Computer distributer Digital China Holdings has surprised analysts by posting a growth of more than 20 per cent in both turnover and net profit in its interim results. Net profit for the six months to September 30 reached HK$80.75 million, up 20.86 per cent year-on-year, compared with HK$66.81 million for the corresponding period. Turnover was up 21.97 per cent to HK$4.93 billion for the same period. On a quarterly basis, Digital China's growth was even better than sister company Legend Holdings. Digital China was spun off earlier this year from Legend Holdings, China's top personal-computer maker. The mainland PC distributor generated HK$50.17 million net profit for the September quarter, representing a 64.06 per cent growth from the April-June quarter and a 20.46 per cent year-on-year growth. 'I think the company is very solid. Although the overall [IT market in China] shows a slowdown in growth, the company still managed to give us a pleasant surprise,' Alex Tang Yee-yuk, director of research at Core Pacific-Yamaichi International, said. Digital China yesterday said it would form a 40-60 joint venture with Taipei-listed Data Systems Consulting to develop enterprise resources planning software for the China market. The two would invest 50 million yuan (about HK$47.1 million) in the venture, expected to be set up early next year.