Digital China : Appointment of Additional Chief Executive Officer

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.

The Board is pleased to announce that with effect from 1 May 2017, Mr. Denis Shing Fai YIP will be appointed as a Chief Executive Officer of the Company, while Mr. LIN Yang, an executive Director, will remain as the other Chief Executive Officer of the Company.

The board (the "Board") of directors (the "Directors", and each a "Director") of Digital China Holdings Limited (the "Company", and together with its subsidiaries, the "Group") is pleased to announce that with effect from 1 May 2017, Mr. Denis Shing Fai YIP ( 葉成輝) ("Mr. Yip") will be appointed as a Chief Executive Officer of the

Company, together with Mr. LIN Yang, who will continue to serve as Chief Executive Officer and an executive Director of the Company.

The biographical details of Mr. Yip are as follows:

Mr. Yip, aged 48, has over 26 years of worldwide industry experience in information management, software and global sales and services. Mr. Yip holds a Bachelor of Science and Master of Science degrees in Electrical Engineering and Computer Science from University of California, Berkeley. He also holds an MBA degree from Golden Gate University. Prior to joining the Group, Mr. Yip has been the Global Senior Vice President and the President of Greater China of EMC Corporation ("EMC") since July 2006, and was in charge of the overall business operations in mainland China, Hong Kong and Taiwan. Upon the merger of Dell Inc. ("DELL") and EMC, Mr. Yip continued to be appointed as the Global Senior Vice President of DELL and the President of Greater China of EMC. He was also a key member in the integration of DELL and EMC in Greater China region.

From January 1999 to July 2006, Mr. Yip held a variety of senior management positions at International Business Machines Corporation ("IBM"), including Global Vice President, General Manager of the Asia Pacific Storage Division, President of the AS/400 Business in Asia Pacific Region, and General Manager of the AS/400 and

RS/6000 Businesses in Greater China region. Mr. Yip was in charge of various businesses at IBM based in Guangzhou, Beijing, Tokyo and Shanghai, and was at the time the youngest Global Vice President of IBM in 2003. In June 2016, Mr. Yip was also elected to the Board of Trustees of The Webb Schools, a private Boarding School in Claremont, CA in the United States.

Save as disclosed above, Mr. Yip has not held any directorship in other public companies the securities of which are listed on any securities market in Hong Kong or overseas in the past three years preceding the date of this announcement.

Mr. Yip has entered into an employment agreement with the Company regarding his appointment as the Chief Executive Officer of the Company commencing on 1 May 2017, which shall continue in force until (i) terminated by either the Company or Mr. Yip serving on each other no less than 3 months' notice or payment in lieu thereof; or (ii) in the event of Mr. Yip's default under the terms of the said employment agreement. Mr. Yip is entitled to an annual salary of a maximum of HK$9,000,000, which is determined by the Board with reference to the opinion from the Remuneration Committee based on his responsibilities as well as the remuneration benchmark in the industry and the prevailing market conditions. Mr. Yip is also entitled to a maximum of 10,000,000 share options in the Company after his appointment in accordance with the terms and conditions of the existing share option scheme of the Company and the employment agreement, which terms and conditions include the scheme limit being refreshed at the general meeting of the Company.

As at the date of this announcement, Mr. Yip (i) does not have any interest in or is deemed to be interested in any shares or underlying shares of the Company or its associated corporations within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong); (ii) does not hold any positions in the Company or its subsidiaries; and (iii) does not have any relationship with any Directors, other senior management, or controlling or substantial shareholders (as respectively defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")) of the Company.

Save for the information disclosed above, there are no other matters concerning the appointment of Mr. Yip as the Company's Chief Executive Officer that need to be brought to the attention of the shareholders of the Company nor any information to be disclosed pursuant to the requirements under Rule 13.51(2) of the Listing Rules.

The Board would like to express its warmest welcome to Mr. Yip for joining the Company.

Hong Kong, 29 March 2017

By order of the Board

Chairman

As at the date of this announcement, the Board comprises eight Directors, namely:-

Executive Directors: Mr. GUO Wei (Chairman), Mr. LIN Yang (Chief Executive Officer) and Mr. WANG Xinhui (President)

Independent Non-executive Directors: Mr. WONG Man Chung, Francis, Ms. NI Hong (Hope), Dr. LIU Yun, John, Ms. YAN Xiaoyan and Prof. LAI Daniel, BBS, JP

Website: www.dcholdings.com.hk

*For identification purpose only