The board of directors of Digital China Holdings Limited announced that the following changes have taken place with effect from 8 June 2018. Mr. Guo Wei has been appointed as the chief executive officer of the company and remains as the chairman of the company. Mr. Lin Yang has been appointed as the vice chairman of the company and ceased to act as chief executive officer of the company.

Due to Mr. Guo now serves as both the chairman and the chief executive officer of the Company, such practice deviates from code provision A.2.1 of the Corporate Governance Code as set forth in Appendix 14 of the Listing Rules. The Board believes that vesting the roles of both the chairman and the chief executive officer in the same person can facilitate the effective execution of the group's business strategies and operation which will be beneficial to the group and the shareholders of the company as a whole. Mr. Lin Yang, aged 51, has been an executive director of the company since 21 February 2001.

Mr. Lin was the chief executive officer of the group from April 2011 to June 2018. He is also a director of certain subsidiaries of the company. Mr. Guo Wei, aged 55, is the chairman and an executive director of the company and is responsible for the strategic development and management of the group.

Mr. Guo had been the vice chairman, the president and the chief executive officer of the company since February 2001 and was appointed as the chairman of the board of the company in December 2007. He is also a director of certain subsidiaries and as associates of the company.