DC Holdings' Rights Issue Oversubscribed by More than 15 Times Accelerate Implementation of New Strategy with Proceeds of HK$1.34 Billion Raised

HONG KONG, Sept. 15, 2017 /PRNewswire/ -- Digital China Holdings Limited ("DC Holdings" or the "Company"; Stock Codes: 00861.HK; 910861.TW) is pleased to announce that as at 7 September 2017, the Company received acceptance of and payment for approximately 5,517 million rights shares, which represent approximately 1,644.50% of total number of rights shares available under the rights issue. It was oversubscribed by over 15.44 times and raised proceeds of approximately HK$1.34 billion. The successful completion of the rights issue and investors' overwhelming response to it showcases that the market is fully confident about the Company's strategic transformation. It enables the Company to accelerate the development of precision medicine, Sm@rt City and other new businesses.

As at 7 September 2017 (the deadline for acceptance of the rights issue), the Company received valid acceptance for a total of approximately 321 million rights shares, representing approximately 95.63% of the total number of rights shares available under the rights issue. Moreover, valid applications for approximately 5,196 million excess rights shares were received, which represent approximately 1,548.87% of the total number of rights shares available under the rights issue. Therefore, the Company received acceptance of and payment for an aggregate of approximately 5,517 million rights shares, representing approximately 1,644.50% of total number of rights shares (335 million rights shares) available under the rights issue. It was oversubscribed by 15.44 times or approximately 5,181 million rights shares. The Company will allocate the excess rights shares on a fair and equitable basis and issued 14.676 million rights shares to those who applied for excess rights shares on a pro-rata basis of approximately 0.28% in proportion to the number of excess rights shares applied for under each valid application.

DC Holdings announced the rights issue plan on 23 July 2017. Pursuant to it, the Company proposed to raise approximately HK$1.34 billion by way of a rights issue of not less than approximately 335 million rights shares on the basis of one rights share for every four existing shares. The subscription price is HK$4 per rights share. Approximately 59% of the net proceeds raised will be used to finance an investment in China Healthcare Big Data Technology Development Group Ltd ("Technology Development Group"). Mr. Denis Yip Shing Fai, CEO and President of DC Holdings, said, "Under the government's policy support, precision medicine and healthcare Big Data services are expected to be the future direction of China's medical sector development. They will be our core operations going forward. This funding exercise will provide us with adequate resources to speed up the development of healthcare Big Data services. We are teaming up with the Chinese Academy of Sciences and a number of famous central government-owned enterprises, state-owned enterprises and listed companies to set up China Healthcare Big Data Technology Development Group Ltd., which will be one of the first government investments in healthcare and medical Big Data sector. Looking ahead, Technology Development Group will leverage the strengths of its member companies to drive innovative through capital investments. It will build and operate national healthcare and medical Big Data centers and industrial parks in major cities, with an aim to create a healthcare Big Data services system and drive the development of elementary healthcare Big Data platform in China."

In view of the improvement in mobile Internet, Big Data and Cloud computing technologies, DC Holdings accelerated the transformation from an industry IT services provider to an industry IT services operator. Mr. Guo Wei, Chairman of the Board of DC Holdings, said, "The Company will adhere to the 'Cloud Computing + Big Data' strategy and expand into different industries with the help of Cloud computing, healthcare technologies, artificial intelligence and Big Data technologies, thereby fulfilling our mission and vision of developing 'Digitalized China'. The rights issue was substantially oversubscribed, which clearly demonstrates that the market is fully confident about our strategic transformation. We will fully utilize our strengths in Sm@rt City, modern agriculture, precision medicine and supply chain management to capture opportunities arising in the market, thereby giving back to shareholders and shareholders who have placed trust and support to us."

About Digital China Holdings Limited

Digital China Holdings Limited ("DC Holdings", Stock Code: 0861.HK) was listed on the Main Board of The Stock Exchange of Hong Kong in 2001 following a successful spin-off from the then Legend Group in 2000. Since its listing 16 years ago, DC Holdings has adhered to the mission of creating a  "Digitalized China". It keeps pace with the market developments and makes continuing efforts to drive business transformation. From its startup, DC Holdings has vigorously developed a complete value chain for its IT services and offers point-to-point integrated IT services to customers, making it the largest integrated IT services provider in China. In 2010, the Company announced the Sm@rt City strategy and carried out various measures to implement it. It outperforms peers in this area in terms of strategy, implementation, technology and business model, and becomes the leading brand in China's Sm@rt City development. While IT technology is changing the life of everyone, DC Holdings is driving "Digitalization in China" through Big Data technology so as to transform the country's industrial sector. With unparalleled leadership in various core business sectors, including Sm@rt City, precision medicine, modern agriculture, intelligent manufacturing, finance and taxation, DC Holdings leverages Cloud computing and Big Data technology to innovate its business models and drive the transformation from an industry IT services provider to an industry IT services operator. It is evolving to be a genuine innovative enterprise.

For additional information about DC Holdings, please visit the Group's website at www.dcholdings.com.hk

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