DC HOLDINGS surged nearly 50% in the early trading session as its subsidiary Digital China Information issued a profit warning

Digital China Holdings (00861.HK) today (2nd) saw its stock price rise nearly 50%, reaching a high of HKD 3.95. It is currently reported at HKD 3.61, up 35.71%, with a trading volume of 38.472 million shares, involving HKD 137 million.

Digital China Holdings announced that its indirectly non-wholly-owned subsidiary, Digital China Information (000555.SZ), had a net profit attributable to shareholders last year ranging from RMB 46 million to RMB 69 million. In 2024, it is expected to incur a loss of approximately RMB 524 million. The expected turnaround from loss to profit is mainly due to the active market expansion, which has led to an annual increase in operating revenue, driving profit growth; secondly, the company has strengthened its accounts receivable management, resulting in an overall improvement in collection, with a year-on-year decrease in accounts receivable impairment losses; in addition, goodwill impairment losses have also significantly decreased compared to the same period last year