Half Year Preliminary Announcement of AFC

HALF YEAR PRELIMINARY ANNOUNCEMENTS
Directors Review
Half Year Preliminary Announcement of AFC Group Holdings Limited
The interim financial statements of AFC Group Holdings Limited (“AFC Group”) for the period ended 30
September 2017 will not be audited.
The net assets of AFC Group were NZ$4.95 million, with a 9% decrease from the half year position as at 30
September 2016. Cash and cash equivalent products were NZ$0.36 million, and property, plant and
equipment were $1.96 million.
The sales revenue for the period to 30 September 2017 was NZ$4.99 million. AFC Group experienced a net
loss of NZ$234 thousand for the period, which is NZ$339 thousand less than the loss incurred in the period
ended 30 September 2016.
The Group operates in a number of business segments in New Zealand. These are:
International Marketing
This includes AFC International Trading Group Limited, who source packaged food products, cosmetics and
health products and National Dairy Group Limited, who source food products for distribution to China. The
half year sales of AFC International Trading Group Limited, an AFC Group subsidiary, were more than NZ$4
million. The company is actively changing the current low margin trade, by adjusting its product mix and
increasing sales of “DD Mask”. The company is expecting a decrease in turnover but an increase in margin.
Vineyard and Winery
The half year wine sales of AFC Longview Ltd were more than NZ$300 thousand.
Manufacturing
AFC Biotechnology Manufacture Co Ltd has started manufacturing its product “DD Mask” from the beginning
of 2018 financial year, resulting in half year sales of more than NZ$910 thousand.
Corporate
The operations of this segment include providing accounting, management and administration services to
other segments of the Group.
Hao Long
Director
AFC Group Holdings Limited

HALF YEAR PRELIMINARY ANNOUNCEMENTS

AFC Group Holdings Limited
Results for announcement to the market
Reporting Period

6 months to 30 September 2017
Previous Reporting Period

6 months to 30 September 2016



Amount (000s)

Percentage change since 30
September 2016

Revenue from ordinary
activities

$4,990 (22.90%)
Profit (loss) from ordinary
activities after tax attributable
to security holder

($234) (57.45%)
Net profit (loss) attributable
to security holders

($234) (57.45%)


Interim /Final Dividend

Amount per security

Imputed amount per security


The Board has not declared or
proposed to pay any dividends
for the period ended 30
September 2017.

Not applicable

Record Date

Not Applicable

Dividend Payment Date

Not Applicable



Comments

AFC Group Holdings Limited (NZAX: AFC) is listed on The New Zealand
Alternative Stock Exchange (NZX). It also has 31-12-17 warrants listed
as AFCWA. The company is headquartered in Auckland, it is a
diversified group specializing in food research and development,
manufacturing, marketing and cross-border trade. It has a sales
network throughout New Zealand, Australia and China. AFC is one
of the few New Zealand listed companies that offers high-quality
products to Chinese customers through cross-border e-commerce
business. AFC has a strong policy of integration of all subsidiary
companies which creates significant business advantage. AFC brand is
developing strongly and it is increasing its profile as a listed company
in New Zealand.

HALF YEAR PRELIMINARY ANNOUNCEMENTS


A. Information disclosed in Interim Financial Statements

There is certain information required to be disclosed under NZAX Listing rules in the preliminary
Results Announcement. The specific information set out below is provided in the financial
statements attached (NZAX Listing Rules Appendix 2.3).

2.3(a) - Statement of Financial Performance Please refer to unaudited financial statement
(attached).
2.3(b) - Statement of Financial Position Please refer to unaudited financial statement
(attached).
2.3(c) - Statement of Cashflows Please refer to unaudited financial statement
(attached).
2.3 (d) - Details of dividends No dividends were declared or paid during the
period ended 30 September 2017.
2.3 (e) - Details of dividend/ distribution
reinvestment plans
There are no dividend reinvestment plans in
operation.
2.3(f) - Statement of movements in equity Please refer to unaudited financial statement
(attached).
2.3(g) - Control of entities lost/gained AFC Group has not gained or lost control over
any entities during the period.
2.3(h) - Details of associates and JVs There are no associates or joint ventures

B. Net Tangible Assets per Security (NZAX Listing Rules Appendix 1: 2.3 (f))

30 September 2017 30 September 2016
Net tangible assets $000 4,858 $4,678
Number of ordinary
securities
3,664,253,194 3,664,216,112
Net tangible asset backing
per ordinary security $
0.13 0.13

Net tangible assets included above is the value of the total assets of the Group less intangible assets,
goodwill, deferred tax and less total liabilities.

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 SEPTEMBER 2017
Unaudited Unaudited
6 Months6 Months
September
2017
September
2016
NZ$ NZ$
Operating Revenue4,990,074 6,472,329
Cost of Sales(4,030,331)(5,885,910)
Gross profit959,743 586,419
Other Income35,712 22,575
Expenses
Selling and Distribution Expenses(136,906)(38,068)
Administration Expenses(1,086,950)(1,093,874)
(228,401)(522,948)
Finance Income
579 1,507
Finance Expense
(6,160)(28,429)
(5,581)(26,922)
Profit / (Loss) before income tax(233,982)(549,870)
Income tax benefit--
Net profit / (loss) for the year(233,982)(549,870)
Other comprehensive income
- -
Total comprehensive income / (loss) for the period(233,982)(549,870)
Equity holders of the parent(214,602)(486,144)
Non-controlling interest(19,380)(63,726)
(233,982)(549,870)
Profit / (loss) per share:
Basic earnings per share (cents per share)
(0.00006)(0.00002)
Diluted earnings per share (cents per share)
(0.00006)(0.00002)
Operating profit / (loss)
Profit/(loss) and Total Comprehensive Income/(Loss)
Attributable to:

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2017
Notes
Issued
Share
Capital
Accumulated
Loss
Equity
Holders
Non-
Controlling
Interests
Total
NZ$ NZ$ NZ$ NZ$ NZ$
Balance as at 31 March 201625,540,835 (23,810,181) 1,730,654 1,151,151 2,881,805
.
Comprehensive income
Net profit for the financial year- (486,144) (486,144) (63,726) (549,870)
Other comprehensive income- - - - -
Total comprehensive income
- (486,144) (486,144) (63,726) (549,870)
Transactions with owners
Ordinary Shares Issued- - -
Exercise of Warrants3,160,346 3,160,346 3,160,346
Share Issue Costs (21,728) - (21,728) - (21,728)
Treasury Shares- - - - -
Total transactions with owners
3,138,618 - 3,138,618 - 3,138,618
Balance as at 30 September 2016 28,679,453 (24,296,325) 4,383,128 1,087,425 5,470,553
Issued
Share
Capital
Accumulated
Loss
Equity
Holders
Non-
Controlling
Interests
Total
NZ$ NZ$ NZ$ NZ$ NZ$
Balance as at 31 March 201625,540,835 (23,810,181) 1,730,654 1,151,151 2,881,805
Comprehensive income
Net profit for the financial year- (896,704) (896,704) (427,080) (1,323,784)
Other comprehensive income- - - - -
Total comprehensive income
- (896,704) (896,704) (427,080) (1,323,784)
Transactions with owners
Ordinary Shares Issued- - - 290,000 290,000
Exercise of Warrants 3,160,396 - 3,160,396 3,160,396
Share Issue Costs (21,728) - (21,728) - (21,728)
Total transactions with owners
3,138,668 - 3,138,668 290,000 3,428,668
Balance as at 31 March 201728,679,503 (24,706,885) 3,972,618 1,014,071 4,986,689
Comprehensive income
Net loss for the period-(214,602) (214,602) (19,380) (233,982)
Other comprehensive income- - - - -
Total comprehensive income/(loss)
- (214,602) (214,602) (19,380) (233,982)
Transactions with owners
Ordinary shares issued - - - 200,000 200,000
Exercise of Warrants - - - - -
Share Issue Costs - - - - -
Total transactions with owners
- - - 200,000 200,000
Balance as at 30 September 2017 (unaudited)28,679,503(24,921,487) 3,758,0161,194,6914,952,707

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2017
Unaudited Audited
30 September
2017
31 March
2017
NZ$ NZ$
SHAREHOLDERS EQUITY
Issued share capital28,679,503 28,679,503
Accumulated losses(24,921,487)(24,706,885)
3,758,016 3,972,618
Non-controlling Interest1,194,691 1,014,071
Total shareholders funds 4,952,707 4,986,689
Represented by:
CURRENT ASSETS
Cash and cash equivalents360,029 777,841
Trade and other receivables431,580 744,119
Inventories1,410,159 1,429,472
Related party receivables1,643,234 1,017,353
Prepayments and other current assets319,660 574,865
Total current assets4,164,662 4,543,650
NON-CURRENT ASSETS
Property, plant and equipment
1,957,150 1,991,244
Biological assets
- -
Intangible assets and goodwill
94,792 169,157
Deferred tax assets
- -
Total non-current assets2,051,942 2,160,401
Total assets6,216,604 6,704,051
CURRENT LIABILITIES
Trade and other payables 805,127 1,306,751
Related party payables458,770 410,611
Total current liabilities1,263,897 1,717,362
NON-CURRENT LIABILITIES
Related party payables- -
Total non-current liabilities- -
Total liabilities1,263,897 1,717,362
Net assets 4,952,707 4,986,689
Total Equity attributable to shareholders
of the company

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2017
Unaudited Unaudited
6 Months6 Months
September
2017
September
2016
NZ$ NZ$
Cash flows from operating activities
Cash was received from:
Receipts from customers 6,319,966 6,526,803
Interest received579 1,507
Other receipts32,717 5,970
Cash was applied to:
Payments to suppliers and employees(5,763,134)(6,041,772)
Interest paid(6,160)(48)
Income tax paid
- -
Net cash outflow from operating activities583,968 492,460
Cash flows from investing activities
Cash was applied to:
Purchase of property, plant and equipment(24,962)(116,547)
Purchase of Distribution Right Asset- -
Purchase of Subsidiary - -
(1,500)-
Net cash outflow from investing activities(26,462)(116,547)
Cash flows from financing activities
Cash was received from:
Proceeds from exercise of warrants- 3,160,346
Proceeds from issue of equity to Non-controlling interests200,000 -
Proceeds from Related party payables464,921 -
Cash was applied to:
Payments to related parties(1,643,233)(2,822,274)
Treasury stock- -
Payment of share issue costs
- (21,728)
Net cash inflow from financing activities(978,312)316,344
(420,807)692,257
Foreign currency translation adjustment
2,995 -
Cash and cash equivalents at the beginning of the period
777,841 688,988
Cash and cash equivalents at the end of the period
360,029 1,381,245
Purchase of intangible assets
Net increase in cash and cash equivalents