Orange Tour Cultural Holding Limited announced that, on December 5, 2020 it has entered into a cooperation agreement with Lionheart Media Group Limited pursuant to which, the parties agreed to form a Business Venture to engage into media production business. OTC Investment and the Prospective Partner will contribute an additional capital to the Business Venture by way of cash and the Business Venture will be owned beneficially as to 70% and 30% by the Prospective Partner and the Group, respectively. Following the capital injection, the Business Venture will be accounted as an associate of the Group instead of a subsidiary under the preliminary assessment and the Group will share the financial results of the Business Venture by using the equity method in its consolidated financial statements. It is expected that a minimal gain will be recognized upon the capital injection, which is calculated as reference to the unaudited management accounts of the Business Venture. The Cooperation Agreement is valid for five years from the date of the Cooperation Agreement and is subject to an automatic renewal upon expiry of the Cooperation Agreement until a termination is raised by either of the parties. The Business Venture will be principally engaged in the media production business after entering into the Cooperation Agreement. Pursuant to the Cooperation Agreement, the prospective partner agreed to carry out its business projects with OTC Investment via the Business Venture, which includes a well-known opera world tour and other media production projects.