AFC Interim Condensed Consolidated Financial Statements

AFC GROUP HOLDINGS LIMITED
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED REPORT CONTENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
Page
Directors' Profiles
2
Financial Statements
Interim Consolidated Statement of Comprehensive Income 3
Interim Consolidated Statement of Changes in Equity 4
Interim Consolidated Statement of Financial Position 5
Interim Consolidated Statement of Cash Flows6
Notes to the Interim Consolidated Financial Statements 7 - 22
Corporate Information23

Interim Report September 2020
Page 1

AFC GROUP HOLDINGS LIMITED
QIANG LI
HAO LONG
ZILEI WANG
Mr. Zilei Wang graduated from Shanghai
International Studies University, where he
obtained a Master Degree of Arts in English
Language and Literature. He is a member of
The Chinese Institute of Certified Public
Accountants (CICPA) and has business
experience in corporate finance, cross-border
mergers and acquisitions, corporate governance
and financial management in New Zealand. He
sits on the Board of several private companies
in New Zealand.
Mr. Wang joined AFC in 2018 and is an
Independent Director of AFC Group Holdings
Limited, and member of the Audit and Risk
committee.
Mr. Hao Long moved to New Zealand in 2002
and graduated from Massey University with a
double major in Accounting and Marketing. He is
a Chartered Accountant (CA), a member of
Chartered Accountants Australia and New
Zealand, and a Chartered Member of the
Institute of Director (CMInstD). He has over 12
years professional accounting experience,
including working for a Big 4 accounting firm
plus governance and management experience
in the commercial sectors in China and New
Zealand.
Mr. Long joined AFC in 2015 and is the
Executive Director and CFO of AFC Group
Holdings Ltd, and the CEO of AFC Longview
Limited.
DIRECTORS' PROFILES
YANG XIA BO XIAN CAO
Yang Xia is a Chinese National with more than
30 years of experience in commerce and
finance. Prior to starting his own business, he
held management and leadership roles in the
Chinese Government’s finance department and
in major nationally owned Chinese companies.
He is a former director general of the Anhui
Chaohu Foreign Trade and Economic Relations
Commission. He currently holds directorships in
various Chinese companies spanning a range of
industries.
In 2007 Mr Xia formed his own investment
company, Guangdong Yinrui Investment &
Management Company Limited. While a
majority of his investments are in China, he has
also invested in a chemical company in
Thailand. Mr Xia is currently in the process of
expanding his investment activities into Australia
and New Zealand having founded NZ Silveray
Group Limited in February 2014.
Mr. Bo Xian Cao is a Chinese National and a
New Zealand Citizen. He moved to New
Zealand in 1994 and he has over 22 years
business experience in China and New Zealand.
He has held various executive positions in
export related sectors specifically primary
industries (including Hydroponics) and Skin
Care industries. Mr. Cao has developed skills in
trading between New Zealand and Asian
countries specialising in Hong Kong and China.
Mr. Cao joined AFC in 2016 and he is currently
the director of AFC Group Holdings Limited, and
Chairman of the Audit and Risk committee.
Mr. Qiang Li had more than 10 years’
experience in the health industry before he
came to New Zealand in 2001 to study for his
MBA qualification. He joined GMP Dairy Limited
in 2004. He gained experience in research and
development, purchasing and production
department. He’s also promoted New Zealand
health products into the Chinese market
successfully while he was working with GMP. He
joined the GMP management group in 2010,
and during that time promoted the “KAWALA”
brand of milk products into the Chinese market.
Mr. Li joined AFC in 2016 and is an Independent
Director of AFC Group Holdings Limited, and
member of the Audit and Risk committee.
Interim Report September 2020
Page 2

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
Unaudited Unaudited
6 Months6 Months
September 2020September 2019
$$
Operating Revenue287,582 739,664
Cost of Sales(258,159)(418,157)
Gross profit29,423 321,507
Other Income230,180 23,679
Expenses
Selling and Distribution Expenses(70,128)(166,074)
Administration Expenses(473,880)(458,617)
(284,405)(279,505)
Finance Income
7 182
Finance Expense
(32,627)(24,367)
(32,620)(24,185)
Profit / (Loss) before income tax(317,025)(303,690)
Income tax- -
Net profit / (loss) for the period(317,025)(303,690)
Other comprehensive income- -
Total comprehensive income / (loss) for the period(317,025)(303,690)
Equity holders of the parent(153,479)(138,585)
Non-controlling interest
(163,546)(165,105)
(317,025)(303,690)
Profit / (loss) per share:
Basic and Diluted Earning per share in NZ$
(0.00004)(0.00004)
Operating profit / (loss)
Profit/(loss) and Total Comprehensive Income/(Loss)
Attributable to:
The interim financial statements are to be read in conjunction with the notes to the financial statements set out on pages 7 to
22.
Interim Report September 2020
Page 3

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
Issued
Share
Capital
Accumulated
Loss
Equity
Holders
Non-
Controlling
Interests
Total
$ $ $ $ $
Balance as at 1 April 201928,679,503 (25,702,468) 2,977,035 756,684 3,733,719
.
Comprehensive income
Net (loss)/profit for the financial period- (138,585) (138,585) (165,105) (303,690)
Other comprehensive income- - - - -
Total comprehensive income
- (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
Balance as at 1 April 201928,679,503 (25,702,468) 2,977,035 756,684 3,733,719
Comprehensive income
Net loss for the financial year- (615,550) (615,550) (555,003) (1,170,553)
Other comprehensive income- - - - -
Total comprehensive income
- (615,550) (615,550) (555,003) (1,170,553)
Balance as at 31 March 2020 (audited)28,679,503 (26,318,018) 2,361,485 201,681 2,563,166
Comprehensive income
Net loss for the financial period- (153,479) (153,479) (163,546) (317,025)
Other comprehensive income- - - - -
Total comprehensive income/(loss)- (153,479) (153,479) (163,546) (317,025)
Balance as at 30 September 2020 (unaudited)28,679,503 (26,471,497) 2,208,006 38,135 2,246,141
The interim financial statements are to be read in conjunction with the notes to the financial statements set out on pages 7 to 22.
Interim Report September 2020
Page 4

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2020
Unaudited Audited
At 30 SeptemberAt 31 March
20202020
Note
$$
SHAREHOLDERS EQUITY
Issued share capital328,679,503 28,679,503
Accumulated losses(26,471,497)(26,318,018)
2,208,006 2,361,485
Non-controlling Interest38,135 201,681
Total shareholders funds 2,246,141 2,563,166
Represented by:
CURRENT ASSETS
Cash and cash equivalents419,305 197,905
Inventories5884,976 456,916
Trade, other and related party receivables6158,987 884,681
Prepayments and other current assets131,709 76,563
Total current assets1,194,977 1,616,065
NON-CURRENT ASSETS
Property, plant and equipment
71,690,747 1,729,695
Right-of-use assets
8577,698 657,066
Intangible assets and goodwill
9
933 1,008
Total non-current assets2,269,378 2,387,769
Total assets3,464,355 4,003,834
CURRENT LIABILITIES
Trade, other and related party payables
10
561,246 766,269
Lease liabilities8158,417 151,991
Total current liabilities719,663 918,260
NON-CURRENT LIABILITIES
Borrowings
1153,400 -
Lease liabilities8445,151 522,408
Total non-current liabilities498,551 522,408
Total liabilities1,218,214 1,440,668
Net assets 2,246,141 2,563,166
For and on behalf of the Board,
Total Equity attributable to shareholders
of the company
The interim financial statements are to be read in conjunction with the notes to the financial statements set out on pages
7 to 22.
Interim Report September 2020
Page 5

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
Unaudited Unaudited
6 Months6 Months
September 2020 September 2019
Note
$$
Cash flows from operating activities
Cash was received from:
Receipts from customers 412,679 766,376
Receipts from related parties172,832 691,581
Interest received7 182
Other receipts228,074 23,679
Cash was applied to:
Payments to suppliers and employees(855,777)(1,133,899)
Payments to related parties(216,064)(91,805)
Interest paid(9,416)-
Leases interest(23,211)(24,367)
Net cash inflow/(outflow) from operating activities(290,876)231,747
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 equipment7- (4,179)
Net cash outflow from investing activities- (2,649)
Cash flows from financing activities
Cash was received from:
Proceeds from borrowings
53,400 -
Receipts from related parties
131,240 -
Cash was applied to:
Payments for lease liabilities principal
(74,470)(66,463)
Net cash inflow/(outflow) from financing activities110,170 (66,463)
(180,706)162,635
Foreign currency translation adjustment
2,106 (25,658)
Cash and cash equivalents at the beginning of the period
197,905 240,645
Cash and cash equivalents at the end of the period
419,305 377,622
Net increase/(decrease) in cash and cash equivalents
The interim financial statements are to be read in conjunction with the notes to the financial statements set out on pages 7 to
22.
Interim Report September 2020
Page 6

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
1.ACCOUNTING POLICIES
REPORTING ENTITY
1.1Statement of compliance
1.2 Basis of preparation
1.3 Significant accounting policies
1.4 Critical accounting judgments and key sources of estimation uncertainty
The preparation of the interim financial statements in compliance with IAS 34 requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of applying the group’s
accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions
and estimates are significant to the consolidated financial statements are disclosed in note 1.4.
AFC Group Holdings Limited has applied the same accounting policies and methods of computation in its interim
consolidated financial statements as were applied in the annual financial statements for the year ended 31 March
2020, except for those that relate to new standards and interpretations effective for the first time for periods
beginning on (or after) 1 April 2020 and will be adopted in the 2021 annual financial statements.
The same significant judgments, estimates and assumptions included in the notes to the financial statements in the
Group's financial statements for the year ended 31 March 2020 have been applied to these Interim Consolidated
Financial Statements.
AFC Group Holdings Limited (the “Company”) is a company incorporated and domiciled in New Zealand and
registered under the Companies Act 1993. The Company is listed and its ordinary shares are quoted on the NZX
main board equity security market (NZX main market) and the addresses of its registered office and principal place
of business are disclosed in the Corporate Information section of this report. The Company is an FMC Reporting
Entity under the Financial Markets Conduct Act 2013 and its financial statements comply with the Companies Act
1993 and the Financial Markets Conduct Act 2013.
The interim consolidated financial statements of AFC Group Holdings Limited for the six month period ended 30
September 2020 comprise the Company and its subsidiaries (together referred to as the "Group"). For the purposes
of complying with generally accepted accounting practice in New Zealand ("NZ GAAP"), the Group is a for-profit
entity. The principal activity of the Company and the Group is to produce, manufacture and purchase food, health,
and cosmetic products for distribution in New Zealand and the Chinese markets. The Group also operates in the
winery and vineyard industry which has manufacturing operations.
The condensed interim consolidated financial statements were approved and authorised for issue by the directors on
____________. The directors are not able to amend the financial statements after issue.
These consolidated interim financial statements have been prepared in accordance with NZ GAAP. These
consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting.
They do not include all disclosures that would otherwise be required in a complete set of financial statements and
should be read in conjunction with AFC Group Holdings Limited's Annual Report for the year ended 31 March 2020.
The interim consolidated financial statements are prepared on a cost basis except for financial assets which are
carried at armotised cost. The interim consolidated financial statements for the Group are presented in New Zealand
dollars ($), which is the functional currency of all entities within the Group. All financial information has been rounded
to the nearest dollar unless otherwise stated.
Interim Report September 2020
Page 7
26/11/2020

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
1.ACCOUNTING POLICIES
1.5Going concern
Vineyard and Winery:
- Budget Assumptions:
- Restructure and reduce hours for some staff to reduce staff cost.
Manufacturing:
- Budget Assumptions:
- Restructuring and redundancy process ongoing to reduce staff cost.
- Old stock clearance for cashflow.
2. INCOME TAX
- Assumptions made to achieve this budget include:
- The Directors have forecasts that indicate the Group can manage its working capital requirements and trade
levels for at least 12 months from the date of these financial statements.
- Promotion sales for White Diamond wine for cashflow and achieved by more than 500 bottles sold within a
month.
- Applying multiple promotion to stimulate sales.
- The Vineyard has been existence from 1960, therefore making the vines a heritage plant, which
increases the value of wine.
- Other Assumptions:
- $126,000 sold to a related party in China in October 2020.
- Increased use of online live streaming distribution channels will be used in 2021. Examples include
Internet Celebrities promote masks, Jingdong, Wei Pin Hui and Staff Live Stream on Tmall.
- New product versions to be launched in 2021.
The Group has tax losses of $3,211,411 bought forward from 31 March 2020. Losses can be carried forward
indefinitely under New Zealand tax law (assuming shareholder continuity requirements are met and approval of the
Inland Revenue Department is obtained).
The Group calculates the period's income tax expense using 28% which is the tax rate that would be applicable to
the expected total annual earnings (September 2019: 28%).
The consolidated unaudited financial statements have been prepared on a going concern basis. The Directors has
reasonable expectation that the Group had adequate resources to continue in operational existence for the
foreseeable future.
As at 30 September 2020, the Group is in a positive working capital position of $475,314 (31 March 2020: $697,805)
and net equity of $2,246,141 (31 March 2020: $2,563,166). The Group did not raise any equity funding during the
period (31 March 2020: $Nil). The longer-term effects of Covid-19 are not clear at the present point in time. Several
scenarios were considered, reflecting a range of outcomes potentially resulting from the aftermath of Covid-19.
Key assumptions underpinning the going concern assessment include:
- Costs savings initiatives implemented post period end:
• All directors of AFC Group have volunteered to take a 30% decrease in remuneration from 1 April 2020
- Other Assumptions:
- Most of the wines manufactured by Longview do not age quickly, the wine is stable and age well.
Interim Report September 2020
Page 8

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
2. INCOME TAX (continued)
3.AUTHORISED AND ISSUED SHARE CAPITAL
Shares Issued
Balance as at 31 March 2020
No.$
Ordinary shares
Balance at 1 April 2019
Ordinary shares on issue
3,664,253,194 28,679,577
Treasury shares
(37,082)(74)
Ordinary shares on issue at 1 April 2019 excluding treasury shares
3,664,216,112 28,679,503
Movement for 2020 financial year
Ordinary shares authorised and issued
- -
Ordinary shares on issue at 31 March 2020
3,664,216,112 28,679,503
Movement to 30 September 2020
Ordinary shares authorised and issued
- -
Ordinary shares on issue at 30 September 2020 excluding treasury shares
3,664,216,112 28,679,503
4.CASH AND CASH EQUIVALENTS
SeptemberMarch
20202020
$$
Cash at bank and on hand19,305 197,905
Total cash and cash equivalents19,305 197,905
The carrying amount of cash and cash equivalents approximates their fair value. Cash at bank earns interest at
floating rates on daily deposit balances. There is no overdraft facility for the Group.
Treasury shares are those shares acquired by the company from shareholders who exercised their minority buy back
rights at the time shares were issued to NZ Silveray Group Limited. These shares are held by the company until the
directors resolve to reissue the shares or to cancel the shares. At reporting date, the company held 37,082 treasury
shares which were acquired during 2016.
The Group has not recognised a deferred tax asset on its Statement of Financial Position as at reporting date. In
deciding whether to recognise the deferred tax assets, the Group has determined if the utilisation of deferred assets
is probable and whether it is likely that sufficient and suitable taxable profits will be available in the future against
which the reversal of temporary differences can be deducted.
The company has not issued any new shares during the period.
All ordinary shares issued are fully paid. All ordinary shares rank equally with one vote attached to each fully paid
ordinary share and have equal dividend rights and no par value. The Group has not declared or proposed to pay any
dividends for the period ended 30 September 2020 (September 2019: Nil).
Interim Report September 2020
Page 9

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
5.INVENTORIES
SeptemberMarch
20202020
$$
Work in progress
182,255 125,501
Finished goods
843,719 921,973
Provision for inventory
(140,998)(162,793)
Total Inventories
884,976 884,681
Provision of closing stock
Opening provision of closing stock
(162,793)(76,019)
Reversal of opening provision for inventory
32,872 46,427
Charged to profit and loss
(11,077)(133,201)
Closing provision for closing stock
(140,998)(162,793)
6.
TRADE, OTHER AND RELATED PARTY RECEIVABLES
SeptemberMarch
20202020
Note
$$
Trade receivables - third parties48,229 173,625
Trade receivables - related parties
12
110,917 283,749
159,146 457,374
Allowance for impairment losses(159)(458)
Total trade and related party receivables
158,987 456,916
There has been $11,077 charged to the profit and loss for inventory in the current year and there is $140,998 has
been written down to net realisable value (March 2020: $162,793). Assessing write downs for inventory
obsolescence and net realisable value involves making estimates and judgements in relation to future selling prices
between the most recent store stock counts and reporting date.
Trade debtors are non-interest bearing and receipt is normally on 30 days terms. Related party receivables
are non-interest bearing and repayable on demand as disclosed in note 12.
The directors consider that there is no material difference between the carrying value and fair value of trade
debtors and related party receivables. The Group's management considers that all financial assets that are
not impaired or past due for each of the reporting dates under review are of good credit quality. The directors
also consider that the receivables that are past due and not impaired are fully recoverable.
Interim Report September 2020
Page 10

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
6.
TRADE, OTHER AND RELATED PARTY RECEIVABLES (continued)
SeptemberMarch
20202020
$$
Movement in the allowance for impairment losses
Opening Balance 1 April
458 60,462
Reversal of prior year provision
(458)(60,462)
159 458
159 458
The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect
of trade and related party receivables. The main component of this allowance is a specific loss component
that relates to individually significant exposures, and a collective loss component established for groups of
similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance
is determined based on historical data of payment statistics for similar financial assets.
Charge for the financial year
Closing Balance 30 September/31 March
Interim Report September 2020
Page 11

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
7.
PROPERTY, PLANT AND EQUIPMENT
Land Buildings
Land
Improvements
Plant &
Equipment
Motor
Vehicles
Computer
Equipment
Fixture &
Fittings,
Office
Equipment
Bearer
Plants -
Grape Vines
Total
$$$$$$$$$
As at 31 March 2020
Cost
Cost as at 1 April 2019320,000 905,199 50,000 447,775 98,744 30,252 205,591 80,000 2,137,561
Additions - - - 2,697 - 502 980 - 4,179
Disposal- - - (417)- - (4,500)- (4,917)
Written off- - - (11,865)- - - - (11,865)
Cost as at 31 March 2020320,000 905,199 50,000 438,190 98,744 30,754 202,071 80,000 2,124,958
Accumulated Depreciation
- (5,578)- (143,167) (56,221) (19,288) (67,763) (16,684)(308,701)
- (2,435)- (45,759) (14,191) (5,671) (19,815) (4,749)(92,620)
Disposal
- - - 263 - - 1,908 - 2,171
Written off- - - 3,887 - - - - 3,887
- (8,013)- (184,776) (70,412) (24,959) (85,670) (21,433)
(395,263)
Carrying Amount
Cost 320,000 905,199 50,000 438,190 98,744 30,754 202,071 80,000
2,124,958
- (8,013)- (184,776) (70,412) (24,959) (85,670) (21,433)(395,263)
320,000 897,186 50,000 253,414 28,332 5,795 116,401 58,567
1,729,695
As at 30 September 2020
Cost
Cost as at 1 April 2020320,000 905,199 50,000 438,190 98,744 30,754 202,071 80,000 2,124,958
Additions - - - - - - - - -
Written off- - - - - (1,999) (2,843)- (4,842)
Cost as at 30 September 2020320,000 905,199 50,000 438,190 98,744 28,755 199,228 80,000 2,120,116
Accumulated Depreciation
- (8,013)- (184,776) (70,412) (24,959) (85,670) (21,433)(395,263)
- (1,145)- (18,895) (5,796) (1,252) (8,873) (2,196)(38,157)
Written off- - - - - 1,208 2,843 - 4,051
- (9,158)- (203,671) (76,208) (25,003) (91,700) (23,629)(429,369)
Carrying Amount
Cost 320,000 905,199 50,000 438,190 98,744 28,755 199,228 80,000
2,120,116
- (9,158)- (203,671) (76,208) (25,003) (91,700) (23,629)(429,369)
320,000 896,041 50,000 234,519 22,536 3,752 107,528 56,371 1,690,747
Accumulated Depreciation at 1
April 2020
Depreciation charge for the
period
Accumulated Depreciation at
30 September 2020
Accumulated Depreciation
Carrying Amount 30
September 2020
Accumulated Depreciation at 1
April 2019
Depreciation charge for the
year
Accumulated Depreciation at
31 March 2020
Accumulated Depreciation
Carrying Amount 31 March
2020
Interim Report September 2020
Page 12

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
8.RIGHT-OF-USE ASSETS
8.1Right-of-use assets
BuildingsForkliftTotal
At 1 April 2020
644,192 12,874 657,066
Depreciation
(209,458)(4,023)(213,481)
Increase in rent modification
3,641 - 3,641
At 30 September 2020
438,375 8,851 447,226
8.2Lease liabilities
At 1 April 2020
661,236 13,163 674,399
Lease interest
22,410 801 23,211
Lease payments
(94,767)(2,916)(97,683)
Increase in rent modification
3,641 - 3,641
At 30 September 2020
592,520 11,048 603,568
Lease liabilities
Current lease liabilities
153,698 4,719 158,417
Non-current lease liabilities
438,822 6,329 445,151
Total lease liabilities
592,520 11,048 603,568
9.INTANGIBLE ASSETS
TrademarksTotal
$$
Year ended 31 March 2020
Cost
Cost as at 1 April 2019
1,500
1,500
Additions- -
Cost as at 31 March 20201,500 1,500
Accumulated Amortisation
(342)(342)
(150)(150)
(492)(492)
Carrying Amount
Cost
1,500
1,500
(492)(492)
1,008 1,008
Carrying Amount 31 March 2020
Accumulated amortisation 1 April
2019
Accumulated amortisation as at
31 March 2020
Amortisation for the year
Accumulated amortisation
The group leases two properties in the New Zealand. The periodic rent is fixed over the lease term for both the
property leases.
Interim Report September 2020
Page 13

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
9.INTANGIBLE ASSETS (continued)
TrademarksTotal
$$
Period ended 30 September 2020
Cost
Cost as at 1 April 2020
1,500
1,500
Additions - -
Cost as at 30 September 20201,500 1,500
Accumulated Amortisation
(492)(492)
(75)(75)
(567)(567)
Carrying Amount
Cost 1,500 1,500
(567)(567)
933 933
10.TRADE, OTHER AND RELATED PARTY PAYABLES
SeptemberMarch
20202020
Note
$$
Trade payables
97,255 63,647
Accruals
78,929 115,908
Related party payables
12 348,102 432,926
Other payables
36,960 153,788
561,246 766,269
Related party payables are unsecured and repayable on demand. The related party payables except for NZ
Silveray Group Limited are non-interest bearing. For NZ Silveray Group Limited, interest is charged at 10.08%
per annum for outstanding amounts.
Amortisation and impairment charges of $75 are recognised under administration expenses in the Statement of
Comprehensive Income.
Carrying Amount 30 September
2020
Accumulated amortisation 1 April
2020
Amortisation for the period
Accumulated amortisation as at
30 September 2020
Accumulated amortisation
The normal trade credit terms granted to the Group range from 30 to 90 days. The trade payables are
unsecured and non-interest bearing. The carrying amount disclosed above is a reasonable approximation of fair
value.
Interim Report September 2020
Page 14

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
11.BORROWINGS
SeptemberMarch
20202020
$$
Small business cashflow loan
53,400 -
53,400 -
Non-current
Between one and two years
53,400 -
53,400 -
12.RELATED PARTIES
Related Parties:
Anhui Asin International Co. Ltd
Australasian International Group Limited
Bo Xian Cao
E Way Holdings Group Limited
E Way Trading Limited
Hefei Ge Lun Bu E-commerce Co., Ltd
Company associated to company's major shareholder, Mr Yang XiaNew Zealand Asia-Pacific Cultural Exchange Centre
Limited
Company associated with Shuang Xia, director of subsidiary
Howard & Co Consulting and Advisory Services
Limited
Guangdong Farmside International Trading Co.
Limited
Director of company and subsidiaries
Company associated to company's major shareholder, Mr Yang Xia
Company associated to company's major shareholder, Mr Yang Xia
Company associated with director, Mr Bo Xian Cao
Related party transactions have arisen where a person(s) has control or significant influence over the reporting entity
or where two entities are controlled or jointly controlled by a person(s) that has control or significant influence over
the reporting entity.
Company associated with director, Mr Bo Xian Cao
Company associated to company's major shareholder, Mr Yang Xia
Director of company and subsidiaries, senior employee of AFC
Company associated with director Mr Hao Long
Hao Long
Borrowings are initially recognised at fair value plus transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (plus transaction costs) and the redemption
amount is recognised in the income statement over the period of the borrowings using the effective interest
method. Borrowings are classified as non-current liabilities as the Group has an unconditional right to defer
settlement of the liability 12 months after the balance sheet date.
Small business cashflow loan established and administered by the Crown to provide loans to assist small
business impacted by the Covid-19 economic shock to support immediate cashflow needs and meet fixed costs.
The interest rate for the loan is 3%. The Group will not be charged any interest on the loan if repay all the
outstanding loan amount in full before 24 months date. The loan contract will be terminated when the Group
have repaid all amounts owing to IRD.
Company associated to company's major shareholder, Mr Yang Xia
Guangdong Yinrui Investment & Management
Company
Interim Report September 2020
Page 15

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
12.RELATED PARTIES (continued)
Related Parties: (continued)
NZ Silveray Group Limited
Qiang Li
Shuang Xia
Tongqu Trading Group Limited
Yang Xia
Related party balances
The following balances were held with related parties at period/year end.
SeptemberMarch
20202020
Related Party Receivables
$$
108,817 283,749
2,100 -
110,917 283,749
SeptemberMarch
20202020
Related Party Payables
$$
Anhui Asin International Co. Ltd
41,036 -
Anhui Asin International Co. LtdPurchase of goods
28,734 -
Australasian International Group Limited Purchase of goods101,770 145,159
1,342 -
19,025 -
2,013 -
NZ Silveray Group Limited20,930 -
NZ Silveray Group Limited131,240 286,808
Tongqu Trading Group Limited2,012 959
348,102 432,926
Advances
Guangdong Farmside International Trading Co.
Limited
Nature of Transactions
Company's major shareholder, own 49% of AFC Longview Limited
and 24% of AFC Biotechnology Manufacture Co Limited
Director of company
Company associated with director, Mr Zilei Wang
Director of company
The related parties receivables and payables are unsecured, non-interest bearing and repayable on demand. There
is no collateral or guarantees for related parties payables.
Nature of Transactions
Wei LiShareholder of subsidiary
Zilei Wang
Management fees
Director fee
E Way Holdings Group Limited
Advances
New Zealand Fantasy Angel Biotechnology Limited Company associated with director, Mr Bo Xian Cao
Director fee
Director of subsidiary
New Zealand National Trade Limited
New Zealand Guangdong General Association of
Commerce Inc
Company associated with director, Mr Bo Xian Cao
Company associated with director, Mr Qiang Li
Director of company and subsidiary
Sale of products Guangdong Farmside International Trading Co.
Limited
New Zealand National Trade Limited
Hefei Ge Lun Bu E-commerce Co., LtdSale of products
Director fee
Purchase of goods and
services
Interim Report September 2020
Page 16

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
12.RELATED PARTIES (continued)
SeptemberMarch
20202020
Related party transactions$$
Sales of products or services provided to the following:
Australasian International Group Limited (sales of products)
- 653
E Way Holdings Group Limited2,940 5,243
E Way Trading Limited- 18,900
Guangdong Farmside International Trading Co., Ltd (sales of products)108,922 283,749
Hefei Ge Lun Bu e-commerce Co., Ltd2,100 -
- 87
New Zealand Fantasy Angel Biotechnology Limited4 10,058
113,966 318,690
Expenses repaid/recharged on behalf of the Group:
Anhui Asin International Trade Co. Ltd 49,285 -
Guangdong Farmside International Trading Co. Ltd20,811 1,779
Guangdong Yinrui Investment & Management Company Limited
- 25,124
Other related parties
- 6,509
70,096 33,412
Anhui Asin International Trade Co. Ltd (purchase of goods) 34,694 -
Australasian International Group Limited (purchase of goods) - 304,344
E Way Holdings Group Limited
1,803 13,070
Guangdong Farmside International Trading Co. Limited (purchase of goods)- 954
15,000 30,000
New Zealand Asia-Pacific Cultural Exchange Centre Limited- 2,043
NZ Silveray Group Limited11,200 32,000
62,697 382,411
Interest received or debited on related party balances:
Guangdong Farmside International Trading Co. Limited
-
87
-
87
Interest paid or credited on related party balances:
NZ Silveray Group Limited - on advances
9,416 1,825
9,416 1,825
Other transactions:
- 1,000
-
1,000
Purchases from the following for services or products provided:
Howard & Co Consulting and Advisory Services Limited
New Zealand Guangdong General Association of Commerce Inc - donation for
annual event
Sales made to related parties in China are made on extended terms with payment due 3 months from the date the
goods are received by the related party.
Related party payables are unsecured and repayable on demand. The related party payables except for NZ Silveray
Group Limited are non-interest bearing. For NZ Silveray Group Limited, interest is charged at 10.08% per annum for
outstanding amounts. No interest is charged on any management fees balances payable.
Howard & Co Consulting and Advisory Services Limited
Interim Report September 2020
Page 17

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
12.RELATED PARTIES (continued)
The have been no share placement during the period ended 30 September 2020.
Key Management Personnel
SeptemberMarch
20202020
$$
Salaries and other short-term benefits
118,766 202,317
Directors' fees
17,552 58,070
136,318 260,387
13.COMMITMENTS AND CONTINGENCIES
The Group has no capital commitments at 30 September 2020 (31 March 2020: Nil)
14.FINANCIAL INSTRUMENTS
Financial
asset at
amortised
cost
Financial
liabilities at
amortised cost
Total
$$$
Financial Assets:
Cash and cash equivalents19,305 - 19,305
Total financial assets19,305 - 19,305
Financial liabilities:
Related party payables and loans- 131,240 131,240
Borrowings- 53,400 53,400
Lease liabilities- 603,568 603,568
Total financial liabilities- 788,208 788,208
Financial Assets:
Cash and cash equivalents197,905 - 197,905
Total financial assets197,905 - 197,905
Financial liabilities:
Related party payables and loans- 281,825 281,825
Lease liabilities- 674,399 674,399
Total financial liabilities- 956,224 956,224
Categories of financial assets and liabilities
The carrying amounts presented in the statement of financial position relate to the following categories of assets and
liabilities:
30 September 2020
31 March 2020
Key management personnel are defined as those persons having authority and responsibility for planning, directing
and controlling the activities of the Group, directly or indirectly, and include the directors and the Chief Executive.
Remuneration paid to key management personnel is as follows:
Interim Report September 2020
Page 18

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
14.FINANCIAL INSTRUMENTS (continued)
15. INVESTMENT IN SUBSIDIARIES
Name of subsidiaryPrincipal activity
September
2020
March
2020
Vineyard and winery51%51%
Commodity trading100%100%
National Dairy Group Limited100%100%
51%51%
100%100%
100%100%
16.SEGMENT REPORTING
International marketing and distribution
Vineyard and winery
AFC International Trading Group Limited
AFC Biotechnology Manufacture Co Limited
AFC GoGlobal Education Limited
AFC Education Investment Limited
All the subsidiaries are incorporated in New Zealand and have 31 March balance dates. They also apply uniform
accounting policies with the parent company.
Non-Trading
Non-Trading
The use of financial instruments exposes the Group to credit, interest rate and liquidity risks. The Group's overall risk
management programme seeks to minimise potential adverse effects on the Group's financial performance.
Non-Trading
Manufacturing
Ownership interest and voting
rights
AFC Longview Limited
The operations of this segment were reclassified to Corporate in the 2020 year.
The Group operates in a number of business segments in New Zealand. The Group has determined its operating
segments into four segments, namely international marketing and distribution, vineyard and winery, manufacturing
and corporate. These segments reflect the different type of industry sectors within which the Group operates. The
Company is considered to be in the corporate operating segment. Information regarding the operations of each
reportable operating segment is included below.
The Group's operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker is the person or group that allocates resources to and
assesses the performance of the operating segments on an entity. The Group has determined the Group's Board of
Directors as its chief operating decision-maker as the board is responsible for allocating resources and assessing
the performance of the operating segments and making strategic and operating decisions. Income and expenses
directly associated with each segment are included in determining each segment's performance.
AFC Longview Limited, a vineyard and winery based in Whangarei which produces and sells a number of varietals
and blends of wine.
The fair value of the financial instruments of the Group approximates their carrying value.
Interim Report September 2020
Page 19

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
16.SEGMENT REPORTING (continued)
Manufacturing
AFC Biotechnology Manufacture Co Limited which manufactures disposable face masks.
Corporate
For the six months ended 30 September 2020
Vineyard
and winery Corporate Manufacturing
Eliminations and
adjustments
Period ended 30
September 2020
$$$$$
Operating Income
Revenue from external customers
34,004 6,692 246,886 - 287,582
Inter-segment Revenue17 - 37 (54)-
Other Income
90,767 91,675 76,670
(28,932)230,180
Finance Income-
96,949 7
(96,949)7
Total Revenue124,788 195,316 323,600 (125,935)517,769
Cost of sales56,504 6,108 212,172 (16,625)258,159
Operating Expenses
Interest53,269
28,851 47,456
(96,949)32,627
- 75 - - 75
Depreciation
11,272 10,219 16,666 - 38,157
85,352 132,729 299,465 (11,770)505,776
149,893 171,874 363,587 (108,719)576,635
(81,609) 17,334 (252,159)(591)(317,025)
Amortisation and impairment losses
Total operating expenses
Segment profit/(loss) before tax
The following tables present revenue and profit information for the Group's operating segments for the six months
ended 30 September 2020 and 2019, respectively:
Other expenses
No operating segments have been aggregated to form the above reportable operating segments. The Group's
taxation has not been allocated to segments and is included centrally. Financing has been allocated to segments.
Sales between the segments of the Group are carried out at an arm’s length basis in a similar manner to
transactions with third parties.
The operations of this segment include providing accounting, management and administration services to other
segments of the Group. AFC GoGlobal Ecommerce Limited and AFC Education Investment Limited did not trade
during the period and have been included under this segment. AFC International Trading Group Limited, which
sources packaged food products, cosmetics and health products. National Dairy Group Limited, which sources food
products for distribution for China. National Dairy Group Limited was not trading during the period.
Interim Report September 2020
Page 20

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
16.SEGMENT REPORTING (continued)
For the six months ended 30 September 2019
Vineyard
and winery Corporate Manufacturing
Eliminations and
adjustments
Period ended 30
September 2019
$$$$$
Operating Income

Revenue from external customers
28,622 6,059 704,983 - 739,664
Inter-segment Revenue391 47 (2,677)2,239 -
Other Income
7,460 60,111 1,911
(45,803)23,679
Finance Income4
72,070 85
(71,977)182
Total Revenue36,477 138,287 704,302 (115,541)763,525
Cost of sales25,276 7,325 399,550 (13,994)418,157
Operating Expenses
Interest38,892
20,082 37,370
(71,977)24,367
Amortisation and impairment losses
- 75 - - 75
Depreciation
14,005 12,693 20,194 - 46,892
124,214 64,532 418,226 (29,248)577,724
Total operating expenses
177,111 97,382 475,790 (101,225)649,058
Segment profit/(loss) before tax (165,910) 33,580 (171,038)(322)(303,690)
As at 30 September 2020
Vineyard
and winery Corporate Manufacturing
Eliminations and
adjustments
Period ended 30
September 2018
$$$$$
Assets
Segment assets1,887,594 6,138,189 1,025,870 (5,587,298)3,464,355
Capital Expenditure- - - - -
Segment Liabilities1,454,409 1,189,995 1,427,108 (2,853,298)1,218,214
As at 31 March 2020
Assets
Segment assets1,927,563 6,243,697 1,385,984 (5,553,410)4,003,834
Capital Expenditure2,697 502 980 - 4,179
Segment Liabilities1,412,769 1,312,837 1,535,063 (2,820,001)1,440,668
Other expenses
The following tables present assets and liabilities information for the Group's operating segments as at 30
September 2020 and 31 March 2020, respectively:
The eliminations and adjustments of segment profit, assets and liabilities relate to intercompany transactions and
balances which are eliminated on consolidation.
Interim Report September 2020
Page 21

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2020
17. NET TANGIBLE ASSETS PER SHARE
SeptemberMarch
20202020
$$
Total assets3,464,355 4,003,834
Less right-of-use assets577,698 657,066
Less intangible assets933 1,008
Tangible assets2,885,724 3,345,760
Less total liabilities1,218,214 1,440,668
Add lease liabilities603,568 674,399
Net tangible assets2,271,078 2,579,491
Number of ordinary shares on issue3,664,253,194 3,664,253,194
Net tangible assets / liabilities per share in NZ$0.0006 0.0007
18.CONTINGENT LIABILITIES
The Group has no contingent liabilities at 30 September 2020 (31 March 2020 : Nil)
19.EVENTS AFTER THE REPORTING PERIOD
20.SEASONALITY OF INTERIM OPERATIONS
The vineyard and winery segment harvest it's grapes in the second half of the financial year, and processes the
grapes into bottles in the interim period. This does not affect the sales for the segment.
There are no other significant seasonality or cyclicality of business affecting the interim operations.
There are no significant events after the reporting period.
The net tangible assets and number of shares are as follows:
Interim Report September 2020
Page 22

AFC GROUP HOLDINGS LIMITED
CORPORATE INFORMATION
SOLICITORSAFC GROUP HOLDINGS LIMITED
Buddle Findlay New Zealand LawyersSecurity code: AFC
P O Box 1433Listed on NZX Market
Auckland 1140NZ Company number: 1799581
SHARE REGISTRAR HEAD OFFICE / REGISTERED OFFICE
Computershare Investor Services Limited AFC Group Holdings Limited
Level 2, 159 Hurstmere Road245 Ti Rakau Drive
Private Bag 92-119Burswood
Auckland 1142Auckland 2013
ACCOUNTANTS TELEPHONE
RSM New Zealand (Auckland)64-9-930-0245
PO Box 204276
Level 2, Building 5
62 Highbrook Drive, HighbrookWEBSITE
Auckland 2013www.afcnz.com
AUDITORS
William Buck Audit (NZ) Limited
P O Box 106 090
Level 4, 21 Queen Street
Auckland 1010
BANKERS
ANZ Bank New Zealand Limited
Interim Report September 2020
Page 23

---

Appendix 1
Preliminary Half Year Report

1



PRELIMINARY HALF YEAR REPORT
ANNOUNCEMENT
For Half Year Ended 30 September 2020

(referred to in this report as the "current year")


1.1 Preliminary annual report on results for the period ended 30 September 2020 (including the results for the previous
corresponding year).


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.


2 (a) Statement of financial performance

Refer to unaudited consolidated financial statements


2 (b) Statement of financial position

Refer to unaudited consolidated financial statements


2 (c) Statement of cash flows

Refer to unaudited consolidated financial statements


2 (d) Dividends or distribution payments
Not declared or proposed to pay any dividends or distribution payment for the period ended 30 September 2020.


2 (e) Statement of movements in equity


Refer to unaudited consolidated 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

Refer to directors' report attached


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

Not applicable

Performance trends

Refer to unaudited consolidated financial statements


Issuer’s dividend policy

Not applicable


Result affected by other factors

Refer to unaudited consolidated financial statements


2 (h)
This report is based on unaudited financial statements of AFC Group Holdings Limited and subsidiaries.



September
2020
March
2020
$0.0006
$0.0007
September
2020
March
2020
NZ$

NZ$

-0.00004
-0.00017

-0.00004 -0.00017

---

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 2020. The interim financial statements for the period have not been
audited.

2021 Half Year Summary

The revenue was $288 thousand, gross profit margin 10% and the net loss was $317 thousand for
the six months ended 30 September 2020. Gross profit margin down was due to old stock clearance
at lower price. In addition, the fixed overhead cost could not be utilised due to the two lockdowns
of Covid-19. Debt of $53 thousand was drawn as at 30 September 2020. The net assets were $2,246
thousand, with a 12% down compared to the position as at 31 March 2020. Cash and cash
equivalent were $19 thousand, and property, plant and equipment were NZ$1,691 thousand.


Outlook

AFC Longview Limited (“AFCLV”) actively participated in wine exhibitions, such as the New
Zealand biggest wine event Winetopia. White Diamond wine has been selected as one of the ultra-
premium and prestigious wine in Winetopia. Winery also launched a variety of red and white
wines in Winetopia event and got numerous good reviews from the public. This event has greatly
enhanced the reputation of AFC Longview. In addition, the winery has shifted its international
market to local market and it is running a special promotion for the local community which allow
more locals to enjoy White Diamond wine.

AFC Group participated in the third China International Import Expo (CIIE) at the beginning of
November 2020 and achieved good results in on-site sales and contracted customers. AFC Group
had worked closely with China Anhui Import Food Industrial Park and Skykiwi for live streaming
to introduce all the products through B2B2C global food-ecommerce platform which called
“EFOODLINE”.

This year has seen unprecedented challenges due to Covid-19. The Group will continue to remain
cautious and will diligently managing the impact caused by Covid-19.

---

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 2020
Previous Reporting Period 6 months to 30 September 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$288 (61%)
Total Revenue $288 (61%)
Net profit/(loss) from
continuing operations
($317) 4%
Total net profit/(loss) ($317) 4%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay any dividends for the period ended 30
September 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
0.06 cents 0.09 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 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 26/11/2020

Unaudited financial statements for the six months ended 30 September 2020 accompany this
announcement.