Huayi Tencent's subsidiary HTEIL and Huayi Brothers entered into

[Immediate Release]

Huayi Tencent’s subsidiary HTEIL and Huayi Brothers entered into The

Cooperation Agreement on the distribution of films—Further

enhancement of the Company's profitability and market influence

(12 December 2018 – Hong Kong) Huayi Tencent Entertainment Company Limited

(“Huayi Tencent Entertainment”, or the “Company”; stock code: 00419.HK; together

with its subsidiaries collectively known as the “Group”) is pleased to announce that a

wholly-owned subsidiary of the Company, HTEIL, and Huayi Brothers International

Limited (“Huayi Brothers”) entered into the agreements for cooperation (the

“Cooperation Agreement”) on the distribution of four films in the PRC (excluding Hong

Kong, Macau and Taiwan) ("Mainland China"). The four films are namely A Simple

Favor, Radioactive, Chaos Walking and Kingkiller Chronicle: The Name of the Wind

(the “Subject Films”)

(Appendix 1)

. Pursuant to the Cooperation Agreement, HTEIL

obtained 50% of the profit sharing right corresponding to its Distribution Right in each

of the Subject Films in Mainland China at an aggregated consideration equivalent to

approximately HK$41,594,000.

The film right holder of A Simple Favor, Chaos Walking, and Kingkiller Chronicle: The

Name of the Wind is Lions Gate International (UK) Limited ("Lions Gate"), which is the

largest and the most successful film studio after the six major Hollywood film studios

in North America. Lions Gate has produced a number of blockbusters in the past, such

as the Twilight series, The Hunger Games and La La Land. The five films in the

Twilight series totaled a global box office of US$3.34 billion (approximately RMB23.19

billion), while the Hunger Games was released in Mainland China in 2012 and the

cumulative box office exceeded RMB 170 million. In addition, La La Land was released

in Mainland China in 2017 and delivered a total box office receipts of RMB 250 million,

recording an outstanding box office income. The film right holder of Radioactive is

STUDIOCANAL S.A.S (“STUDIOCANAL”) which released Paddington 2 in Mainland

China in 2017 and delivered encouraging box office performance of RMB210 million.

It shows that the films produced by Lions Gate and STUDIOCANAL have absolute box

office performance guarantees in Mainland China. The Group believes that the release

of the Subject Films in Mainland China pursuant to this cooperation can achieve an

outstanding box office income and enrich the Group’s film and cultural resources

worldwide.

Mr. Wang Zhongjun, Chairman of Huayi Tencent Entertainment, said: “The Group

is principally engaged in entertainment and media business, and investment in film

production and distribution and exploration of promising investment projects have

always been the Group’s key direction. At the same time, the Group will also seek

opportunities to bring Hollywood films into its investment portfolio, and to partner with

internationally renowned studios. Through this cooperation with Huayi Brothers, the

Group could benefit from the high-quality movie contents produced by renowned

Hollywood and international studios, and also the ever-growing appetites for prime

imported movies in the PRC market, thereby expanding a reserve of overseas

intellectual property rights with development potential of the Group and contributing to

the Group’s profit in the future.”

- END -

About Huayi Tencent Entertainment Company Limited

Huayi Tencent Entertainment Company Limited (Stock Code: 00419.HK) is a new

media company integrating culture and entertainment. It produces quality international

films, animations, and TV dramas, and invests in international entertainment

companies, through M&As and resource integration, aimed at building an integrated

platform with both content development and online-to-offline entertainment channels.

Currently, Huayi Brothers (Stock Code: 300027.SZ) and Tencent (Stock Code:

00700.HK) are the controlling shareholders of Huayi Tencent Entertainment.

Media Contact

Kredito PR Consultancy Limited

Ms. Sally Wong Email: sally.w[email protected]m.hk

Ms. Eliza Li Email: eliza.li@kredito.com.hk

Tel: (852) 2248 1188

Appendix 1:

Title

Film Right

Holder

Expected initial

release period in

North America

Director

Major casts

A Simple Favor

Lions Gate

International

(UK) Limited

Already released on

14 September 2018

Paul S. Feig

Blake Lively,

Anna Kendrick

Radioactive

STUDIOCANAL

S.A.S

Year 2019

Marjane

Satrapi

Rosamund Pike

Chaos Walking

Lions Gate

International

(UK) Limited

November 2019

Doug Liman

Tom Holland,

Daisy Ridley

Kingkiller

Chronicle: The

Name of the

Wind

Lions Gate

International

(UK) Limited

Late 2020 or early

2021

Sam Raimi

To be

determined