Preliminary Announcement of AFC Group Holdings Limited

AFC GROUP HOLDINGS LIMITED
(Listed on the NZAX: AFC)
1/245 Ti Rakau Drive
Burswood
Auckland
Ph: +64 (09) 930-0245

Preliminary Announcement of AFC Group Holdings Limited
Financial Results
The financial statements of AFC Group Holdings Limited (“AFC Group”) are still
in the process of being audited for the year ended 31 March 2021. The
Company reports an unaudited net loss attributable to shareholders of
$1,268,851 for the year. This compares with a net loss attributable to
shareholders of $1,170,553 for the previous year. The loss for the year was
mainly due to reduced sales due to COVID-19, the impairment of stock and
fixed assets of AFC Biotechnology Manufacture Co Ltd.
For the year ended 31 March 2021, the net assets were NZ$1.29 million, Cash
and cash equivalent products were NZ$ 0.003 million, and fixed assets were
NZ$1.49 million. The annual sales revenue for the year ended 31 March 2021
was NZ$0.65 million. The market capitalisation value was NZ$3.66 million.
Please refer to the attached Unaudited Annual Results Announcement for the
detailed results.
Outlook
In the 2021 financial year, AFC was aware of how uncertain of the future was.
With the COVID-19 spread, NZ boarder closure and slow recover of overseas
sale, AFC was facing some challenges. However, AFC has developed a list of
actions to get thought the current difficult situation, to enable future revenue
growth and return value to our shareholders:

AFC Longview Limited (“AFCLV” and “Longview Estate”)
1. AFCLV has updated its pricing strategy and launched the marketing
campaign “White Diamond is back to the community”. The pricing
strategy and marketing campaign was allowing more people to gain
access to the White Diamond Wine.
2. Longview Estate has also participated in different wine exhibitions, such
as Winetopia and NZWINE Roadshows, to promote wine and increase
sales.
3. Longview Estate has taken actions to cut costs, such as better work
schedules organisation and people management.
4. Longview Estate intends to revaluate its land. It will be a change of
accounting policies from historical value to fair value.
AFC Biotechnology Manufacture Co Ltd (“AFCBIO”)
1. AFCBIO has restructured successfully that cut down more than
$150,000 costs.
2. AFCBIO continuously reduced costs by preparing to sublease its
premises.
3. AFCBIO will enhance the “Shoppertainment” in the future to increase
sales.
AFC Group Holdings Limited (“AFC”)
1. Independent directors of AFC will continue to take a 30% reduction in
remuneration. Other directors will voluntarily receive no director fees.
2. AFC prepared to lease its office which can cut down more than 120,000
expenses.
3. AFC engaged with “China (Anhui) 5G food city” and “EFOODLINE” to
promote its products.

4. AFC attended the 3
rd
China International Import Expo (CIIE) to promote
the group and products.
5. AFC employed more senior personnel who can bring sales and profit to
the group.
On behalf of the Directors of AFC, the Company extends its thanks to the
shareholders for their support of the Company.
Annual Report and Annual Meeting
AFC expect to release our Annual Report before the end of June, and we are
planning to hold our Annual Meeting in early October 2021.
On behalf of the Board of Directors

HAO LONG
CFO
28/05/2021

For Further Information
Please contact Mr Howard Long
howard.long@afcnz.com
+64- 21- 244-8000

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Appendix 2
Preliminary Full Year Report
2


PRELIMINARY ANNUAL REPORT ANNOUNCEMENT
For Full Year Ended 31 March 2021
(referred to in this report as the "current year")

1.1 Preliminary annual report on results for the year ended 31 March 2021 (including the results for the previous corresponding
year).

3.1 The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice
("NZ GAAP"). They comply with New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS") and
other applicable Financial Reporting Standards, as appropriate for profit-oriented entities.

The financial statements also comply with International Financial Reporting Standards ("IFRS").

The Listed Issuer (AFC Group Holdings Limited) has a formally constituted Audit Committee of the Board of Directors.

2 (a) Statement of financial performance
Please refer to the key financial reports derived from the unaudited financial statements.

2 (b) Statement of financial position
Please refer to the key financial reports derived from the unaudited financial statements.

2 (c) Statement of cash flows
Please refer to the key financial reports derived from the unaudited financial statements.

2 (d) Dividends or distribution payments

Not declared or proposed to pay any dividends or distribution payment for the year ended 31 March 2021.

2 (e) Statement of movements in equity
Please refer to the key financial reports derived from the unaudited financial statements.

2 (f) Net tangible assets per security

Net tangible assets per ordinary security (NZ$)

2 (g) Commentary on the results of the period
Please refer to the announcement.

Details of basic EPS


Basic EPS (Normalised) - Non-GAAP (see explanatory notes attached)
Basic EPS (Reported)


Return to shareholders
Not applicable




Significant features of operating performance
Please refer to the announcement.

Segment results
Please refer to the key financial reports derived from the
unaudited financial statements.

Performance trends
Please refer to the key financial reports derived from the
unaudited financial statements.

Issuer’s dividend policy
Not applicable

Result affected by other factors
Please refer to the key financial reports derived from the
unaudited financial statements.





March 2021 March 2020
$0.0005 $0.0007

March
2021
March
2020
NZ cents
NZ cents
(0.00031) (0.00032)
(0.00031)
(0.00032)

Appendix 2
Preliminary Full Year Report
3




2 (h)




3.



4.

This report is based on unaudited financial statements of AFC Group Holdings Limited and subsidiaries.
The financial statements are in the process of being audited.



Critical accounting policies and changes in accounting policies
Not applicable


Audit report

The financial statements are in the process of being audited. The audit report will be available before end of June.

Annual Meeting
(a)
To be held at
(b)
Date
Time

(c)
Approximate date of availability of Annual Report

AFC Office
TBA
TBA
30 June 2021

If this annual report was approved by resolution of the Board of Directors, please indicate date of meeting:
October 2021



CFO and Company Secretary

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AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2021
20212020
NZ$ NZ$
Operating Revenue646,910 1,234,931
Cost of Sales(711,897)(1,065,013)
Gross profit(64,987)169,918
Other Income307,144 90,730
Expenses
Selling and Distribution Expenses(156,023)(386,901)
Administration Expenses(942,238)(1,055,376)
Reversal/(Impairment loss) on trade receivables276 60,004
(855,828)(1,121,625)
Finance Income
8 195
Finance Expense
(69,337)(49,123)
(69,329)(48,928)
Loss before income tax(925,157)(1,170,553)
Income tax expenses- -
Loss for the year(925,157)(1,170,553)
Other comprehensive income
- -
Total comprehensive loss for the year(925,157)(1,170,553)
Loss and total comprehensive loss attributable to:
Equity holders of the parent
(455,649)
(615,550)
Non-controlling interest(469,508)
(555,003)
(925,157)(1,170,553)
Operating loss

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021
20212020
NZ$ NZ$
SHAREHOLDERS EQUITY
Issued share capital28,679,503 28,679,503
Accumulated losses(26,773,667)(26,318,018)
Total Equity attributable to shareholders of the company1,905,836 2,361,485
Non-controlling Interest(267,827)201,681
Total shareholders funds 1,638,009 2,563,166
Represented by:
CURRENT ASSETS
Cash and cash equivalents3,375 197,905
Trade, other and related party receivables181,781 456,916
Inventories674,235 884,681
Prepayments and other current assets76,838 76,563
Total current assets936,229 1,616,065
NON-CURRENT ASSETS
Property, plant and equipment
1,649,388 1,729,695
Right-of-use assets
494,463 657,066
Intangible assets and goodwill
858 1,008
Total non-current assets2,144,709 2,387,769
Total assets3,080,938 4,003,834
CURRENT LIABILITIES
Trade, other and related party payables 863,581 766,269
Lease liabilities164,768 151,991
Total current liabilities1,028,349 918,260

NON-CURRENT LIABILITIES
Borrowings
53,400 -
Lease liabilities361,180 522,408
Total non-current liabilities414,580 522,408
Total liabilities1,442,929 1,440,668
Net assets 1,638,009 2,563,166

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2021
20212020
NZ$
NZ$
Cash flows from operating activities
Cash was received from:
Receipts from customers 766,310 1,163,544
Receipts from related parties155,735 584,232
Interest received8 195
Other receipts300,216 90,730
Cash was applied to:
Payments to suppliers and employees(1,463,836)(1,716,258)
Payments to related parties(25,592)(223,159)
Interest paid(170,902)(1,825)
Lease interest(43,745)(47,298)
Net cash outflow from operating activities(481,806)(149,839)
Cash flows from investing activities
Cash was received from:
Proceeds from disposal of property, plant and equipment
1,739
2,421
Cash was applied to:
Purchase of property, plant and equipment- (4,179)
Net cash outflow from investing activities1,739 (1,758)
Cash flows from financing activities
Cash was received from:
Proceeds from borrowings
53,400 -
Received from related parties377,299 281,825
Cash was applied to:
Payments for lease liabilities principal
(152,090)(136,885)
Net cash inflow from financing activities278,609 144,940
(201,458)(6,657)
Foreign currency translation adjustment
6,928 (36,083)
Cash and cash equivalents at the beginning of the year
197,905 240,645
Cash and cash equivalents at the end of the year
3,375 197,905
Net decrease in cash and cash equivalents

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
Issued
Share
Capital
Accumulated
Losses
Equity
Holders of
the Parent
Non-
Controlling
Interests
Total
NZ$ NZ$ NZ$ NZ$ NZ$
Balance as at 1 April 201928,679,503 (25,702,468) 2,977,035 756,684 3,733,719
Net loss for the financial year-(615,550) (615,550) (555,003) (1,170,553)
Other comprehensive income-----
Total comprehensive loss-(615,550) (615,550) (555,003) (1,170,553)
Balance as at 31 March 202028,679,503(26,318,018) 2,361,485 201,681 2,563,166
Net loss for the financial year-(455,649) (455,649) (469,508) (925,157)
Other comprehensive income-----
Total comprehensive loss-(455,649) (455,649) (469,508) (925,157)
Balance as at 31 March 202128,679,503(26,773,667) 1,905,836 (267,827) 1,638,009

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Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer AFC Group Holdings Limited
Reporting Period 12 months to 31 March 2021
Previous Reporting Period 12 months to 31 March 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$647 (48%)
Total Revenue $647 (48%)
Net profit/(loss) from
continuing operations
($925) (21%)
Total net profit/(loss) ($925) (21%)
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay any dividends for the year ended 31
March 2021
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
0.0005 cents 0.0007 cents
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
This results announcement should be read in conjunction with
the unaudited consolidated financial statements for the year
ended 31 March 2021.
Authority for this announcement
Name of person

authorised
to make this announcement
Hao Long
Contact person for this
announcement
Hao Long, CFO
Contact phone number +64 9 9300 245
Contact email address Howard.long@afcnz.com
Date of release through MAP

28/05/2021

Unaudited financial statements for the year ended 31 March 2021 accompany this
announcement.