Starlight Culture Entertainment : PROFIT ALERT

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STARLIGHT CULTURE ENTERTAINMENT GROUP LIMITED

星光文化娛 樂 集團 有限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 1159)

PROFIT ALERT

This announcement is made by Starlight Culture Entertainment Group Limited (the "Company", together with its subsidiaries as the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

The board of directors of the Company (the "Board") wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that, based on its preliminary review of the unaudited management accounts and the information of the Group currently available to the Board, the Group is expected to record an unaudited consolidated net profit attributable to owners of the Company of approximately HK$12.1 million for the six months ended June 30, 2020, showing an increase of approximately HK$7.5 million compared to an unaudited consolidated net profit attributable to owners of the Company of approximately HK$4.6 million for the corresponding period in 2019. The Board considers that the improvement in the overall performance of the Group was mainly attributable to the decrease in operating expenses, administrative expenses and finance costs of approximately HK$33.0 million in total and the increase in gross profits of approximately HK$6.2 million, however offset by the decrease in net other income and net reversal of impairment losses of approximately HK$23.5 million in total and offset by the increase in tax expenses of approximately HK$8.5 million.

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The Group is still in the process of finalizing its results for the six months ended June 30, 2020. The Board would like to point out that this announcement (except the figures for the unaudited net profit attributable to owners of the Company for the six months ended June 30, 2019) is only based on the Company's preliminary evaluation of the available information of the Group and is not based on any financial figures or information that have been audited or reviewed by the Company's auditor and the Company's audit committee. Further adjustments and finalization in the Group's 2020 interim financial results may be required. Shareholders and investors are therefore advised to read carefully the interim results announcement of the Company for the six months ended June 30, 2020 to be published at the end of August 2020. Accordingly, Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Starlight Culture Entertainment Group Limited

Fang Jun

Chairman

Hong Kong, 21 August 2020

As at the date of this announcement, the Board comprises seven executive Directors, namely Mr. Fang Jun, Mr. Chau Chit, Mr. Luo Lei, Mr. Sang Kangqiao, Mr. Gao Qun, Mr. Chen Jie, and Ms. Wu Xiaoli; and four independent non-executive Directors, namely Mr. Wong Wai Kwan, Mr. Michael Ngai Ming Tak, Mr. Ma Runsheng and Mr. Wong Wai Hung.

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