AFC Full Year Results to 31 March 2023

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

Director’s report
The Directors are pleased to present an improved result for the 12 months
ended 31 March 2023 after a severe slowdown impacted by the spread of
COVID-19.
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 2023, and the
company is not aware of any likely qualification.
AFC Group achieved revenue growth during the FY2023 period, which was
159% higher than the prior financial year ended 31 March 2022. This is due to
the fact that the company has been actively increasing its sales channels in
both domestic and overseas markets. The re-opening of borders has
contributed to an increase in customers and revenue generated.
The Group reports an unaudited net loss of $0.18 million for the year. This
compares with a net loss of $0.74 million for the previous year. The majority of
expenses were identified as employee salaries, sales incentives, and
depreciation expenses. 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 2023.
In FY2023, a positive net cash inflow of 0.06 million from operating activities
has been recorded for the first time since being hit hard by COVID-19. For the

year ended 31 March 2023, the net assets were NZ$0.37 million, and fixed
assets were NZ$1.48 million. The annual sales revenue for the year ended 31
March 2023 was NZ$1.08 million. The market capitalisation value was NZ$3.66
million.
Please refer to the attached Unaudited Annual Results Announcement for
detailed results.
Outlook
The FY2023 result was in line with the board’s expectations. AFC Group is
aware of how uncertain the future is. 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 explore its sales channels and marketing campaign.
The company changes its pricing strategy for the White Diamond wine
to target high-end customers and increase sales.
2. Longview Estate actively participated in wine exhibitions, such as
Winetopia and NZ Wine Roadshows, to promote wine and increase
sales.
3. AFCLV is committed to developing export markets by launching
marketing campaigns, such as free wine knowledge courses, White
Diamond wine tastings for the business elite, bundling of White Diamond
wines with high-end travel, and establishing White Diamond
partnerships.
4. Longview Estate has taken actions to cut costs, such as better work
schedules, organisation and people management.
5. AFCLV has around $0.45 million in domestic sales contracts to be
fulfilled in FY2024.

AFC Biotechnology Manufacture Co Ltd (“AFCBIO”)
1. AFCBIO will cooperate with distributors to launch marketing campaigns
in the domestic market. AFCBIO has signed a significant distribution
contract with a new distributor. The sales are expected to increase in
FY2024.
2. AFCBIO will focus on the promotion and sales of its key products (DD
Masks). The re-opening of borders will continue to bring in more
customers to AFCBIO, thus generating more sales.
3. AFCBIO will continue its cost management actions to control costs.
AFC Group Holdings Limited (“AFC”)
1. All directors will voluntarily receive no director fees in FY2024 to support
the business development.
2. AFC has cut down its rent costs by renting a lower-cost office and will
remain that way.
3. AFC will attend the 6th China International Import Expo (CIIE) to promote
the group and its 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 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 2023.

On behalf of the Board of Directors.


HAO LONG
CFO
30/05/2023

For Further Information
Please contact Mr Howard Long
howard.long@afcnz.com
+64- 21- 244-8000

---

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
20232022
Notes
NZ$ NZ$
Operating revenue2
1,075,442 415,023
Cost of sales3
(322,605)(383,971)
Gross profit
752,837 31,052
Other income2
31,367 245,620
Expenses
Selling and distribution expenses3
(175,116)(45,019)
Administration expenses3
(710,918)(886,156)
Reversal/(impairment loss) on trade receivables9
(2)(176)
(101,832)(654,679)
Finance income
2
16 2
Finance expense
3
(61,876)(87,662)
Gain on lease modification
13
-31,506
Impairment on property, plant and equipment
12
(14,729)(27,592)
(76,589)(83,746)
Loss before income tax
(178,421)(738,425)
Income tax expenses4
- -
Loss for the year
(178,421)(738,425)
Other comprehensive income
- -
Total comprehensive loss for the year
(178,421)(738,425)
Loss and total comprehensive loss attributable to:
Equity holders of the parent
(145,171)(410,219)
Non-controlling interest
7
(33,250)(328,206)
(178,421)(738,425)
Loss per share:
Basic and diluted earning per share in NZ$5 (0.00004)(0.00011)
Operating loss
Unaudited

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
Notes
Issued
Share
Capital
Accumulated
Losses
Equity
Holders of
the Parent
Non-
Controlling
Interests
Total
NZ$ NZ$ NZ$ NZ$ NZ$
Balance as at 1 April 2021
28,679,503 (26,950,481) 1,729,022 (437,707) 1,291,315
Net loss for the financial year
7
-(410,219) (410,219) (328,206) (738,425)
Other comprehensive income
- - - - -
Total comprehensive loss
-(410,219) (410,219) (328,206) (738,425)
Balance as at 31 March 202228,679,503 (27,360,700) 1,318,803 (765,913) 552,890
Net loss for the financial year
7
-(145,171) (145,171) (33,250) (178,421)
Other comprehensive income
- - - - -
Total comprehensive loss-(145,171) (145,171) (33,250) (178,421)
Balance as at 31 March 202328,679,503 (27,505,871) 1,173,632 (799,163) 374,469
Unaudited

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
20232022
Notes
NZ$ NZ$
6
28,679,503 28,679,503
(27,505,871)(27,360,700)
1,173,632 1,318,803
7
(799,163)(765,913)
374,469 552,890
8
4,963 14,451
9
10,846 8,943
11
314,725 352,162
10
69,243 49,005
399,777 424,561
12
1,397,148 1,431,194
13
84,710 9,553
15
558 708
1,482,416 1,441,455
1,882,193 1,866,016
16
1,333,748 1,248,492
13
35,110 11,234
1,562 -
1,370,420 1,259,726
17
81,847 53,400
13
55,457 -
137,304 53,400
1,507,724 1,313,126
374,469 552,890
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
Short-term Loan
Total current liabilities
NON-CURRENT LIABILITIES
Borrowings
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Unaudited

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
20232022
Notes
NZ$ NZ$
Cash flows from operating activities
Cash was received from:
Receipts from customers
153,768 461,947
Receipts from related parties
919,769 142,533
Interest received
16 2
Other receipts
39,325 251,757
Cash was applied to:
Payments to suppliers and employees
(907,348)(894,403)
Payments to related parties
(81,991)-
Interest paid
(51,550)(56,122)
Lease interest
13
(10,326)(31,541)
Net cash outflow from operating activities
18
61,663 (125,827)
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 equipment
12
(3,120)(4,403)
Net cash inflow/(outflow) from investing activities
(3,120)(4,403)
Cash flows from financing activities
Cash was received from:
Proceeds from borrowings
17
44,814 -
Received from related parties
477,200 312,210
Cash was applied to:
Payments for lease liabilities principal
(39,834)(164,769)
Repayments to related parties
(527,449)-
Repayment to borrowings
(14,805)
Net cash inflow from financing activities
(60,074) 147,441
(1,531)17,211
Foreign currency translation adjustment
(7,958)(6,135)
Cash and cash equivalents at the beginning of the year
14,451 3,375
Cash and cash equivalents at the end of the year
8
4,963 14,451
Net decrease in cash and cash equivalents
Unaudited

---

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 2023
Previous Reporting Period 12 months to 31 March 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,075 159%
Total Revenue $1,075 159%
Net profit/(loss) from
continuing operations
($178) (76%)
Total net profit/(loss) ($178) (76%)
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay any dividends for the year ended 31
March 2023
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
0.00010364 cents 0.00015115 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 2023.
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

30/05/2023
Unaudited financial statements for the year ended 31 March 2023 accompany this
announcement.