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 2020.
The Company reports an unaudited net loss attributable to
shareholders of $1,170,553 for the year. This compares with a net
loss attributable to shareholders of $980,148 for the previous year. The
decline in profit was mainly caused by the loss of sales in China during the
Chinese New Year COVID-19 lockdown, and an increase in the provision of
inventory. The net assets were NZ$2.56 million, Cash and cash equivalent
products were NZ$ 0.2 million, and fixed asset was NZ$2.39 million. The
annual sales revenue for the year ended 31 March 2020 was NZ$1.24
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 aware of how uncertain of the future is. The
world is facing a very unpredictable short-term future. AFC plans to continue
with its strategy to become a connection bridge between New Zealand and

China. To deliver on this strategy, AFC has developed a list of actions to enable
revenue growth and return value to our shareholders:
1.AFC implemented a new Livestreaming selling strategy in China.
2.AFC has renegotiated with the Landlord to have a 25% reduction in rent
for three months.
3.AFC has started the restructure process to cut costs.
4.All directors of AFC will continue to take a 30% reduction in
remuneration.
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 August, and we are
planning to hold our Annual Meeting in early October 2020.
On behalf of the Board of Directors
Hao Long
Director
29/06/2020
For Further Information
Please contact Mr Howard Long
howard.long@afcnz.com
+64- 21- 244-8000

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 2020
Previous Reporting Period 12 months to 31 March 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,235 (53%)
Total Revenue $1,235 (53%)
Net profit/(loss) from
continuing operations
($1,171) 19%
Total net profit/(loss) ($1,171) 19%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay any dividends for the year ended 31
March 2020
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
0.07 cents 0.10 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 2020.
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

29/06/2020
Unaudited financial statements for the year ended 31 March 2020 accompany this
announcement.

Appendix 2
Preliminary Full Year Report
2
PRELIMINARY ANNUAL REPORT ANNOUNCEMENT
For Full Year Ended 31 March 2020
(referred to in this report as the "current year")
1.1 Preliminary annual report on results for the year ended 31 March 2020 (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 2020.
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 2020 March 2019
$0.0007 $0.0010
March
2020
March
2019
NZ cents
NZ cents
-0.00032-0.00027
-0.00032
-0.00027

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 August.

Annual Meeting
(a) To be held at
(b) Date
Time
(c) Approximate date of availability of Annual Report

AFC Office
TBA
TBA
28 August 2020

If this annual report was approved by resolution of the Board of Directors, please indicate date of meeting:
October 2020



CFO and Company Secretary
29/06/2020

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2020
20202019
NZ$ NZ$
Operating Revenue1,234,931 2,602,043
Cost of Sales(1,065,013)(1,436,205)
Gross profit169,918 1,165,838
Other Income90,730 20,820
Expenses
Selling and Distribution Expenses(386,901)(957,643)
Administration Expenses(1,055,376)(1,187,412)
Reversal/(Impairment loss) on trade receivables60,004 (25,377)
(1,121,625)(983,774)
Finance Income
195 3,726
Finance Expense
(49,123)(100)
(48,928)3,626
Profit / (Loss) before income tax(1,170,553)(980,148)
Income tax expenses- -
Profit / (loss) for the year(1,170,553)(980,148)
Other comprehensive income
- -
Total comprehensive income / (loss) for the year(1,170,553)(980,148)
Profit/(loss) and Total Comprehensive Income Attributable to:
Equity holders of the parent
(615,550)(583,177)
Non-controlling interest
(555,003)(396,971)
(1,170,553)(980,148)
Profit / (loss) per share:
Basic earnings per share (cents per share)
(0.00032)(0.00027)
Diluted earnings per share (cents per share)
(0.00032)(0.00027)
Operating profit / (loss)

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2020
20202019
NZ$ NZ$
SHAREHOLDERS EQUITY
Issued share capital28,679,503 28,679,503
Accumulated losses(26,318,018)(25,702,468)
Total Equity attributable to shareholders of the company2,361,485 2,977,035
Non-controlling Interest201,681 756,684
Total shareholders funds 2,563,166 3,733,719
Represented by:
CURRENT ASSETS
Cash and cash equivalents197,905 240,645
Trade, other and related party receivables456,916 969,876
Inventories884,681 1,207,417
Prepayments and other current assets76,563 139,348
Total current assets1,616,065 2,557,286
NON-CURRENT ASSETS
Property, plant and equipment
1,729,695 1,828,860
Right-of-use assets
657,066 -
Intangible assets
1,008 1,158
Total non-current assets2,387,769 1,830,018
Total assets4,003,834 4,387,304
CURRENT LIABILITIES
Trade, other and related party payables 766,269 653,585
Lease liabilities151,991 -
Total current liabilities918,260 653,585

NON-CURRENT LIABILITIES
Lease liabilities522,408 -
Total non-current liabilities522,408 -
Total liabilities1,440,668 653,585
Net assets 2,563,166 3,733,719

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2020
20202019
NZ$ NZ$
Cash flows from operating activities
Cash was received from:
Receipts from customers 1,163,544 2,955,678
Receipts from related parties584,232 -
Interest received195 3,726
Other receipts90,730 20,820
Cash was applied to:
Payments to suppliers and employees(1,716,258)(3,333,134)
Payments to related parties(223,159)(41,524)
Interest paid(1,825)(100)
Lease interest(47,298)
-
Net cash outflow from operating activities(149,839)(394,534)
Cash flows from investing activities
Cash was received from:
Proceeds from disposal of property, plant and equipment
2,421 1,058
Cash was applied to:
Purchase of property, plant and equipment(4,179)(25,978)
Net cash outflow from investing activities(1,758)(24,920)
Cash flows from financing activities
Cash was received from:
Received from related parties281,825 -
Cash was applied to:
Payments for lease liabilities principal
(136,885)-
Net cash inflow from financing activities144,940 -
(6,657)(419,454)
Foreign currency translation adjustment
(36,083)(5,680)
Cash and cash equivalents at the beginning of the year
240,645 665,779
Cash and cash equivalents at the end of the year
197,905 240,645
Net increase/(decrease) in cash and cash equivalents

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
Issued
Share
Capital
Accumulated
Losses
Equity
Holders of
the Parent
Non-
Controlling
Interests
Total
NZ$ NZ$ NZ$ NZ$ NZ$
Balance as at 1 April 201828,679,503 (25,119,291) 3,560,212 1,153,655 4,713,867
Net loss for the year end 31.03.19-(583,177) (583,177) (396,971) (980,148)
Other comprehensive income-----
Total comprehensive income/(loss)-(583,177) (583,177) (396,971) (980,148)
Balance as at 31 March 201928,679,503(25,702,468) 2,977,035 756,684 3,733,719
Net loss for the year ended 31.03.20-(615,550) (615,550) (555,003) (1,170,553)
Other comprehensive income-----
Total comprehensive income/(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