Half Year Preliminary Announcement of AFC

Directors Review The interim financial statements of AFC Group Holdings Limited ("AFC Group") for the period ended 30 September 2017 will not be audited. The net assets of AFC Group were NZ$4.95 million, with a 9% decrease from the half year position as at 30 September 2016. Cash and cash equivalent products were NZ$0.36 million, and property, plant and equipment were $1.96 million. The sales revenue for the period to 30 September 2017 was NZ$4.99 million. AFC Group experienced a net loss of NZ$234 thousand for the period, which is NZ$339 thousand less than the loss incurred in the period ended 30 September 2016. The Group operates in a number of business segments in New Zealand. These are: International Marketing This includes AFC International Trading Group Limited, who source packaged food products, cosmetics and health products and National Dairy Group Limited, who source food products for distribution to China. The half year sales of AFC International Trading Group Limited, an AFC Group subsidiary, were more than NZ$4 million. The company is actively changing the current low margin trade, by adjusting its product mix and increasing sales of "DD Mask". The company is expecting a decrease in turnover but an increase in margin. Vineyard and Winery The half year wine sales of AFC Longview Ltd were more than NZ$300 thousand. Manufacturing AFC Biotechnology Manufacture Co Ltd has started manufacturing its product "DD Mask" from the beginning of 2018 financial year, resulting in half year sales of more than NZ$910 thousand. Corporate The operations of this segment include providing accounting, management and administration services to other segments of the Group. Hao Long Director AFC Group Holdings Limited For Further Information Please contact Mr Howard Long howard.long@afcnz.com +64- 21- 244-8000 End CA:00311908 For:AFC Type:HALFYR Time:2017-12-14 08:30:50