Preliminary Announcement of AFC Group Holdings Limited

AFC GROUP HOLDINGS LIMITED
Results announcement



Results for announcement to the market
Name of issuer AFC Group Holdings Limited
Reporting Period 12 months to 31 March 2022
Previous Reporting Period 12 months to 31 March 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$415 (36%)
Total Revenue $415 (36%)
Net profit/(loss) from
continuing operations
($736) (42%)
Total net profit/(loss) ($736) (42%)
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay any dividends for the year ended 31
March 2022
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
0.0002 cents 0.0004 cents
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
This results announcement should be read in conjunction with
the unaudited consolidated financial statements for the year
ended 31 March 2022.
Authority for this announcement
Name of person authorised
to make this announcement
Hao Long
Contact person for this
announcement
Hao Long, CFO
Contact phone number +64 9 9300 245
Contact email address Howard.long@afcnz.com
Date of release through MAP 30/05/2022

Unaudited financial statements for the year ended 31 March 2022 accompany this
announcement.

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AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
20222021
NZ$ NZ$
Operating Revenue415,023 646,910
Cost of Sales(383,971)(894,258)
Gross profit31,052 (247,348)
Other Income245,622 307,144
Expenses
Selling and Distribution Expenses(45,019)(156,023)
Administration Expenses(886,157)(1,106,571)
Reversal/(Impairment loss) on trade receivables(176)276
(654,678)(1,202,522)
Finance Income
2 8
Finance Expense
(87,663)(69,337)
Impairment on Property, Plant and Equipment(27,591)-
Gain on Lease Modifications31,506 -
(83,746)(69,329)
Loss before income tax(738,424)(1,271,851)
Income tax expenses- -
Loss for the year(738,424)(1,271,851)
Other comprehensive income
- -
Total comprehensive loss for the year(738,424)(1,271,851)
Loss and total comprehensive loss attributable to:
Equity holders of the parent(396,698)(632,463)
Non-controlling interest(341,726)(639,388)
(738,424)(1,271,851)
Loss per share:
Basic and Diluted Earning per share in NZ$
(0.00011)(0.00017)
Operating loss
AFC Group Holdings Limited Annual Report 2022
Page 1
Unaudited

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
Issued
Share
Capital
Accumulated
Losses
Equity
Holders of
the Parent
Non-
Controlling
Interests
Total
NZ$ NZ$ NZ$ NZ$ NZ$
Balance as at 1 April 202028,679,503 (26,318,018) 2,361,485 201,681 2,563,166
Net loss for the financial year-(632,463) (632,463) (639,388) (1,271,851)
Other comprehensive income-----
Total comprehensive loss
-(632,463) (632,463) (639,388) (1,271,851)
Balance as at 31 March 202128,679,503 (26,950,481) 1,729,022 (437,707) 1,291,315
Net loss for the financial year-(396,698) (396,698) (341,726) (738,424)
Other comprehensive income-----
Total comprehensive loss
-(396,698) (396,698) (341,726) (738,424)
Balance as at 31 March 202228,679,503 (27,347,179) 1,332,324 (779,433) 552,891
AFC Group Holdings Limited Annual Report 2022
Page 2
Unaudited

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
20222021
NZ$ NZ$
28,679,503 28,679,503
(27,347,179) (26,950,481)
1,332,324 1,729,022
(779,433)(437,707)
552,891 1,291,315
14,451 3,375
8,943 181,781
352,162 491,874
49,005 76,838
424,561 753,868
1,431,195 1,488,055
9,553 494,463
708 858
1,441,456 1,983,376
1,866,017 2,737,244
1,248,492 866,581
11,234 164,768
1,259,726 1,031,349
53,400 53,400
361,180
53,400 414,580
1,313,126 1,445,929
552,891 1,291,315
SHAREHOLDERS EQUITY
Issued share capital
Accumulated losses
Total Equity attributable to shareholders of the company
Non-controlling Interest
Total shareholders funds
Represented by:
CURRENT ASSETS
Cash and cash equivalents
Trade, other and related party receivables
Inventories
Prepayments and other current assets
Total current assets
NON-CURRENT ASSETS
Property, plant and equipment
Right-of-use assets
Intangible assets
Total non-current assets
Total assets
CURRENT LIABILITIES
Trade, other and related party payables
Lease liabilities
Total current liabilities
NON-CURRENT LIABILITIES
Borrowings
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
AFC Group Holdings Limited Annual Report 2022
Page 3
Unaudited

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
20222021
NZ$ NZ$
Cash flows from operating activities
Cash was received from:
Receipts from customers 461,947 766,310
Receipts from related parties142,533 238,279
Interest received2 8
Other receipts251,757 300,216
Cash was applied to:
Payments to suppliers and employees(894,403) (1,463,836)
Payments to related parties- -
Interest paid(56,122)(25,592)
Lease interest(31,541)(43,745)
Net cash outflow from operating activities(125,827)(228,360)
Cash flows from investing activities
Cash was received from:
Proceeds from disposal of property, plant and equipment
-
1,739
Cash was applied to:
Purchase of property, plant and equipment(4,403)-
Net cash inflow/(outflow) from investing activities(4,403)1,739
Cash flows from financing activities
Cash was received from:
Proceeds from borrowings- 53,400
Received from related parties312,210 123,853
Cash was applied to:
Payments for lease liabilities principal
(164,769)(152,090)
Net cash inflow from financing activities147,441 25,163
17,211 (201,458)
Foreign currency translation adjustment
(6,135)6,928
Cash and cash equivalents at the beginning of the year
3,375 197,905
Cash and cash equivalents at the end of the year
14,451 3,375
Net decrease in cash and cash equivalents
AFC Group Holdings Limited Annual Report 2022
Page 4
Unaudited

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AFC GROUP HOLDINGS LIMITED
(Listed on the NZX: AFC)
Suite A, Level 15, Tower 2, 205 Queen Street
Auckland CBD
Auckland
Ph: +64 (09) 930-0245

Preliminary Announcement of AFC Group Holdings Limited
Unaudited Financial Results Summary
The financial statements of AFC Group Holdings Limited (“AFC Group”) are still
in the process of being audited for the year ended 31 March 2022, and the
company is not aware of any likely qualification. The Company’s dividend policy
is not to pay dividends, and the company is accordingly not proposing to pay
any dividends for the period ended 31 March 2022. The Group reports an
unaudited net loss attributable to shareholders of $0.74 million for the year. This
compares with a net loss attributable to shareholders of $1.27 million for the
previous year. The loss for the year was mainly due to reduced sales affected
by COVID-19 and the border closures. Salaries and depreciation of AFC Group
and its subsidiaries comprised the majority of unaudited Administration
expenses in 2022 financial statements.
For the year ended 31 March 2022, the net assets were NZ$0.56 million, cash
and cash equivalent products were NZ$ 0.01 million, and fixed assets were
NZ$1.87 million. The annual sales revenue for the year ended 31 March 2021
was NZ$0.42 million. The market capitalisation value was NZ$3.66 million.
Please refer to the attached Unaudited Annual Results Announcement for the
detailed results.

Outlook
In the 2022 financial year, AFC Group was aware of how uncertain the future
was. With the COVID-19 spread, NZ border closure and the slow recovery of
overseas sales, AFC Group faced some challenges. However, the Group has
developed a list of actions to get through the current difficult situation, enable
future revenue growth and return value to our shareholders:
AFC Longview Limited (“AFCLV” and “Longview Estate”)
1. AFCLV continues to maintain its pricing strategy, allowing more people
to gain access to the White Diamond Wine. AFCLV will launch a series
of marketing campaigns to increase New Zealand's domestic market
sales.
2. Longview Estate actively participated in different wine exhibitions, such
as Winetopia and NZ WINE Roadshows, to promote brand awareness
and increase sales.
3. AFCLV is committed to developing export markets by launching
marketing campaigns and increasing online sales channels in China.
4. Longview Estate has cut costs, such as better work schedules,
organisation and people management.
5. AFCLV had around $0.588 millions of sales in April 2022.
AFC Biotechnology Manufacture Co Ltd (“AFCBIO”)
1. AFCBIO has temporally ceased its production and outsourced its
inventory storage to a third party. This will cut down the rental cost of the
warehouse and other ancillary costs, such as electricity and monitoring
fees.
2. AFCBIO will increase the use of online distribution channels in the 2023
fiscal year, which includes continuously using Shoppertainment to
promote masks, Jingdong, Wei Pin Hui and Staff Live Stream on Tmall.

3. The re-opening of borders will bring more customers to New Zealand
domestic market. AFCBIO will take this opportunity to work with its
distributors to increase sales. However, the management cannot predict
sales trends after the border re-opening.
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 cut down its rent costs by renting a lower-cost office.
3. AFC attended the 4th China International Import Expo (CIIE) to promote
the group and products.
4. AFC continues to help and provide more opportunities for New Zealand
small and medium enterprises to enter the Chinese market. AFC Group
has actively participated in the China (Anhui) 5G International Food City
and the "EFOODLINE" global e-commerce platform.
On behalf of the Directors of AFC, the Company extends its thanks to the
shareholders for their support of the Company.
Annual Report and Annual Meeting
AFC expect to release our Annual Report before the end of June, and we are
planning to hold our Annual Meeting in early September 2022.
On behalf of the Board of Directors.


HAO LONG
CFO
30/05/2022

For Further Information
Please contact Mr Howard Long

howard.long@afcnz.com
+64- 21- 244-8000