23rd November 2022 – (Shenzhen) Emperor Culture Group Limited (0491) announced that its 70%-owned Emperor UA decided not to inject additional capital into the mainland subsidiary Emperor UA Cinemas (Guangdong). It also terminated operations of all 7 cinemas of the latter, and filed bankruptcy proceedings. Emperor Entertainment Cinema (Guangdong) is principally engaged in the operation of 7 cinemas located in Shanghai, Shenzhen, Chengdu, Foshan and Zhuhai in the Mainland. The Board of Directors of Emperor Culture Group Limited expects that the termination of business operations will not have any material adverse impact on the business operations and financial position of the Group. The group pointed out that the subsidiary’s revenue accounted for no more than 2% of the group’s total revenue, but as of 30th June, it recorded a net debt of 182.6 million yuan, accounting for more than 55% of the group’s net debt. After evaluating the actual contribution and financial status, as well as external environmental factors, it is believed that the termination of business operations will improve the financial status of the group, which is in the overall interests of the company and shareholders. Currently, it operates a total of 17 wholly-owned movies named “Emperor Cinemas” and “Emperor Cinemas”, including 8 in Mainland China, 7 in Hong Kong, and 1 each in Macao and Malaysia.