The board of directors of Alibaba Pictures Group Limited announced that, on January 23, 2019, Beijing Asian Union Culture Media Investment Co. Ltd. (Beijing Asian Union), a consolidated subsidiary of the Company, entered into a strategic cooperation framework agreement with Huayi Brothers Media Corporation (Huayi Brothers), a third party independent of the Company and its connected persons. Pursuant to the Framework Agreement, the parties shall cooperate for a term of 5 years in the following aspects: (1) Cooperation in film & television works of which Huayi Brothers is the lead producer­ Beijing Asian Union and/or its affiliates shall, under the same core commercial conditions, have the priority in: (a) investing in certain film & television works (including but not limited to films, television programmes, advertisements, variety shows/entertainment programmes, radio & television programmes, internet dramas, large-scale internet films, internet variety shows, as well as other video or audio clips publicly released) in respect of which Huayi Brothers and/or its affiliates play the decisive and leading role in investment, promotion & distribution (deciding on the mainland distributors) (the "Controlled Film & Television Works"); (b) acting as a joint distributor for the marketing and distribution of the Controlled Film & Television Works in respect of which the parties have entered into investment agreements; (c) having priority in the participation in matters relating to the grant of online dissemination rights of the Controlled Film & Television Works by Huayi Brothers and/or its affiliates; and (d) for Controlled Film & Television Works in respect of which the parties have entered into investment and distribution agreements, cooperating with Huayi Brothers and/or its affiliates on matters relating to the online ticketing of such Controlled Film & Television Works. The terms and conditions offered to Beijing Asian Union shall be not less favourable than those offered by Huayi Brothers and/or its affiliates to third parties. In addition, Huayi Brothers and/or its affiliates undertake that they will achieve the target to complete (as the lead producer) and release 10 cinema films within 5 years from the effective date of the Framework Agreement. (2) Cooperation in artiste development - Beijing Asian Union and/or its affiliates shall cooperate with Huayi Brothers and/or its affiliates in the talent agency business to scout for and build up artists with potentials, with a view to further promoting mutual development and cooperation in the film & television business. (3) Cooperation in merchandise development of Controlled Film & Television Works Beijing Asian Union and/or its affiliates shall, under the same core commercial conditions, have the priority in cooperating with Huayi Brothers and/or its affiliates in the merchandise development of the Controlled Film & Television Works, including but not limited to authorising Beijing Asian Union and/or its affiliates to sub-authorise the rights to develop such merchandise and the joint investment in developing such merchandise. The parties and/or their respective affiliates will provide their resources and/or platforms to support the marketing and sale of such merchandise. Huayi Brothers and/or its affiliates shall, under the same core commercial conditions, make it a priority to use the promotion & distribution services provided by Tao Piao Piao and Beacon, both platforms operated by the Group for the marketing and/or promotion & distribution of the Controlled Film & Television Works. The parties and/or their respective affiliates will cooperate in other aspects to be agreed in writing.