A letter from 28 August 2017

Wolf Warriors 2: a patriotic summer hit

Having grossed an estimated US$700 million since its release at the end of July, Wolf Warriors 2 is this summer’s megahit in China. A contemporary action movie, Wolf Warriors 2 focuses on the adventures of a maverick Chinese special-forces operative. The film is a sequel to Wolf Warriors, released in 2015. The first film grossed $89 million, but cost only Rmb50 million to make, against the Rmb200 million invested in its sequel.

A Chinese hero protects an abandoned, but photogenic, American doctor and a little African boy

After being dismissed from service, China’s deadliest special-forces operative, played by Wu Jing, comes to an unnamed African country to investigate the disappearance of his partner. In the meantime, civil war has broken out in this African country, and the Chinese government sends a fleet to rescue Chinese citizens. In the course of the operation, Wu Jing crosses paths with a ruthless and sadistic band of mercenaries, and has to take up arms again to put an end to the terrorising of innocent civilians. Fists, bullets, tanks and missiles all feature in this great action film, culminating in a climactic battle between the highly skilled “wolf warrior” and the brutal mercenary leader.

Wolf Warriors 2 is not simply action movie; the director wants to convey heroism and patriotism to its audience, a sentiment that can perhaps be traced back to the Han dynasty’s Chen Tang: " 明犯强汉者，虽远必诛 ” ("The man who affronts China will pay, though he be a thousand miles away"). Moreover, Wolf Warriors 2 may be the first Chinese movie set in an African country and actually shot in Africa (it was filmed in South Africa). At the beginning, there is an amusing product placement for Kweichow Moutai, the Chinese liquor producer and “stock hero”; Wu Jing drinks Moutai liquor with his African friends at a party.

Drinking patriotically To avoid international disputes, Wu Jing has to perform his rescue operation alone, without any military support, like a Chinese version of Rambo. As the crisis unfolds, an American doctor calls the US government for help, but Wu Jing tells her that all countries apart from China have abandoned the region to chaos, showing that the Chinese government is responsible for its citizens no matter what the circumstances.

Flying the flag

Just as the nature of the villains in James Bond films used to provide a reliable guide to Western foreign policy, perhaps we can see in Wolf Warriors 2 a reflection of China’s recent more vigorous approach to diplomatic relations and its interest in Africa. Although the villains in this movie are stateless mercenaries, their origins as former Navy Seals leaves no doubt as to their spiritual home.

The African boy calls Wu Jing “Godfather”, demonstrating the friendship between Chinese and African people

China is currently in its annual summer blackout period, in which no major Hollywood movies can be released. However, traces of the US industry's involvement can still be found in Wolf Warriors 2's success. A veteran Hollywood stunt team, consisting of Marvel mainstays, helped boost the quality and intensity of the fight sequences. This team has a partnership with Culture Media Company (000802), one of the local production companies behind Wolf Warriors 2.

Wu Jing, also known as Jacky Wu, is a Chinese martial artist, actor and director. He is best known for his roles in various martial arts films, in the tradition of Bruce Lee, and . He is supported by a mixed cast of domestic and foreign stars, including Yu Qian (a well-known comedian), Zhang Hai (a hot young actor) Frank Grillo (known for his role in Captain America: The Winter Soldier) and (a Chinese-American actress, model and singer/songwriter).

Jacky Huang, August 2017 www.odfund.com DISCLOSURE The information contained in this investor letter, which is a publication prepared and circulated by Open Door Capital Advisors (US), LLC and its affiliates (collectively, "Open Door"), is for discussion purposes only designed to highlight various market and portfolio information. While Open Door believes all the information set forth in this letter is from reliable sources, no representation or warranty can be made with respect to its completeness. Any projections, market outlooks or estimates in this presentation are forward-looking statements and are based upon internal analysis and certain assumptions, which reflect the views of the Open Door and should not be construed to be indicative of actual events which will occur. As such, the information may change in the future should any of the economic or market conditions Open Door used to base its assumptions change. Please note the investment opportunities identified and described may not represent actual investments or be representative of the entire portfolio. The investments discussed herein are for illustrative purposes only and it should not be assumed that such investments were or will be profitable or that the investments or recommendations Open Door makes in the future will be profitable or will equal the anticipated results discussed herein. Past performance is not necessarily indicative of future results. You should not rely on this presentation as the basis upon which to make an investment decision. There can be no assurance that investment objectives will be achieved. Investors must be prepared to bear the risk of a total loss of their investment.