Digital China : ANNOUNCEMENT IN RELATION TO THE UNAUDITED CONSOLIDATED FINANCIAL RESULTS OF DIGITAL CHINA INFORMATION SERVICE COMPANY LTD. FOR THE FIRST QUARTER ENDED 31 MARCH 2021

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 FIRST QUARTER ENDED 31 MARCH 2021

This announcement is made by Digital China Holdings Limited (神州數碼控股有限公司*) (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 first quarter ended 31 March 2021 (the "Results") has been released on 27 April 2021. DCITS is the Company's 39.90% 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 first quarter ended 31 March 2021

	Three months	Three months
	ended	ended
	31 March 2021	31 March 2020
	(unaudited)	(unaudited)
	RMB'000	RMB'000
Revenue	2,042,023	2,123,304
Net profit before taxation	42,672	28,848
Net profit for the period	31,027	23,545
Net profit attributable to DCITS's shareholders	39,110	29,465
	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 39.90% 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, 27 April 2021

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. PENG Jing and Mr. ZENG Shuigen

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 specified, the following currencies are in RMB.)

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Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.

Digital China Information Service Company Ltd.

2021 First Quarterly Report

April 2021

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Full text of the 2021 First 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
Fei Jianjiang	Director	Business reasons	Han Yuhua

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.

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Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.

1. 1. GENERAL INFORMATION OF THE COMPANY
2. 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

		For the same period of last	Increase/ decrease of the
		reporting period compared with
	For the reporting period	year
	the same period of last year
Operating revenue (RMB)	2,042,023,405.74	2,123,304,206.17	-3.83%
Net profit attributable to
shareholders of the listed company	39,109,718.48	29,464,993.65	32.73%
(RMB)
Net profit after extraordinary gain
or loss items attributable to	34,949,200.28	23,671,543.79	47.64%
shareholders of the listed company
(RMB)
Net cash flows from operating	-657,782,716.88	-602,150,915.20	-9.24%
activities (RMB)
Basic earnings per share	0.0420	0.0304	38.16%
(RMB/share)
Diluted earnings per share	0.0417	0.0301	38.54%
(RMB/share)
Weighted average return on net	0.70%	0.56%	0.14%
assets
			Increase/decrease as at the end
	As at the end of the reporting	As at the end of last year	of the reporting period
	period	compared with the end of last
			year
Total assets (RMB)	10,886,062,026.90	12,051,862,835.52	-9.67%
Net assets attributable to
shareholders of the listed company	5,556,598,812.38	5,585,144,941.02	-0.51%
(RMB)

Items and amounts of extraordinary gain or loss

• Applicable □ N/A

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Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.

Unit: RMB

	Amount from the beginning
Item	of the year to end of the	Note
	reporting period
Gain/loss from the disposal of non-current assets (including
written-off portions for which asset impairment provision has	-16,522.12
been made)
Government grants included in current period's profit and loss
(other than government grants closely related to the business of	4,871,131.04
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
derivative financial liabilities, and investment income from the
disposal of trading financial assets, derivative financial assets,	-765,001.05
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	334,176.99
Less: Effect of income tax	-142,958.21
Effect of minority interests (after tax)	406,224.87
Total	4,160,518.20	--

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.

II. Business review and prospect

During the reporting period, the net profit attributable to the shareholders of listed Company was approximately RMB39,109,700, increased by 32.73% as compared with the last corresponding period, the net profit after extra-ordinary gain or loss attributable to the shareholders of the listed company was approximately RMB34,949,200, increased by 47.64% as compared with the last corresponding period. The Company's operating performance and its profitability has been continuity improved was mainly due to:

1. The Company's business structure has been optimised, the software development and technical services business achieved the operating income of RMB795 million, a period-over-period increased by 25.89%. 2. The strategic focus has been achieved a remarkable result, the financial technology products and solutions, fintech innovation, fintech usage have been well developed. The

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Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.

financial industry business has been achieved the operating income of RMB1.135 billion, a period-over-period increased by 31.92%, of which the financial software business has been achieved the operating income of RMB419 million, a period-over-period increased by 35.57%. During the reporting period, the Company obtained sufficient sales orders in hand. In the first quarter of 2021, the Company has signed the sales contract amounting to RMB6.089 billion which yet to be recognised, a period-over-period increased by 63.05%, of which the fintech business has signed the sales contract amounting to RMB2.352 billion which yet to be recognised, a period-over-period increased by 76.69%. In the field of fintech innovation, the Company's distributed core business system has been recently shortlisted in the "2020 Information Technology Application Innovative Solution Typical Cases" of the Ministry of Industry and Information Technology. It won the bid and signed the contract with five share based, city commercial or rural commercial banks including Silicon Valley Bank. The fintech innovation infrastructure construction and services have won the bid and signed several contracts with state-owned enterprises and insurance institutions. In the field of fintech usage, the contract amount over RMB 100 million on agricultural bank connected project has been signed, a period-over-period increased by 8 times, of which amounted to RMB28.08 million on agricultural bank connected project has been signed with state-owned enterprise. The bank and tax interactive platform has made a connection with head and branch office of Guangfa Bank, Chongqing Fumin Bank etc. The digital renminbi-related services serves more than 10 financial institutions and promote the implementation of digital wallet functions.

1. 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	ordinary	80,941	Total number of preferential	0
shareholders as at the end of the		shareholders with reinstated voting
reporting period				rights as at the end of the reporting
					period

Particulars of shareholding of the top 10 shareholders

Name of shareholder

Nature of

Percentage of

Number of

Number of shares

Pledged or frozen

shareholder

shareholding

shares held

held subject to

Status of

Number

trading

shares

moratorium

Digital China

Non-state-owned

Software Limited (神

domestic

legal

39.90%

389,540,110

0

Pledged

133,760,000

州數碼軟件有限公

person

司) ("DCSL")

China-Singapore

State-owned

legal

Suzhou Industrial

person

Park Ventures Co.,

6.62%

64,675,937

0

Ltd. (中新蘇州工業

園區創業投資有限公

司) ("CSSIP")

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Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.

Kunshan Shenchang

State-owned legal

Technology Co., Ltd.

person

(昆山市申昌科技有

5.09%

49,708,280

0

Frozen

6,632,000

限公司) ("Shenchang

Technology")

Infinity I-China

Foreign legal

Investments(Israel),L.

person

1.34%

13,130,434

0

Pledged

13,130,434

P. ("Infinity I-China")

Dedicated securities

Non-state-owned

repurchase account of

domestic

legal

1.32%

12,864,476

0

DCITS

person

Cheng Yanyun (程艷

Domestic

natural

0.87%

8,465,822

0

雲)

person

Wu Donghua (吳冬

Domestic

natural

0.78%

7,635,638

5,726,728

華)

person

Wang Yufei (王宇飛)

Domestic

natural

0.70%

6,868,500

150,000

Pledged

2,420,000

person

Hong Kong Securities

Foreign legal

Clearing Company

person

0.58%

5,622,178

0

Limited

He Shenglong (賀勝

Domestic

natural

0.36%

3,556,000

0

龍)

person

Particulars of shareholdings of the top 10 shareholders not subject to trading moratorium

Name of shareholder

Number of shares held not subject to

Class of shares

trading moratorium

Class of shares

Number

DCSL

389,540,110

RMB ordinary shares

389,540,110

CSSIP

64,675,937

RMB ordinary shares

64,675,937

Shenchang Technology

49,708,280

RMB ordinary shares

49,708,280

Infinity I-China

13,130,434

RMB ordinary shares

13,130,434

Investments(Israel),L.P.

Dedicated securities repurchase

12,864,476

RMB ordinary shares

12,864,476

account of DCITS

Cheng Yanyun (程艷雲)

8,465,822

RMB ordinary shares

8,465,822

Wang Yufei (王宇飛)

6,718,500

RMB ordinary shares

6,718,500

Hong Kong Securities Clearing

5,622,178

RMB ordinary shares

5,622,178

Company Limited

He Shenglong (賀勝龍)

3,556,000

RMB ordinary shares

3,556,000

Ye Guolin (葉國林)

2,590,000

RMB ordinary shares

2,590,000

6

		Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.
	Description of connected		Beside dedicated securities repurchase account, DCSL has no connected relationship with
	relationships or concerted party		the rest of the top ten shareholders. Wu Donghua and Cheng Yanyun are in a spousal
	relationships among the aforesaid		relationship.
	shareholders
	Description of participation in		Cheng Yanyun held 5,244,422 shares and 3,221,400 shares of the Company through
	margin trading by any of the top 10		ordinary securities account and credit securities account respectively. Ye Guolin held
	shareholders		2,590,000 shares of the Company through credit securities account.

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

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Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.

1. 1. SIGNIFICANT EVENTS
2. 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	921,886,496.43	1,941,313,168.04	-52.51%	1
Bills receivable	16,537,229.84	4,759,879.29	247.43%	2
Prepayments	230,862,438.01	101,767,749.65	126.85%	3
Other current assets	43,527,620.24	4,785,136.52	809.64%	4
Short-term borrowings	421,356,015.58	722,279,881.25	-41.66%	5
Bills payables	284,578,351.29	552,013,491.84	-48.45%	6
Taxes payable	114,325,133.52	188,127,416.31	-39.23%	7
Deferred income	26,963,521.61	20,061,059.53	34.41%	8
Treasury stock	221,028,596.53	160,204,801.44	37.97%	9

1. The closing balance of cash and bank balances decreased by 52.51% as compared to the opening balance, which was mainly attributable to the payment of purchase and repayment of bank loans during the period;
2. The closing balance of bills receivable increased by 247.43% as compared to the opening balance, which was mainly attributable to the received bills receivable not yet matured during the period;
3. The closing balance of prepayments increased by 126.85% as compared to the opening balance, which was mainly attributable to the prepayment of procurement payments during the period;
4. The closing balance of other current assets increased by 809.64% as compared to the opening balance, which was mainly attributable to the increase in the input VAT subject to deduction during the period;
5. The closing balance of short-term borrowings decreased by 41.66% as compared to the opening balance, which was mainly attributable to the repayment of bank borrowings during the period;
6. The closing balance of bills payable decreased by 48.45% as compared to the opening balance, which was mainly attributable to the current bills are due for redemption during the period;
7. The closing balance of taxes payable decreased by 39.23% as compared to the opening balance, which was mainly attributable to the payment of taxes during the period;
8. The closing balance of deferred income increased by 34.41% as compared to the opening balance, which was mainly attributable to government subsidy received during the period;
9. The closing balance of treasury stock increased by 37.97% as compared to the opening balance, which was mainly attributable to the repurchase of Company stock during the period.

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Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.

(II) Reasons for changes in income statement items:

Item	For the reporting period	For the same period of last	Percentage of	Note
	(RMB)	year (RMB)	change
Taxes and surcharge	7,345,486.73	4,785,052.04	53.51%	10
Investment income	9,764,185.87	-5,420,667.86	280.13%	11
Gains on changes in fair value	-871,774.08	1,360,502.98	-164.08%	12
Credit impairment loss	-68,422,181.98	-19,613,530.18	248.85%	13
Asset impairment loss	-31,884,989.73	-52,920,392.16	-39.75%	14
Non-operating income	528,568.65	271,901.52	94.40%	15
Non-operating expenses	210,913.78	419,580.33	-49.73%	16
Income tax expenses	11,644,393.11	5,303,821.95	119.55%	17

1. Taxes and surcharge increased by 53.51% as compared to the same period of last year, which was mainly attributable to the increase in input VAT retain from the same period of last year;
2. Investment income increased by 280.13% as compared to the same period of last year, which was mainly attributable to the increase in recognition of investment income from associate and wealth management products during the period;
3. Gains on changes in fair value decreased by 164.08% as compared to the same period of last year, which was mainly attributable to the decrease in accruals of unexpired bank wealth management income during the period;
4. Credit impairment loss increased by 248.85% as compared to the same period of last year, which was mainly attributable to the increase in provision bad debt during the period;
5. Asset impairment loss decreased by 39.75% as compared to the same period of last year, which was mainly attributable to the more provision of inventories for the same period of last year;
6. Non-operatingincome increased by 94.40% as compared to the same period of last year, which was mainly attributable to the compensation received during the period;
7. Non-operatingexpenses decreased by 49.73% as compared to the same period of last year, which was mainly attributable to the supplemental payment of income tax after audit of same period of last year;
8. Income tax expenses increased by 119.55% as compared to the same period of last year, which was mainly attributable to the increase in income tax provision of current period during the period;

(III) Reasons for change in cash flow statement items:

Item	For the reporting period	For the same	Percentage	Note
	(RMB)	period of last year	of change
		(RMB)
Net cash flows from investing activities	137,105,228.19	220,135,915.61	-37.72%	18

18. Net cash flows from investing activities decreased by 37.72% as compared to the same period of last year, which was mainly attributable to the bonds purchase during the period;

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Full text of the 2021 First 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. The ninth meeting of the eighth session of the board of directors and resolutions at the 2020 annual general meeting of shareholders

On 29 March 2021,the Company held the ninth meeting of the eighth session of the board of directors to discussed and passed "The resolution on the 2020 profit distribution plan", "The resolution on reappointment of auditor 2021", "The resolution on estimation on routine quota of related party transaction 2021", "The resolution on changing the use of remaining proceeds permanently to supplement of working capital", "The resolution on change in the Company registered capital and amend the article of association", "The resolution on formulating the three years (2021-2023) plan on shareholder return" etc. The above resolutions have been passed at the Company annual general meeting of shareholder on 23 March 2021.

(II) Other significant events:

Index of the Company announcement during the reporting period as below:

Brief description of significant event	Date of disclosure	Search index for website on which
			temporary report are published
The legal opinions of the third extra-ordinary general meeting of	4	January 2021	http://www.cninfo.com.cn
shareholders 2020
The announcement on the resolutions of third extra-ordinary	4	January 2021	http://www.cninfo.com.cn
general meeting of shareholders 2020
The announcement on the progress of shares repurchase	4	January 2021	http://www.cninfo.com.cn
The announcement on government subsidy received	6	January 2021	http://www.cninfo.com.cn
The announcement on the high-tech enterprise certificate of the	7	January 2021	http://www.cninfo.com.cn
subsidiary of the Company
The announcement on the high-tech enterprise certificate of the	9	January 2021	http://www.cninfo.com.cn
subsidiary of the Company
The announcement on the progress of guarantee provision to the	13 January 2021	http://www.cninfo.com.cn
Company subsidiary
The announcement on the repurchase proportion reaching 1%	14 January 2021	http://www.cninfo.com.cn
and the progress of share repurchase and
The announcement on the high-tech enterprise certificate of the	16 January 2021	http://www.cninfo.com.cn
subsidiary of the Company
The reminder announcement on matters estimation of routine	27 January 2021	http://www.cninfo.com.cn
related party transactions 2021
The announcement on completion of shares repurchase and	28 January 2021	http://www.cninfo.com.cn
shares movement
The announcement on supplementary pledge of partial shares of	10	February 2021	http://www.cninfo.com.cn
the Company's controlling shareholder
The announcement on the progress of more than half of the time	6 March 2021	http://www.cninfo.com.cn
of some senior management shares reduction plan

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Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.

The announcement on holding of result briefing meeting of 2020	27 March 2021	http://www.cninfo.com.cn
and question soliciting
The summary of annual report 2020	31 March 2021	http://www.cninfo.com.cn
The audited report 2020 (already cancelled)	31 March 2021	http://www.cninfo.com.cn
The notice of annual general meeting of shareholders	31 March 2021	http://www.cninfo.com.cn
The announcement on resolutions of the board of supervisors	31 March 2021	http://www.cninfo.com.cn
The specific report on capital occupation from related parties	31 March 2021	http://www.cninfo.com.cn
The social responsibility report	31 March 2021	http://www.cninfo.com.cn
The self-assessment on internal control report	31 March 2021	http://www.cninfo.com.cn
The internal control assurance report	31 March 2021	http://www.cninfo.com.cn
The annual specific explanation on utilisation of proceeds	31 March 2021	http://www.cninfo.com.cn
The verification report on annual utilisation of proceeds	31 March 2021	http://www.cninfo.com.cn
The annual report of independent directors	31 March 2021	http://www.cninfo.com.cn
The independent opinion of independent directors on guarantees	31 March 2021	http://www.cninfo.com.cn
and other matters
The work report 2020 on board of supervisory	31 March 2021	http://www.cninfo.com.cn
The specific verification report 2020 on deposits and utilisation	31 March 2021	http://www.cninfo.com.cn
of proceeds
The announcement on estimation of routine related party	31 March 2021	http://www.cninfo.com.cn
transaction 2021
The verification opinion on the change the use of remaining	31 March 2021	http://www.cninfo.com.cn
proceeds permanently to supplement working capital
The article of association	31 March 2021	http://www.cninfo.com.cn
The announcement on profit distribution plan 2020	31 March 2021	http://www.cninfo.com.cn
The announcement on change in the Company's accounting	31 March 2021	http://www.cninfo.com.cn
policies
The announcement on the change the use of remaining proceeds	31 March 2021	http://www.cninfo.com.cn
permanently to supplement working capital
The announcement on provision on asset impairment	31 March 2021	http://www.cninfo.com.cn
The announcement on reappointment of auditor 2021	31 March 2021	http://www.cninfo.com.cn
The three year (2021-2023) plan on shareholder returns	31 March 2021	http://www.cninfo.com.cn
The amendment on article of association	31 March 2021	http://www.cninfo.com.cn
Annual report 2020	31 March 2021	http://www.cninfo.com.cn
The announcement on board of directors	31 March 2021	http://www.cninfo.com.cn
The audited report 2020	31 March 2021	http://www.cninfo.com.cn
The supplement announcement on the audited report 2020	31 March 2021	http://www.cninfo.com.cn

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Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.

Progress of implementation of share repurchase

• Applicable □ N/A

The seventh meeting of the eighth session of the Company's board of directors meeting passed a resolution on "Resolution on the repurchase of the Company's shares by way of centralised bidding transaction" and agreed to repurchase the Company's share with its own funds or self-raised capital. The total amount of funds to be utilised shall be not less than RMB100 million (inclusive) and not more than RMB200 million (inclusive). The price of repurchase shares shall not exceed RMB25.5 per share (inclusive) and the number of repurchased shares is subject to the actual number of shares repurchased at the expiration of the repurchase period. The implementation period of this shares repurchase is no more than 12 months period from the date of the Company's board of directors passing the shares repurchase resolutions. For details, please refer to the announcement dated on 27 August 2020 "The announcement on the shares repurchase plan by way of centralised bidding transaction" disclosed in "Securities Times" and www.cninfo.com.

On 28 January 2021, the Company disclosed "Announcement on the completion of shares repurchase and shares movement" (Announcement number 2021-009). As at 26 January 2021, the Company accumulatively repurchased 12,864,476 shares by way of a centralized bidding transactions through a specific securities account, the highest transaction purchase price was RMB16.70 per shares while the lowest transaction purchase price was RMB14.70 per shares. The total amount was RMB200,030,533.97 (exclude transaction fee such as commission and transfer fee etc). Such share repurchased plan has been completed.

Progress of implementation of sell-down of repurchased shares by way of centralised bidding

• Applicable √ N/A

1. 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.

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Full text of the 2021 First Quarterly Report of Digital China Information Service Company Ltd.

IV. Financial assets investment

1. Investment in securities

• Applicable □ N/A

Fair value

Cumulative

Securities

Securities

Initial cost of

Accounting

Beginning

change

changes in

Purchase

Dispose

Profit and

Closing book

Source of

Securities

measurement

during the

fair value

amount for the

amount for

loss during

Accounts

code

abbreviation

investment

book value

value

fund

model

current

included in

period

the period

the period

period

equity

19 zhonggxi

Fair value

Transactional

Bonds

155228

200,000,000.00

200,000,000.00

496,005.91

200,000,000.00

financial

Self fund

(中希) 01

measurement

assets

Total

200,000,000.00

--

0.00

0.00

0.00

200,000,000.00

0.00

496,005.91

200,000,000.00

--

--

Disclose date of announcement on

approval of securities investment of

board of directors

Disclose date of announcement on

approval of securities investment of

shareholders meeting

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2. Derivative Investments

• Applicable √ N/A

During the reporting period, the Company had no derivative investment.

V. Progress of projects financed by proceeds

√Applicable □ N/A

Approved by the China Securities Regulatory Commission [2013] No. 1578 of documents "In connection with the approval of Shenzhen Taiquang Telecom Co., Ltd merge with Digital China Information Services Co., Ltd to raise a supporting funds" (《關於核 准深圳市太光電信股份有限公司吸收合併神州數碼信息服務股份有限公司並募集配套資金的批复》 ), the Company implemented a significant asset reorganisation project and raised supporting fund of RMB200 million for paying the transaction cost for merger and acquisition. The above-mentionedproceeds were received on 18 December 2013 and deposited into the Company's special account in the account number of 37150188000033711 in the China Everbright Bank Kunshan High-techIndustrial Park Branch (中國光大銀行昆山高新技術產業園區支行) ("Everbright Bank"), SHINEWING Certified Public Accountants (General Partnership) (信永中和會計師事務所(特殊普通合夥)) issued "the Capital Verification Report" (驗資報告) with the number of XYZH/2012A1055-8.For the year ended 31 December 2020, the accumulated amount of RMB174,975,238.86 has been utilised from the proceeds which resulted in the remaining amount of RMB25,024,761.14. Together with its interest RMB2,357,007.15, the balance deposited in the proceeds account in aggregate amount of RMB27,381,768.29.

On 29 March 2021, the Company held the ninth meeting of the eighth board of directors and the ninth meeting of the eighth board of supervisors. "The resolution on changing the use of the remaining proceeds permanently to supplement of working capital" has been discussed and passed in the meeting and the remaining proceeds from the Company's asset reorganisation project in 2013 amounted to RMB27,381,768.29 (including the interest and the settlement amount shall be prevailed by the actual amount on the day when it is transferred to its own account) for the purpose of permanently supplement of working capital has been agreed. The above-mentioned matters was discussed and passed in the Company's annual general meeting 2020 held on 23 April 2020.

VI. Estimates on operating results for the period from January to June 2021

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

VII. Material contracts in daily operations

√ Applicable □ N/A

					Amount of revenue
Name of the	Name of the		Total amount of	Progress of	recognised for the	Recovery of
contracted	contracted	Contract subject	contract	current period and	accounts
the contract
company	counterparty		performance	on an accumulative	receivables
					basis

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			The		RMB3,899,100 was
		IT Terminal Desktop	estimated
	Guangdong		recognised during
	Service Outsourcing and	total		Accumulative
	Midea Air		the period,
	Service Items Framework	amount of		repayment amount
	Conditioning	ongoing	RMB44,696,500
	Contract with Guangdong	contract	was
	Equipment Co.,		was recognised on
Digital China	Midea Air Conditioning	framework		RMB47,327,800
	Ltd.		an accumulative
Advanced	Equipment Co., Ltd.	was
			basis
Systems Service			44,096,200
Limited (神州數
				No revenue was
碼系統集成服務		Work of Procurement for
			recognized during
有限公司)		the IT Operation and			Accumulative
	Huawei			the period,
	Maintenance Business for			repayment amount
	Technologies	N/A	ongoing	RMB24,070,300
	Network and Computer	was
	Co., Ltd			was recognized on
	Room Outsourcing Contract			RMB24,541,400
				an accumulative
		(SOW)
				basis
Digital China		"2019 Golden Tax Phase III			Not yet acceptance.
Information		Management Decision			Accumulative
			No revenue and no
System Company	State Taxation	System Upgrade and			repayment amount
52,390,800	ongoing	revenue on an
Limited (神州數	Administration	Improvement and Operation	was
		accumulative basis
碼信息系統有限		and Maintenance Project			RMB15,717,200
			were recognised
公司)		(Pack 1) Contract"
Digital China
Vision (Xi'an)					No revenue was
Technology		Construction of Yantai			recognised during	Accumulative
Development	Big Data Bureau	Apple Big Data Center	10,448,800	ongoing	the period,	repayment amount
Company Limited	of Yantai	Project of Big Data Bureau	RMB8,250,800 was	was
(神州遠景（西安）		of Yantai			recognised on an	RMB8,359,000
科技發展有限公					accumulative basis
司)
		Procurement Project of			No revenue was
				recognised during
	Shaanxi Rural	Management Platform for			Accumulated
			the period,
	Credit	Direct Connecting between			repayment of this
Beijing	33,840,000	ongoing	RMB21,238,900
	Cooperatives	Banks and Agriculture of	project was
Zhongnong Xinda			was recognised on
	Union	Shaanxi Rural Credit			RMB31,240,000
Information			an accumulative
		Cooperatives Union
Technology				basis
Limited (北京中
				Not yet acceptance.
農信達信息技術	Jiangsu Internet	Jiangsu Province Rural and			Accumulated
		No revenue and no
有限公司)	Agriculture	Government Information			repayment of this
	13,965,000	ongoing	revenue on an
	Development	Business Integration and	project was
			accumulative basis
	Center	Optimization Project			RMB5,167,100
			were recognised

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Significant difference between the progress of material contract and the contract agreement which affects more than 30% of the contract amount

• Applicable √ N/A

VIII. Entrusted wealth management fund

√ Applicable □ N/A

				Unit: RMB ten thousand
Specific type of	Source of funds under	Amount of entrusted fund	Outstanding balance	Amount overdue and
entrustment	entrusted management	management incurred	under yet to be recouped
Bank wealth	Internal funds	143,610	7,130	0
management product
Brokerage wealth	Internal funds	33,000	10,000	0
managmenet product
Other categories	Internal funds	25,000	25,000	0
Total		201,610	42,130	0

Details of high-risk entrusted wealth management fund with material amounts individually or a lower level of security or liquidity without guaranteed repayment of principal

□ Applicable √ N/A

Expected inability to recoup the principal amount or other situations that might result in impairment of entrusted wealth management fund

□ Applicable √ N/A

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 funds of the listed company being occupied in non-operating manner by the Company's controlling shareholder and its connected parties during the reporting period.

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XI. Registration record of reception of analysts, communications and press interviews during the reporting period

• Applicable □ N/A

Date	Place	Mode	Type of audience	Audience received	Main topics of discussion and	Index for general research information
received	information provided
						http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000555&
	Digital Technology			Institutional		stockCode=000555&announcementId=1209636575&announcementTime=2021-04
31 March 2021	Plaza, No.9 Shangdi	Other	Institution	investors, media and	2020 annual performance brief	-02%2011:40
9th Street, Haidian	individual investors,	meeting materials	http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000555&
	District, Beijing			etc.		stockCode=000555&announcementId=1209636576&announcementTime=2021-04
						-02%2011:40

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IV. FINANCIAL STATEMENTS

I. Financial Statements

1. Consolidated balance sheet

Prepared by: Digital China Information Service Company Ltd.

31 March 2021

		Unit: RMB
Item	31 March 2021	31 December 2020
Current assets:
Cash and bank balances	921,886,496.43	1,941,313,168.04
Settlement provision
Borrowing funds
Trading financial assets	610,235,888.40	750,007,662.48
Derivative financial assets
Bills receivable	16,537,229.84	4,759,879.29
Trade receivables	2,009,699,081.23	1,946,829,284.49
Receivables financing
Prepayments	230,862,438.01	101,767,749.65
Premium receivable
Receivables from reinsurers
Reinsurance contract reserves
receivable
Other receivables	145,236,174.78	146,475,000.58
Including: Interest receivable
Dividend receivable
Purchase of repo financial assets
Inventories	2,486,260,131.60	2,784,103,976.38
Contract assets	1,625,614,484.79	1,640,000,224.71
Assets classified as held-for-sale
Non-current assets due within one
year
Other current assets	43,527,620.24	4,785,136.52
Total current assets	8,089,859,545.32	9,320,042,082.14

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Non-current assets:
Disbursement of loans and
advances
Debt investments
Other debt investments
Long-term receivables	110,304,194.00	110,304,194.00
Long-term equity investments	164,594,521.63	163,000,470.68
Other investments in equity	133,481,611.92	154,829,413.56
instruments
Other non-current financial assets
Investment properties	13,537,314.32	13,630,176.99
Fixed assets	441,535,858.14	453,057,913.67
Construction in progress	1,933,639.16
Productive biological assets
Oil & gas assets
Right of use assets	91,652,023.10
Intangible assets	124,839,514.51	131,559,390.41
Development expenses	41,384,176.07	38,441,116.25
Goodwill	1,505,197,394.63	1,505,197,394.63
Long-term prepaid expenses	7,468,055.38	9,122,916.12
Deferred tax assets	160,274,178.72	152,677,767.07
Other non-current assets
Total non-current assets	2,796,202,481.58	2,731,820,753.38
Total assets	10,886,062,026.90	12,051,862,835.52
Current liabilities:
Short-term borrowings	421,356,015.58	722,279,881.25
Borrowings from central bank
Borrowed funds
Trading financial liabilities
Derivative financial liabilities
Bills payables	284,578,351.29	552,013,491.84
Trade payables	2,000,967,332.30	2,373,036,760.20
Receipt in advance
Contract liabilities	1,677,121,192.67	1,756,268,042.19
Funds from selling and

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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	420,424,673.48	495,368,850.46
Taxes payable	114,325,133.52	188,127,416.31
Other payables	166,952,360.41	222,115,124.98
Including: Interest payable
Dividend payable
Fees and commission payable
Reinsurance accounts payable
Liabilities classified as
held-for-sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities	5,085,725,059.25	6,309,209,567.23
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings
Bonds payables
Including: preferential shares
perpetual notes
Lease liabilities	91,432,199.09
Long-term payables
Long-term staff remuneration
payable
Estimated liabilities
Deferred income	26,963,521.61	20,061,059.53
Deferred tax liabilities	32,160,634.59	36,724,613.52
Other non-current liabilities
Total non-current liabilities	150,556,355.29	56,785,673.05
Total liabilities	5,236,281,414.54	6,365,995,240.28

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Owners' equity:
Share capital	976,310,327.00		975,768,827.00
Other equity instruments
Including: preferential shares
perpetual notes
Capital reserve	2,414,517,595.40		2,406,151,454.21
Less: Treasury stock	221,028,596.53		160,204,801.44
Other comprehensive income	83,253,359.02		98,993,052.24
Special reserve
Surplus reserve	34,958,025.22		34,958,025.22
General risk provisions
Retained profits	2,268,588,102.27		2,229,478,383.79
Total owners' equity attributable to	5,556,598,812.38		5,585,144,941.02
parent company
Minority shareholder's interest	93,181,799.98		100,722,654.22
Total owners' equity	5,649,780,612.36		5,685,867,595.24
Total liabilities and owners' equity	10,886,062,026.90		12,051,862,835.52
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	31 March 2021		31 December 2020
Current assets:
Cash and bank balances	168,686,688.57	60,656,839.66
Trading financial assets	237,921,504.84	251,195,662.48
Derivative financial assets
Bills receivable
Trade receivables	50,701,724.10	67,707,014.64
Receivables financing
Prepayments	484,606.98	169,280.31
Other receivables	27,225,876.31	119,492,209.92
Including: Interest receivable
Dividend receivable	17,450,338.26	17,450,338.26

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Inventories	58,656,344.60	314,866,835.38
Contract assets
Assets classified as held-for-sale
Non-current assets due within one
year
Other current assets	6,133,367.23	2,417,532.14
Total current assets	549,810,112.63	816,505,374.53
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments	2,790,376,164.61	2,788,806,117.37
Other investments in equity	30,189,476.00	33,902,624.00
instruments
Other non-current financial assets
Investment properties
Fixed assets	102,578.48	105,668.24
Construction in progress
Productive biological assets
Oil & gas assets
Right of use assets	175,066.30
Intangible assets	3,223.00	12,601.00
Development expenses
Goodwill
Long-term prepaid expenses	73,940.44	98,587.25
Deferred tax assets	19,371,792.96	16,082,174.29
Other non-current assets
Total non-current assets	2,840,292,241.79	2,839,007,772.15
Total assets	3,390,102,354.42	3,655,513,146.68
Current liabilities:
Short-term borrowings
Trading financial liabilities
Derivative financial liabilities
Bills payables		29,532,881.97
Trade payables	151,722,241.32	363,473,041.78

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Receipt in advance
Contract liabilities	84,223,232.18	61,786,437.12
Staff remuneration payable	9,326,176.22	17,369,340.87
Taxes payable	13,955,391.01	12,519,926.27
Other payables	41,111,739.06	29,357,609.93
Including: Interest payable
Dividend payable
Liabilities classified as
held-for-sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities	300,338,779.79	514,039,237.94
Non-current liabilities:
Long-term borrowings
Bonds payables
Including: preferential shares
perpetual notes
Lease liabilities	176,105.23
Long-term payables
Long-term staff remuneration
payable
Estimated liabilities
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities	176,105.23
Total liabilities	300,514,885.02	514,039,237.94
Owners' equity:
Share capital	976,310,327.00	975,768,827.00
Other equity instruments
Including: preferential shares
perpetual notes
Capital reserve	2,251,685,149.72	2,243,077,639.50
Less: Treasury stock	221,028,596.53	160,204,801.44

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Other comprehensive income	-23,892,938.44	-21,108,077.44
Special reserve
Surplus reserve	34,958,025.22	34,958,025.22
Retained profits	71,555,502.43	68,982,295.90
Total owners' equity	3,089,587,469.40	3,141,473,908.74
Total liabilities and owners' equity	3,390,102,354.42	3,655,513,146.68

3. Consolidated income statement

		Unit: RMB
Item	Amount for the current period	Amount for the previous period
1. Total operating revenue	2,042,023,405.74	2,123,304,206.17
Including: Operating revenue	2,042,023,405.74	2,123,304,206.17
Interest income
Earned premium
Fees and commission income
2. Total operating cost	1,920,235,925.57	2,029,887,319.77
Including: Operating cost	1,644,058,804.07	1,790,336,952.65
Interest expenses
Fees and commission expenses
Surrenders
Net amount of compensation payout
Net amount of insurance liabilities
contract reserves
Policyholder dividends expenses
Reinsurance expenses
Taxes and surcharges	7,345,486.73	4,785,052.04
Selling expenses	85,222,433.78	74,586,262.92
Administrative expenses	46,142,627.37	37,075,841.80
Research and development expenses	128,723,799.12	112,952,927.36
Finance costs	8,742,774.50	10,150,283.00
Including: Interest expenses	6,599,220.31	9,851,619.35
Interest income	1,088,058.58	1,933,192.60
Add: Other income	11,981,513.20	12,173,268.66
Investment income (loss indicated by "-")	9,764,185.87	-5,420,667.86

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Including: Investment income from associates	1,594,050.95	-8,287,068.64
and joint ventures
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	-871,774.08	1,360,502.98
indicated by "-")
Credit impairment loss (loss indicated by "-")	-68,422,181.98	-19,613,530.18
Asset impairment loss (loss indicated by "-")	-31,884,989.73	-52,920,392.16
Gains from the disposal of assets (loss
indicated by "-")
3. Operating profit (loss indicated by "-")	42,354,233.45	28,996,067.84
Add: Non-operating income	528,568.65	271,901.52
Less: Non-operating expenses	210,913.78	419,580.33
4. Total profit (total loss indicated by "-")	42,671,888.32	28,848,389.03
Less: Income tax expenses	11,644,393.11	5,303,821.95
5. Net profit (net loss indicated by "-")	31,027,495.21	23,544,567.08
(I) Analysed by continuity
1. Net profit from continuing operations (loss	31,027,495.21	23,544,567.08
indicated by "-")
2. Net profit from discontinued operations (loss
indicated by "-")
(II) Analysed by ownership
1. Net profit attributable to owners of the parent	39,109,718.48	29,464,993.65
company
2. Minority interests	-8,082,223.27	-5,920,426.57
6. Net amount of other comprehensive income after	-15,739,693.22	-3,971,320.82
taxation
Net amount of other comprehensive income after
taxation attributable to owners of the parent	-15,739,693.22	-3,971,320.82
company
(I) Other comprehensive income which cannot be	-16,010,851.23	-3,838,109.00
reclassified as profit or loss
1. Changes in the re-measurement of
defined benefit plans

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2.	Other comprehensive income under
	equity method which cannot be recorded
	in profit and loss
3.	Change in fair value of other	-16,010,851.23	-3,838,109.00
	investments in equity instruments
4.	Change in fair value of inherent credit
	risks
5.	Others
(II) Other comprehensive income which will be	271,158.01	-133,211.82
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.	Reclassification of financial assets
	included in other comprehensive income
4.	Credit loss for other debt investments
5.	Cash flow hedging reserve
6.	Exchange differences arising from	271,158.01	-133,211.82
	foreign currency translation
7.	Others
Net amount of other comprehensive income after
taxation attributable to minority shareholders
7. Total comprehensive income	15,287,801.99	19,573,246.26
Total comprehensive income attributable to owners	23,370,025.26	25,493,672.83
of the parent company
Total comprehensive income attributable to	-8,082,223.27	-5,920,426.57
minority shareholders
8. Earnings per share:
(I) Basic earnings per share	0.0420	0.0304
(II) Diluted earnings per share	0.0417	0.0301

If enterprises under common control are merged in current period, the net profit of merged party before merging is RMB0.00, and the net profit of the merged party of previous period is RMB0.00.

Legal representative: Guo Wei	Person-in-charge of accounting	Head of accounting department:
	operations: Zhang Yunfei	Zhang Xiuhui

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4. Income statement of the parent company

		Unit: RMB
Item	Amount for the reporting period	Amount for the previous period
1. Total operating revenue	357,493,139.53	100,800,231.40
Less: Operating cost	317,303,497.54	66,762,302.89
Taxes and surcharges	482,895.48	420,015.26
Selling expenses	10,001,044.39	94,656.34
Administrative expenses	374,712.80	5,294,810.05
Research and development expenses	164,874.27	13,760.99
Finance costs	-48,899.47	-73,465.76
Including: Interest expenses		-66.33
Interest income	57,660.29	79,524.92
Add: Other income	25,445.28
Investment income (loss indicated by	-104,736.86	-299,452.69
"-")
Including: Investment income from
associates and joint	-747,142.15	-72,574.38
ventures
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	-1,274,157.64	-1,298,398.69
indicated by "-")
Credit impairment loss (loss indicated by	62,348.08	-532,542.01
"-")
Asset impairment loss (loss indicated by	-15,079,283.49	-4,420,229.08
"-")
Gains from the disposal of assets (loss
indicated by "-")
2. Operating profit (loss indicated by "-")	12,844,629.89	21,737,529.16
Add: Non-operating income	382.83	0.33
Less: Non-operating expenses	797.12	373.77
3. Total profit (total loss indicated by "-")	12,844,215.60	21,737,155.72
Less: Income tax expenses	10,271,009.07
4. Net profit (net loss indicated by "-")	2,573,206.53	21,737,155.72

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(1) Net profit from continuing operations	2,573,206.53	21,737,155.72
(net loss indicated by "-")
(2) Net profit from discontinued operations
(net loss indicated by "-")
5. Net amount of other comprehensive income	-2,784,861.00	-3,838,109.00
after taxation
(I) Other comprehensive income which	-2,784,861.00	-3,838,109.00
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	-2,784,861.00	-3,838,109.00
	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.	Reclassification of financial assets
	included in other comprehensive
	income
4.	Credit loss for other debt
	investments
5.	Cash flow hedging reserve
6.	Differences arising from foreign
	currency translation
7.	Others
6. Total comprehensive income	-211,654.47	17,899,046.72
7. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share

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5. Consolidated cash flow statement

		Unit: RMB
Item	Amount for the reporting period	Amount for the previous period
1. Cash flow from operating activities:
Cash received from sales of goods	1,980,005,231.88	1,377,943,966.46
and rendering of services
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 borrowed funds
Net increase in repurchase
business capital
Net cash received for customer
brokerage deposits
Tax rebates received	5,425,481.06	3,116,258.19
Other cash received in connection	169,780,315.08	79,700,389.63
with operating activities
Sub-total of cash inflow from operating	2,155,211,028.02	1,460,760,614.28
activities
Cash paid for purchase of goods	2,017,160,739.65	1,500,508,649.71
and rendering of services
Net increase in customer loans and
advances
Net increase in deposits with
central bank and other financial
institutions

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Cash paid for original insurance
contract claims
Net increase in borrowed funds
Interest, fees and commissions
paid
Cash paid for policyholder
dividend
Cash paid to and for employees	554,443,455.08	415,163,495.19
Taxes paid	155,731,847.85	61,847,752.29
Other cash paid in connection with	85,657,702.32	85,391,632.29
operating activities
Sub-total of cash outflow from	2,812,993,744.90	2,062,911,529.48
operating activities
Net cash flow from operating activities	-657,782,716.88	-602,150,915.20
2. Cash flow from investing activities:
Cash received from disposal of
investments
Cash received on obtaining	8,170,134.92	3,093,279.09
investment income
Net cash received from disposal of
fixed assets, intangible assets and	75,262.03	87,964.80
other long-term assets
Net cash received from disposal of
subsidiaries and other business
units
Other cash received in connection	4,086,100,000.00	2,036,800,000.00
with investing activities
Sub-total of cash inflow from investing	4,094,345,396.95	2,039,981,243.89
activities
Cash paid for purchase and
construction of fixed assets,	10,040,168.76	1,745,328.28
intangible assets and other
long-term assets
Cash paid for acquisition of	200,000,000.00
investments
Net increase in pledge loans
Net cash paid for acquisition of
subsidiaries and other business

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units
Other cash paid in connection with	3,747,200,000.00	1,818,100,000.00
investing activities
Sub-total of cash outflow from	3,957,240,168.76	1,819,845,328.28
investing activities
Net cash flow from investing activities	137,105,228.19	220,135,915.61
3. Cash flow from financing activities:
Cash received from investments	7,206,452.66
Including: Cash received from
investments in a subsidiary by	300,000.00
minority shareholders
Cash received on drawdown of	106,075,572.38	88,347,312.01
loans
Other cash received in connection
with financing activities
Sub-total of cash inflow from financing	113,282,025.04	88,347,312.01
activities
Cash paid for repayment of	406,829,657.11	512,752,424.86
borrowings
Cash paid for dividend or profit	6,898,488.96	10,194,685.70
distribution or interest payment
Including: Dividend and profit
paid to minority shareholders by a
subsidiary
Other cash paid in connection with	60,876,260.63	254,781.72
financing activities
Sub-total of cash outflow from	474,604,406.70	523,201,892.28
financing activities
Net cash flows from financing activities	-361,322,381.66	-434,854,580.27
4. Effect on cash and cash equivalents
due to change in foreign currency	135,184.17	-1,069,764.49
exchange rate
5. Net increase in cash and cash	-881,864,686.18	-817,939,344.35
equivalents
Add: Balance of cash and cash
equivalents at the beginning	1,789,836,593.55	1,350,168,474.15
of the period
6. Balance of cash and cash equivalents	907,971,907.37	532,229,129.80
at the end of the period

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6. Cash flow statement of the parent company

		Unit: RMB
Item	Amount for the reporting period	Amount for the previous period
1. Cash flow from operating activities:
Cash received from sales of goods	401,045,045.06	81,071,262.68
and rendering of services
Tax rebates received
Other cash received in connection	1,008,234.46	79,591.58
with operating activities
Sub-total of cash inflow from operating	402,053,279.52	81,150,854.26
activities
Cash paid for purchase of goods	323,155,073.46	14,317,697.69
and rendering of services
Cash paid to and for employees	5,207,798.38	4,302,920.84
Taxes paid	15,768,828.15	1,171,013.71
Other cash paid in connection with	2,999,618.02	553,940.98
operating activities
Sub-total of cash outflow from	347,131,318.01	20,345,573.22
operating activities
Net cash flow from operating activities	54,921,961.51	60,805,281.04
2. Cash flow from investing activities:
Cash received from disposal of
investments
Cash received on obtaining	642,405.29
investment income
Net cash received from disposal of
fixed assets, intangible assets and	362.15
other long-term assets
Net cash received from disposal of
subsidiaries and other business
units
Other cash received in connection	598,000,000.00
with investing activities
Sub-total of cash inflow from investing	598,642,767.44
activities
Cash paid for purchase and
construction of fixed assets,	8,760.00
intangible assets and other

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long-term assets
Cash paid for acquisition of
investments
Net cash paid for acquisition of
subsidiaries and other business
units
Other cash paid in connection with	586,000,000.00	73,310,000.00
investing activities
Sub-total of cash outflow from	586,008,760.00	73,310,000.00
investing activities
Net cash flow from investing activities	12,634,007.44	-73,310,000.00
3. Cash flow from financing activities:
Cash received from investments	6,906,452.66
Cash received on drawdown of
loans
Other cash received in connection	94,391,222.39	13,373,000.00
with financing activities
Sub-total of cash inflow from financing	101,297,675.05	13,373,000.00
activities
Cash paid for repayment of
borrowings
Cash paid for dividend or profit
distribution or interest payment
Other cash paid in connection with	60,823,795.09	78,570.07
financing activities
Sub-total of cash outflow from	60,823,795.09	78,570.07
financing activities
Net cash flows from financing activities	40,473,879.96	13,294,429.93
4. Effect on cash and cash equivalents
due to change in foreign currency
exchange rate
5. Net increase in cash and cash	108,029,848.91	789,710.97
equivalents
Add: Balance of cash and cash
equivalents at the beginning	60,656,839.66	18,997.55
of the period
6. Balance of cash and cash equivalents	168,686,688.57	808,708.52
at the end of the period

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II. Adjustments to the financial statements

1. Details of adjustments for the initial adoption of the new standard on leases in the financial statements as at the beginning of the year 2021

As long as the Company has implemented the first adoption of new lease standard starting from 2021, it is required to fill out this form unless there is no adjustment was made in the balance sheet at the beginning of the year.

√ Applicable □ N/A

Whether the items of the balance sheet at the beginning of the year shall be adjusted √ Yes □ No

The explanation on reason for not required adjusting the items of the balance sheet at the beginning of the year Consolidated balance sheet

			Unit: RMB
Item	31 December 2020	1 January 2021	Adjustments
Current assets:
Cash and bank balances	1,941,313,168.04	1,941,313,168.04
Settlement provisions
Borrowed funds
Trading financial assets	750,007,662.48	750,007,662.48
Derivative financial assets
Bills receivable	4,759,879.29	4,759,879.29
Trade receivables	1,946,829,284.49	1,946,829,284.49
Receivables financing
Prepayments	101,767,749.65	101,767,749.65
Premium receivable
Receivables from reinsurers
Reinsurance contract reserves receivable
Other receivables	146,475,000.58	146,475,000.58
Including: Interest receivable
Dividend receivable
Purchase of repo financial assets
Inventories	2,784,103,976.38	2,784,103,976.38
Contract assets	1,640,000,224.71	1,640,000,224.71
Assets classified as held-for-sale
Non-current assets due within one year
Other current assets	4,785,136.52	4,597,527.31	-187,609.21

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Total current assets	9,320,042,082.14	9,319,854,472.93	-187,609.21
Non-current assets:
Disbursement of loans and advances
Debt investments
Other debt investments
Long-term receivables	110,304,194.00	110,304,194.00
Long-term equity investments	163,000,470.68	163,000,470.68
Other investments in equity instruments	154,829,413.56	154,829,413.56
Other non-current financial assets
Investment properties	13,630,176.99	13,630,176.99
Fixed assets	453,057,913.67	453,057,913.67
Construction in progress
Productive biological assets
Oil & gas assets
Right of use assets		27,315,839.14	27,315,839.14
Intangible assets	131,559,390.41	131,559,390.41
Development expenses	38,441,116.25	38,441,116.25
Goodwill	1,505,197,394.63	1,505,197,394.63
Long-term prepaid expenses	9,122,916.12	9,122,916.12
Deferred tax assets	152,677,767.07	152,677,767.07
Other non-current assets
Total non-current assets	2,731,820,753.38	2,759,136,592.52	27,315,839.14
Total assets	12,051,862,835.52	12,078,991,065.45	27,128,229.93
Current liabilities:
Short-term borrowings	722,279,881.25	722,279,881.25
Borrowings from central bank
Borrowed funds
Trading financial liabilities
Derivative financial liabilities
Bills payables	552,013,491.84	552,013,491.84
Trade payables	2,373,036,760.20	2,373,036,760.20
Receipt in advance
Contract liabilities	1,756,268,042.19	1,756,268,042.19
Funds from selling and repurchasing financial assets

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Customer bank deposits and amounts due to banks
and other financial institutions
Customer brokerage deposits
Funds from securities underwriters
Staff remuneration payable	495,368,850.46	495,368,850.46
Taxes payable	188,127,416.31	188,127,416.31
Other payables	222,115,124.98	222,115,124.98
Including: Interest payable
Dividend payable
Fees and commission payable
Reinsurance accounts payable
Liabilities classified as held-for-sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities	6,309,209,567.23	6,309,209,567.23
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings
Bonds payables
Including: preferential shares
perpetual notes
Lease liabilities		27,128,229.93	27,128,229.93
Long-term payables
Long-term staff remuneration payable
Estimated liabilities
Deferred income	20,061,059.53	20,061,059.53
Deferred tax liabilities	36,724,613.52	36,724,613.52
Other non-current liabilities
Total non-current liabilities	56,785,673.05	83,913,902.98	27,128,229.93
Total liabilities	6,365,995,240.28	6,393,123,470.21	27,128,229.93
Owners' equity:
Share capital	975,768,827.00	975,768,827.00
Other equity instruments
Including: preferential shares

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perpetual notes
Capital reserve	2,406,151,454.21	2,406,151,454.21
Less: Treasury stock	160,204,801.44	160,204,801.44
Other comprehensive income	98,993,052.24	98,993,052.24
Special reserve
Surplus reserve	34,958,025.22	34,958,025.22
General risk provisions
Retained profits	2,229,478,383.79	2,229,478,383.79
Total owners' equity attributable to parent company	5,585,144,941.02	5,585,144,941.02
Minority shareholder's interest	100,722,654.22	100,722,654.22
Total owners' equity	5,685,867,595.24	5,685,867,595.24
Total liabilities and owners' equity	12,051,862,835.52	12,078,991,065.45	27,128,229.93

The explanation of adjustments

The Company implemented the "Accounting Standards for Business Enterprises No. 21 - Leases" revised and issued by the Ministry of Finance as at 7 December 2018 (hereinafter referred to as the "New Standards on Leases") from 1 January 2021. The Company adjusted the amount of retained earnings and other relevant items in the financial statements at the beginning of the year for the initial adoption of the New Standards on Leases based on the cumulative impact of the first implementation of the new leases accounting standard but had not adjust any comparable financial information. For the operating leases that occurred before the initial adoption of the New Standards on Leases, the Company remeasured its lease liability on the date of initial adoption of the New Standards on Leases based on the present value of the remaining lease payments discounted at the incremental borrowing rate on the date of initial adoption. Based on the amount equal to the lease liability, the right-of-use assets is necessary adjusted with reference to the amount of rental prepayment.

Balance sheet of the parent company

			Unit: RMB
Item	31 December 2020	1 January 2021	Adjustments
Current assets:
Cash and bank balances	60,656,839.66	60,656,839.66
Trading financial assets	251,195,662.48	251,195,662.48
Derivative financial assets
Bills receivable
Trade receivables	67,707,014.64	67,707,014.64
Receivables financing
Prepayments	169,280.31	169,280.31
Other receivables	119,492,209.92	119,492,209.92
Including: Interest receivable

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Dividend receivable	17,450,338.26	17,450,338.26
Inventories	314,866,835.38	314,866,835.38
Contract assets
Assets classified as held-for-sale
Non-current assets due within one year
Other current assets	2,417,532.14	2,417,532.14
Total current assets	816,505,374.53	816,505,374.53
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments	2,788,806,117.37	2,788,806,117.37
Other investments in equity instruments	33,902,624.00	33,902,624.00
Other non-current financial assets
Investment properties
Fixed assets	105,668.24	105,668.24
Construction in progress
Productive biological assets
Oil & gas assets
Right of use assets		202,708.35	202,708.35
Intangible assets	12,601.00	12,601.00
Development expenses
Goodwill
Long-term prepaid expenses	98,587.25	98,587.25
Deferred tax assets	16,082,174.29	16,082,174.29
Other non-current assets
Total non-current assets	2,839,007,772.15	2,839,210,480.50	202,708.35
Total assets	3,655,513,146.68	3,655,715,855.03	202,708.35
Current liabilities:
Short-term borrowings
Trading financial liabilities
Derivative financial liabilities
Bills payables	29,532,881.97	29,532,881.97
Trade payables	363,473,041.78	363,473,041.78

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Receipt in advance
Contract liabilities	61,786,437.12	61,786,437.12
Staff remuneration payable	17,369,340.87	17,369,340.87
Taxes payable	12,519,926.27	12,519,926.27
Other payables	29,357,609.93	29,357,609.93
Including: Interest payable
Dividend payable
Liabilities classified as held-for-sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities	514,039,237.94	514,039,237.94
Non-current liabilities:
Long-term borrowings
Bonds payables
Including: preferential shares
perpetual notes
Lease liabilities		202,708.35	202,708.35
Long-term payables
Long-term staff remuneration payable
Estimated liabilities
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities		202,708.35	202,708.35
Total liabilities	514,039,237.94	514,241,946.29	202,708.35
Owners' equity:
Share capital	975,768,827.00	975,768,827.00
Other equity instruments
Including: preferential shares
perpetual notes
Capital reserve	2,243,077,639.50	2,243,077,639.50
Less: Treasury stock	160,204,801.44	160,204,801.44
Other comprehensive income	-21,108,077.44	-21,108,077.44
Special reserve

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Surplus reserve	34,958,025.22	34,958,025.22
Retained profits	68,982,295.90	68,982,295.90
Total owners' equity	3,141,473,908.74	3,141,473,908.74
Total liabilities and owners' equity	3,655,513,146.68	3,655,715,855.03	202,708.35

The explanation of adjustments

The Company implemented the "Accounting Standards for Business Enterprises No. 21 - Leases" revised and issued by the Ministry of Finance as at 7 December 2018 (hereinafter referred to as the "New Standards on Leases") from 1 January 2021. The Company adjusted the amount of retained earnings and other relevant items in the financial statements at the beginning of the year for the initial adoption of the New Standards on Leases based on the cumulative impact of the first implementation of the new leases accounting standard but had not adjust any comparable financial information. For the operating leases that occurred before the initial adoption of the New Standards on Leases, the Company remeasured its lease liability on the date of initial adoption of the New Standards on Leases based on the present value of the remaining lease payments discounted at the incremental borrowing rate on the date of initial adoption. Based on the amount equal to the lease liability, the right-of-use assets is necessary adjusted with reference to the amount of rental prepayment.

2. The explanation on adjustments to the comparative figures for the previous periods in relation to the initial adoption of the new lease standard since 2021

□ Applicable √ N/A

Note: When the listed company has retrospectively adopted the impact of the initial adoption of the new accounting standards and adjusted the comparative figures for the previous periods, it shall disclose the name of the adjusted financial statement items and the adjusted amount.

III. Audit Report

Whether the first quarterly report is audited □ Yes √ No

The first quarterly report of the Company is unaudited.

The Board of Digital China Information Service Company Ltd.

Chairman: Guo Wei

27 April 2021

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