Digital China : ANNOUNCEMENT IN RELATION TO THE UNAUDITED CONSOLIDATED FINANCIAL RESULTS OF DIGITAL CHINA INFORMATION SERVICE COMPANY LTD. FOR THE FIRST QUARTER ENDED 31 MARCH 2021

About this update from Digital China Holdings Limited

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. ANNOUNCEMENT IN RELATION TO THE UNAUDITED CONSOLIDATED FINANCIAL RESULTS OF DIGITAL CHINA INFORMATION SERVICE COMPANY LTD. * FOR THE FIRST QUARTER ENDED 31 MARCH 2021 This announcement is made by Digital China Holdings Limited (神州數碼控股有限公司 * ) (the " Company ") pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the inside information provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong). The board of directors of the Company (the " Board ") hereby notifies that the unaudited consolidated financial results of 神州數碼信息服務股份有限公司 (Digital China Information Service Company Ltd. * ) (" DCITS ") and its subsidiaries for the first quarter ended 31 March 2021 (the " Results ") has been released on 27 April 2021. DCITS is the Company's 39.90% non-wholly-owned subsidiary, the shares of which are listed on The Shenzhen Stock Exchange. The following is a summary of the Results together with the comparative figures of DCITS and its subsidiaries for the previous corresponding financial period: Digital China Information Service Company Ltd. * Summary of the unaudited consolidated financial results of DCITS For the first quarter ended 31 March 2021 Three months Three months ended ended 31 March 2021 31 March 2020 (unaudited) (unaudited) RMB'000 RMB'000 Revenue 2,042,023 2,123,304 Net profit before taxation 42,672 28,848 Net profit for the period 31,027 23,545 Net profit attributable to DCITS's shareholders 39,110 29,465 1 Please refer to the full text of the Results attached to this announcement for details. Shareholders and investors of the Company are reminded that the information above relates to the financial information of the Company's 39.90% non-wholly-owned subsidiary, DCITS, rather than that of the Company. The financial information in this announcement is based on preliminary financial data of DCITS, has not been audited nor reviewed by its auditors. Shareholders and potential investors of the Company 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 2 Hereinbelow is a reproduction of the announcement made by DCITS pursuant to the relevant listing rules of The Shenzhen Stock Exchange. (Note: Unless otherwise specified, the following currencies are in RMB.) 3 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Digital China Information Service Company Ltd. 2021 First Quarterly Report April 2021 1 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. I. IMPORTANT NOTE The Board of Directors and the Supervisory Committee of the Company, its Directors, supervisors and senior management members warrant that the contents of this quarterly report, for which they assume joint and several legal liabilities, are true, accurate and complete without any false representations, misleading statements or material omissions. All Directors except the following have attended in person the meeting of the Board of Directors for the consideration of this quarterly report: Name of Director not Position of Director not Reasons for not attending Name of appointee attending in person attending in person meeting in person Fei Jianjiang Director Business reasons Han Yuhua Guo Wei, the person-in-charge of the Company, Zhang Yunfei, the person-in-charge of accounting operations and Zhang Xiuhui, the head of the accounting department (head of accounting), warrant that the financial statements in this quarterly report are true, accurate and complete. 2 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. GENERAL INFORMATION OF THE COMPANY Principal accounting figures and financial indicators Whether the Company has made retrospective adjustment to or restatement of the accounting data of prior years □ Yes √ No For the same period of last Increase/ decrease of the reporting period compared with For the reporting period year the same period of last year Operating revenue (RMB) 2,042,023,405.74 2,123,304,206.17 -3.83% Net profit attributable to shareholders of the listed company 39,109,718.48 29,464,993.65 32.73% (RMB) Net profit after extraordinary gain or loss items attributable to 34,949,200.28 23,671,543.79 47.64% shareholders of the listed company (RMB) Net cash flows from operating -657,782,716.88 -602,150,915.20 -9.24% activities (RMB) Basic earnings per share 0.0420 0.0304 38.16% (RMB/share) Diluted earnings per share 0.0417 0.0301 38.54% (RMB/share) Weighted average return on net 0.70% 0.56% 0.14% assets Increase/decrease as at the end As at the end of the reporting As at the end of last year of the reporting period period compared with the end of last year Total assets (RMB) 10,886,062,026.90 12,051,862,835.52 -9.67% Net assets attributable to shareholders of the listed company 5,556,598,812.38 5,585,144,941.02 -0.51% (RMB) Items and amounts of extraordinary gain or loss Applicable □ N/A 3 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Unit: RMB Amount from the beginning Item of the year to end of the Note reporting period Gain/loss from the disposal of non-current assets (including written-off portions for which asset impairment provision has -16,522.12 been made) Government grants included in current period's profit and loss (other than government grants closely related to the business of 4,871,131.04 the enterprise and received in fixed amounts or fixed instalments in accordance with uniform national standards) Gain/loss from the fair-value change in trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, and investment income from the disposal of trading financial assets, derivative financial assets, -765,001.05 trading financial liabilities, derivative financial liabilities and other debt investments, other than effective hedging for value protection relating to the Company's normal operations Non-operating income and expenses other than the above 334,176.99 Less: Effect of income tax -142,958.21 Effect of minority interests (after tax) 406,224.87 Total 4,160,518.20 -- An explanatory statement should be made in respect of extraordinary gain or loss items defined under the "Explanatory Announcement No. 1 for Information Disclosure by Public Issuers of Securities -Extraordinary Gain or Loss Items", as well as the classification of extraordinary gain or loss items defined under the "Explanatory Announcement No. 1 for Information Disclosure by Public Issuers of Securities -Extraordinary Gain or Loss Items" as recurring profit or loss items by the Company Applicable √ N/A For the reporting period, the Company has not classified any extraordinary gain or loss items as defined under or set out in the "Explanatory Announcement No. 1 for Information Disclosure by Public Issuers of Securities -Extraordinary Gain or Loss Items" as recurring profit or loss items. II. Business review and prospect During the reporting period, the net profit attributable to the shareholders of listed Company was approximately RMB39,109,700, increased by 32.73% as compared with the last corresponding period, the net profit after extra-ordinary gain or loss attributable to the shareholders of the listed company was approximately RMB34,949,200, increased by 47.64% as compared with the last corresponding period. The Company's operating performance and its profitability has been continuity improved was mainly due to: 1. The Company's business structure has been optimised, the software development and technical services business achieved the operating income of RMB795 million, a period-over-period increased by 25.89%. 2. The strategic focus has been achieved a remarkable result, the financial technology products and solutions, fintech innovation, fintech usage have been well developed. The 4 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. financial industry business has been achieved the operating income of RMB1.135 billion, a period-over-period increased by 31.92%, of which the financial software business has been achieved the operating income of RMB419 million, a period-over-period increased by 35.57%. During the reporting period, the Company obtained sufficient sales orders in hand. In the first quarter of 2021, the Company has signed the sales contract amounting to RMB6.089 billion which yet to be recognised, a period-over-period increased by 63.05%, of which the fintech business has signed the sales contract amounting to RMB2.352 billion which yet to be recognised, a period-over-period increased by 76.69%. In the field of fintech innovation, the Company's distributed core business system has been recently shortlisted in the "2020 Information Technology Application Innovative Solution Typical Cases" of the Ministry of Industry and Information Technology. It won the bid and signed the contract with five share based, city commercial or rural commercial banks including Silicon Valley Bank. The fintech innovation infrastructure construction and services have won the bid and signed several contracts with state-owned enterprises and insurance institutions. In the field of fintech usage, the contract amount over RMB 100 million on agricultural bank connected project has been signed, a period-over-period increased by 8 times, of which amounted to RMB28.08 million on agricultural bank connected project has been signed with state-owned enterprise. The bank and tax interactive platform has made a connection with head and branch office of Guangfa Bank, Chongqing Fumin Bank etc. The digital renminbi-related services serves more than 10 financial institutions and promote the implementation of digital wallet functions. Total number of shareholders and particulars of shareholdings of the top 10 shareholders at the end of the reporting period 1. Total number of ordinary shareholders and preferential shareholders with reinstated voting rights and particulars of shareholdings of the top 10 shareholders Unit: Share Total number of ordinary 80,941 Total number of preferential 0 shareholders as at the end of the shareholders with reinstated voting reporting period rights as at the end of the reporting period Particulars of shareholding of the top 10 shareholders Name of shareholder Nature of Percentage of Number of Number of shares Pledged or frozen shareholder shareholding shares held held subject to Status of Number trading shares moratorium Digital China Non-state-owned Software Limited ( 神 domestic legal 39.90% 389,540,110 0 Pledged 133,760,000 州數碼軟件有限公 person 司 ) ("DCSL") China-Singapore State-owned legal Suzhou Industrial person Park Ventures Co., 6.62% 64,675,937 0 Ltd. ( 中新蘇州工業 園區創業投資有限公 司 ) ("CSSIP") 5 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Kunshan Shenchang State-owned legal Technology Co., Ltd. person ( 昆山市申昌科技有 5.09% 49,708,280 0 Frozen 6,632,000 限公司 ) ("Shenchang Technology") Infinity I-China Foreign legal Investments(Israel),L. person 1.34% 13,130,434 0 Pledged 13,130,434 P. ("Infinity I-China") Dedicated securities Non-state-owned repurchase account of domestic legal 1.32% 12,864,476 0 DCITS person Cheng Yanyun ( 程艷 Domestic natural 0.87% 8,465,822 0 雲 ) person Wu Donghua ( 吳冬 Domestic natural 0.78% 7,635,638 5,726,728 華 ) person Wang Yufei ( 王宇飛 ) Domestic natural 0.70% 6,868,500 150,000 Pledged 2,420,000 person Hong Kong Securities Foreign legal Clearing Company person 0.58% 5,622,178 0 Limited He Shenglong ( 賀勝 Domestic natural 0.36% 3,556,000 0 龍 ) person Particulars of shareholdings of the top 10 shareholders not subject to trading moratorium Name of shareholder Number of shares held not subject to Class of shares trading moratorium Class of shares Number DCSL 389,540,110 RMB ordinary shares 389,540,110 CSSIP 64,675,937 RMB ordinary shares 64,675,937 Shenchang Technology 49,708,280 RMB ordinary shares 49,708,280 Infinity I-China 13,130,434 RMB ordinary shares 13,130,434 Investments(Israel),L.P. Dedicated securities repurchase 12,864,476 RMB ordinary shares 12,864,476 account of DCITS Cheng Yanyun ( 程艷雲 ) 8,465,822 RMB ordinary shares 8,465,822 Wang Yufei ( 王宇飛 ) 6,718,500 RMB ordinary shares 6,718,500 Hong Kong Securities Clearing 5,622,178 RMB ordinary shares 5,622,178 Company Limited He Shenglong ( 賀勝龍 ) 3,556,000 RMB ordinary shares 3,556,000 Ye Guolin ( 葉國林 ) 2,590,000 RMB ordinary shares 2,590,000 6 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Description of connected Beside dedicated securities repurchase account, DCSL has no connected relationship with relationships or concerted party the rest of the top ten shareholders. Wu Donghua and Cheng Yanyun are in a spousal relationships among the aforesaid relationship. shareholders Description of participation in Cheng Yanyun held 5,244,422 shares and 3,221,400 shares of the Company through margin trading by any of the top 10 ordinary securities account and credit securities account respectively. Ye Guolin held shareholders 2,590,000 shares of the Company through credit securities account. Whether any of the top 10 ordinary shareholders and top 10 ordinary shareholders not subject to trading moratorium of the Company conducted any transactions on agreed repurchases during the reporting period Yes √ No None of the top 10 ordinary shareholders and top 10 ordinary shareholders not subject to trading moratorium of the Company has conducted any transactions on agreed repurchases during the reporting period. 2. Total number of preferential shareholders and particulars of shareholding of the top 10 preferential shareholders Applicable √ N/A 7 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. SIGNIFICANT EVENTS Changes in major accounting items and financial indicators during the reporting period and reasons therefor Applicable □ N/A (I) Reasons for change in the balance sheet items: Item Closing balance (RMB) Opening balance (RMB) Percentage of Note change Cash and bank balances 921,886,496.43 1,941,313,168.04 -52.51% 1 Bills receivable 16,537,229.84 4,759,879.29 247.43% 2 Prepayments 230,862,438.01 101,767,749.65 126.85% 3 Other current assets 43,527,620.24 4,785,136.52 809.64% 4 Short-term borrowings 421,356,015.58 722,279,881.25 -41.66% 5 Bills payables 284,578,351.29 552,013,491.84 -48.45% 6 Taxes payable 114,325,133.52 188,127,416.31 -39.23% 7 Deferred income 26,963,521.61 20,061,059.53 34.41% 8 Treasury stock 221,028,596.53 160,204,801.44 37.97% 9 The closing balance of cash and bank balances decreased by 52.51% as compared to the opening balance, which was mainly attributable to the payment of purchase and repayment of bank loans during the period; The closing balance of bills receivable increased by 247.43% as compared to the opening balance, which was mainly attributable to the received bills receivable not yet matured during the period; The closing balance of prepayments increased by 126.85% as compared to the opening balance, which was mainly attributable to the prepayment of procurement payments during the period; The closing balance of other current assets increased by 809.64% as compared to the opening balance, which was mainly attributable to the increase in the input VAT subject to deduction during the period; The closing balance of short-term borrowings decreased by 41.66% as compared to the opening balance, which was mainly attributable to the repayment of bank borrowings during the period; The closing balance of bills payable decreased by 48.45% as compared to the opening balance, which was mainly attributable to the current bills are due for redemption during the period; The closing balance of taxes payable decreased by 39.23% as compared to the opening balance, which was mainly attributable to the payment of taxes during the period; The closing balance of deferred income increased by 34.41% as compared to the opening balance, which was mainly attributable to government subsidy received during the period; The closing balance of treasury stock increased by 37.97% as compared to the opening balance, which was mainly attributable to the repurchase of Company stock during the period. 8 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. (II) Reasons for changes in income statement items: Item For the reporting period For the same period of last Percentage of Note (RMB) year (RMB) change Taxes and surcharge 7,345,486.73 4,785,052.04 53.51% 10 Investment income 9,764,185.87 -5,420,667.86 280.13% 11 Gains on changes in fair value -871,774.08 1,360,502.98 -164.08% 12 Credit impairment loss -68,422,181.98 -19,613,530.18 248.85% 13 Asset impairment loss -31,884,989.73 -52,920,392.16 -39.75% 14 Non-operating income 528,568.65 271,901.52 94.40% 15 Non-operating expenses 210,913.78 419,580.33 -49.73% 16 Income tax expenses 11,644,393.11 5,303,821.95 119.55% 17 Taxes and surcharge increased by 53.51% as compared to the same period of last year, which was mainly attributable to the increase in input VAT retain from the same period of last year; Investment income increased by 280.13% as compared to the same period of last year, which was mainly attributable to the increase in recognition of investment income from associate and wealth management products during the period; Gains on changes in fair value decreased by 164.08% as compared to the same period of last year, which was mainly attributable to the decrease in accruals of unexpired bank wealth management income during the period; Credit impairment loss increased by 248.85% as compared to the same period of last year, which was mainly attributable to the increase in provision bad debt during the period; Asset impairment loss decreased by 39.75% as compared to the same period of last year, which was mainly attributable to the more provision of inventories for the same period of last year; Non-operating income increased by 94.40% as compared to the same period of last year, which was mainly attributable to the compensation received during the period; Non-operating expenses decreased by 49.73% as compared to the same period of last year, which was mainly attributable to the supplemental payment of income tax after audit of same period of last year; Income tax expenses increased by 119.55% as compared to the same period of last year, which was mainly attributable to the increase in income tax provision of current period during the period; (III) Reasons for change in cash flow statement items: Item For the reporting period For the same Percentage Note (RMB) period of last year of change (RMB) Net cash flows from investing activities 137,105,228.19 220,135,915.61 -37.72% 18 18. Net cash flows from investing activities decreased by 37.72% as compared to the same period of last year, which was mainly attributable to the bonds purchase during the period; 9 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. II. Progress of significant events and analysis of their impacts and solutions Applicable □ N/A The ninth meeting of the eighth session of the board of directors and resolutions at the 2020 annual general meeting of shareholders On 29 March 2021,the Company held the ninth meeting of the eighth session of the board of directors to discussed and passed "The resolution on the 2020 profit distribution plan", "The resolution on reappointment of auditor 2021", "The resolution on estimation on routine quota of related party transaction 2021", "The resolution on changing the use of remaining proceeds permanently to supplement of working capital", "The resolution on change in the Company registered capital and amend the article of association", "The resolution on formulating the three years (2021-2023) plan on shareholder return" etc. The above resolutions have been passed at the Company annual general meeting of shareholder on 23 March 2021. (II) Other significant events: Index of the Company announcement during the reporting period as below: Brief description of significant event Date of disclosure Search index for website on which temporary report are published The legal opinions of the third extra-ordinary general meeting of 4 January 2021 http://www.cninfo.com.cn shareholders 2020 The announcement on the resolutions of third extra-ordinary 4 January 2021 http://www.cninfo.com.cn general meeting of shareholders 2020 The announcement on the progress of shares repurchase 4 January 2021 http://www.cninfo.com.cn The announcement on government subsidy received 6 January 2021 http://www.cninfo.com.cn The announcement on the high-tech enterprise certificate of the 7 January 2021 http://www.cninfo.com.cn subsidiary of the Company The announcement on the high-tech enterprise certificate of the 9 January 2021 http://www.cninfo.com.cn subsidiary of the Company The announcement on the progress of guarantee provision to the 13 January 2021 http://www.cninfo.com.cn Company subsidiary The announcement on the repurchase proportion reaching 1% 14 January 2021 http://www.cninfo.com.cn and the progress of share repurchase and The announcement on the high-tech enterprise certificate of the 16 January 2021 http://www.cninfo.com.cn subsidiary of the Company The reminder announcement on matters estimation of routine 27 January 2021 http://www.cninfo.com.cn related party transactions 2021 The announcement on completion of shares repurchase and 28 January 2021 http://www.cninfo.com.cn shares movement The announcement on supplementary pledge of partial shares of 10 February 2021 http://www.cninfo.com.cn the Company's controlling shareholder The announcement on the progress of more than half of the time 6 March 2021 http://www.cninfo.com.cn of some senior management shares reduction plan 10 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. The announcement on holding of result briefing meeting of 2020 27 March 2021 http://www.cninfo.com.cn and question soliciting The summary of annual report 2020 31 March 2021 http://www.cninfo.com.cn The audited report 2020 (already cancelled) 31 March 2021 http://www.cninfo.com.cn The notice of annual general meeting of shareholders 31 March 2021 http://www.cninfo.com.cn The announcement on resolutions of the board of supervisors 31 March 2021 http://www.cninfo.com.cn The specific report on capital occupation from related parties 31 March 2021 http://www.cninfo.com.cn The social responsibility report 31 March 2021 http://www.cninfo.com.cn The self-assessment on internal control report 31 March 2021 http://www.cninfo.com.cn The internal control assurance report 31 March 2021 http://www.cninfo.com.cn The annual specific explanation on utilisation of proceeds 31 March 2021 http://www.cninfo.com.cn The verification report on annual utilisation of proceeds 31 March 2021 http://www.cninfo.com.cn The annual report of independent directors 31 March 2021 http://www.cninfo.com.cn The independent opinion of independent directors on guarantees 31 March 2021 http://www.cninfo.com.cn and other matters The work report 2020 on board of supervisory 31 March 2021 http://www.cninfo.com.cn The specific verification report 2020 on deposits and utilisation 31 March 2021 http://www.cninfo.com.cn of proceeds The announcement on estimation of routine related party 31 March 2021 http://www.cninfo.com.cn transaction 2021 The verification opinion on the change the use of remaining 31 March 2021 http://www.cninfo.com.cn proceeds permanently to supplement working capital The article of association 31 March 2021 http://www.cninfo.com.cn The announcement on profit distribution plan 2020 31 March 2021 http://www.cninfo.com.cn The announcement on change in the Company's accounting 31 March 2021 http://www.cninfo.com.cn policies The announcement on the change the use of remaining proceeds 31 March 2021 http://www.cninfo.com.cn permanently to supplement working capital The announcement on provision on asset impairment 31 March 2021 http://www.cninfo.com.cn The announcement on reappointment of auditor 2021 31 March 2021 http://www.cninfo.com.cn The three year (2021-2023) plan on shareholder returns 31 March 2021 http://www.cninfo.com.cn The amendment on article of association 31 March 2021 http://www.cninfo.com.cn Annual report 2020 31 March 2021 http://www.cninfo.com.cn The announcement on board of directors 31 March 2021 http://www.cninfo.com.cn The audited report 2020 31 March 2021 http://www.cninfo.com.cn The supplement announcement on the audited report 2020 31 March 2021 http://www.cninfo.com.cn 11 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Progress of implementation of share repurchase Applicable □ N/A The seventh meeting of the eighth session of the Company's board of directors meeting passed a resolution on "Resolution on the repurchase of the Company's shares by way of centralised bidding transaction" and agreed to repurchase the Company's share with its own funds or self-raised capital. The total amount of funds to be utilised shall be not less than RMB100 million (inclusive) and not more than RMB200 million (inclusive). The price of repurchase shares shall not exceed RMB25.5 per share (inclusive) and the number of repurchased shares is subject to the actual number of shares repurchased at the expiration of the repurchase period. The implementation period of this shares repurchase is no more than 12 months period from the date of the Company's board of directors passing the shares repurchase resolutions. For details, please refer to the announcement dated on 27 August 2020 "The announcement on the shares repurchase plan by way of centralised bidding transaction" disclosed in "Securities Times" and www.cninfo.com . On 28 January 2021, the Company disclosed "Announcement on the completion of shares repurchase and shares movement" (Announcement number 2021-009). As at 26 January 2021, the Company accumulatively repurchased 12,864,476 shares by way of a centralized bidding transactions through a specific securities account, the highest transaction purchase price was RMB16.70 per shares while the lowest transaction purchase price was RMB14.70 per shares. The total amount was RMB200,030,533.97 (exclude transaction fee such as commission and transfer fee etc). Such share repurchased plan has been completed. Progress of implementation of sell-down of repurchased shares by way of centralised bidding Applicable √ N/A Undertakings of relevant parties including the Company and its de facto controller, shareholders, connected parties and acquirers of which performances had yet to be completed as at the end of the reporting period Applicable √ N/A The Company had no undertakings of relevant parties, including the Company and its de facto controller, shareholders, connected parties and acquirers, of which performances had yet to be completed as at the end of the reporting period. 12 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. IV. Financial assets investment 1. Investment in securities Applicable □ N/A Fair value Cumulative Securities Securities Initial cost of Accounting Beginning change changes in Purchase Dispose Profit and Closing book Source of Securities measurement during the fair value amount for the amount for loss during Accounts code abbreviation investment book value value fund model current included in period the period the period period equity 19 zhonggxi Fair value Transactional Bonds 155228 200,000,000.00 200,000,000.00 496,005.91 200,000,000.00 financial Self fund ( 中希 ) 01 measurement assets Total 200,000,000.00 -- 0.00 0.00 0.00 200,000,000.00 0.00 496,005.91 200,000,000.00 -- -- Disclose date of announcement on approval of securities investment of board of directors Disclose date of announcement on approval of securities investment of shareholders meeting 13 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. 2. Derivative Investments Applicable √ N/A During the reporting period, the Company had no derivative investment. V. Progress of projects financed by proceeds √Applicable □ N/A Approved by the China Securities Regulatory Commission [2013] No. 1578 of documents "In connection with the approval of Shenzhen Taiquang Telecom Co., Ltd merge with Digital China Information Services Co., Ltd to raise a supporting funds" ( 《關於核 准深圳市太光電信股份有限公司吸收合併神州數碼信息服務股份有限公司並募集配套資金的批复》 ), the Company implemented a significant asset reorganisation project and raised supporting fund of RMB200 million for paying the transaction cost for merger and acquisition. The above-mentioned proceeds were received on 18 December 2013 and deposited into the Company's special account in the account number of 37150188000033711 in the China Everbright Bank Kunshan High-tech Industrial Park Branch ( 中國光大銀行昆山高新技術產業園區支行 ) ("Everbright Bank"), SHINEWING Certified Public Accountants (General Partnership) ( 信永中和會計師事務所 ( 特殊普通合夥 )) issued "the Capital Verification Report" ( 驗資報告 ) with the number of XYZH/2012A1055-8. For the year ended 31 December 2020, the accumulated amount of RMB174,975,238.86 has been utilised from the proceeds which resulted in the remaining amount of RMB25,024,761.14. Together with its interest RMB2,357,007.15, the balance deposited in the proceeds account in aggregate amount of RMB27,381,768.29. On 29 March 2021, the Company held the ninth meeting of the eighth board of directors and the ninth meeting of the eighth board of supervisors. "The resolution on changing the use of the remaining proceeds permanently to supplement of working capital" has been discussed and passed in the meeting and the remaining proceeds from the Company's asset reorganisation project in 2013 amounted to RMB27,381,768.29 (including the interest and the settlement amount shall be prevailed by the actual amount on the day when it is transferred to its own account) for the purpose of permanently supplement of working capital has been agreed. The above-mentioned matters was discussed and passed in the Company's annual general meeting 2020 held on 23 April 2020. VI. Estimates on operating results for the period from January to June 2021 Warnings and explanations on estimated loss or significant change (as compared to the same period of the previous year) in net accumulated profit for the period from the beginning of the year to the end of the next reporting period Applicable √ N/A VII. Material contracts in daily operations √ Applicable □ N/A Amount of revenue Name of the Name of the Total amount of Progress of recognised for the Recovery of contracted contracted Contract subject contract current period and accounts the contract company counterparty performance on an accumulative receivables basis 14 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. The RMB3,899,100 was IT Terminal Desktop estimated Guangdong recognised during Service Outsourcing and total Accumulative Midea Air the period, Service Items Framework amount of repayment amount Conditioning ongoing RMB44,696,500 Contract with Guangdong contract was Equipment Co., was recognised on Digital China Midea Air Conditioning framework RMB47,327,800 Ltd. an accumulative Advanced Equipment Co., Ltd. was basis Systems Service 44,096,200 Limited ( 神州數 No revenue was 碼系統集成服務 Work of Procurement for recognized during 有限公司 ) the IT Operation and Accumulative Huawei the period, Maintenance Business for repayment amount Technologies N/A ongoing RMB24,070,300 Network and Computer was Co., Ltd was recognized on Room Outsourcing Contract RMB24,541,400 an accumulative (SOW) basis Digital China "2019 Golden Tax Phase III Not yet acceptance. Information Management Decision Accumulative No revenue and no System Company State Taxation System Upgrade and repayment amount 52,390,800 ongoing revenue on an Limited ( 神州數 Administration Improvement and Operation was accumulative basis 碼信息系統有限 and Maintenance Project RMB15,717,200 were recognised 公司 ) (Pack 1) Contract" Digital China Vision (Xi'an) No revenue was Technology Construction of Yantai recognised during Accumulative Development Big Data Bureau Apple Big Data Center 10,448,800 ongoing the period, repayment amount Company Limited of Yantai Project of Big Data Bureau RMB8,250,800 was was ( 神州遠景（西安） of Yantai recognised on an RMB8,359,000 科技發展有限公 accumulative basis 司 ) Procurement Project of No revenue was recognised during Shaanxi Rural Management Platform for Accumulated the period, Credit Direct Connecting between repayment of this Beijing 33,840,000 ongoing RMB21,238,900 Cooperatives Banks and Agriculture of project was Zhongnong Xinda was recognised on Union Shaanxi Rural Credit RMB31,240,000 Information an accumulative Cooperatives Union Technology basis Limited ( 北京中 Not yet acceptance. 農信達信息技術 Jiangsu Internet Jiangsu Province Rural and Accumulated No revenue and no 有限公司 ) Agriculture Government Information repayment of this 13,965,000 ongoing revenue on an Development Business Integration and project was accumulative basis Center Optimization Project RMB5,167,100 were recognised 15 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Significant difference between the progress of material contract and the contract agreement which affects more than 30% of the contract amount Applicable √ N/A VIII. Entrusted wealth management fund √ Applicable □ N/A Unit: RMB ten thousand Specific type of Source of funds under Amount of entrusted fund Outstanding balance Amount overdue and entrustment entrusted management management incurred under yet to be recouped Bank wealth Internal funds 143,610 7,130 0 management product Brokerage wealth Internal funds 33,000 10,000 0 managmenet product Other categories Internal funds 25,000 25,000 0 Total 201,610 42,130 0 Details of high-risk entrusted wealth management fund with material amounts individually or a lower level of security or liquidity without guaranteed repayment of principal □ Applicable √ N/A Expected inability to recoup the principal amount or other situations that might result in impairment of entrusted wealth management fund □ Applicable √ N/A IX. Guarantees for third parties in violation of regulations Applicable √ N/A There was no provision of guarantees to third parties by the Company in violation of regulations during the reporting period. X. Appropriation of non-operating funds of the listed company by the controlling shareholder and its connected parties Applicable √ N/A There was no funds of the listed company being occupied in non-operating manner by the Company's controlling shareholder and its connected parties during the reporting period. 16 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. XI. Registration record of reception of analysts, communications and press interviews during the reporting period Applicable □ N/A Date Place Mode Type of audience Audience received Main topics of discussion and Index for general research information received information provided http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000555& Digital Technology Institutional stockCode=000555&announcementId=1209636575&announcementTime=2021-04 31 March 2021 Plaza, No.9 Shangdi Other Institution investors, media and 2020 annual performance brief -02%2011:40 9 th Street, Haidian individual investors, meeting materials http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000555& District, Beijing etc. stockCode=000555&announcementId=1209636576&announcementTime=2021-04 -02%2011:40 17 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. IV. FINANCIAL STATEMENTS I. Financial Statements 1. Consolidated balance sheet Prepared by: Digital China Information Service Company Ltd. 31 March 2021 Unit: RMB Item 31 March 2021 31 December 2020 Current assets: Cash and bank balances 921,886,496.43 1,941,313,168.04 Settlement provision Borrowing funds Trading financial assets 610,235,888.40 750,007,662.48 Derivative financial assets Bills receivable 16,537,229.84 4,759,879.29 Trade receivables 2,009,699,081.23 1,946,829,284.49 Receivables financing Prepayments 230,862,438.01 101,767,749.65 Premium receivable Receivables from reinsurers Reinsurance contract reserves receivable Other receivables 145,236,174.78 146,475,000.58 Including: Interest receivable Dividend receivable Purchase of repo financial assets Inventories 2,486,260,131.60 2,784,103,976.38 Contract assets 1,625,614,484.79 1,640,000,224.71 Assets classified as held-for-sale Non-current assets due within one year Other current assets 43,527,620.24 4,785,136.52 Total current assets 8,089,859,545.32 9,320,042,082.14 18 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Non-current assets: Disbursement of loans and advances Debt investments Other debt investments Long-term receivables 110,304,194.00 110,304,194.00 Long-term equity investments 164,594,521.63 163,000,470.68 Other investments in equity 133,481,611.92 154,829,413.56 instruments Other non-current financial assets Investment properties 13,537,314.32 13,630,176.99 Fixed assets 441,535,858.14 453,057,913.67 Construction in progress 1,933,639.16 Productive biological assets Oil & gas assets Right of use assets 91,652,023.10 Intangible assets 124,839,514.51 131,559,390.41 Development expenses 41,384,176.07 38,441,116.25 Goodwill 1,505,197,394.63 1,505,197,394.63 Long-term prepaid expenses 7,468,055.38 9,122,916.12 Deferred tax assets 160,274,178.72 152,677,767.07 Other non-current assets Total non-current assets 2,796,202,481.58 2,731,820,753.38 Total assets 10,886,062,026.90 12,051,862,835.52 Current liabilities: Short-term borrowings 421,356,015.58 722,279,881.25 Borrowings from central bank Borrowed funds Trading financial liabilities Derivative financial liabilities Bills payables 284,578,351.29 552,013,491.84 Trade payables 2,000,967,332.30 2,373,036,760.20 Receipt in advance Contract liabilities 1,677,121,192.67 1,756,268,042.19 Funds from selling and 19 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. repurchasing financial assets Customer bank deposits and amounts due to banks and other financial institutions Customer brokerage deposits Funds from securities underwriters Staff remuneration payable 420,424,673.48 495,368,850.46 Taxes payable 114,325,133.52 188,127,416.31 Other payables 166,952,360.41 222,115,124.98 Including: Interest payable Dividend payable Fees and commission payable Reinsurance accounts payable Liabilities classified as held-for-sale Non-current liabilities due within one year Other current liabilities Total current liabilities 5,085,725,059.25 6,309,209,567.23 Non-current liabilities: Reserves for insurance contracts Long-term borrowings Bonds payables Including: preferential shares perpetual notes Lease liabilities 91,432,199.09 Long-term payables Long-term staff remuneration payable Estimated liabilities Deferred income 26,963,521.61 20,061,059.53 Deferred tax liabilities 32,160,634.59 36,724,613.52 Other non-current liabilities Total non-current liabilities 150,556,355.29 56,785,673.05 Total liabilities 5,236,281,414.54 6,365,995,240.28 20 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Owners' equity: Share capital 976,310,327.00 975,768,827.00 Other equity instruments Including: preferential shares perpetual notes Capital reserve 2,414,517,595.40 2,406,151,454.21 Less: Treasury stock 221,028,596.53 160,204,801.44 Other comprehensive income 83,253,359.02 98,993,052.24 Special reserve Surplus reserve 34,958,025.22 34,958,025.22 General risk provisions Retained profits 2,268,588,102.27 2,229,478,383.79 Total owners' equity attributable to 5,556,598,812.38 5,585,144,941.02 parent company Minority shareholder's interest 93,181,799.98 100,722,654.22 Total owners' equity 5,649,780,612.36 5,685,867,595.24 Total liabilities and owners' equity 10,886,062,026.90 12,051,862,835.52 Legal representative: Guo Wei Person-in-charge of accounting Head of accounting department: operations: Zhang Yunfei Zhang Xiuhui 2. Balance sheet of the parent company Unit: RMB Item 31 March 2021 31 December 2020 Current assets: Cash and bank balances 168,686,688.57 60,656,839.66 Trading financial assets 237,921,504.84 251,195,662.48 Derivative financial assets Bills receivable Trade receivables 50,701,724.10 67,707,014.64 Receivables financing Prepayments 484,606.98 169,280.31 Other receivables 27,225,876.31 119,492,209.92 Including: Interest receivable Dividend receivable 17,450,338.26 17,450,338.26 21 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Inventories 58,656,344.60 314,866,835.38 Contract assets Assets classified as held-for-sale Non-current assets due within one year Other current assets 6,133,367.23 2,417,532.14 Total current assets 549,810,112.63 816,505,374.53 Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investments 2,790,376,164.61 2,788,806,117.37 Other investments in equity 30,189,476.00 33,902,624.00 instruments Other non-current financial assets Investment properties Fixed assets 102,578.48 105,668.24 Construction in progress Productive biological assets Oil & gas assets Right of use assets 175,066.30 Intangible assets 3,223.00 12,601.00 Development expenses Goodwill Long-term prepaid expenses 73,940.44 98,587.25 Deferred tax assets 19,371,792.96 16,082,174.29 Other non-current assets Total non-current assets 2,840,292,241.79 2,839,007,772.15 Total assets 3,390,102,354.42 3,655,513,146.68 Current liabilities: Short-term borrowings Trading financial liabilities Derivative financial liabilities Bills payables 29,532,881.97 Trade payables 151,722,241.32 363,473,041.78 22 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Receipt in advance Contract liabilities 84,223,232.18 61,786,437.12 Staff remuneration payable 9,326,176.22 17,369,340.87 Taxes payable 13,955,391.01 12,519,926.27 Other payables 41,111,739.06 29,357,609.93 Including: Interest payable Dividend payable Liabilities classified as held-for-sale Non-current liabilities due within one year Other current liabilities Total current liabilities 300,338,779.79 514,039,237.94 Non-current liabilities: Long-term borrowings Bonds payables Including: preferential shares perpetual notes Lease liabilities 176,105.23 Long-term payables Long-term staff remuneration payable Estimated liabilities Deferred income Deferred tax liabilities Other non-current liabilities Total non-current liabilities 176,105.23 Total liabilities 300,514,885.02 514,039,237.94 Owners' equity: Share capital 976,310,327.00 975,768,827.00 Other equity instruments Including: preferential shares perpetual notes Capital reserve 2,251,685,149.72 2,243,077,639.50 Less: Treasury stock 221,028,596.53 160,204,801.44 23 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Other comprehensive income -23,892,938.44 -21,108,077.44 Special reserve Surplus reserve 34,958,025.22 34,958,025.22 Retained profits 71,555,502.43 68,982,295.90 Total owners' equity 3,089,587,469.40 3,141,473,908.74 Total liabilities and owners' equity 3,390,102,354.42 3,655,513,146.68 3. Consolidated income statement Unit: RMB Item Amount for the current period Amount for the previous period 1. Total operating revenue 2,042,023,405.74 2,123,304,206.17 Including: Operating revenue 2,042,023,405.74 2,123,304,206.17 Interest income Earned premium Fees and commission income 2. Total operating cost 1,920,235,925.57 2,029,887,319.77 Including: Operating cost 1,644,058,804.07 1,790,336,952.65 Interest expenses Fees and commission expenses Surrenders Net amount of compensation payout Net amount of insurance liabilities contract reserves Policyholder dividends expenses Reinsurance expenses Taxes and surcharges 7,345,486.73 4,785,052.04 Selling expenses 85,222,433.78 74,586,262.92 Administrative expenses 46,142,627.37 37,075,841.80 Research and development expenses 128,723,799.12 112,952,927.36 Finance costs 8,742,774.50 10,150,283.00 Including: Interest expenses 6,599,220.31 9,851,619.35 Interest income 1,088,058.58 1,933,192.60 Add: Other income 11,981,513.20 12,173,268.66 Investment income (loss indicated by "-") 9,764,185.87 -5,420,667.86 24 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Including: Investment income from associates 1,594,050.95 -8,287,068.64 and joint ventures Gains on derecognition of financial assets measured at amortized cost Exchange gains (loss indicated by "-") Gains on net exposure hedging (loss indicated by "-") Gains from change in fair value (loss -871,774.08 1,360,502.98 indicated by "-") Credit impairment loss (loss indicated by "-") -68,422,181.98 -19,613,530.18 Asset impairment loss (loss indicated by "-") -31,884,989.73 -52,920,392.16 Gains from the disposal of assets (loss indicated by "-") 3. Operating profit (loss indicated by "-") 42,354,233.45 28,996,067.84 Add: Non-operating income 528,568.65 271,901.52 Less: Non-operating expenses 210,913.78 419,580.33 4. Total profit (total loss indicated by "-") 42,671,888.32 28,848,389.03 Less: Income tax expenses 11,644,393.11 5,303,821.95 5. Net profit (net loss indicated by "-") 31,027,495.21 23,544,567.08 (I) Analysed by continuity 1. Net profit from continuing operations (loss 31,027,495.21 23,544,567.08 indicated by "-") 2. Net profit from discontinued operations (loss indicated by "-") (II) Analysed by ownership 1. Net profit attributable to owners of the parent 39,109,718.48 29,464,993.65 company 2. Minority interests -8,082,223.27 -5,920,426.57 6. Net amount of other comprehensive income after -15,739,693.22 -3,971,320.82 taxation Net amount of other comprehensive income after taxation attributable to owners of the parent -15,739,693.22 -3,971,320.82 company (I) Other comprehensive income which cannot be -16,010,851.23 -3,838,109.00 reclassified as profit or loss 1. Changes in the re-measurement of defined benefit plans 25 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. 2. Other comprehensive income under equity method which cannot be recorded in profit and loss 3. Change in fair value of other -16,010,851.23 -3,838,109.00 investments in equity instruments 4. Change in fair value of inherent credit risks 5. Others (II) Other comprehensive income which will be 271,158.01 -133,211.82 reclassified as profit or loss 1. Other comprehensive income under equity method which will be recorded in profit and loss 2. Change in fair value of other debt investments 3. Reclassification of financial assets included in other comprehensive income 4. Credit loss for other debt investments 5. Cash flow hedging reserve 6. Exchange differences arising from 271,158.01 -133,211.82 foreign currency translation 7. Others Net amount of other comprehensive income after taxation attributable to minority shareholders 7. Total comprehensive income 15,287,801.99 19,573,246.26 Total comprehensive income attributable to owners 23,370,025.26 25,493,672.83 of the parent company Total comprehensive income attributable to -8,082,223.27 -5,920,426.57 minority shareholders 8. Earnings per share: (I) Basic earnings per share 0.0420 0.0304 (II) Diluted earnings per share 0.0417 0.0301 If enterprises under common control are merged in current period, the net profit of merged party before merging is RMB0.00, and the net profit of the merged party of previous period is RMB0.00. Legal representative: Guo Wei Person-in-charge of accounting Head of accounting department: operations: Zhang Yunfei Zhang Xiuhui 26 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. 4. Income statement of the parent company Unit: RMB Item Amount for the reporting period Amount for the previous period 1. Total operating revenue 357,493,139.53 100,800,231.40 Less: Operating cost 317,303,497.54 66,762,302.89 Taxes and surcharges 482,895.48 420,015.26 Selling expenses 10,001,044.39 94,656.34 Administrative expenses 374,712.80 5,294,810.05 Research and development expenses 164,874.27 13,760.99 Finance costs -48,899.47 -73,465.76 Including: Interest expenses -66.33 Interest income 57,660.29 79,524.92 Add: Other income 25,445.28 Investment income (loss indicated by -104,736.86 -299,452.69 "-") Including: Investment income from associates and joint -747,142.15 -72,574.38 ventures Gains on derecognition of financial assets measured at amortized cost Gains on net exposure hedging (loss indicated by "-") Gains from change in fair value (loss -1,274,157.64 -1,298,398.69 indicated by "-") Credit impairment loss (loss indicated by 62,348.08 -532,542.01 "-") Asset impairment loss (loss indicated by -15,079,283.49 -4,420,229.08 "-") Gains from the disposal of assets (loss indicated by "-") 2. Operating profit (loss indicated by "-") 12,844,629.89 21,737,529.16 Add: Non-operating income 382.83 0.33 Less: Non-operating expenses 797.12 373.77 3. Total profit (total loss indicated by "-") 12,844,215.60 21,737,155.72 Less: Income tax expenses 10,271,009.07 4. Net profit (net loss indicated by "-") 2,573,206.53 21,737,155.72 27 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. (1) Net profit from continuing operations 2,573,206.53 21,737,155.72 (net loss indicated by "-") (2) Net profit from discontinued operations (net loss indicated by "-") 5. Net amount of other comprehensive income -2,784,861.00 -3,838,109.00 after taxation (I) Other comprehensive income which -2,784,861.00 -3,838,109.00 cannot be reclassified as profit or loss 1. Changes in the re-measurement of defined benefit plans 2. Other comprehensive income under equity method which cannot be recorded in profit and loss 3. Change in fair value of other -2,784,861.00 -3,838,109.00 investments in equity instruments 4. Change in fair value of inherent credit risks 5. Others (II) Other comprehensive income which will be reclassified as profit or loss 1. Other comprehensive income under equity method which will be recorded in profit and loss 2. Change in fair value of other debt investments 3. Reclassification of financial assets included in other comprehensive income 4. Credit loss for other debt investments 5. Cash flow hedging reserve 6. Differences arising from foreign currency translation 7. Others 6. Total comprehensive income -211,654.47 17,899,046.72 7. Earnings per share: (I) Basic earnings per share (II) Diluted earnings per share 28 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. 5. Consolidated cash flow statement Unit: RMB Item Amount for the reporting period Amount for the previous period 1. Cash flow from operating activities: Cash received from sales of goods 1,980,005,231.88 1,377,943,966.46 and rendering of services Net increase in customer bank deposits and amounts due to other financial institutions Net increase in borrowings from central bank Net increase in placements from other financial institutions Cash received in premiums under original insurance contracts Net cash received from reinsurance business Net increase of policyholder deposits and investment funds Cash received from interests, fees and commissions Net increase in borrowed funds Net increase in repurchase business capital Net cash received for customer brokerage deposits Tax rebates received 5,425,481.06 3,116,258.19 Other cash received in connection 169,780,315.08 79,700,389.63 with operating activities Sub-total of cash inflow from operating 2,155,211,028.02 1,460,760,614.28 activities Cash paid for purchase of goods 2,017,160,739.65 1,500,508,649.71 and rendering of services Net increase in customer loans and advances Net increase in deposits with central bank and other financial institutions 29 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Cash paid for original insurance contract claims Net increase in borrowed funds Interest, fees and commissions paid Cash paid for policyholder dividend Cash paid to and for employees 554,443,455.08 415,163,495.19 Taxes paid 155,731,847.85 61,847,752.29 Other cash paid in connection with 85,657,702.32 85,391,632.29 operating activities Sub-total of cash outflow from 2,812,993,744.90 2,062,911,529.48 operating activities Net cash flow from operating activities -657,782,716.88 -602,150,915.20 2. Cash flow from investing activities: Cash received from disposal of investments Cash received on obtaining 8,170,134.92 3,093,279.09 investment income Net cash received from disposal of fixed assets, intangible assets and 75,262.03 87,964.80 other long-term assets Net cash received from disposal of subsidiaries and other business units Other cash received in connection 4,086,100,000.00 2,036,800,000.00 with investing activities Sub-total of cash inflow from investing 4,094,345,396.95 2,039,981,243.89 activities Cash paid for purchase and construction of fixed assets, 10,040,168.76 1,745,328.28 intangible assets and other long-term assets Cash paid for acquisition of 200,000,000.00 investments Net increase in pledge loans Net cash paid for acquisition of subsidiaries and other business 30 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. units Other cash paid in connection with 3,747,200,000.00 1,818,100,000.00 investing activities Sub-total of cash outflow from 3,957,240,168.76 1,819,845,328.28 investing activities Net cash flow from investing activities 137,105,228.19 220,135,915.61 3. Cash flow from financing activities: Cash received from investments 7,206,452.66 Including: Cash received from investments in a subsidiary by 300,000.00 minority shareholders Cash received on drawdown of 106,075,572.38 88,347,312.01 loans Other cash received in connection with financing activities Sub-total of cash inflow from financing 113,282,025.04 88,347,312.01 activities Cash paid for repayment of 406,829,657.11 512,752,424.86 borrowings Cash paid for dividend or profit 6,898,488.96 10,194,685.70 distribution or interest payment Including: Dividend and profit paid to minority shareholders by a subsidiary Other cash paid in connection with 60,876,260.63 254,781.72 financing activities Sub-total of cash outflow from 474,604,406.70 523,201,892.28 financing activities Net cash flows from financing activities -361,322,381.66 -434,854,580.27 4. Effect on cash and cash equivalents due to change in foreign currency 135,184.17 -1,069,764.49 exchange rate 5. Net increase in cash and cash -881,864,686.18 -817,939,344.35 equivalents Add: Balance of cash and cash equivalents at the beginning 1,789,836,593.55 1,350,168,474.15 of the period 6. Balance of cash and cash equivalents 907,971,907.37 532,229,129.80 at the end of the period 31 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. 6. Cash flow statement of the parent company Unit: RMB Item Amount for the reporting period Amount for the previous period 1. Cash flow from operating activities: Cash received from sales of goods 401,045,045.06 81,071,262.68 and rendering of services Tax rebates received Other cash received in connection 1,008,234.46 79,591.58 with operating activities Sub-total of cash inflow from operating 402,053,279.52 81,150,854.26 activities Cash paid for purchase of goods 323,155,073.46 14,317,697.69 and rendering of services Cash paid to and for employees 5,207,798.38 4,302,920.84 Taxes paid 15,768,828.15 1,171,013.71 Other cash paid in connection with 2,999,618.02 553,940.98 operating activities Sub-total of cash outflow from 347,131,318.01 20,345,573.22 operating activities Net cash flow from operating activities 54,921,961.51 60,805,281.04 2. Cash flow from investing activities: Cash received from disposal of investments Cash received on obtaining 642,405.29 investment income Net cash received from disposal of fixed assets, intangible assets and 362.15 other long-term assets Net cash received from disposal of subsidiaries and other business units Other cash received in connection 598,000,000.00 with investing activities Sub-total of cash inflow from investing 598,642,767.44 activities Cash paid for purchase and construction of fixed assets, 8,760.00 intangible assets and other 32 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. long-term assets Cash paid for acquisition of investments Net cash paid for acquisition of subsidiaries and other business units Other cash paid in connection with 586,000,000.00 73,310,000.00 investing activities Sub-total of cash outflow from 586,008,760.00 73,310,000.00 investing activities Net cash flow from investing activities 12,634,007.44 -73,310,000.00 3. Cash flow from financing activities: Cash received from investments 6,906,452.66 Cash received on drawdown of loans Other cash received in connection 94,391,222.39 13,373,000.00 with financing activities Sub-total of cash inflow from financing 101,297,675.05 13,373,000.00 activities Cash paid for repayment of borrowings Cash paid for dividend or profit distribution or interest payment Other cash paid in connection with 60,823,795.09 78,570.07 financing activities Sub-total of cash outflow from 60,823,795.09 78,570.07 financing activities Net cash flows from financing activities 40,473,879.96 13,294,429.93 4. Effect on cash and cash equivalents due to change in foreign currency exchange rate 5. Net increase in cash and cash 108,029,848.91 789,710.97 equivalents Add: Balance of cash and cash equivalents at the beginning 60,656,839.66 18,997.55 of the period 6. Balance of cash and cash equivalents 168,686,688.57 808,708.52 at the end of the period 33 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. II. Adjustments to the financial statements 1. Details of adjustments for the initial adoption of the new standard on leases in the financial statements as at the beginning of the year 2021 As long as the Company has implemented the first adoption of new lease standard starting from 2021, it is required to fill out this form unless there is no adjustment was made in the balance sheet at the beginning of the year. √ Applicable □ N/A Whether the items of the balance sheet at the beginning of the year shall be adjusted √ Yes □ No The explanation on reason for not required adjusting the items of the balance sheet at the beginning of the year Consolidated balance sheet Unit: RMB Item 31 December 2020 1 January 2021 Adjustments Current assets: Cash and bank balances 1,941,313,168.04 1,941,313,168.04 Settlement provisions Borrowed funds Trading financial assets 750,007,662.48 750,007,662.48 Derivative financial assets Bills receivable 4,759,879.29 4,759,879.29 Trade receivables 1,946,829,284.49 1,946,829,284.49 Receivables financing Prepayments 101,767,749.65 101,767,749.65 Premium receivable Receivables from reinsurers Reinsurance contract reserves receivable Other receivables 146,475,000.58 146,475,000.58 Including: Interest receivable Dividend receivable Purchase of repo financial assets Inventories 2,784,103,976.38 2,784,103,976.38 Contract assets 1,640,000,224.71 1,640,000,224.71 Assets classified as held-for-sale Non-current assets due within one year Other current assets 4,785,136.52 4,597,527.31 -187,609.21 34 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Total current assets 9,320,042,082.14 9,319,854,472.93 -187,609.21 Non-current assets: Disbursement of loans and advances Debt investments Other debt investments Long-term receivables 110,304,194.00 110,304,194.00 Long-term equity investments 163,000,470.68 163,000,470.68 Other investments in equity instruments 154,829,413.56 154,829,413.56 Other non-current financial assets Investment properties 13,630,176.99 13,630,176.99 Fixed assets 453,057,913.67 453,057,913.67 Construction in progress Productive biological assets Oil & gas assets Right of use assets 27,315,839.14 27,315,839.14 Intangible assets 131,559,390.41 131,559,390.41 Development expenses 38,441,116.25 38,441,116.25 Goodwill 1,505,197,394.63 1,505,197,394.63 Long-term prepaid expenses 9,122,916.12 9,122,916.12 Deferred tax assets 152,677,767.07 152,677,767.07 Other non-current assets Total non-current assets 2,731,820,753.38 2,759,136,592.52 27,315,839.14 Total assets 12,051,862,835.52 12,078,991,065.45 27,128,229.93 Current liabilities: Short-term borrowings 722,279,881.25 722,279,881.25 Borrowings from central bank Borrowed funds Trading financial liabilities Derivative financial liabilities Bills payables 552,013,491.84 552,013,491.84 Trade payables 2,373,036,760.20 2,373,036,760.20 Receipt in advance Contract liabilities 1,756,268,042.19 1,756,268,042.19 Funds from selling and repurchasing financial assets 35 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Customer bank deposits and amounts due to banks and other financial institutions Customer brokerage deposits Funds from securities underwriters Staff remuneration payable 495,368,850.46 495,368,850.46 Taxes payable 188,127,416.31 188,127,416.31 Other payables 222,115,124.98 222,115,124.98 Including: Interest payable Dividend payable Fees and commission payable Reinsurance accounts payable Liabilities classified as held-for-sale Non-current liabilities due within one year Other current liabilities Total current liabilities 6,309,209,567.23 6,309,209,567.23 Non-current liabilities: Reserves for insurance contracts Long-term borrowings Bonds payables Including: preferential shares perpetual notes Lease liabilities 27,128,229.93 27,128,229.93 Long-term payables Long-term staff remuneration payable Estimated liabilities Deferred income 20,061,059.53 20,061,059.53 Deferred tax liabilities 36,724,613.52 36,724,613.52 Other non-current liabilities Total non-current liabilities 56,785,673.05 83,913,902.98 27,128,229.93 Total liabilities 6,365,995,240.28 6,393,123,470.21 27,128,229.93 Owners' equity: Share capital 975,768,827.00 975,768,827.00 Other equity instruments Including: preferential shares 36 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. perpetual notes Capital reserve 2,406,151,454.21 2,406,151,454.21 Less: Treasury stock 160,204,801.44 160,204,801.44 Other comprehensive income 98,993,052.24 98,993,052.24 Special reserve Surplus reserve 34,958,025.22 34,958,025.22 General risk provisions Retained profits 2,229,478,383.79 2,229,478,383.79 Total owners' equity attributable to parent company 5,585,144,941.02 5,585,144,941.02 Minority shareholder's interest 100,722,654.22 100,722,654.22 Total owners' equity 5,685,867,595.24 5,685,867,595.24 Total liabilities and owners' equity 12,051,862,835.52 12,078,991,065.45 27,128,229.93 The explanation of adjustments The Company implemented the "Accounting Standards for Business Enterprises No. 21 - Leases" revised and issued by the Ministry of Finance as at 7 December 2018 (hereinafter referred to as the "New Standards on Leases") from 1 January 2021. The Company adjusted the amount of retained earnings and other relevant items in the financial statements at the beginning of the year for the initial adoption of the New Standards on Leases based on the cumulative impact of the first implementation of the new leases accounting standard but had not adjust any comparable financial information. For the operating leases that occurred before the initial adoption of the New Standards on Leases, the Company remeasured its lease liability on the date of initial adoption of the New Standards on Leases based on the present value of the remaining lease payments discounted at the incremental borrowing rate on the date of initial adoption. Based on the amount equal to the lease liability, the right-of-use assets is necessary adjusted with reference to the amount of rental prepayment. Balance sheet of the parent company Unit: RMB Item 31 December 2020 1 January 2021 Adjustments Current assets: Cash and bank balances 60,656,839.66 60,656,839.66 Trading financial assets 251,195,662.48 251,195,662.48 Derivative financial assets Bills receivable Trade receivables 67,707,014.64 67,707,014.64 Receivables financing Prepayments 169,280.31 169,280.31 Other receivables 119,492,209.92 119,492,209.92 Including: Interest receivable 37 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Dividend receivable 17,450,338.26 17,450,338.26 Inventories 314,866,835.38 314,866,835.38 Contract assets Assets classified as held-for-sale Non-current assets due within one year Other current assets 2,417,532.14 2,417,532.14 Total current assets 816,505,374.53 816,505,374.53 Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investments 2,788,806,117.37 2,788,806,117.37 Other investments in equity instruments 33,902,624.00 33,902,624.00 Other non-current financial assets Investment properties Fixed assets 105,668.24 105,668.24 Construction in progress Productive biological assets Oil & gas assets Right of use assets 202,708.35 202,708.35 Intangible assets 12,601.00 12,601.00 Development expenses Goodwill Long-term prepaid expenses 98,587.25 98,587.25 Deferred tax assets 16,082,174.29 16,082,174.29 Other non-current assets Total non-current assets 2,839,007,772.15 2,839,210,480.50 202,708.35 Total assets 3,655,513,146.68 3,655,715,855.03 202,708.35 Current liabilities: Short-term borrowings Trading financial liabilities Derivative financial liabilities Bills payables 29,532,881.97 29,532,881.97 Trade payables 363,473,041.78 363,473,041.78 38 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Receipt in advance Contract liabilities 61,786,437.12 61,786,437.12 Staff remuneration payable 17,369,340.87 17,369,340.87 Taxes payable 12,519,926.27 12,519,926.27 Other payables 29,357,609.93 29,357,609.93 Including: Interest payable Dividend payable Liabilities classified as held-for-sale Non-current liabilities due within one year Other current liabilities Total current liabilities 514,039,237.94 514,039,237.94 Non-current liabilities: Long-term borrowings Bonds payables Including: preferential shares perpetual notes Lease liabilities 202,708.35 202,708.35 Long-term payables Long-term staff remuneration payable Estimated liabilities Deferred income Deferred tax liabilities Other non-current liabilities Total non-current liabilities 202,708.35 202,708.35 Total liabilities 514,039,237.94 514,241,946.29 202,708.35 Owners' equity: Share capital 975,768,827.00 975,768,827.00 Other equity instruments Including: preferential shares perpetual notes Capital reserve 2,243,077,639.50 2,243,077,639.50 Less: Treasury stock 160,204,801.44 160,204,801.44 Other comprehensive income -21,108,077.44 -21,108,077.44 Special reserve 39 Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd. Surplus reserve 34,958,025.22 34,958,025.22 Retained profits 68,982,295.90 68,982,295.90 Total owners' equity 3,141,473,908.74 3,141,473,908.74 Total liabilities and owners' equity 3,655,513,146.68 3,655,715,855.03 202,708.35 The explanation of adjustments The Company implemented the "Accounting Standards for Business Enterprises No. 21 - Leases" revised and issued by the Ministry of Finance as at 7 December 2018 (hereinafter referred to as the "New Standards on Leases") from 1 January 2021. The Company adjusted the amount of retained earnings and other relevant items in the financial statements at the beginning of the year for the initial adoption of the New Standards on Leases based on the cumulative impact of the first implementation of the new leases accounting standard but had not adjust any comparable financial information. For the operating leases that occurred before the initial adoption of the New Standards on Leases, the Company remeasured its lease liability on the date of initial adoption of the New Standards on Leases based on the present value of the remaining lease payments discounted at the incremental borrowing rate on the date of initial adoption. Based on the amount equal to the lease liability, the right-of-use assets is necessary adjusted with reference to the amount of rental prepayment. 2. The explanation on adjustments to the comparative figures for the previous periods in relation to the initial adoption of the new lease standard since 2021 □ Applicable √ N/A Note: When the listed company has retrospectively adopted the impact of the initial adoption of the new accounting standards and adjusted the comparative figures for the previous periods, it shall disclose the name of the adjusted financial statement items and the adjusted amount. III. Audit Report Whether the first quarterly report is audited □ Yes √ No The first quarterly report of the Company is unaudited. The Board of Digital China Information Service Company Ltd. Chairman: Guo Wei 27 April 2021 40

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