China Star Group Co., Ltd. and its subsidiaries (China Star or the Group) are mainly engaged in the production and distribution of movies and TV series, as well as providing other film-related services, including artist management services. The Group is also engaged in property development and investment projects in Hong Kong, China and Macau, China. Past Achievements and Current Business Development: China Star has long been an entertainment, multimedia, production and distribution company with a strong position in Chinese-language films. In the process of development, China Star has always strived to establish itself as a reputable and powerful film producer and international film distributor. Since 2000, China Star has been committed to producing all kinds of movies, many of which have received widespread acclaim and are also quite profitable at the box office. In 2000, “Lone Man and a Widow” topped the list of local films of the year with a box office revenue of approximately HK$35,000,000. In 2001, the four most popular and successful films “Chung Wu-yan”, “Slimming Man and Woman”, “The Perfect Bra” and “Old Man 2001” by Chinese Stars received a total box office revenue of about HK$107,000,000, accounting for 38% of the total box office revenue of the 10 best Chinese-language films in Hong Kong, China. China Starlight has been recognized as the most recognized film producer in Hong Kong, China. In 2002, “My Left Eye Sees a Ghost”, “My Family Has a Hedong Lion”, “Peerless Good B”, and “Gu Gu Gu New Year's Fortune” received total box office revenue of about HK$73,000,000, making them the four most successful local Chinese-language films of the year. In 2003, the film produced by Chinese Stars won several important awards at the 23rd Hong Kong Film Awards, including “Big Guy” which won the “Best Film Award” and the “Best Screenplay Award”, while the leading actor, Mr. Andy Lau, was also named “Best Actor”. Ms. Cecilia Cheung, the leading actress in “Can't Forget” and Ms. Ho Chiu-yee, the supporting actress in “Proud Love”, were also awarded “Best Actress” and “Best Supporting Actress” respectively. The film soundtrack for “Can't Forget” by Mr. Kim Pei Tat was also praised, winning the “Best Original Film Music” award. Mr. An Zhijie, a new artist under China Star, was also awarded the “Best New Actor Award”. In 2004, the Group's Lunar New Year blockbuster “Ghost Horse Rhapsody” ranked second in box office for all local movies in 2004. In 2005, the excellent film “Underworld” produced by the Group received enthusiastic responses. In addition to creating outstanding performance in terms of box office and distribution, the film also won several awards at the 25th Hong Kong Film Awards, including “Best Film Award”, “Best Director Award”, “Best Screenplay Award” and “Best Actor Award”, which was fully recognized by industry experts. In 2016, the film “Legend of Fengshen” was produced by the Group at a cost of over HK$500 million. The cast was strong, and the Hollywood 3D special effects team assisted in the production. Since 2006, the Group has restructured its business and began to get involved in hotel operations through the acquisition of interests in Macau Lan Kwai Fong Hotel Limited (previously known as Kingsway Hotel Limited). Subsequently, the Group invested huge sums of money in Macau Lan Kwai Fong Hotel Co., Ltd. to refurbish the hotel property. With the official opening of the Lan Kwai Fong Hotel in Macau, the Group has expanded its business into hotel management, casino management, food and beverage business, and health and medical spa business. The casino is operated by the license holder Macau Gaming Co., Ltd. (“Macau Gaming”, which is one of the shareholders of Macau Lan Kwai Fong Hotel Limited). Classic Management Service Co., Ltd. (“Classic”), a subsidiary of the Group, has entered into a service and venue licensing agreement with Macau Gaming. According to the agreement, Classic authorizes Macau Gaming to occupy and use the space in Lan Kwai Fong to operate the Lan Kwai Fong Casino, while Classic is responsible for providing marketing, promotion, customer development and introduction, co-organizing events, and other services of the Lan Kwai Fong Casino agreement from time to time. In return, Classic will account for a fixed percentage of service revenue from Macau Gaming on a monthly basis, calculated based on the total profit earned by operating midfield and VIP lounge tables and slot machines at Lan Kwai Fong Casino. Macau Lan Kwai Fong Hotel provides a stable income for the Group. Macau's Lan Kwai Fong Hotel has received numerous international awards, including the “5th China Hotel Starlight Award - China's Best Design Boutique Hotel Award” in 2009 and the “TriAdvisor Travelers' Choice - China's Top 25 Fashion Hotels” in 2012. In terms of promoting the concept of environmental protection, Macau's Lan Kwai Fong Hotel also won the 2010 “Asia Hotel Forum Asia Awards - New Leading Green Hotel of the Year” and the 2010 “Macau Green Hotel Award - Bronze Award”. The hotel and gaming services business ceased operations in early 2018, and the Group made a significant profit from the sale. The Group has two projects under development in Macau, China, namely (i) the merger site at Lot 6C, Lot 6D and Lot 6E of the Outer Harbour Reclamation Area in Macau, China (the “Merger Site”); and (ii) the land located on Dr. Stanley Ho Road called “Lot 7 Area C of the Nanwan Lake Project” (“C7 Property”). Construction work on the merged site began in June 2017 and is expected to be completed in 2019. The merger site completed foundation and basement structure works in May 2018, and reinforced concrete frame structure construction has commenced thereafter. It is expected that the reinforced concrete frame structure project will be completed around October 2018; construction work, mechanical, electrical and water (MEP) service installation and decoration works will be completed by August 2019; the entire merger site will be completed around September 2019; and the registration paper from the Macau Land Works and Transportation Authority (“Land Works Bureau”) will be obtained around October 2019. As for the C7 property, we have hired an architect and are still preparing the development blueprint for the C7 property according to the parameters for approval by the Land Works Bureau. Construction of C7 Property will commence after completion of the merger site.