Beijing Digital Telecom : SUPPLEMENTAL ANNOUNCEMENT CONNECTED TRANSACTION DISPOSAL OF 25% OF THE EQUITY INTERESTS IN SHANGHAI SUBSIDIARIES

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北京迪信通商貿股份有限公司

Beijing Digital Telecom Co., Ltd.

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 6188)

SUPPLEMENTAL ANNOUNCEMENT

CONNECTED TRANSACTION

DISPOSAL OF 25% OF THE EQUITY INTERESTS IN

SHANGHAI SUBSIDIARIES

Reference is made to the announcement (the "Announcement") of Beijing Digital Telecom Co., Ltd. (the "Company") dated 15 July 2019 in relation to the disposal of 25% of the equity interests in Shanghai Subsidiaries. Unless the context otherwise requires, the capitalised terms herein shall have the same meanings as those defined in the Announcement.

The Board hereby states that, according to the financial management accounts prepared by the Company in accordance with International Accounting Standards, the book value of the unaudited net assets of Shanghai Chuanda Communication, Shanghai Dixin Electronic and Shanghai Dixin South as at 31 May 2019 amounted to approximately RMB79.73 million, RMB152.56 million and RMB46.10 million, respectively. With reference to the rounded value of 25% of the aforesaid book value of the unaudited net assets of Shanghai Subsidiaries, the considerations of the disposal of 25% of the respective equity interests in Shanghai Subsidiaries were accordingly determined as RMB20 million, RMB38 million and RMB12 million, respectively.

In addition, before the completion of the relevant procedures for change of industrial and commercial registration, the Transferees are expected to respectively sign a letter of commitment to the Company, pursuant to which, upon the Transferee(s)' voluntary resignation or termination of the employment contract(s) by Shanghai Subsidiaries due to misconduct or violation of laws and regulations, the Transferee(s) shall dispose of the equity interests in Shanghai Subsidiaries to the Company at the price equivalent to the actual equity consideration paid by the Transferee(s) as at the date of his/her resignation or the abovementioned termination.

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Having considered the abovementioned reasons, the Directors (including the independent non- executive Directors) are of the view that (i) the Transferees' commitment is beneficial to the stable and sustainable operation of Shanghai Subsidiaries, and the Company's right to acquire the relevant equity interests will further stabilize the shareholding structure of Shanghai Subsidiaries; and (ii) the terms of the Equity Transfer Agreements are on normal commercial terms, fair and reasonable and in the interest of the Company and the Shareholders as a whole.

Save as disclosed above, there were no changes in all other information as set out in the Announcement.

By order of the Board

Beijing Digital Telecom Co., Ltd.

LIU Donghai

Chairman

Beijing, the PRC

30 August 2019

As at the date of this announcement, the executive Directors are Mr. LIU Donghai, Mr. LIU Yajun, Mr. LIU Songshan and Ms. LIU Wencui; the non-executive Directors are Mr. QI Xiangdong and Ms. XIN Xin; and the independent non-executive Directors are Mr. LV Tingjie, Mr. LV Pingbo and Mr. ZHANG Senquan.

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