V1 Group Ltd
V1 New Media Establish the World’s Largest ‘Chinese Youtube’ by a Crowd-funding Model for Innovative Videos

Immediate Release 24 Jun 2015

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V1 Group Limited
(Stock Code: 82)

V1 New Media
Establish the World’s Largest “Chinese Youtube”
by a Crowd-funding Model for Innovative Videos

(24th June, 2015 – Hong Kong) V1 New Media, one of the business of V1 Group Limited (“V1 Group” or the “Company”), announced the launch of the largest PGC (Professionally Generated Content) platform project in China together with over 500 content providers, including Trends Group（时尚集团）, Modern Sky（摩登天空）, Feideishou（飞碟说）, ZhengyunTV（郑云工作室）, to establish the largest “Chinese Youtube” in the world for hundreds of millions of video creators in China to get rich ahead. Such transformation is regarded by the industry as a milestone in the development of Chinese video business.

Introduction of over 500 high-quality PGC copyrights resources and provision of comprehensive service for PGC users
V1 has introduced this time over 500 PGC teams in the vertical field, including Trends Group（时尚集团）, Modern Sky（摩登天空）, Feideishou（飞碟说） and The Beijing News New Media (新京报新媒体), grabbing the best copyrights resources in PGC sector, and plans to sign contracts on some key high-quality PGC projects in 2015. Dr. Zhang Lijun, Chairman of V1 Group, expressed that “As a distribution platform which is cross-platform and cross-terminal, V1 upgrades the whole video industry to the level of a supply chain in China, we put efforts in building the PGC video industry ecosystem, O2O platform and providing a comprehensive value-added service for PGC users which includes equipment rental, capital injection, channel marketing, finding advertisement clients and workplace provision. This is a “Crowd-funding for Videos” model in which a crowd of people invest on creators, creators provide contents, contents attract traffic, and investors share revenue with creators.”

Dr. Zhang Lijun, Chairman of V1 Group, emphasized that “In the era of Internet Plus, V1 Group has never engaged in and is not going to simply repeat the game of burning money in video business, but it is going to step up the development of the innovative new model with passion and momentum, to take on the responsibility to realize our intrinsic value in the service provided to our clients, in order to blossom in the new era of Internet Plus.”

According to the analysis by industry participants, the first ten years in the development of Chinese video industry was all loss-making for the whole industry. The initiators of the capital war in 2010 were trapped in the mire of loss, while other newcomers evolved the creativity competition in the video industry into a capital gambling. In 2015, V1 took the lead in transforming the PGC platform in order to guide the Chinese video industry back to the starting point of innovation, creativity and creation. At this moment, the development of the video industry has reached a new turning point, revealing a strong explosive strength and an unstoppable growing trend of PGC. However, the existing operation system and thinking of interest of lengthy videos with copyrights make it hard to expedite the establishment of PGC industry ecosystem.

In order to establish the world’s largest “Chinese Youtube”, V1 has formulated a long-term detailed plan. In phase 1 “Funding”, investment funds will provide financial support to PGC video production studios to help them to grow from nothing and from small to big. In phase 2 “Educated”, i.e. the incubating phase, education and entrepreneurship will be combined together so that all PGC teams will continue to receive rational guidance and energy. In phase 3 “Communications”, broadcasting will be made through local and overseas platforms to export our values, and the PGC video production studios will undergo a commercialized operation, so as to create a beneficial cycle between influence and economic earnings.

Liu Danhui, Chief Executive Officer of V1 New Media, expressed that “V1 always insists on the “Creator is the core” strategy to keenly develop the mini video market and to actively explore the way of development of the video industry ecosystem in China. In the era of “We Media”, everybody is a news distributor, so it is an irresistible trend of providing a professional platform for the share and release of their videos. Many years of experience accumulated by the Chinese video industry proves that PGC is the only way to win the battle in the industry.”

Accredited PGC enjoys a high revenue share; investment in crowd-funding can be large as well as strong
When establishing the world’s largest “Chinese Youtube”, V1 has to make all video creators to get rich ahead. The most important highlights of the “Get Rich Ahead” plan launched by V1 is the zero threshold for accreditation with high revenue share- any accredited PGC user can enjoy a high revenue share without any additional condition.

Moreover, the “Crowd-funding Reward” plan launched by V1 has also provided for creators a possibility of socialnomics. PGC users only have to create quality original content that they are good at and gather a certain number of fans by contents development, and then they can receive “Tips” revenue by those community fans.

Regarding self-produced programs, under the principle of “fine-quality strategy, in-depth interpretation, high-class entertainment and trendy style” and based on the original programs such as “National Spitslot”（全民大吐槽）, “World of Soldiers”（兵论天下）and “Big Coming”（大牌来袭）, V1 has tailor-made for PGC users certain new programs such as “Movie Influence”（影响剧大）and “History Revision” （解旧历史）with a socialized approach. V1 will also initiate a “Hundred Talents Project” to produce quality programs together with elites from different industries who are interested to engage in the “We Media” spree.

In addition, a revamped version of V1 Circle application will be launched as well. With the aim of “Attention to web surfing, Ability to shoot, Power to share”, this cross-terminal and cross-platform application will seize the mini videos market through computers and mobile applications, becoming the largest portal of PGC original videos for China internet users.

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About V1 Group Limited
V1 Group (www.v1.cn) is one of the largest new media enterprises in China which principally engage in the production and broadcasting of internet video news, web TV and mobile video news, as well as online advertising. Besides, we also engage in lottery-related business and mobile games development and distribution business.

V1 Group IR website: http://ir.v1group.com.hk

This press release is distributed by Wonderful Sky Financial Group Limited on behalf of V1 Group Limited.

For further information, please contact:
Wonderful Sky Financial Group Limited
Alice Wang / Jessica Wong
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