The board of directors of Starlight Culture Entertainment Group Limited announced that on 4 January 2024 (after trading hours), the Company entered into a strategic cooperation framework agreement with Greenland Digital Technology Co. Ltd. ("Green Greenland Digital"), being a global leader in providing strategic digital advice and apply digital technology to improve business operation, pursuant to which the Company as a partner, is entitled to improve the development on metaverse business, advance its digital product platform construction and expand crossborder e-commerce operations. The principal activity of the Company is investment holding and the activities of the Group are media and culture business development.

As disclosed in the interim report of the Company for the six months ended 30 June 2023, the business of the Group has been adversely affected by the strikes of the Writers Guild of America and Screen Actors Guild- AFTRA. The Board has hence been identifying opportunities to diversify the income source of the Group. The Directors are of the view that the entering of the Strategic Cooperation Framework Agreement enables the Group and Greenland Digital to use the resources of both parties to operate and be more involved in digital platform in metaverse, digital product and virtual reality technology.

As such, the Directors believe that the Strategic Cooperation Framework Agreement could, on one hand, complement the business of the Group and, on the other hand, expand the client base of the Group. Accordingly, it will broaden the Group's revenue base in the future and is expected to increase investment returns to the Shareholders.