Digital China’s latest annual report indicates that its long-signaled pivot is beginning to show up in its financial results. The Shenzhen-listed company, once known mainly for IT distribution, said artificial intelligence became a key growth driver in 2025, putting it closer to parity with the traditional businesses that long supported its scale.
According to its full-year 2025 earnings report, released recently, Digital China posted revenue of RMB 143.8 billion (USD 20.9 billion), up 12% year-on-year (YoY). Its top line has now risen for three consecutive years. AI-related business generated around RMB 33 billion (USD 4.8 billion) in revenue, up 48%, which the company said marked its entry into scaled deployment and made it a major growth driver alongside its traditional distribution business.
By segment, the company’s strategic businesses posted strong growth.
AI software and services centered on its Smart Vision platform generated RMB 110 million (USD 16 million) in revenue, up 165.4% YoY, as its enterprise-grade agent middleware platform entered the commercialization stage.
Cloud, data services, and software brought in RMB 3.56 billion (USD 516.8 million), up 22%.
Revenue from KunTai, its in-house computing brand, rose 62.4% to RMB 7.44 billion (USD 1.1 billion), making it an important part of its AI infrastructure business.
AI ecosystem business revenue reached RMB 21.92 billion (USD 3.2 billion), up 48%.
In its IT distribution and value-added services segment, the electronic components distribution business stood out. Revenue from that unit reached RMB 28.2 billion (USD 4.1 billion), up 40%, supported by demand for AI chips and domestic substitution. The business also provided steady cash flow for the company’s strategic transition.
The company also pointed to momentum in customer acquisition and orders. The number of signed clients for its strategic businesses rose 167% YoY, while the number of clients contributing contracts worth more than RMB 1 million (USD 145,161.1) increased 125%. Contract value from the internet sector exceeded RMB 60 billion (USD 8.7 billion), up 915% from a year earlier. Its flagship clients span healthcare, automotive, high-end manufacturing, and telecommunications, which the company said reflects market demand for its AI solutions.
Behind that growth is what the company describes as the “AI-for-process” trend. It argued that most enterprise AI applications remain at a relatively shallow stage, such as API calls and question-and-answer assistants, and have yet to be integrated into core business processes. Using process redesign as its entry point, Digital China has built a three-layer architecture consisting of computing infrastructure, a model foundation layer, and an agent runtime layer. The company said this has given it a set of capabilities spanning technology, scenarios, and workflows, allowing it to provide end-to-end support for enterprise AI deployment.
At the center of that effort is Smart Vision’s enterprise-grade agent middleware platform, which connects knowledge workflows across compute scheduling, data operations, and scenario-based services. In healthcare, the company worked with Peking Union Medical College Hospital to build a perioperative pancreatic cancer clinical decision support system that it said achieved a diagnostic accuracy rate of more than 94% and reduced the time doctors spent processing materials by 80%.
In high-end manufacturing, it said it used a multimodal AI vision agent to enable autonomous production line optimization, linking real-time sensing, decision-making, and automated execution. In automotive and biopharmaceuticals, it said it has used scenario-based agents to redesign core business processes and improve efficiency.
On the computing infrastructure side, KunTai, built on the Kunpeng and Ascend technology stack, launched new products including the KunTai A989 I3 server and an integrated training-and-inference server. The company said these products can run hundred-billion-parameter large models efficiently using a single Ascend NPU card and a Kunpeng CPU, lowering the barrier to private deployment. Through its acquisition of Accton Technology’s mainland China business, it also said it has filled gaps across the AI infrastructure chain, including R&D, production, and supply chain capabilities.
Speaking at the earnings briefing, Digital China CEO Li Ying said that, heading into 2026, the company will focus on four AI priorities. These include using Smart Vision to connect the value loop between scenarios, models, and data, building an AI-ready enterprise data governance framework, creating a full-stack AI factory computing product portfolio, and deepening open cooperation across the AI ecosystem to support process deployment.
As competition intensifies and enterprise digital transformation moves deeper, Digital China is trying to reposition itself from an IT distribution company to a provider of AI-driven process redesign services. Its latest earnings and case studies suggest its AI-led cloud and data strategy is beginning to translate into commercial results.
The results also point to a broader shift in how technology companies are assessed. Revenue scale still matters, but AI deployment capability, the ability to redesign business processes, and the durability of ecosystem advantages are becoming more important.
KrASIA features translated and adapted content that was originally published by 36Kr. This article was written by Huang Nan for 36Kr.
Note: RMB figures are converted to USD at rates of RMB 6.89 = USD 1 based on estimates as of April 7, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.