Maoyan Entertainment provided preliminary unaudited consolidated group earnings guidance for the six months ended June 30, 2023 (1H2023). For the period, the group expects revenue to be in the range between approximately RMB 2,150 million and RMB 2,250 million, which represents an increase of approximately 80.5% to 88.9% as compared to the revenue of the Group for the six months ended June 30, 2022 (1H2022) of RMB 1,191.4 million; and the group expects to record a profit attributable to the owners of the Company ranging between approximately RMB 380 million and RMB 430 million, which represents an increase of approximately 150.2% to 183.1% as compared to the profit attributable to the owners of the Company of RMB 151.9 million. Based on information currently available, the Board believes that the aforementioned expected increase in the Group's profitability is mainly due to the following reasons: In 1H2023, with the recovery of domestic consumption and the strong support of national policies, China's entertainment industry has fully recovered.

According to data released by the China Film Administration, the total box office of the Chinese film market in 1H2023 amounted to RMB 26.271 billion, representing an increase of 52.91% from RMB 17.181 billion for 1H2022. The box office during the Chinese New Year Movie Season and the Dragon Boat Festival Movie Season of 2023 both ranked second in terms of box office of the corresponding movie seasons in the Chinese film history. The offline performance market also demonstrated a powerful recovery.

According to the Briefs of National Performing Arts Markets in the First Half of 2023 published by the China Association of Performing Arts, in 1H2023, the box office of commercial performances nationwide increased by 673.49% as compared with that of 1H2022; Upon the full recovery of the entertainment industry, the Group seized the opportunity to effectively develop its businesses, and thus the Group's overall performance outperformed the market. In particular, the entertainment content business of the Group performed well. In 1H2023, there is a substantial increase in the number of domestic movies, which the Group participated in distribution/production, as compared with that of 1H2022 and a number of such movies performed well in terms of box office.

For instance, the box office of the films, Full River Red during the Chinese New Year Movie Season and "Godspeed" during the May Day Movie Season, of which the Group acted as both the lead distributor and producer, exceeded RMB 4.5 billion (ranking sixth in the Chinese film history) and RMB 1.1 billion (being the box office champion during the May Day Movie Season), respectively.