Universe Entertainment and Culture : ANNOUNCEMENT IN RELATION TO A LEGAL ACTION

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UNIVERSE ENTERTAINMENT AND CULTURE

GROUP COMPANY LIMITED 寰 宇 娛 樂 文 化 集 團 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 1046)

ANNOUNCEMENT IN RELATION TO A LEGAL ACTION

Universe Entertainment and Culture Group Company Limited (the "Company" and together with its subsidiaries, the "Group") announced that on 15 September 2020, the Group received a defence and counterclaim (the "Defence and Counterclaim") from China Wah Yan Healthcare Limited ("China Wah Yan") and Sky Clear Bright Group Limited ("Sky Bright"), the wholly owned subsidiary of the China Wah Yan in response to the Writ of Summons together with the Statement of Claim issued in the Court of First Instance of the High Court of Hong Kong on 11 March 2020 (the "Original Action") by China Jianxin Credit Services Limited ("China Jianxin"), a wholly owned subsidiary of the Company as the plaintiff against China Wah Yan as the defendant.

In the Original Action, China Jianxin claims against China Wah Yan, among other things, (a) the outstanding balance of HK$16,175,304.11, being the outstanding principal and the interest accrued up to 11 March 2020 thereon under a loan agreement entered into between China Jianxin and China Wah Yan on 30 April 2019; (b) interest on the said outstanding principal of HK$15,800,000.00 at the rate of 8.5% per annum from 12 March 2020 until full payment; (c) costs of the Original Action; and (d) further and other reliefs.

According to the Defence and Counterclaim, China Wah Yan and Sky Bright counterclaim against China Jianxin, Precise Reach Group Limited, a wholly owned subsidiary of the Company, and Mr. Lam Shiu Ming, Daneil, the director and chairman of the Company for the damages to be assessed, interest, costs and further or other reliefs in relation to the alleged misrepresentation and the alleged set-off by China Wah Yan and Sky Bright in extinction or in diminution of the claim of the Original Action.

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The Group is seeking legal advice in respect of the Defence and Counterclaim and will defend its position. The Company will keep the shareholders and potential investors of the Company informed of any further significant development as and when appropriate. Shareholders of the Company and potential investors should accordingly exercise caution when dealing in the securities of the Company.

On behalf of the Board

Universe Entertainment and Culture

Group Company Limited

Lam Shiu Ming, Daneil

Chairman and Executive Director

Hong Kong, 18 September 2020

As at the date of this announcement, the executive directors of the Company are Mr. Lam Shiu Ming, Daneil and Mr. Lam Kit Sun, and the independent non-executive directors of the Company are Mr. Choi Wing Koon, Mr. Lam Chi Keung and Mr. Tang Yiu Wing.

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