Applied Development : PROFIT WARNING

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)

PROFIT WARNING

This announcement is made by Applied Development Holdings Limited (the "Company" together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Based on the information currently available to the Company, the Board of Directors (the "Board") of the Company wishes to inform shareholders of the Company (the "Shareholders") and potential investors that the Group may record a loss of approximately HK$80 million for the year ended 30 June 2019, as compared to the profit of HK$10.64 million for the for the year ended 30 June 2018. This was mainly attributable to (i) a decrease in the fair value of the Group's financial assets from a net gain of approximately HK$9.6 million in the year ended 30 June 2018 to a net loss of approximately HK$20 million in the year ended 30 June 2019 and (ii) the impairment loss on the properties under development of approximately HK$66 million recorded in the year ended 30 June 2019. The Board wishes to emphasize that the above-mentioned net fair value loss of the Group's financial instruments and impairment loss are non-cash in nature.

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The information contained in this announcement is only a preliminary assessment by the Board according to the unaudited management accounts for the year ended 30 June 2019 as well as operational data available which have not been reviewed and audited by the Company's auditor and therefore may subject to amendments and valuation adjustments. Shareholders and potential investors are advised to refer to details in the final results announcement of the Company for the year ended 30 June 2019 which is expected to be released in late September 2019.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

Applied Development Holdings Limited

Wu Zhanming

Chairman & Executive Directors

Hong Kong, 29 August 2019

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

• For identification purposes only

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