China Literature : SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO THE INTERIM REPORT FOR THE SIX MONTH ENDED JUNE 30, 2019

About this update from China Literature Ltd.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. CHINA LITERATURE LIMITED 閱 文 集 團 (incorporated in the Cayman Islands with limited liability) (Stock Code: 772) SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO THE INTERIM REPORT FOR THE SIX MONTH ENDED JUNE 30, 2019 Reference is made to (i) the prospectus of the company dated October 26, 2017 in relation to, among other things, the global offering, and (ii) the interim report of the Company for the six months ended June 30, 2019 (the " 2019 Interim Report ") published on August 28, 2019. Unless the context otherwise requires, capitalized terms used herein shall have the same meanings as those defined in the 2019 Interim Report. In addition to the information provided in the 2019 Interim Report, the Board would like to provide further information in relation to the intended timetable for use of net proceeds of approximately RMB6,145 million (HKD7,235 million) raised from the IPO as follows: Balance of Intended Amount of net proceeds timetable for net proceeds unutilized use of the Allocation of utilized up to as at unutilized Intended use of net proceeds net proceeds June 30, 2019 June 30, 2019 net proceeds (RMB in millions) (i) Expanding the Group's online reading business 1,843.4 683.7 1,159.7 By/before and sales and marketing activities December 31, 2020 (ii) Expanding the Group's involvement in the 1,843.4 258.5 1,584.90 By/before development of derivative entertainment products December 31, adapted from its online literary titles 2020 (iii) Funding our potential investments, acquisitions 1,843.4 1,843.4 0 Not and strategic alliances applicable 1 Balance of Intended Amount of net proceeds timetable for net proceeds unutilized use of the Allocation of utilized up to as at unutilized Intended use of net proceeds net proceeds June 30, 2019 June 30, 2019 net proceeds (RMB in millions) (iv) Working capital and general corporate purposes 614.5 0 614.5 By/before December 31, 2020 Total 6,144.7 2785.6 3,359.1 By order of the Board CHINA LITERATURE LIMITED Mr. James Gordon Mitchell Chairman of the Board and Non-executive Director Hong Kong, October 10, 2019 As at the date of this announcement, the Board comprises Mr. Wu Wenhui and Mr. Liang Xiaodong as executive Directors; Mr. James Gordon Mitchell, Mr. Lin Haifeng, Mr. Cao Huayi and Ms. Chen Fei as non-executive Directors; Ms. Yu Chor Woon Carol, Ms. Leung Sau Ting Miranda and Mr. Liu Junmin as independent non-executive Directors. 2

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