Hong Kong Exchanges and Clearing : PRICE REDUCTION ANNOUNCEMENT

This announcement is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities. This announcement is not a prospectus. Potential investors should read the prospectus dated 27 February 2020 issued by Jiu Zun Digital Interactive Entertainment Group Holdings Limited for detailed information about the Company and the Global Offering before deciding whether or not to invest in the shares being offered. The Company has not been and will not be registered under the U.S. Investment Company Act of 1940, as amended.

Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company 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.

This announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or elsewhere. The Offer Shares are being offered and sold outside the United States in offshore transactions in reliance on Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"). The Offer Shares have not been and will not be registered under the U.S. Securities Act and may not be offered, sold, pledged or transferred within the United States, except pursuant to an exemption from or in a transaction not subject to the registration requirements of the U.S. Securities Act. There is not and it is not currently intended for there to be any public offering of securities of the Company in the United States.

Jiu Zun Digital Interactive Entertainment Group Holdings Limited

九 尊 數 字 互 娛 集 團 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1961)

PRICE REDUCTION ANNOUNCEMENT

Reference is made to the prospectus of Jiu Zun Digital Interactive Entertainment Group Holdings Limited (the "Company") dated 27 February 2020 (the "Prospectus"). This announcement is supplemental to and should be read in conjunction with the Prospectus. Unless otherwise stated, terms used in this announcement shall have the same meanings as defined in the Prospectus.

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In light of the volatile stock markets and the recent adverse public health development in the PRC, the Company has made a Downward Offer Price Adjustment. Accordingly, the final Offer Price has been set at HK$1.35 per Offer Share which is 10% below the bottom end of the indicative Offer Price range (exclusive of brokerage of 1.0%, SFC transaction levy of 0.0027% and Stock Exchange trading fee of 0.005%).

Based on the final Offer Price of HK$1.35 per Offer Share, the related changes to the Global Offering are:

• the Net Proceeds from the Global Offering to be received by the Company, is reduced to be approximately HK$100.2 million. The Company intends to apply the decreased Net Proceeds for the purposes on a pro-rata basis as disclosed in the Prospectus, which are as follows:
• • approximately HK$24.4 million, representing approximately 24.3% of the Net Proceeds, will be used to expand the Group's market share in single-player mobile games with a strategic focus on boutique games;
  • approximately HK$15.4 million, representing approximately 15.4% of the Net Proceeds, will be used to expedite the Group's expansion in the multi-player mobile game market;
  • approximately HK$20.3 million, representing approximately 20.3% of the Net Proceeds, will be used to obtain licensing rights of popular entertainment properties to develop boutique mobile games, covering both up-and-coming characters featured in animated television series or motion pictures as well as evergreen characters;
  • approximately HK$1.2 million, representing approximately 1.2% of the Net Proceeds, will be used to enrich the Group's digital media content, by obtaining licensing rights of popular and/or exclusive titles and debut offerings, broadening the Group's mobile internet distribution channels of its digital content for readers as well as expanding the operation and marketing team for strengthening the Group's collaboration with distribution channel providers in respect of its digital media content;
  • approximately HK$30.5 million, representing approximately 30.4% of the Net Proceeds, will be used for strategic acquisitions and partnerships with complementary mobile game developers, especially those with capabilities in artwork and design or those which possess an established distribution network; and
  • approximately HK$8.4 million, representing approximately 8.4% of the Net Proceeds, will be used for general working capital purposes.

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• the market capitalization of the Shares will be reduced to approximately HK$737.1 million.

Each Director of the Company confirms that, taking into account of the final Offer Price, there is no material change of circumstances after the issue of the Prospectus and there is sufficient working capital for its requirements for at least 12 months from the date of the Prospectus under Paragraph 36 of Part A of Appendix 1 to the Listing Rules.

By order of the Board

JIU ZUN DIGITAL INTERACTIVE ENTERTAINMENT

GROUP HOLDINGS LIMITED

LU Jian

Chairman, executive Director and chief executive officer

Hong Kong, 12 March 2020

As at the date of this announcement, the board of Directors of the Company comprises Mr. LU Jian and Mr. LIANG Junhua as executive Directors; Ms. SU Shaoping and Mr. TSUI Wing Tak as non-executive Directors; and Mr. ZHAO Junfeng, Mr. ZHUANG Wensheng and Ms. SONG Yi as independent non-executive Directors.

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