Solution: What is the relationship between Digital China Holdings Limited and Digital China (China) Limited?

The Ministry of Finance recently imposed an administrative penalty on Digital China (China), a subsidiary of Digital China (0086 1). HK), and ruled that the company has violated the rules in government procurement and prohibited it from participating in government procurement activities within three years. On February 7th, Digital China issued a clarification announcement, saying that the Group was currently reconsidering the penalty because Digital China (China) had fulfilled all applicable procedures in the bidding process of government procurement projects for purchasing information technology products. Digital China (China) is one of the wholly-owned subsidiaries of the company in Chinese mainland, and the government business is not its main business. The total sales of Digital China (China) to government agencies in China accounted for less than 0.4% of the total sales of the Group in the same period. The Board of Directors expects that the fine will not have any significant impact on the sales and distribution business or other businesses of the Group.