2020 First Quarter Report

Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Focus Media Information Technology Co., Ltd.

April 2020

1 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Section I Important Notes

The Board of Directors, Board of Supervisors, directors, supervisors and senior management of Focus Media Information Technology Co., Ltd.

(hereinafter referred to as the “Company”) hereby guarantee the authenticity, accuracy and completeness of the information presented in this report and that it is free of any false records, misleading statements or material omissions, and will undertake individual and joint legal liabilities.

All directors have attended the board meeting approving this quarter report.

Jason JIANG Nanchun, the Company’s legal representative, KONG Weiwei, the person in charge of the accounting work, and WANG Lilin, the person in charge of the accounting institution (accounting officer), hereby declare and warrant that the financial statements within this quarter report are authentic, accurate and complete.

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Section II Company Profile

I. Key Accounting Information and Financial Indicators

Whether the Company need to retrospectively adjust or restate its accounting information in previous years □ Yes √ No

2020 Q1 2019 Q1 YoY Change (%)

Operating income (RMB) 1,938,423,282.73 2,610,958,669.84 -25.76%

Net profits attributable to shareholders of 37,887,241.36 340,378,444.93 -88.87% the Company (RMB)

Net profits attributable to shareholders of the Company before non-recurring profits -24,218,404.47 115,644,582.47 -120.94% and losses (RMB)

Net cash flows from operating activities 658,313,702.06 581,559,068.68 13.20% (RMB)

Basic earnings per share (RMB/share) – 0.0026 0.0234 -88.89% Note

Diluted earnings per share (RMB/share) – 0.0026 0.0234 -88.89% Note

Weighted average Return on Equity (ROE) 0.27% 2.42% -2.15%

As at March 31, 2020 As at December 31, 2019 Change (%)

Total assets (RMB) 18,553,028,568.54 18,687,079,233.62 -0.72%

Net assets attributable to shareholders of the 13,876,312,932.18 13,778,408,776.65 0.71% Company (RMB)

Note: In calculating the basic earnings per share and diluted earnings per share for the first quarter of 2019,

the weighted average number of shares of 99,612,604 treasury shares repurchased by the Company in the fourth

quarter of 2018 and 72,360,828 treasury shares repurchased by the Company in the first quarter of 2019 have been

deducted. In calculating the basic earnings per share and diluted earnings per share for the first quarter of 2020,

the weighted average number of shares of 99,612,604 treasury shares repurchased by the Company in the fourth

3 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report quarter of 2018 and 143,767,950 treasury shares repurchased by the Company in 2019 have been deducted.

Explanation: According to the provisions on transition from the old to the new standards, the Company has implemented the new revenue standard since January 1, 2020. The Company does not need to retrospectively adjust the comparative statements for 2019 and comparable periods, and only needs to adjust the amount of retained earnings at the beginning of the period and other related items in the financial statements in 2020 based on the cumulative impact of the first implementation of the standard, but does not adjust the information in the comparable period, and it does not need to retrospectively make adjustment for the previous years, that is, this change in accounting policy does not affect the Company’s financial indicators for 2019.

According to the new revenue standard, the Company’s long-term equity investment in the associate,

Shanghai Shuhe Information Technology Co., Ltd., at the beginning of 2020 increased by RMB80,610,205.66 compared with that at the end of 2019, and the long-term equity investment and the retained earnings at the beginning of the year are adjusted accordingly by an increase of RMB80,610,205.66. Apart from this adjustment, the new revenue standard has no other significant impact on the Company.

Items and Amounts of Non-recurring Profits and Losses √ Applicable □ Not applicable

Unit: RMB

Item 2020 Q1 Remarks

Profits or losses from disposal of non-current assets (including the 285,585.26 write-off for the impairment provision of accrued assets)

Government grants included in current profits and losses (excluding the

government grants closely related to the Company’s business operations 49,443,883.62 and government grants based on standard quota or quantitative amounts

according to unified national standards)

Capital occupancy fee received from non-financial enterprises and 6,621,969.16 included in the current profits and losses

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Profit or losses attributed to change in fair value for held-for-trading

financial assets, derivative financial assets, held-for-trading financial

liabilities, and derivative financial liabilities; and investment income in

disposal of held-for-trading financial assets, derivative financial assets, 24,238,468.97

held-for-trading financial liabilities, derivative financial liabilities and

other debt investments, excluding the effective hedging business related to

the normal operation of the Company

Other non-operating income and expenditures except the above items -2,460,221.60

Less: Impact of income tax 15,919,265.36

Impact of the minority interests (after tax) 104,774.22

Total 62,105,645.83 --

Explanations shall be given if the Company defines a non-recurring profit/loss item defined or listed in

the “Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the

Public No. 1–Non-recurring Profits and Losses” as a recurrent profit/loss item

□ Applicable √ Not applicable

During the Reporting Period, the Company did not define a non-recurring profit/loss item defined or listed in

the “Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public

No. 1–Non-recurring Profits and Losses” as a recurrent profit/loss item.

II. Total Number of Shareholders at the end of the Reporting Period and Information about Top 10 Shareholders

1. Total number of common shareholders and preferred shareholders with resumed voting rights and information about top 10 shareholders

Unit: Share

Total number of common shareholders at the end of the Reporting Period 199,951 Particulars about top 10 shareholders

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Sharehol Pledged or frozen Number of Nature of ding shares Name of shareholder Total shares held restricted shareholder percenta Amou shares held Status ge nt Foreign legal Media Management Hong Kong Limited 23.34% 3,425,818,777 0 person Foreign legal Hong Kong Securities Clearing Company Limited 8.25% 1,210,898,517 0 person Domestic Alibaba (China) Technology Co., Ltd. non-state-owned 5.28% 774,401,600 0 legal person Foreign legal Gio2 Hong Kong Holdings Limited 1.68% 247,236,384 0 person Domestic Shanghai Hongying Investment Management Center (Limited non-state-owned 1.09% 159,969,322 0 Partnership) legal person Domestic Shanghai Shanhong Investment Management Center (Limited non-state-owned 1.09% 159,969,322 0 Partnership) legal person Domestic Shanghai Hongqian Investment Management Center (Limited non-state-owned 1.09% 159,969,322 0 Partnership) legal person Domestic Shanghai Honglian Investment Management Center (Limited non-state-owned 1.09% 159,969,322 0 Partnership) legal person Industrial and Commercial Bank of China Limited – Huaan Media Others 1.05% 154,455,276 0 Internet Hybrid Securities Investment Fund Taikang Life Insurance Co., Ltd. – Investment Linked – Innovation Others 1.03% 151,431,834 0 Power Shares held by the top 10 shareholders of shares without trading restriction Number of shares without Type of shares Name of shareholder trading restrictions held Type Number Media Management Hong Kong Limited 3,425,818,777 RMB common shares 3,425,818,777 Hong Kong Securities Clearing Company Limited 1,210,898,517 RMB common shares 1,210,898,517 Alibaba (China) Technology Co., Ltd. 774,401,600 RMB common shares 774,401,600 Gio2 Hong Kong Holdings Limited 247,236,384 RMB common shares 247,236,384 Shanghai Hongying Investment Management Center (Limited 159,969,322 RMB common shares 159,969,322 Partnership) Shanghai Shanhong Investment Management Center (Limited 159,969,322 RMB common shares 159,969,322 Partnership) Shanghai Hongqian Investment Management Center (Limited 159,969,322 RMB common shares 159,969,322 Partnership) Shanghai Honglian Investment Management Center (Limited 159,969,322 RMB common shares 159,969,322 Partnership) Industrial and Commercial Bank of China Limited – Huaan Media 154,455,276 RMB common shares 154,455,276 Internet Hybrid Securities Investment Fund Taikang Life Insurance Co., Ltd. – Investment Linked – Innovation 151,431,834 RMB common shares 151,431,834 Power

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Among the above shareholders, Alibaba (China) Technology Co., Ltd. and Gio2 Hong Kong Holdings Limited are acting-in-concert parties; Shanghai Hongying Investment Management Center (Limited Partnership), Shanghai Shanhong Investment Management Center (Limited Partnership), Shanghai Explanation on the associated relationships or Hongqian Investment Management Center (Limited Partnership) and Shanghai Honglian Investment concerted actions among the above shareholders Management Center (Limited Partnership) are all subject to control of the same entity. The Company does not know whether there is any associated relationship among the other shareholders or whether they are parties acting in concert under the Measures for the Administration of Acquisition of Listed Companies (《上市公司收购管理办法》). Top 10 shareholders’ participation in securities No margin trading (if any) Whether the top 10 common shareholders or the top 10 non-restricted common shareholders carried out

any agreed repurchase during the Reporting Period □ Yes √ No

The top 10 common shareholders or the top 10 holders of common shares without trading restrictions did not

carry out any agreed repurchase during the Reporting Period.

2. Total number of preferred shareholders and the shareholding of the top 10 preferred shareholders

□ Applicable √ Not applicable

7 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Section III Significant Events

I. Information and explanation about variations in key financial statement items and financial indicators during the Reporting Period

Main reasons for more than 30% change in balance sheet items:

1. The closing balance of held-for-trading financial assets at the end of the period was RMB3,376.648 million, an increase of RMB1,034.665 million or 44.18% from the beginning of the year. The main reason was that the Company purchased bank wealth management products with the deposits deposited in the current account at the beginning of the year during the Reporting Period.

2. The closing balance of accounts receivable financing (notes receivable, that is, bank acceptance bills that have not yet expired) was RMB88.758 million, a decrease of RMB52.533 million or 37.18% as compared with the beginning of the year. The main reason was that the Company, taking into comprehensive consideration the factors such as the low discount rate of bank acceptance bills as a result of the impact of the macro-monetary easing policy during the outbreak during the Reporting Period, actively discounted unexpired bank acceptance bills.

3. The closing balance of other current assets was deductible input tax of RMB33.515 million at the end of the period, a decrease of RMB32.171 million or 48.98% from the beginning of the year. The main reason was that the input tax on the costs of procurement of equipment and media that have not been deducted before was gradually deducted during the Reporting Period.

4. The closing balance of accounts payable was RMB793.032 million, an increase of RMB222.139 million or

38.91% as compared with the beginning of the year. The main reason was that due to the implementation of more stringent epidemic prevention and control measures throughout the country during the Reporting Period, cinemas have been closed (currently not yet re-opened), and some cities, communities and roads had been locked down or closed (currently re-opened), imposing restrictions to normal advertising in some cities and regions by the

Company. Therefore, the Company needs to negotiate with the property owner or the management company on exemption or reduction of rent and other matters, so the payment of media resource rent payable which was due during the Reporting Period was suspended.

5. The closing balance of employee benefits payable was RMB136.099 million, a decrease of RMB97.17 million or 41.66% from the beginning of the year. The main reason was that the Company actually issued 2019

8 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report year-end bonus during the Reporting Period.

6. The closing balance of taxes payable was RMB408.967 million, a decrease of RMB228.495 million or

35.84% as compared with the beginning of the year. The main reason was that the Company prepaid 2019 annual income tax of RMB248.544 million during the Reporting Period.

Main reasons for significant change in important items in the income statement:

1. During the Reporting Period, the Company achieved an operating revenue of RMB1,938.423 million, a decrease of 25.76% as compared to RMB2,610.959 million for the same period of the previous year. The main reasons were that: (1) affected by COVID-19 outbreak during the Reporting Period, the demand of ad market in the PRC has declined significantly compared with the same period of the previous year; (2) in view of the implementation of more stringent epidemic prevention and control measures throughout the country, cinemas have been closed (currently not yet re-opened), and some cities, communities and roads had been locked down or closed during the Reporting Period (currently re-opened), imposing restrictions to normal advertising in some cities and regions by the Company.

2. During the Reporting Period, the Company’s operating costs were RMB1,210.597 million, a decrease of

26.93% as compared with RMB1,656.869 million for the same period of the previous year, of which the media rental costs decreased by RMB308.772 million or 26.66% compared with the same period of the previous year.

The main reason was that upon negotiation between the Company and the parties during the Reporting Period, most of the cinema operators have reduced/exempted the media rental costs of the cinemas of the Company during their lockdown and suspension period, and some communities and affected office buildings have also reduced/exempted the media rental costs of the buildings that are unable to advertise normally as a result of the impact of the outbreak.

3. During the Reporting Period, the Company’s business taxes and levies were RMB36.242 million, a decrease of 54.77% as compared to RMB80.135 million over the same period of the previous year. The main reasons were that: (1) the operating revenue decreased as compared with the same period during the Reporting

Period; (2) during the Reporting Period, the Ministry of Finance released a series of tax reduction and burden reduction policies, among which from July 1, 2019 to December 31, 2024, the cultural undertaking fee will be reduced within the range of 50% of the amount payable, so the Company’s cultural undertaking fee during the

Reporting Period was reduced from 3% to 1.5% of taxable operating income.

4. During the Reporting Period, the Company’s interest income was RMB27.489 million, an increase of

9 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

RMB10.529 million or 62.08% as compared to RMB16.96 million over the same period of the previous year. The main reason was that since the fourth quarter of 2019, in order to mitigate the impact of the continued decline in

Return of Equity of bank wealth management products, the Company has purchased more large-denomination fixed-term certificates of deposit and deposited part of the funds in capital gain accounts of joint-stock commercial banks with interest rates close to low-risk wealth management products.

5. During the Reporting Period, affected by local government fiscal policies and budgets, the government grants received by the Company was RMB45.246 million, a decrease of 81.12% as compared to RMB239.638 million for the same period of the previous year, resulting in a decrease of 79.37% in other revenue over the same period of the previous year.

6. During the Reporting Period, the investment loss recognized by the equity method for associates in the

Company’s investment revenue was RMB98.765 million, a decrease of 936.57% as compared to the investment revenue of RMB11.806 million recognized by the equity method for associates over the same period of the previous year. The main reason wat that affected by the epidemic, the operation of the associate Shanghai Shuhe

Information Technology Co., Ltd. did not meet the expectations. The investment loss recognized by the equity method for it in the first quarter of 2020 was RMB92.084 million (for the same period of 2019: The investment revenue from Shanghai Shuhe Information Technology Co., Ltd. recognized by the equity method was

RMB15.013 million).

7. After deducting the impact of the investment loss or revenue from associates recognized by the equity method, the total profits before income tax for the Reporting Period and the same period of the previous year were

RMB170.111 million and RMB403.666 million, respectively. The effective income tax rates for the Reporting

Period and the same period of the previous year were 21.8% and 20.9%, respectively, which were relatively stable.

In summary, during the Reporting Period, the Company realized a net profit attributable to shareholders of the Company of RMB37.887 million, a decrease of 88.87% as compared with the same period of the previous year.

Main reasons for significant change in important items in the cash flow statement:

1. During the Reporting Period, the net cash flows from operating activities were RMB658.314 million, an increase of RMB76.755 million or 13.20% as compared to the net inflow over the same period of the previous year.

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(1) Cash inflows from operating activities during the Reporting Period decreased by RMB1,216.277 million or 32.21% from the same period of the previous year, of which: (i) affected by the epidemic, the sales proceeds during the Reporting Period was RMB2,493.289 million, a decrease of 29.34% from the same period of the previous year; (ii) the government grants received was RMB45.246 million, a decrease of 81.12% as compared to

RMB239.638 million over the same period of the previous year.

(2) Cash outflows from operating activities during the Reporting Period decreased by RMB1,293.031 million or 40.48% as compared with the same period of the previous year, of which: (i) cash payments for goods purchased and services received during the Reporting Period (mainly for payment of media rental costs) was approximately RMB536.071 million, a decrease of RMB658.660 million or 55.13% as compared with the same period of the previous year. The main reason was that on the one hand, upon negotiation between the Company and the parties during the Reporting Period, most of the cinema operators have reduced/exempted the media rental costs of the cinemas of the Company during their lockdown and suspension period, and some communities and affected office buildings have also reduced/exempted the media rental costs of the buildings that are unable to advertise normally as a result of the impact of the outbreak. On the other hand, the Company was still negotiating with the relevant property owners or management companies to reduce/exempt the rents and other matters, so the rental payment of media resources has been suspended in the interim; (ii) due to the decrease in total revenue and profits and the reduction of levy of cultural undertaking fee by half based on turnover from July 1, 2019, the various types of taxes paid during the Reporting Period were RMB342.146 million, a decrease of RMB370.342 million or 51.98% as compared with the same period of the previous year.

2. During the Reporting Period, the net cash outflows from investing activities were RMB2,291.079 million, a decrease of RMB300.329 million or 11.59% as compared to the net cash outflows from investing activities of

RMB2,591.408 million over the same period of the previous year.

(1) During the Reporting Period, the Company purchased three-year fixed-term large-denomination certificates of deposit of RMB1,100.000 million (the three-year large-denomination certificates of deposit were not included in cash and cash equivalents in the cash flow statement), and made a net purchase of held-for-trading financial assets (that is, bank wealth management products) of RMB1,032.098 million, totaling RMB2,132.098 million, a decrease of RMB210.502 million as compared to net purchase of held-for-trading financial assets (that is, bank wealth management products) of RMB2,342.600 million over the same period of the previous year;

(2) During the Reporting Period, the Company further reduced capitalized expenditures, and paid cash for the purchase of fixed-asset equipment of approximately RMB16.913 million, a decrease of RMB159.267 million or

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90.40% as compared to RMB176.180 million over the same period of the previous year;

(3) The Company has made a direct investment of RMB172.750 million in total in funds and equity, an increase of RMB66.020 million as compared with the same period of the previous year.

3. During the Reporting Period, the net cash outflows from financing activities were RMB13.153 million, a decrease of RMB376.244 million or 96.62% as compared to the net cash outflows from financing activities of

RMB389.397 million over the same period of the previous year. The main reason was that the Company paid approximately RMB400.056 million for share repurchase in the same period of the previous year, and there were no such matters during the Reporting Period.

II. Progress and influence of significant events, analysis and explanation of corresponding solutions

□ Applicable √ Not applicable

III. Commitments made by the Company’s actual controllers, shareholders, related parties, purchasers, the Company and other related parties for the commitments overdue and not fulfilled during the Reporting Period √ Applicable □ Not applicable

(1) Share Reform Commitments

Committed YI Xianzhong by Commitment Shareholding reduction commitment type Only when the price of the Company’s share in the secondary market is not less than RMB10, can it be listed for sale through a stock exchange, and the price of the commissioned sale shall be not less than RMB10 (the above Commitment price shall be subject to the corresponding ex-rights calculation when the shareholders' interests change). The 2005 details distribution plan of the Company: based on the total share capital of 223.95 million shares, 3.5 additional shares per 10 shares shall be converted, the ex-right date was April 11, 2006, and it committed that the sales price shall be adjusted to not less than RMB7.41 after the ex-rights. Time of November 10, 2005 commitment Commitment Long-term period Fulfillment Fulfilling status

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Committed YI Xianzhong by Commitment Other commitments type In the event that the number of the shares listed for sale through a stock exchange reaches one percentage of the Commitment total number of the shares of the Company, the timely performance of the obligation of announcement shall be made details within two business days from the date on which such fact takes place. Time of November 10, 2005 commitment Commitment Long-term period Fulfillment Fulfilled status Note: Upon receipt of the notice from the shareholder Mr. YI Xianzhong in March 2020, the Company disclosed the “Announcement on Changes in Shares of the Company’s Shareholders”. From January 16, 2018 to the closing of March 23, 2020, the shareholding of the Company’s shares was reduced by 1.1302% cumulatively (for details, please refer to 2020-002 “Announcement on Changes in Shares of the Company’s Shareholders” published on the “Securities Times” and CNINFO (www.cninfo.com.cn) on March 26, 2020). As of the closing of March 23, 2020, Mr. YI Xianzhong held 23,977,638 shares of the Company, accounting for 0.1634% of the Company’s total share capital, which was less than 1%. As such, the above commitments have been fulfilled.

Committed GUAN Yuchan by Commitment Other commitments type In the event that the number of the shares listed for sale through a stock exchange reaches one percentage of the Commitment total number of the shares of the Company, the timely performance of the obligation of announcement shall be made details within two business days from the date on which such fact takes place. Time of November 10, 2005 commitment Commitment Long-term period Fulfillment Fulfilling status

(2) Commitment Made During Asset Restructuring

Committed Jason JIANG Nanchun; Media Management (HK); Power Star (HK); Glossy City (HK); by Giovanna Investment (HK); Gio2 (HK); FMCH; Rongxin Zhiming Commitment Commitments on the horizontal competition, related party transactions, occupation of funds

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type In the event that related party transactions are carried out between me/the Company and other companies controlled by me/the Company and the listed company and the companies controlled by it for inevitable or reasonable reasons in the future, I/the Company and other companies controlled by me/the Company shall trade at a fair and reasonable market price in accordance with the principles of openness, fairness and justice upheld by market transactions, and perform the decision-making procedures for related party transactions in accordance with the requirements of Commitment relevant laws, regulations and regulatory documents and perform information disclosure obligation in accordance details with law. I/The Company guarantees that I/the Company and other companies controlled by I/the Company will not obtain any improper interests through the related party transactions with the listed company and the companies controlled by it, or impose any improper obligation on the listed company and the companies controlled by it. If I/the Company trades with the listed company and the companies controlled by it in the violation of the abovementioned commitments, and it causes losses to the listed company and the companies controlled by it, I/the Company shall bear the corresponding liability for compensation. Time of August 29, 2015 commitment Commitment Long-term period Fulfillment Fulfilling status

Committed Jason JIANG Nanchun; Media Management (HK); FMCH; Rongxin Zhiming by Commitment Commitments on the horizontal competition, related party transactions, occupation of funds type I/The Company currently do(es) not control or manage, directly or indirectly, in any form within China or abroad, or jointly control or manage with other natural persons, legal persons, partnerships or organizations any economic entity, institution or economic organization that has engaged in any competition with the listed company. I/The Company do(es) not engaged in any horizontal competition with the listed company. From the date of issuing this letter of commitment, I/the Company will not control or manage, directly or indirectly, in any form (including but not limited to separate operation, through joint ventures or holding shares and other interests of another company or enterprise) within China or abroad, any economic entity, institution or economic organization that has engaged in Commitment any competition with the listed company. I/The Company guarantee(s) that legal and effective measures will be details taken to procure other companies, enterprises and other economic organizations controlled by me/the Company not to directly or indirectly control or manage in any form any economic entity, institution or economic organization that is identical or similar to the listed company /Focus Media and has or may have engaged in any competition with the business of the listed company. If the relevant company and enterprise controlled by me/the Company directly or indirectly controls and manages the economic entity, institution or economic organization that competes with the products or business of the listed company, I/the Company and the relevant company and enterprise controlled by me/the Company will put a halt on the production or operation of competing business or products, or integrate the competing business into the operation of the listed company, or transfer the competing business to a third party

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unconnected with me/the Company, or take other ways to avoid horizontal competition. Time of August 29, 2015 commitment Commitment Long-term period Fulfillment Fulfilling status

Committed Jason JIANG Nanchun; Media Management (HK); FMCH; Rongxin Zhiming by Commitment Other commitments type 1. Independence of the personnel (1) Ensure that the general manager, deputy general manager, Head of Finance, Board Secretary and other senior management of the listed company work on a full-time basis for the listed company, and do not hold other positions other than directors and supervisors in the Company and other enterprises controlled by the Company, and do not receive remuneration from the Company and other enterprises controlled by the Company. (2) Ensure that the financial staff of the listed company are independent, and do not work on a part-time basis for or receive remuneration from the Company and other enterprises controlled by the Company. (3) Ensure that the listed company has a complete and independent labor, HR and remuneration management system, and these systems are completely independent from the Company and other enterprises controlled by the Company. 2. Independence of the assets (1) Ensure that the listed company has independent and complete assets. The assets of the listed company are all under the control of the listed company and are independently owned and operated by the listed company. (2) Ensure that the Company and other enterprises controlled by the Company do not illegally occupy the funds and assets of the listed company in any way. (3) Ensure that the assets of the listed company are not used for illegal provision of guarantee for the debts of the Company and other enterprises controlled by the Company. 3. Financial independence (1) Ensure that the listed company establishes an independent financial department and Commitment an independent financial accounting system. (2) Ensure that the listed company has standardized and independent details financial accounting systems and financial management systems for subsidiaries. (3) Ensure that the listed company opens a bank account independently and does not share the bank account with the Company and other enterprises controlled by the Company. (4) Ensure that the listed company makes independent financial decisions, and the Company and other enterprises controlled by the Company do not interfere with the use and dispatch of the funds of the listed company in violation of laws and regulations. (5) Ensure that the listed company pays taxes independently according to law. 4. Independence of the institutions (1) Ensure that the listed company establishes a sound corporate governance structure of the joint-stock company according to law, and has an independent and complete organizational structure. (2) Ensure that the shareholders’ general meeting, the Board of Directors, the independent directors, the Board of Supervisors and senior management of the listed company independently exercise their functions and powers in accordance with laws, regulations and the Articles of Association. (3) Ensure that the listed company has an independent and complete organizational structure, and there is no institutional confusion between the Company and other enterprises controlled by the Company. 5. Independence of the business (1) Ensure that the listed company has the assets, manpower, qualifications and capabilities to carry out independent business activities, and is capable of operating in the market in an independent

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and continuous manner. (2) Ensure that the related party transactions between the Company and other enterprises controlled by the Company and the listed company are minimized, and if the related party transactions cannot be avoided or are carried out on reasonable grounds, such transactions shall be carried out legally in accordance with the principle of “openness, fairness and impartiality”. 6. To make sure the independence of the listed company from the Company and other companies controlled by the Company in other aspects. If the listed company suffers economic losses due to violation of the above commitments, the Company shall make a compensation to the listed company. Time of August 29, 2015 commitment Commitment Long-term period Fulfillment Fulfilling status

V. Securities investment

□ Applicable √ Not applicable

There was no securities investment during the Reporting Period.

VI. Entrusted wealth management

√ Applicable □ Not applicable

Unit: RMB’0000 Type Source of funds for Amount of entrusted Overdue outstanding Type entrusted wealth Undue balance wealth management amount management Wealth management products provided by The Company’s own fund 337,664.77 337,664.77 0 banks Total - 337,664.77 337,664.77 0

VII. Derivative investment

□ Applicable √ Not applicable

There was no derivative investment during the Reporting Period.

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VIII. Illegal provision of guarantees for external parties

□ Applicable √ Not applicable

The Company did not illegally provide guarantees for external parties during the Reporting Period.

IX. Occupation of the Company’s capital by the controlling shareholder or its related parties for non-operating purposes

□ Applicable √ Not applicable

During the Reporting Period, the Company’s capital was not occupied by the controlling shareholder or its related parties for non-operating purposes.

X. Registration form for conduct of research, communication, interviews and other activities during the Reporting Period

□ Applicable √ Not applicable

During the Reporting Period, the Company did not conduct any research, communication, interviews and other activities.

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Section IV Financial Reports

I. Financial Reports

1. Consolidated Balance Sheet

Prepared by: Focus Media Information Technology Co., Ltd. March 31, 2020 Unit: RMB Item March 31, 2020 December 31, 2019 Current Assets: Cash and cash equivalents 3,314,879,189.38 3,860,521,939.04 Balances with clearing agencies Lendings with banks and other financial institutions Held-for-trading financial assets 3,376,647,663.33 2,341,983,125.78 Derivative financial assets Notes receivable Accounts receivable 3,726,766,662.55 4,169,529,889.65 Accounts receivable financing 88,757,888.45 141,291,042.36 Prepayments 717,957,938.14 867,147,461.42 Premiums receivable Amounts receivable under reinsurance contracts Reinsurer’s share of insurance contract reserves Other receivables 61,473,770.60 60,278,220.01 Including: Interest receivable Dividends receivable Financial assets purchased under resale agreements Inventories 25,647,488.79 4,190,856.88 Contract assets Held-for-sale assets Non-current assets due within one year Other current assets 33,514,648.16 65,685,752.61 Total Current Assets 11,345,645,249.40 11,510,628,287.75 Non-current Assets: Loans and advances to customers Debt investments Other debt investments Long-term receivables Long-term equity investments 1,099,200,077.52 1,117,250,673.84 Other equity instruments investment 904,703,711.70 849,464,175.16 Other non-current financial assets 1,951,392,282.13 1,842,510,202.69 Investment properties Fixed assets 1,471,853,917.84 1,580,744,018.10 Construction in progress 7,144,285.33 6,870,330.14 Productive biological assets Oil and gas assets Right-to-use assets Intangible assets 37,684,591.38 44,706,301.47 Development expenditures Goodwill 168,492,658.06 168,868,626.63 Long-term prepaid expenses 22,776,238.33 25,186,395.39 Deferred tax assets 918,618,273.57 917,600,832.45 Other non-current assets 625,517,283.28 623,249,390.00 Total Non-current Assets 7,207,383,319.14 7,176,450,945.87 Total Assets 18,553,028,568.54 18,687,079,233.62

18 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Current Liabilities: Short-term borrowings 48,642,138.05 50,609,581.06 Borrowings from central bank Capitals taken from banks and other financial institutions Held-for-trading financial liabilities Derivative financial liabilities Notes payable Accounts payable 793,032,207.42 570,893,194.71 Receipts in advance 498,043,254.05 513,870,704.33 Contract liabilities Financial assets sold under repurchase agreements Customer deposits and deposits from banks and other financial institutions Funds from securities trading agency Funds from underwriting securities agency Employee benefits payable 136,098,641.58 233,268,937.40 Taxes payable 408,967,415.60 637,461,933.58 Other payables 1,474,642,274.97 1,595,994,935.76 Including: Interest payable Dividends payable 5,920,703.99 5,920,703.99 Fees and commissions payable Amounts payable under reinsurance contracts Held-for-sale liabilities Non-current liabilities due within one year 68,125,257.91 68,752,639.75 Other current liabilities Total Current Liabilities 3,427,551,189.58 3,670,851,926.59 Non-current Liabilities: Insurance contract reserves Long-term borrowings 819,915,709.51 802,310,355.11 Bonds payable Including: Preferred shares Perpetual bond Leasing liabilities Long-term payables Long-term employee benefits payables 4,186,187.58 4,186,187.58 Estimated liabilities Deferred revenue 921,065.98 900,000.00 Deferred tax liabilities 202,206,026.82 202,479,198.83 Other non-current liabilities Total non-current liabilities 1,027,228,989.89 1,009,875,741.52 Total liabilities 4,454,780,179.47 4,680,727,668.11 Owners’ Equity: Share capital 333,658,271.10 333,658,271.10 Other equity instruments Including: Preferred shares Perpetual bond Capital reserves 388,046,005.12 388,046,005.12 Less: Treasury share 1,530,149,001.70 1,530,149,001.70 Other comprehensive revenue -255,801,269.84 -235,207,978.35 Special reserves Surplus reserves 269,230,308.61 269,230,308.61 General risk reserves Retained earnings 14,671,328,618.89 14,552,831,171.87 Total owners’ equity attributable to owner of the 13,876,312,932.18 13,778,408,776.65 Company Minority interests 221,935,456.89 227,942,788.86 Total owners’ equity 14,098,248,389.07 14,006,351,565.51

19 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Total liabilities and owners’ equity 18,553,028,568.54 18,687,079,233.62

Legal representative: Jason JIANG Nanchun

Person in charge of the accounting work: KONG Weiwei

Person in charge of the accounting institution: WANG Lilin

2. Balance Sheet of the Parent Company

Unit: RMB Item March 31, 2020 December 31, 2019 Current Assets: Cash and cash equivalents 1,091,895.05 1,532,251.46 Held-for-trading financial assets Derivative financial assets Notes receivable Accounts receivable Accounts receivable financing Prepayments Other receivables 9,187,846,808.79 9,223,056,808.79 Including: Interest receivable Dividends receivable 8,955,512,718.79 8,990,722,718.79 Inventories Contract assets Held-for-sale assets Non-current assets due within one year Other current assets 1,646,566.52 1,668,494.33 Total Current Assets 9,190,585,270.36 9,226,257,554.58 Non-current Assets: Debt investments Other debt investments Long-term receivables Long-term equity investments 46,345,665,423.87 46,346,241,416.09 Other equity instruments investment Other non-current financial assets Investment properties Fixed assets Construction in progress Productive biological assets Oil and gas assets Right-to-use assets Intangible assets Development expenditures Goodwill

20 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Long-term prepaid expenses Deferred tax assets Other non-current assets 0.00 0.00 Total Non-current Assets 46,345,665,423.87 46,346,241,416.09 Total Assets 55,536,250,694.23 55,572,498,970.67 Current Liabilities: Short-term borrowings Held-for-trading financial liabilities Derivative financial liabilities Notes payable Accounts payable Receipts in advance Contract liabilities Employee benefits payable 227,970.56 224,665.75 Taxes payable 107,279.23 35,297,684.52 Other payables 25,772.38 23,479.18 Including: Interest payable Dividends payable Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities Total Current Liabilities 361,022.17 35,545,829.45 Non-current Liabilities: Long-term borrowings Bonds payable Including: Preferred shares Perpetual bond Leasing liabilities Long-term payables Long-term employee benefits payables Estimated liabilities Deferred revenue Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 361,022.17 35,545,829.45 Owners’ Equity: Share capital 14,677,880,280.00 14,677,880,280.00 Other equity instruments Including: Preferred shares Perpetual bond Capital reserves 30,441,144,477.48 30,441,144,477.48 Less: Treasury share 1,530,149,001.70 1,530,149,001.70 Other comprehensive revenue Special reserves

21 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Surplus reserves 1,518,092,014.18 1,518,092,014.18 Retained earnings 10,428,921,902.10 10,429,985,371.26 Total owners’ equity 55,535,889,672.06 55,536,953,141.22 Total liabilities and owners’ equity 55,536,250,694.23 55,572,498,970.67

Legal representative: Jason JIANG Nanchun

Person in charge of the accounting work: KONG Weiwei

Person in charge of the accounting institution: WANG Lilin

3. Consolidated Income Statement

Unit: RMB Item 2020 Q1 2019 Q1 1. Total operating income 1,938,423,282.73 2,610,958,669.84 Including: Operating income 1,938,423,282.73 2,610,958,669.84 Interest income Premiums earned Fee and commission revenue II. Total operating costs 1,757,225,162.17 2,400,948,307.49 Including: Operating costs 1,210,596,722.33 1,656,869,284.94 Interest expenses Fees and commissions expenses Surrender charge fees Net claims paid Net change in insurance liability reserves Policyholder dividend expenses Expenses for reinsurance Taxes and levies 36,242,155.61 80,134,551.29 Selling expenses 367,969,018.40 486,078,688.65 General and administrative expenses 120,381,479.26 130,650,751.02 Research and Development (R&D) expenses 33,364,494.57 48,007,303.02 Financial expenses -11,328,708.00 -792,271.43 Including: Interest expenses 16,438,542.16 14,987,482.29 Interest income 27,488,507.22 16,960,299.20 Add: Other income 49,443,883.62 239,637,889.39 Investment income (Losses are indicated by “－”) -72,856,220.11 40,649,033.27 Including: Revenue from investments in associates and -98,764,821.88 11,806,126.28 joint ventures Gains on derecognition of financial assets measured

at amortized cost Foreign exchange profits (Losses are indicated by “－”) Profits from hedging of net exposure (Losses are indicated

by “－”) Gain from changes in fair values (Losses are indicated by -1,670,132.80 20,021,297.00 “－”) Credit impairment losses (Losses are indicated by “－”) -82,594,937.12 -84,086,014.59 Impairment losses of assets (Losses are indicated by “－”) Profits from disposal of assets (Losses are indicated by 285,585.26 10,378.48 “－”) III. Operating profit (Loss is indicated by “－”) 73,806,299.41 426,242,945.90 Add: Non-operating revenue 141,850.17 231,865.84 Less: Non-operating expenses 2,602,071.77 11,002,422.62 IV. Total profit (Total losses are indicated by “－”) 71,346,077.81 415,472,389.12 Less: Income tax expenses 37,102,573.65 84,493,061.31 V. Net profit (Net loss is indicated by “－”) 34,243,504.16 330,979,327.81 (1) Classified by business continuity 1. Net profit from continuing operations (Net loss is indicated 34,243,504.16 330,979,327.81 by “－”) 2. Net profit from discontinued operations (Net loss is indicated 0.00 0.00 by “－”) (2) Classified by ownership 1. Net profit attributable to owners of the Company 37,887,241.36 340,378,444.93 2. Profit or loss attributable to minority interests -3,643,737.20 -9,399,117.12 VI. Other comprehensive revenue, net of tax -22,956,886.26 -12,549,821.44 Other comprehensive revenue attributable to owners of the parent -20,593,291.49 -11,129,556.95 company, net of tax (1) Other comprehensive income that will not be reclassified -23,060,248.24 -2,623,207.00 subsequently to profit or loss

22 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

1. Changes in re-measurement of defined benefit plan 2. Other comprehensive revenue that cannot be

transferred into profit or loss under equity method 3. Changes in fair value of other equity instruments -23,060,248.24 -2,623,207.00 investment 4. Changes in the fair value of the Company’s own

credit risk 5. Others (II) Other comprehensive income to be reclassified 2,466,956.75 -8,506,349.95 subsequently to profit or loss 1. Other comprehensive revenue that are able to be

transferred into profit or loss under equity method 2. Changes in fair value of other debt investments 3. Amount of financial assets reclassified into other

comprehensive income 4. Credit impairment provisions for other debt

investments 5. Cash flow hedge reserve 6. Exchange differences arising on conversion of 2,466,956.75 -8,506,349.95 financial statements denominated in foreign currencies 7. Others Other comprehensive revenue attributable to minority -2,363,594.77 -1,420,264.49 shareholders, net of tax VII. Total comprehensive revenue 11,286,617.90 318,429,506.37 Total comprehensive revenue attributable to owners of the 17,293,949.87 329,248,887.98 parent company Total comprehensive revenue attributable to minority -6,007,331.97 -10,819,381.61 shareholders VIII. Earnings per share (I) Basic earnings per share 0.0026 0.0234 (II) Diluted earnings per share 0.0026 0.0234 In case of merger of enterprises under the same control in the current period, the net profit realized by the merged party before the merger is: RMB0.00, and the net profit realized by the merged party in the previous period is: RMB0.00. Legal representative: Jason JIANG Nanchun Person in charge of the accounting work: KONG Weiwei Person in charge of the accounting institution: WANG Lilin 4. Income Statement of the Parent Company

Unit: RMB Item 2020 Q1 2019 Q1 I. Operating income 0.00 0.00 Less: Operating cost 0.00 0.00 Taxes and levies Selling expenses General and administrative expenses 913,402.24 1,027,698.50 Research and Development (R&D) expenses Financial expenses -26,937.37 -223,008.23 Including: Interest expenses Interest income 28,835.69 225,449.83 Add: Other income 398,987.93 3,400,000.00 Investment income (Losses are indicated by “－”) -575,992.22 -543,014.48 Including: Revenue from investments in associates and joint -575,992.22 -737,150.15 ventures Gains on derecognition of financial assets measured at amortized

cost (Losses are indicated by “-”) Profits from hedging of net exposure (Losses are indicated by

“－”) Gain from changes in fair values (Losses are indicated by “－”) Credit impairment losses (Losses are indicated by “－”) Impairment losses of assets (Losses are indicated by “－”)

23 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Profits from disposal of assets (Losses are indicated by “－”) II. Operating profit (Loss is indicated by “－”) -1,063,469.16 2,052,295.25 Add: Non-operating revenue Less: Non-operating expenses III. Total profit (Total losses are indicated by “－”) -1,063,469.16 2,052,295.25 Less: Income tax expenses 641,609.29 IV. Net profit (Net loss is indicated by “－”) -1,063,469.16 1,410,685.96 (1) Net profit from continuing operations (Net loss is indicated by “－”) -1,063,469.16 1,410,685.96 (2) Net profit from discontinued operations (Net loss is indicated by

“－”) V. Other comprehensive income, net of tax (1) Other comprehensive income that will not be reclassified

subsequently to profit or loss 1. Changes in re-measurement of defined benefit plan 2. Other comprehensive revenue that cannot be transferred into

profit or loss under equity method 3. Changes in fair value of other equity instruments investment 4. Changes in the fair value of the Company’s own credit risk 5. Others (II) Other comprehensive income to be reclassified subsequently to

profit or loss 1. Other comprehensive revenue that are able to be transferred

into profit or loss under equity method 2. Changes in fair value of other debt investments 3. Amount of financial assets reclassified into other

comprehensive income 4. Credit impairment provisions for other debt investments 5. Cash flow hedge reserve 6. Exchange differences arising on conversion of financial

statements denominated in foreign currencies 7. Others VI. Total comprehensive revenue -1,063,469.16 1,410,685.96 VII. Earnings per share (I) Basic earnings per share (II) Diluted earnings per share

Legal representative: Jason JIANG Nanchun

Person in charge of the accounting work: KONG Weiwei

Person in charge of the accounting institution: WANG Lilin

5. Consolidated Cash Flow Statement

Unit: RMB Item 2020 Q1 2019 Q1 I. Cash flows from operating activities: Cash received from sale of goods or rendering of services 2,493,288,965.48 3,528,598,348.78 Net increase in customer deposits and deposits from banks and other

financial institutions Net increase in borrowings from central bank Net increase in placements from other financial institutions Cash received from premiums under original insurance contract Net cash received from reinsurance business

24 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Net increase in insurance deposits and investment funds Cash received from interest, fees and commissions Net increase in placements from other banks Net increase in capital from repurchase arrangements Net cash received from trading securities for customers Receipts of tax refunds Other cash receipts relating to operating activities 66,259,111.44 247,226,222.77 Sub-total of cash inflows from operating activities 2,559,548,076.92 3,775,824,571.55 Cash payments for goods purchased and services received 536,071,448.34 1,194,730,959.94 Net increase in loans and advances to customers Net increase in balance with the central bank and due to banks and other

financial institutions Cash payments for claims and policyholders’ benefits under original

insurance contracts Net increase in lending to banks and other financial institutions Cash paid for interest, fees and commissions Cash payments for insurance policy dividends Cash paid to and on behalf of employees 421,814,916.95 488,989,396.47 Payments of various types of taxes 342,146,114.68 712,488,410.51 Other cash payments relating to operating activities 601,201,894.89 798,056,735.95 Sub-total of cash outflows from operating activities 1,901,234,374.86 3,194,265,502.87 Net Cash Flow from Operating Activities 658,313,702.06 581,559,068.68 II. Cash flows from investing activities: Cash receipts from recovery of investments Cash receipts from investment revenue 30,334,639.52 33,497,406.99 Net cash receipts from disposals of fixed assets, intangible assets and 347,524.72 176,805.12 other long-term assets Net cash receipts from disposals of subsidiaries and other business units Other cash receipts relating to investing activities 980,870,000.00 2,503,400,000.00 Sub-total of cash inflows from investing activities 1,011,552,164.24 2,537,074,212.11 Cash payments to acquire or construct fixed assets, intangible assets and 16,913,407.31 176,179,962.26 other long-term assets Cash paid to acquire investments 1,272,750,000.00 106,730,180.53 Net increase in pledged loans Net cash payments to acquire subsidiaries and other business units -427,601.57 Other cash payments relating to investing activities 2,012,968,000.00 4,846,000,000.00 Sub-total of cash outflows from investing activities 3,302,631,407.31 5,128,482,541.22 Net Cash Flow from Investing Activities -2,291,079,243.07 -2,591,408,329.11 III. Cash flows from financing activities: Cash receipts from capital contributions 14,889,435.43 Including: cash received by subsidiaries from capital contributions from 14,889,435.43 minority shareholders Cash receipts from borrowings 7,168,267.21 Other cash receipts relating to financing activities Sub-total of cash inflows from financing activities 22,057,702.64 Cash repayments of borrowings Cash payments for distribution of dividends or profits or settlement of 13,152,767.84 11,398,143.68 interest expenses Including: dividends and profits paid by subsidiaries to minority

shareholders Other cash payments relating to financing activities 400,056,185.38 Sub-total of cash outflows from financing activities 13,152,767.84 411,454,329.06 Net Cash Flow from Financing Activities -13,152,767.84 -389,396,626.42 IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents -924,925.71 -5,282,463.90 V. Net Increase in Cash and Cash Equivalents -1,646,843,234.56 -2,404,528,350.75 Add: Opening balance of Cash and Cash Equivalents 3,167,927,614.07 3,657,673,936.10 VI. Closing Balance of Cash and Cash Equivalents 1,521,084,379.51 1,253,145,585.35

Legal representative: Jason JIANG Nanchun Person in charge of the accounting work: KONG Weiwei Person in charge of the accounting institution: WANG Lilin

25 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

6. Cash Flow Statement of the Parent Company

Unit: RMB Item 2020 Q1 2019 Q1 I. Cash flows from operating activities: Cash received from sale of goods or rendering of services Receipts of tax refunds Other cash receipts relating to operating activities 427,823.62 3,625,449.83 Sub-total of cash inflows from operating activities 427,823.62 3,625,449.83 Cash payments for goods purchased and services received Cash paid to and on behalf of employees 876,572.90 869,560.85 Payments of various types of taxes 35,168,477.48 51,006,000.00 Other cash payments relating to operating activities 33,129.65 37,157,438.95 Sub-total of cash outflows from operating activities 36,078,180.03 89,032,999.80 Net Cash Flow from Operating Activities -35,650,356.41 -85,407,549.97 II. Cash flows from investing activities: Cash receipts from recovery of investments Cash receipts from investment revenue 35,210,000.00 352,194,135.67 Net cash receipts from disposals of fixed assets, intangible

assets and other long-term assets Net cash receipts from disposals of subsidiaries and other

business units Other cash receipts relating to investing activities Sub-total of cash inflows from investing activities 35,210,000.00 352,194,135.67 Cash payments to acquire or construct fixed assets, intangible

assets and other long-term assets Cash paid to acquire investments Net cash payments to acquire subsidiaries and other business

units Other cash payments relating to investing activities Sub-total of cash outflows from investing activities Net Cash Flow from Investing Activities 35,210,000.00 352,194,135.67 III. Cash flows from financing activities: Cash receipts from capital contributions Cash receipts from borrowings Other cash receipts relating to financing activities Sub-total of cash inflows from financing activities Cash repayments of borrowings Cash payments for distribution of dividends or profits or

settlement of interest expenses Other cash payments relating to financing activities 400,056,185.38 Sub-total of cash outflows from financing activities 400,056,185.38 Net Cash Flow from Financing Activities -400,056,185.38

26 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

IV. Effect of Foreign Exchange Rate Changes on Cash and Cash

Equivalents V. Net Increase in Cash and Cash Equivalents -440,356.41 -133,269,599.68 Add: Opening balance of Cash and Cash Equivalents 1,532,251.46 237,729,631.27 VI. Closing Balance of Cash and Cash Equivalents 1,091,895.05 104,460,031.59

Legal representative: Jason JIANG Nanchun Person in charge of the accounting work: KONG Weiwei Person in charge of the accounting institution: WANG Lilin

II. Notes on financial statement adjustments

1. The financial statements at the beginning of the year for the first implementation of adjustment in the new revenue standard and new lease standard in 2020

√ Applicable □ Not applicable

Consolidated Balance Sheet Unit: RMB

Item December 31, 2019 January 1, 2020 Adjusted amount

Current Assets:

Cash and cash equivalents 3,860,521,939.04 3,860,521,939.04

Held-for-trading financial assets 2,341,983,125.78 2,341,983,125.78

Accounts receivable 4,169,529,889.65 4,169,529,889.65

Accounts receivable financing 141,291,042.36 141,291,042.36

Prepayments 867,147,461.42 867,147,461.42

Other receivables 60,278,220.01 60,278,220.01

Inventories 4,190,856.88 4,190,856.88

Other current assets 65,685,752.61 65,685,752.61

Total Current Assets 11,510,628,287.75 11,510,628,287.75

Non-current Assets:

Long-term equity investments 1,117,250,673.84 1,197,860,879.50 80,610,205.66

Other equity instruments 849,464,175.16 849,464,175.16 investment

Other non-current financial 1,842,510,202.69 1,842,510,202.69 assets

Fixed assets 1,580,744,018.10 1,580,744,018.10

27 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Construction in progress 6,870,330.14 6,870,330.14

Intangible assets 44,706,301.47 44,706,301.47

Goodwill 168,868,626.63 168,868,626.63

Long-term prepaid expenses 25,186,395.39 25,186,395.39

Deferred tax assets 917,600,832.45 917,600,832.45

Other non-current assets 623,249,390.00 623,249,390.00

Total Non-current Assets 7,176,450,945.87 7,257,061,151.53 80,610,205.66

Total Assets 18,687,079,233.62 18,767,689,439.28 80,610,205.66

Current Liabilities: Short-term borrowings 50,609,581.06 50,609,581.06 Accounts payable 570,893,194.71 570,893,194.71 Receipts in advance 513,870,704.33 513,870,704.33 Employee benefits payable 233,268,937.40 233,268,937.40 Taxes payable 637,461,933.58 637,461,933.58 Other payables 1,595,994,935.76 1,595,994,935.76 Dividends payable 5,920,703.99 5,920,703.99 Non-current liabilities due 68,752,639.75 68,752,639.75 within one year Total Current Liabilities 3,670,851,926.59 3,670,851,926.59 Non-current Liabilities: Long-term borrowings 802,310,355.11 802,310,355.11 Long-term employee benefits 4,186,187.58 4,186,187.58 payables Deferred revenue 900,000.00 900,000.00 Deferred tax liabilities 202,479,198.83 202,479,198.83 Total non-current liabilities 1,009,875,741.52 1,009,875,741.52 Total liabilities 4,680,727,668.11 4,680,727,668.11 Owners’ Equity: Share capital 333,658,271.10 333,658,271.10 Capital reserves 388,046,005.12 388,046,005.12 Less: Treasury shares 1,530,149,001.70 1,530,149,001.70 Other comprehensive revenue -235,207,978.35 -235,207,978.35 Surplus reserves 269,230,308.61 269,230,308.61 Retained earnings 14,552,831,171.87 14,633,441,377.53 80,610,205.66 Total owners’ equity attributable to 13,778,408,776.65 13,859,018,982.31 80,610,205.66 owner of the Company Minority interests 227,942,788.86 227,942,788.86

28 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Total owners’ equity 14,006,351,565.51 14,086,961,771.17 80,610,205.66

Total liabilities and owners’ equity 18,687,079,233.62 18,767,689,439.28 80,610,205.66 The adjustments are explained as below:

According to the provisions on transition from the old to the new standards, the Company has implemented the new revenue standard since January 1, 2020. The Company does not need to retrospectively adjust the comparative statements for 2019 and comparable periods, and only needs to adjust the amount of retained earnings at the beginning of the period and other related items in the financial statements in 2020 based on the cumulative impact of the first implementation of the standard, but does not adjust the information in the comparable period, and it does not need to retrospectively make adjustment for the previous years, that is, this change in accounting policy does not affect the Company’s financial indicators for 2019.

According to the new revenue standard, the Company’s long-term equity investment in the associate,

Balance Sheet of the Parent Company Unit: RMB Item December 31, 2019 January 1, 2020 Adjusted amount

Current Assets:

Cash and cash 1,532,251.46 1,532,251.46 equivalents

Other receivables 9,223,056,808.79 9,223,056,808.79

Dividends 8,990,722,718.79 8,990,722,718.79 receivable

Other current assets 1,668,494.33 1,668,494.33

Total Current Assets 9,226,257,554.58 9,226,257,554.58

Non-current Assets:

Long-term equity 46,346,241,416.09 46,346,241,416.09 investments

Total Non-current Assets 46,346,241,416.09 46,346,241,416.09

Total Assets 55,572,498,970.67 55,572,498,970.67

Current Liabilities:

29 Focus Media Information Technology Co., Ltd. 2020 First Quarter Report

Employee benefits 224,665.75 224,665.75 payable

Taxes payable 35,297,684.52 35,297,684.52

Other payables 23,479.18 23,479.18

Total Current Liabilities 35,545,829.45 35,545,829.45

Non-current Liabilities:

Total liabilities 35,545,829.45 35,545,829.45

Owners’ Equity:

Share capital 14,677,880,280.00 14,677,880,280.00

Capital reserves 30,441,144,477.48 30,441,144,477.48

Less: Treasury share 1,530,149,001.70 1,530,149,001.70

Surplus reserves 1,518,092,014.18 1,518,092,014.18

Retained earnings 10,429,985,371.26 10,429,985,371.26

Total owners’ equity 55,536,953,141.22 55,536,953,141.22

Total liabilities and owners’ 55,572,498,970.67 55,572,498,970.67 equity

2. Note on retrospective adjustments of the previous comparison data due to the first implementation of the new revenue standard and the new lease standard in 2020

□ Applicable √ Not applicable

III. Audit Report

Whether audit has been performed on this 2020 1st Quarter Report

□ Yes √ No

The Company’s 2020 1st Quarter report has not been audited.

Focus Media Information Technology Co., Ltd. Legal representative: Jason JIANG Nanchun April 28, 2020