ASF GROUP LIMITED — Interim / Quarterly Report 2017

Jul 24, 2017

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

	ASF Group Limited
ABN		Quarter ended (“current	quarter”)
	50 008 924 570	30 June 2017
Consolidated statement of cash flows		Current quarter	Year to date
		$A’000	(12 months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	506	1,878
1.2	Payments for
	(a) research and development	-	-
	(b) product manufacturing and operating	-	-
	costs
	(c) advertising and marketing	(26)	(309)
	(d) leased assets	-	-
	(e) staff costs	(618)	(2,388)
	(f) administration and corporate costs	(2,027)	(8,540)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	7	29
1.5	Interest and other costs of finance paid	(595)	(595)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	438	1,123
1.9	Net cash from / (used in) operating	(2,315)	(8,802)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(8)	(19)
	(b) businesses (see item 10)	-	-
	(c) investments	-	(3,370)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(12 months)
			$A’000
	(d) intellectual property	-	-
	(e) other non-current assets	(1,153)	(2,906)
2.2	Proceeds from disposal of:
	(a) property, plant and equipment	-	-
	(b) businesses (see item 10)	-	-
	(c) investments	-	7,736
	(d) intellectual property	-	-
	(e) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	(1,161)	1,441
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	12,052	12,173
3.2	Proceeds from issue of convertible notes	-	11,000
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of	-	-
	shares, convertible notes or options
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (shares buy-back)	(6)	(98)
3.10	Net cash from / (used in) financing	12,046	23,075
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	quarter/year to date	9,240	2,495
4.2	Net cash from / (used in) operating	(2,315)	(8,802)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(1,161)	1,441
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	12,046	23,075
	(item 3.10 above)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

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Consolidated statement of cash flows Current quarter Year to date
$A’000
(12 months)
$A’000
4.5 Effect of movement in exchange rates on (143) (542)
cash held
4.6 Cash and cash equivalents at end of 17,667 17,667
quarter
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 17,667 9,240
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of 17,667 9,240
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 312
6.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
Consulting fees, directors fees and salary ($253), office lease ($59)
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7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2 -
7.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
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• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	-	-
8.2	Credit standby arrangements	-	-
8.3	Other (Convertible Loan)	10,000	6,000

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

• $10 million unsecured convertible loan facility granted by Star Diamond Developments Limited at the following terms:

• (a) Interest rate – 10% per annum, payable in cash on quarterly basis; (b) Maturity date – 1 March 2019;

• (c) Repayment – ASF may, at its sole discretion, repay the outstanding loan and interest by either one or combination of (i) the issue of shares in ASF’s subsidiaries; or (ii) the transfer of securities held by ASF or its subsidiaries; or (iii) cash.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Research and development		-
9.2	Product manufacturing and operating costs		-
9.3	Advertising and marketing		-
9.4	Leased assets		-
9.5	Staff costs		(451)
9.6	Administration and corporate costs		(2,177)
9.7	Other (provide details if material)		-
9.8	Total estimated cash outflows		(2,628)

10.	Acquisitions and disposals of	Acquisitions	Disposals
	business entities
	(items 2.1(b) and 2.2(b) above)
10.1	Name of entity	n/a	n/a
10.2	Place of incorporation or	n/a	n/a
	registration
10.3	Consideration for acquisition or	n/a	n/a
	disposal
10.4	Total net assets	n/a	n/a
10.5	Nature of business	n/a	n/a

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

25 July 2017 Sign here: ............................................................ Date: ............................................. (Director/Company secretary) William Kuan Print name: .........................................................

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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