A8 New Media Group Limited A8新媒體集團有限公司

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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.

A8 New Media Group LimitedA8新媒體集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 800)

ANNOUNCEMENT OF THE INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021

FINANCIAL HIGHLIGHTS

• Forthesixmonthsended30June2021, theprofitattributabletoequityholdersof theCompany amounted to approximatelyRMB43.5million,while itwas a profit ofapproximatelyRMB44.7millionforthecorrespondingperiodin2020.

• For thesixmonthsended30June2021, thegross revenueof theGroupamounted toapproximatelyRMB43.1million,representinganincreaseofapproximately1.4%fromapproximatelyRMB42.5millionforthecorrespondingperiodin2020.

• Forthesixmonthsended30June2021,theoverallgrossmarginratiooftheGroupwasapproximately77.7%,while itwasapproximately75.6%for thecorrespondingperiodin2020.

• Strongbalancesheet,withcashandcashequivalentsandhighlyliquidshort-termassetsof approximatelyRMB535.5million andnet assetsof approximatelyRMB1,491.1millionasof30June2021.

Theboardofdirectors (the“Board”)ofA8NewMediaGroupLimited (the“Company”) announces the unaudited interim condensed consolidated financial information of theCompanyand its subsidiaries (collectively referred toas the“Group”) for the sixmonthsended30June2021.Theunauditedinterimcondensedconsolidatedfinancialinformationhasnot been reviewedby theCompany’s auditorsbut theyhavebeen reviewedby the auditcommitteeoftheCompany.

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INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSSFor the six months ended 30 June 2021

For the six months ended 30 June

2021 2020(Unaudited) (Unaudited)

Notes RMB’000 RMB’000

REVENUE 5 43,149 42,451

Costofservicesprovided (9,610) (10,339)

Grossprofit 33,539 32,112

Otherincomeandgains,net 5 38,816 30,599Sellingandmarketingexpenses (1,784) (2,662)Administrativeexpenses (14,341) (16,334)Otherexpenses,net (26,671) (11,364)Financecosts 6 (634) (2,322)Shareofprofitsandlossesofassociates,net 18,388 15,056

PROFIT BEFORE TAX 7 47,313 45,085Incometaxexpense 8 (5,323) (3,181)

PROFIT FOR THE PERIOD 41,990 41,904

Attributableto: OwnersoftheCompany 43,451 44,718 Non-controllinginterests (1,461) (2,814)

41,990 41,904

EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY 10

Basic(RMBpershare) 1.61 cents 1.66cents

Diluted(RMBpershare) 1.61 cents 1.66cents

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INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the six months ended 30 June 2021

For the six months ended 30 June

2021 2020(Unaudited) (Unaudited)

RMB’000 RMB’000

PROFIT FOR THE PERIOD 41,990 41,904

OTHER COMPREHENSIVE INCOME/(LOSS)

Other comprehensive income/(loss) that may be reclassified to profit or loss in subsequent periods: Exchangedifferencesontranslationoffinancialstatements (3,914) 25

Other comprehensive income/(loss) that will not be reclassified to profit or loss in subsequent periods: Changesinfairvalueoffinancialassetsatfairvalue throughothercomprehensiveincome,netoftax (44,178) 60,048

OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD, NET OF TAX (48,092) 60,073

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD (6,102) 101,977

Attributableto: OwnersoftheCompany (4,641) 104,791 Non-controllinginterests (1,461) (2,814)

(6,102) 101,977

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INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION30 June 2021

30 June 2021

31December2020

(Unaudited) (Audited)Notes RMB’000 RMB’000

NON-CURRENT ASSETSProperty,plantandequipment 11 123,152 127,137Investmentproperties 411,000 422,000Right-of-useassets 12,182 12,708Goodwill 9,278 9,278Intangibleassets 1,536 1,901Investmentsinassociates 291,149 272,761Financialassetsatfairvaluethroughprofitorloss 122,421 135,930Financialassetsatfairvaluethroughother comprehensiveincome 175,736 234,641Deferredtaxassets 424 609

Totalnon-currentassets 1,146,878 1,216,965

CURRENT ASSETSTradereceivables 12 1,422 4,174Prepayments,otherreceivablesandotherassets 5,841 10,074Financialassetsatfairvaluethroughprofitorloss 44,366 39,206Restrictedcashbalancesandpledgeddeposits 64 39,920Cashandcashequivalents 491,116 448,434

Totalcurrentassets 542,809 541,808

CURRENT LIABILITIESTradepayables 13 7,593 8,589Otherpayablesandaccruals 49,616 50,555Interest-bearingbankborrowings 5,000 46,000Taxpayable 18,904 17,861Leaseliabilities 132 521

Totalcurrentliabilities 81,245 123,526

NET CURRENT ASSETS 461,564 418,282

TOTAL ASSETS LESS CURRENT LIABILITIES 1,608,442 1,635,247

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30 June 2021

31December2020

(Unaudited) (Audited)Notes RMB’000 RMB’000

NON-CURRENT LIABILITIESDeferredtaxliabilities 117,076 137,930Deferredincome 300 600

Totalnon-currentliabilities 117,376 138,530

Netassets 1,491,066 1,496,717

EQUITYEquity attributable to owners of the CompanyIssuedcapital 14 22,831 22,818Reserves 1,469,571 1,473,774

1,492,402 1,496,592Non-controlling interests (1,336) 125

Totalequity 1,491,066 1,496,717

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION30 June 2021

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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

1. CORPORATE INFORMATION

A8NewMediaGroupLimited(the“Company”)isalimitedliabilitycompanyincorporatedintheCaymanIslands.The registeredofficeaddressof theCompany isCricketSquare,HutchinsDrive,P.O.Box2681,GrandCayman,KY1-1111,CaymanIslands.

Duringtheperiod,theCompanyanditssubsidiaries(collectivelyreferredtoasthe“Group”)wereinvolvedinthefollowingprincipalactivities:

• provisionofdigitalentertainmentservices

• propertyinvestment

TherewerenosignificantchangesinthenatureoftheGroup’sprincipalactivitiesduringtheperiod.

2. BASIS OF PREPARATION

Theunauditedinterimcondensedconsolidatedfinancialinformationforthesixmonthsended30June2021hasbeenprepared inaccordancewith InternationalAccountingStandard34 Interim Financial Reporting issuedby the InternationalAccountingStandardsBoard.Theunaudited interimcondensedconsolidatedfinancial informationdoesnot includeall the informationanddisclosures required in theannual financialstatements,andshouldbereadinconjunctionwiththeGroup’sannualconsolidatedfinancialstatementsfortheyearended31December2020.

3. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

Theaccountingpoliciesadopted in thepreparationof thecurrentperiod’sunaudited interimcondensedconsolidated financial informationare consistentwith thoseapplied in thepreparationof theGroup’sannualconsolidatedfinancialstatementsfor theyearended31December2020,exceptfor theadoptionofthe following revised InternationalFinancialReportingStandards (“IFRSs”) for the first time for thecurrentperiod’sfinancialinformation.

AmendmentstoIFRS9,IAS39,IFRS7,IFRS4 andIFRS16

Interest Rate Benchmark Reform — Phase 2

AmendmenttoIFRS16 Covid-19-Related Rent Concessions beyond 30 June 2021 (earlyadopted)

ThenatureandimpactoftherevisedIFRSsaredescribedbelow:

a. Amendments to IFRS9, IAS39, IFRS7, IFRS4and IFRS16address issuesnotdealtwith in thepreviousamendmentswhichaffect financial reportingwhenanexisting interest ratebenchmark isreplacedwithanalternative risk-free rate (“RFR”).Thephase2amendmentsprovideapracticalexpedient toallow theeffective interest rate tobeupdatedwithoutadjusting thecarryingamountoffinancialassetsandliabilitieswhenaccountingforchangesinthebasisfordeterminingthecontractualcashflowsoffinancialassetsandliabilities, if thechangeisadirectconsequenceoftheinterestratebenchmark reformand thenewbasis fordetermining the contractual cash flows is economicallyequivalent to thepreviousbasis immediatelypreceding the change. In addition, the amendmentspermitchangesrequiredbytheinterestratebenchmarkreformtobemadetohedgedesignationsandhedgedocumentationwithout thehedging relationshipbeingdiscontinued.Anygainsor losses thatcouldariseon transitionaredealtwith through thenormal requirementsof IFRS9 tomeasureandrecognisehedge ineffectiveness.Theamendmentsalsoprovidea temporary relief toentities fromhavingtomeettheseparatelyidentifiablerequirementwhenanRFRisdesignatedasariskcomponent.The reliefallowsanentity,upondesignationof thehedge, toassume that theseparately identifiablerequirement ismet, provided the entity reasonably expects theRFR risk component to become

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separately identifiablewithin thenext24months.Furthermore, theamendments requireanentity todiscloseadditional information toenableusersof financial statements tounderstand theeffectofinterestratebenchmarkreformonanentity’sfinancialinstrumentsandriskmanagementstrategy.Theamendmentsdidnothaveany impacton the financialpositionandperformanceof theGroupas theGroupdoesnothaveanyinterestratehedgingrelationships.

b. Amendment to IFRS16 issued inMarch2021extends theavailabilityof thepracticalexpedient forlessees toelectnot toapply leasemodificationaccounting for rentconcessionsarisingasadirectconsequenceofthecovid-19pandemicby12months.Accordingly,thepracticalexpedientappliestorentconcessionsforwhichanyreductioninleasepaymentsaffectsonlypaymentsoriginallydueonorbefore30June2022,providedtheotherconditionsforapplyingthepracticalexpedientaremet.Theamendmentiseffectiveretrospectivelyforannualperiodsbeginningonorafter1April2021withanycumulativeeffectof initiallyapplying theamendment recognisedasanadjustment to theopeningbalanceof retainedprofitsat thebeginningof thecurrentaccountingperiod.Earlierapplication ispermitted.Theamendmentdidnothaveany impacton thefinancialpositionandperformanceof theGroup.

4. OPERATING SEGMENT INFORMATION

Formanagementpurposes, theGroup isorganised intobusinessunitsbasedon theirservicesandhas tworeportableoperatingsegmentsasfollows:

(a) thedigital entertainment segment engages in theprovisionof (1)music-basedentertainment; (2)game-related services; and (3) filmand televisionproduction in thePeople’sRepublicofChina (the“PRC”);and

(b) theproperty investment segment invests inproperties for rentalandmanagement fee income in thePRC.

Managementmonitors theresultsof theGroup’soperatingsegmentsseparatelyfor thepurposeofmakingdecisionsaboutresourcesallocationandperformanceassessment.Segmentperformanceisevaluatedbasedon reportable segmentprofit,which isameasureofadjustedprofitbefore tax.Theadjustedprofitbeforetax ismeasuredconsistentlywith theGroup’sprofitbefore taxexcept thatbank interest income, financecosts(otherthaninterestonleaseliabilities)andcorporateandotherunallocatedincomeandexpenses,netareexcludedfromsuchmeasurement.

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Information regarding these reportable segments, togetherwith their relatedcomparative information ispresentedbelow.

For the six months ended 30 June

Digital entertainment Property investment Total2021 2020 2021 2020 2021 2020

(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Segmentrevenue 3,713 3,863 39,436 38,588 43,149 42,451Costofservicesprovided (2,001) (2,761) (7,609) (7,578) (9,610) (10,339)

Grossprofit 1,712 1,102 31,827 31,010 33,539 32,112

Segment results (6,329) 2,507 31,811 23,332 25,482 25,839

Reconciliation: Bankinterestincome 4,102 8,041 Financecosts(otherthan interestonleaseliabilities) (628) (2,300) Corporateandotherunallocated incomeandexpenses,net 18,357 13,505

Profit before tax 47,313 45,085Incometaxexpense (5,323) (3,181)

Profit for the period 41,990 41,904

Over90%of theGroup’s revenue fromexternalcustomers isderived from theGroup’soperations in thePRC,andnonon-currentassets(excludingfinancialinstruments)oftheGrouparelocatedoutsidethePRC.

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5. REVENUE, OTHER INCOME AND GAINS, NET

Ananalysisofrevenueandotherincomeandgains,netisasfollows:

For the six months ended 30 June

2021 2020(Unaudited) (Unaudited)

RMB’000 RMB’000

Revenue from contracts with customersDigitalentertainmentrevenue 3,713 3,863Propertymanagementservices 8,597 7,671

12,310 11,534

Revenue from other sourcesGrossrentalincomefrominvestmentpropertyoperatingleases: Variableleasepaymentsthatdonotdependonanindexorarate 816 747 Otherleasepayments,includingfixedpayments 30,023 30,170

30,839 30,917

43,149 42,451

Other income and gains, netBankinterestincome 4,102 8,041Fairvaluegainsonfinancialassetsatfairvalue throughprofitorloss,net – 14,515Foreignexchangedifferences,net – 4,963Dividendincomefromfinancialassetsatfairvaluethroughprofitorloss 29,057 138Dividendincomefromafinancialassetatfairvalue throughothercomprehensiveincome 3,000 808Others 2,657 2,134

38,816 30,599

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6. FINANCE COSTS

Ananalysisoffinancecostsisasfollows:

For the six months ended 30 June

2021 2020(Unaudited) (Unaudited)

RMB’000 RMB’000

Interestonbankloans 628 2,300Interestonleaseliabilities 6 22

634 2,322

7. PROFIT BEFORE TAX

TheGroup’sprofitbeforetaxisarrivedataftercharging/(crediting):

For the six months ended 30 June

2021 2020(Unaudited) (Unaudited)

RMB’000 RMB’000

Depreciationofproperty,plantandequipment 3,976 4,081Depreciationofright-of-useassets 525 525Amortisationofintangibleassets 365 364Amortisationofnetworkfilmsanddramas*** – 457Write-offoftradereceivables* – 2,678Write-offofotherpayables** – (81)Impairmentoftradereceivables* 8 24Impairmentofnetworkfilmsanddramasunderproduction* – 3,663Fairvaluegainonfinancialassetsatfairvalue throughprofitorloss** – (14,515)Fairvaluelossonfinancialassetsatfairvaluethroughprofitorloss* 13,509 –Changesinfairvalueofinvestmentproperties* 11,000 5,000Foreignexchangedifferences,net*/** 2,310 (4,963)

* Included in“Otherexpenses,net”on the faceof thecondensedconsolidatedstatementofprofitorloss.

** Included in“Other incomeandgains,net”on the faceof thecondensedconsolidatedstatementofprofitorloss.

*** Includedin“Costofservicesprovided”onthefaceofthecondensedconsolidatedstatementofprofitorloss.

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8. INCOME TAX EXPENSE

HongKongprofits taxhasbeenprovidedat the rateof16.5%(2020:16.5%)on theestimatedassessableprofitsarisinginHongKongduringtheperiod,exceptforonesubsidiaryoftheGroupwhichisaqualifyingentityunder the two-tieredprofits tax rates regime.The firstHK$2,000,000 (2020:HK$2,000,000)ofassessableprofitsof this subsidiary is taxedat8.25%and the remainingassessableprofitsare taxedat16.5%.

TheincometaxforthesubsidiariesoperatinginMainlandChinaiscalculatedattheprevailingtaxratesinthejurisdictionsinwhichthesubsidiariesoperate,exceptforasubsidiarywhichisentitledtoapreferentialrate.

Ananalysisoftheincometaxchargesforthesixmonthsended30June2021and2020isasfollows:

For the six months ended 30 June

2021 2020(Unaudited) (Unaudited)

RMB’000 RMB’000

Current—HongKong Chargefortheperiod 36 116

Current—PRC Chargefortheperiod 10,653 1,043 Underprovision/(overprovision)inprioryears 575 (614)Deferred (5,941) 2,636

Totaltaxchargefortheperiod 5,323 3,181

9. INTERIM DIVIDEND

Theboardofdirectors (the“Board”)doesnot recommend thepaymentofan interimdividendfor thesixmonthsended30June2021(sixmonthsended30June2020:Nil).

10. EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

Thecalculationofthebasicearningspershareamountsforthesixmonthsended30June2021isbasedontheprofit for theperiodattributable toequityholdersof theCompanyofRMB43,451,000 (sixmonthsended30June2020:RMB44,718,000),andtheweightedaveragenumberofordinarysharesinissueduringthesixmonthsended30June2021of2,702,863,000(sixmonthsended30June2020:2,693,536,000).

Noadjustmenthasbeenmade to thebasicearningsper shareamount for theperiodsended30June2021and2020 in respectofadilutionas the impactof shareoptionsoutstandinghadnodilutiveeffecton thebasicearningspershareamountpresented.

11. PROPERTY, PLANT AND EQUIPMENT

Duringtheperiod,theGroupacquiredproperty,plantandequipmentofRMB13,000(sixmonthsended30June2020:RMB16,000).Thereweredisposalsofproperty,plantandequipmentofRMB22,000(sixmonthsended30June2020:RMB97,000)duringthesixmonthsended30June2021.

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12. TRADE RECEIVABLES

Anageinganalysisofthetradereceivablesasattheendofthereportingperiod,basedontheinvoicedateandnetofprovisions,isasfollows:

30 June 2021

31December2020

(Unaudited) (Audited)RMB’000 RMB’000

Billed Within1month 476 273 1to2months 87 17 2to3months – 17 Over3months 181 236

744 543Unbilled 678 3,631

1,422 4,174

TheGrouphasnoformalcreditperiodcommunicatedtoitscustomersbutthecustomersusuallysettletheamountsduetotheGroupwithinaperiodof30to120days.

13. TRADE PAYABLES

Anageinganalysisofthetradepayablesasattheendofthereportingperiod,basedontheinvoicedate,isasfollows:

30 June 2021

31December2020

(Unaudited) (Audited)RMB’000 RMB’000

Within1month 26 8041to3months 10 1714to6months 38 57Over6months 7,519 7,557

7,593 8,589

Thetradepayablesarenon-interest-bearingandarenormallysettledon30-dayto180-dayterms.

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14. ISSUED CAPITAL

30 June 2021

31December2020

(Unaudited) (Audited)RMB’000 RMB’000

Authorised: 3,000,000,000(31December2020:3,000,000,000) ordinarysharesofHK$0.01each 26,513 26,513

Issued and fully paid: 2,702,406,628(31December2020:2,700,886,628) ordinarysharesofHK$0.01each 22,831 22,818

AsummaryofmovementsintheCompany’ssharecapitalisasfollows:

Number of Equivalent issued and Nominal nominalfully paid value of value of Equivalentordinary ordinary Share ordinary share

Notes shares shares premium shares premium TotalHK$’000 HK$’000 RMB’000 RMB’000 RMB’000

Asat1January2021 2,700,886,628 27,009 1,148,150 22,818 966,775 989,593Exerciseofshareoptions (a) 3,856,000 38 1,208 33 1,035 1,068CancellationofShares (b) (2,336,000) (23) (523) (20) (439) (459)

Asat30June2021 2,702,406,628 27,024 1,148,835 22,831 967,371 990,202

Notes:

(a) Thesubscriptionrightsattachingto3,856,000shareoptionswereexercisedatthesubscriptionpriceofHK$0.219per share, resulting in the issueof 3,856,000 shares for a total cash considerationofHK$845,000 (equivalent toRMB714,000).AnamountofRMB354,000was transferred from theemployeeshare-basedcompensationreservetosharecapitalupontheexerciseoftheshareoptions.

(b) Duringthesixmonthsended30June2021,theCompanyrepurchased2,336,000ordinaryshares(the“Share”) on the Stock Exchange ofHongKongLimited (the “Stock Exchange”) at a totalconsiderationofHK$546,000 (equivalent toRMB459,000),whichwerecancelledduring theperiod.The issuedsharecapitalof theCompanywas reducedby theparvalueof the repurchasedShares socancelled.The remainingof considerationpaidon the repurchaseof theSharesofHK$523,000(equivalenttoRMB439,000)werechargedtothesharepremiumaccount.

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MANAGEMENT DISCUSSION AND ANALYSIS

1. BUSINESS REVIEW AND OUTLOOK

Business Review for the First Half of 2021

In the first half of 2021, theGroup focuses on thepan-entertainmentmarketwhichconsistingofonlineliterature,onlinegames,filmandtelevision,shortvideos,music,etc.,alongwith the vertical development of Intellectual Property (“IP”)’s long chain,continuously integratesanddevelopsbetweenvarioussub-sectors,andprovidescontentsupport toeachother,achievingdevelopmentand realizationofhigh-quality IPand IPderivatives.TheGrouphasbeendevelopingindustrialparkbusiness,makingresearchontheproducts,marketsandfuturedevelopmenttrendsofneweconomicandtechnologicalfields soas tomakepreparation for investing in theneweconomicand technologicalfields.During the reporting period, facing changes in themarket environment andregulatorypolicies,and the impactof theCOVID-19pandemic, theGroupadjusted theoperatingstrategiesofvariousbusinesssegmentsactively,strengthenedcontrolofprojectinitiationandproject risk, enhancedcontrolof cost andexpense, aswell as adjustedinternalresourcesallocationandprojectsthatfallshortofexpectation,andtookrelevantmeasures toavoid thenegative impactof thepandemicon theoperationof the industryparkbusiness.

Game Business

The impactof the approvalofgame license restrictionshas continued and thegamelicensewill continue tobe scarce resources.Facing the increasingcompetition in thegamingindustry,theGroupcarriedoutstrategicadjustmentsactively,andmadestructuraladjustmentsandoptimizations to itsonlinegamebusiness line.At the same time, theGroupcontrolledcostsandfocusedongameresearchanddevelopment tocopewith theever-changingmarketenvironment.

During the reportingperiod, theGroup’s revenue from theonlinegamebusinesswasmainlyderivedfrom“ColossusKnights”(「巨像騎士團」)and“CardMonster”(「卡片怪獸」) operated by the independent game research and development companies,ShanghaiMu77Network Technology Co., Ltd. (上海木七七網絡科技有限公司 ,“MU77SH”)andMu77NetworkTechnologyHongkongLimited (香港木七七網絡科技有限公司,“MU77HK”)(collectively“Mu77”).“AdventureandtheAbyss”(「冒險與深淵」)distributedbyMu77wasofficially launched inMainlandChinaon27July2021anditsmonthlysalesexceededRMB4million.“ColossusKnights2”(「巨像騎士團2」,tentative title), the sequel to“ColossusKnights” (「巨像騎士團」) is indevelopmentwithareleasereviewpackagecompletedinJuly2021,thefirstpaidtestisexpectedtobeinQ4in2021,andthelaunchdateisundetermined.

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Film & Television Business

“MatchmakersofGreatZhouDynasty”(「大周小冰人」),thelightlyfunnyidolcostumedramadevelopedandproducedbyA8Film&Television,wasbroadcastedonline inMarch2019on iQIYIvideoplatform.However, in thesamemonth, theNationalRadioandTelevisionAdministration issued regulations restricting thebroadcastofcostumedramas, resulting in lower final ratings than theGroupexpected, it still has revenuedistributioncurrently.

Asof30June2021, theGrouphelda totalof29.52%shareof theLanlanlanlanFilm&T e l e v i s i o n Med i a ( T i a n j i n ) Co . , L t d . (藍藍藍藍影視傳媒 (天津 )有限公司 ) (“Lanlanlanlan Film & Television”) throughcapital increase, share acquisitionandperformance competition.LanlanlanlanFilm&Television ismainly engaged in thebusinessofscriptwriting,scriptsellingandadaptationofscriptsandonlinevideocontentproduction.Inthefirsthalfof2021,Lanlanlanlanhasalreadyreceivedashareofrevenuefrom thedistributionof three televisiondramas in2020,and twonewdramasproducedand filmed in the firsthalfof theyearareexpected tobe released in thesecondhalfof2021.

Online Literatures

北京掌文信息技術有限公司 (BeijingZhangwen InformationTechnologyCo., Ltd)(“Beijing Zhangwen”)ismainlyengagedinthebusinessofonlineliteraturereadingandincubationandoperationofIP.BeijingZhangwenmainlyoperatesfourliteraryplatforms:Heiyan.com(黑岩網),Ruochu.com(若初網),Ruoxia.com(若夏網) andFreeFictionofHeiyan (黑岩免費小說網).BeijingZhangwen isengaged inoverallcopyrightoperation,adapting literaryworks intowebmovies,webdramas,movies,comics,animationsandaudiobooks and audiodramas, or authorizing thirdparties todevelop copyrights invariousgenres.

Sustainableandstable in literature IPcopyrightoperation.For thesixmonthsended30June 2021, the revenue generated from copyright operation ofBeijingZhangwenincreasedby23%ascomparedwith thecorrespondingperiod in2020.Thisgrowth ismainlyderived from thedevelopmentof filmand televisionproductionanddistributionbusiness,audiobooksbusiness,animationsandcomicsbusinessand third-party readingbusiness.

For audiobooksbusiness, thenumberof hours of audioworks recordedbyBeijingZhangwen and the anchorMulti-ChannelNetwork (“MCN”) agencies ofBeijingZhangwenhave increasedbymore than50,000comparedwith thecorrespondingperiodlastyear,amongwhichmanyaudionovelsenteredthebestsellinglistsofplatformssuchasHimalayanFM(「喜馬拉雅 FM」),Irts.me(「懶人聽書」)andDragonflyFM(「蜻蜓FM」).TheanchorMCNagenciesofBeijingZhangwenareinthetop3oftheanchorchartsofHimalayanFM,andlaunchedanaudioadvertisingandmerchandisingbusiness.Foraudioprogramoperation,wesuccessfullyoperatedtheDeyunsheXiangshengSpringFestivalGala(「德雲社相聲春晚」)andGoldenComedyClass(「金牌喜劇班」).

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Forcomicsbusiness,BeijingZhangwen’snumerouscomicsalsoenteredtopthreerankingofBest SellingList andSoaringList ofTencentComic, kuaikanmanhua.com andxiaomingtaiji.com.Foranimationsbusiness,wehaveindependentlydevelopedinnovativetechnologyforthewholeprocessofanimationproductionusingthevirtualrealityengine,achieving threemajor improvements: small (team size is only one-third of that oftraditionalanimation),precise (high resolutionquality)and fast (productioncapacity isseveraltimesofthatoftraditionalanimation).

For filmand televisionbusiness,BlackRockPlanet (黑岩星球) ofBeijingZhangwenproducedanddistributed thewebmovie“SpecialAttackof theDivineSoldier” (「神兵特攻」)starringthemartialactorLouisFanSiu-wongand“YogaVillage”(「瑜伽村」) starringthecomedianTangJianjunthatisakeyproductionpromotedbyFujianProvincialRadioandTelevisionBureau,whichwillbebroadcast in thesecondhalfof2021.Theseriesofwebmovies“TheBigIllusion2”(「大幻術師2」)and“TheGiantCrocodile2”(「巨鱷2」)which finishedshooting in the firsthalfof theyearare inpost-productionandareexpected tobe releasedby theendof2021.The first self-producedwebdrama“MillionTimes forYou” (「為你千千萬萬遍」) is scheduled tobe released in the firstquarterof2022.TheOlympicsprojectweb film“Fly!Lighton Ice” (「飛吧！冰上之光」)hasbecomeakey“seedbank”projectof theBeijingMunicipalBureauofRadioandTelevisionandhasbeenshortlisted for the“EightOnes”WinterOlympicsThemeProjectoftheBeijingBureauofRadioandTelevision.

Foronline literaturebusiness, thegrowthcontinues tobesolid.Asat30June2021, thecumulativenumberofregisteredusersofBeijingZhangwen’splatformhadmaintainedacompoundannualgrowth rateof30%for fourconsecutiveyears. Inaddition to readingonline literatureon itsownplatform,BeijingZhangwenprovides reading services tothird-party readingplatforms througha licensingmodel. In the firsthalfof2021,manyliteraturesofBeijingZhangwenwererankedatthetopofthebestsellerlistsonplatformssuch asAliLiterature (「阿里文學」), ZhangyueLiterature (「掌閱文學」),BookChaser (「追書神器」),LinksureLiterature(「連尚文學」),TomatoNovels (「番茄小說」),QimaoNovels(「七貓小說」),BaiduWenxue(「百度文學」),andMiGuCulture(「咪咕文化」), andmanyof itsnovelswere rankedat the topof theannualbestsellerlistsfornewmediadistribution.

Industry Park Business

During the reportingperiod, forproperty investmentbusiness, theGroup’s revenuewasderivedfromthe rentandpropertyservices incomeof theNationalMusic IndustryPark—A8MusicBuilding.A8MusicBuilding is located in thecoreareaofShenzhenBayArea. Ithasa superior locationwitha totalgross floorareaof52,500squaremeters. Itintegratesmusicperformance,officeandbusiness services. In the firsthalfof2021,A8MusicBuildingwasawarded the titleofShenzhenGreenEnergyBuilding.TheGroupcontributed revenue of approximatelyRMB39,400,000 in the first half of 2021,representingasteadyincreasecomparedtothesameperiodlastyear.

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In the firsthalfof2021, thecommercial leasingmarketbecamesaturated,coupledwiththe impactof thepandemic, theentire leasingmarketdown in thedoldrums.Facing thechallenges,A8MusicBuildinghasactivelyadoptedanumberofmeasurestorespondtothepandemic.Whileorganizingthefightagainstthepandemic,theGroupadherestothebusinessphilosophyof“Focusingoncustomersanddemand innovation”, stabilizedoldcustomers,providedrentreductionpackageforcustomersaffectedbythepandemic,andatthesametimedevelopednewcustomers,increasedrevenuethroughmultiplechannels,andreasonablyreducedcosts.Also,itcontinuouslyimprovedservicequalityandachievedsignificantresultstopreventfromtheimpactofthemarketconditionsandthepandemicontheincomeofthepropertyinvestmentbusiness.

Relyingon theA8MusicBuilding, theGroup’sA8Live isanofflineperformancebrandthat integrates functionssuchasmusicperformance theaterandprofessional recordingstudio.Inthefirsthalfof2021,thestudioconducted129batchesofrecordingwork,with343hoursofrecordingtime.Duetotheimpactofthepandemic,6showswereheldinthemusicperformancetheater,whichwasaslightimprovementonthesameperiodlastyear.

Business Outlook for The Second Half of 2021

ThemainbusinessdirectionoftheGroupinthesecondhalfof2021willstillbethepan-entertainmentmarket,which consists of online literature, online games, film andtelevision, short video andmusic, and at the same time, theGroupwill develop theindustrialparkbusinessandexplore thedevelopmentofnewbusinessactively,enforceresearch of new economic and technological field’s products,market and futuredevelopment trend,enhance researchandanalysisof the statusandcompanies inneweconomic and technological industry, andhighquality investment targetswhich arepromising.Atthesametime,theGroupwillstrengthenprojectmanagementandoptimalprocess, strictly control riskswhile seekingbusiness chance.TheGroupwill remainconcern to thedevelopmentandstatusof thepandemic,continue toassess its impactontheGroup’sfinancialpositionandoperatingresults,andtakenecessaryactionstoreducethebusinessrisks.TheGroupwillcontinuetomonitorchangesingovernmentregulatorypoliciesandmarketconditionsandtakesproactivemeasurestoaddressthem.Relyingonhigh-qualitymanagementteamandexcellentoperationalcapabilities,theGroupwillseekbusinessbreakthroughsanddevelopment in thepan-entertainment industry,andconductinvestment-relatedworkandarrangementsintheneweconomicandtechnologicalfields.Sizingupthesituationinthechangingmacroeconomicenvironmentandforgeahead,wehavefullconfidenceandexpectationforthefuture.

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2. FINANCIAL REVIEW

Revenue

For the sixmonthsended30 June2021, thegross revenueof theGroupamounted toapproximatelyRMB43.1million, representing an increaseof approximately1.4%ascomparedwith the corresponding period in 2020 (2020: approximatelyRMB42.5million).

Digital entertainment services

For the sixmonths ended30 June 2021, the gross revenue of digital entertainmentservices of theGroup amounted to approximatelyRMB3.7million, representing adecreaseof approximately5.1%as comparedwith the correspondingperiod in2020(2020:approximatelyRMB3.9million).

Property investment business

Forthesixmonthsended30June2021,thegrossrevenueofpropertyinvestmentbusinessderived from the rental andmanagement fee amounted to approximatelyRMB39.4million, representing an increase of approximately 2.1% as comparedwith thecorrespondingperiodin2020(2020:approximatelyRMB38.6million).

Cost of services provided

For the sixmonths ended30 June2021, the cost of services providedof theGroupamounted toapproximatelyRMB9.6million, representingadecreaseofapproximately6.8%ascomparedwiththecorrespondingperiodin2020(2020:approximatelyRMB10.3million).ThedecreasewasmainlyduetothedecreaseofapproximatelyRMB0.8millionin relatedcostcomparedwith thecorrespondingperiod in2020accompaniedwith thedecreaseingameandfilmandtelevisionproductionrelatedrevenue.

Digital entertainment services

For the sixmonths ended 30 June 2021, the cost of services provided of digitalentertainment services amounted to approximatelyRMB2.0million, decreased byapproximately 28.6% as comparedwith the corresponding period in 2020 (2020:approximatelyRMB2.8million).

Property investment business

For the sixmonths ended 30 June 2021, the cost of services provided of propertyinvestmentbusinessamounted toapproximatelyRMB7.6million, almost the sameascomparedwiththecorrespondingperiodin2020(2020:approximatelyRMB7.6million).

–19–

Gross profit

For the sixmonths ended30 June 2021, the gross profit of theGroup amounted toapproximatelyRMB33.5million, representing an increaseof approximately4.4%ascomparedwiththecorrespondingperiodin2020(2020:approximatelyRMB32.1million).Forthesixmonthsended30June2021,theoverallgrossmarginratiooftheGroupwasapproximately77.7%,whileitwasapproximately75.6%forthecorrespondingperiodlastyear.The increaseof theoverallgrossmargin ratioof theGroupwasmainly resultedfromtheincreaseofgrossmarginratioofpropertyinvestmentbusiness.

Other income and gains, net

For the sixmonthsended30June2021, theother incomeandgains,netof theGroupwere approximately RMB38.8mil l ion, represent ing a s ignif icant increase ofapproximately 26.8% as comparedwith the corresponding period last year (2020:approximatelyRMB30.6million).Theincreasewasmainlyduetothatforthesixmonthsended30June2021,thedividendincomefromfinancialassetsatfairvaluethroughprofitorlossamountedtoapproximatelyRMB29.1million,whilegainonfairvaluechangeoffinancialassetsatfairvaluethroughprofitor lossamountedtoapproximatelyRMB14.5millionwas recognizedunderother incomefor thesixmonthsended30June2020. Inaddition, the foreign exchangedifferences, net decreasedbyapproximatelyRMB5.0million;bankinterestincomedecreasedbyapproximatelyRMB3.9million,ascomparedwiththecorrespondingperiodlastyear.

Selling and marketing expenses

Forthesixmonthsended30June2021,thesellingandmarketingexpensesoftheGroupamounted to approximatelyRMB1.8million, decreasedby approximately 33.3%ascomparedwiththecorrespondingperiodin2020(2020:approximatelyRMB2.7million).Thedecreasewasmainlyresultedfromthereductionofgamerelatedpublishingbusiness.

Administrative expenses

For the sixmonths ended 30 June 2021, the administrative expenses of theGroupamounted toapproximatelyRMB14.3million, representingadecreaseofapproximately12.3% as comparedwith the corresponding period in 2020 (2020: approximatelyRMB16.3million).Thedecrease in administrative expenseswasmainly due to thedecrease inexpensessoas tomeet theneedsof thebusinessanddevelopmentstrategiesoftheGroup.

–20–

Other expenses, net

Forthesixmonthsended30June2021,theotherexpenses,netoftheGroupamountedtoapproximatelyRMB26.7million, significantly increasedbyapproximately134.2%ascomparedwiththecorrespondingperiodin2020(2020:approximatelyRMB11.4million).For the sixmonths ended30 June 2021, the other expenses, net consisted of i) therecognition of fair value loss on investment properties amounted to approximatelyRMB11.0million; ii) the recognitionof losson fairvaluechangeof financialassetsatfair value throughprofit or loss amounted to approximatelyRMB13.5million; iii)exchangelossamountedtoapproximatelyRMB2.3million.Forthesixmonthsended30June 2020, the other expenses, net consisted of i) a fair value loss on investmentproperties amounted toRMB5.0million; ii) the impairmentprovisionof inventoriesamountedtoapproximatelyRMB3.7million;iii)write-offoftradereceivablesamountedto approximatelyRMB2.7milliondue to the impactof theCOVID-19pandemic,weofferedrentandmanagementfeeconcessiontolessees.

Share of profits and losses of associates, net

Forthesixmonthsended30June2021,theGroupsharedprofitsandlossesofassociatesamounted to approximatelyRMB18.4million, increasedby approximately21.9%ascomparedwiththecorrespondingperiodin2020(2020:approximatelyRMB15.1million).The increasewasmainlydue to the sharedprofit ofBeijingZhangwen increasedbyapproximatelyRMB2.8millionascomparedwiththecorrespondingperiodin2020.

Income tax expense

For thesixmonthsended30June2021, income taxexpenseof theGroupamounted toapproximatelyRMB5.3million,while the income tax expense for the correspondingperiod in2020was approximatelyRMB3.2million.This changewasmainlydue tocurrent taxexpenseamounted toapproximatelyRMB10.7millionand thedeferred taxcredit amounted to approximatelyRMB2.8million derived from fair value loss oninvestmentproperties for the sixmonthsended30June2021,while itwasdue to thedeferred tax expense amounted to approximatelyRMB3.6millionderived from thedecreased fair value of financial asset at fair value through profit or loss for thecorrespondingperiodlastyear.

Profit attributable to equity holders of the Company

As a result of above-mentioned, for the sixmonths ended30 June 2021, the profitattributable to equityholdersof theCompanyamounted to approximatelyRMB43.5million,while itwasaprofitofapproximatelyRMB44.7million for thecorrespondingperiodlastyear.

–21–

Liquidity and financial resources

Asat30June2021,cashandcashequivalentsandhighlyliquidshort-termassetsof theGroup includingcashandcashequivalents, restrictedcashandpledgeddeposits andfinancialassetsatfairvaluethroughprofitorlossamountedtoapproximatelyRMB535.5million in aggregate (2020: approximately RMB527.6million). Amongwhich,approximatelyRMB94.9million,orapproximately18%wasdenominatedinRMB.

As at 30 June 2021, theGrouphad short-term interest-bearing bankborrowings inaggregateamounted toapproximatelyRMB5.0million (2020:approximatelyRMB46.0million),and thegearing ratiowhich ismeasuredby thenetborrowingsover the totalassetsis0.3%(2020:approximately2.6%).

TheGroup’sexposure tochanges in interest rate ismainlyattributable to itsdepositsplacedwithbanks.TheGroupmainlyoperates in theMainlandChinawithmostof thetransactionssettledinRMB.

Asat30June2021,theGroupdidnothaveanyderivativesforhedgingagainstboththeinterestandexchangeraterisks.

Financial assets at fair value through profit or loss

Asat 30 June2021, theGroup’s financial assets at fair value throughprofit or lossamountedtoapproximatelyRMB166.8million(2020:approximatelyRMB175.1million),whichwascomprisedofinvestmentsinfundsandthederivativefinancialassetsincludedinnon-currentassetsandwealthmanagementproductsandlistedinvestmentsincludedincurrent assets.Thedecreasewasmainly attributable to thedecrease in fair valueofinvestmentsinfunds.

Financial assets at fair value through other comprehensive income

Asat30June2021,theGroup’sfinancialassetsatfairvaluethroughothercomprehensiveincomeamounted toapproximatelyRMB175.7million (2020:approximatelyRMB234.6million). The decreasewasmainly attributable to the significant decrease in theperformanceofagamedevelopmentcompany,whichresultedinthedecreaseinfairvalueofthegamedevelopmentcompany.

Human resources

Asat30June2021,theGrouphad61employees(asat30June2020:77employees).Theaverageheadcountsoftheperiodwas67whileitwas85forthecorrespondingperiodin2020.Totalemployeecosts for thesixmonthsended30June2021, includingdirectors’emoluments,amountedtoapproximatelyRMB9.4million(2020:approximatelyRMB11.3million).ThedecreaseismainlyduetothefactthattheneedsofdevelopmentstrategyoftheGroupthroughreducingheadcountsfor improvementofefficiencyandcuttingdownexpenses.

–22–

EmployeesarerewardedonaperformancerelatedbasiswithinthegeneralframeworkoftheGroup’ssalaryandbonussystemwhichisreviewedregularly.Ashareoptionschemehasalsobeenput inplace for theCompany toencourageemployees towork towardsenhancingthevalueoftheCompanyandpromotethelong-termgrowthoftheCompany.Furthermore,theGroupofferstrainingprogramsforemployeestoupgradetheirskillsandknowledgeonaregularbasis.

3. USE OF PROCEEDS

On19December2016, theCompanyentered intoa subscriptionagreementwithEverNovelHoldingsLimited (“Subscriber”)pursuant towhich theSubscriber agreed tosubscribeforincash,andtheCompanyagreedtoallotandissue931,800,000newsharesof theCompany at a subscription price ofHK$0.41 per Share (“Subscription”).CompletionoftheSubscriptiontookplaceon20February2017.ThegrossproceedsandnetproceedsfromtheSubscriptionwereapproximatelyHK$382.0millionandHK$380.5millionrespectively.

Asof thedateof thisannouncement, theaccumulatedamountofRMB101.3millionofthe proceeds from theSubscriptions have beenused.Amongwhich, approximatelyRMB59.6million of the net proceeds from the Subscriptionwere utilized for theacquisitionof51%equity interest inMU77SH,approximatelyRMB41.7millionwereused for theacquisitionofMU77HKandcontrollingMU77SHthrough implementingaseriesofVIEagreementsandarrangements.

Asdisclosedinthecircularof theCompanydated25January2017, itwasintendedthatthenetproceeds from theSubscriptionwouldbeutilized for further investmentof theGroupasandwhenopportunitiesarise,withafocusonmobilegameindustrychain.TheCompany intends touse theentiretyof theproceeds from theSubscription for futureacquisitionofupstreamanddownstreammobilegame industrychaincompany(ies).TheuseoftheproceedsoftheSubscriptionisthesameasthatofthesubscriptionagreemententeredbytheGroup.

On the date of this announcement, the remaining amount of the proceeds from theSubscriptionwasRMB236.0million.Thecompanyhasnoplanstochangetheuseoftheproceeds from theSubscription for the timebeing.The remainingunutilizedproceedsfromtheSubscriptionwillbeusedasintended.Asat thedateof thisannouncement, theCompanyhasnot identifiedother suitablebusinessor investmentopportunities.TheCompanywill continue to use its best endeavors to identify appropriate businessopportunitiesforinvestment.Currently,theCompanyplacedsuchunutilizedproceedsasshort-terminterest-bearingdepositsinlicensedbankinHongKong.

4. SIGNIFICANT INVESTMENTS

TheGroupdidnot launchanynewsignificant investmentsduring thesixmonthsended30June2021.

–23–

5. MAJOR RISKS AND UNCERTAINTIES

TheGroup’soperatingperformance,financialpositionanddevelopmentprospectsmaybeaffectedby risksanduncertaintiesdirectlyor indirectly related to theGroup’sbusiness.TheriskfactorslistedbelowmayleadtosignificantdifferencesintheGroup’soperatingperformance, financial position and development prospects from expected or pastperformance.These factorsarenotcomprehensive. Inaddition to the following, theremaybeother risks anduncertainties that arenotknownby theGroupormaynotbesignificantatpresent,butmaybecomesignificantinthefuture.

Business Risk

Thebusiness of theGroup’s industry park segment ismainly leasing and propertymanagement,whichmaybeaffectedby thepandemic, fluctuations inmarketpricesofrentandpropertyfeesanduncertaintyoftenantmobility.

Digital entertainment segment is engaged in game research&development, film&television production andmusic-based entertainment. Some projects have a longdevelopment andproduction cycle, face fierce competitionwithin the industry andchangeable tastesofaudiences. If theGroup fails toadaptand respondsuccessfully, itmayadverselyaffectthebusinessperformanceanddevelopmentprospects.

TheGroup’s investmentperformance inprojects likeBeijingZhangwen,LanlanlanlanFilm&Televisionismainlydeterminedbytheoperationoftheseinvestedcompanies.Iftheinvestedcompaniesfailtoachievetheexpectedperformancetarget,itmightadverselyaffecttheGroup’sbusiness.

Policy Risk

Inorder tocarryoutkindsofbusiness, theGroupmustabidebyvariouspoliciesandregulations.Changes in policies and regulationswill affect the development of theGroup’sbusiness, suchas the relatedauthoritiesadjustments togame industry, filmandtelevision industry andeducation industry,whichmay lead to significant changes inoperatingandinvestingpositionsoftheGroup’sbusiness.

Foreign Exchange Risk

On30June2021,HKDollarsandUSDollars incashandcashequivalentsheldby theGroupwere approximatelyHK$8million andUS$67.2million.TheGroup’smainbusiness is located inChina, andmostof its revenuesandexpendituresare settled inRMB.Therefore,theGroupmayfacetheriskofforeigncurrencyexchange.

–24–

6. UPDATE ON THE FULFILLMENT OF PERFORMANCE OF LANLANLANLAN FILM & TELEVISION

Asat thedateof thisannouncement, theGroupheldanaggregateof29.52%share inLanlanlanlanFilm& television, an associate of theCompany,whichwas acquiredthroughcapital increase, shareacquisitionandequitycompensation.AsLanlanlanlanFilm& televisionand its subsidiariesdidnotmeet the respective targetprofit for thefinancial years ended 31December 2017, 2018 and 2019, pursuant to the relevanttransactiondocuments, theGroupshallbecompensatedby the foundersofLanlanlanlanFilm&televisionbycashorequity.Also,thedisposalofanaggregateof23.56%equityinterestsinLanlanlanlanFilm&TelevisionbytheGroup,hasyettobecompleted.Asatthedateofthisannouncement,RMB5millionhasbeenpaidbythefounderstotheGroupforsuchdisposal.

ThefoundersofLanlanlanlanFilm&TelevisionhaveundertakentotheGrouptoperformitsobligationsinrelationtothecompensationandthedisposalby24March2022.

Forfurtherdetailsofthecapitalincrease,acquisition,disposalandcompensation,pleaserefertotheannouncementsoftheCompanydated18December2017,13March2018,3September2018,25March2019and25March2020and thecircularof theCompanydated5June2019.

OTHER INFORMATION

Interim Dividend

TheBoarddoesnotrecommendthepaymentofaninterimdividendfor2021.

Purchase, Redemption or Sale of Listed Securities of the Company

Asof30June2021,theCompanyrepurchased2,336,000sharesofitsownordinarysharesoftheCompany at the highest and lowest prices ofHK$0.236 andHK$0.231 per sharerespectively (“Shares Repurchase”),all the repurchasedshareshavebeencancelledon11June2021.

Exceptasdisclosedabove,during thesixmonthsended30June2021,neither theCompanynoritssubsidiarieshaspurchased,redeemedorsoldanyoftheCompany’slistedsecurities.

Compliance with the Code on Corporate Governance Practices

During the period ended 30 June 2021, all the code provisions set out in theCode onCorporateGovernancePractices(“CG Code”)containedinAppendix14oftheListingRulesweremetby theCompany,except for thedeviationfromcodeprovisionA.2.1providingforthe rolesofchairmanandchiefexecutiveofficer (the“CEO”) tobeperformedbydifferentindividuals.

–25–

Mr.Liuhasdiversifiedexperience in the technology,mediaand telecommunication industryandhasbeenbeingresponsible foroverallmanagementandstrategicplanningof theGroup.TheBoardconsidered thatMr.Liu isable tomakebetterbusinessdecisionfor theGroup inperforming the rolesof thechairmanandCEO.Therefore,Mr.Liuhashad thedual rolesofthechairmanandCEOof theCompanydespitedeviation fromcodeprovisionA.2.1duringthisreportingperiod.

Compliance with the Model Code for Securities Transactions

TheCompanyhasadoptedtheOwnCodewhichcoverstheModelCodeassetoutinAppendix10oftheListingRulesontheStockExchangeasitscodeofconductgoverningtheDirectors’dealings in theCompany’s securities.Havingmadespecificenquirieswithall theDirectors,theyall confirmed that theyhavecompliedwith the requiredstandards setout in theOwnCode(coveringtheModelCode)throughouttheperiodunderreview.

Review of Financial Information

TheAuditCommitteehas reviewed theGroup’sunauditedcondensedconsolidated interimfinancial information for the sixmonths ended30 June2021.Basedon this reviewanddiscussionswith themanagement, theAuditCommitteewas satisfied that the financialinformationwasprepared in accordancewith applicable accounting standards and fairlypresentedtheGroup’sfinancialpositionandresultsforthesixmonthsended30June2021.

Audit Committee

TheAuditCommittee,which comprises three independent non-executiveDirectors, hasreviewed the accountingprinciples andpractices adoptedby theCompanyanddiscussedinternal control and financial reportingmatters.TheAuditCommitteehas reviewed theGroup’sunaudited interimcondensedconsolidated financial information for thesixmonthsended30June2021.

Changes to Directors’ Information

Mr.LinQianhasresignedasanexecutiveDirectorandthechieffinancialofficerandMr.JiBohasbeenappointedasanexecutiveDirectorwitheffectfrom15July2021.

Save as disclosedherein, therewas no change to anyof the information required to bedisclosedinrelationtoanyDirectorpursuanttoparagraphs(a)to(e)and(g)ofRule13.51(2)oftheListingRulesasoftheissuancedateofthisannouncement.

–26–

Publication of 2021 Results Announcement and Interim Report

The2021 interimresultsannouncement ispublishedon thewebsiteof theStockExchange(http://www.hkexnews.hk) and that of theCompany (http://www.a8nmg.com).The2021interimreportwillbeavailableonthewebsiteoftheStockExchangeandthatoftheCompanyonoraboutThursday,16September2021,andwillbedispatchedtotheShareholdersinduecourse.

OnbehalfoftheBoardA8 New Media Group Limited Chairman & Executive Director

Liu Xiaosong

HongKong,20August2021

As at the date of this announcement, the Board of the Company comprises:

(1) Executive Directors namely Mr. Liu Xiaosong and Mr. Ji Bo; and

(2) Independent Non-Executive Directors namely Mr. Chan Yiu Kwong, Ms. Wu Shihong and Mr. Li Feng.