The board of directors of Poly Culture Group Corporation Limited approved the joint establishment of Beijing Poly Music Art Development Corporation Limited by the company, its wholly-owned subsidiary, Beijing Poly Theatre Management Co. Ltd., and Beijing Junhe Yayue Culture Communication Corporation Limited with a total capital contribution of RMB 20 million. In particular, the Company, Poly Theatre and Junhe Yayue will contribute RMB 8 million, RMB 4 million and RMB 8 million, holding 40%, 20% and 40% equity interests of Music Art Corporation, respectively.

To the best knowledge of the Board, Junhe Yayue is an independent third party of the Company. It is proposed that the board of directors of Music Art Corporation will comprise five members, three of which will be appointed by the Company and Poly Theatre, and two of which will be appointed by Junhe Yayue. The company will also appoint the chairman and the chief financial officer.

Music Art Corporation was established on 7 August 2015 after obtaining its business license.