Huayi Tencent Entertainment : Completion of the Issue to HONY Capital of the HK$60 Million Tranche A portion of the Convertible Bonds with Aggregate Principal Amount of HK$120 Million

Press Release For Immediate Release

HUAYI TENCENT ENTERTAINMENT COMPANY LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 419.HK)

Completion of the Issue to HONY Capital of the HK$60 Million

Tranche A portion of the Convertible Bonds with Aggregate Principal Amount of HK$120 Million

(21 March 2024, Hong Kong)Huayi Tencent Entertainment Company Limited ("Huayi Tencent Entertainment", the "Company"; Stock code: 419.HK; together with its subsidiaries collectively known as the "Group") is pleased to announce that all the Tranche A Conditions Precedent under the Subscription Agreement in relation to the Convertible Bonds with Aggregate Principal Amount of HK$120 million have been fulfilled. The Tranche A Completion took place on 21 March 2024, and the Tranche A Bonds in the aggregate principal amount of HK$60 million have been issued to Hony Capital in accordance with the Terms and Conditions. The net proceeds from the issue of all the Convertible Bonds are expected to be utilized in the expansion of digitized operational services, operation of the smart healthcare services platform, payment of interest, and general working capital.

Hony Capital is the leading investment management firm that specializes in private equity buyout and expands into areas including real estate, venture capital, hedge fund, mutual fund. Hony Capital currently has USD 13 billion under management, with investors from China and the world's leading investment institutions, including pension funds, sovereign wealth funds, university endowment funds, insurance companies, family foundations and individual investors such as Goldman Sachs, Canadian Pension Plan Investment Board, Teacher Retirement System of Texas, Abu Dhabi Investment Authority, Kuwait Investment Authority, Temasek, National Council for Social Security Fund, and China Life.

As disclosed in the Announcement, under the Subscription Agreement and the Terms and Conditions, the Company undertakes that it shall appoint a person to be nominated by the Subscriber as a non-executive Director (the ''Subscriber NED'') within 30 days after the Tranche A Completion Date, and in the event of resignation, retirement or otherwise in respect of such non-executive Director, the Subscriber may nominate a person to fill the casual vacancy. The Board has noted that Hony Capital's strong expertise in investment management and financial fields, the Company is of the view that the appointment of the Subscriber NED will enhance the diversity of the Board and contribute to the robust development of the Company, which is in the interests of the Company and its Shareholders as a whole.

Mr. Yuen Hoi Po, Executive Director and Chief Executive Officer of Huayi Tencent Entertainment, said, "The completion of the Tranche A bonds will further strengthen the company's financial position and fuel its growth strategies, enabling it to pursue new opportunities in the market. This achievement also reflects investor confidence in the company's business and strong potential. Looking ahead, the company is committed to accelerating business growth and achieving its performance targets, with the aim of creating long-term value for its shareholders."

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About Huayi Tencent Entertainment Company Limited

Huayi Tencent Entertainment Company Limited (Stock Code: 00419.HK) conducts businesses mainly in internet medical healthcare sector, including "Echartnow", a pharmaceutical digital operation service platform, and "Meerkat Health", an intelligent health management platform, striving to provide a series of online healthcare services and to build an internet healthcare platform ecosystem.

For more information about Huayi Tencent Entertainment, please visit the official website of the Group:http://www.huayitencent.com .

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