China Animation Virtual Reality Theme Amusement Park Is Staged at Shenzhen Cultural Industries Fair

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1 [Press Release] China Animation Virtual Reality Theme Amusement Park Is Staged at Shenzhen Cultural Industries Fair (Shenzhen, ) China Animation Characters Company Limited ( China Animation or the Group; stock code: 1566.HK), a leading multimedia animation enterprise, has hosted the official inauguration of the Longgong China Animation Creative Industry Park ( 龍崗華夏動漫創意產業園分會場 ) ( China Animation Industry Park ). The event is showcased at the Longgong Animation Session of the 12 th China (Shenzhen) International Cultural Industries Fair for five days, from 3 p.m. on 12 May to 16 May. With a theme of a World-leading Virtual Reality Theme Park, the exhibition highlights the Company s virtual reality (VR) technology, Shanghai JOYPOLIS and its proprietary superior intellectual property (IP) projects present an astounding new setting for the multi-dimensional development of the animation industry. Virtual Reality Theme Park + Games Leads New Trend China Animation, the first China multimedia animation group listed on the Stock Exchange of Hong Kong, has established a platform for the trading of animation products, industry collaboration and demonstration. China Animation Park has participated in the fair for seven consecutive years starting from This year, the China Animation VR Game Centres ( 華夏 VR 體驗館 ) installed at the Session is a world-leading VR theme amusement park created by China Animation through physical simulation and is equipped with a full range of leading-edge VR facilities as well as motion capture and space positioning technologies. Players and their teammates can don a set of VR wearable technologies such as a sensory vest to enhance experience through tactile feedback; a motion sensing backpack which is equipped with simulated professional military equipment; the most realistic simulated military machine gun; and a VR helmet. At the virtual scene, the players only need to utilize the motor cells of their body, walk, run, squat, jump, scream, shoot or dodge monsters, vampires, and other threats without using any traditional controlling devices such as joy sticks, hand lever push buttons and wires. At the same time, China Animation has launched its latest VR arcade games encompassing space wars, athletics, adventure, music, parenting, science and education. It has also introduced VR wars for real players to participate in virtual CS battles. The players and their partners can gain exciting and adventurous experiences by engaging in a fierce battle and a hail of bullets. Besides, China Animation has also

2 unveiled its latest and most popular VR facilities such as a ski simulator and VR rowing at the venue. The VR theme games, which were developed by China Animation who owns the intellectual property, are also to be introduced during the fair. Superior IP + JOYPOLIS Indoor Amusement Park Sets New Heights China Animation has placed high emphasis on the brand building through original animation and has strongly supported the development of a domestic animation culture, therefore it has created a number of original animation characters. Its virtual artist "Violet" is the first animated musical girl and has hosted animated concerts in China with 3D Mixed Reality technology. Violet was presented a Special Image Promotion Award and Top 10 Cartoon Character Image Gold Award, and performed two concerts in Shenzhen and Hong Kong. An animation TV cartoon series where Violet plays the leading role is currently under production. In response to the long-waiting fans of Violet, the premiere of Violet s movie trailer, a re-creation competition and a stage performance with 3D Mixed Reality technology is to be presented at the venue during the Fair this year. The animation movie Rabbit & Tortoise, in which Hanbagui, one of China s Top 10 Cartoon Characters, plays the leading role is also to be introduced at the Fair. The organiser has specially presented a viewing event and fun-filled smashing golden egg games to the people who have ardently supported the development of the animation industry over the past years. Shanghai JOYPOLIS was again highlighted at the Fair. Shanghai JOYPOLIS is the top digital amusement park in China jointly presented by China Animation, SEGA Holdings Co., Ltd and SEGA LIVE CREATION Inc. China Animation Industry Park can offer visitors the exceptional experience of Shanghai JOYPOLIS. As the top indoor animation amusement park in China, Shanghai JOYPOLIS is equipped with a commercial simultaneous motion capture system and China s most clear mixed reality (MR) digital stage and offers about 100 hi-tech games to visitors. The JOYPOLIS character family is set to perform on the Shanghai JOYPOLIS stage together in the near future. Five Creative Highlights Achieve New Breakthroughs The new business model World-leading VR Theme Amusement Park has also been launched by China Animation creating a VR eco-system spanning across the world-leading VR theme amusement park experience hall offering the most comprehensive VR arcade games, VR battles, VR series and classic 9-D VR equipment experience. Players can genuinely and sensually experience the innovative technology during immersive play in this virtual reality world.

3 15 Exciting Activities Bring New Excitement to Visitors This year, in addition to its innovative signature items, the China Animation Fair remains at the forefront of the market and has arranged 15 exciting activities to bring new sensory excitement to visitors. Apart from bringing the popular motion sensing games of Shanghai JOYPOLIS to the Fair, China Animation has also prepared a series of Violet experience activities under the theme of the Violet movie, including Wishing Wall under Starry Sky and Movie Puzzle Challenge, Dream Drama with Mixed Reality technology, Re-creation Competition and MR and Augmented Reality (AR) Experience Zones for Interaction with Real People. Moreover, China Animation has shared more fun with the visitors from the young to the elderly through animation in dining, playing and learning. Highlights here include: the Rabbit & Tortoise Animation Movie Smashing Golden Egg Experience Zone, Animation Toy Flea Market, Animated Digital Photo Album Space, DIY Market, Cosplay Performance, Pubic Lecture on Animation Education and various creativity-related activities including Innovator Catering Culture Exhibition Zone, a seminar hosted by Jonathan So, the creator of Pleasant Goat, and an Internet Innovator Space Culture Exhibition Zone. The Longgong Animation Fair has launched a series of activities which combine the elements of animation, culture, movie and TV, performance, technology and creativity. The visitors not only can appreciate spectacular attractions of the world-leading VR theme amusement park, but also can learn dancing to cultivate their personality as well as discipline, participate in creativity competitions to demonstrate their talents, and attend the seminar of respected speakers to gain greater knowledge and inspiration. Compared to past fairs, the Fair this year has introduced greater breakthroughs and presents more content and more advanced technologies. Therefore, it reflects the more active effort and exploration of the innovative development of the animation industry in different dimensions. About China Animation Characters Company Limited China Animation Characters Company Limited is committed to develop into a leading multimedia animation enterprise in China. Besides from engaging in the trading of animation derivative products featuring renowned characters, the three core businesses of the Company include the development of virtual reality games, operation of indoor animation amusement parks, and licensing the intellectual property rights. China Animation is also expanding its business to the development of more multimedia animation entertainment (including movie investments and productions, music animation concerts, online entertainment and mobile applications) and consignment sales of animation derivative products. With business locations in Hong Kong, Shenzhen and Shanghai, China Animation has a strong R&D and marketing team comprising nearly 200 staff members, enabling the Company to capture opportunities as it emerges and expands its market presence.

4 China Animation is the first and only company in China who got granted an operating licensed of JOYPOLIS by SEGA Holdings Co., Ltd and SEGA LIVE CREATION Inc in China. Shanghai JOYPOLIS operated by China Animation is located on the third and fourth floors of Shanghai Global Harbour in Shanghai, with a total gross floor area of 8,300 sq.m. Shanghai JOYPOLIS officially opened on 6 February 2016 Through acquisitions or independent developments, China Animation owns the intellectual property rights of a number of proprietary animation characters, including "Han Ba Gui", "Violet", "Animal Conference on the Environment", "Amazing UU". Its virtual artist "Violet" is the first animation star which performed bidialectal 3D music animation concert in China and Hong Kong by applying three dimensional mixed reality (MR) technologies. Media enquiries Strategic Financial Relations (China) Limited Ms. Anita Cheung Tel: (852) anita.cheung@sprg.com.hk Ms. Karen Li Tel: (852) karen.li@sprg.com.hk Ms. Phoenix Fung Tel: (852) phoenix.fung@sprg.com.hk

5 Some of VR facilities displayed at China Animation Creative Industry Park Players and their teammates can don a full set of VR wearables to enjoy the exceptional sensory experience of the VR game. Leading-edge driving capsule VR rowing device VR parachute game VR flying theatre

6 VR ski simulator VR battle station