CREATIVE CHINA (08368) and related contracting parties agree to terminate the contract arrangements by entering into a series of termination agreements.

CREATIVE CHINA (08368) announces that, in response to the recent shift in the group's business focus and the need to streamline administrative efficiency, on January 15, 2025 (after trading hours), the group and related contracting parties have agreed to terminate contract arrangements through a series of termination agreements. Therefore, the contract arrangements will be terminated as of January 15, 2025. All former contract entities have become indirect subsidiaries of the company, and their operations will continue to be conducted by the company, with their financial performance being consolidated into the group's financial statements. This includes: (i) exclusive technical consultation and service agreements, under which Ju Shi Culture Media agrees to provide exclusive technical and management consulting services to each contract entity, while the contract entities agree to pay service fees to Ju Shi Culture Media; (ii) equity pledge contracts, under which registered shareholders have pledged all their equity in the relevant contract entities to Ju Shi Culture Media, to guarantee the performance of the contract entities and the contract entity registered shareholders based on the contract arrangements; (iii) exclusive purchase rights agreement, under which registered shareholders agree irrevocably and unconditionally to grant Ju Shi Culture Media exclusive purchase rights, allowing Ju Shi Culture Media to choose, when permitted by current Chinese laws, to purchase all or any part of the equity of the relevant contract entity and/or all or any assets of the contract entity through themselves or their designated person; (iv) authorization letter, under which registered shareholders irrevocably delegate voting rights and other shareholder rights of the relevant contract entities to Ju Shi Culture Media's designated person; and (v) business operation agreement, under which Ju Shi Culture Media may choose to act as a performance guarantor for the contract entity in any business operation agreement or transaction entered into with a third party. In this case, as collateral, the contract entity agrees to pledge all its accounts receivable and assets to Ju Shi Culture Media. As the business activities of the contract entities are no longer subject to restrictions on foreign investment, the program production licenses held by these entities have become idle. The restructuring (including the cancellation of the contract entity's license) is only a measure to adapt to the shift in the group's business focus and streamline the group's administrative management, in order to handle various matters and reporting more efficiently and effectively.