Digital China : VOLUNTARY ANNOUNCEMENT MEMORANDUM IN RELATION TO STRATEGIC COOPERATION WITH CHINA MOBILE INTERNATIONAL LIMITED IN THE OVERSEAS DIGITAL ECONOMY MARKET

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VOLUNTARY ANNOUNCEMENT

MEMORANDUM IN RELATION TO STRATEGIC COOPERATION

WITH CHINA MOBILE INTERNATIONAL LIMITED IN THE

OVERSEAS DIGITAL ECONOMY MARKET

This announcement is a voluntary announcement made by Digital China Holdings Limited ( 神 州 數 碼 控 股 有 限 公 司 *) (the "Company", or "DC Holdings", together with its subsidiaries, the "Group").

The board of directors of the Company (the "Board") is pleased to inform the shareholders of the Company (the "Shareholders") and potential investors that the Company signed a memorandum in relation to strategic cooperation (the "Memorandum") with China Mobile International Limited ("CMI") in Hong Kong on 27 April 2021 to jointly explore business opportunities and provide more diverse, multi-level digital services to government and enterprise customers in Hong Kong and abroad, as well as to collaborate and better tap the trillion-dollar overseas digital economy market.

According to the Memorandum, both parties will work together across various fronts in the ICT industry integration services market including Big Data Services, AIoT Services, Smart Supply Chain Services and Security Technology Services, providing comprehensive services and support to clients for their development in Hong Kong and abroad.

5G, big data, Internet of Things, artificial intelligence and other new technologies keep evolving every day. With the arrival of a new era in digital infrastructure and Internet of Things, there are less information layers globally, providing more opportunities for the Group to deal with the two core elements of "people" and "products". A new pattern of "industry", "city" and "human" integration is gradually forming, driven by smart city construction. Smart cities produce data which is subsequently captured by big data analytics and technologies utilized to propel smart supply chain services and solutions.

Both CMI and DC Holdings each play a crucial role in this new era, with DC Holdings' leading expertise in big data technology combined with a successful and long track record of product application and deployment, and with CMI as a market leader in the telecommunications space with strong digital infrastructure deployment capabilities as well as a vast customer base. Such core elements of both parties are highly valuable and sought after in the digital economy.

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As a proprietary and globally unique big data product developed by the Group, "Yan Cloud DaaS" is common feature supporting the development of a potential trillion-dollar big data industry ecosystem, and is also a tool for the development of new digital infrastructure in different regions. The Group can leverage its industry expertise of over 20 years in the supply chain business to help its expansion in big data services to serve the full industrial value chain. Engaging in various supply chain service usage models, the Group can build an end-to-end supply chain software product through continuous refinement of data and algorithms in its core data infrastructure, and provide intelligent data services for all types of clients.

In addition, the Group's proprietary innovation capabilities also developed the world's first 4- in-1 biometric identification security product which efficiently integrates face, iris, palm vein and fingerprint identification technologies, achieving a complete non-physical contact identification which can be widely applied across many usage models such as governments, enterprises, financial institutions, industries, schools, hotels, prisons and communities.

The data generated by the connectivity between "people" and "products", as well as between "products" themselves is rapidly increasing through deepening applications of 5G and Internet of Things. The improvement in accuracy and speed of data integration for its application to citizens, government and industries is a crucial element in the overall big data industry development. The partnership between DC Holdings, a technology-leading big data services enterprise, and CMI, a leader in the information and communications sector, will be highly anticipated in both the city and industry big data models.

China Mobile International Limited's background

CMI is a wholly-owned subsidiary of China Mobile Limited (Stock code: 00941) ("China Mobile"), mainly responsible for the operation of China Mobile's international business. CMI provides comprehensive international telecommunications services and solutions to international enterprises, carriers and mobile users.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

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

Hong Kong, 27 April 2021

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. PENG Jing and Mr. ZENG Shuigen

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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