AFC Group Half Year Perliminary Announcements

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 6 months to 30 September 2019
Previous Reporting Period 6 months to 30 September 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$740 (55%)
Total Revenue $740 (55%)
Net profit/(loss) from
continuing operations
($304) (288%)
Total net profit/(loss) ($304) (288%)
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay any dividends for the period ended 30
September 2019
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
0.09 cents 0.13 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 six
months ended 30 September 2019.
Authority for this announcement
Name of person

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

29/11/2019

Unaudited financial statements for the six months ended 30 September 2019 accompany this
announcement.

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Preliminary Announcement of AFC Group Holdings Limited

AFC Group Holdings Limited (AFC Group) is pleased to report its financial results for the six
months ended 30 September 2019. The interim financial statements for the period have not been
audited.

2020 Half Year Summary

The net assets of AFC Group were NZ$3,430 thousand, with a 26% down from the half year
position as at 30 September 2018. Cash and cash equivalent were NZ$378 thousand, and property,
plant and equipment were NZ$1,786 thousand. Total revenue was NZ$740 thousand for the six
months ended 30 September 2019, a decline of 55% compared to the previous corresponding
period. Ongoing pressure on the competitive market impacted the results and the net loss for the
period was NZ$304 thousand.


Outlook

AFC Longview Limited actively participated in an official wine competition organised by New
Zealand Wine and NZTE. Our wine of 2018 Pinot Noir have won the Bronze prize in NZ Wine of
the year. In order to provide more channel to consumer, the Company cooperate with JD.com, a
well-known online shopping website in China and sell the wine in their official website. The brand
and international influence of the products are constantly improving.

AFC Biotechnology Manufacture Co Ltd has the highest capacity, the most automated and
intelligent GMP standard mask production line in New Zealand. The Company had tried to sell
the products to consumer through different channel. The consumer now can purchase mask from
DDMASK Tmall (Alibaba) flagship store. Through management's continuous exploration of
China's market and channels, DDMASK successfully sold more than 22,000 boxes in half an hour
through the new media of live broadcasting. Through this successful attempt, the Company have
opened up new channels to exploit the Chinese and international markets by using new marketing
modes such as internet, big data, cross-border e-commerce, live-stream and so on.

Overall, AFC Group has made a qualitative leap on brand building and publicity. AFC Group will
attend China International Import Expo which held in China in November 2019 to further built
and expand the branding of the products. We will remain cautious of the potential impact of the
softening economy and weaker business confidence due to the competitive market. We shall
expect to improve the revenue in the next half year with the new sales channel of live broadcasting.



On behalf of the Board of Directors




Hao Long
Director
AFC Group Holdings Limited

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Appendix 1 (Rule10.3.2)
Preliminary Half Year Report
2


PRELIMINARY HALF YEAR REPORT
ANNOUNCEMENT
For Half Year Ended 30 September 2019
(referred to in this report as the "current period")

1.1 Preliminary annual report on results for the period ended 30 September 2019 (including the results for the previous
corresponding year) in accordance with Listing Rule 10.3.2.

1.2 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.

1.3 (a) Statement of financial performance
Refer to unaudited consolidated financial statements

1.3 (b) Statement of financial position
Refer to unaudited consolidated financial statements

1.3 (c) Statement of cash flows
Refer to unaudited consolidated financial statements

1.3 (d) Dividends
Not declared or proposed to pay any dividends for the period ended 30 September 2019.

1.3 (e) Dividend or distribution reinvestment plans
Not applicable

1.3 (f) Net tangible assets per security

Net tangible assets per ordinary security (NZ$)

1.3 (g) Control of entities gained or lost during the year
Control gained:
Name of subsidiary or group of subsidiaries
Contribution to net profit for the year attributable to members
Date from which such contribution has been calculated

Control lost:
Name of subsidiary or group of subsidiaries
Contribution to net profit for the year attributable to members
Date to which such contribution has been calculated


S ep t em b er 2019 March 2019
$0.0009 $0.0013




Not applicable
Not applicable
Not applicable


Not applicable
Not applicable
Not applicable

1.3 (h) Details of associates and joint venture
entities
Not applicable

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AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2019
Unaudited Unaudited
6 Months6 Months
September 2019
September 2018
$$
Operating Revenue739,664 1,645,065
Cost of Sales(418,157)(741,080)
Gross profit321,507 903,985
Other Income23,679 10,810
Expenses
Selling and Distribution Expenses(166,074)(435,703)
Administration Expenses(458,617)(559,952)
(279,505)(80,860)
Finance Income
182 2,719
Finance Expense
(24,367)(99)
(24,185)2,620
Profit / (Loss) before income tax(303,690)(78,240)
Income tax- (200)
Net profit / (loss) for the period(303,690)(78,440)
Other comprehensive income
- -
Total comprehensive income / (loss) for the period(303,690)(78,440)
Equity holders of the parent(138,585)
(87,824)
Non-controlling interest(165,105)
9,384
(303,690)(78,440)
Profit / (loss) per share:
Basic earnings per share (cents per share)
(0.00008)(0.00002)
Diluted earnings per share (cents per share)
(0.00008)(0.00002)
Operating profit / (loss)
Profit/(loss) and Total Comprehensive Income/(Loss)
Attributable to:

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2019
Unaudited Audited
At 30 SeptemberAt 31 March
20192019
$$
SHAREHOLDERS EQUITY
Issued share capital28,679,503 28,679,503
Accumulated losses(25,841,053)(25,702,468)
2,838,450 2,977,035
Non-controlling Interest591,579 756,684
Total shareholders funds 3,430,029 3,733,719
Represented by:
CURRENT ASSETS
Cash and cash equivalents377,622 240,645
Inventories1,260,748 1,207,417
Trade, other and related party receivables251,583 969,876
Prepayments and other current assets198,015 139,348
Total current assets2,087,968 2,557,286
NON-CURRENT ASSETS
Property, plant and equipment
1,785,993 1,828,860
Right-of-use assets
705,496 -
Intangible assets and goodwill
1,083 1,158
Deferred tax assets
- -
Total non-current assets2,492,572 1,830,018
Total assets4,580,540 4,387,304
CURRENT LIABILITIES
Trade, other and related party payables 436,232 653,585
Lease liabilities140,535 -
Total current liabilities576,767 653,585
NON-CURRENT LIABILITIES
Lease liabilities573,744 -
Total non-current liabilities573,744 -
Total liabilities1,150,511 653,585
Net assets 3,430,029 3,733,719
Total Equity attributable to shareholders of
the company

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2019
Unaudited Unaudited
6 Months6 Months
September 2019 September 2018
$$
Cash flows from operating activities
Cash was received from:
Receipts from customers 766,376 1,785,676
Receipts from related parties691,581 3,972
Interest received182 2,719
Other receipts23,679 10,810
Cash was applied to:
Payments to suppliers and employees(1,133,899)(1,531,680)
Payments to related parties(91,805)(349,431)
Interest paid- (99)
Leases interest(24,367)-
Net cash inflow/(outflow) from operating activities231,747 (78,033)
Cash flows from investing activities
Cash was received from:
Proceeds from disposal of property, plant and equipment
1,530 -
Cash was applied to:
Purchase of property, plant and equipment(4,179)(16,385)
Net cash outflow from investing activities(2,649)(16,385)
Cash flows from financing activities
Cash was applied to:
Payments for lease liabilities principal
(66,463)-
Payments to related parties- (40,744)
Net cash outflow from financing activities(66,463)(40,744)
162,635 (135,162)
Foreign currency translation adjustment
(25,658)(8,504)
Cash and cash equivalents at the beginning of the period
240,645 665,779
Cash and cash equivalents at the end of the period
377,622 522,113
Net increase/(decrease) in cash and cash equivalents

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2019
Issued
Share
Capital
Accumulated
Loss
Equity
Holders
Non-
Controlling
Interests
Total
$ $ $ $ $
Balance as at 1 April 201828,679,503 (25,119,291) 3,560,212 1,153,655 4,713,867
.
Comprehensive income
Net (loss)/profit for the financial period- (87,824) (87,824) 9,384 (78,440)
Other comprehensive income- - - - -
Total comprehensive income
- (87,824) (87,824) 9,384 (78,440)
Balance as at 30 September 2018 (unaudited)28,679,503 (25,207,115) 3,472,388 1,163,039 4,635,427
Balance as at 1 April 201828,679,503 (25,119,291) 3,560,212 1,153,655 4,713,867
Comprehensive income
Net loss for the financial year- (583,177) (583,177) (396,971) (980,148)
Other comprehensive income- - - - -
Total comprehensive income
- (583,177) (583,177) (396,971) (980,148)
Balance as at 31 March 2019 (audited)28,679,503 (25,702,468) 2,977,035 756,684 3,733,719
Comprehensive income
Net loss for the financial period- (138,585) (138,585) (165,105) (303,690)
Other comprehensive income- - - - -
Total comprehensive income/(loss)- (138,585) (138,585) (165,105) (303,690)
Balance as at 30 September 2019 (unaudited)28,679,503 (25,841,053) 2,838,450 591,579 3,430,029