Future World Holdings (00572.HK)On August 24 withHuaxia Culture Technology (01566.HK)Entering into share exchange agreements. Future World Holdings purchased 4 million shares of Huaxia Culture at the subscription price of 2.38 yuan per share of Huaxia Culture. The board of directors of the company noticed that Huaxia Culture Co., Ltd. was suspended from trading on the Stock Exchange on October 7, 2021. According to the closing price of HK$0.61 per share reported by Huaxia Culture Co., Ltd. on the Stock Exchange on October 6, 2021, it is anticipated that the Group may confirm an unrealized fair value loss of approximately HK$7,080,000 in respect of Huaxia Culture's subscription shares held by the Group through other comprehensive income.

As a result, it will affect the company's net asset value situation for the fiscal year ending December 31, 2021. However, unrealized fair value losses are non-cash items and will not affect the Group's cash flow. The company is closely monitoring developments and will review its portfolio from time to time.

If necessary, the Company will make a separate announcement on the impact of the decline in the market value of Huaxia Culture's subscription shares held by the Group on the Company's annual results for the fiscal year ending December 31, 2021.