DIGIWORLD REACHED A STRONG GROWTH OF 140% IN PROFIT IN THE SECOND QUARTER OF 2021, EXCEEDING 2/3 OF THE YEAR'S PROFIT PLAN IN THE FIRST 6 MONTHS

Ho Chi Minh City, July 20, 2021, Digiworld Corporation (“DGW”) announced its business results for the second quarter of 2021 with the outstanding growth of net revenue and post-tax profit of VND4,218 billion and VND116 billion, respectively. The revenue increased by 63% while the post-tax profit recorded a strong increase of 140% compared to the same period of the second quarter of 2020.

Therefore, after the end of the first 6 months of 2021, Digiworld gained a total revenue of VND9,225 billion, up 88% and the pre-tax profit of VND233 billion, up 139% over the same period in 2020. Compared to the business plan set out for 2021 - VND15,200 billion in revenue and VND300 billion in profit, Digiworld has achieved 61% of the year's revenue plan and 74% of the profit plan, successfully completing 2/3 journey of 2021.

Digiworld's business results are recorded specifically for each category as follows:

  • Laptop & tablet category: In the second quarter of 2020, due to the outbreak of the Covid-19 epidemic, which increased the demand for computers and laptops, Digiworld recorded a sharp increase in both revenue and profit. In addition, the second quarter is usually the lowest quarter of this category in the year, which makes the comparison base of the second quarter of 2021 even higher. However, in the second quarter of 2021, Digiworld still recorded a growth of 23% over the same period in 2020, reaching VND1,330 billion. This growth is thanks to all existing brands and the contribution of 2 new brands, namely Apple and Huawei.
  • Mobile phone category: In the second quarter of 2021, this is the category with the largest contribution to Digiworld's revenue. Specifically, the revenue from the mobile phone segment recorded a strong growth of 87% over the same period in 2020, reaching VND2,146 billion. This mobile segment contributed more than 50% of Digiworld's revenue for the whole second quarter of 2021. The growth of this category is thanks to Xiaomi's continuously increasing market share as well as the revenue contribution from Apple's iPhone lines.
  • Office equipment category: In this second quarter of 2021, Digiworld recorded the impressive revenue growth, reaching VND633 billion, up 122% over the same period last year. Digiworld has achieved these impressive results thanks to the diversity and suitability of many customer segments of IOT products from Xiaomi, Huawei and Apple brands. The revenue from these products is increasing and the trend of using IOT products is also increasing, making them the main growth driver of the Office Equipment category in the coming time.
  • Consumer goods category: In the second quarter of 2021, this is probably the one most affected by long periods of social distancing as well as a spending reduction of the people due to economic difficulties during the epidemic season, specially for health care products. However, consumer goods products for life such as detergent, fabric softener, toothpaste, dishwashing liquid, etc., still recorded positive signs. Therefore, the revenue of the consumer goods category in the second quarter of 2021 reached VND79 billion, up 34% compared to the same period last year.

The second quarter

Q1/20

Q1/21

YoY

6M2020

6M2021

YoY

Plan

%Plan

Laptops and tablets

1,080

1,330

23%

1,871

2,705

45%

5,000

54%

Mobile phones

1,146

2,146

87%

2,288

4,979

118%

7,500

66%

Office equipment

298

663

122%

613

1,381

125%

2,200

63%

Consumer goods

59

79

34%

122

160

31%

500

32%

Net revenue

2,583

4,218

63%

4,894

9,225

88%

15,200

61%

Post-tax profit

48.0

116.0

142%

93.0

223.0

139%

300.0

74%

Unit: VND billion

In the first 6 months of 2021, the evolution of the Covid-19 epidemic in Vietnam and the world is still extremely complicated. Up to now, the Covid-19 epidemic is still affecting the technology, manufacturing and electronic goods supply industries. Typically, the shortage of electronic chips leads to a lack of goods to supply or causes the price of goods to rise. These are also the difficulties facing by Digiworld. However, Digiworld, with the motto "Turn challenges into opportunities" and its strength of nearly 25 years of experience in the distribution field and being the TOP 2 distributors of technology products in Vietnam, always finds its business directions and potential opportunities in the challenges facing by us to continue the momentum of growth and development and record breakthrough results.

To firmly conquer new challenges, Digiworld always focuses on the Company's 3C development strategy, which is: Con nguoi (People) - Co so (Facilities) - Co hoi (Opportunities). In the next 2 quarters of 2021, Digiworld will always strive and accelerate to soon complete the set plan for 2021 - set revenue of VND15,200 billion and profit of VND300 billion. In addition to actively doing business to complete the year's plan, doing business well and outstanding achievements are also the foundation for Digiworld to move closer to the of orientation "A Billion-Dollar Company".

Attachment: Consolidated Financial Statements 2nd Quarter 2021