Recently, Far East Horizon Co., Ltd. (hereinafter referred to as "Far East Horizon", 03360. HK) and China Film Co., Ltd. (hereinafter referred to as "China Film", 600977. SH) signed a strategic cooperation framework agreement. By establishing an all-round strategic cooperation relationship, the two sides will take the opportunity of jointly building a "financial service platform for the film industry", give full play to their respective professional advantages in the industry, carry out in-depth "finance + industry" cooperation, take various measures to relieve the difficulties of the industry, and jointly promote the rapid recovery and sustained and healthy development of the film industry.

At the beginning of this year, COVID-19 pandemic spread all over the world, and the Chinese film industry was greatly impacted. Most enterprises were deeply affected and their demand for financing was urgent. At the same time, the pattern of the industry has also undergone great changes. Transformation, upgrading, integration and innovation have become the only way for the recovery and development of Chinese film industry.

At this critical stage, to make good use of financial services, to organically combine short-term rescue measures with long-term development strategy, and toenhance market confidence and enterprise motivation are important safeguard measures to promote the recovery of the film industry. Far East Horizon and China's film strategy will join hands to realize industrial upgrading and integration from the strategic level through the way of "financial empowerment + industrial value-added", thus turning crises into opportunities and strengthening the foundation of China's film industry, which is of far-reaching significance to the recovery and development of China's film industry.

In terms of financial services, the two sides will jointly build a financial service platform based on the characteristics of China's film industry, develop financial products, set up a risk and operation control system, and carry out cooperation in equipment financial leasing, box office factoring, etc. In terms of industrial cooperation, the two sides will actively expand the upstream and downstream businesses of the film industry chain and carry out cooperation in film publicity, entertainment marketing and content production.

The content of the strategic cooperation will be implemented by China Film Huaxia Film and Television Equipment Financial Leasing (Xiamen) Co., Ltd. (hereinafter referred to as "China Film Xiamen"), Far East International Financial Leasing Co., Ltd. and Sky City (Shanghai) Industrial Co., Ltd. (hereinafter referred to as "Sky City") under Far East Horizon. Sky City is the industrial platform under Far East Horizon in the great entertainment industry, focusing on all-round businesses such as industrial operation in film, television, and entertainment fields, investment banking.