ROOLIFE GROUP LTD — Interim / Quarterly Report 2021

Oct 28, 2020

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29 October 2020

Quarterly Activities Report and Appendix 4C for the Period Ended 30 September 2020

Quarter Highlights

• Q1 FY2021 unaudited revenue $940k (up 62% over Q1 FY2020) and total cash receipts for Q1 FY2021of $828k

• Three significant contract wins secured in the September Quarter, the most in a single quarter, taking the value of RooLife’s announced contract wins since April 2020 to $11.2 million in total contract value, subject to minimum annual sales targets being met for each contract

• Contract wins include AFT Pharmaceuticals, BLIS Technologies and Total Beauty Network

• Three e-Commerce stores built and launched, ahead of Alibaba’s Singles Day online shopping festival on 11 November (11.11), already experiencing strong traction with Chinese consumers and impressive month-on-month revenue growth

• $766k placement to institutional investors completed in August

• Successful Entitlement Issue and Shortfall Offer to Raise $5.49 million announced in the Quarter and completed in October, with demand for the shortfall significantly oversubscribed

• The Company is well capitalised to support strong anticipated growth

e-Commerce and digital marketing company RooLife Group Ltd ( ASX: RLG ) (“ RooLife Group ” or the “ Company ”) is pleased to provide shareholders with the Company’s Quarterly Activities Report and Appendix 4C for the Quarter ended 30 September 2020 (the “ Quarter ”).

RooLife Group Limited 68 Milligan Street, Perth, WA, 6000 ACN: 613 410 398

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RooLife Group’s online e-Commerce marketplaces assist businesses to sell directly to Chinese consumers and accept payment via the Alipay and WeChat mobile payments platforms, allowing brands to sell products to Chinese consumers online.

Revenue Growth

The Company has achieved strong year-on-year growth for Quarter 1 FY2021 of 62% over the prior corresponding period and expects a strong Quarter 2 FY2021 revenue performance from recent contract wins and store launches already exhibited in October and ahead of the world’s largest online shopping event (in terms of the number of consumers and merchants) - Alibaba’s 11.11 Global Shopping Festival.

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RooLife Growing Year-on-Year Quarterly Revenue Comparison FY2019 – FY2021

Total Contract Value

During the September Quarter the Company won three new major contracts being appointed to establish and operate three new Tmall Stores expected to deliver revenue of $7.4 million to RooLife based on services fees and annual sales targets being met over the three-year terms of the contracts. This brings the value of RooLife’s announced contract wins since April 2020 to $11.2 million in total contract value, subject to minimum annual sales targets being met for each contract. These contracts are expected to deliver revenue through FY21 and into FY22 and FY23.

RooLife Group Limited 68 Milligan Street, Perth, WA, 6000 ACN: 613 410 398

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STRONGLY GROWING REVENUE PROFILE WITH ANNOUNCED DEALS

The Company’s contracted revenue consists of contracted monthly services revenue and expected product sales revenue. Recent store launches are achieving the internal expectation for product sales growth and revenue.

Store Launches and Sales Update

Three new Tmall online stores were established and soft launched with clients Nuria Beauty from the U.S.A., COLAB Dry Shampoo from the United Kingdom and New Zealand’s AFT Pharmaceuticals Kiwi Health Store in preparation for the December Quarter.

Nuria Tmall Flagship (U.S.A) - launched late August 2020 https://nuria.tmall.hk

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RooLife Group Limited 68 Milligan Street, Perth, WA, 6000 ACN: 613 410 398

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COLAB Tmall Flagship (United Kingdom) - launched late September 2020 https://colab.tmall.hk

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The Nuria Beauty and COLAB Dry Shampoo stores have experienced strong traction with Chinese consumers, highlighted by impressive month-on-month sales growth since launch. The Company expects growth to continue through the December Quarter.

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Sales Growth achieved following launch of Nuria and COLAB Tmall Stores in August

With the launch of AFT Pharmaceuticals’ Kiwi Health Tmall Specialty Store in late October in addition to impending launch of e-Commerce stores for Total Beauty Network’s INIKA cosmetics brand and BLIS Technologies ’ key oral probiotics products, the Company is well placed to deliver revenue growth for the December Quarter.

RooLife Group Limited 68 Milligan Street, Perth, WA, 6000 ACN: 613 410 398

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Contract Wins in 2020

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April May July Aug Sep
2020 2020 2020 2020 2020
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AFT Pharmaceuticals’ Kiwi Health Tmall Specialty Store – won July 2020 and officially launched October 2020

https://kiwihealthbjp.tmall.hk

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Following the end of the Quarter RooLife launched Kiwi Health, a New Zealand-branded health and wellbeing store on Alibaba’s Tmall Global marketplace with the support of Alibaba Group and New Zealand Trade and Enterprise (NZTE) .

The Kiwi Health store, launched in advance of and in preparation for Alibaba’s 11.11 Global Shopping Festival, markets and sells a range of health and well-being products online in China. The store aims to leverage the strong brand awareness of AFT’s product range under the “Kiwi’s thinking about health” branding and the regard for New Zealand products in China.

The store launch was recognised by Alibaba Group’s Managing Director in Australia and New Zealand, Maggie Zhou , who noted the time was right for New Zealand brands to think about expanding their reach in the China market: “We are delighted to see the launch of the Kiwi Health Tmall Global Flagship Store. New Zealand products have a strong reputation and remain a popular choice with consumers in China who care more about their health and wellness than ever before.”

RooLife Group Limited 68 Milligan Street, Perth, WA, 6000 ACN: 613 410 398

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The Kiwi Health Store project is also supported by New Zealand Trade and Enterprise (NZTE) , the New Zealand government's international business development agency with New Zealand Trade and Enterprise’s General Manager Customers, Lisa Thompson commenting, “COVID-19 has accelerated the importance of having a strong digital strategy, so exporters can meet their consumers where and however they shop. We are really pleased to be working alongside AFT Pharmaceuticals in this space. It is fantastic to see them set up their flagship store on Tmall and we hope it is the beginning of ongoing success.”

RooLife provides the digital marketing, store operation and product distribution for AFT Pharmaceuticals products on the Alibaba’s Tmall Global platform, China’s largest cross-border marketplace. RooLife allows International brands and retailers to reach Chinese consumers, build brand awareness and gain valuable consumer insights.

BLIS Technologies – won August 2020

In August RooLife was appointed by NZX listed BLIS Technologies Ltd (NZX:BLT) as its exclusive Cross Border e-Commerce service provider for China.

Under the terms of the three-year contract, RooLife is to provide digital marketing services to promote and sell BLIS Technologies’ key oral probiotics products including the number 1 selling product in the throat lozenge category New Zealand Pharmacies[1] .

The agreement to establish and launch another Alibaba Tmall store will add to RooLife’s revenue base and provides RooLife a mixture of monthly service fees and product sales revenue from marketing and selling products within the BLIS PROBIOTICS™ range.

The contract, which is subject to ongoing sales performance milestones, is expected to deliver total revenue for the RooLife Group of approximately $2.7m over a three year period if minimum sales targets, which are scaled up each year, are met.

Total Beauty Network – won September 2020

During the Quarter RooLife was appointed as the exclusive Cross Border e-Commerce provider for China by Total Beauty Network (“TBN”) to market and sell its highly successful cosmetics brand INIKA .

Total Beauty Network (www.tbn.com.au) produces and markets beauty brands with a focus on healthy cosmetics, using the highest quality ingredients across premium and value brands. In addition to INIKA (www.inikaorganic.com), the TBN brand portfolio includes Designer Brands (DB), Colour by TBN, and Raww Cosmetics.

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RooLife to market and sell Total Beauty Network’s INIKA products

RooLife Group Limited 68 Milligan Street, Perth, WA, 6000 ACN: 613 410 398

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RooLife’s role is to manage the INIKA brand in China and be responsible for all brand management requirements of Total Beauty Network and to provide digital marketing services to promote and sell the highly successful and multi award-winning cosmetic brand.

The agreement, to establish and launch INIKA’s Alibaba Tmall store, will further add to RooLife’s revenue base and provide RooLife a mixture of monthly service fees and product sales revenue from marketing and selling the INIKA range of products.

The contract, which is subject to sales and performance milestones, is expected to deliver total revenue for the RooLife Group of approximately $2.5m over a three year period if minimum sales targets, which are scaled up each year, are met.

Corporate and Financial Position

Revenue for the September Quarter was $940k with cash receipts totalling $828k consisting of $600k in receipts from customers and Government grants totalling $228k.

During the Quarter the Company completed a placement of securities to sophisticated and professional investors of Sequoia Corporate Finance Pty Ltd (“Sequoia”) to raise $766,397 before costs. In addition, the Company announced a non-renounceable entitlement issue and shortfall offer to shareholders to raise $5,492,518 which was completed following the end of the Quarter. Pleasingly, the demand for the Shortfall Offer was approximately $8.3m, far exceeding the $3,867,946 shortfall on offer.

Payments for staff and administration and corporate costs were $694k and $115k with the total in line with the prior Quarter.

The Company also made payments totalling $75k during the period to settle prior obligations of the QBID business.

Attached is the Appendix 4C for the FY20 September Quarter including reporting of payments to related parties as disclosed at Item 6 showing payments to Directors for agreed services/fee and salary arrangements split as follows:

Fees paid to Non-Executive Directors were $24,090.

Fees paid to Executive Directors during the Quarter totalled $99,900.

Payments totaling $8,000 were made to Murcia Pestell Hillard Pty Ltd, a company related to Mr. Grant Pestell, for the provision of legal services.

ENDS

1. Source: BLIS Technologies ThroatGuard Pro – IRI sales data

Issued by : RooLife Group Ltd. Authorised by: The Board of RooLife Group Ltd

For further information, please visit the RooLife Group website at www.roolifegroup.com.au or contact:

Bryan Carr Peter Nesveda Managing Director Corporate Affairs & International Investor Relations Ph: +61 8 6444 1702 Ph: +61 3 9504 8420 or +61 412 357 375 Email: hello@RooLifeGroup.com.au Email: peter@intuitiveaustralia.com.au

About RooLife Group Ltd (ASX:RLG)

RooLife Group Limited 68 Milligan Street, Perth, WA, 6000

ACN: 613 410 398

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The RooLife Group of companies provides fully integrated digital marketing and customer acquisition services focusing on driving online sales of products and services for its clients. With a key focus on driving sales in Australia and China the company’s online e-Commerce marketplace assists businesses to sell directly to Chinese consumers and accept payment via the Alipay mobile payments platforms. RooLife’s key positioning is about knowing and remaining connected with Chinese consumers, allowing brands to continually sell products to Chinese consumers based on their profiles and purchasing behaviours.

RooLife Group Limited 68 Milligan Street, Perth, WA, 6000 ACN: 613 410 398

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Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

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Roolife Group Limited
ABN Quarter ended (“current quarter”)
14 613 410 398 30 SEPTEMBER 2020
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 600 600
1.2 Payments for
- -
(a) research and development
(b) product manufacturing and operating (443) (443)
costs
(c) advertising and marketing (150) (150)
(d) leased assets - -
(e) staff costs (694) (694)
(f) administration and corporate costs (115) (115)
1.3 Dividends received (see note 3) - -
1.4 Interest received 1 1
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives 228 228
1.8 Other (provide details if material) (115) (115)
1.9 Net cash from / (used in) operating (688) (688)
activities
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) entities - -
(b) businesses - -
(c) property, plant and equipment (8) (8)
(d) investments - -
- -
(e) intellectual property
(f) other non-current assets - -
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ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow 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
2.2 Proceeds from disposal of:
- -
(a) entities
- -
(b) businesses
- -
(c) property, plant and equipment
- -
(d) investments
- -
(e) intellectual property
(f) 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) 32 32
2.6 Net cash from / (used in) investing 24 24
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities
(excluding convertible debt securities) 766 766
3.2 Proceeds from issue of convertible debt - -
securities
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of (59) (59)
equity securities or convertible debt
securities
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 (provide details if material) - -
3.10 Net cash from / (used in) financing 707 707
activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 1,343 1,343
4.2 Net cash from / (used in) operating (688) (688)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities 24 24
(item 2.6 above)
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ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow 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
4.4 Net cash from / (used in) financing activities 707 707
(item 3.10 above)
4.5 Effect of movement in exchange rates on 4 4
cash held
4.6 Cash and cash equivalents at end of 1,390 1,390
period
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 1,390 1,343
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of 1,390 1,343
quarter (should equal item 4.6 above)
6. Payments to related parties of the entity and their Current quarter
associates $A'000
6.1 Aggregate amount of payments to related parties and their 132 [1]
associates included in item 1
6.2 Aggregate amount of payments to related parties and their -
associates included in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of,
and an explanation for, such payments
1 Payments totalling $124,000 were made to directors for fees and superannuation on fees.
Payments totalling $8,000 were made to Murcia Pestell Hillard Pty Ltd, a company related to Mr. Grant
Pestell, for the provision of legal services.
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ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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

7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. 7.1 Loan facilities 7.2 Credit standby arrangements 7.3 Other (please specify) 7.4 Total financing facilities	Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 - - 50 - - - 50 -

• 7.5 Unused financing facilities available at quarter end

50

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

Business Overdraft Facility of $49,999 with Australia and New Zealand Banking Group Limited (ANZ) at an interest rate of 10.45%. The facility is unsecured and has no fixed maturity date.

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8. Estimated cash available for future operating activities $A’000
8.1 Net cash from / (used in) operating activities (Item 1.9) (688)
8.2 Cash and cash equivalents at quarter end (Item 4.6) 1,390
8.3 Unused finance facilities available at quarter end (Item 7.5) 50
8.4 Total available funding (Item 8.2 + Item 8.3) 1,440
8.5 Estimated quarters of funding available (Item 8.4 divided by 2
Item 8.1)
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• 8.6 If Item 8.5 is less than 2 quarters, please provide answers to the following questions:

• Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: Not applicable

1. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: Not applicable

1. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Not applicable

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow 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.

29 October 2020 Date:

...................................................................................

Authorised by: ...................................................................................

(Bryan Carr – CEO/Managing Director)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow 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 cash flow 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. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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