About DIGIT HOLLYWOOD Company

We are a leading global online game publisher providing services for Chinese game developers, and have rapidly growing independent mobile game development capabilities. Our mission is to bring engaging and different gaming experiences to users across languages, cultures, and borders. Our services and products mainly include web games and mobile games. According to the Yiguan Report, in 2016, we were the largest web game publisher in terms of revenue generated by publishing web games developed by Chinese game developers in the international market, with a market share of 8.9%. In recent years, we have strategically expanded our business focus to develop and publish mobile games by enhancing our independent research and development capabilities to seize market opportunities brought about by the rapid growth of smartphone users, and our mobile games have also achieved remarkable results in many regional markets. As of March 31, 2017, based on the IP addresses we have recorded, we have a cumulative total of about 44.1 million registered users in more than 168 countries and regions worldwide, including about 20.5 million registered users from web games and about 23.6 million registered users from mobile games. With our deep understanding of the international market, rich distribution experience and proprietary technical know-how, we help game developers penetrate the international market with one-stop solutions (including game redesign, optimization, marketing, distribution, conversion revenue, payment support, and other user-related services), bringing them an extremely attractive value proposition. We quickly achieved success with our 2012 work, The Divine Comedy. It was our first game to generate a total bill of over 10 million dollars, and is the longest-lived game of its kind so far. We continue to carefully select viable web games produced by Chinese game developers for international users, and provide differentiated redesign and optimization to meet the needs of localized gameplay. As of the last practical date, we have released 25 web games in international markets. As we strategically expand our business focus to mobile game development and distribution, the experience and technical know-how we have accumulated from publishing web games allows us to take full advantage of our strong market leadership position and cost-effectively develop or outsource viable mobile games to attract investment from smartphone users and turn it into revenue. We have developed and published a variety of casual shooters for iOS and Android platforms, and have achieved great results in various regional markets (including Southeast Asia and South America). As of the last practical date, we have released 26 mobile games worldwide, 13 of which were developed in-house. As of the same date, we also have two licensed web games and two exclusive mobile games under intense planning to launch before the end of 2018. We are committed to building a strong technical team to support game distribution and internal development. As of March 31, 2017, our technical team included 31 members who specialize in game redesign and optimization, with an average of 7 years of relevant experience. According to the Yiguan Report, customized localization modifications are critical to penetrating international markets with geographical differences in language, culture, gameplay preferences, and consumption habits. Based on this way of thinking, we are modifying the structure of games released in different regional markets to attract users and invest in them with different gameplay preferences. For example, as of the last practical date, we have released mobile versions of several casual shooter games in various regional markets, with differentiated features, images, and virtual product designs. We are also frequently introducing fixes and updates to existing games to maintain user interest and enhance user satisfaction. As of March 31, 2017, our game development studio included 17 members with an average of nine years of relevant experience and produced several popular titles, including Gunny Mobi (in Vietnam) and MMOG (in Malaysia). We also seek to embed pop culture elements into the game to enhance the gaming experience. For example, in 2015, we obtained an intellectual property license to publish mobile games, which specifically included sports figures and scenes authorized by FC Barcelona. We have established stable partnerships with many reputable game developers in China. As of the last practical date, 20 of our 24 game developer partners have granted us exclusive licenses for international distribution, and 10 have been working with us for over 2 years. Among our partners, Seventh Avenue (the original developer of our flagship web titles (including The Divine Comedy and Bouncy Hall)) has collaborated with us since our inception to launch our games as exclusive partners in several major English-speaking countries and regions. In November 2015, a subsidiary of Seventh Avenue became a major shareholder through the acquisition of 23.0% of the company's interests. We believe this is an affirmation of our growth prospects. We also maintain stable partnerships with leading global distribution channels with a large user base, including major global social networks and app markets (such as Facebook, Apple Inc.'s App Store, Google Play, and Huawei App Marketplace). Since May 2012, we have published most of our web games on Facebook, instantly gaining its 1.9 billion active users worldwide. Our web game received a total of 35.9 million registered users through Facebook and generated a total of 11.7 million US dollars in channel fees for Facebook during the performance period. In recognition of our collaboration, Facebook awarded us the SignificationAward for Partnership and Contribution in 2014. We have grown steadily over our track record. The average monthly active users of our online games were approximately 1,182,399, 1,205,078, 1,258,360, and 1,378,438 in 2014, 2015, 2016, and the three months ended March 31, 2017, respectively. Our mobile gaming business grew significantly during the performance period. The average monthly active users of our mobile games increased from about 165,445 in 2014 to about 646,966 in 2015, and further increased to about 749,236 in 2016, with a CAGR of 112.8%. Our average monthly active users increased further by 19.2% to approximately 892,806 in the three months ended March 31, 2017. Our revenue for 2014, 2015, 2016, and the three months ended 2016 and March 31, 2017 was $22.8 million, $28.0 million, $28.4 million, $8.1 million, and $7.0 million, respectively. Our net profit for 2014, 2015, 2016, and the three months ended 2016 and March 31, 2017 was $7.1 million, $4.6 million, $6.9 million, $1.3 million, and $1.4 million, respectively. Our adjusted net profit for 2014, 2015, 2016 and the three months ended 2016 and March 31, 2017 was $7.3 million, $6.2 million, $7.6 million, $1.6 million, and $1.5 million, respectively. See “Financial Information - Key Income Statement Components - Non-IFRS Measurements” for details.