（於百慕達註冊成立之有限公司） (Stock Code: 00861) （股份代號：00861） NOTIFICATION LETTER 通知信函 26 September 2025 Dear Non-Registered Holder(s)(Note 1), Digital China Holdings Limited (the "Company") (Incorporated in Bermuda with limited liability) （神州數碼控股有限公 司* ） Notification of publication of 2025 Interim Report of the Company (the "Current Corporate Communication") The Chinese and English versions of the Current Corporate Communication are available on the websites of the Company at www.dcholdings.com (the "Website of the Com ...

(Incorporated in Bermuda with limited liability) （神州數碼控股有限公 司* ） （於百慕達註冊成立之有限公司） (Stock Code: 00861) （股份代號：00861） NOTIFICATION LETTER 通知信函 Dear Registered Shareholder(s), Note: Corporate Communication(s) refer to any document(s) issued or to be issued by the Company for information or action of any holders of securities of the Company, including but not limited to annual reports and summary financial reports (where applicable), interim reports and summary interim reports (where applicable), notices of meeti ...

（股份代號：00861） （於百慕達註冊成立之有限公司） （神州數碼控股有限公 司* ） 各位股東： 選擇公司通訊之收取方式及語言版本 根據香港聯合交易所有限公司證券上市規則第2.07A及2.07B條及Digital China Holdings Limited（神州數碼 控股有限公司*）（「本公司」）之公司細則，本公司將向 閣下提供若干方案，以供選擇收取本公司日後之 公司通訊（「公司通訊」），即本公司刊發或將予刊發以供其任何證券持有人參照或採取行動之任何文件， 包括但不限於：(a)董事會報告、年度賬目連同獨立核數師報告及（如適用）財務摘要報告；(b)中期報告及 （如適用）中期摘要報告；(c)會議通告；(d)上市文件；(e)通函；及(f)代表委任表格。 閣下可選擇： 為支持保護環境盡量減少用紙及節省印刷及郵遞費用，本公司建議 閣下選擇上文的(1)，收取所有日後 公司通訊之網上版本。在作出上述選擇時，請 閣下於隨本函附上的回條（「回條」）上適當空格內劃上「✓」 號，並在回條上簽署，然後將回條寄回或親身交回本公司香港股份過戶登記分處（「香港股份過戶登記分 處」），即卓佳證券登記有限公司，地址為香港夏愨道16號遠東 ...

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 7,865,449,000, representing a 12.2% increase from RMB 7,014,343,000 in the same period of 2024[3] - Gross profit for the same period was RMB 1,032,540,000, up from RMB 957,458,000, indicating an increase of 7.8%[3] - The net loss for the period was RMB 68,496,000, compared to a loss of RMB 49,340,000 in 2024, reflecting a 38.8% increase in losses[3] - Basic earnings per share for the period were RMB 0.0103, compared to RMB 0.0073 in the previous year, marking a 41.1% increase[3] - The total comprehensive income for the period was RMB 27,409 thousand, a significant improvement from a total comprehensive loss of RMB 49,814 thousand in the previous period[9] - The group reported a pre-tax loss of RMB 471,895,000, compared to RMB 441,235,000 in the same period last year, indicating an increase in losses[26] - Basic earnings per share for the six months ended June 30, 2025, were RMB 15,207,000 (up from RMB 10,808,000 in 2024), representing a year-over-year increase of approximately 40.1%[31] Assets and Liabilities - Non-current assets totaled RMB 8,310,837,000 as of June 30, 2025, compared to RMB 8,257,237,000 at the end of 2024, showing a slight increase of 0.6%[6] - Current assets increased to RMB 14,862,495,000 from RMB 13,725,725,000, representing an 8.3% growth[6] - Total liabilities increased to RMB 11,808,888,000 from RMB 9,872,017,000, indicating a 19.6% rise[8] - The total equity attributable to shareholders was RMB 5,766,865,000, down from RMB 5,831,431,000, reflecting a decrease of 1.1%[8] - As of June 30, 2025, total equity amounted to RMB 9,366,293 thousand, a decrease from RMB 9,507,454 thousand at the beginning of the period[9] - The company’s total asset of approximately RMB 23.173 billion and a total liability of about RMB 13.807 billion as of June 30, 2025[78] Cash Flow and Financing - The company reported a net profit of RMB 15,207 thousand during the period, compared to a net loss of RMB 68,496 thousand in the previous period[9] - For the six months ended June 30, 2025, the net cash used in operating activities was RMB (2,709,696) thousand, compared to RMB (1,565,592) thousand for the same period in 2024, indicating a significant increase in cash outflow[12] - The financing activities generated a net cash inflow of RMB 1,364,635 thousand in the first half of 2025, compared to RMB 660,590 thousand in the same period of 2024, showing a substantial increase in financing[12] - The company’s total bank loans increased to RMB 3,059,588 thousand in the first half of 2025, compared to RMB 1,451,571 thousand in the same period of 2024, indicating a rise in leverage[12] - The company has committed capital expenditures of RMB 37,753,000 for land and buildings, an increase from RMB 20,419,000 in 2024, reflecting ongoing investment in infrastructure[42] Revenue Segments - Contract revenue from customers amounted to RMB 7,722,792,000, up 12.4% from RMB 6,868,016,000 in the previous year[24] - Software development and technical services revenue increased to RMB 2,914,169,000, a rise of 11.5% from RMB 2,614,386,000[23] - E-commerce supply chain business revenue surged to RMB 2,093,480,000, reflecting a significant increase from RMB 1,546,481,000, marking a growth of 35.4%[23] - The operating segment "Big Data Products and Solutions" generated revenue of RMB 1,430,144 thousand in 2025, up from RMB 1,277,132 thousand in 2024, marking an increase of 12%[21] - The revenue from the big data products and solutions segment was RMB 1.430 billion, a 12% increase year-on-year[50] - The software and operation services segment generated RMB 2.448 billion in revenue, marking a 13% increase compared to the previous year[50] - The revenue from the traditional services segment was RMB 3.987 billion, reflecting an 11% increase year-on-year[50] Research and Development - Research and development costs amounted to RMB 258,242,000, a decrease from RMB 282,488,000 in the previous year[26] - Research and development expenses for the period amounted to RMB 305 million, reflecting the company's commitment to innovation[57] - The company holds a total of 3,290 intellectual property rights, including software copyrights and patents, reinforcing its competitive edge in technology[57] - The company is committed to increasing R&D investment in smart supply chain scenarios, continuously enriching its intelligent application suite for rapid deployment in client supply chains[62] - During the reporting period, the company established a joint laboratory with Peking University to enhance core competitiveness in AI and data technologies[72] Employee and Shareholder Information - Employee costs for the six months ended June 30, 2025, were approximately RMB 2.04 billion, representing a 16.69% increase from RMB 1.74 billion for the same period in 2024[89] - The group has 20,254 full-time employees as of June 30, 2025, an increase from 17,307 employees as of June 30, 2024[89] - As of June 30, 2025, the total equity held by the directors and CEO amounts to approximately 20.66% of the total equity[96] - Major shareholders include Guangzhou Urban Construction Investment Group Co., Ltd., holding approximately 19.80% of the total equity[99] - Kosalaki Investments Limited holds approximately 6.86% of the total equity, while Dragon City International Investment Limited holds about 9.86%[99] Strategic Initiatives and Partnerships - The company has established a comprehensive smart supply chain service covering warehousing, transportation, e-commerce operations, and cross-border trade, driving value growth through efficient logistics systems[58] - The company has signed strategic cooperation agreements with four enterprises, expecting to exceed 10 clients in the full value chain cooperation by the end of the year[59] - The company signed a strategic cooperation agreement with SF Express and YTO Express to enhance logistics capabilities in the express delivery sector[73] - The company aims to replicate its successful hotel industry experience in international markets, expanding its overseas business[68] Share Options and Dividends - The board has decided not to declare any interim dividend for the six months ending June 30, 2025, compared to a dividend of HKD 0.01 per share for the same period in 2024[95] - The total number of unexercised share options as of June 30, 2025, is 54 million for one director, with additional options for other directors totaling 4 million[96] - The options granted under the 2011 Share Option Scheme do not confer any dividend or voting rights to the grantees[107] - No share option expenses were recognized in the six months ended June 30, 2025, compared to RMB 1,129,000 in the six months ended June 30, 2024[107]

Core Insights - The article highlights the strategic brand and operational upgrades of KJ, a subsidiary of Shenzhou Holdings, aiming to position itself as a technology-driven industry supply chain expert [1][2][4] Group 1: Brand Positioning and Strategy - KJ has introduced a new brand positioning focused on becoming a technology-driven industry supply chain expert, emphasizing deep understanding of customer needs and industry pain points [1] - The company aims to enhance its supply chain service capabilities through an AI-driven core engine and a "customer + ecosystem" dual-drive model [1][2] Group 2: Technological Innovations - KJ has developed innovative technologies such as "full tracking management" to address industry challenges and has successfully penetrated the telecommunications market [2] - The company has implemented "micro-innovations" like order forecasting and pre-sale strategies to support major fast-moving consumer goods (FMCG) companies during high-demand events like "Double 11" [2] Group 3: Service Offerings and Ecosystem Development - KJ provides end-to-end lifecycle services, leveraging digital analysis capabilities and timely customer response to reduce costs and enhance efficiency for clients [1][2] - The company has established a comprehensive knowledge base across various industries, enabling the creation of customized solutions that meet specific client needs [2] Group 4: AI Integration and Future Plans - KJ is leveraging Shenzhou Holdings' "Data x AI" strategy to combine industry knowledge with fulfillment data, resulting in the development of a supply chain-specific large model [4] - The introduction of the "3+N" architecture for AI-driven intelligent agents aims to bridge the gap between large models and practical enterprise applications [4][6] Group 5: Leadership and Vision - The President and COO of Shenzhou Holdings emphasized the importance of integrating AI capabilities with industry knowledge to drive growth in the AI era [6] - KJ is positioned to be a key player in advancing smart supply chain development in China as it continues to enhance its intelligent service offerings [6]

Core Insights - The launch of the self-developed supply chain intelligent agent "Xiao Jin" by Digital China Holdings' subsidiary, KJ Supply Chain, aims to enhance efficiency in data querying, intelligent decision-making, and customer service [1][2] - The global generative AI market is projected to reach $10 trillion, indicating a strong demand for intelligent transformation across industries, particularly in supply chains [2] Group 1 - "Xiao Jin" is part of Digital China's ongoing "Data x AI" strategy, leveraging the Yanyun Infinity platform to empower core supply chain business scenarios [1] - The intelligent agent has shown significant improvements in order completion rates, warehouse management efficiency, and a reduction in customer complaints during its deployment at KJ's flagship warehouse in Kunshan [2] - The core issue with general large models is their disconnect from actual business needs, which "Xiao Jin" aims to address by integrating industry-specific knowledge and real-time business data [1][2] Group 2 - The development of "Xiao Jin" is based on over 20 years of operational experience and technical reserves, enabling it to understand logistics data and industry pain points effectively [2] - The future competition in the AI space will focus on the ability to industrialize applications that solve real business problems, rather than just the capabilities of large models [2] - KJ Supply Chain plans to collaborate with logistics companies, e-commerce platforms, and manufacturers to expand the ecosystem of supply chain intelligent agents, leading to a new era of "full-link intelligent collaboration" in the supply chain industry [3]

Core Insights - The launch of the supply chain intelligent agent "Xiao Jin" by KJ Technology aims to address the pain points of enterprise-level applications of general large models, focusing on enhancing efficiency across the entire supply chain process [1][3][11] - "Xiao Jin" is part of Shenzhou Holdings' strategy to elevate its "Data x AI" approach, leveraging the "Yanyun Infinity" platform to empower core business scenarios in supply chain management [1][5] Group 1: AI Application Challenges - A report by MIT indicates that while 90% of employees frequently use general large models, only 5% of enterprises achieve quantifiable business returns, with 95% of investments yielding no results, a phenomenon termed "shadow AI" [3][10] - The disconnect between general large models and actual business needs is identified as a core issue, as these models fail to convert insights into actionable solutions [3][5] Group 2: Features of "Xiao Jin" - "Xiao Jin" is designed with a "3+N" architecture, which includes three core intelligent agents that address common enterprise needs: a data assistant, a decision assistant, and a customer assistant, significantly improving efficiency in data queries and decision-making processes [6][10] - The intelligent agents can enhance data query efficiency by 90%, improve decision analysis efficiency by 70%, and reduce customer service workload by 50% [6][8] Group 3: Future Development and Commercialization - KJ Technology plans to implement a pilot program for "Xiao Jin" in 2025, targeting benchmark clients in retail, 3C, and fast-moving consumer goods sectors, with a focus on providing customized AI services [10][12] - The company aims to build a large-scale cluster of vertical intelligent agents covering various supply chain scenarios, transforming traditional processes into AI-driven operations [9][10] Group 4: Industry Impact - The global generative AI market is projected to reach $10 trillion, highlighting the urgent demand for intelligent transformation across industries, particularly in supply chain management [10][12] - The introduction of "Xiao Jin" is expected to shift the supply chain from a reactive to a proactive model, enabling smarter inventory management and operational efficiency [12]

Group 1 - The intelligent agent "Xiao Jin" launched by Shenzhou Holdings' KJ aims to enhance supply chain efficiency through natural language interaction, automated report generation, and 24/7 online service [3] - The intelligent agent has completed a pilot in the flagship warehouse in Kunshan, resulting in improved order punctuality and reduced customer complaints [3] - The global generative AI market is projected to reach $10 trillion by 2025, driven by the urgent demand for intelligent transformation across various industries, particularly in the supply chain sector [1] Group 2 - The "3+N" architecture of the intelligent agent includes three general agents that cover 80% of query scenarios, improving daily data retrieval efficiency by 90% [1] - The N-specific agents target roles such as product design and operational analysis, compressing processes like demand breakdown, data collection, and document writing by over 50% [1] - Despite the market potential, the transition from "technical prototype to industrial application" remains a common challenge across industries [1]

Core Insights - Increasing employee usage of AI tools is not translating into cost savings or sales growth for companies, with 95% of generative AI investments yielding little to no return and half of the projects failing [1] - The phenomenon of "shadow AI" is prevalent, where employees utilize AI without clear visibility or understanding of its impact on business processes [1] - Shenzhou Holdings has launched a new smart supply chain strategy and introduced the supply chain intelligent agent "Xiao Jin" to address the challenge of integrating general AI models into enterprise-specific applications [1][3] Company Overview - Shenzhou Digital, established in 2000, offers services in IT infrastructure, integrated IT services, smart city services, and big data services, while KJ was founded in 2003 focusing on supply chain software [3] - Shenzhou Holdings aims to integrate its AI capabilities with KJ's 20 years of industry expertise to drive the intelligent transformation of supply chains [3] Product Features - The "Xiao Jin" intelligent agent suite includes three core assistants: Data Assistant, Decision Assistant, and Customer Assistant, enhancing efficiency in various tasks by up to 90% for data queries and 70% for decision-making processes [4] - The intelligent agents cover multiple roles, improving efficiency in tasks such as bid writing and product design by 70% and 50% respectively [4] Business Model and Strategy - KJ has developed a comprehensive service model that integrates trade and logistics, providing end-to-end, visual, and traceable services to clients [4] - The company has established a sales network with over 30,000 partners across 1,000 cities, leveraging AI and big data to transform supply chains from passive tools to proactive decision-making systems [4] Strategic Partnerships - During a recent conference, KJ signed strategic cooperation agreements with four industry leaders to provide integrated supply chain solutions and participate in digital transformation [5] - KJ has initiated the "Supply Chain + AI Ecosystem Alliance" with various academic and industry partners to foster collaboration and innovation in the supply chain sector [5] Future Directions - The alliance will focus on three main areas: accelerating innovation, creating a value community to break data silos, and building a new ecosystem for knowledge sharing and talent development [5] - The goal is to achieve cross-enterprise and cross-industry collaboration to maximize the value of the entire supply chain [5]

Group 1 - The core viewpoint of the news is that Shenzhou Holdings KJ has unveiled a series of achievements in the smart supply chain sector during the "NextChain 2025 Smart Supply Chain Innovation Conference" [1][3] - The company has launched a new smart supply chain strategy and signed strategic cooperation agreements with four industry benchmark enterprises [1][3] - The company has initiated the "Supply Chain + AI Ecosystem Alliance" with various partners from academia and industry to enhance collaboration and innovation in the supply chain sector [1][4] Group 2 - Shenzhou Holdings' President and COO, Cai Yinghua, emphasized a dual-driven strategy of "customer strategy + ecosystem strategy" to integrate AI capabilities with over 20 years of industry expertise in supply chain [3] - The newly introduced supply chain intelligent agent "Xiao Jin" is designed as an enterprise-level intelligent suite based on the "AI for Process" concept, featuring a "3+N" architecture for comprehensive scenario coverage [3] - The strategic cooperation agreements aim to provide end-to-end integrated solutions for supply chain digital transformation, establishing benchmark cases with the participating companies [3] Group 3 - The "Supply Chain + AI Ecosystem Alliance" will focus on three main directions: accelerating innovation through collaboration, creating a value community to break data silos, and building a future ecosystem for shared knowledge and talent development [4] - The alliance includes participation from various organizations such as the China Logistics and Purchasing Federation and Beijing Jiaotong University, aiming to validate cutting-edge technologies in real-world scenarios [4] - The initiative seeks to promote industry standards, knowledge sharing, and the cultivation of talent to create an open and win-win smart supply chain ecosystem [4]