FY2020 Annual Results

March, 2021

Digital China Holdings Limited (00861.HK)

DisclaimerThis presentation may contain certain projection and forward looking statements that involve risks, uncertainties andassumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of DigitalChina Holdings may differ materially from those expressed or implied by such forward looking statements andassumptions. All statements other than statements of historical fact are statements that could be deemed forwardlooking statement, including but not limited to any projections of revenue, margins, expenses, charges, earnings orother financial items; any statements of the plans, strategies, and objectives of management for future operations,including execution of any restructuring plans; any statements concerning the expected development, performanceor market share relating to products or services; any statements of expectation or belief; and any statements ofassumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic andgeopolitical trends and events; execution and performance of contracts by suppliers, customers and partners;employee management issues; the challenge of managing asset levels, including inventory; the difficulty of aligningexpense levels with revenue changes; expectations and assumptions relating to the execution and timing of workforcerestructuring programs. In addition, statistical and other information relating to the PRC and the technology industrycontained in this presentation have been compiled from various publicly available official or unofficial sourcesgenerally believed to be reliable. However, the quality of such source materials cannot be guaranteed. Moreover,statistics derived from multiple sources may not be prepared on a comparable basis.

1/23

150

302

613

FY2018 FY2019 FY2020

in MillionsHK$

15,254

17,727

19,820

2,909 3,155 3,359

FY2018 FY2019 FY2020Revenue Gross Profit

Revenue & Gross Profit –FY2018 to FY2020

+11.8% +103.1%

FY2020 Revenue Performance as Group

in MillionsHK$

Net profit Attribute to Equity Holders of the Parent

2/23

Revenue(HK$ billion)

Net profit(1)

(HK$ billion)

Operating Cash Flow

(HK$ billion)

Big Data Revenue(HK$ billion)

Dividend per Share(2)

(cents HK$)Registered

Intellectual Patents

19.82 0.61 0.23

1.13 13.6 cents HK$ 1,846

+11.8% +103.1% +124.5%

+14.5% +112.5% +16.1%

FY2020 – Performance Indicators

(1) Attributable to equity holders of the parent(2) Includes interim dividend of HK$3.6 cents 3/23

Content

1. FY20 Business Overview

FY20 Results Highlights2.

3. FY21 Business Outlook

4/23

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FY20 Business Overview

Vision & Big Data StrategyCity Big Data Usage Model | Industry Big Data Model

Fintech Model | Incubation Model

5/23

Big Data

Mission: Empower the digital

development of cities and

industries by leveraging our

independent innovation

capabilities and providing our

customers with a full range of big

data software, solutions and

services

Vision: Digitalizing China

Technologically Advanced & Leading Big Data Group

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10011

Industry Big Data Model

Fintech Model

City Big Data Usage Model

Incubation Model

6/23

Smart City – Service Cloud Platform

Telecommunications（Internet、4G、5G）

Applications for Cities

Bureau of Agriculture

Bureau of Information

Bureau of Commerce

Social Security

Tax IoT

Applications for Government

Enterprises Internet Social Media

Application

Digital Twin Supply Chain Brain

Middle Layer Base Layer

Open Data SharingData Intelligence

Data SecurityData ManagementData Infrastructure

City Model Display EngineData Space AnalysisFull City Data ModelData Spatialization

Data Model Conversion

Hub

Sysnet

YanCloudDaaS-PremiumYanCloudDaaS-BasicYanCloudDaaS-Lite

Ecosystem co-operation

Platform & Core Technology

Usage Models

Partners

City Brain

“Yan Cloud DaaS” allows data to traverse seamlessly across different databases and systems in

cities and ecosystems. It allows us to play a “City CTO” role to progress on digitalization for cities

to connect cities, enterprises and its civilians, and also allows set up of data centers without barriers

to build a solid digital infrastructure for our future digital twin and city brain applications.

City Big Data Usage Model Strategy

7/23

Jilin

Tangshan

Fujian

Xuzhou\Suzhou

Spear-headed new alliance amongst enterprises and the Jilingovernment with the aim to drive further innovation of new industryecosystems and develop new software solutions; the alliance expectsto utilize synergies amongst themselves and create a billion-dollardata business.

Engaged as main operator for project “Smart Tangshan” and actedas “City CTO”; create support for the infrastructure of smart city inorder to improve the city management and social welfare functionand promote industrial innovation.

>10 years of experience accumulation

>10 industry standards set

>10 engagement with central government

>200 cities covered

>500 IPs

>2,000 executed projects

>10,000 isolated databases managed

… …

Build up multiple intelligent anti-epidemic platforms through “YanCloud DaaS”, and support Beijing, Wuhan, Tianjin, Changchun,Tangshan, Weihai, Xuzhou, Longyan, Sanming and more throughoutthe battle of COVID-19 pandemic in result of resumption of work andproduction.

Support Wujiang District Suzhou City to set up the big data platformand data security system for data integration, management andservices.

City CTO – success cases

Smart application & Data analysis

Proven“City CTO”- Deep Engagement Approach

8/23

R&D/Design

PDM

SCM

Developer Platform

Budgeting

ERP

MRP

ASP

Device Access Layer

Procurement

Asset Mgt

Labor Mgt

Supplier Mgt

Production Process MES

Integrated Automation

Sales

Portal

Customer Complaints

CRM

Robot Control System

Warehouse/Fulfilment

OWTB

Capacity Mgt

Financial Mgt

WES

Machines

Signing

Turnover Mgt

E-signature

DMS

IoT

Full Product Lifecycle

Application Layer

System Layer

Cross-Border

Overseas Warehouse Mgt

Device Layer

Logistics

Warehouse

Financing

Import/Export

E-commerce

Software for the full product lifecycle - continuously refine our flagship big data and create a technological edge

One Stop Supply Chain Services – increasing share of wallet with existing whilst acquiring new clients

Key：Green：Self-ownedGrey：Third Party

Top 1 FMCG、Food

Top 3 Parent goods、

Cosmetics、Fashion

Top Industry Players

Communications、3C-Electronics

Trending BrandsExisting New

SoftwareUpgrades

Core products OMS、WMS、TMS、BMS、

Asset management、supply chain management

for 3 new systems, “KingKoo Manager”online

migration

One Stop Services across the Product Lifecycle

Ecosystempartner

Smart services based on“KingKoo Data”big data

platform, “Man-Machine”A.I. enabled robotic solutions,

IoT products

9/23

Providing intelligent data services to reduce warehouse costs

Providing intelligent data services to optimize purchasing and selling for e-commerce

Provide data services for various clients upstream and downstream of the industry value chain

Rich data pool through “supply chain brain” usage model

Signed contracts for Sany

Heavy Industry’s Internet

Platform; Shell’s refined

oil digital platform; Kuntai

and XGIMI for full supply

chain management

Operator certified with the “5A” logistics enterprise qualification

Industry Big Data Capabilities

Algo-rithims

Data Applications

Big Data Product Suite

Data Collection Across the Value Chain based on Real Operational Scenarios

10/23

Revenue/Capita HK$2m 54%

Profit/Capita HK$63k 153%

UPH Metric 8.8%

Output per storage area 5.2%

New record for “Double-11”:

1 warehouse over 4.5m orders;

3 warehouses over 3m orders;

2 warehouses over 2m orders;

5 warehouses over 1m orders.

Total costs 21%

Warehouse cost 14%

Delivery costs 38%

Labor cost 7%

Packaging costs 3%

Operating Cost

Technology empowerment continues to improve efficiencies and open new development prospects

Technology-driven Supply Chain Efficiencies

Production efficiency

11/23

Fintech Model has been deeply engaged in cross-industry integration, covering more than 1000 banks in total

Won numerous accolades including IDC's 2020 Global Financial Technology Awards coming 39th in the FinTech Rankings Top 100 List

and ranked 1st among China's listed companies.

The distributed application platform and core banking system ranked 1st in market share for 8 consecutive years

场景金融

Innovation is a key part of overall fintech strategy. In 2020, we won bids for innovative infrastructure design or innovative software projects of a large state-owned bank, a policy bank, various joint-stock banks, and a number of top city commercial banks.

Technology-driven fintech products and solutions are growing steadily

Self-innovatedDistributed application platform and core business system won bids for 15 customers; a series of new products such as data governance and control, intelligent service platforms, and modeling platforms have been released to help financial institutions improve their data application capabilities

Built "bank-agricultural" data platform for dozens of banks; signed contracts covering 21 provinces and cities, and 300 districts and counties; “bank+tax” platform has connected with >100 banks and financial institutions across 8 provinces under the Central Government; first to release blockchain platform “Sm@rtGAS” and digital wallet solutions

Fintech Model

Financial Usage Model

Financial Innovation

“Data+Technology+Usage”: innovative way to build a fintech ecosystem

Capitalizing early on fintech applications and usage models

12/23

Investing and incubating companies around the core strategy of DC Holdings with an aim to refine our core products, services and capabilities

2. Re-deployment of proceeds back into our core business

1. Expansion in our core segments

- Industrial IoT - - Smart Medical - - Technology Real Estate -

iSESOL not only complements the big data business of DC Holdings, but also integrates with the supply chain solutions, enriches upstream and downstream of the supply chain, expands the scope of big data services and improves overall service offering. And also was selected by the city government as an illustration case for public.

During the reporting period, thesmart medical in the incubationmodel had generated a investmentincome before tax of HK$338M.DC Holdings retained substantialshares in the sectors after thedisposal.

We will build a smartproperty big data integratedmanagement platform toincubate smart propertymanagement businesses. Atthe same time, we will alsoutilize the smart propertymanagement sector as anentry point for our “DigitalTwin” products

Incubation Model

13/23

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FY2020 Results Overview

Performance Summary | Segment Performance

14/23

75

130

FY2019 FY2020

327

477

FY2019 FY2020

11

29

FY2019 FY2020

Growth was mainly derived from the deep engagement approach applied to various cities and scenarios, together with our

proprietary technology“Yan Cloud DaaS”as the core component behind such applications

+73.4%+46.0%

in MillionsHK$

Gross ProfitRevenue Segment Results

+149.4%

City Big Data Usage Model (Sm@rt City Business)

15/23

5,382

7,411

FY2019 FY2020

690

875

FY2019 FY2020

106

200

FY2019 FY2020

Despite COVID-19 impact, growth was mainly driven by 1) increased market share and 2) improvement on operational

efficiency. We broke an industry record of 4.5 million total single warehouse deliveries during “Double-11”, and have also

expanded our coverage to education, medical and automobile sectors

+26.8% +88.9%

Gross ProfitRevenue Segment Results

Industry Big Data Model (Smart Industry Chain Business)

in MillionsHK$

+37.7%

16/23

Improvements to key technology capabilities of fintech

such as big data, A.I. and blockchain drove profit margins

Fintech Model (DCITS) & Incubation Model (Investing Business)

221

397

FY2019 FY2020

301

615

FY2019 FY2020

Fintech ModelSegment Results

Incubation ModelSegment Results

+104.0% +79.7%

During the reporting period, investment in the healthcare

big data sector generated healthy returns, and the real

estate technology business also developed rapidly

in MillionsHK$

17/23

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FY2021 Business Outlook

Market Potential | Growth Strategy

18/23

Source：1) White paper on Digital Twin Application in 2020, Ministry of Industry and Information Technology；2) Qianzhan Industry Institute ； 3）CCIDWISE; 4) Bloomberg; 5) PWC; 6) Businesswire; 7) Company information

Proprietary technology “Yan Cloud DaaS”

Capacity to integrate ecosystem resources, >30,000

enterprises upstream and downstream of the

industry value chain

Over 10 years experience in smart city, 20 years in

smart industry chain and more than 30 years of

industry accumulation in industry information

technology

Market Size

Big data industry: HK$2 trillion in 2022

Smart City: HK$20 trillion in 2025

Smart Industry Chain: HK$300 billion in 2025

Growth Potential

Growth rate of big data industry, smart city and smart

industry chain are 27%, 21% and 11% respectively.

DC Holdings’ relevant big data, smart city and smart

industry chain growth saw 125%, 46% and 38%, far

outpacing that of the market

Core strengths

Development Opportunities

Technology leadership means corporate leadership

in the digital era

The first year of China’s 14th Five-Year Plan

represents benefits from the new national

infrastructure policies. Opportunities in big data,

smart city, smart industry chain and other industrial

opportunities are unprecedented

Growth Momentum under Big Data Strategy

19/23

Investing in a new business ecosystem

Build a comprehensive management platformfor smart property big data and nurture smartproperty management business models.Using intelligent property management usagemodel as the digital twin product entry point,expand to the entire city ecosystem and developthe city’s digital twin.

Help cities build city data hubsand data centers, open up citydigital ecosystem networks, andrapidly promote the constructionof new smart cities with “citybrain” and digital twin products asour core

City Brain & Digital Twin

Drive rapid growth in proprietary andinnovative applications and cloud-based digitalinfrastructure businesses.Promote “bank-tax” and direct bank-agriculture connectivity, with big datacapabilities.Create innovative applications of blockchain indigital wallets, supply chain finance and otherusage models.

Scenarios Finance & Innovative Applications of IT

Supply chain software products & supply chain one-stop service

Establishing the largest warehousingservice ecosystem network in China.Creating a supply chain data center;tapping into FMCG, consumer andbeauty sectors.Laying out a global e-commerceplatform and actively promoting cross-border trade.

FY2021 Growth Strategies

20/23

{HK$ 000) 2020 2019 Change in %

Fintech Model (DCITS) 11,456,629 11,505,579 -0.43%

Industry Big Data Model (Smart Industry Chain Business) 7,411,268 5,382,311 37.7%

City Big Data Usage Model (Sm@rt City Business) 477,096 326,693 46.04%

Other 702,995 634,484 10.80%

Eliminations (228,461) (121,638) N/A

Total revenue 19,819,527 17,727,429 11.80%

Fintech Model (DCITS) 2,059,221 2,101,791 -2.03%

Industry Big Data Model (Smart Industry Chain Business) 875,016 689,845 26.84%

City Big Data Usage Model (Sm@rt City Business) 129,509 74,689 73.40%

Other 295,090 288,458 2.30%

Total gross profit 3,358,836 3,154,783 6.47%

Gross margin 16.95% 17.80% -0.85%

Profit for the year attributable to equity holders of the parent 612,970 301,844 103.08%

Appendix: FY2020 Financial Summary

21/23

Appendix: Major events for 2020IT Logistics, a subsidiary of Digital China Holdings, launched

two new strategic products Supply Chain + Big Data + AIoT -

Logistics Tracker and Electronic Signing Cloud Platform

under Jieyun Express Signing, and launched the eco-

partnership program was launched.

Digital China Holdings announcedthe launch of the Eco-Alliance tobattle against the COVID-19pandemic, joining with eco-partners to send various materialsto the frontline.

DCITS, a subsidiary of Digital China Holdings, developed a digital wallet system and participated in the testing of DCEP of major national banks.

Digital China Holdings establishedthe Jilin Province IT ApplicationInnovation Industry Alliance. Digital China Holdings won the tender for the

first phase of the Smart Tangshan construction

and operation project, with a project value of

RMB 83.4 million.

DCITS, a subsidiary of Digital China Holdings, entered the Beijing Economic Development Zone.

Digital China Holdings 19th

anniversary of listing

IT Logistics, signed a Memorandum of Understanding on StrategicCooperation with LINE CLEAR, a Malaysian logistics company, tostrengthen its ecosystem capabilities and further improve itsinternational business footprint.

A subsidiary of Digital

China Holdings signed an

Agreement on Strategic

Cooperation with the Yanji

Municipal Government to

cooperate in the digital

industrialization of Yanji

and the construction of an

digital ecosystem, helping

Yanji to build a digital

economy industrial

plateau.

Digital China Holdings won thetender for Jilin Province's foreigntrade comprehensive serviceplatform construction project,developing Jilin's billion-dollarimport and export business.

InternetWare, a subsidiary of DC Holdingsengaged in the smart city business, receivedRMB700 million funding commitment(equivalent of HK$830 million) during its SeriesB funding round, achieving a post-moneyvaluation of RMB6.2 billion

Digital China Holdings and Tianjin University have setup a joint laboratory to conduct in-depth research onTrusted Computing + Blockchain in smart city,industrial internet and smart supply chain.

TECH Digital China 2020 Technology Conference: Digital China Holdings' big data strategy is upgraded again

IT Logistics, has achieved a record-breaking performance with 4.5 million shipments from a single warehouse in Double-11

01.07 04.07

07.06

07.28

11.25

01.26 01

06.01

09.08 09.15 10 11

04.30

05.08

22/23

2019-2020 Big Data Industry Innovation Top 100 Ranked 1st in the 2020 Digital Infrastructure Top 100

2019-2020 Big Data Outstanding Application Solution Award

2020 Best Service Provider for Big Data Infrastructure

National 5A Level Logistics Enterprise Ranked 4th in 2020 Technology Company Top 100

Ranked 7th in 2020 Innovative Applications of Information Technology Top 500

2020 Excellent Cases of Big Data, Cloud Services, and Block Chain Innovation Applications

2020 New Infrastructure Leading Enterprise 2020 Excellent Case of Digital Anti-Epidemic

Outstanding Listed Company Award Ranked 50th in 2020 China Leading Fintech

2020 Outstanding Enterprise in the Big Data Field of China's Software and Information Service

Industry

2020 Corporate Social Responsibility Model Award 2020 Most Investment Value Award

8th Hong Kong Stocks Best Investment Value Award

2019 Golden Hong Kong Stock-Best New Economy Stock Company Award

Appendix: Industry and Market Recognition in 2020

23/23

Thank You