(March 21, 2024, Hong Kong) Weishi Jiajie Holdings Limited (“Weishi Jiajie” or the “Company”, stock code: 00856.HK), a leading technology product channel development and technology solution integration service provider in the Asia-Pacific region, is pleased to announce the comprehensive results of the Company and its subsidiaries (collectively, the “Group”) for the year ended 31 December 2023 (the “reporting period”). Group Chairman and CEO Li Jialin, Group Executive Director and Group Chief Financial Officer Wang Weixin, Group Chief Technical Officer Lou Xiang, Group Chief Technical Officer Lou Xiang, Group Executive Director Chen Haizhou, and Group Executive Director Li Yue attended the results conference.

Continuously improve business standards, and all business sectors work together

In 2023, the international environment is complex and severe, and domestic economic development is facing multiple challenges. Under heavy pressure, the Group has risen to the challenge, continuously improved its management level and operational efficiency, and reached a new level of digital ecosystem construction. During the reporting period, the Group achieved operating income of HK$73.891 billion, a year-on-year decrease of 4.4%; net profit of shareholders after tax of HK$922 million, up 12% year on year; return on net assets (ROE) was 11.7%; and earnings per share were approximately HK65.52 cents.

Looking at business segments, the three major business segments of cloud computing, enterprise systems, and consumer electronics all maintained a steady development trend during the reporting period. Among them, revenue from the cloud computing sector was HK$3,084 billion, up 6.7% year on year; revenue from the enterprise systems sector was HK$40.4 billion, down 2.3% year on year; and revenue from the consumer electronics sector was HK$30.394 billion, down 8.1% year on year.

By regional segment, during the reporting period, the turnover in North Asia was HK$56.27 billion, a slight decrease of 6% from the previous year, accounting for 76% of the Group's total turnover; the turnover in Southeast Asia was HK$176.2, an increase of 2% over the previous year, accounting for 24% of the Group's total turnover.

Strengthen cooperation with leading cloud vendors, and the ability to operate and manage computing power is well recognized

The Group's cloud business continued to grow during the reporting period. On the basis of cooperation with public cloud vendors such as HUAWEI CLOUD, Alibaba Cloud, and AWS, new contracts were signed with Tianyi Cloud and Inspur Cloud. It won awards such as the “2023 Alibaba Cloud Partner Annual Award”, “HUAWEI CLOUD Commercialization Development - Technology Leader Award”, and “2023 Amazon Web Services re: Invent Conference Partner”.

At the same time, the Group continues to consolidate the Vplus cloud service platform construction foundation, provide more solutions for the cloud ecosystem market, and enrich cloud application scenarios. Continue to inject new impetus into the continuous expansion of the business.

Jiajie Yunxing, a subsidiary of the Group, is one of the first units in China to obtain the certification of trusted cloud and multi-cloud management platforms. At the same time, as a leading company focusing on diverse computing power operation and scheduling platforms, Jiajie Yunxing continues to upgrade the integrated computing power operation management platform.

During the reporting period, Jiajie Yunxing's computing power scheduling business increased by 40% year-on-year. It participated in the preparation of the “China Multi-Cloud Management Platform Development Insight Report (2023)” and was selected as a typical case in the “Research Report on the Development of Artificial Intelligence Computing Power in China (2023-2023)”. Obtain the “HUAWEI CLOUD Software Vendor” qualification and lead the development of the industry.

Seize new opportunities in artificial intelligence and continue to cooperate deeply with Huawei

In the enterprise systems sector, the Group actively promotes the layout of localized alternative industries, and cooperates with mainstream domestic credit and innovation manufacturers such as Huawei, Inspur, Zhongke Shuguang, and Qianxin to jointly build a new ecosystem in the Xinchuang industry. In the reporting period, the proportion of domestic brands in China reached 60%.

In line with the development trend of new technology, the Group has accelerated its layout and practice in the field of artificial intelligence, and has now become an important force in the field of AI construction. On the basis of maintaining long-term strategic cooperation with cutting-edge server vendors such as Huawei, Xinhua 3, Inspur, Dell, HP, and Asus, the Group has successively signed 7 Huawei Kunpeng OEM partners (Hyperfusion, Baode, Tiangong, Baixin, etc.) in recent years. In addition to AI servers, we have also fully cooperated with iFLYX, Kuangshi, Shangtang and other manufacturers in the field of AI applications, while also developing the domestic GPU market through cooperation with Jingjiawei and Kunlunchip. During the reporting period, the Group's AI-related business revenue reached 3.8 billion, an increase of 83% over the previous year.

Weishi Jiajie has been cooperating with Huawei for more than ten years. Currently, Weishi Jiajie is not only the general dealer of all Huawei government and enterprise business product lines, but also an important partner of HUAWEI CLOUD. It has four qualifications as a HUAWEI CLOUD general dealer, solution provider, transformation service provider, and learning and empowerment partner. At the same time, its subsidiary Jiajie Yunxing has also become a software supplier to Huawei. Through years of in-depth cooperation in markets such as Singapore, the Philippines, Malaysia, and Thailand, Weishi Jiajie has become one of Huawei's most trusted partners in the region. With its outstanding performance over the years, Weishi Jiajie has won the “World's Best Distributor” award many times.

Strengthen the consumer electronics layout education sector

With the recovery of the consumer electronics market, on the basis of maintaining innovation in online and offline business models, the Group's consumer electronics business sector strategy changed from growing bigger to stronger. Upstream selects influential manufacturers, and downstream deepens cooperation with core agents to meet the diverse needs of major customers. During the reporting period, the Group's mobile phone business achieved a major breakthrough and became the most important strategic partner for domestic Apple companies to serve customers; OPPO's performance grew rapidly, with an increase of more than 100%. The diversified product layout and omni-channel expansion have laid a solid foundation for the steady growth of the Group's consumer electronics business in the future.

Seize development opportunities to expand the Southeast Asian market

Through in-depth deployment in Southeast Asia, Weishi Jiajie has achieved continuous and steady growth in performance, accounting for 40% of profits.

In Malaysia, Weishi Jiajie has become the preferred partner of Starlink Network. At the same time, we are actively developing new energy fields and exploring business opportunities for products such as electric vehicle chargers and solar inverters. In Thailand, Weishi Jiajie is actively expanding the number of cooperative brands. At the same time, it is planned to open branches in 11 provinces to provide customers with diversified services such as training centers and product and solution showrooms. In the Philippines, Weishi Jiajie's cybersecurity business is growing rapidly. In Indonesia, the businesses of Huawei, Lenovo, and Samsung performed well.

On the basis of maintaining cooperation with domestic brands such as Huawei and Lenovo, Weishi Jiajie recently reached agreements with well-known brands such as D-link, Dahua, and Skyworth during the reporting period to jointly expand the Southeast Asian market.

With its outstanding performance in Southeast Asia, Weishi Jiajie (Thailand) won the NVIDIA FY23 Best General Dealer Award, the HP Printing Hardware General Dealer Highest Growth Award, and the Cisco FY23 Best General Dealer Award. Weishi Jiajie (Singapore) received the Nvidia FY23 Best General Dealer Award. Weishi Jiajie (Malaysia) won the three-year highest net profit growth rate award and the three-year highest shareholder return award at The Edge Malaysia Centurion Club corporate award ceremony. Weishi Jiajie (Indonesia) has received many awards from Lenovo.

In 2024, Weishi Jiajie will continue to adhere to the core values of “pursuing excellence”, thoroughly understand and explore customer needs, continue to enrich the variety of products and services, further increase market share, enhance core competitiveness, create greater value for shareholders, and create more returns for society.

Source: WeChat Official Account “Weishi Jiajie Group”