Digiworld Corporation - “DGW” announces business results for the second quarter of 2022 with net revenue of VND 4,910 billion and profit after tax of VND 137 billion. With this result, Digiworld recorded a growth of 16% in revenue and 17% in profit before tax over the same period in the second quarter of 2021.

Thus, in the first 6 months of 2022, Digiworld achieved total revenue and profit: VND 11,919 billion and VND 348 billion, respectively. Compared to the annual plan: VND 26,300 billion in revenue and VND 800 billion in profit, Digiworld is now 45% and 44% complete, respectively. In addition, the second quarter of 2022’s good growth also contributed to the excellent results of the first half of 2022. These remarkable results mainly came from the following core segments:

• Laptops & tablets segment: this industry reached VND 1,130 billion, down 15% compared with the same quarter last year. The reason for this decrease is: that the demand for laptops and tablets has already exploded due to the effects of the Covid-19 pandemic in the preceding quarters. So in the second quarter of 2022, the demand has saturated and decreased. In addition, the second quarter is usually the low season of this industry. So by the end of the second quarter, this segment achieved 35% of the annual plan.

• Mobile phones segment: this is the largest contributor to Q2 results with revenue of VND 2,704 billion, up 26% YoY. Because mobile phones have less applicability in studying and working, during the Covid-19 period, this segment did not create an outstanding boom in demand like the laptops & tablets segment. Besides, the characteristic of mobile phones is their short lifespan. Therefore, this segment still has room for growth. However, it has always grown well and is almost saturated over the years recently. So it will be difficult to achieve strong growth - particularly, 26% growth in this second quarter. The growth of this segment is attributed to the growth in the market share of brands: Xiaomi holds the 3^rd position with 15.8%, an increase of nearly 5% and Apple reaches 7.96%, an increase of 1% over the same period quarter last year. By the end of the second quarter of 2022, the mobile phones segment has excellently completed 53% of the annual plan.

• Office equipment segment: this segment recorded VND 984 billion in revenue – an increase of 48% over the same period. Similar to the mobile phone industry, the demand for office equipment did not drop sharply. Specifically, products such as PC, Monitor, Battery,... maintained sales equivalent to the last 2 quarters. Especially, Digiworld recorded an impressive revenue of VND 68 billion from Xiaomi's TV. About the new segment - home appliances (Joyoung and Whirlpool), Digiworld has recorded orders and we are in the stage of accelerating market penetration and development, doing in-depth research to be ready for strong growth in the near future – similar to how Digiworld helps other partners: build a foundation and grow stronger. By the end of Q2/2022, the office equipment segment achieved 47% of the annual plan.

• Consumer goods segment: this segment recorded VND 93 billion in revenue – an increase of 18% YoY. In the last quarter, the Healthcare products had signs of improvement. Especially from Genacol, Regenflex, and Stent products when compared to the low base of 2021 (due to hospitals and clinics (key channels) were congested due to the pandemic). The Nestle products also recorded good growth from powdered milk products. In addition, now Digiworld is completing the conditions for licenses and warehouses to serve the goal of becoming the leading pharmaceutical distributor in Vietnam, in the context of increasing demand for healthcare. By the end of Q2/2022, the consumer goods segment achieved 36% of the annual plan.

The second quarter of 2022 (units: VND billions)

After a period of remarkable growth throughout 2020-2021, especially in Q4/2021 and Q1/2022, in Q2/2022 Digiworld recorded slow growth in the ICT industry. The reason is that consumers no longer have strong demand for technology products when most consumers have a need and decide to buy during the Covid-19 pandemic. Therefore, in the short term, it will be difficult for consumers to continue to spend much on ICT products. In addition, the second quarter of every year is usually a low season because there are no special occasions to shop such as the Lunar New Year, the back-to-school season, etc., instead, people focus more on entertainment activities and travel. And the priority of spending on tourism and entertainment is even more because in the second quarter of 2022. Because the disease prevention measures are removed after 2 years of strictly applying.

In the second quarter of the year, there were many difficulties. But in general, this half year, with the spirit of readiness to conquer, Digiworld took advantage of the comprehensive market development capacity for a variety of brands to complete 45% of the annual plan. In addition, Digiworld is always focusing on and investing heavily in the Human factor in the 3C strategy. It helped Digiworld’s experienced team able to respond best to market fluctuations, micro and macro impact on consumer demand. Expected in the next coming quarters, the Digiworld team’s strategy and flexibility are going to take advantage of the demand push from events: back-to-school season, new product launch of Xiaomi, Apple, World season Cup, etc. Digiworld will conquer, achieve and exceed the 2022’s goals: 26,300 billion in revenue and 800 billion in profit.