Leverages Outstanding Production Capability Actively Explores Development Opportunities in Film, Television and Media Industry

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HONG
KONG, CHINA -�Media OutReach�-�25 September
2019 - Transmit Entertainment Limited ("Transmit Entertainment" or the "Company",
together with its subsidiaries, the "Group"; stock code: 1326) today announced
its audited annual results for the year ended 30 June 2019 (the "Review Year").

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During the Review Year, the Group recorded
satisfactory results, with revenue increased significantly by 143.3%
year-on-year to HK$668.1 million. Gross profit also climbed, rising by 89.5% to
HK$262.3 million, with gross profit margin at approximately 39.3%. Benefiting from profit contributions from Houhai Culture and
revenue growth from the production and distribution of the films "L Storm" (L??) and "The Invincible Dragon" (????), loss attributable to owners of the Company for
the Review Year reduced significantly by 81.3% from approximately HK$189.9
million in 2018 to approximately HK$35.5 million. The Group's financial position
remained solid as at 30 June 2019, with the Group's bank balances and cash
amounting to approximately HK$122.0 million.

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Business Review

Film and TV Series
Production and Distribution

During the Review Year, the
film and TV series production and distribution business remained the core
business of the Group with revenue of approximately HK$415.2 million reported,
representing a significant increase of approximately 900.6% as compared with
the last year. During the Review
Year, the Group released three films, namely "L Storm" (L??), "The Invincible Dragon" (????) and "Lucid Dreams" (???????), while two films were also released
last year, namely "Love Forever" (???????) and "Tomorrow Is
Another Day" (???), in addition to a sharing
of worldwide box office receipts of "S Storm" (S??). In August 2018, the Group completed the
acquisition of Houhai Culture and consolidated its accounts for the first time.
On top of the revenue generated from the broadcast of its variety show "Give Me
Five Season II" (????????) and the copyright and
adaptation of manga "Hikaru no Go" (??) during the Review Year,
revenue from the broadcast of the internet drama "Romance of the Youth" (??????) was also recorded, thus delivering
notable contributions to the Group's results. As for the romantic detective
reality show developed and produced by the Group, namely "I Love You, Me Too" (???????), has also been broadcasted on
the online video platform iQIYI and continued
to attract widespread attention and discussion from netizens.�

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Film Exhibition

Film exhibition was another key revenue driver for the
Group. During the Review Year, the Group operated five cinemas that
are strategically located across Hong Kong, including Mong Kok, Chai Wan,
Causeway Bay and Tsuen Wan. Benefiting from the full operation of the five
cinemas, revenue from the film exhibition segment steadily increased, rising by
approximately 8.8% to approximately HK$243.6 million as compared with last year.

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During the Review Year, the
Group completed the disposal of a cinema located at "Vivo City" (???), Shanghai, Mainland China and recorded net proceeds of HK$21.7 million from the disposal,
which will be used to further invest in other business segments as part of the
resource reallocation of the Group.

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Others

The total revenue from the Group's post-production,
advertising, marketing and publication businesses increased to approximately
HK$9.4 million in the Review Year. Taking into account the small-scale
operation of the post-production business of the Group in recent years, current
market trends and change in the Group's overall business strategy, the Group
has disposed of the post-production business during the Review Year.

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In addition, in order to achieve
long-term sustainable development, the Group has formed cooperative relations
with various artists, internet celebrities, agencies, renowned scriptwriters
and popular directors to make in-depth development in the film and television industry
during the Review Year. The Group has also nurtured new celebrities and
developed the Multi-Channel Network (MCN) business with vast resources related
to films and televisions on different broadcast platforms and websites and
expanded its revenue base through the building of a self-developed consumer
brand. These moves will facilitate the Group's implementation of its brand
diversification development strategy and strengthen its content creation capability
and ultimately raise its brand awareness in the industry.

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On 10 September 2019, the Group
announced that it will acquire 60% equity interest of Wenlan (Shanghai)
Cultural Communication Co., Ltd. ("Wenlan Cultural") for an aggregate
consideration of RMB96,000,000. Wenlan Cultural is a professional team
principally engaged in the planning of culture and entertainment, the
performance agent and the training for music bands businesses. Ms. Yang Chaoyue^
(???) is the key member of the music
band group under its management named, CH2 Girls Group. Ms. Yang debuted as a
member of Rocket Girls 101^ (????101) after attending Tencent's
girl group talent show Produce 101^ (??101) and was named by Artiste of
the Year 2018^ (?????2018???????).The management of the Group believes
that the acquisition will enable the Group to extend its footprint to China's
booming popular idol group industry and to obtain the commercial performances
license^ (????????) held by Wenlan Cultural, at
the same time greatly enhancing the Group's business value and brand influence.

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Prospects

Looking ahead, the Group will focus
on realizing its brand diversification development strategy and actively build
and promote its self-owned consumer brand to broaden its revenue base through the
celebrity market and further expand its presence in the pan-entertainment sector.
Meanwhile, more celebrities will be invited to join the Group and the new
business is expected to generate sustainable synergies with the Group's
existing film, television and variety show resources, thereby creating tremendous
room for the Group's development in the pan-entertainment consumption sector.

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In addition, the Group is committed
to enhancing its content creation capability and producing quality programs for
audiences. With regard to film and TV series production and distribution, a
number of copyright projects are in the pre-production stage, including "Redemption
on the Blade" (??????), "Mrs. Hu Zhu" (????), "Be
An Influencer" (?????) and "Jia
Fang Yi Fang Zhi Wei Qing Shi" (????????). Moreover,
the Group has reached agreements with certain owners of popular copyrights and
will develop and produce a number of series, including "Locard's Theory" (?????), "Love
Destiny" (????), "Imperial
Harem" (??????), "Next
To The Last Girlfriend" (????????), "Romance in
the City" (????), "Turn
Red into Green" (????), "The Flower Throne" (????) and "Her
Warfare" (?????). As
for variety shows, the romantic detective reality show developed and produced
by the Group, namely "I Love You, Me Too" (???????), completed
airing on 26 June 2019, and in view of the outstanding performance and
popularity of the show's first season, the Group is considering to produce a second
season in order to create a self-developed, multi-season variety show brand.
Besides, the Group will launch the third season of "Give Me Five" (?????), a
follow-up to the previous two seasons. "National Game Carnivals" (???????), a
new gaming variety show, is also under development.

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Ms. Zhao Wenzhu, President and Executive
Director of Transmit Entertainment,
said, "We are pleased to see the Group continue performing satisfactorily. We
will further explore development opportunities in the film, television and
media industry, while leveraging our outstanding film production capabilities
for support. In particular, we will seek opportunities for cooperation in the
upstream and downstream segments of the industry chain, with the aim to strengthen
the Group's revenue base. Going forward, we will leverage partnerships forged
with famous artistes and their agencies to develop a self-owned brand,
gradually expand the scale of film and television intellectual property derived
products and the e-commerce business so as to diversify our business, enhance profitability
and generate satisfactory returns for shareholders."

About Transmit Entertainment Limited (stock code?1326)

Transmit Entertainment Limited is
a fully-integrated media and entertainment company and also a unicorn media group
that can empower the consumer industry. It principally engages in diversified
culture-related businesses including (i) film and TV series production and
distribution; (ii) film exhibition; (iii) other businesses (including screenwriting
and film direction, internet celebrities and artiste agency, and
pan-entertainment businesses along the value chain). The Group produces Chinese
films, variety shows and TV series in both Mainland China and Hong Kong, as
well as engages in other pan-entertainment businesses. Houhai Culture (a
wholly-owned subsidiary of the Group newly acquired in August 2018) has a
professional film and television production team which mainly focuses on
variety shows and TV series. It specializes in content production,
scriptwriting, shooting, post-production, distribution and marketing. It also
owns a substantial amount of copyrights of various TV series and has been
closely cooperating with tier-one broadcast networks and tier-one online
streaming platforms.

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Striving to expand the pan-entertainment
business, the Group has entered into formal contracts with various artiste
agencies and managers, to add to its talent pool and enhance its competitive
edge and reputation in the film and television industry across the Greater
China region in January 2019. Meanwhile, the Group has also duly entered into contracts with a renowned
scriptwriter Li Xiaoming (???) and new popular film
director Wu Qiang (??) in June the same year to
further improve the strength in content creation of the Group to build a
comprehensive film and television entertainment and culture empire.