Digital China : Supplemental information related to Annual Report for the year ended 31 December 2018

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SUPPLEMENTAL INFORMATION

RELATED TO

ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

The board of directors (the "Board") of Digital China Holdings Limited (the "Company" and, together with its subsidiaries, the "Group") would like to provide further information to the shareholders and potential investors of the Company in relation to the information disclosed in its annual report for the year ended 31 December 2018 (the "2018 Annual Report"). Terms defined in the 2018 Annual Report, shall, unless the context otherwise requires, have the same meaning when used herein.

As disclosed in the 2018 Annual Report, up to 31 December 2018, the Group had utilised HK$764 million of the net proceeds from its rights issue in September 2017. The remaining net proceeds from its rights issue of HK$571 million (the "Unutilised Proceeds") had yet been utilised in financing the Healthcare Big Data Investment or any other potential investments and acquisitions as and when any suitable opportunity is identified.

As at the date of this announcement, approximately HK$198 million of the Unutilised Proceeds have been utilised and it is expected that the remaining Unutilised Proceeds of HK$373 million will be fully utilised by 31 December 2020. All of the Unutilised Proceeds have been and will be utilised for financing the Healthcare Big Data Investment or any other potential investments and acquisitions as and when any suitable opportunity is identified.

By Order of the Board

Digital China Holdings Limited

(神州數碼控股有限公司*)

GUO Wei

Chairman and Chief Executive Officer

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Hong Kong, 23 October 2019

At the publication of this announcement, the Board comprises nine directors namely:

Executive Directors: Mr. GUO Wei (Chairman and Chief Executive Officer) and Mr. LIN Yang (Vice Chairman)

Non-executive Directors: Mr. YU Ziping and Mr. PENG Jing

Independent Non-executive Directors: Mr. WONG Man Chung, Francis, Ms. NI Hong (Hope), Dr. LIU Yun, John, Ms. YAN Xiaoyan and Mr. KING William

Website: www.dcholdings.com

• For identification purpose only

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