.87b (54% of total revenue). Notably, cost of sales worth CN¥15.6b amounted to 85% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling CN¥2.21b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how 861's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 13% growth forecast for the IT industry in Hong Kong.

Performance of the Hong Kong IT industry.

The company's shares are down 13% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 1 warning sign for Digital China Holdings that you need to be mindful of.

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