The board of directors of Alibaba Pictures Group Limited informed the shareholders of the Company and potential investors that, based on its preliminary assessment of the unaudited consolidated management accounts of the Group and the information currently available to the Board, it is expected that the net profit attributable to owners of the Company for the financial year ended March 31, 2024 will be no less than RMB 260 million, as compared with the net loss attributable to owners of the Company of approximately RMB 291.1 million for the financial year ended March 31, 2023. It is expected that the overall revenue of the Group for fiscal year 2024 will increase by over 40% as compared with fiscal year 2023. If Damai Acquisition had taken place on April 1, 2022 or 2023, the adjusted EBITA of the Group for fiscal year 2024 would be no less than RMB1,000 million, representing a year-on-year increase of over 700%.

The Board is of the view that the Group's turnaround from net loss to net profit as compared with fiscal year 2023 is primarily attributable to, among other things, (i) substantial year-over-year growth of total box office in Mainland China, as a result of robust recovery of offline entertainment business for fiscal year 2024; and (ii) outperformance of the Group's business with a significant year-over-year increase in the quantity of high-quality films jointly produced and distributed by the Group. The Board believes that the contraction in net profit for the twelve months ended March 31, 2024 as compared with the net profit for the six months ended September 30, 2023 is primarily attributable to, among other things, (i) the continuing absorption of relevant investment costs for the second half of fiscal year 2024 given the Group's ongoing commitment to investing in the Group's content business; and (ii) the provision of impairment for certain trade receivables of the Group out of prudence.