Applied Development : Announcement of Further Supplemental Announcement in relation to the Annual Report of the Company for the Year Ended 30 June 2018

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Bermuda with limited liability)

(Stock Code: 519)

FURTHER SUPPLEMENTAL ANNOUNCEMENT

IN RELATION TO THE ANNUAL REPORT OF THE COMPANY

FOR THE YEAR ENDED 30 JUNE 2018

Reference is made to (i) the annual report of Applied Development Holdings Limited (the "Company", together with its subsidiaries, the "Group") for the year ended 30 June 2018 (the "Annual Report") published on 16 October 2018; (ii) the announcement of the Company dated 6 September 2017 (the "Placing Announcement") relating to the placing of 417,515,000 shares at a placing price of HK$0.4 per share of the Company (the "Placing");

(iii) the announcement of the Company dated 25 September 2017 relating to the completion of the Placing (the "Completion Announcement"); and (iv) the supplemental announcement to the Annual Report dated 29 July 2019 relating to the use of proceeds from the Placing (the "Supplemental Announcement"). Unless otherwise stated, capitalised terms used herein shall bear the same meanings as defined in the Annual Report.

Further to the information disclosed in the Supplemental Announcement, the board (the "Board") of directors (the "Directors(s)") of the Company would like to provide shareholders of the Company and the market with additional information in relation to the use of the proceeds from the Placing.

As disclosed in the Supplemental Announcement, the net proceeds from the Placing amounted to approximately HK$166,106,000, of which approximately HK$142 million had been utilised by the Company as at 30 June 2018. The Group has utilised the remaining proceeds of approximately HK$24 million as general working capital of the Group by January 2019.

The above additional information does not affect other information contained in the Annual Report. Save as disclosed above, all other information in the Annual Report remains unchanged.

By order of the Board of Applied Development Holdings Limited

Yuen Chi Ping

Executive Director & Chief Executive Officer

Hong Kong, 2 August 2019

As at the date of this announcement, the Executive Directors are Mr. Yao Wei Rong (Chairman) and Mr. Yuen Chi Ping (Chief Executive Officer); the Non-executive Director is Mr. Guo Shun Gen and the Independent Non-executive Directors are Mr. Lau Chi Keung, Mr. Yu Tat Chi, Michael and Mr. Chiu Kit Man, Calvin.

* For identification purpose only

In the event of inconsistency, the English text of this announcement shall prevail over the Chinese text thereof.