Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

VOLUNTARY ANNOUNCEMENT

MOU IN RELATION TO THE STRATEGIC COOPERATION WITH

SAMSUNG SDS AND DIGITAL CHINA GROUP

This announcement is a voluntary announcement made by Digital China Holdings Limited (the "Company").

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 of understanding (the "MOU") with Samsung SDS (Beijing) Co., Ltd. (hereinafter referred to as "Samsung SDS") and Digital China Group Co., Ltd. (listed on the Shenzhen Stock Exchange; stock code: 000034; hereinafter referred to as "Digital China Group") in Beijing on 28 October 2019, covering the development of cloud services, smart industry chain, smart cities and digital transformation for enterprises in China.

According to the MOU, the three parties will further strengthen technical cooperation in cloud computing, big data, artificial intelligence, and internet of things based on strategic synergy and long-term mutual partnership and trust, actively expanding into businesses including smart cities, smart industry chain. Through complementary resources and alliances, the resources of the three parties will be integrated in platforms, industry solutions and new technology products to create digital service capabilities and jointly promote the digital development of China.

The three parties agreed to launch discussion on the implementation of the technical and commercial solutions of Samsung SDS in the Chinese market, including internet of things, smart industry chain, artificial intelligence, robotic process automation solutions, cloud computing, big data, and smart agriculture. At the same time, a newly established innovation center will create new application scenes, research and development solutions and results demonstrations; the three parties will focus on smart industry chain, smart cities, digital transformation for enterprises and other key areas. The three parties will actively carry out technical exchanges and knowledge sharing, and use Chinese application scenes to focus on the development of localized joint solutions and platform products around the internet of things, artificial intelligence, robotic process automation solutions, cloud computing, big data, and smart agriculture, in combination with the existing technologies and products of the three parties. In addition, the three parties will jointly develop marketing and implementation plans based on original and jointly developed products.

Over a long period of time, the Company has continuously promoted the smart urban development and the digital transformation of enterprises with its core technology of independent innovation, and is committed to becoming the world's leading big data operation service group. In the smart cities sector, the Company is working with various ecosystem partners to develop a Smart City 3.0 model that integrates industry, city and people based on urban characteristics. Starting from the construction of digital government, the Company will promote the formation of a "joint construction, governance and sharing" model driven by big data. This will be driving the digital economy with the digital transformation for industries and the development model that integrates industry, city and the people, winning the fight against poverty and putting the aspiration of digital

China into practice.

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In the field of smart industry chain, IT Logistics, a subsidiary of the Company, is committed to providing customers with end-to-endone-stop supply chain services through the strategic implementation of "Warehouse + Big Data + Artificial Intelligence" to realize supply chain-based industry chain integration. Leveraging IT Logistics' well-established smart industry chain service network in China, strong resource integration capability, good service reputation and overseas development strategy, the three parties will, in this tripartite strategic cooperation, jointly explore cooperation models in combination with the demand from the actual operation of Samsung SDS's related companies in the domestic industrial chain, including domestic and overseas collaborative operations, in order to achieve full potential of the respective advantages of all parties.

In the field of big data, Internetware, a subsidiary of the Company, using "Yan Cloud DaaS", converted from the technological achievement which won the First Prize of the 2018 National Technology Invention Award, solved the world-class data sharing problem and eliminated tens of thousands of government isolated information islands. This is a key technology supporting the development of the trillion-level big data industry and its ecosystem.

Samsung SDS background

Samsung SDS is one of the largest providers of global IT solutions in Korea with annual revenues of more than USD2.3 billion. Samsung SDS is also one of the largest system integrators in Korea, ranking first in the domestic system integration market in Korea and ranked 7th in the global system integration industry. Currently, more than 20,000 employees are located in service points around the world. Samsung SDS mainly provides packaged software, system integration and internet services and solutions. It is Korea's leading IT service provider and e-commerce support provider. It is also the leading e-commerce infrastructure builder and solution provider in Korea.

Digital China Group background

After 20 years of informatization in China, Digital China Group has become an integrated IT service provider with annual turnover exceeding RMB80 billion and total assets exceeding RMB25 billion. Over the years, Digital China Group has relied on an ecosystem of more than 30,000 partners to provide digital products, solutions and professional IT services to enterprises and consumers. In the era of cloud + big data, Digital China Group is adhering to its original aspiration and taking the opportunity to become a leading cloud service and digital solution provider in China.

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, 28 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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Digital China Holdings Ltd. published this content on 28 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2019 08:46:08 UTC