Preliminary Announcement of AFC Group Holdings Limited

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
20242023
Notes
NZ$ NZ$
Operating revenue
1,324,402 1,075,442
Cost of sales
(355,084)(322,605)
Gross profit
969,318 752,837
Other income
43,951 31,367
Expenses
Selling and distribution expenses
(226,255)(175,116)
Administration expenses
(658,878)
(710,918)
Reversal/(impairment loss) on trade receivables
(6)(2)
128,130 (101,832)
Finance income
1,083 16
Finance expense
(75,302)
(61,876)
Gain on lease modification
- -
Impairment on property, plant and equipment
-
(14,729)
(74,218)(76,589)
Loss before income tax
53,911
(178,421)
Income tax expenses
- -
Loss for the yea
r
53,911 (178,421)
Other comprehensive income
- -
Total comprehensive loss for the year
53,911 (178,421)
Loss and total comprehensive loss attributable to:
Equity holders of the parent(7,485)(145,171)
Non-controlling interest 61,396 (33,250)
53,911 (178,421)
Loss per share:
Basic and diluted earning per share in NZ$
(0.00000204)
(0.00003962)
Operating loss
Unaudited

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
Notes
Issued
Share
Ca
pital
Accumulated
Losses
Equity
Holders of
the Parent
Non-
Controlling
Interests
Total
NZ$ NZ$ NZ$ NZ$ NZ$
Balance as at 1 April 2022 28,679,503 (27,360,700) 1,318,803 (765,913) 552,890
Net loss for the financial year
-(145,171) (145,171) (33,250) (178,421)
Other comprehensive income - - - - -
Total com
prehensive 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
Net loss for the financial year-(7,485) (7,485) 61,396 53,911
Other comprehensive income - - - - -
Total com
prehensive loss
-
(7,485) (7,485) 61,396 53,911
Balance as at 31 March 202428,679,503 (27,513,356) 1,166,147 (737,767) 428,380
Unaudited

AFC GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
20242023
Notes
NZ$ NZ$
28,679,503 28,679,503
(27,513,356)(27,505,871)
1,166,147
1,173,632
(737,767)(799,163)
428,380 374,469
26,181
4,963
14,446 10,846
452,556 314,725
82,849
69,243
576,032
399,777
1,382,719 1,397,148
44,049 84,710
408 558
1,427,176
1,482,416
2,003,208
1,882,193
1,457,804 1,333,748
45,698 35,110
33,154 1,562
1,536,656
1,370,420
33,293
81,847
4,879 55,457
38,172
137,304
1,574,828
1,507,724
428,380
374,469
SHAREHOLDERS EQUIT
Y
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 2024
20242023
Notes
NZ$ NZ$
Cash flows from operating activities
Cash was received from:
Receipts from customers
65,960 153,768
Receipts from related parties
710,772 919,769
Interest received
1,083 16
Other receipts
11,748 39,325
Cash was applied to:
Payments to suppliers and employees
(805,386) (907,348)
Payments to related parties
(64,777)(81,991)
Interest paid
(9,006)(51,550)
Lease interest
(7,643)(10,326)
Net cash outflow from operating activities
(97,249) 61,663
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
(3,549)(3,120)
Net cash inflow/(outflow) from investing activities
(3,549)(3,120)
Cash flows from financing activities
Cash was received from:
Proceeds from borrowings
-44,814
Received from related parties
378,581 477,200
Cash was applied to:
Payments for lease liabilities principal(39,990)(39,834)
Repayments to related parties(196,841) (527,449)
Repayment to borrowings(16,962)(14,805)
Net cash inflow from financing activities
124,788 (60,074)
23,990 (1,531)
Foreign currency translation adjustment (2,772)(7,958)
Cash and cash equivalents at the be
ginning of the year
4,963 14,451
Cash and cash equivalents at the end of the year
26,181 4,963
Net decrease in cash and cash equivalents
Unaudited

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

Preliminary Announcement of AFC Group Holdings Limited
Unaudited Financial Results Summary
AFC Group Holdings Limited ("AFC Group") is currently undergoing the audit
process for the financial year ending 31 March 2024. There are no anticipated
significant audit qualifications.
This financial year showcased a turnaround for AFC Group, with an unaudited
net profit of $54 thousand. The unaudited net loss attributable to shareholders
was $7 thousand, which is a significant improvement compared to last year's
attributable net loss of $145 thousand. Revenue for FY2024 was approximately
$1,324 thousand, marking a 23% increase from the previous year. The majority
of expenses were salaries and sales commissions. Consistent with its dividend
policy, AFC Group will not distribute dividends for this period.
As at the end of the financial year, the unaudited net assets were NZ$428
thousand, cash and cash equivalents were NZ$26 thousand, and fixed assets
totalled NZ$1,427 thousand. The market capitalisation was reported as
NZ$3.66 million.
Please refer to the attached Unaudited Annual Results Announcement for the
detailed results.

FY2024 Operation Highlights
Despite the challenges of the economic environment and difficulties
encountered in the operation, AFC Group has continued to progress during the
2024 financial year. The Group has developed a list of actions to navigate and
adapt to the dynamic market:
• AFC Longview Limited: We have revised White Diamond wine
marketing strategies to appeal to high-end consumers. A series of
marketing campaigns in China have yielded favourable results, and,
together with cooperation with the distributor in the New Zealand market,
the company has seen sales growth in both domestic and overseas
markets.
• AFC Biotechnology Manufacture Co Ltd: The company has
strengthened its distributor collaboration to boost sales. With a focus on
our two leading facial mask products, DDMASK rose water brightening
facial mask and DDMASK manuka honey moisturising smoothing facial
mask, the company achieved sales growth in FY2024.
• AFC Group Holdings Limited: AFC is actively exploring new business
opportunities. The company is venturing into the mobile building market
in New Zealand, targeting applications in scenic camps, hotels, lodges,
domestic dwellings, commercial offices, and mobile trading. If
successfully progressed, this business will significantly enhance our
revenue stream starting in the 2025 financial year. Serving as a pivotal
link for trade and investment between New Zealand and China, the
AFC has actively engaged in international arenas. We participated in the
6th China International Import Expo and the "EFOODLINE" global e-
commerce platform, promoting our products and facilitating New
Zealand SMEs' entry into the Chinese market. We remain dedicated to

our corporate social responsibilities and improving communities' welfare
in both countries.
Outlook
Despite the challenges ahead, AFC is well-positioned for continued growth and
enhanced shareholder value in the 2025 financial year. Our strategic priorities
include expanding our market footprint, identifying new opportunities for
business growth, and enhancing operational efficiencies. The Board remains
optimistic that these focused efforts will drive our long-term growth objectives
and deliver significant value to our shareholders.
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 expects to release our Annual Report before the end of June, and we plan
to hold our Annual Meeting in early September 2024.
Director Update
In compliance with NZX Listing Rules 2.6.1 and under the guidance of the
NZX Corporate Governance Code recommendation 2.4, the Board of AFC
Group Holdings Limited ("AFC Group") has re-evaluated the independence of
its directors. As a result of this assessment, the Board announces the
following changes:
Mr Jianfeng Chen has transitioned to the role of Non-Executive Director due
to his increased collaboration with AFC Group, which may affect his ability to
continue to serve as an Independent Director.

Mrs Jingwei Ma has been appointed as an Independent Director, moving from
her previous position as Non-Executive Director. Mrs Ma received no
remuneration from the AFC Group, and no conflicts of interest were identified
between her and the company.
These changes ensure continued compliance with governance standards and
the strategic alignment of AFC Group's leadership.

On behalf of the Board of Directors.


HAO LONG
CFO
29/05/2024

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

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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 2024
Previous Reporting Period 12 months to 31 March 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,324 23%
Total Revenue $1,324 23%
Net profit/(loss) from
continuing operations
$54 130%
Total net profit/(loss) $54 130%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay any dividends for the year ended 31
March 2024
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
$0.00011858 $0.00010364
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
During the financial year, AFC Group Limited achieved an
unaudited revenue of $1,324 thousand, an increase of 23%
from the previous year. The company achieved a turnaround
in FY2024, realising an unaudited net profit of $54 thousand.
The amount attributable to shareholders was a net loss of
$7 thousand, which is a significant improvement compared
to last year’s attributable net loss of $145 thousand. The
earnings per share was -$0.00000204, without dilution for
this period. In accordance with its dividend policy, AFC
Group distributes no dividends for the financial year.

For more information, please refer to the preliminary
announcement.
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 29/05/2024

Unaudited financial statements for the year ended 31 March 2024 accompany this
announcement.