Alibaba Pictures : VOLUNTARY ANNOUNCEMENT - LAUNCH OF "KOITAKE" BRAND FOR CONTENT IP POP TOY BUSINESS

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(Incorporated in Bermuda with limited liability)

(Stock Code: 1060)

VOLUNTARY ANNOUNCEMENT

LAUNCH OF "KOITAKE" BRAND FOR CONTENT IP POP TOY BUSINESS

This is a business update announcement made by Alibaba Pictures Group Limited ("Alibaba Pictures" or the "Company", together with its subsidiaries, the "Group") on a voluntary basis.

The board of directors of the Company (the "Board") is pleased to announce that the Group has launched a new brand called "KOITAKE" for the pop toys business, and formally named its pop toy flagship store on Tmall "KOITAKE Flagship Store" on May 13, 2021. The KOITAKE Flagship Store is principally engaged in the sale of content IP pop toys.

KOITAKE is different from conventional pop toy brands which face the difficulty of moving from downstream production lines to upstream content IPs. Instead, it is backed by Alibaba Pictures and built on the substantial strengths of Alibaba Digital Media & Entertainment Group, which include its wealth of experience in the production of rich content IPs (including films, TV dramas, variety shows and animations), promotion and distribution, as well as targeted user operation. KOITAKE has created a heathy cycle mechanism that allows content IP and merchandise development, content promotion and distribution, and merchandise promotion and distribution to better complement one another. In addition, the Group is preparing to roll out KOITAKE offline experience store(s), which will soon offer customers a brand-new consumer experience that combines "experience, exhibition and consumption".

The Company's management expects that KOITAKE will disrupt the traditional operation model of the first-generation conventional store-based pop toy brands, and lead the pop toy industry into a new phase with the development of content IP pop toys based on the IPs of films and TV dramas, variety shows and animations. The Group will continue to diversify its business segments in order to maximize value for the Company's shareholders (the "Shareholders").

Shareholders and potential investors should exercise caution when they deal or contemplate dealing in the shares or other securities of the Company.

On behalf of the Board

Alibaba Pictures Group Limited

Fan Luyuan

Chairman & Chief Executive Officer

Hong Kong, May 14, 2021

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 a non-executive director; and Ms. Song Lixin, Mr. Tong Xiaomeng and Mr. Johnny Chen, being the independent non-executive directors.