China Literature : SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO THE ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2019

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CHINA LITERATURE LIMITED

閱 文 集 團

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 772)

SUPPLEMENTAL ANNOUNCEMENT

IN RELATION TO THE ANNUAL REPORT

FOR THE YEAR ENDED DECEMBER 31, 2019

Reference is made to the annual report of the Company for the year ended December 31, 2019 (the "2019 Annual Report") published on April 27, 2020. Unless the context otherwise requires, capitalized terms used herein shall have the same meanings as those defined in the 2019 Annual Report.

In addition to the information provided in the 2019 Annual Report, the Board would like to provide further information in relation to the use of net proceeds during the year ended December 31, 2019 as follows:

			Amount
			of net	Amount	Balance
			proceeds	of net	of net	Intended
			utilized	proceeds	proceeds	timetable
			during the	utilized	unutilized	for use
		Allocation	year ended	up to	as at	of the
		of net	December	December	December	unutilized
Intended use of net proceeds	proceeds	31, 2019	31, 2019	31, 2019	net proceeds
			(RMB in millions)
(i)	Expanding the Group's online	1,843.4	669.7	1,015.1	828.3	By/before
	reading business and sales and					December 31,
	marketing activities					2020
(ii)	Expanding the Group's	1,843.4	1,150.6	1,351.5	491.9	By/before
	involvement in the development of					December 31,
	derivative entertainment products					2020
	adapted from its
	online literary titles
(iii)	Funding our potential investments,	1,843.4	109.4	1,843.4	-	Not
	acquisitions					applicable
	and strategic alliances

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				Amount
				of net		Amount	Balance
				proceeds		of net	of net	Intended
				utilized		proceeds	proceeds	timetable
				during the		utilized	unutilized	for use
		Allocation	year ended		up to	as at	of the
		of net	December		December	December	unutilized
Intended use of net proceeds	proceeds	31, 2019	31, 2019		31, 2019		net proceeds
				(RMB in millions)
(iv) Working capital and general	614.5	614.5	614.5		-	Not
corporate purposes											applicable
Total
6,144.7	2,544.2	4,824.5		1,320.2
						By order of the Board
				CHINA LITERATURE LIMITED
				Mr. James Gordon Mitchell

Chairman of the Board and Non-executive Director

Hong Kong, August 31, 2020

As at the date of this announcement, the Board comprises Mr. Cheng Wu and Mr. Hou Xiaonan as executive Directors; Mr. James Gordon Mitchell, Mr. Wu Wenhui, Mr. Cao Huayi and Mr. Cheng Yun Ming Matthew as non-executive Directors; Ms. Yu Chor Woon Carol, Ms. Leung Sau Ting Miranda and Mr. Liu Junmin as independent non-executive Directors.

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