AFC Group Holdings Limited (AFC) Releases Interim Results

AFC GROUP HOLDINGS LIMITED
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED REPORT CONTENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
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 - 24
Corporate Information25

Interim Report September 2021
Page 1

AFC GROUP HOLDINGS LIMITED
QIANG LI
JINGWEI MA
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. 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.
DIRECTORS' PROFILES
YANG XIA BO XIAN CAO
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.
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. 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.
Ms Jingwei Ma was appointed director of AFC
Group Holdings Limited on 29 March 2021. Ms
Jingwei Ma graduated from Japan Aichi University
in 2010, major in International Relations. She is a
visionary entrepreneur who owns a business in the
education sector and operates two female fitness
clubs in Xi’an China. Both of her businesses have
achieved remarkable results. Ms Ma will bring in
her governance expertise and trading channels to
AFC to stimulate the international trade sector.
Interim Report September 2021
Page 2

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
Unaudited Unaudited
6 Months6 Months
Note
September 2021September 2020
$$
Operating Revenue2 111,431 287,582
Cost of Sales(97,590)(258,159)
Gross profit13,841 29,423
Other Income62,228 230,180
Expenses
Selling and Distribution Expenses3 (26,793)(70,128)
Administration Expenses
3 (460,981)(473,880)
(411,705)(284,405)
Finance Income
2 7
Finance Expense
3(39,417)(32,627)
(39,415)(32,620)
Profit / (Loss) before income tax(451,120)(317,025)
Income tax- -
Net profit / (loss) for the period(451,120)(317,025)
Other comprehensive income- -
Total comprehensive income / (loss) for the period(451,120)(317,025)
Equity holders of the parent(245,535)(153,479)
Non-controlling interest(205,585)(163,546)
(451,120)(317,025)
Profit / (loss) per share:
Basic and Diluted Earning per share in NZ$
(0.00007)(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 2021
Page 3

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
Issued
Share
Capital
Accumulated
Loss
Equity
Holders
Non-
Controlling
Interests
Total
$ $ $ $ $
Balance as at 1 April 202028,679,503 (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
Balance as at 1 April 202028,679,503 (26,318,018) 2,361,485 201,681 2,563,166
Comprehensive income
Net loss for the financial year- (632,463) (632,463) (639,388) (1,271,851)
Other comprehensive income- - - - -
Total comprehensive income
- (632,463) (632,463) (639,388) (1,271,851)
Balance as at 31 March 2021 (audited)28,679,503 (26,950,481) 1,729,022 (437,707) 1,291,315
Comprehensive income
Net loss for the financial period- (245,535) (245,535) (205,585) (451,120)
Other comprehensive income- - - - -
Total comprehensive income/(loss)
- (245,535) (245,535) (205,585) (451,120)
Balance as at 30 September 2021 (unaudited)28,679,503 (27,196,016) 1,483,487 (643,292) 840,195
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 2021
Page 4

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
Unaudited Audited
At 30 SeptemberAt 31 March
20212021
Note
$$
SHAREHOLDERS EQUITY
Issued share capital528,679,503 28,679,503
Accumulated losses(27,196,016)(26,950,481)
1,483,487 1,729,022
Non-controlling Interest(643,292)(437,707)
Total shareholders funds 840,195 1,291,315
Represented by:
CURRENT ASSETS
Cash and cash equivalents64,628 3,375
Inventories7541,236 491,874
Trade, other and related party receivables811,467
181,781
Prepayments and other current assets62,189 76,838
Total current assets619,520 753,868
NON-CURRENT ASSETS
Property, plant and equipment
91,462,606 1,488,055
Right-of-use assets
10411,228
494,463
Intangible assets and goodwill
783 858
Total non-current assets1,874,617 1,983,376
Total assets2,494,137 2,737,244
CURRENT LIABILITIES
Trade, other and related party payables 111,155,389 866,581
Lease liabilities10171,120 164,768
Total current liabilities1,326,509 1,031,349
NON-CURRENT LIABILITIES
Borrowings
1253,400 53,400
Lease liabilities10274,033
361,180
Total non-current liabilities327,433 414,580
Total liabilities1,653,942 1,445,929
Net assets 840,195 1,291,315
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 2021
Page 5

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
Unaudited Unaudited
6 Months6 Months
September 2021 September 2020
Note
$$
Cash flows from operating activities
Cash was received from:
Receipts from customers 155,831 412,679
Receipts from related parties139,613 172,832
Interest received2 7
Other receipts62,228 228,074
Cash was applied to:
Payments to suppliers and employees(389,765)(855,777)
Payments to related parties- (216,064)
Interest paid(22,059)(9,416)
Leases interest(17,358)(23,211)
Net cash inflow/(outflow) from operating activities(71,508)(290,876)
Cash flows from investing activities
Cash was received from:
Proceeds from disposal of property, plant and equipment
- -
Cash was applied to:
Purchase of property, plant and equipment9(3,064)-
Net cash outflow from investing activities(3,064)-
Cash flows from financing activities
Cash was received from:
Proceeds from borrowings
- 53,400
Receipts from related parties
162,421 131,240
Cash was applied to:
Payments for lease liabilities principal
(80,795)(74,470)
Net cash inflow/(outflow) from financing activities81,626 110,170
7,054 (180,706)
Foreign currency translation adjustment
(5,801)2,106
Cash and cash equivalents at the beginning of the period
3,375 197,905
Cash and cash equivalents at the end of the period
64,628 19,305
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 2021
Page 6

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
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
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 2021 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 2021.
The interim consolidated financial statements are prepared on a cost basis except for financial assets which are
carried at amortised 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.
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
2021, except for those that relate to new standards and interpretations effective for the first time for periods beginning
on (or after) 1 April 2021 and will be adopted in the 2022 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 2021 have been applied to these Interim Consolidated
Financial Statements.
Interim Report September 2021
Page 7
29/11/2021

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
1.ACCOUNTING POLICIES
1.5Going concern
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
The negative working capital has also been caused by short term finance. Management is confident that the
Group's negative cash flow will be resolved with the expected incoming Christmas and New Year period sales.
The Group has significantly revised its domestic pricing strategy on the core product, White Diamond wine,
which has already led to significantly increasing sales volumes at a positive Gross Margin.
Based on the current lockdowns and restrictions due to covid, the Directors are anticipating sales in FY22 to be
two thirds of the sales in the FY21 year.
In response to the Covid-19 pandemic, the Group has reduced the fixed cost base of the business. This has
been achieved with the continuous reduction in Directors' fees and reduction in staff levels. The space taken at
the Manufacturing facility premises has been reduced and surplus space offered for sub-letting.
There are continued Covid-19 wage subsidies being available from New Zealand Work and Income and
Resurgence Support payments from the Inland Revenue Department.
Detailed budgets for the two operational segments have been prepared which supports the going concern
assumption.
The key estimate in the budgets is the expected level of sales volumes of wine and cosmetic face masks.
In Oct 2021, a contract to sell $180,000 of wine was completed with a related party. 30% deposit received in
advance. This is one of three expected contracts in FY22.
The consolidated financial statements have been prepared on a going concern basis. At 30 September 2021, the
Group has positive equity of $840,195.
The Group has minimal external debt and has negative working capital of ($706,989) at that date. Excluding related
party accounts payable and advances payable, the Group had positive working capital of $108,454. The Group has
suffered reduced sales in FY22 due to the Covid-19 pandemic and has taken steps manage the business accordingly.
The key factors the Directors considered in determining that the Going Concern assumption was appropriate include:
There is minimal external debt and no externally imposed capital requirements.
The Group has significant property at Longview vineyard which includes three residential housing units. This
property is unencumbered. The Directors consider that this property could be utilised to raise debt at low rates
from a major New Zealand bank if liquidity needs required it. They do not forecast that this will be necessary
for the foreseeable future.
Longview Estate has setup an online selling portal function which enables the company to be able to continue
making sales during restrictions imposed by government imposed lockdowns and alert levels. The website
had its first online sales in October 2021 and management believe online sales will increase during the
Christmas and New Year holiday period.
The group expects to meet its obligations for overdue trade payables from the sales of 40’ container of wine
and advances from Directors and Shareholders.
AFC Longview has made a shipment of a 40’ container of Wine to China on 6 November 2021. This shipment
includes over 7000 bottles of Merlot wine and over 3000 bottles of White Diamond wine.
The Group has considerable stocks of Finished Goods which will convert to positive cash inflows when settled
by sale, with little or no cash outflow required.
As disclosed in note 13, there are related party payables of $ 815,443. It has been agreed that payment of
these will be deferred until such time as the group has the liquidity to settle these liabilities.
Interim Report September 2021
Page 8

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
1.ACCOUNTING POLICIES
1.5Going concern (continued)
16
1.6Impact of Covid 19
1
2
3
4
5
6
Despite the government announcing an alert level 4 lockdown in mid August 2021 after one covid community case
was detected, the total number of cases in the current outbreak has risen to 4,666. The containment measures
implemented by the government are limiting the spread of COVID-19 and saving lives. One trade-off from introducing
these measures is the economic cost. The restrictions placed in response to the Covid 19 pandemic have impacted
businesses and the economy. Auckland remained at alert level 4 lockdown until 21 September 2021 at which stage
Auckland moved to alert level 3.
The Group has taken the following steps as part of it's response to mitigate the risks associated with Covid-19.
Sales of cosmetic face masks in New Zealand have been negatively affected by the closure of borders. The
Group has created new distribution channels in China, its primary market for the product. This includes the
China Duty Free Group with which the Group was previously involved in negotiations with to sell significant
volume of boxes of product. Due to the current COVID outbreak continuing to swell in China and the stringent
regulations imposed by authorities in order to reduce the virus’s domestic transmission, China Duty Free Group
has deferred the selection of new products until 2022. The previously expected sales of a significant volume of
products may not be completed in the 2021 year.
AFC Group has been significantly impacted by the three months of lockdown and the travel restrictions between
regions due to the regional borders being closed. The restriction on domestic and international travel and cessation of
non-essential services during the lockdown period have limited the sales and operations of the Group The sale of the
DDMASKs and Longview Wines have reduced as a result. The Group may potentially not be able to achieve
forecasted sales due to the current market conditions and ongoing lockdown until the point at which the financial
statements are signed.
On 8th November 2021, Prime Minister Jacinda Ardern announced that Auckland will move to step 2 of the alert level
3 framework. Under this stepped approach, retail will be able to open in Auckland along with public amenities such as
museums and zoos. The government recently announced the next stage of the covid-19 response plan to provide a
pathway out of lockdown and give vaccinated New Zealanders more freedom. The government have indicated that
Auckland is likely to leave lockdown and move into the new Covid-19 Protection Framework, also known as the traffic
light system from 29th November. Furthermore, the vaccination rates in Auckland have hit 90 percent first dose and
based on current projections, Auckland should reach the 90 per cent double vaccinated milestone by the end of
November. The new system will see most of the economy reopen, with fewer limits for businesses operating under
the new vaccine certificate regime.
AFC Longview Limited and AFC Biotechnology manufacture Co Limited has recently exported an order of a 40’
container of wines and DDMasks to China.
AFC Longview Limited has started its online sales with a campaign for the White Diamond wine.
AFC and its subsidiaries have applied for the wages subsidy and Covid-19 Resurgence support payments.
AFC has received rental relief and deferred payment options by the landlord, insurance company and other
lessors.
AFC has also subleased its showroom and office to third parties in order to recover some of its costs.
The Chairman Mr Xia and director Mr Cao have voluntarily agreed to charge no director fees during the FY22.
Other directors are continuing to provide the group with a 30% reduction in director fees.
Interim Report September 2021
Page 9

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
2.REVENUE
September
2021
September
2020
NZ$NZ$
Operating revenue
Sales - wine products
63,832 34,004
Sales - cosmetic products
46,183 246,886
Sales - other products
1,416 6,692
Total operating revenue
111,431 287,582
Other Income
8,011 23,530
Rental Income
7,280 11,560
Covid-19 wage subsidy
46,937 195,090
Total Other Income
62,228 230,180
Total Income
173,659 517,762
3.EXPENSES
September
2021
September
2020
Note
NZ$NZ$
Included in Selling and Distribution Expenses
Business Events 9,644 180
Freight and Courier2,370 2,262
Salaries and Sales Commission 14,580 66,147
Included in Administration Expenses
Accounting and Consulting
11,400 (6,600)
Audit Fees
31,510 31,743
Depreciation for property, plant and equipment
28,513 38,156
Depreciation transferred to indirect manufacturing costs
(21,372)(25,250)
Depreciation for right-of-use assets
83,235 83,008
Directors Fees
9,333 30,555
Management Fees
15,000 15,000
Insurance
10,741 18,076
Salaries300,848 327,436
Salaries capitalised to cost of inventory (71,583)(115,829)
NZX costs
12,639 10,228
Subscriptions8,337 5,502
Finance costs:
Interest paid on borrowings from related parties
13
21,840 9,416
10
17,358 23,211
Other interest paid
219
-
39,417 32,627
Lease interest
Profit / (Loss) before income tax has been determined after
charging:
Interim Report September 2021
Page 10

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
4. INCOME TAX
5.AUTHORISED AND ISSUED SHARE CAPITAL
Shares Issued
Ordinary Shares
No.$
Balance at 1 April 2020
Ordinary shares on issue
3,664,253,194 28,679,577
Treasury shares
(37,082)(74)
Ordinary shares on issue at 1 April 2020 excluding treasury shares
3,664,216,112 28,679,503
Movement for 2021 financial year
Ordinary shares authorised and issued
- -
Ordinary shares on issue at 31 March 2021
3,664,216,112 28,679,503
Movement to 30 September 2021
Ordinary shares authorised and issued
- -
Ordinary shares on issue at 30 September 2021 excluding treasury shares
3,664,216,112 28,679,503
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 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 2020: 28%).
The Group has tax losses of $4,127,204 bought forward from 31March 2021. 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 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 paidordinary 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 2021 (September
2020: Nil).
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.
Interim Report September 2021
Page 11

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
6.CASH AND CASH EQUIVALENTS
SeptemberMarch
20212021
$$
Cash at bank and on hand4,628 3,375
Total cash and cash equivalents
4,628 3,375
7.INVENTORIES
SeptemberMarch
20212021
$$
Work in progress
46,275 131,934
Finished goods
758,467 695,749
Provision for inventory
(263,506)(335,809)
Total Inventories
541,236 491,874
Provision of closing stock
Opening provision of closing stock
(335,809)(162,793)
Reversal of opening provision for inventory
72,303 -
Charged to profit and loss
- (173,016)
Closing provision for closing stock
(263,506)(335,809)
Management is confident that the Group's cash flow will be improved with the expected incoming Christmas and New
Year period sales. The wine sales have been increasing afterthe level 4 lockdown. Management believe that sales
will increase once Auckland and Northland exit out of the alert level three government imposed lockdown. In addition,
the AFC Longview website has it's first online sales in October 2021 and management believe online sales will
increase during the holiday period.
Inventory of $263,506 has been written down to net realisable value/lower of cost (31 March 2021: $335,809).
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.
The carrying amount of cash and cash equivalents approximates their fair value. Cash at bank earns interest at
floating rates on daily deposit balances. The group did not have an overdraft facility with the bank.
Interim Report September 2021
Page 12

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
8.
TRADE, OTHER AND RELATED PARTY RECEIVABLES
SeptemberMarch
20212021
Note
$$
Trade receivables - third parties9,549 53,949
Trade receivables - related parties
13
2,100 128,014
11,649 181,963
Allowance for impairment losses(182)(182)
Total trade and related party receivables
11,467 181,781
SeptemberMarch
20212021
Movement in the allowance for impairment losses
$$
Opening Balance 1 April
182 458
Reversal of prior year provision
- (458)
Charge for the financial year
- 182
Closing Balance 30 September/31 March
182 182
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.
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.
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 13.
Interim Report September 2021
Page 13

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
9.
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 2021
Cost
Cost as at 1 April 2020
320,000 905,199 50,000 438,190 98,744 30,754 202,071 80,000
2,124,958
Additions - - - - - - - - -
Impairment- - - (116,082)- - (45,251)- (161,333)
Disposal- - - - (26,484) (1,999)- - (28,483)
Written off- - - - (791)- - - (791)
Cost as at 31 March 2021
320,000 905,199 50,000 322,108 71,469 28,755 156,820 80,000
1,934,351
Accumulated Depreciation
- (8,013)- (184,776) (70,412) (24,959) (85,670) (21,433)(395,263)
- (2,805)- (39,618) (6,635) (2,502) (17,746) (4,393)(73,699)
Disposal
- - - - 21,458 1,208 - - 22,666
Written off- - - - - - - - -
- (10,818)- (224,394) (55,589) (26,253) (103,416) (25,826)
(446,296)
Carrying Amount
Cost
320,000 905,199 50,000 322,108 71,469 28,755 156,820 80,000
1,934,351
- (10,818)- (224,394) (55,589) (26,253) (103,416) (25,826)(446,296)
320,000 894,381 50,000 97,714 15,880 2,502 53,404 54,174
1,488,055
As at 30 September 2021
Cost
Cost as at 1 April 2021
320,000 905,199 50,000 322,108 71,469 28,755 156,820 80,000
1,934,351
Additions - - - - - 3,064 - - 3,064
Impairment- - - - - - - - -
Disposal- - - - - - - - -
Written off- - - - - - - -
Cost as at 30 September 2021
320,000 905,199 50,000 322,108 71,469 31,819 156,820 80,000
1,937,415
Accumulated Depreciation
- (10,818)- (224,394) (55,589) (26,253) (103,416) (25,826)(446,296)
- (1,282)- (15,489) (944)(753) (8,012) (2,032)(28,513)
Written off- - - - - - - -
-
- (12,100)- (239,883) (56,533) (27,006) (111,428) (27,858)
(474,809)
Carrying Amount
Cost
320,000 905,199 50,000 322,108 71,469 31,819 156,820 80,000
1,937,415
- (12,100)- (239,883) (56,533) (27,006) (111,428) (27,858)
(474,809)
320,000 893,099 50,000 82,225 14,936 4,813 45,392 52,142 1,462,606
Accumulated Depreciation at 1
April 2021
Depreciation charge for the
period
Accumulated Depreciation at
30 September 2021
Accumulated Depreciation
Carrying Amount 30
September 2021
Accumulated Depreciation at 1
April 2020
Depreciation charge for the year
Accumulated Depreciation at
31 March 2021
Accumulated Depreciation
Carrying Amount 31 March
2021
Interim Report September 2021
Page 14

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
10.RIGHT-OF-USE ASSETS
10.1Right-of-use assets
BuildingsForkliftTotal
At 1 April 2020
644,192 12,874 657,066
Depreciation
(161,415)(4,828)(166,243)
Increase in rent modification
3,640 - 3,640
At 31 March 2021
486,417 8,046 494,463
At 1 April 2021
486,417 8,046 494,463
Depreciation
(80,821)(2,414)(83,235)
Increase in rent modification
- - -
At 30 September 2021
405,596 5,632 411,228
10.2
Lease liabilities
BuildingsForkliftTotal
At 1 April 2020
661,236 13,163 674,399
Lease interest
42,306 1,439 43,745
Lease payments
(190,005)(5,832)(195,837)
Increase in rent modification
3,641 - 3,641
At 31 March 2021
517,178 8,770 525,948
Lease liabilities
Current lease liabilities
159,723 5,045 164,768
Non-current lease liabilities
357,455 3,725 361,180
Total lease liabilities
517,178 8,770 525,948
At 1 April 2021
517,178 8,770 525,948
Lease interest
16,883 475 17,358
Lease payments
(95,238)(2,916)(98,154)
Increase in rent modification
- - -
At 30 September 2021
438,823 6,329 445,152
Lease liabilities
Current lease liabilities
165,748 5,371 171,120
Non-current lease liabilities
273,075 958 274,033
Total lease liabilities
438,823 6,329 445,152
The group leases two properties in the New Zealand. The periodic rent is fixed over the lease term for both the
property leases.
31 March 2021
30 September 2021
31 March 2021
30 September 2021
Interim Report September 2021
Page 15

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
11.TRADE, OTHER AND RELATED PARTY PAYABLES
SeptemberMarch
20212021
Note$$
Trade payables
153,148 100,165
Accruals
85,701 121,123
Related party payables
13 815,443 639,323
Other payables
101,097 5,970
1,155,389 866,581
12.BORROWINGS
SeptemberMarch
20212021
$$
Small business cashflow loan
53,400 53,400
53,400 53,400
Non-current
Between one and two years
53,400 53,400
53,400 53,400
13.RELATED PARTIES
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.
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.
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.
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.
Interim Report September 2021
Page 16

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
13.RELATED PARTIES (continued)
Related Parties:
Related party balances
The following balances were held with related parties at period/year end.
SeptemberMarch
20212021
Related Party Receivables
$$
- 125,914
2,100 2,100
2,100 128,014
Director of company and subsidiary
E Way Holdings Group Limited
Company associated with director, Mr Bo Xian Cao
Federation of New Zealand Shenzhen Societies
Inc.
Company associated with director, Mr Bo Xian Cao
Director of company
Tongqu Trading Group Limited
Company associated with director, Mr Zilei Wang
Yang Xia
Director of company and subsidiary
Guangdong Farmside International Trading Co. Limited
Company associated to company's major shareholder, Mr Yang Xia
Mingbao Zhang
Shareholder of company
New Zealand Fantasy Angel Biotechnology Limited
Company associated with director, Mr Bo Xian Cao
Company associated to company's major shareholder, Mr Yang Xia
Howard & Co Consulting and Advisory Services Limited
Company associated with subsidiary director, Mr Hao Long
Huai Ji Zhou
Shareholder of company
Lei Chen
Shareholder of company
Lin Fang
New Zealand Guangdong General Association of Commerce Inc
Company associated with director, Mr Bo Xian Cao
New Zealand National Trade Limited
Company associated with director, Mr Qiang Li
NZ Silveray Group Limited
Company's major shareholder
Qiang Li
Zilei Wang
Director of company
Nature of Transactions
Sale of products Guangdong Farmside InternationalTrading Co.
Limited
Shareholder of company
Hefei Ge Lun Bu E-commerce Co., LtdSale of products
Anhui Asin International Trade Co. Ltd
Company associated to company's major shareholder, Mr Yang Xia
Australasian International Group Limited
Company associated to company's major shareholder, Mr Yang Xia
Bo Xian Cao
Hao Long
Director of subsidiary, senior employee of AFC, shareholder of
company
Hefei Ge Lun Bu E-commerce Co., Ltd
Interim Report September 2021
Page 17

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
13.RELATED PARTIES (continued)
SeptemberMarch
20212021
Related Party Payables
$$
Anhui Asin International Co. Ltd
50,292 49,790
Anhui Asin International Co. LtdPurchase of goods
34,475 33,362
Australasian International Group Limited Purchase of goods102,745 99,429
4,696 4,025
96,611 25,112
26,802 26,313
32,592 25,381
12,075 6,038
NZ Silveray Group Limited38,372 38,372
NZ Silveray Group Limited409,405 326,806
Tongqu Trading Group Limited7,379 4,696
815,443 639,323
SeptemberMarch
20212021
Related party transactions
$$
Sales of products or services provided to the following:
E Way Holdings Group Limited
3,099 2,940
Federation of New Zealand Shenzhen Societies Inc.
- 122
Guangdong Farmside International Trading Co., Ltd (sales of products)
1,660 234,836
Hefei Ge Lun Bu E-commerce Co., Ltd
- 2,100
New Zealand Fantasy Angel Biotechnology Limited
- 142
New Zealand Guangdong General Association of Commerce Inc.
- 783
4,759 240,922
Expenses repaid/recharged on behalf of the Group:
Anhui Asin International Trade Co. Ltd- 49,285
Guangdong Farmside International Trading Co. Limited
- 29,458
- 78,743
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.
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
Advances
E Way Holdings Group Limited
Director feeNew Zealand National Trade Limited
Advances
GuangdongFarmsideInternationalTradingCo.
Limited
Management fees
Director fee
E Way Holdings Group Limited
Advance
Hao LongAdvance
Director fee
Purchaseofgoodsand
services
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.
Interim Report September 2021
Page 18

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
13.RELATED PARTIES (continued)
SeptemberMarch
20212021
Related party transactions
$$
- 57,474
583 7,105
15,000 30,000
5,250 10,500
- 36,400
Tongqu Trading Group Limited3,500 7,000
24,333 148,479
Interest paid or credited on related party balances:
E Way Holdings Group Limited
3,499 112
Hao Long
742 381
NZ Silveray Group Limited - on advances
17,598 24,982
21,840 25,475
Key Management Personnel
September March
20212021
$$
Salaries and other short-term benefits
93,843 230,891
Directors' fees
9,042 35,052
102,884
265,943
14.COMMITMENTS AND CONTINGENCIES
The Group has no capital commitments at 30 September 2021 (31 March 2021: Nil)
15.FINANCIAL INSTRUMENTS
E Way Holdings Group Limited
Howard & Co Consulting and Advisory Services Limited (Note 3)
New Zealand National Trade Limited
NZ Silveray Group Limited
Purchases from the following for services or products provided:
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:
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:
Anhui Asin International Trade Co. Ltd
Interim Report September 2021
Page 19

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
15.FINANCIAL INSTRUMENTS (continued)
Financial
assets at
amortised
cost
Financial
liabilities at
amortised cost
Total
NZ$NZ$NZ$
30 September 2021
Financial Assets:
Cash and cash equivalents- - -
Trade and related party receivables11,467 - 11,467
Total financial assets11,467 - 11,467
Financial liabilities:
Cash and cash equivalents6,889 - 6,889
Trade and other payables
-
1,143,872 1,143,872
Borrowings
-
53,400 53,400
Lease liabilities
-
445,153 445,153
Total financial liabilities6,889 1,642,425 1,649,314
31 March 2021
Financial Assets:
Cash and cash equivalents3,375 - 3,375
Trade and related party receivables181,781 - 181,781
Total financial assets185,156 - 185,156
Financial liabilities:
Trade and other payables
-
856,838 856,838
Borrowings
-
53,400 53,400
Lease liabilities
-
525,948 525,948
Total financial liabilities- 1,436,186 1,436,186
16. INVESTMENT IN SUBSIDIARIES
Name of subsidiaryPrincipal activity
September
2021
March
2021
Vineyard and winery51%51%
Commodity trading100%100%
National Dairy Group Limited100%100%
51%51%
100%100%
100%100%
Ownership interest and voting
rights
AFC Longview Limited
AFC International Trading Group Limited
Non-Trading
AFC Biotechnology Manufacture Co Limited Manufacturing
AFC GoGlobal Education Limited Non-Trading
AFC Education Investment Limited Non-Trading
The fair value of the financial instruments of the Group approximates their carrying value. 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.
Interim Report September 2021
Page 20

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
16. INVESTMENT IN SUBSIDIARIES (continued)
17.SEGMENT REPORTING
Vineyard and winery
Manufacturing
AFC Biotechnology Manufacture Co Limited which manufactures disposable face masks.
Corporate
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.
The following tables present revenue and profit information for the Group's operating segments for the six months
ended 30 September 2021 and 2020, respectively:
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.
AFC Longview Limited, a vineyard and winery based in Whangarei which produces and sells a number of varietals and
blends of wine.
All the subsidiaries are incorporated in New Zealand and have 31 March balance dates. They also apply uniform
accounting policies with the parent company.
Interim Report September 2021
Page 21

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
17.SEGMENT REPORTING (continued)
Vineyard
and winery Corporate Manufacturing
Eliminations and
adjustments
Period ended 30
September 2021
$$$$$
For the six months ended 30 September 2021
Operating Income
Revenue from external customers
65,248 - 46,183 - 111,431
Inter-segment Revenue- - - - -
Other Income
25,626 278,211 7,421
(249,030)62,228
Finance Income-
126,997 1
(126,996)2
Total Revenue90,874 405,208 53,605 (376,026)173,661
Cost of sales16,232 44 87,735 (6,421)97,590
Operating Expenses
Interest65,279
37,396 63,738
(126,996)39,417
- 75 - - 75
Depreciation
8,924 5,592 13,997 - 28,513
120,950 393,658 187,187 (242,609)459,186
195,153 436,721 264,922 (369,605)527,191
(120,511)(31,557)(299,052)- (451,120)
For the six months 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
- 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
Segment profit/(loss) before tax
Total operating expenses
Amortisation and impairment losses
Other expenses
Other expenses
Interim Report September 2021
Page 22

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
17.SEGMENT REPORTING (continued)
Vineyard
and winery Corporate Manufacturing
Eliminations and
adjustments Total
$$$$$
As at 30 September 2021
Segment assets1,851,670 6,510,846 274,264 (6,147,271)2,489,509
Capital Expenditure1,238 1,826 - - 3,064
Segment Liabilities1,784,811 1,577,927 1,699,847 (3,413,271)1,649,314
As at 31 March 2021
Segment assets1,776,601 6,385,665 533,487 (5,958,509)2,737,244
Capital Expenditure- - - - -
Segment Liabilities1,589,229 1,421,192 1,660,017 (3,224,509)1,445,929
18. NET TANGIBLE ASSETS PER SHARE
SeptemberMarch
20212021
$$
Total assets2,482,620 2,737,244
Less right-of-use assets411,228 494,463
Less intangible assets783 858
Tangible assets2,070,609 2,241,923
Less total liabilities1,642,425 1,445,929
Add lease liabilities445,153 525,948
Net tangible assets873,337 1,321,942
Number of ordinary shares on issue3,664,253,194 3,664,253,194
Net tangible assets / liabilities per share in NZ$0.0002 0.0004
The net tangible assets and number of shares are as follows:
The following tables present assets and liabilities information for the Group's operating segments as at 30 September
2021 and 31 March 2021, 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 2021
Page 23

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
19.CONTINGENT LIABILITIES
The Group has no contingent liabilities at 30 September 2021 (31 March 2021 : Nil)
20.EVENTS AFTER THE REPORTING PERIOD
21.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 other significant events after the reporting period.
AFC Longview has made a shipment of a 40’ container of Wine to China on 6 November 2021. This shipment
includes over 7000 bottles of Merlot wine and over 3000 bottles of White Diamond wine.
Wine sales are increasing after the level 4 lockdown imposed by the government. AFC Longview's website has had its
first online sales in October 2021 and management believe online sales will increase during the Christmas and New
Year holiday period.
Interim Report September 2021
Page 24

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 2013
www.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 2021
Page 25

---

Results announcement
Results for announcement to the market
Name of issuer AFC Group Holdings Limited
Reporting Period 6 months to 30 September 2021
Previous Reporting Period 6 months to 30 September 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$111 (61%)
Total Revenue $111 (61%)
Net profit/(loss) from
continuing operations
($412)
45%
Total net profit/(loss) ($451) 42%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay any dividends for the period ended 30
September 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
$0.00023834 $0.00061979
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 2021.
Authority for this announcement
Name of person

authorised
to make this announcement
Howard Long
Contact person for this
announcement
Contact phone number +64 9 9300 245
Contact email address Howard.long@afcnz.com
Date of release through MAP 29/11/2021
Unaudited financial statements for the six months ended 30 September 2021 accompany
this announcement.
Howard Long

---

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

AFC Group Holdings Limited (AFC) Releases Interim Results

AFC Group Holdings Limited (AFC Group) reports its financial results for the six
months ended 30 September 2021. The interim financial statements for the period have
not been audited.

2021 Half Year Summary

The net assets of AFC Group were NZ$840 thousand, with a 63% down from the half-
year position as at 30 September 2020. The decrease was mainly due to the impairment
of stock and fixed assets resulting from COVID-19. Property, plant, and equipment
were NZ$1,463 thousand. Investment in PPE was on hold considering significant
economic uncertainty. Total revenue was NZ$111 thousand for the six months ended 30
September 2021, a decline of 61% compared to the previous corresponding period due
to the lockdown from August 2021. Ongoing pressure from COVID-19 containment
measures impacted the results, and the net loss for the period was NZ$451 thousand.

Outlook

In the first half of the financial year 2022, AFC encountered continuous challenges due
to COVID-19 spread, NZ border closure and the slow recovery of overseas sales.
However, AFC has developed a list of actions to get through the current difficult
situation, to enable future revenue growth and return value to our shareholders:

AFC Longview Limited ("AFCLV" and "Longview Estate")

1. With an updated pricing strategy on the core product (White Diamond wine) and
marketing campaigns were launching, AFCLV intends to allow more customers to gain
access to our products. In Oct 2021, a new sales contract of $180,000 of wine was
signed, and other sales contracts are under negotiation.

2. Longview Estate will continue to participate in different wine exhibitions, such as
Winetopia and NZWINE Roadshows, to increase brand awareness and promote sales.

3. AFCLV has significant unencumbered property at Longview Vineyard, including
three residential housing units to back up debt raised at the low-interest rate if liquidity
requires it. It is not forecast that this will be necessary for the foreseeable future.

AFC Biotechnology Manufacture Co Ltd ("AFC")

1. New distribution channels in China were created for the sales of cosmetic face masks.
Sales contracts with significant volume are in advanced negotiations. It is believed
that the considerable stocks of Finished Goods will be converted to positive cash
inflows with little or no cash outflow required.

2. The relief of Covid-19 containment measures (such as the movement from level 4 to
level 3) is a good sign for New Zealand domestic 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 has reduced the fixed cost base by continuously reducing directors' fees and
staff levels and optimal allocation of resources. The space taken at the manufacturing
facility premises has been adjusted flexibly and surplus space offered for sub-letting.

3. AFC actively participates in product exhibitions and expands online and offline
product distribution channels in China to enhance brand awareness and promote sales.

Overall, AFC Group has made a qualitative leap on brand building and publicity. We
shall expect to improve the revenue in the next half.


On behalf of the Board of Directors


Hao Long
CFO
AFC Group Holdings Limited