Beijing Sports and Entertainment Industry : SUPPLEMENTAL ANNOUNCEMENT ON DISCLOSEABLE TRANSACTION RELATING TO SUBSCRIPTION OF INTERESTS IN A FUND

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(incorporated in the Cayman Islands with limited liability)

(Stock code: 1803)

SUPPLEMENTAL ANNOUNCEMENT ON

DISCLOSEABLE TRANSACTION

RELATING TO SUBSCRIPTION OF INTERESTS IN A FUND

Reference is made to the announcement of Beijing Sports and Entertainment Industry Group Limited (the "Company") dated 7 July 2020 (the "Announcement") in relation to a discloseable transaction relating to subscription of interests in a Fund. Unless the context otherwise requires, capitalized terms in this announcement shall have the same meanings as defined in the Announcement.

The Company would like to provide further information in relation to the Fund Subscriptions and the Subscription Agreements:

1. OTHER MAJOR TERMS OF THE SUBSCRIPTION AGREEMENTS

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2. FURTHER INFORMATION OF THE FUND

The Fund is newly launched and the Company is its first investor and currently the sole investor. The Company understands from Beijing Richtop Capital Co., Limited (the "Manager") that the Manager is in the process of soliciting other investors to invest in the Fund and the Company will not be the only investor of the Fund nor provided the vast majority of the capital of the Fund when it materializes.

Zhu Shaojun is the ultimate beneficial owner of the controlling equity interest in the Manager. He is principally engaged in the business of investments in capital market, and is a third party independent of the Company and its connected persons.

3. FURTHER INFORMATION OF THE MANAGER AND REASONS FOR AND BENEFITS OF THE SUBSCRIPTIONS

Apart from the reasons stated in paragraph headed "Reasons for and benefit of the Subscriptions" in the Announcement, the Directors also considered the experience of the Manager. Although the Manager was established in 2012 and registered as a private equity fund manager in the PRC in 2015, to the Company's knowledge after reasonable enquiry, the Manager itself (i.e. the corporate entity) was not active in the capital market, and therefore the corporate entity itself does not have much track record. However, the Manager has recently recruited two investment consultants who have extensive experience and track record in the PRC capital market and are the members of the core team of the Manager. One of them has over 10 years of experience in working in securities firm in the PRC and was the head of the research department of a securities firm listed in the PRC, and because of his strong track record he has received analyst awards from different organizations and the funds managed by him recorded an annualized rate of return of approximately 35% and a cumulative rate of return of over 200%. The other one has nearly 20 years of experience in capital market research and had been senior management in different funds and securities firm listed in the PRC. The investment consultants are more specialized in investments in the areas of technology, media and telecom (i.e. TMT), new energy automobiles and photovoltaics, where the Company considers that those areas are with high growth potentials. After accessing the experience and track record of such investment consultants, despite the Manager has no track record, the Directors believe that the strength and capabilities of the newly joined investment consultants will enable the Manager to provide quality investment management service and bring favourable returns to the Group, and which is a main reason why the Company decided to invest in the Fund.

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Save as disclosed above, all other information and content set out in the Announcement remain unchanged and shall continue to be valid for all purposes. This supplemental announcement is supplemental to and should be read in conjunction with the Announcement.

By Order of the Board

Beijing Sports and Entertainment Industry Group Limited

Liu Xue Heng

Chairman

Hong Kong, 13 August 2020

As at the date of this announcement, the executive Directors are Mr. Liu Xue Heng, Mr. Zhu Shixing, Mr. Lam Ka Tak, and Mr. Zhang Tingzhe; the non-executive Director is Mr. Hu Yebi; and the independent non-executive Directors are Mr. Tse Man Kit Keith, Mr. Lok Lawrence Yuen Ming, Mr. Xin Luo Lin and Mr. Pan Lihui.

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