Alibaba Pictures : GRANT OF AWARDED SHARES PURSUANT TO SHARE AWARD SCHEME

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Bermuda with limited liability)

(Stock Code: 1060)

GRANT OF AWARDED SHARES

PURSUANT TO SHARE AWARD SCHEME

GRANT OF AWARDED SHARES

The Board announces that on September 11, 2020, the Company granted a total of 37,760,000 Awarded Shares to 80 Selected Employees, none of whom is a connected person (as defined under the Listing Rules) of the Company, in accordance with the terms of the Share Award Scheme.

The Grant will not result in any issue of new Shares or any dilution effect on the shareholdings of existing shareholders of the Company.

Reference is made to the announcement of Alibaba Pictures Group Limited (the "Company") dated January 4, 2017 (the "Announcement") relating to the adoption of the share award scheme by the Company on December 30, 2016 (the "Share Award Scheme"). The Share Award Scheme does not constitute a share option scheme within the meaning of Chapter 17 of the Listing Rules, and is a discretionary scheme of the Company. Unless otherwise defined, capitalized terms used in this announcement shall have the same meanings ascribed to them in the Announcement.

GRANT OF AWARDED SHARES

The Board announces that on September 11, 2020, the Company granted a total of 37,760,000 Awarded Shares (the "Grant") to 80 Selected Employees (the "Grantees"), none of whom is a connected person (as defined under the Listing Rules) of the Company, in accordance with the terms of the Share Award Scheme at nil consideration, subject to the acceptance of the Grantees. Each of the Awarded Shares granted to the Grantees represents the right to receive a Share on the date it vests and the Awarded Shares granted are not subject to performance targets.

The Grant would be made out of the unvested Awarded Shares which are currently held under the Trust and managed by the Trustee as part of the trust fund pursuant to the Share Award Scheme. The Trustee will continue to hold the aforesaid Awarded Shares on trust for the Grantees and will transfer the respective proportions to each of them at no cost upon vesting and settlement of their respective Awarded Shares.

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The Grant will not result in any issue of new Shares or any dilution effect on the shareholdings of existing shareholders of the Company.

On behalf of the Board

Alibaba Pictures Group Limited

Fan Luyuan

Chairman & Chief Executive Officer

Hong Kong, September 11, 2020

As at the date of this announcement, the Board comprises Mr. Fan Luyuan, Mr. Li Jie and Mr. Meng Jun, being the executive directors; Mr. Xu Hong, being the non-executive director; and Ms. Song Lixin, Mr. Tong Xiaomeng and Mr. Johnny Chen, being the independent non-executive directors.

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