The board of directors of Luk Hing Entertainment Group Holdings Limited inform the shareholders of the company and potential investors that Zhuhai Ruiye Bar Management Company Limited (Zhuhai Ruiye), the company's subsidiary, was notified that the operation of CUBIC SPACE+ in Zhuhai has been ceased with effect from 20 October 2022. Reference is made to the 2022 Interim Report in relation to the legal proceeding between Zhuhai Ruiye and Zhuhai Urban Construction Group Co. Ltd. ("Zhuhai Urban Construction"), being the landlords of CUBIC SPACE+ and Zhuhai Urban Construction Haiyun Asset Management Co.

Ltd. (Haiyun Asset Management), being the property management company of CUBIC SPACE+. On 7 October 2022, Zhuhai Arbitration Commission ordered Zhuhai Ruiye to pay Zhuhai Urban Construction and Haiyun Asset Management approximately HKD 3 million for the outstanding rental and penalties. As disclosed in 2022 Interim Report, CUBIC SPACE+ has suspended its operation since 13 January 2022 in the wake of stringent anti-epidemic measures imposed by the local government in Mainland China.

Due to disputes between Zhuhai Urban Construction and Haiyun Asset Management and the Group in relation to the operation CUBIC SPACE+ at landmark Zhuhai Grand Theatre, in Zhuhai, the PRC, the Group would be unable to continue to operate CUBIC SPACE+ from 20 October 2022. The Group is seeking legal advice in relation to its rights over the aforesaid matter.