Thriving Industrial Digitalisation. Firmly seizing the opportunities emerging from the upgrade
demands for digitalisation of the economy and society, the Company leveraged its unique edges in cloud-network integration and its vast reserves in the Industrial Digitalisation field to deeply integrate the essential elements of the digital economy
with emerging information technologies to build a digitalised application platform. The Company repackaged its fundamental capabilities with 5G, e-Surfing Cloud and security as the core to enable numerous
walks of life with intelligence injection and endowment. The Company formed an expert team with 36,000 staff to provide localised services, meeting customers demands for customisation in various use cases. In the first half of the year, the
growth of the Companys Industrial Digitalisation8 accelerated, with its revenue reaching RMB50.1 billion, representing an increase of 16.8% over the same period of last year.
The value of 5G applications became visible, following an extensive, adoption in various fields such as government administration, finance, industry, society
and livelihood. The Companys three 5G customised network service modes, namely Wide-area, Adjacent, and Wingspan, fully demonstrated the characteristics of standalone (SA) network and significantly enhanced
its customers operation and management efficiency through the intelligence injection and endowment to traditional industries. A series of benchmark projects in the areas of smart factories, mines, ports, power grids and cities among others,
have been quickly replicated in many places across the country, with 5G business models based on network coverage area, computing resources, platform management, applications and services becoming increasingly diversified. In the first half of the
year, 5G applications in the government and enterprise area have gradually moved into the harvesting stage, with the number of 5G use cases being nearly doubled compared to the end of 2020. The market demand is expanding at an explosive pace.
The edge of e-Surfing Cloud has been reinforced on all fronts, becoming a cornerstone for building Cyberpower and
Digital China. More than 50 key core technologies made breakthroughs in areas such as elastic computing, distributive storage, mega-scale data processing, and content delivery networks (CDN). The Company has teamed up with hundreds of ecological
partners to create more than two hundred cloud products in computing, storage, network, database, CDN, device, Big Data and AI, while also established the full stack cloud service capabilities covering infrastructure-as-a-service (IaaS),
platform-as-a-service (PaaS), and software-as-a-service (SaaS). Up to now, 50 of the Companys cloud resource pools have passed Grade 3 or above in the Network Security Graded Protection Assessment, while 66 resource pools
received the top rating of five stars +. This reflects that the Companys cloud is deeply trusted by customers. e-Surfing Cloud demonstrated significant differentiated market advantages in ubiquitous
government administration clouds such as large-scale state-owned enterprise clouds, medical clouds and education clouds. In the first half of the year, revenue from e-Surfing Cloud amounted to
RMB14.0 billion, representing a year-on-year increase of 109.3% and maintaining the leading market position within the industry, of which revenues from PaaS and
SaaS accounted for around 25%.
8
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Industrial Digitalisation mainly includes services such as Industry Cloud, IDC, Network Dedicated Line,
Internet of Things (IoT), Digitalised Platform and Big Data.
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A-5