Digital China Holdings Limited Announces Positive Profit Alert, Major Increase in Profit Following Operation Improvements

HONG KONG, CHINA - EQS - 31 January 2019 - Digital China Holdings Limited (the "Company", together with its subsidiaries, the "Group"; Stock Code: 00861.HK) has announced its performance forecast tonight that, based on its preliminary review of the relevant unaudited consolidated management accounts of the Group, it is expected to record a profit attributable to equity holders of the Company in the range of approximately HK$100 million to HK$200 million for the year ended 31 December 2018.

Based on the relevant information currently available to the Company, the Board considers that the expected turnaround from loss to profit of the Group was mainly due to the improvement of the overall performance of the Group's business operation and the increase in cost effectiveness, especially of the Sm@rt Logistics business and Sm@rt City business; and the net gains from certain non-recurring items.