ZACD Group Ltd. — Capital/Financing Update 2021

Dec 17, 2021

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.

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ZACD GROUP LTD. 杰 地 集 團 有 限 公 司 [*]

(a company incorporated in the Republic of Singapore with limited liability)

(Stock Code: 8313)

VOLUNTARY ANNOUNCEMENT BUSINESS UPDATE ESTABLISHMENT OF NEW FUND FOR LA VILLE PROJECT

This announcement is made by ZACD Group Ltd. (the “ Company ”, together with its subsidiaries, collectively, the “ Group ”) on a voluntary basis.

The Company is once again pleased to announce the second tender success this year of recently securing another freehold residential re-development project located at 6C and 6D Tanjong Rhu Road, Singapore, (the “ La Ville Project ”) through a special purpose development vehicle (the “ Development SPV ”) wholly owned by the Company’s subsidiary ZACD Capital Partners VCC, who in turn will set up a sub-fund for purpose of equity investment into the La Ville Project (the “ Fund ”) together with other joint venture partners already identified and to be identified. Upon finalisation of the joint venture structure, the Fund is expected to own more than 50% stake but no more than 70% stake in the La Ville Project with the remaining to be owned by the joint venture partners already identified and to be identified. The Fund will be a closed-ended real estate private equity fund with a target fund size of up to approximately S$36 million (subject to available bank financing) assuming a 70% stake in the La Ville Project to be held by the Fund. In order to facilitate the initial set up of the Fund, the Company will commit 5% to 10% of the Fund size or approximately S$1.8 million to $3.6 million of seed capital into the Fund, subject to eventual fundraising progress from external investors.

The successful tender was awarded to the Development SPV on 30 November 2021 with a final purchase price of S$152 million subject to the other agreed terms and conditions. An initial sum of S$500,000 was submitted with the tender and a further sum of S$7.1 million (together being 5 % of the purchase price) was paid on the 7 December 2021 pursuant to the tender terms. The legal completion date has been scheduled for 1 June 2022.

The La Ville Project, a freehold 40-unit high-rise development in the Tanjung Rhu area, constructed in the 1980s is located in a well known and sought after residential development area, has a land area of 47,012 square feet (sq ft) and is zoned ‘residential’ under the Urban Redevelopment Authority’s 2019 Master Plan. The development enjoys excellent conveniences, high accessibility, and transport amenities. The site is in close proximity to a wide range of shopping and recreational amenities readily available at Kallang Wave Mall, Parkway Parade and a myriad of F&B choices at East Coast Road. The popular Tanjong Rhu and Old Airport Food Centres are also nearby. Lifestyle and sports offerings in the vicinity, such as Singapore Sports Hub, Marina Bay Golf Course and Singapore Swimming Club, are a short drive away too. Changi International Airport is also only a 15-minute drive away. In addition, reputable schools in the vicinity include Dunman High, Cheung Cheng High, Kong Hwa Primary, Canadian International School (Tanjong Katong) and Chatsworth International School (East).

The board of directors of the Company (the “ Board ”) believes that the La Ville Project is an attractive and viable real estate investment opportunity for the Group and which our fund investors will definitely view with an increased appeal. The Board is of the view that the Fund will contribute positively to the investment management services business segment of the Group and in turn create a more diverse offering for the Group’s investment management business. The Fund will be managed by ZACD Capital Pte. Ltd., a member of the Group.

As disclosed in the prospectus of the Company dated 28 December 2017, our investment management services are subject to various business risks, including but not limited to the investment performance of our real estate projects may be unsatisfactory and may fail to achieve their investment target return, and we may not be able to replenish our bridging reserve fund in the event we are unable to secure sufficient investors’ funds for the projects. In this respect, the Company will monitor closely the progress of the fund raising of the Fund, and the Company will make further announcements as and when appropriate pursuant to the requirements under the GEM Listing Rules.

By Order of the Board ZACD Group Ltd. Sim Kain Kain

Chairman and Executive Director

Singapore, 17 December 2021

As at the date of this announcement, the Board of the Company comprises four (4) executive Directors, namely, Mr. Yeo Choon Guan (Yao Junyuan), Ms. Sim Kain Kain, Mr. Siew Chen Yei and Mr. Patrick Chin Meng Liong; three (3) independent non-executive Directors, namely, Mr. Kong Chi Mo, Dato’ Dr. Sim Mong Keang and Mr. Lim Boon Yew; and one (1) non-executive Director, namely Mr. Chew Hong Ngiap, Ken.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will be published on the GEM website at www.hkgem.com and remain on the “Latest Company Announcements” page for at least seven days from the date of its posting. This announcement will also be published on the Company’s website at www.zacdgroup.com .

In the event of any inconsistency between the Chinese version and the English version of this announcement, the latter shall prevail.

* for identification purposes only