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Forms of cooperation with Alibaba Pictures Group Co., Ltd.

The highlight of Alibaba’s subscription to “Cultural China” lies in the exploratory cooperation between the two parties in the entire process of investment, production, distribution and consumption of entertainment products. According to the announcement, Alibaba and "Cultural China" have established a strategic committee and will cooperate in the following aspects:

(1) Using a C2B model, we will focus more on creating movies and TV series that meet the needs of modern audiences. "Cultural China" will leverage Alibaba's expertise and experience in big data analysis, cloud computing and e-commerce platforms to strengthen its ability to analyze audience trends for movies and TV series, so as to be ready to collaborate with the most popular related film directors and actors Collaborate to create high-quality content tailored to the needs of individual audience groups and regions.

"Cultural China" will use 40% to 50% of Alibaba's HK$6.244 billion investment to expand its existing business, including but not limited to the production and distribution of movies, TV series, and online series. In the next two years, "Cultural China" initially plans to invest or produce 8 to 10 movies each year (about 3 million yuan to 5 million yuan per film), and 3 to 5 medium-length to full-length TV series (about 5 million yuan to 1 100 million yuan/drama), and invest in 3 to 5 online dramas;

(2) Leverage Alibaba’s online platform and huge online user base to market and distribute “Cultural China” media content products ;

(3) Establish an e-commerce platform to promote and sell different entertainment products for viewers of movies, TV series and other media content that support "Cultural China".