Pacific Star Development (formerly: LH Group)

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Profit Guidance for the Financial Quarter Ended 31 December 2019

The Board of Directors of Pacific Star Development Limited informed shareholders that the Group is expected to report a net loss for the financial quarter from 1 October 2019 to 31 December 2019 ("2QFY2020").

Based on the preliminary review of the Group’s draft financial results for 2QFY2020, the net loss for the Group in 2QFY2020 was largely attributable to the finance costs associated with the S$70 million facility obtained from a group of third parties in the second quarter of financial year 2019 (such facility had been announced on 24 December 2018).

The Company is still in the process of finalising its results for 2QFY2020 and will provide further details of the Group’s performance when it releases the Group’s unaudited financial results for 2QFY2020 on or before 14 February 2020.

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Receipt of Statutory Demand by Subsidiary

Pacific Star Development Limited announced that on 6 March 2020, Pearl Discovery Development Sdn Bhd (“PDD”), a wholly-owned subsidiary of the Company, received a statutory demand pursuant to Section 465 and 466 of the Companies Act 2016 of Malaysia from the solicitors representing IJM Construction Sdn Bhd ("IJM"). Pursuant to the Statutory Demand, IJM is seeking a payment of RM10,331,470.46 (the “Sum”) within 21 days of the StatutoryDemand (“Final Due Date”). IJM is the main contractor for the development of the Group’s Puteri Cove Residences project in Iskandar, Malaysia.

The Statutory Demand states that if PDD fails to comply with the demand to pay, secure or compound the sums owed to the satisfaction of IJM within 21 days from the Statutory Demand, IJM shall be entitled to present an application for a winding-up order against PDD.

Prior to the receipt of the Statutory Demand, PDD has already planned for the settlement of the Sum. Barring any unforeseen circumstances, PDD expects the full settlement of the Sum prior to the Final Due Date.