HONG KONG, CHINA- EQS - 31 January 2019 - Digital China HoldingsLimited (the "Company", togetherwith its subsidiaries, the "Group"; Stock Code: 00861.HK) has announced itsperformance forecast tonight that, based on its preliminary review of therelevant unaudited consolidated management accounts of the Group, it isexpected to record a profit attributable to equity holders of the Company inthe range of approximately HK$100 million to HK$200 million for the year ended31 December 2018.

Based on the relevant information currentlyavailable to the Company, the Board considers that the expected turnaround fromloss to profit of the Group was mainly due to the improvement of the overallperformance of the Group's business operation and the increase in costeffectiveness, especially of the Sm@rt Logistics business and Sm@rt Citybusiness; and the net gains from certain non-recurring items.