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 2022

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED REPORT CONTENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
Page
Financial Statements
Interim Consolidated Statement of Comprehensive Income 3
Interim Consolidated Statement of Financial Position 4
Interim Consolidated Statement of Changes in Equity 5
Interim Consolidated Statement of Cash Flows6
Notes to the Interim Consolidated Financial Statements 7 - 21
Corporate Information22

Interim Report September 2022
Page 2

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
Unaudited Unaudited
6 Months6 Months
September 2022September 2021
$$
Operating Revenue671,308 111,431
Cost of Sales(113,447)(97,590)
Gross profit557,861 13,841
Other Income10,576 62,228
Expenses
Selling and Distribution Expenses(53,927)(26,793)
Administration Expenses(422,855)(460,981)
91,655 (411,705)
Finance Income
5 2
Finance Expense
(26,424)(39,417)
(26,419)(39,415)
Profit / (Loss) before income tax65,236 (451,120)
Income tax-
Net profit / (loss) for the period65,236 (451,120)
Other comprehensive income-
Total comprehensive income / (loss) for the period65,236 (451,120)
Equity holders of the parent
(14,701)(245,535)
Non-controlling interest
79,862 (205,585)
65,161 (451,120)
Profit / (loss) per share:
Basic and Diluted Earning per share in NZ$
(0.00000401)(0.00006701)
Operating profit / (loss)
Profit/(loss) and Total Comprehensive Income/(Loss)
Attributable to:
Theinterimfinancialstatementsaretobereadinconjunctionwiththenotestothefinancialstatementssetouton
pages 7 to 21.
Interim Report September 2022
Page 3

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
At 30 SeptemberAt 31 March
20222022
Note
$$
SHAREHOLDERS EQUITY
Issued share capital628,679,503 28,679,503
Accumulated losses(27,375,401)(27,360,700)
1,304,102 1,318,803
Non-controlling Interest(686,051)(765,913)
Total shareholders funds 618,051 552,890
Represented by:
CURRENT ASSETS
Cash and cash equivalents71,648 14,451
Inventories8378,852 352,162
Trade, other and related party receivables913,146 8,943
Prepayments and other current assets97,434 49,005
Total current assets491,080 424,561
NON-CURRENT ASSETS
Property, plant and equipment
101,405,015 1,431,194
Right-of-use assets
11102,978 9,553
Intangible assets and goodwill
12633 708
Total non-current assets1,508,626 1,441,455
Total assets1,999,706 1,866,016
CURRENT LIABILITIES
Trade, other and related party payables 131,187,762 1,248,492
Lease liabilities1135,994 11,234
Total current liabilities1,223,756 1,259,726
NON-CURRENT LIABILITIES
Borrowings
1482,400 53,400
Lease liabilities1175,499 -
Total non-current liabilities157,899 53,400
Total liabilities1,381,655 1,313,126
Net assets 618,051 552,890
Total Equity attributable to shareholders
of the company
Theinterimfinancialstatementsaretobereadinconjunctionwiththenotestothefinancialstatementsset
out on pages 7 to 21.
Interim Report September 2022
Page 4

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
Issued Share
Capital
Accumulated
Loss
Equity
Holders
Non-
Controlling
Interests
Total
$ $ $ $ $
Balance as at 1 April 2021
28,679,503 (26,950,481) 1,729,022 (437,707) 1,291,315
Comprehensive income
Net loss for the financial year- (410,219) (410,219) (328,206) (738,425)
Other comprehensive income- - - - -
Total comprehensive income
- (410,219) (410,219) (328,206) (738,425)
Balance as at 31 March 2022(audited)28,679,503 (27,360,700) 1,318,803 (765,913) 552,890
Comprehensive income
Net loss for the financial period- (14,701) (14,701) 79,862 65,161
Other comprehensive income- - - - -
Total comprehensive income/(loss)
- (14,701) (14,701) 79,862 65,161
Balance as at 30 September 2022 (unaudited)28,679,503 (27,375,401) 1,304,102 (686,051) 618,051
The interim financial statements are to be read in conjunction with the notes to the financial statements set out on pages 7 to 21.
Interim Report September 2022
Page 5

AFC GROUP HOLDINGS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
Unaudited Unaudited
6 Months6 Months
September 2022 September 2021
Note
$$
Cash flows from operating activities
Cash was received from:
Receipts from customers 75,758 155,831
Receipts from related parties591,347 139,613
Interest received5 2
Other receipts30,371 62,228
Cash was applied to:
Payments to suppliers and employees(545,288)(389,765)
Payments to related parties(56,854)-
Interest paid(20,604)(22,059)
Leases interest(5,820)(17,358)
Net cash inflow/(outflow) from operating activities68,915 (71,508)
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 equipment10- (3,064)
Net cash outflow from investing activities- (3,064)
Cash flows from financing activities
Cash was received from:
Proceeds from borrowings29,000
-
Receipts from related parties-
162,421
Cash was applied to:
Payments for lease liabilities principal
(16,512)(80,795)
Payments to related parties(74,411)-
Net cash inflow/(outflow) from financing activities(61,923)81,626
6,992 7,054
Foreign currency translation adjustment
(19,795)(5,801)
Cash and cash equivalents at the beginning of the period
14,451 3,375
Cash and cash equivalents at the end of the period
71,648 4,628
Net increase/(decrease) in cash and cash equivalents
Theinterimfinancialstatementsaretobereadinconjunctionwiththenotestothefinancialstatementssetouton
pages 7 to 21.
Interim Report September 2022
Page 6

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
1.ACCOUNTING POLICIES
REPORTING ENTITY
1.1Statement of compliance
1.2 Basis of preparation
1.3 Significant accounting policies
AFC Group Holdings Limited (the“Company”)isa company incorporatedanddomiciledinNew Zealandandregistered
underthe Companies Act1993.The Companyis listedandits ordinary sharesarequotedonthe NZX mainboardequity
security market (NZX main market)andthe addressesofits registered officeandprincipal placeofbusinessaredisclosed
inthe Corporate Information sectionofthis report. The Companyis anFMC Reporting Entityunderthe Financial Markets
Conduct Act2013 andits financial statements comply with the Companies Act1993 andthe Financial Markets Conduct Act
2013.
The interim consolidated financial statementsofAFC Group Holdings Limited for the six month periodended 30September
2022comprise the Companyandits subsidiaries (together referredtoasthe "Group"). For the purposesofcomplying with
generally accepted accounting practicein New Zealand ("NZ GAAP"), the Groupis a for-profit entity. The principal activityof
the Companyandthe Groupis toproduce, manufactureandpurchase food, health,andcosmetic products for distributionin
New Zealandandthe Chinese markets. The Group also operatesinthe wineryandvineyard industry whichhas
manufacturing operations.
The interim consolidated financial statementsare prepared ona cost basis except for financial assets whicharecarriedat
amortised cost. The interim consolidated financial statements for the Grouparepresentedin New Zealand dollars($),which
isthe functional currencyofall entities within the Group. All financial informationhas beenroundedtothe nearest dollar
unless otherwise stated.
Thepreparation ofthe interim financial statements requires managementtomake judgements, estimatesandassumptions
that affect the reported amountsinthe interim financial statements. The estimatesandunderlying assumptionsarebased
onhistorical experienceandadjusted for current market conditionsandother factors, including expectationsoffuture events
thatareconsideredtobereasonableunderthe circumstances.If outcomes within the next financial periodaresignificantly
different from assumptions, this could result in adjustments to carrying amounts of the asset or liability affected.
AFC Group Holdings Limitedhasapplied the same accounting policiesandmethodsofcomputationinits interim
consolidated financial statements as were applied in the annual financial statements for the year ended 31 March 2022.
The interim financial statementsareinrespectofthe six months period 1 April2022to30September2022.The
comparative periodis inrespectofthe six months period 1 April2021to30September2021.The year-end balance date
will be 31 March 2023 and full financial statements will cover the 12 months period 1 April 2022 to 31 March 2023.
These unaudited consolidated condensed interim financial statements(‘interimfinancialstatements’)havebeen preparedin
accordance with New Zealand Generally Accepted Accounting Practiceandcomply with the requirementsofInternational
Accounting Standard (IAS)34Interim Financial Reportingandwith New Zealand EquivalenttoInternational Accounting
Standard (NZ IAS) 34 Interim Financial Reporting and the NZX Main Board Listing Rules.
The interim financial statementsdo notinclude all the notesofthe type normally includedinan annualfinancial report.
Accordingly, these interim financial statements shouldbereadinconjunction with the audited consolidated financial
statements for the periodended 31March2022 and anypublic announcements madebythe Group during the interim
reporting period and up to the date of these interim financial statements.
These consolidated financial statements have been prepared in accordance with NZ GAAP. These consolidated financial
statements
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 condensed interim consolidated financial statements were approved and authorised for issue by the directors on
23 Nov
ember 2022. The directors are not able to amend the financial statements after issue.
Interim Report September 2022
Page 7

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
2.Revenue
September
2022
September
2021
NoteNZ$NZ$
Operating revenue
Sales - wine products659,432 63,832
Sales - cosmetic products10,737 46,183
Sales - other products1,139 1,416
Total operating revenue671,308 111,431
Other Income630 8,011
Rental Income9,946 7,280
Covid-19 wage subsidy- 46,937
Total Other Income10,576 62,228
Total Income681,884 173,659
3.Expense
September
2022
September
2021
NoteNZ$NZ$
Included in Selling and Distribution Expenses
Business Events
5,259 9,644
Freight and Courier
28,225 2,370
Salaries and Sales Commission
16,603 14,580
Other expense
3,841 199
Total Selling and Distribution Expenses
53,927 26,793
Included in Administration Expenses
Salaries
204,309 229,265
Audit Fees
24,737 31,510
Depreciation
26,031 90,376
Management fee
20,000 15,000
Loss on fixed asset disposal
14,729 -
Consulting & Accounting
18,240 11,400
Licences & Subscriptions
10,738 8,337
Insurance
10,372 10,741
Rent
9,840 12,639
Storage fee
9,500 -
Share Registry Costs
8,592 12,639
Other expenses
65,768 39,074
Total Administration Expenses
422,855 460,981
Finance costs:
Interest paid on borrowings from related parties20,459 21,840
Lease interest5,820 17,358
Other interest paid146 219
26,424 39,417
Profit / (Loss) before income tax has been
Interim Report September 2022
Page 8

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
4. INCOME TAX
5.EARNINGS PER SHARE
September
2022
September
2021
NZ$NZ$
Basic earnings per share
Profit/ (Loss) after taxation attributable to equity holders of the parent
(14,701) (245,535)
3,664,253,194 3,664,253,194
Basic and Diluted Earning per share in NZ$(0.00000401) (0.00006701)
6.AUTHORISED AND ISSUED SHARE CAPITAL
Balance as at 31 March 2021
Shares Issued
No.
$
Ordinary shares
Balance at 1 April 2021
Ordinary shares on issue3,664,253,194 28,679,577
Treasury shares
(37,082)(74)
Ordinary shares on issue at 1 April 2021 excluding treasury shares
3,664,216,112 28,679,503
Movement for 2022 financial year
Ordinary shares authorised and issued
- -
Ordinary shares on issue at 31 March 2022
3,664,216,112 28,679,503
Movement to 30 September 2022
Ordinary shares authorised and issued
- -
Ordinary shares on issue at 30 September 2022 excluding treasury shares
3,664,216,112 28,679,503
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 2021: 28%).
The Group has an unused tax losses of $1,383,881 bought forward from 31 March 2022. 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 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 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 2022
(September 2021: 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.
Weighted average number of ordinary shares on issue
There have been no other transactions involving ordinary shares or potential ordinary shares between the
reporting date and the date of authorisation of these financial statements.
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share
Interim Report September 2022
Page 9

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
7.CASH AND CASH EQUIVALENTS
SeptemberMarch
20222022
$$
Cash at bank and on hand1,648 14,451
Total cash and cash equivalents
1,648 14,451
8.INVENTORIES
SeptemberMarch
20222022
$$
Work in progress186,060 123,509
Finished goods454,646 502,573
Provision for inventory
(261,853)(273,920)
Total Inventories
378,852 352,162
Provision of closing stock
Opening provision of closing stock
(273,920)(335,809)
Released/(Charged) to profit & loss
12,067 61,889
Closing provision for closing stock
(261,853)(273,920)
9.
TRADE, OTHER AND RELATED PARTY RECEIVABLES
SeptemberMarch
20222022
Note
$$
Trade receivables - third parties13,152 6,849
Trade receivables - related parties 15 - 2,100
13,152 8,949
Allowance for impairment losses(6)(6)
Total trade and related party receivables
13,146 8,943
Tradedebtorsarenon-interestbearingandreceiptisnormallyon30daysterms.Relatedpartyreceivablesarenon-
interest bearing and repayable on demand as disclosed in note 15.
The carrying amount of cash and cash equivalents approximates their fair value. Cash at bank earns interest at
floating rates on daily deposit balances. Cash and cash equivalents consist of bank accounts and credit cards.
Inventory of $261,853 has been written down to net realisable value/lower of cost (31 March 2022: $273,920).
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.
Interim Report September 2022
Page 10

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
9.
TRADE, OTHER AND RELATED PARTY RECEIVABLES(contiued)
SeptemberMarch
20222022
Movement in the allowance for impairment losses
$$
Opening Balance 1 April
(6)(182)
Reversal of prior year provision
- 182
- (6)
(6)(6)
Charge for the financial year
Closing Balance 30 September/31 March
TheGroupestablishesanallowanceforimpairmentthatrepresentsitsestimateofincurredlossesinrespectoftrade
andrelatedpartyreceivables.Themaincomponentofthisallowanceisaspecificlosscomponentthatrelatesto
individuallysignificantexposures,andacollectivelosscomponentestablishedforgroupsofsimilarassetsinrespect
oflossesthathavebeenincurredbutnotyetidentified.Thecollectivelossallowanceisdeterminedbasedon
historical data of payment statistics for similar financial assets.
Thedirectorsconsiderthatthereisnomaterialdifferencebetweenthecarryingvalueandfairvalueoftradedebtors
andrelatedpartyreceivables.TheGroup'smanagementconsidersthatallfinancialassetsthatarenotimpairedor
pastdueforeachofthereportingdatesunderreviewareofgoodcreditquality.Thedirectorsalsoconsiderthatthe
receivables that are past due and not impaired are fully recoverable.
Interim Report September 2022
Page 11

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
10.
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 2022
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 - - - - - 4,403 - - 4,403
Disposal- - - - - - (52,604)- (52,604)
Written off- - - - - - - - -
Cost as at 31 March 2022
320,000 905,199 50,000 322,108 71,469 33,158 104,215 80,000
1,886,149
Accumulated Depreciation
- (10,818)- (224,394)(55,589)(26,253)(103,416)(25,826)(446,296)
- (2,565)- (12,453)(1,888)(2,480)(10,222)(4,063)(33,671)
Disposal
- - - - - - 25,012 - -
- (13,383)- (236,847)(57,477)(28,733)(88,626)(29,889)(454,955)
Carrying Amount
Cost
320,000 905,199 50,000 322,108 71,469 33,158 104,215 80,000
1,886,149
- (13,383)- (236,847)(57,477)(28,733)(88,626)(29,889)(454,955)
320,000 891,816 50,000 85,261 13,992 4,425 15,589 50,111
1,431,194
As at 30 September 2022
Cost
Cost as at 1 April 2022
320,000 905,199 50,000 322,108 71,469 33,158 104,215 80,000
1,886,149
Additions - - - - -
Disposal- - - (10,640)- (13,999)(74,897)- (99,537)
Cost as at 30 September 2022
320,000 905,199 50,000 311,468 71,469 19,159 29,318 80,000
1,786,612
Accumulated Depreciation
- (13,383)- (236,847)(57,477)(28,733)(88,626)(29,889)
(454,955)
- (1,011)- (4,902)(778)(1,015)(1,865)(1,879)
(11,450)
disposal- - - 8,378 13,632 62,798 - 84,808
- (14,394)- (233,371)(58,255)(16,115)(27,694)(31,768)
(381,598)
Carrying Amount
Cost
320,000 905,199 50,000 311,468 71,469 19,159 29,318 80,000
1,786,612.47
- (14,394)- (233,371)(58,255)(16,115)(27,694)(31,768)(381,597.53)
320,000 890,805 50,000 78,097 13,214 3,043 1,624 48,232 1,405,015
Depreciationchargeforthe
period
Accumulated Depreciation at
30 September 2022
Accumulated Depreciation
Carrying Amount 30
September 2022
Accumulated Depreciation at 1
April 2021
Depreciation charge for the
year
Accumulated Depreciation at
31 March 2022
Accumulated Depreciation
Carrying Amount 31 March
2022
Accumulated Depreciation at 1
April 2022
Interim Report September 2022
Page 12

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
11.RIGHT-OF-USE ASSETS
11.1Right-of-use assetsBuildingsForkliftTotal
At 1 April 2021
486,417 8,046 494,463
Depreciation
(161,643)(4,828)(166,470)
Effect of modification to lease terms
(318,440)- (318,440)
At 31 March 2022
6,334 3,218 9,553
At 1 April 2022
6,334 3,218 9,553
Depreciation
(22,944)(402)(23,346)
Addition
119,587 - 119,587
disposal
- (2,816)(2,816)
At 30 September 2022
102,978 - 102,978
11.2Lease liabilitiesBuildingsForkliftTotal
At 1 April 2021
5171788770525948
Lease interest
3075478731541
Lease payments
(190,476)(5,833)(196,309)
Effect of modification to lease terms
(349,946)- (349,946)
At 31 March 2022
7509372411234
Lease liabilities
Current lease liabilities7509372411234
Non-current lease liabilities- - -
Total lease liabilities
7509372411234
At 1 April 2022
7,509 3,724 11,234
Lease interest
5,820 5,820
Lease payments
(21,424)(3,724)(25,148)
Increase in rent modification
119,587 - 119,587
At 30 September 2021
111,493 - 111,493
Lease liabilities
Current lease liabilities
35,994 - 35,994
Non-current lease liabilities
75,499 - 75,499
Total lease liabilities
111,493 - 111,493
TheGroupterminatedtwoleasedpropertiesandleasesonenewpropertyinNewZealand.Theperiodicrentisfixed
over the lease term.
31 March 2022
30 September 2022
31 March 2022
30 September 2022
Interim Report September 2022
Page 13

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
12.INTANGIBLE ASSETS
TrademarksTotal
Period ended 31 March 2022
$$
Cost
Cost as at 1 April 20211,500 1,500
Additions- -
Cost as at 31 March 20221,500 1,500
Accumulated Amortisation
Accumulated amortisation 1 April 2021
(642)(642)
Amortisation for the year
(150)(150)
Accumulated amortisation as at 31 March 2022
(792)(792)
Carrying Amount
Cost 1,500 1,500
Accumulated amortisation
(792)(792)
Carrying Amount 31 March 2022
708 708
Period ended 30 September 2022
Cost
Cost as at 1 April 20221,500 1,500
Additions - -
Cost as at 30 September 20221,500 1,500
Accumulated Amortisation
Accumulated amortisation 1 April 2022
(792)(792)
Amortisation for the period
(75)(75)
Accumulated amortisation as at 30 September 2021
(867)(867)
Carrying Amount
Cost 1,500 1,500
Accumulated amortisation
(867)(867)
Carrying Amount 30 September 2022633 633
13.TRADE, OTHER AND RELATED PARTY PAYABLES
SeptemberMarch
20222022
Note
$$
Trade payables
130,976 139,620
Accruals
94,011 125,534
Related party payables
15 886,260 968,153
Other payables
76,516 15,185
1,187,762 1,248,492
Amortisation and impairment charges of $75 are recognised under administration expenses in the Statement of
Comprehensive Income.
ThenormaltradecredittermsgrantedtotheGrouprangefrom30to90days.Thetradepayablesareunsecuredand
non-interest bearing. The carrying amount disclosed above is a reasonable approximation of fair value.
Relatedpartypayablesareunsecuredandrepayableondemand.Therelatedpartypayablesexceptforfundsin
advancearenon-interestbearing.Forfundsinadvance,interestischargedat10.08%perannumforoutstanding
amounts.
Interim Report September 2022
Page 14

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2021
14.BORROWINGS
SeptemberMarch
20222022
$$
Small business cashflow loan
82,400 53,400
82,400 53,400
Non-current
Between one and two years
82,400 53,400
82,400 53,400
15.RELATED PARTIES
Related Parties:
Hao Long
Hefei Ge Lun Bu E-commerce Co., Ltd
Howard & Co Consulting and Advisory Limited
Director of subsidiary, senior employee of AFC, shareholder of
company
Company associated to company's major shareholder, Mr Yang Xia
Company associated with director of subsidiary, Mr Hao Long
Director of company and subsidiary
Company associated with director, Mr Bo Xian Cao
Company associated with director, Mr Bo Xian Cao
Company associated with director, Mr Bo Xian Cao
Company associated to company's major shareholder, Mr Yang Xia
Company associated to company's major shareholder, Mr Yang Xia
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.
Anhui Asin International Trade Co. Ltd
Australasian International Group Limited
Bo Xian Cao
E Way Holdings Group Limited
E Way Trading Limited
Federation of New Zealand Shenzhen Societies
Inc.
Company associated to company's major shareholder, Mr Yang Xia
Company associated to company's major shareholder, Mr Yang Xia
Guangdong Farmside International Trading Co.
Limited
Guangdong Sanjiang Industry Development
Limited
Guangdong Silver Fern Network Technology Co.
Limited
Guangdong Yinrui Investment & Management
Company
Company associated to company's major shareholder, Mr Yang Xia
Company associated to company's major shareholder, Mr Yang Xia
Borrowingsareinitiallyrecognisedatfairvalueplustransactioncostsincurred.Borrowingsaresubsequently
measuredatamortisedcost.Anydifferencebetweentheproceeds(plustransactioncosts)andtheredemption
amountisrecognisedintheincomestatementovertheperiodoftheborrowingsusingtheeffectiveinterestmethod.
Borrowingsareclassifiedasnon-currentliabilitiesastheGrouphasanunconditionalrighttodefersettlementofthe
liability 12 months after the balance sheet date.
SmallbusinesscashflowloanestablishedandadministeredbytheCrowntoprovideloanstoassistsmallbusiness
impactedbytheCovid-19economicshocktosupportimmediatecashflowneedsandmeetfixedcosts.Theinterest
ratefortheloanis3%.TheGroupwillnotbechargedanyinterestontheloanifrepayalltheoutstandingloan
amountinfullbefore24monthsdate.TheloancontractwillbeterminatedwhentheGrouphaverepaidallamounts
owing to IRD.
Interim Report September 2022
Page 15

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
15.RELATED PARTIES (continued)
Related Parties:
Related party balances
The following balances were held with related parties at period/year end.
SeptemberMarch
20222022
$$
- 2,100
- 2,100
55,912 50,036
34,640
34,640
Purchase of goods112,535 103,679
- 4,696
101,072
101,569
57,277 26,553
-
3,833
27
108,494
12,075
18,113
- 38,372
512,721 478,169
886,260 968,153
Super Life NZ Ltd
Tongqu Trading Group Limited
E Way Holdings Group Limited
Zilei Wang
The related parties payables are unsecured and repayable on demand. There is no collateral or guarantees for
related parties payables. Related parties payables for purchases of goods, directors fees and management fees are
non-interest bearing.
The related party advances with NZ Silveray Group Limited, Hao Long and E Way Holdings Group Limited are
interest bearing advances with interest being charged at 10.08% per annum for outstanding amounts.
New Zealand Asia-Pacific Cultural Exchange
Centre Limited
New Zealand Fantasy Angel Biotechnology
Limited
New Zealand Guangdong General Association of
Commerce Inc
Company associated to company's major shareholder, Mr Yang Xia
Director of company
Company associated with senior employee, Kelly Hu
Purchase of goods
Company associated with director, Mr Zilei Wang
Director of company and subsidiary
Nature of Transactions
Company associated with director, Mr Bo Xian Cao
Company associated with director, Mr Bo Xian Cao
Company associated with director, Mr Qiang Li
Company associated with director, Mr Bo Xian Cao
Company's major shareholder
NZ Guangdong Business Development
Corporation Limited
NZ Silveray Group Limited
Qiang Li
Foshan Shunde Amante Trading Co., Ltd
Related Party Receivables
Hefei Ge Lun Bu E-commerce Co., Ltd
Anhui Asin International Co. Ltd
Advance
Advance
New Zealand National Trade Limited
Australasian International Group Limited
Shuang Xia
Shuopeng Wang
Management fees
Purchase of goods
Director fee
Anhui Asin International Co. Ltd
Howard & Co Consulting and Advisory Limited
Hao Long
New Zealand National Trade Limited
NZ Silveray Group Limited
NZ Silveray Group Limited
Management fees
Yang Xia
E Way Holdings Group Limited
Guangdong Farmside International Trading Co.
Limited
Related Party Payables
Advances
Sale of products
Director fee
Purchase of goods
Director of company
Director of the company, director of NZ Silveray Group Limited
Shareholder of company
Company associated to company's major shareholder, Mr Yang Xia
Interim Report September 2022
Page 16

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
15.RELATED PARTIES (continued)
SeptemberSeptember
20222021
Related party transactions$$
Sales of products or services provided to the following:
E Way Holdings Group Limited
- 3,099
Guangdong Farmside International Trading Co., Ltd
- 1,660
NZ Silveray Group Limited
588,800 -
Howard & Co Consulting and Advisory Limited
448 -
589,249 4,759
Guangdong Farmside International Trading Co., Ltd
25,000 -
E Way Holdings Group Limited
- 583
20,000 15,000
New Zealand National Trade Limited
4,375 5,250
Tongqu Trading Group Limited- 3,500
49,375 24,333
Interest paid or credited on related party balances:
E Way Holdings Group Limited
5,094 3,499
Hao Long
2,288 742
NZ Silveray Group Limited
13,077 17,598
20,460 21,840
Key Management Personnel
September
September
20222021
$$
Salaries and other short-term benefits
109,859
93,843
Directors' fees
4,375
9,042
114,234 102,884
16.COMMITMENTS AND CONTINGENCIES
The Group has no capital commitments at 30 September 2022 (31 March 2022: Nil)
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:
Purchases from the following for services or products provided:
Howard & Co Consulting and Advisory Limited
Interim Report September 2022
Page 17

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
17.FINANCIAL INSTRUMENTS
Financial
assets at
amortised
cost
Financial
liabilities at
amortised cost
Total
NZ$NZ$NZ$
Financial Assets:
Cash and cash equivalents1,648 - 1,648
Trade and related party receivables13,146 - 13,146
Total financial assets14,794 - 14,794
Financial liabilities:
Trade and other payables
-
1,187,762 1,187,762
Borrowings
-
82,400 82,400
Lease liabilities
-
111,493 111,493
Total financial liabilities- 1,381,655 1,381,655
Financial Assets:
Cash and cash equivalents14,451 - 14,451
Trade and related party receivables8,943 - 8,943
Total financial assets23,394 - 23,394
Financial liabilities:
Trade and other payables
-
1,243,705 1,243,705
Borrowings
-
53,400 53,400
Lease liabilities
-
11,234 11,234
Total financial liabilities- 1,308,339 1,308,339
18. INVESTMENT IN SUBSIDIARIES
Name of subsidiaryPrincipal activity
September
2022
March
2022
Vineyard and winery51%51%
Commodity trading100%100%
100%100%
51%51%
100%100%
100%100%
AFC International Trading Group Limited
National Dairy 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.
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:
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.
AFC Longview Limited
30 September 2022
Non-Trading
31 March 2022
Non-Trading
Non-Trading
Manufacturing
Ownership interest and voting
rights
Interim Report September 2022
Page 18

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
19.SEGMENT REPORTING
Vineyard and winery
Manufacturing
AFC Biotechnology Manufacture Co Limited which manufactures disposable face masks.
Corporate
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 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.
AFC Longview Limited, a vineyard and winery based in Whangarei which produces and sells a number of varietals
and blends of wine.
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.
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 following tables present revenue and profit information for the Group's operating segments for the six months
ended 30 September 2022 and 2021, respectively:
Interim Report September 2022
Page 19

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
19.SEGMENT REPORTING (continued)
Vineyard
and winery Corporate Manufacturing
Eliminations and
adjustments
Period ended 30
September
$$$$$
For the six months ended 30 September 2022
Operating Income
Revenue from external customers
660,571 - 10,737 - 671,308
Other Income
10,202 132,884 7,285
(120,000)30,371
Finance Income-
126,793 4
(126,792)5
Total Revenue670,773 259,677 18,026 (246,792)701,684
Cost of sales92,951 - 20,496 - 113,447
Operating Expenses
Interest46,949
30,489 75,778
(126,792)26,424
Amortisation and impairment losses- 75 - - 75
Depreciation
470 21,345 4,216 - 26,031
Other expenses134,506 305,590 150,450 (120,000)470,546
Total operating expenses
181,925 357,499 230,444 (246,792)523,076
395,897 (97,822)(232,914)- 65,161
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
Amortisation and impairment losses
- 75 - - 75
Depreciation
8,924 5,592 13,997 - 28,513
Other expenses
120,950 393,658 187,187 (242,609)459,186
Total operating expenses
195,153 436,721 264,922 (369,605)527,191
Segment profit/(loss) before tax
(120,511)(31,557)(299,052)- (451,120)
Segment profit/(loss) before tax
Interim Report September 2022
Page 20

AFC GROUP HOLDINGS LIMITED
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022
19.SEGMENT REPORTING (continued)
Vineyard
and winery Corporate Manufacturing
Eliminations and
adjustments Total
$$$$$
As at 30 September 2022
Segment assets1,702,103 6,212,751 111,588 (6,026,736)1,999,706
Capital Expenditure- - -
Segment Liabilities1,313,519 1,414,714 1,946,158 (3,292,736)1,381,655
As at 31 March 2022
Segment assets1,705,179 6,340,012 106,896 (6,286,071)1,866,016
Capital Expenditure- - - - -
Segment Liabilities1,712,494 1,444,150 1,708,552 (3,552,071)1,313,126
20.NET TANGIBLE ASSETS PER SHARE
SeptemberMarch
20222022
$$
Total assets1,999,706 1,866,016
Less right-of-use assets102,978 9,553
Less intangible assets633 708
Tangible assets1,896,095 1,855,755
Less total liabilities1,381,655 1,313,126
Add lease liabilities111,493 11,234
Net tangible assets625,933 553,863
Number of ordinary shares on issue3,664,253,194 3,664,253,194
Net tangible assets / liabilities per share in NZ$0.0002 0.0002
21.CONTINGENT LIABILITIES
The Group has no contingent liabilities at 30 September 2022 (31 March 2021 : Nil)
22.EVENTS AFTER THE REPORTING PERIOD
23.SEASONALITY OF INTERIM OPERATIONS
The net tangible assets and number of shares are as follows:
There are no significant events after the reporting period.
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.
The following tables present assets and liabilities information for the Group's operating segments as at 30 September
2022 and 31 March 2022, 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 2022
Page 21

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 RoadLevel 15, Tower 2, 205 Queen Street
Private Bag 92-119Auckland CBD
Auckland 1142Auckland 1010
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 2022
Page 22

---

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 2022
Previous Reporting Period 6 months to 30 September 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$671 602%
Total Revenue $671 602%
Net profit/(loss) from
continuing operations
$92 122%
Total net profit/(loss) $65 114%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay any dividends for the period ended 30
September 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
$0.00017082 $0.00023834
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 2022.
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 23/11/2022
Unaudited financial statements for the six months ended 30 September 2022 accompany this
announcement.
Howard Long

---

AFC GROUP HOLDINGS LIMITED
(Listed on the NZAX: AFC)
Level 15, Tower 2, 205 Queen Street
Auckland CBD,1010
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 2022. The interim financial statements for the period have
not been audited.

2022 Half-Year Summary

The net assets of AFC Group were NZ$618 thousand, with a 12% increase from the
annual position as at 31 March 2022. This is mainly due to positive net profit from the
revenue increase. Total revenue was NZ$671 thousand for the six months ended 30
September 2022, a growth of 602% compared to the previous corresponding period.
The mitigation of COVID-19 controls and the measures taken by management
improved operational efficiency. AFC Group achieved a net profit of NZ$65 thousand
for this period.

Outlook

In the first half of the financial year 2023, AFC continued its efforts in cost control and
development of markets and sales channels to get through the difficult situation, to
enable future revenue growth and return value to our shareholders:

AFC Longview Limited (“AFCLV” and “Longview Estate”)

1. AFCLV is stepping up its efforts to develop overseas markets by launching marketing
campaigns and increasing online sales channels in China. Total overseas sales in the
first half of the financial year tripled compared to last year.

2. AFCLV is developing new distributors in New Zealand. A new domestic sales
contract was signed in October 2022, which will significantly boost revenues.

3. Longview Estate will continue participating in wine exhibitions and awards to
increase brand recognition. One of our wine products, Malbec, obtained the highest 5-
star awards, and another, Merlot, got 4½ stars in the 2022 Winestate tasting.

4. Longview Estate has taken actions to cut costs, such as better work schedules,

organisation and
people management.

AFC Biotechnology Manufacture Co Ltd (“AFCBIO”)

1. AFCBIO has outsourced its inventory storage to a third party. This cuts down the
rental fee of the warehouse and other ancillary costs, such as electricity and monitoring
fees.

2. AFCBIO is developing new distributors in New Zealand and cooperating with all
distributors to carry out product promotions to increase sales. These include increasing
online promotional channels and restoring some products.

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 costs through office space integration. The depreciation of the
lease of office and rental fees has decreased considerably.

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

4. AFC is helping and providing more opportunities for New Zealand small and medium
enterprises to enter the Chinese market. AFC Group has actively participated in the
China International Import Expo (CIIE), China (Anhui) 5G International Food City and
the "EFOODLINE" global e-commerce platform.

In summary, by taking various measures to increase sales and save costs, the AFC
Group will continue to work hard to return value to our shareholders. We shall expect
to improve the revenue in the next half year.



On behalf of the Board of Directors


Hao Long
CFO
AFC Group Holdings Limited