Announcement on Dilution of Immediate Returns from Issuing Shares to Specific Objects in 2026, Measures to Compensate, and Commitments of Relevant Parties (Revised Draft)

Guangdong Golden Horse Entertainment Co., Ltd.

Announcement on Dilution of Immediate Returns from Issuing Shares to Specific Objects in 2026, Measures to Compensate, and Commitments of Relevant Parties (Revised Draft)

The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from any false representations, misleading statements, or material omissions.

Guangdong Golden Horse Entertainment Co., Ltd. (hereinafter referred to as the "Company") held the 17th meeting of the Fourth Board of Directors on January 20, 2026, the second extraordinary general meeting of shareholders in 2026 on February 5, 2026, and the 20th meeting of the Fourth Board of Directors on August 11, 2026, respectively. The proposals regarding the Company's issuance of shares to specific objects in 2026 (hereinafter referred to as the "Current Issuance") and the adjustment of the Current Issuance plan were deliberated and approved.

In accordance with the "Several Opinions of the State Council on Further Promoting the Healthy Development of the Capital Market" (Guo Fa [2014] No. 17), the "Opinions of the General Office of the State Council on Further Strengthening the Protection of the Legal Rights and Interests of Small and Medium Investors in the Capital Market" (Guo Ban Fa [2013] No. 110), and the "Guiding Opinions of the China Securities Regulatory Commission on Matters Concerning the Dilution of Immediate Returns from Initial Public Offerings, Refinancing, and Major Asset Restructurings" (CSRC Announcement [2015] No. 31), etc., the Company has conducted a thorough, prudent, and objective analysis of the impact of the Current Issuance on the dilution of immediate returns and proposed specific measures to compensate for the dilution. Relevant parties have made commitments to ensure the effective implementation of the Company's compensation measures, as follows:

I. Impact of the Current Issuance on the Company's Main Financial Indicators

The total amount of capital to be raised from the issuance of shares to specific objects shall not exceed RMB 561,215,200 (inclusive). After the Current Issuance, the Company's total share capital and net assets will increase significantly. As it takes time for the invested projects to generate economic benefits, there is a risk of dilution of earnings per share and a decrease in return on net assets in the short term. The specific impact is calculated as follows:

(I) Assumptions and Explanations for the Calculation

1. It is assumed that there are no significant changes in the macroeconomic environment, industrial policies, industry development status, and product market conditions.

2. Considering that the review and issuance of the Company's shares to specific objects require a certain period, it is assumed that the issuance of shares to specific objects will be completed by the end of November 2026 (this completion time is only for calculating the impact of the Current Issuance on immediate returns and does not constitute a commitment to the actual completion time. Investors should not make investment decisions based on this. The Company shall not be liable for compensation for losses incurred by investors based on this. The final completion time will be subject to the actual registration completion time approved by the China Securities Regulatory Commission).

3. When calculating the Company's total share capital after the Current Issuance, the base is the Company's total share capital as of the date of this report, which is 220,637,446 shares. Factors other than the number of shares issued in the Current Issuance (such as capital reserve to share capital conversion, equity incentives, share buybacks and cancellations, etc.) that affect the total share capital in subsequent periods are not considered.