Interim Results Turn Around with Net Profit Expected to Surge to Over HK$40 Million

HONG KONG, CHINA - Media OutReach - 11 February 2019 - Transmit Entertainment Limited("Transmit Entertainment" or the "Company", together with its subsidiaries, the"Group"; stock code: 1326) issued today a positive profit alert for, based onthe preliminary review on its unaudited consolidated management accounts forthe six months ended 31 December 2018, the Group is expected to record netprofit of over HK$40 million, turning around from a loss attributable to ownersof the Company of approximately HK$28.9 million for the corresponding period lastyear.

The outstandingresults were attributable to the increase in revenue from film production anddistribution thanks to the release of the film ''L Storm'', which was a bigsuccess, and also the profit contributed by the wholly-owned subsidiary KhorgasHouhai Culture Media Company Limited ("Houhai Culture"), which was acquired bythe Group in August 2018, consolidated into the accounts of the Group for thefirst time, contributing to the overall performance of the Group.

MsZhao Wenzhu, President and Executive Director of Transmit Entertainment, said, "We are committed to developing TransmitEntertainment into a leading all-round film and TV entertainment provider.After we acquired Houhai Culture last August, we now hold via it Broadcastingand TV Program Production and Operation License and intellectual propertyrights of variety shows and TV series. That plus the Group kicking off cooperationrecently with several famous artiste management agencies and scriptwriters, givingit much boosted artiste and scriptwriters resources, the Group has a strong foundationfor producing more quality TV series in the future.

"Goingforward, Transmit Entertainment will continue to build its business like apyramid with great productions as foundation, projects as pillars and talent onthe top, developing an 'entertainment pyramid' with innovation and dedication andin turn create a new entertainment model. We will tap the huge potential offilm and TV business in Greater China and capture the development opportunitiespresented by the consumption upgrade of entertainment content, with the aim ofcreating satisfactory returns for shareholders."

About Transmit Entertainment Limited (stock code：1326)

Transmit Entertainment is a mediaand entertainment company with a diverse portfolio. Its main businesses includingproduction, distribution and licensing of variety shows, television series andfilms; screening of films; post-production; and advertising, marketing andpublication. The Group mainly produces Chinese films, television entertainmentprograms and television drama series for the Hong Kong and Mainland Chinamarkets. It also operates five cinemas and one post-production company in HongKong. Its subsidiary Houhai Culture has a professional film and televisionproduction team particularly adept in producing variety shows and televisiondrama series, from screenwriting, shooting, post-production to distribution andmarketing. It also owns copyrights to a large number of television drama seriesand has been closely cooperating with top-tier broadcast networks and onlinestreaming platforms.