NEW ENTERTAINMENT HOLDINGS (06933.HK) ANNOUNCED THAT SEHKIHL, TIME ENTERTAINMENT INTERNATIONAL AND TIMCL, JOINTLY OWNED SUBSIDIARY SEHKIHL, HAVE ENTERED INTO A SUBSCRIPTION AGREEMENT TO FORM A JOINT VENTURE.

THE TERMS OF THE AGREEMENT STATE THAT SEHKIHL AGREES TO PURCHASE 2 SHARES OF TIME ENTERTAINMENT INTERNATIONAL NEW ORDINARY SHARES (COMBINED WITH THE EXISTING 100 SHARES ISSUED TO SEHKIHL, REPRESENTING 51% OF ALL ISSUED SHARE CAPITAL AFTER TIME'S SUBSCRIPTION EXPANSION) AT A SUBSCRIPTION PRICE OF $1 PER SHARE; TIMCL AGREES TO PURCHASE 98 SHARES OF TIME ENTERTAINMENT INTERNATIONAL NEW ORDINARY SHARES (49% of all issued share capital after the expansion of Time Entertainment International's subscribed shares) with a subscription price of $1 per share.

Upon completion, XIN Entertainment Holding's shareholding in Time Entertainment International was reduced from 100% to 51%, constituting a consideration for sale under the listing rules. Time Entertainment International has become a non-wholly owned subsidiary of New Entertainment Holdings and will continue to be integrated into the Group's financial statements.

According to previously disclosed information, Time Entertainment International will focus on developing social financial mobile applications using blockchain technology and providing technical support once the distribution is completed.

TIMCL'S BENEFICIAL OWNERS WANG XIAO AND YUAN-YUAN LAU ARE THE CHIEF MARKETING OFFICER AND CHIEF FINANCIAL OFFICER OF SINGAPORE ISLAND FENG TECH CO., LTD., WITH MORE THAN SIX YEARS OF EXPERIENCE IN BLOCKCHAIN BUSINESS AND SOCIAL FINANCE. (js/u)

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