Hong Kong Exchanges and Clearing Limited and The Stock Exchange of 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.

(Incorporated in Bermuda with limited liability) (Stock Code: 1060)

CONTINUING CONNECTED TRANSACTIONS - REVISION OF CERTAIN TERMS UNDER THE ADVERTISING SERVICES AND IP COMMERCIALIZATION COOPERATION FRAMEWORK AGREEMENT

Reference is made to the announcement (the “Announcement”) of Alibaba Pictures Group Limited (the “Company”) dated March 26, 2021 in relation to, among others, the entering into of the Advertising Services and IP Commercialization Cooperation Framework Agreement. Unless otherwise defined, terms used in this announcement shall have the same meanings as those defined in the Announcement.

THE SUPPLEMENTAL AGREEMENT

The Board announces that Alibaba Pictures, a consolidated subsidiary of the Company, entered into a supplemental agreement (the “Supplemental Agreement”) with , a consolidated entity of AGH, on August 6, 2021 to revise certain terms of the Advertising Services and IP Commercialization Cooperation Framework Agreement.

Pursuant to the Supplemental Agreement, the parties agreed that the Advertising Services shall be provided by Shanghai Alibaba Pictures and/or any of its affiliates to Youku Tudou and/or any of its affiliates on a non-exclusive basis with effect from the date of the Supplemental Agreement.

Accordingly, the parties further agreed that the fees receivable by Shanghai Alibaba Pictures and/or its affiliates from Youku Tudou and/or its affiliates (as agent for and on behalf of their respective clients) for the provision of the Advertising Services to promote the products or services of clients of Youku Tudou and/or its affiliates shall be 70% of the total advertising fees, which is calculated based on the actual usage of the advertising resources and services by the clients of Youku Tudou and/or any of its affiliate measured by the number of days that the relevant advertisement has been placed and displayed on the ticketing platforms and channels operated by Shanghai Alibaba Pictures and/or any of its affiliates and the published standard service fee (as amended by Shanghai Alibaba Pictures and/or any of its affiliates from time to time), at a pre-determined discount rate, which is subject to downward or upward adjustments (prior written consent from Shanghai Alibaba Pictures is required in case of an upward adjustment) by Youku Tudou and/or its affiliates to cater for different commercial circumstances and with reference to

1

the specific location or the space at which the relevant advertisement is placed or displayed.

In any event, the pre-determined discount rate offered by Shanghai Alibaba Pictures and/or its affiliates to Youku Tudou and/or its affiliates for the Advertising Services will not be more favorable than the discount rate generally offered by Shanghai Alibaba Pictures and/or affiliates to independent third party(ies) in respect of the provision of comparable resources and services.

Save for the aforesaid revision of terms, all other terms and conditions of the Advertising Services and IP Commercialization Cooperation Framework Agreement and the relevant annual caps remain substantially unchanged.

REASONS FOR AND BENEFITS OF ENTERING INTO OF THE SUPPLEMENTAL AGREEMENT

With the gradual recovery of the domestic film market, after reviewing the current market and industry policy environment, the Group believes that the entering into of the Supplemental Agreement to change the cooperation mode for the provision of the Advertising Services by Shanghai Alibaba Pictures and/or its affiliates to Youku Tudou and/or its affiliates under the Advertising Services and IP Commercialization Cooperation Framework Agreement and the corresponding pricing basis are conducive to expanding the sales channels of the Group’s Advertising Services and maintaining the long-term and stable business relationship between the parties to the agreements.

Having reviewed the terms of the Advertising Services and IP Commercialization Cooperation Framework Agreement (as revised and supplemented by the Supplemental Agreement), the Directors (including the independent non-executive Directors) are of the view that the terms of the Supplemental Agreement are fair and reasonable, the transactions contemplated thereunder are on normal commercial terms and that the entering into of the Supplemental Agreement is in the ordinary and usual course of business of the Group and in the interests of the Company and the Shareholders as a whole.

As (i) each of Mr. Fan Luyuan, Mr. Meng Jun and Mr. Xu Hong is an employee of AGH or its subsidiaries, and (ii) Mr. Li Jie is currently taking up a management role in a subsidiary of AGH, they are deemed or may be perceived to have a material interest in the Supplemental Agreement and the transactions contemplated thereunder. As such, each of Mr. Fan Luyuan, Mr. Meng Jun, Mr. Xu Hong and Mr. Li Jie has abstained from voting on the relevant resolution(s) of the Board in relation to the aforesaid transactions.

Save as disclosed above, none of the other Directors has a material interest in the aforesaid transactions contemplated thereunder, and therefore none of them has abstained from voting on the said resolution(s) passed by the Board.

LISTING RULES IMPLICATIONS

As at the date of this announcement, Youku Tudou is a consolidated entity of AGH and AGH is the ultimate sole shareholder of Ali CV, which is a controlling shareholder and a connected person of the Company holding approximately 50.26% of the issued share capital of the Company. Accordingly, Youku Tudou is an associate of Ali CV and hence a connected person of the Company. The entering into of the Supplemental Agreement and

2

the transactions contemplated thereunder constitute continuing connected transactions for the Company under Chapter 14A of the Listing Rules.

Pursuant to Rule 14A.54(2) of the Listing Rules, if the Company proposes to effect a material change to the terms for continuing connected transaction(s), it is required to re- comply with the provisions of Chapter 14A of the Listing Rules applicable to the relevant continuing connected transaction(s).

Since all of the applicable percentage ratios set out in Rule 14.07 of the Listing Rules in respect of the highest annual cap for the total fees receivable by Shanghai Alibaba Pictures and/or its affiliates for the transactions contemplated under the Advertising Services and IP Commercialization Cooperation Framework Agreement (as revised and supplemented by the Supplemental Agreement) are above 0.1% but below 5%, the entering into of the Supplemental Agreement and the transactions contemplated thereunder are subject to the reporting, announcement and annual review requirements but exempt from the independent shareholders’ approval requirement under Chapter 14A of the Listing Rules.

INFORMATION ON THE COMPANY AND SHANGHAI ALIBABA PICTURES

The Company is listed on the Stock Exchange (stock code: 1060). The Company focuses on developing the full business potential of integration and innovative applications of the Internet and traditional film and television industries. The core business of the Company includes three major segments: (1) Internet-based promotion and distribution, (2) content production, and (3) integrated development. These segments encompass (i) the operation of an integrated O2O platform for the promotion and distribution of entertainment content, and the provision of online movie ticketing service to consumers and ticketing issuance system to cinemas; (ii) the investment and production of entertainment content, such as film and drama series, both domestically and internationally; and (iii) centered around copyrights, the development of professional services ranging from financing, business placement, promotion and distribution to merchandising, respectively.

Shanghai Alibaba Pictures, being a company established under the laws of the PRC, is a consolidated subsidiary of the Company which is principally engaged in investment in and production of films.

INFORMATION ON AGH AND YOUKU TUDOU

AGH is a company incorporated in the Cayman Islands, with its American depositary shares, each representing eight ordinary shares, listed on the New York Stock Exchange (stock symbol: BABA), and its ordinary shares listed on the Main Board of the Stock Exchange (stock code: 9988). ’s mission is to make it easy to do business anywhere. Alibaba Group aims to build the future infrastructure of commerce and envisions that its customers will meet, work and live at Alibaba, and that it will be a good company that will last for 102 years. Alibaba Group’s businesses are comprised of commerce, cloud computing, digital media and entertainment and innovation initiatives.

3

Youku Tudou, being a company established under the laws of the PRC, is a consolidated entity of AGH which is principally engaged in advertising agency, advertising production and distribution, programme production, copyright procurement or distribution.

On behalf of the Board Alibaba Pictures Group Limited Fan Luyuan Chairman & Chief Executive Officer

Hong Kong, August 6, 2021

As at the date of this announcement, the Board comprises Mr. Fan Luyuan, Mr. Li Jie and Mr. Meng Jun, being the executive directors; Mr. Xu Hong, being a non-executive director; and Ms. Song Lixin, Mr. Tong Xiaomeng and Mr. Johnny Chen, being the independent non-executive directors.

4