Digital China : ANNOUNCEMENT IN RELATION TO THE UNAUDITED CONSOLIDATED FINANCIAL RESULTS OF DIGITAL CHINA INFORMATION SERVICE COMPANY LTD. FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2019

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 THIRD QUARTER ENDED 30 SEPTEMBER 2019 This announcement is made by Digital China Holdings Limited (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 third quarter ended 30 September 2019 (the " Results ") has been released on 21 October 2019. DCITS is the Company's 40.43% 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 third quarter ended 30 September 2019 Three months Nine months Three months Nine months ended 30 ended 30 ended 30 ended 30 September 2019 September 2019 September 2018 September 2018 (unaudited) (unaudited) (unaudited) (unaudited) RMB'000 RMB'000 RMB'000 RMB'000 Revenue 2,104,044 6,234,238 2,010,354 6,171,257 Net profit before taxation 74,655 200,213 46,475 296,710 Net profit for the period 55,777 182,394 46,234 294,177 Net profit attributable to DCITS's shareholders 61,170 190,314 45,864 296,356 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 40.43% 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, 21 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 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 stated, the following currencies are all in RMB dollars.) 3 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Digital China Information Service Company Ltd. 2019 Third Quarterly Report October 2019 1 Full text of the 2019 Third 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 Lu Benfu Independent director Business reasons Wang Nengguang 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 2019 Third 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 As at the end of the As at the end of Increase/decrease as at the end of the reporting reporting period last year period compared with the end of last year Total assets (RMB) 9,986,486,358.01 10,696,306,209.17 -6.64% Net assets attributable to shareholders of the 5,039,130,284.13 4,946,084,692.51 1.88% listed company (RMB) Increase/decrease From the Increase/decrease For the reporting in the reporting beginning of the of the reporting period compared period compared year to the end of period with the same with the same the reporting period of last period of last year period year Operating revenue (RMB) 2,104,043,896.30 4.66% 6,234,237,899.77 1.02% Net profit attributable to shareholders of the listed 61,170,421.26 33.37% 190,314,176.44 -35.78% company (RMB) Net profit after extraordinary gain or loss items attributable to 14,951,902.63 -63.37% 133,579,710.40 5.25% shareholders of the listed company (RMB) Net cash flows from operating activities (RMB) -- -- -614,865,394.82 14.68% Basic earnings per share 0.0635 33.40% 0.1975 -35.79% (RMB/share) Diluted earnings per share 0.0635 33.40% 0.1975 -35.79% (RMB/share) Weighted average return on net assets 1.22% 0.33% 3.83% -2.05% Items and amounts of extraordinary gain or loss √ Applicable □ N/A Unit: RMB Amount from the Item beginning of the year to end Note of the reporting period Gain/loss from the disposal of non-current assets (including written-off portions for which asset impairment provision has 900,350.85 been made) Government grants included in current period's profit and loss (other than government grants closely related to the business of 17,225,268.71 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 19,602,281.49 derivative financial liabilities, and investment income from the disposal of trading financial assets, derivative financial assets, 3 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. 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 1,046,791.95 Investment gain on disposal of long-term equity interests 23,717,643.82 Less: Effect of income tax 5,409,316.06 Effect of minority interests (after tax) 348,554.72 Total 56,734,466.04 -- 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. 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 preferential Total number of ordinary shareholders as 63,000 shareholders with reinstated 0 at the end of the reporting period voting rights as at the end of the reporting period Particulars of shareholding of the top 10 shareholders Number of shares Pledged or frozen Name of shareholder Nature of Percentage of Number of held subject to Status of shareholder shareholding shares held trading Number shares moratorium Digital China Software Non-state-ow Limited ( 神州數碼軟件有 ned domestic 40.43% 389,540,110 0 Pledged 270,490,483 限公司 ) ("DCSL") legal person China-Singapore Suzhou Industrial Park Ventures State-owned Co., Ltd. ( 中新蘇州工業 6.71% 64,675,937 0 Pledged 21,000,000 legal person 園區創業投資有限公司 ) ("CSSIP") Pingxiang Xinrui Corporate Management Non-state-ow Partnership (Limited ned domestic 5.41% 52,101,765 0 Partnership) ( 萍鄉信銳企 業管理合夥企業 ( 有限合 legal person 夥 )) ("Pingxiang Xinrui") 4 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Kunshan Shenchang Technology Co., Ltd. ( 昆 State-owned 山市申昌科技有限公司 ) 5.16% 49,708,280 0 Frozen 6,632,000 legal person ("Shenchang Technology") China Galaxy Securities Co., Ltd. ( 中國銀河證券 State-owned 1.94% 18,660,000 0 股份有限公司 ) ("Galaxy legal person Securities") Infinity I-China Foreign legal Investments(Israel),L.P. 1.36% 13,130,434 0 Pledged 13,130,434 person ("Infinity I-China") Wang Yufei ( 王宇飛 ) Domestic 0.94% 9,082,000 0 Pledged 8,790,000 natural person Cheng Yanyun ( 程艷雲 ) Domestic 0.89% 8,527,926 8,527,926 natural person Wu Donghua ( 吳冬華 ) Domestic 0.80% 7,735,638 7,735,638 natural person Zhang Dandan ( 張丹丹 ) Domestic 0.64% 6,212,438 0 Pledged 4,830,000 natural person Particulars of shareholdings of the top 10 shareholders not subject to trading moratorium Name of shareholder Number of shares held not subject Class of shares to trading moratorium Class of shares Number DSCL 389,540,110 RMB ordinary shares 389,540,110 CSSIP 64,675,937 RMB ordinary shares 64,675,937 Pingxiang Xinrui 52,101,765 RMB ordinary shares 52,101,765 Shenchang Technology 49,708,280 RMB ordinary shares 49,708,280 Galaxy Securities 18,660,000 RMB ordinary shares 18,660,000 Infinity I-China 13,130,434 RMB ordinary shares 13,130,434 Wang Yufei ( 王宇飛 ) 9,082,000 RMB ordinary shares 9,082,000 Zhang Dandan ( 張丹丹 ) 6,212,438 RMB ordinary shares 6,212,438 He Shenglong ( 賀勝龍 ) 5,050,000 RMB ordinary shares 5,050,000 Feng Jiangang ( 馮健剛 ) 3,601,400 RMB ordinary shares 3,601,400 DCSL and Pingxiang Xinrui were connected parties under Paragraph 4 of "Accounting Description of connected relationships or Standards for Business Enterprises No. 36 -Disclosure of Connected Parties". Unless concerted party relationships among the otherwise described above, DCSL has no connected relationship or person acting in aforesaid shareholders concert with other shareholders and the Company is not aware of connected relationship or person acting in concert between other shareholders. Description of participation in margin Nil trading by any of the top 10 shareholders 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 5 Full text of the 2019 Third 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 668,735,635.67 1,518,050,558.45 -55.95% 1 Trading financial assets 658,542,970.12 1,121,676,020.00 -41.29% 2 Bills receivable 8,179,943.26 20,024,810.58 -59.15% 3 Prepayments 204,272,694.18 115,911,248.60 76.23% 4 Development expenses 41,361,687.19 17,733,832.82 133.24% 5 Short-term borrowings 1,052,224,430.96 1,661,499,464.30 -36.67% 6 Bills payable 749,481,260.43 503,401,182.16 48.88% 7 Staff remuneration payable 197,499,593.18 342,082,828.52 -42.27% 8 Non-current liabilities due within 50,000,000.00 20,000,000.00 150.00% 9 one year Long-term borrowings - 45,000,000.00 -100.00% 10 Long-term payables 6,195,238.00 4,454,762.00 39.07% 11 Estimated liabilities 660,000.00 4,535,900.00 -85.45% 12 Notes: The opening balances in the above table represent the balances after adjustments at the beginning of the period in accordance with the new accounting standards on financial instruments. Cash and bank balances decreased by 55.95% as compared to last year, which was mainly attributable to the cash outflows from operating activities and repayment of bank loans during the period; Trading financial assets decreased by 41.29% as compared to last year, which was mainly attributable to the redemption of bank wealth management products during the period; Bills receivable decreased by 59.15% as compared to last year, which was mainly attributable to the repayment from the matured bills receivable and decreased bills during the period; Prepayments increased by 76.23% as compared to last year, which was mainly attributable to the increase in prepayments for procurement for large projects during the period; Development expenses increased by 133.24% as compared to last year, which was mainly attributable to the increase in research and development projects during the period; Short-term borrowings decreased by 36.67% as compared to last year, which was mainly attributable to the repayment of short-term borrowings during the period; Bills payable increased by 48.88% as compared to last year, which was mainly attributable to the increase in bank acceptance bills settled during the period; Staff remuneration payable decreased by 42.27% as compared to last year, which was mainly attributable to the payment of bonus provided as at the end of the last year; Non-current liabilities due within one year increased by 150.00% as compared to last year, which was mainly attributable to that the long-term borrowings will become due within one year; 6 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Long-term borrowings decreased by 100.00% as compared to last year, which was mainly attributable to the reclassification of long-term borrowings into non-current liabilities due within one year during the period; Long-term payables increased by 39.07% as compared to last year, which was mainly attributable to the increase in convertible bonds during the period; Estimated liabilities decreased by 85.45% as compared to last year, which was mainly attributable to the payment of legal fees during the period; (II) Reasons for changes in income statement items: Item Amount for the Amount for the same Percentage of Note current period (RMB) period of last year (RMB) change Research and development 241,550,502.75 157,647,149.67 53.22% 13 expenses Financial expenses 67,525,657.21 41,309,076.87 63.46% 14 Investment income 61,265,349.16 173,992,996.53 -64.79% 15 Gains on changes in fair value 16,166,950.12 78,559.50 20479.24% 16 Non-operating income 3,405,417.79 333,033.74 922.54% 17 Income tax expenses 17,819,544.80 2,532,463.81 603.64% 18 13.Research and development expenses increased by 53.22% as compared to the last corresponding year, which was mainly attributable to the increase in investments in research and development during the period; Financial expenses increased by 63.46% as compared to the last corresponding year, which was mainly attributable to the increase in interest expenses and decrease in exchange gain during the period; Investment income decreased by 64.79% as compared to the last corresponding year, which was mainly attributable to the significant amount of income from disposal of part of equity interests of a subsidiary during the last corresponding year; Gains on changes in fair value increased by 20,479.24% as compared to the last corresponding year, which was mainly attributable to the increase in share investment and fair value of non-bank wealth management products during the period; Non-operating income increased by 922.54% as compared to the last corresponding year, which was mainly attributable to the increase in gains on disposal of retirement fixed assets during the period as compared to the last corresponding year; Income tax expenses increased by 603.64% as compared to the last corresponding year, which was mainly attributable to the decrease in provision for deferred income tax assets during the period; (III) Reasons for change in cash flow statement items: Amount for the current Amount for the same Percentage Item period of last year Note period (RMB) of change (RMB) Net cash flows from investing activities 474,157,884.41 -323,118,497.22 246.74% 19 Net cash flows from financing activities -714,491,181.80 -264,050,680.36 -170.59% 20 Effect on cash and cash equivalents due to -152,946.17 -756,954.20 79.79% 21 change in foreign currency exchange rate Net cash flows from investing activities increased by 246.74% as compared to the last corresponding year, which was mainly attributable to the redemption of wealth management products during the period; Net cash flows from financing activities decreased by 170.59% as compared to the last corresponding year, which was mainly attributable to the net repayment of borrowings during the period; Effect on cash and cash equivalents due to change in foreign currency exchange rate increased by 79.79% as compared to the last corresponding year, which was mainly attributable to the exchange rate fluctuations in the external financial market during the period. 7 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. II. Progress of significant events and analysis of their impacts and solutions Applicable □ N/A 1. Progress of the 2019 Share Option and Restricted Share Incentive Scheme On 23 April 2019, the Company convened the 2019 third interim meeting of the eighth session of the Board at which the resolutions in relation to the "2019 Share Option and Restricted Share Incentive Scheme (Draft) of the Company and Its Summary" ( 《關於公司 <2019 年股票期權與限制性股票激勵計劃（草案） > 及其摘要的議案》 ), etc. were considered and approved. On 8 May 2019, the Company convened the 2019 fourth interim meeting of the eighth session of the Board at which the resolutions in relation to the "2019 Share Option and Restricted Share Incentive Scheme (Revised Draft) of the Company and Its Summary" ( 《關於公司 <2019 年股票期權與限制性股票激勵計劃（草案修訂稿） > 及其摘要的議案》 ), etc. were considered and approved. In accordance with relevant provisions of the Administrative Measures for the Equity Incentives of Listed Companies ( 《上市公司股權激勵管理辦 法》 ) (the "Administrative Measures"), the Company has published the names and positions of the incentive recipients within the Company and the supervisory committee conducted verification on the incentive recipients based on the publication. On 22 May 2019, the Company disclosed the "Explanations and Verification Opinions of the Supervisory Committee on the Publication of Incentive Recipients of the 2019 Share Option and Restricted Share Incentive Scheme" ( 《監事會關於 2019 年股票期權與限制性股 票激勵計劃激勵對象名單的公示情況說明及核查意見》 ). On 10 September 2019, the Company convened the 2019 third extraordinary general meeting at which the resolutions in relation to the 2019 Share Option and Restricted Share Incentive Scheme, etc. were considered and approved. On 17 September 2019, the Company convened the seventh interim meeting of the eighth session of the Board at which the Resolution in relation to the "Adjustment to the Name List of Incentive Recipients, Number of Options to be Granted and Price under the 2019 Share Option and Restricted Share Incentive Scheme" ( 《關於調整 2019 年股票期權與限制性股票激勵計劃激勵對象名單、授予權益數量及價格的 議案》 ) and the "Resolution in relation to Grant of Share Options and Restricted Shares to Incentive Recipients" ( 《關於向激勵對象 授予股票期權與限制性股票的議案》 ) were considered and approved, pursuant to which it was determined that the grant date of the share options and restricted shares should be 17 September 2019. The total number of interests to be granted to incentive recipients under the incentive scheme is 29.87 million including 22.47 million share options and 7.40 million restricted shares. For details of the abovementioned matters, please refer to relevant announcements published in the Securities Times and on the website of CNINFO* ( 巨潮資訊網網站 http://www.cninfo.com.cn ). As at the disclosure date of this announcement, the 2019 Share Option and Restricted Share Incentive Scheme are still valid and the grant registration procedures are yet to be completed. 2. Progress of donation for participation in establishment of Beijing Fintech Research Institute ( 北京金融科技研究院 ) In order to promote the joint development of the fintech industry, on 10 September 2019, the Company convened the 2019 sixth interim meeting of the eighth session of the Board at which the Resolution in relation to "Donation for Participation in Establishment of Beijing Fintech Research Institute" ( 《關於捐贈資金參與設立北京金融科技研究院的議案》 ) was considered and approved, pursuant to which Digital China Rongxin Software Limited* ( 神州數碼融信軟件有限公司 ), a wholly-owned subsidiary of the Company, was approved to participate in the establishment of Beijing Fintech Research Institute ( 北京金融科技研究院 ) (the "Research Institute") as a promoter and donate RMB2 million with its own funds as the start-up funds for the Research Institute. For details, please refer to the Announcement on "Donation for Participation in Establishment of Beijing Fintech Research Institute" 《 ( 關 於捐贈資金參與設立北京金融科技研究院的公告》 ) published by the Company in the Securities Times and on the website of CNINFO* ( 巨潮資訊網網站 ) 11 September 2019. As at the disclosure date of this announcement, the Company has not yet been completed the actual capital contribution. 8 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. 3. Progress of disposal of shares by a subsidiary of the Company Digital China Software (BVI) Limited (the "DC Software"), a subsidiary of the Company, disclosed the "Announcement on the Plan of Reduction of Shareholding by Shareholders Holding 5% or above Equity Interests in the Company" 《 ( 關於公司持股 5% 以上 的股東減持股份計劃的公告》 ) through Digiwin Software Co., Ltd. ( 鼎捷軟件股份有限公司 ) (stock code: 300378, stock abbreviation: Digiwin Software). For details, please refer to the "Announcement on the Plan of Reduction of Shareholding by Shareholders Holding 5% or above Equity Interests in the Company" ( 《關於公司持股 5% 以上的股東減持股份計劃的公告》 ) (announcement no.: 2019-04057) (the "Shareholding Reduction Plan") published by Digiwin Software on the website of CNINFO* ( 巨潮資訊網 ) and in the Securities Times and China Securities Journal. The Company published the "Announcement on Disposal of Shares of Digiwin Software by a Subsidiary" ( 《關於下屬子公司 出售鼎捷軟件股份的公告》 ) and the "Announcement on Disposal of Shares to Public by a Subsidiary" ( 《關於下屬子公司對外出 售股票資產的公告》 ) (announcement no.: 2019-063,2019-065,2019-066) in the Securities Times and the website of CNINFO* ( 巨 潮資訊網 ) on 30 July, 2 August and 6 August 2019, respectively. On 29 August 2019, the Company convened the third meeting of the eighth session of the Board at which the Resolution in relation to "Authorization of the Management to Dispose Shares" ( 《關於 授權管理層處置股票資產的議案》 ) was considered and approved, pursuant to which the management was authorized to dispose the remaining unsold shares under the Shareholding Reduction Plan in due course. For details, please refer to the "Announcement on Authorization of the Management to Dispose Shares" ( 《關於授權管理層處置股票資產的公告》 ) published by the Company in the Securities Times and on the website of CNINFO* ( 巨潮資訊網 ) on 31 August 2019. The above matter has been considered and approved at the 2019 third extraordinary general meeting of the Company. The Company disclosed the "Announcement on Progress of the Disposal of Shares to Public by a Subsidiary" ( 《關於下屬子公司對外出售股票資產的進展公告》 ) (announcement no.: 2019-090) in the Securities Times and on the website of CNINFO* ( 巨潮資訊網 ) on 25 September 2019. As at the disclosure date of this announcement, DC Software has accumulatively disposed 3,031,000 shares of Digiwin Software and still holds 43,696,639 shares of Digiwin Software, representing approximately 16.43% of the total share capital of Digiwin Software. The Company will continue to pay attention to the disposal of shares of Digiwin Software by DC Software and fulfill the information disclosure and approval obligations in a timely manner. 4. Index of the Company's announcements during the reporting period: Brief description of material matter Date of disclosure Search index for website on which interim announcements are published Holding announcement on the convening of the first extraordinary 02 January 2019 http://www.cninfo.com.cn general meeting of 2019 Announcement of resolutions of the first extraordinary general 03 January 2019 http://www.cninfo.com.cn meeting of 2019 Announcement of resolutions of the first interim meeting of 2019 03 January 2019 http://www.cninfo.com.cn of the eighth session of the board of directors Announcement of resolutions of the first interim meeting of 2019 03 January 2019 http://www.cninfo.com.cn of the eighth session of the supervisory committee Announcement of pledge of shares by the controlling shareholder 05 January 2019 http://www.cninfo.com.cn of the Company Announcement of implementation of sell-down of shares by 10 January 2019 http://www.cninfo.com.cn members of the senior management of the Company Preliminary Announcement of sell-down of shares in the Company 10 January 2019 http://www.cninfo.com.cn by a shareholder Holding announcement on projected continuing connected 12 January 2019 http://www.cninfo.com.cn transactions in 2019 Announcement of unusual stock trading movement 18 January 2019 http://www.cninfo.com.cn Announcement of receipt of government grants 23 January 2019 http://www.cninfo.com.cn Announcement of resolutions of the second interim meeting of 31 January 2019 http://www.cninfo.com.cn 9 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. 2019 of the eighth session of the board of directors Announcement on projected continuing connected transactions in 31 January 2019 http://www.cninfo.com.cn 2019 Announcement of estimated amount of guarantee to be provided 31 January 2019 http://www.cninfo.com.cn by the Company and its subsidiaries Announcement of securities investment using internal funds 31 January 2019 http://www.cninfo.com.cn Announcement of financial assistance provided to a subsidiary 31 January 2019 http://www.cninfo.com.cn Notice convening the second extraordinary general meeting of 31 January 2019 http://www.cninfo.com.cn 2019 Preliminary announcement of 2018 annual results 31 January 2019 http://www.cninfo.com.cn Announcement of supplementary pledge of shares by a 31 January 2019 http://www.cninfo.com.cn shareholder Announcement of resolutions of the second interim meeting of 31 January 2019 http://www.cninfo.com.cn 2019 of the eighth session of the supervisory committee Holding announcement on the convening of the second 15 February 2019 http://www.cninfo.com.cn extraordinary general meeting of 2019 Announcement of resolutions of the second extraordinary general 19 February 2019 http://www.cninfo.com.cn meeting of 2019 Announcement of the award of the hi-tech enterprise certificate to 07 March 2019 http://www.cninfo.com.cn a subsidiary Announcement on repurchase by way of share pledge conducted 09 March 2019 http://www.cninfo.com.cn by the controlling shareholder of the Company Announcement on repurchase by way of share pledge conducted 28 March 2019 http://www.cninfo.com.cn by the controlling shareholder of the Company Announcement of resolutions of the first meeting of the eighth 28 March 2019 http://www.cninfo.com.cn session of the board of directors Summary of 2018 Annual Report 28 March 2019 http://www.cninfo.com.cn Notice of the 2018 annual general meeting 28 March 2019 http://www.cninfo.com.cn Announcement on provision for asset impairment 28 March 2019 http://www.cninfo.com.cn Announcement of resolutions of the first meeting of the eighth 28 March 2019 http://www.cninfo.com.cn session of the supervisory committee Announcement on progress of sell-down of shares by a 08 April 2019 http://www.cninfo.com.cn shareholder Announcement of resolutions of the second meeting of the eighth 12 April 2019 http://www.cninfo.com.cn session of the board of directors 2019 first quarterly report 12 April 2019 http://www.cninfo.com.cn Announcement of resolutions of the second meeting of the eighth 12 April 2019 http://www.cninfo.com.cn session of the supervisory committee Announcement on provision for asset impairment 12 April 2019 http://www.cninfo.com.cn Announcement of receipt of government grants 12 April 2019 http://www.cninfo.com.cn Holding announcement on the convening of the annual general 16 April 2019 http://www.cninfo.com.cn meeting of 2018 Announcement of resolutions of the 2018 annual general meeting 19 April 2019 http://www.cninfo.com.cn Announcement of resolutions of the third interim meeting of 2019 24 April 2019 http://www.cninfo.com.cn of the eighth session of the board of directors Announcement of resolutions of the third interim meeting of 2019 24 April 2019 http://www.cninfo.com.cn of the eighth session of the supervisory committee Announcement on provision of guarantee by a wholly-owned 26 April 2019 http://www.cninfo.com.cn subsidiary of the Company Announcement on the partial release of pledge of shares by the 27 April 2019 http://www.cninfo.com.cn controlling shareholder of the Company Announcement - Progress on sell-down of shares by a shareholder 06 May 2019 http://www.cninfo.com.cn with shareholdings of 5% or above 10 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Announcement on repurchase by way of share pledge conducted 07 May 2019 http://www.cninfo.com.cn by the controlling shareholder of the Company Announcement of resolutions of the fourth interim meeting of 09 May 2019 http://www.cninfo.com.cn 2019 of the eighth session of the board of directors Explanations on Revision of the 2019 Share Option and Restricted 09 May 2019 http://www.cninfo.com.cn Share Incentive Scheme (Draft) Announcement of resolutions of the fourth interim meeting of 09 May 2019 http://www.cninfo.com.cn 2019 of the eighth session of the supervisory committee Announcement on extension of the repurchase by way of share 22 May 2019 http://www.cninfo.com.cn pledge conducted by the controlling shareholder of the Company Explanations and Verification Opinions of the Supervisory Committee on the Publication of Incentive Recipients of the 2019 22 May 2019 http://www.cninfo.com.cn Share Option and Restricted Share Incentive Scheme Announcement of receipt of government grants 28 May 2019 http://www.cninfo.com.cn Announcement on implementation of rights and interests 31 May 2019 http://www.cninfo.com.cn distribution for 2018 Notice convening the third extraordinary general meeting of 2019 31 May 2019 http://www.cninfo.com.cn Report on the open solicitation of voting rights by independent 31 May 2019 http://www.cninfo.com.cn directors Holding announcement on the convening of the third 10 June 2019 http://www.cninfo.com.cn extraordinary general meeting of 2019 Announcement of resolutions of the fifth interim meeting of 2019 13 June 2019 http://www.cninfo.com.cn of the eighth session of the board of directors Announcement on cancellation of the 2019 third extraordinary 13 June 2019 http://www.cninfo.com.cn general meeting and convening the meeting in due course Holding announcement on changes in the interests of shareholders 29 June 2019 http://www.cninfo.com.cn with shareholdings of 5% or above Announcement of implementation of sell-down of shares by 09 July 2019 http://www.cninfo.com.cn shareholders with shareholdings of 5% or above Preliminary announcement of sell-down of shares in the Company 09 July 2019 http://www.cninfo.com.cn by shareholders with shareholdings of 5% or above Holding announcement on changes in the interests of shareholders 09 July 2019 http://www.cninfo.com.cn with shareholdings of 5% or above Supplemental announcement on changes in the interests of 09 July 2019 http://www.cninfo.com.cn shareholders with shareholdings of 5% or above Announcement on progress of investment in establishment of an 13 July 2019 http://www.cninfo.com.cn industrial investment fund Announcement on the partial release of pledge of shares by the 30 July 2019 http://www.cninfo.com.cn shareholders of the Company Announcement on disposal of shares of Digiwin Software by a 30 July 2019 http://www.cninfo.com.cn subsidiary Announcement of implementation of sell-down of shares by 31 July 2019 http://www.cninfo.com.cn shareholders with shareholdings of 5% or above Announcement on disposal of shares to public by a subsidiary 02 August 2019 http://www.cninfo.com.cn Announcement on disposal of shares to public by a subsidiary 06 August 2019 http://www.cninfo.com.cn Announcement on completion of fund change filing and 07 August 2019 http://www.cninfo.com.cn registration procedures for the industrial investment fund Announcement on the release of pledge of shares by the 13 August 2019 http://www.cninfo.com.cn shareholders of the Company Announcement of resolutions of the third meeting of the eighth 31 August 2019 http://www.cninfo.com.cn session of the board of directors Summary of 2019 Interim Report 31 August 2019 http://www.cninfo.com.cn Announcement on authorization of the management to dispose 31 August 2019 http://www.cninfo.com.cn shares 11 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Announcement of financial assistance provided to a subsidiary 31 August 2019 http://www.cninfo.com.cn Notice convening the third extraordinary general meeting of 2019 31 August 2019 http://www.cninfo.com.cn Report on the open solicitation of voting rights by independent 31 August 2019 http://www.cninfo.com.cn directors Announcement on provision for asset impairment and write-off of 31 August 2019 http://www.cninfo.com.cn assets Announcement on resignation of senior management of the 31 August 2019 http://www.cninfo.com.cn Company Announcement of resolutions of the third meeting of the eighth 31 August 2019 http://www.cninfo.com.cn session of the supervisory committee Announcement of receipt of government grants 31 August 2019 http://www.cninfo.com.cn Announcement of resolutions of the sixth interim meeting of 2019 11 September 2019 http://www.cninfo.com.cn of the eighth session of the board of directors Announcement on donation for participation in establishment of 11 September 2019 http://www.cninfo.com.cn Beijing Fintech Research Institute Holding announcement on the convening of the third 12 September 2019 http://www.cninfo.com.cn extraordinary general meeting of 2019 Announcement of pledge of shares by the controlling shareholder 12 September 2019 http://www.cninfo.com.cn of the Company Announcement of resolutions of the third extraordinary general 17 September 2019 http://www.cninfo.com.cn meeting of 2019 Self-inspection report on insiders under the 2019 Share Option and Restricted Share Incentive Scheme and trading of shares of the 17 September 2019 http://www.cninfo.com.cn Company by incentive recipients Announcement of resolutions of the seventh interim meeting of 18 September 2019 http://www.cninfo.com.cn 2019 of the eighth session of the board of directors Announcement on adjustment to the name list of incentive recipients, number of options to be granted and price under the 18 September 2019 http://www.cninfo.com.cn 2019 Share Option and Restricted Share Incentive Scheme Announcement on grant of share options and restricted shares to 18 September 2019 http://www.cninfo.com.cn incentive recipients Announcement of resolutions of the fifth interim meeting of 2019 18 September 2019 http://www.cninfo.com.cn of the eighth session of the supervisory committee Verification opinions of the supervisory committee on the name life of incentive recipients as at the grant date of the 2019 Share 18 September 2019 http://www.cninfo.com.cn Option and Restricted Share Incentive Scheme Announcement on disposal of shares to public by a subsidiary 26 September 2019 http://www.cninfo.com.cn Progress of implementation of share repurchase Applicable √ N/A 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 2019 Third Quarterly Report of Digital China Information Service Company Ltd. IV. Estimates on operating results for 2019 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 Estimated results: significant increase in the same direction Numeric data type of the estimated results: interval number From the beginning of the year Corresponding to the end of the next reporting period of last Increase/decrease period year Estimated amount of accumulative net profit (RMB 36,000 -- 40,000 4,209.62 Increase 755.18% -- 850.20% ten thousand) Basic earnings per share 0.3737 -- 0.4152 0.0437 Increase 755.07% -- 850.07% (RMB/Share) During the year, the Company focused its key efforts and advantageous resources on strategic and innovative businesses with better development prospects and the ATM business was properly disposed of in 2018. Therefore, in light of the complex and volatile external environment, the Explanation on the estimated Company's strategic shift and upgrade was continuously advanced. The financial technology software and services business achieved relatively stable operation and development. As at result, the net results profit for the year is expected to increase significantly year-on-year. This estimation of results is the result of preliminary calculations by the Company's finance department. The specific financial data will be disclosed by the Company in detail in the 2019 annual report. Investors are advised to make careful decisions and pay attention to investment risks. 13 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. V. Investment in securities Applicable □ N/A Unit: RMB Gain/loss Cumulative Amount Amount Book value at fair value Gain/loss for Book value at Source Type of Stock Stock Initial Accounting from Accounting change purchased disposed the beginning fair-value the reporting the end of the of securities code name investment cost method accounted during the during the classification of the period change for period period funds for in period period the period equity 19 Bond 155228 Zhongxi 280,000,000.00 Fair-value 280,000,000.00 280,000,000.00 3,340,141.76 Others Internal 01 (19 中 measurement funds 希 01) Domestic/foreign Digital Fair-value Trading Internal 000034 23,937,265.50 21,676,020.00 3,851,724.00 4,259,458.80 25,527,744.00 financial stock China measurement funds assets Domestic/foreign Fair-value Trading Internal 003816 CGN 12,450.00 12,450.00 24,068.67 11,618.67 financial stock measurement funds assets Total 303,949,715.50 -- 21,676,020.00 3,851,724.00 0.00 280,012,450.00 280,024,068.67 7,611,219.23 25,527,744.00 -- -- Date of announcement of the Board of Directors' meeting approving the 31 January 2019 securities investments Date of announcement of the general meeting approving the securities investments (if any) 14 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. VI. Entrusted fund management Applicable □ N/A Unit: RMB ten thousand Specific type of Source of funds under Amount of entrusted fund Outstanding Amount overdue and under yet to be entrustment entrusted management management incurred balance recouped Bank investment product Internal funds 120,900 37,070 0 Securities firm investment product Internal funds 30,000 0 0 Other categories Internal funds 16,000 25,000 0 Total 166,900 62,070 0 Details of high-risk entrusted fund management with individually material amounts or a lower level of security or liquidity without guaranteed repayment of principal √ Applicable □ N/A Unit: RMB ten thousand Actual General Name of Realisation Any entrusted description gain/loss Type of of trustee of Method for Pro-forma incurred Impairment Statutory fund the matter institution trustee Product Source Investment Anticipated gain/loss Amount Start date End date determining annualised for provision procedures management and (or institution type of fund target yield for the fees yield rate the provided fulfilled plan in relevant name of (or trustee) reporting reporting future index trustee) period period for enquiry Fixed China Citic income Repayment Bank, Bank 15 products of principal Beijing Internal 16 April (bonds, and Bank Investment 10,000 January 4.30% 107.21 107.21 Realised Yes Yes Zhichun funds 2019 notes, etc) interests product 2019 Road and debt upon Sub-branch class maturity assets Total 10,000 -- -- -- -- -- -- 107.21 107.21 -- -- -- -- Expected inability to recoup the principal amount under entrusted fund management or other situations that might result in impairment □ Applicable √ N/A 15 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. VII. Derivative Investments Applicable √ N/A There was no derivative investment during the reporting period. VIII. Registration record of reception of analysts, communications and press interviews during the reporting period Applicable □ N/A Date Mode Type of audience received Index for general research information http://www.cninfo.com.cn/new/disclosur 25 July 2019 On-site visit Institution e/detail?plate=szse&stockCode=000555 &announcementId=1206474348&annou ncementTime=2019-07-25 http://www.cninfo.com.cn/new/disclosur 02 September 2019 Telephone communication Institution e/detail?plate=szse&stockCode=000555 &announcementId=1206886920&annou ncementTime=2019-09-04 http://www.cninfo.com.cn/new/disclosur 10 September 2019 On-site visit Institution e/detail?plate=szse&stockCode=000555 &announcementId=1206917360&annou ncementTime=2019-09-11 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 appropriation of non-operating funds of the listed company by the Company's controlling shareholder and its connected parties during the reporting period. 16 Full text of the 2019 Third 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. 30 September 2019 Unit: RMB Item 30 September 2019 31 December 2018 Current assets: Cash and bank balances 668,735,635.67 1,518,050,558.45 Balances with clearing companies Loans to banks and other financial institutions Trading financial assets 658,542,970.12 Financial assets at fair value through profit and loss 21,676,020.00 Derivative financial assets Bills receivable 8,179,943.26 20,024,810.58 Trade receivables 3,213,890,480.98 3,006,436,880.14 Receivables financing Prepayments 204,272,694.18 115,911,248.60 Premium receivable Receivables from reinsurers Reinsurance contract reserves receivable Other receivables 179,211,198.32 152,877,183.82 Including: Interest receivable Dividend receivable Purchase of repo financial assets Inventories 2,055,931,286.94 1,726,098,649.25 Contract assets Assets classified as held-for-sale Non-current assets due within one year Other current assets 19,917,053.07 1,122,833,926.47 Total current assets 7,008,681,262.54 7,683,909,277.31 17 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Non-current assets: Disbursement of loans and advances Debt investments Available-for-sale financial assets 110,334,697.32 Other debt investments Held-to-maturity investments Long-term receivables Long-term equity investments 488,791,920.15 509,384,368.44 Other investments in equity instruments 133,442,498.00 Other non-current financial assets Investment properties 14,094,490.35 14,373,078.37 Fixed assets 502,164,562.47 532,791,372.68 Construction in progress Productive biological assets Oil & gas assets Right of use assets Intangible assets 121,071,226.50 152,873,405.70 Development expenses 41,361,687.19 17,733,832.82 Goodwill 1,544,132,544.03 1,544,132,544.03 Long-term deferred and prepaid expenses 18,802,507.98 23,532,165.55 Deferred income tax assets 113,943,658.80 107,241,466.95 Other non-current assets Total non-current assets 2,977,805,095.47 3,012,396,931.86 Total assets 9,986,486,358.01 10,696,306,209.17 Current liabilities: Short-term borrowings 1,052,224,430.96 1,661,499,464.30 Borrowings from central bank Placements from banks and other financial institutions Trading financial liabilities Financial liabilities at fair value through profit and loss Derivative financial liabilities Bills payables 749,481,260.43 503,401,182.16 Trade payables 1,736,554,400.81 1,757,615,905.90 Advanced receipts 757,143,845.24 1,050,093,691.53 18 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Contract liabilities Funds from selling and 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 197,499,593.18 342,082,828.52 Taxes payable 112,471,745.99 112,910,824.33 Other payables 147,534,751.17 127,834,661.60 Including: Interest payable 1,540,298.66 4,668,907.86 Dividend payable Fees and commission payable Due to reinsurers Liabilities classified as held-for-sale Non-current liabilities due within one year 50,000,000.00 20,000,000.00 Other current liabilities Total current liabilities 4,802,910,027.78 5,575,438,558.34 Non-current liabilities: Reserves for insurance contracts Long-term borrowings 45,000,000.00 Bonds payables Including: preferential shares perpetual notes Lease liabilities Long-term payables 6,195,238.00 4,454,762.00 Long-term staff remuneration payable Estimated liabilities 660,000.00 4,535,900.00 Deferred income 22,387,805.09 25,358,580.41 Deferred income tax liabilities 26,845,116.67 17,832,072.29 Other non-current liabilities Total non-current liabilities 56,088,159.76 97,181,314.70 Total liabilities 4,858,998,187.54 5,672,619,873.04 Owners' equity: Share capital 963,431,273.00 963,431,273.00 Other equity instruments 19 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Including: preferential shares perpetual notes Capital reserve 2,271,767,136.05 2,274,178,387.44 Less: Treasury stock Other comprehensive income 75,172,807.36 66,489,317.80 Special reserve Surplus reserve 27,209,080.61 27,209,080.61 General risk provisions Retained profits 1,701,549,987.11 1,614,776,633.66 Total owners' equity attributable to parent company 5,039,130,284.13 4,946,084,692.51 Minority shareholder's interest 88,357,886.34 77,601,643.62 Total owners' equity 5,127,488,170.47 5,023,686,336.13 Total liabilities and owners' equity 9,986,486,358.01 10,696,306,209.17 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 30 September 2019 31 December 2018 Current assets: Cash and bank balances 27,223,728.61 26,836,259.23 Trading financial assets 287,530,424.29 Financial assets at fair value through profit and loss 21,676,020.00 Derivative financial assets Bills receivable 12,562,754.56 Trade receivables 26,375,843.76 221,408,715.75 Receivables financing Prepayments 6,470,471.12 159,900.05 Other receivables 17,070,545.32 69,586,506.00 Including: Interest receivable Dividend receivable Inventories 84,107,321.73 21,467,571.28 Contract assets Assets classified as held-for-sale 20 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Non-current assets due within one year Other current assets 4,180,275.71 251,797,684.09 Total current assets 452,958,610.54 625,495,410.96 Non-current assets: Debt investments Available-for-sale financial assets 71,812,197.32 Other debt investments Held-to-maturity investments Long-term receivables 26,400,000.00 26,400,000.00 Long-term equity investments 2,757,388,815.25 2,754,581,026.60 Other investments in equity instruments 54,435,005.00 Other non-current financial assets Investment properties Fixed assets 167,537.73 222,927.86 Construction in progress Productive biological assets Oil & gas assets Right of use assets Intangible assets 111,749.00 305,084.00 Development expenses Goodwill Long-term deferred and prepaid expenses 221,821.31 295,761.75 Deferred income tax assets Other non-current assets Total non-current assets 2,838,724,928.29 2,853,616,997.53 Total assets 3,291,683,538.83 3,479,112,408.49 Current liabilities: Short-term borrowings 37,707,081.38 Trading financial liabilities Financial liabilities at fair value through profit and loss Derivative financial liabilities Bills payables 93,263,551.08 21,639,707.31 Trade payables 25,052,808.27 243,655,540.32 Advanced receipts 58,855,024.79 5,318,079.89 21 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Contract liabilities Staff remuneration payable 6,019,386.36 8,801,149.66 Taxes payable 166,050.93 330,117.23 Other payables 1,006,058.68 2,101,760.19 Including: Interest payable 57,600.00 Dividend payable Liabilities classified as held-for-sale Non-current liabilities due within one year Other current liabilities Total current liabilities 184,362,880.11 319,553,435.98 Non-current liabilities: Long-term borrowings Bonds payables Including: preferential shares perpetual notes Lease liabilities Long-term payables Long-term staff remuneration payable Estimated liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 184,362,880.11 319,553,435.98 Owners' equity: Share capital 963,431,273.00 963,431,273.00 Other equity instruments Including: preferential shares perpetual notes Capital reserve 2,099,414,949.00 2,099,414,949.00 Less: Treasury stock Other comprehensive income -17,377,192.32 Special reserve Surplus reserve 27,209,080.61 27,209,080.61 22 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Retained profits 34,642,548.43 69,503,669.90 Total owners' equity 3,107,320,658.72 3,159,558,972.51 Total liabilities and owners' equity 3,291,683,538.83 3,479,112,408.49 3. Consolidated income statement for the reporting period Unit: RMB Item Amount for the Amount for the current period previous period 1. Total operating revenue 2,104,043,896.30 2,010,354,029.70 Including: Operating revenue 2,104,043,896.30 2,010,354,029.70 Interest income Earned premium Fees and commission income 2. Total operating cost 2,062,601,013.83 1,956,684,311.78 Including: Operating cost 1,748,209,226.02 1,655,097,162.58 Interest expenses Fees and commission expenses Surrenders Net amount of compensation payout Net amount of reserves for insurance liabilities Policyholder dividends expenses Expenses for reinsurance accepted Taxes and surcharges 7,379,382.55 5,146,225.10 Selling expenses 117,823,865.81 144,600,046.47 Administrative expenses 70,517,304.41 86,501,387.63 Research and development expenses 96,895,928.75 45,594,224.14 Financial expenses 21,775,306.29 19,745,265.86 Including: Interest expenses 20,873,330.92 16,928,510.54 Interest income 1,045,387.43 2,104,823.83 Add: Other income 11,980,666.38 14,522,877.34 Investment income (loss indicated by "-") 29,607,909.64 2,276,668.06 Including: Investment income from associates and joint ventures 5,278,422.06 2,943,744.32 Gains on derecognition of financial assets measured at amortized cost Exchange gains (loss indicated by "-") 23 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Gains on net exposure hedging (loss indicated by "-") Gains from change in fair value (loss indicated by "-") 23,078,272.66 -1,737,460.00 Credit impairment loss (loss indicated by "-") -12,105,810.05 Asset impairment loss (loss indicated by "-") -20,411,495.35 -21,876,401.84 Gains from the disposal of assets (loss indicated by "-") 219.00 3. Operating profit (loss indicated by "-") 73,592,425.75 46,855,620.48 Add: Non-operating income 1,402,247.82 128,579.86 Less: Non-operating expenses 339,241.15 509,327.84 4. Total profit (total loss indicated by "-") 74,655,432.42 46,474,872.50 Less: Income tax expenses 18,878,402.88 241,124.77 5. Net profit (net loss indicated by "-") 55,777,029.54 46,233,747.73 (I) Analysed by continuity 1. Net profit from continuing operations (loss indicated by "-") 55,777,029.54 46,233,747.73 2. Net profit from discontinued operations (loss indicated by "-") (II) Analysed by ownership 1. Net profit attributable to owners of the parent company 61,170,421.26 45,863,808.07 2. Minority interests -5,393,391.72 369,939.66 6. Net amount of other comprehensive income after taxation 3,053,823.79 -2,069,608.68 Net amount of other comprehensive income after taxation attributable 3,053,823.79 -2,069,608.68 to owners of the parent company (I) Other comprehensive income which cannot be reclassified as profit 4,837,759.98 or loss 1. Changes in the re-measurement of defined benefit plans 2. Other comprehensive income under equity method which 212,730.98 cannot be recorded in profit and loss 3. Change in fair value of other investments in equity instruments 4,625,029.00 4. Change in fair value of inherent credit risks 5. Others (II) Other comprehensive income which will be reclassified as profit or -1,783,936.19 -2,069,608.68 loss 1. Other comprehensive income under equity method which will -55,657.01 89,524.96 be recorded in profit and loss 2. Change in fair value of other debt investments 3. Change in fair value of available-for-sale financial assets 4. Reclassification of financial assets included in other comprehensive income 24 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. 5. Gain or loss arising from reclassification of held-to-maturity investment as available-for-sale financial assets 6. Credit loss for other debt investments 7. Cash flow hedging reserve 8. Differences arising from foreign currency translation -1,728,279.18 -2,159,133.64 9. Others Net amount of other comprehensive income after taxation attributable to minority shareholders 7. Total comprehensive income 58,830,853.33 44,164,139.05 Total comprehensive income attributable to owners of the parent 64,224,245.05 43,794,199.39 company Total comprehensive income attributable to minority shareholders -5,393,391.72 369,939.66 8. Earnings per share: (I) Basic earnings per share 0.0635 0.0476 (II) Diluted earnings per share 0.0635 0.0476 Legal representative: Guo Wei Person-in-charge of accounting Head of accounting department: operations: Zhang Yunfei Zhang Xiuhui 4. Income statement of the parent company for the reporting period Unit: RMB Item Amount for the Amount for the reporting period previous period 1. Total operating revenue 101,555,520.09 249,078,191.85 Less: Operating cost 96,523,384.36 235,849,361.48 Taxes and surcharges 50,879.80 595,776.34 Selling expenses 236,403.56 462,479.88 Administrative expenses 7,227,171.01 5,793,865.77 Research and development expenses 253,863.96 Financial expenses 1,581,500.16 -1,325,128.17 Including: Interest expenses 1,524,629.79 482,053.61 Interest income 79,118.31 1,387,210.79 Add: Other income Investment income (loss indicated by "-") 4,495.75 -2,154,504.40 Including: Investment income from associates and joint ventures -7,123.56 -375,948.69 25 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. 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 indicated by "-") 24,914,189.57 -1,737,460.00 Credit impairment loss (loss indicated by "-") -265,216.65 Asset impairment loss (loss indicated by "-") -220,633.44 2,752,239.59 Gains from the disposal of assets (loss indicated by "-") 2. Operating profit (loss indicated by "-") 20,115,152.47 6,562,111.74 Add: Non-operating income Less: Non-operating expenses 771.17 2,501.16 3. Total profit (total loss indicated by "-") 20,114,381.30 6,559,610.58 Less: Income tax expenses 255,524.51 4. Net profit (net loss indicated by "-") 20,114,381.30 6,304,086.07 (1) Net profit from continuing operations (net loss indicated by "-") 20,114,381.30 6,304,086.07 (2) Net profit from discontinued operations (net loss indicated by "-") 5. Net amount of other comprehensive income after taxation (I) Other comprehensive income which 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 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. Change in fair value of available-for-sale financial assets 4. Reclassification of financial assets included in other comprehensive income 5. Gain or loss arising from reclassification of held-to-maturity investment as available-for-sale financial assets 6. Credit loss for other debt investments 26 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. 7. Cash flow hedging reserve 8. Differences arising from foreign currency translation 9. Others 6. Total comprehensive income 20,114,381.30 6,304,086.07 7. Earnings per share: (I) Basic earnings per share (II) Diluted earnings per share 5. Consolidated income statement for the period from the beginning of the year to the end of the reporting period Unit: RMB Item Amount for the Amount for the reporting period previous period 1. Total operating revenue 6,234,237,899.77 6,171,256,725.93 Including: Operating revenue 6,234,237,899.77 6,171,256,725.93 Interest income Earned premium Fees and commission income 2. Total operating cost 5,971,438,697.72 5,890,661,638.58 Including: Operating cost 5,094,226,821.93 5,028,434,942.10 Interest expenses Fees and commission expenses Surrenders Net amount of compensation payout Net amount of reserves for insurance liabilities Policyholder dividends expenses Expenses for reinsurance accepted Taxes and surcharges 24,292,165.25 26,555,584.77 Selling expenses 346,544,065.35 373,983,005.55 Administrative expenses 197,299,485.23 262,731,879.62 Research and development expenses 241,550,502.75 157,647,149.67 Financial expenses 67,525,657.21 41,309,076.87 Including: Interest expenses 66,087,340.45 55,456,449.33 Interest income 5,667,131.43 7,798,094.83 27 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Add: Other income 25,592,749.95 29,652,275.15 Investment income (loss indicated by "-") 61,265,349.16 173,992,996.53 Including: Investment income from associates and joint ventures 13,019,946.31 -4,549,530.14 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 indicated by "-") 16,166,950.12 78,559.50 Credit impairment loss (loss indicated by "-") -127,190,595.82 Asset impairment loss (loss indicated by "-") -40,367,422.32 -186,039,260.48 Gains from the disposal of assets (loss indicated by "-") 219.00 3. Operating profit (loss indicated by "-") 198,266,233.14 298,279,877.05 Add: Non-operating income 3,405,417.79 333,033.74 Less: Non-operating expenses 1,458,266.37 1,902,976.24 4. Total profit (total loss indicated by "-") 200,213,384.56 296,709,934.55 Less: Income tax expenses 17,819,544.80 2,532,463.81 5. Net profit (net loss indicated by "-") 182,393,839.76 294,177,470.74 (I) Analysed by continuity 1. Net profit from continuing operations (net loss indicated by "-") 182,393,839.76 134,058,516.47 2. Net profit from discontinued operations (net loss indicated by "-") 160,118,954.27 (II) Analysed by ownership 1. Net profit attributable to owners of the parent company 190,314,176.44 296,355,978.04 2. Minority interests -7,920,336.68 -2,178,507.30 6. Net amount of other comprehensive income after taxation 12,767,971.72 -2,250,741.71 Net amount of other comprehensive income after taxation attributable to 12,767,971.72 -2,250,741.71 owners of the parent company (I) Other comprehensive income which cannot be reclassified as profit or 17,336,290.26 loss 1. Changes in the re-measurement of defined benefit plans 2. Other comprehensive income under equity method which cannot be 265,256.42 recorded in profit and loss 3. Change in fair value of other investments in equity instruments 17,071,033.84 4. Change in fair value of inherent credit risks 5. Others 28 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. (II) Other comprehensive income which will be reclassified as profit or -4,568,318.54 -2,250,741.71 loss 1. Other comprehensive income under equity method which will be -2,715,055.36 -54,674.46 recorded in profit and loss 2. Change in fair value of other debt investments 3. Change in fair value of available-for-sale financial assets 4. Reclassification of financial assets included in other comprehensive income 5. Gain or loss arising from reclassification of held-to-maturity investment as available-for-sale financial assets 6. Credit loss for other debt investments 7. Cash flow hedging reserve 8. Differences arising from foreign currency translation -1,853,263.18 -2,196,067.25 9. Others Net amount of other comprehensive income after taxation attributable to minority shareholders 7. Total comprehensive income 195,161,811.48 291,926,729.03 Total comprehensive income attributable to owners of the parent company 203,082,148.16 294,105,236.33 Total comprehensive income attributable to minority shareholders -7,920,336.68 -2,178,507.30 8. Earnings per share: (I) Basic earnings per share 0.1975 0.3076 (II) Diluted earnings per share 0.1975 0.3076 Legal representative: Guo Wei Person-in-charge of accounting Head of accounting department: operations: Zhang Yunfei Zhang Xiuhui 6. Income statement of the parent company for the period from the beginning of the year to the end of the reporting period Unit: RMB Item Amount for the Amount for the reporting period previous period 1. Total operating revenue 125,939,034.98 728,754,281.34 Less: Operating cost 119,350,531.27 685,333,556.84 Taxes and surcharges 500,154.01 852,923.34 Selling expenses 556,301.15 726,218.99 Administrative expenses 20,033,224.97 17,562,906.78 29 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Research and development expenses 732,992.61 Financial expenses 1,377,092.47 -2,602,494.06 Including: Interest expenses 1,797,131.72 1,522,293.60 Interest income 238,412.66 -3,647,076.30 Add: Other income 260,000.00 Investment income (loss indicated by "-") 227,142.76 -854,827.80 Including: Investment income from associates and joint ventures -192,211.35 -3,000,767.31 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 indicated by "-") 15,854,404.29 78,559.50 Credit impairment loss (loss indicated by "-") -2,068,856.27 Asset impairment loss (loss indicated by "-") -377,316.78 -4,542,459.75 Gains from the disposal of assets (loss indicated by "-") 2. Operating profit (loss indicated by "-") -2,715,887.50 21,562,441.40 Add: Non-operating income 51.77 919.90 Less: Non-operating expenses 2,737.10 7,203.93 3. Total profit (total loss indicated by "-") -2,718,572.83 21,556,157.37 Less: Income tax expenses 1,759,810.96 4. Net profit (net loss indicated by "-") -2,718,572.83 19,796,346.41 (1) Net profit from continuing operations (net loss indicated by "-") -2,718,572.83 19,796,346.41 (2) Net profit from discontinued operations (net loss indicated by "-") 5. Net amount of other comprehensive income after taxation (I) Other comprehensive income which 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 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 30 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. 3. Change in fair value of available-for-sale financial assets 4. Reclassification of financial assets included in other comprehensive income 5. Gain or loss arising from reclassification of held-to-maturity investment as available-for-sale financial assets 6. Credit loss for other debt investments 7. Cash flow hedging reserve 8. Differences arising from foreign currency translation 9. Others 6. Total comprehensive income -2,718,572.83 19,796,346.41 7. Earnings per share: (I) Basic earnings per share (II) Diluted earnings per share 7. Consolidated cash flow statement for the period from the beginning of the year to the end of the reporting period Unit: RMB Item Amount for the Amount for the reporting period previous period 1. Cash flow from operating activities: Cash received from sales of goods and rendering of services 6,259,926,355.18 6,193,325,733.16 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 placements from banks and other financial institutions Net increase in repurchase business capital Net cash received for customer brokerage deposits Tax rebates received 6,544,034.43 9,563,818.92 Other cash received in connection with operating activities 77,151,669.46 46,218,678.47 Sub-total of cash inflow from operating activities 6,343,622,059.07 6,249,108,230.55 31 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Cash paid for purchase of goods and rendering of services 5,048,315,240.17 4,994,218,105.03 Net increase in customer loans and advances Net increase in deposits with central bank and other financial institutions Cash paid for original insurance contract claims Net increase in loans to banks and other financial institutions Interest, fees and commissions paid Cash paid for policyholder dividend Cash paid to and for employees 1,227,899,014.19 1,136,016,727.77 Taxes paid 253,539,557.30 388,348,017.00 Other cash paid in connection with operating activities 428,733,642.23 451,192,657.39 Sub-total of cash outflow from operating activities 6,958,487,453.89 6,969,775,507.19 Net cash flow from operating activities -614,865,394.82 -720,667,276.64 2. Cash flow from investing activities: Cash received from disposal of investments 31,378,781.39 5,582.00 Cash received on obtaining investment income 45,365,159.30 31,371,431.48 Net cash received from disposal of fixed assets, intangible assets 1,813,171.84 1,097,275.56 and other long-term assets Net cash received from disposal of subsidiaries and other business units 53,825,639.71 Other cash received in connection with investing activities 9,749,680,000.00 7,361,304,115.37 Sub-total of cash inflow from investing activities 9,828,237,112.53 7,447,604,044.12 Cash paid for purchase and construction of fixed assets, intangible 34,115,100.92 27,867,662.40 assets and other long-term assets Cash paid for acquisition of investments 49,571,677.20 24,852,860.94 Net increase in pledge loans Net cash paid for acquisition of subsidiaries and other business units Other cash paid in connection with investing activities 9,270,392,450.00 7,718,002,018.00 Sub-total of cash outflow from investing activities 9,354,079,228.12 7,770,722,541.34 Net cash flow from investing activities 474,157,884.41 -323,118,497.22 3. Cash flow from financing activities: Cash received from investments 18,302,500.00 1,000,000.00 Including: Cash received from investments in a subsidiary by 18,302,500.00 1,000,000.00 minority shareholders Cash received on drawdown of loans 719,729,007.35 1,007,337,915.41 Other cash received in connection with financing activities 1,740,476.00 9,254,762.00 32 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Sub-total of cash inflow from financing activities 739,771,983.35 1,017,592,677.41 Cash paid for repayment of borrowings 1,349,170,040.69 1,191,733,410.49 Cash paid for dividend or profit distribution or interest payment 102,955,478.47 87,136,412.56 Including: Dividend and profit paid to minority shareholders by a subsidiary Other cash paid in connection with financing activities 2,137,645.99 2,773,534.72 Sub-total of cash outflow from financing activities 1,454,263,165.15 1,281,643,357.77 Net cash flows from financing activities -714,491,181.80 -264,050,680.36 4. Effect on cash and cash equivalents due to change in foreign -152,946.14 -756,954.20 currency exchange rate 5. Net increase in cash and cash equivalents -855,351,638.35 -1,308,593,408.42 Add: Balance of cash and cash equivalents at the beginning of the period 1,483,675,206.37 1,776,372,815.17 6. Balance of cash and cash equivalents at the end of the period 628,323,568.02 467,779,406.75 8. Cash flow statement of the parent company for the period from the beginning of the year to the end of the reporting period Unit: RMB Item Amount for the Amount for the reporting period previous period 1. Cash flow from operating activities: Cash received from sales of goods and rendering of services 411,341,328.97 702,400,304.85 Tax rebates received 2,926,203.62 Other cash received in connection with operating activities 184,951,826.71 176,736,695.23 Sub-total of cash inflow from operating activities 596,293,155.68 882,063,203.70 Cash paid for purchase of goods and rendering of services 360,545,480.12 665,510,992.78 Cash paid to and for employees 16,680,203.25 15,926,680.46 Taxes paid 4,889,006.90 2,963,637.24 Other cash paid in connection with operating activities 138,084,990.01 42,046,150.67 Sub-total of cash outflow from operating activities 520,199,680.28 726,447,461.15 Net cash flow from operating activities 76,093,475.40 155,615,742.55 2. Cash flow from investing activities: Cash received from disposal of investments 12,450.00 5,582.00 Cash received on obtaining investment income 419,354.11 4,785,702.72 Net cash received from disposal of fixed assets, intangible assets and 900.14 2,160.00 other long-term assets Net cash received from disposal of subsidiaries and other business units 33 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Other cash received in connection with investing activities 2,536,803,019.00 Sub-total of cash inflow from investing activities 432,704.25 2,541,596,463.72 Cash paid for purchase and construction of fixed assets, intangible assets 30,054.79 and other long-term assets Cash paid for acquisition of investments 3,012,450.00 26,352,860.94 Net cash paid for acquisition of subsidiaries and other business units Other cash paid in connection with investing activities 2,859,121,618.00 Sub-total of cash outflow from investing activities 3,012,450.00 2,885,504,533.73 Net cash flow from investing activities -2,579,745.75 -343,908,070.01 3. Cash flow from financing activities: Cash received from investments Cash received on drawdown of loans 37,707,081.38 Other cash received in connection with financing activities Sub-total of cash inflow from financing activities 37,707,081.38 Cash paid for repayment of borrowings 37,707,081.38 39,500,000.00 Cash paid for dividend or profit distribution or interest payment 35,574,826.27 32,354,233.80 Other cash paid in connection with financing activities 78,673.20 Sub-total of cash outflow from financing activities 73,360,580.85 71,854,233.80 Net cash flows from financing activities -73,360,580.85 -34,147,152.42 4. Effect on cash and cash equivalents due to change in foreign currency exchange rate 5. Net increase in cash and cash equivalents 153,148.80 -222,439,479.88 Add: Balance of cash and cash equivalents at the beginning of the period 44,612.15 250,396,554.93 6. Balance of cash and cash equivalents at the end of the period 197,760.95 27,957,075.05 II. Adjustments to the financial statements 1. Details of adjustments to relevant items in the financial statements in relation to the adoption of the new ASBEs on financial instruments, new ASBEs on revenue or new ASBEs on leases as at the beginning of the year of adoption since 2019 √ Applicable □ N/A Consolidated balance sheet Unit: RMB Item 31 December 2018 01 January 2019 Adjustments Current assets: Cash and bank balances 1,518,050,558.45 1,518,050,558.45 34 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Balances with clearing companies Loans to banks and other financial institutions Trading financial assets 1,121,676,020.00 1,121,676,020.00 Financial assets at fair value through profit and loss 21,676,020.00 -21,676,020.00 Derivative financial assets Bills receivable 20,024,810.58 20,024,810.58 Trade receivables 3,006,436,880.14 2,944,412,778.10 -62,024,102.04 Receivables financing Prepayments 115,911,248.60 115,911,248.60 Premium receivable Receivables from reinsurers Reinsurance contract reserves receivable Other receivables 152,877,183.82 137,058,969.88 -15,818,213.94 Including: Interest receivable Dividend receivable Purchase of repo financial assets Inventories 1,726,098,649.25 1,726,098,649.25 Contract assets Assets classified as held-for-sale Non-current assets due within one year Other current assets 1,122,833,926.47 22,833,926.47 -1,100,000,000.00 Total current assets 7,683,909,277.31 7,606,066,961.33 -77,842,315.98 Non-current assets: Disbursement of loans and advances Debt investments Available-for-sale financial assets 110,334,697.32 -110,334,697.32 Other debt investments Held-to-maturity investments Long-term receivables Long-term equity investments 509,384,368.44 509,384,368.44 Other investments in equity instruments 116,371,464.16 116,371,464.16 Other non-current financial assets Investment properties 14,373,078.37 14,373,078.37 Fixed assets 532,791,372.68 532,791,372.68 35 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Construction in progress Productive biological assets Oil & gas assets Right of use assets Intangible assets 152,873,405.70 152,873,405.70 Development expenses 17,733,832.82 17,733,832.82 Goodwill 1,544,132,544.03 1,544,132,544.03 Long-term deferred and prepaid expenses 23,532,165.55 23,532,165.55 Deferred income tax assets 107,241,466.95 115,902,389.10 8,660,922.15 Other non-current assets Total non-current assets 3,012,396,931.86 3,027,094,620.85 14,697,688.99 Total assets 10,696,306,209.17 10,633,161,582.18 -63,144,626.99 Current liabilities: Short-term borrowings 1,661,499,464.30 1,661,499,464.30 Borrowings from central bank Placements from banks and other financial institutions Trading financial liabilities Financial liabilities at fair value through profit and loss Derivative financial liabilities Bills payables 503,401,182.16 503,401,182.16 Trade payables 1,757,615,905.90 1,757,615,905.90 Advanced receipts 1,050,093,691.53 1,050,093,691.53 Contract liabilities Funds from selling and 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 342,082,828.52 342,082,828.52 Taxes payable 112,910,824.33 112,910,824.33 Other payables 127,834,661.60 127,834,661.60 Including: Interest payable 4,668,907.86 4,668,907.86 Dividend payable Fees and commission payable 36 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Due to reinsurers Liabilities classified as held-for-sale Non-current liabilities due within one year 20,000,000.00 20,000,000.00 Other current liabilities Total current liabilities 5,575,438,558.34 5,575,438,558.34 Non-current liabilities: Reserves for insurance contracts Long-term borrowings 45,000,000.00 45,000,000.00 Bonds payables Including: preferential shares perpetual notes Lease liabilities Long-term payables 4,454,762.00 4,454,762.00 Long-term staff remuneration payable Estimated liabilities 4,535,900.00 4,535,900.00 Deferred income 25,358,580.41 25,358,580.41 Deferred income tax liabilities 17,832,072.29 27,953,321.29 10,121,249.00 Other non-current liabilities Total non-current liabilities 97,181,314.70 107,302,563.70 10,121,249.00 Total liabilities 5,672,619,873.04 5,682,741,122.04 10,121,249.00 Owners' equity: Share capital 963,431,273.00 963,431,273.00 Other equity instruments Including: preferential shares perpetual notes Capital reserve 2,274,178,387.44 2,274,178,387.44 Less: Treasury stock Other comprehensive income 66,489,317.80 62,404,835.64 -4,084,482.16 Special reserve Surplus reserve 27,209,080.61 27,209,080.61 General risk provisions Retained profits 1,614,776,633.66 1,545,221,160.43 -69,555,473.23 Total owners' equity attributable to parent company 4,946,084,692.51 4,872,444,737.12 -73,639,955.39 Minority shareholder's interest 77,601,643.62 77,975,723.02 374,079.40 37 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Total owners' equity 5,023,686,336.13 4,950,420,460.14 -73,265,875.99 Total liabilities and owners' equity 10,696,306,209.17 10,633,161,582.18 -63,144,626.99 Details of adjustments Balance sheet of the parent company Unit: RMB Item 31 December 2018 01 January 2019 Adjustments Current assets: Cash and bank balances 26,836,259.23 26,836,259.23 Trading financial assets 271,676,020.00 271,676,020.00 Financial assets at fair value through profit and loss 21,676,020.00 -21,676,020.00 Derivative financial assets Bills receivable 12,562,754.56 12,562,754.56 Trade receivables 221,408,715.75 222,986,754.57 1,578,038.82 Receivables financing Prepayments 159,900.05 159,900.05 Other receivables 69,586,506.00 69,586,011.88 -494.12 Including: Interest receivable Dividend receivable Inventories 21,467,571.28 21,467,571.28 Contract assets Assets classified as held-for-sale Non-current assets due within one year Other current assets 251,797,684.09 1,797,684.09 -250,000,000.00 Total current assets 625,495,410.96 627,072,955.66 1,577,544.70 Non-current assets: Debt investments Available-for-sale financial assets 71,812,197.32 Other debt investments Held-to-maturity investments Long-term receivables 26,400,000.00 26,400,000.00 Long-term equity investments 2,754,581,026.60 2,754,581,026.60 Other investments in equity instruments 37,363,971.16 37,363,971.16 Other non-current financial assets Investment properties 38 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Fixed assets 222,927.86 222,927.86 Construction in progress Productive biological assets Oil & gas assets Right of use assets Intangible assets 305,084.00 305,084.00 Development expenses Goodwill Long-term deferred and prepaid expenses 295,761.75 295,761.75 Deferred income tax assets Other non-current assets Total non-current assets 2,853,616,997.53 2,819,168,771.37 -34,448,226.16 Total assets 3,479,112,408.49 3,446,241,727.03 -32,870,681.46 Current liabilities: Short-term borrowings 37,707,081.38 37,707,081.38 Trading financial liabilities Financial liabilities at fair value through profit and loss Derivative financial liabilities Bills payables 21,639,707.31 21,639,707.31 Trade payables 243,655,540.32 243,655,540.32 Advanced receipts 5,318,079.89 5,318,079.89 Contract liabilities Staff remuneration payable 8,801,149.66 8,801,149.66 Taxes payable 330,117.23 330,117.23 Other payables 2,101,760.19 2,101,760.19 Including: Interest payable 57,600.00 57,600.00 Dividend payable Liabilities classified as held-for-sale Non-current liabilities due within one year Other current liabilities Total current liabilities 319,553,435.98 319,553,435.98 Non-current liabilities: Long-term borrowings Bonds payables 39 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. Including: preferential shares perpetual notes Lease liabilities Long-term payables Long-term staff remuneration payable Estimated liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 319,553,435.98 319,553,435.98 Owners' equity: Share capital 963,431,273.00 963,431,273.00 Other equity instruments Including: preferential shares perpetual notes Capital reserve 2,099,414,949.00 2,099,414,949.00 Less: Treasury stock Other comprehensive income -34,448,226.16 -34,448,226.16 Special reserve Surplus reserve 27,209,080.61 27,209,080.61 Retained profits 69,503,669.90 71,081,214.60 1,577,544.70 Total owners' equity 3,159,558,972.51 3,126,688,291.05 -32,870,681.46 Total liabilities and owners' equity 3,479,112,408.49 3,446,241,727.03 -32,870,681.46 Details of adjustments The Ministry of Finance promulgated the revised "Accounting Standards for Business Enterprises No. 22 -Recognition and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 -Transfer of Financial Assets" and "Accounting Standards for Business Enterprises No. 24 -Hedge Accounting" on 31 March 2017 and promulgated the revised "Accounting Standards for Business Enterprises No. 37 -Presentation of Financial Instruments" on 2 May (collectively the "New Standards on Financial Instruments"). Domestic listed companies shall implement the New Standards on Financial Instruments from 1 January 2019. The Group implemented the New Standards on Financial Instruments from 1 January 2019. According to the requirements of the convergence regulations, no retrospective adjustments will be made to the comparative statements for the last corresponding year and adjustments will only be made to the undistributed profit or other comprehensive income at the beginning of the reporting period. 40 Full text of the 2019 Third Quarterly Report of Digital China Information Service Company Ltd. 2. Statement on adjustments to comparative figures for previous periods in relation the adoption of the new ASBEs on financial instruments or new ASBEs on leases since 2019 Applicable √ N/A III. Audit Report Whether the third quarterly report is audited Yes √ No The third quarterly report of the Company is unaudited. Digital China Information Service Company Ltd. Chairman: Guo Wei 21 October 2019 41

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