ROOLIFE GROUP LTD — Interim / Quarterly Report 2022

Oct 31, 2021

1 November 2021

Quarterly Activities Report and Appendix 4C for the Period Ended 30 September 2021

Quarter Highlights

Revenue & Income	Cash Receipts	EBIT		Cash Holdings
S4.25M	$1.9M	(S355k)		$2.2M$
$+$ $3.23M v Q1 FY21 $+$ 353%	$+$ $1.3M v Q1 FY21 $+$ 216%	+ $175k v Q1 FY21	+33%	Working Capital
+353% v Q1 FY21	+216% v Q1 FY21	+33% v Q1 FY21		$4.6M$

• RLG's 4th consecutive quarter of record revenue, growing product sales through RLG's technology platform connecting global producers & brands to consumers
• Sales growth and cost management delivering improved EBIT performance of ($355k) a 33% improvement on 1Q FY2021 ($530k) as the company focusses on profitability
• Direct to consumer food store launched post end of Quarter and achieving strong sales growth in October 2021, on Pinduoduo social e-commerce platform accessing its over 850 million active buyers

• Strong working capital position to drive future growth with net current assets of $4.6m

e-Commerce and digital marketing company RooLife Group Ltd (ASX: RLG) ("RLG" or the "Company") is pleased to provide shareholders with the Company's Quarterly Activities Report and Appendix 4C for the Quarter ended 30 September 2021 (the "Quarter").

RLG's technology platform manages the sale of food, beverages and health and wellbeing products, matching consumer demand with businesses and producers seeking to enter and sell into growth markets connecting global producers and brands directly to consumers.

RLG's marketplace platform links consumers with brands and facilitates transaction control via its cloudbased operational dashboard with real-time visibility of inventory, consumer purchases and preferences with sales data and other business intelligence, managing sales from order to buyer through direct-toconsumer online store integration.

The Company continued the development and roll out of its technology platform marketplace and launched its direct-to-consumer food store in October 2021 selling products and utilising RLG's database of proven social media influencers and key social e-commerce platforms.

During the Quarter the Company operated and delivered over 60 unique social/ecommerce/direct-to consumer sales engagement events across multiple platforms for its represented brands and products.

RLG platform operation and promotion activities during the Quarter

In line with the model and reach of Pinduoduo, China's largest online shopping platform in terms of the number of active users totalling over 850 million1, RLG's store and marketplace platform connect farmers and distributors with consumers directly through interactive shopping experience in a combination of group buying and social shopping where users can share their purchases on social media and can form a team to achieve a lower purchase price for shoppers and drive sales volume for RLG.

RLG is achieving strong sales growth from the first product line launched, with the Company expecting to continue to expand the range of products sold through the platform over the coming months.

Users can share on social media what they have browsed or purchased and can form a team to achieve a lower price by encouraging friends to purchase and buy collectively in greater volumes.

A sample of the influencers and live streaming delivered by RLG during the Quarter

The Company now represents and sells a growing number of quality products and international brands from Australia, New Zealand, USA, Europe, UK and South America, selling online and directly to consumers with the technology and sales infrastructure necessary for products and brands to sell at scale.

Continued Strong Sales Revenue Growth

RLG has delivered its fourth consecutive quarter of record revenue with $4.25m achieved in the September Quarter which is 353% improvement from 1Q FY2021 ($939k), with a 33% improvement in EBIT performance to ($355k) from that comparable period, 1Q FY2021 ($530k), as the company focuses on its drive towards profitability.

RLG expects that this strong sales performance will continue through FY2022, supported by the Company's current balance sheet.

RLG's revenue mix is increasingly progressing from marketing services fees to scalable product sales, validating its vision of being a platform between global suppliers and Chinese consumers. Initial investment in sales channels is already seeing rapid revenue growth and increased sales efficiency as the Company continues to add new online stores and distribution channels.

4th Consecutive Quarter of Record Revenue – up 353% Quarter on Quarter FY21 to FY22

Growing Revenue, Increasing Efficiency, Ongoing Cost Management to Drive towards Profitability

The Company recorded $4.25m unaudited revenue for the Quarter with cash receipts of $1.90m. RLG closed the Quarter with cash of $2.2m plus receivables (net of liabilities) and prepayments totalling $1.9m which are driving product sales with payments already received in October with the balance expected to convert to cash receipts in the December Quarter. This position means the Company is well positioned to continue delivering strong results.

RLG Net Current Asset Position$4.6m
$2.2m	$1.2mPrepayments/Deposits
Cash	$0.7mReceivables (Net ofLiabilities)	$0.45mInventory

Cash	$2,200,000
Receivables (Net of Liabilities)	700,000
Inventory	450,000
Prepayments/Deposits	$1,200,000
Total	$4,600,000

Payments for staff costs in the quarter totalled $740k and administration and corporate costs were $299k in the September quarter.

Advertising and marketing expenditure was $356k for the Quarter, in line with the prior Quarter.

Attached is the Appendix 4C for 4Q FY2021 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 $26,805 and fees paid to Executive Directors during the Quarter totalled $136,875.

Payments totalling $6,300 were made to Murcia Pestell Hillard Pty Ltd, a company related to Mr. Grant Pestell, for the provision of legal services.

ENDS

1. Source:www.forbes.com/sites/palashghosh/2021/03/17/pinduoduo-is-now-chinas-biggest-e-commerce-platform-as-billionairechairman-colin-huang-steps-down/?sh=2b853b6d62b1), www.chinainternetwatch.com/31102/pinduoduo-quarterly

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

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

Appendix 4C

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

Name of entity

RooLife Group Limited

14 613 410 398 30 Sep 2021

ABN Quarter ended ("current quarter")

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (3months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	1,903	1,903
1.2	Payments for
	(a)research and development	-	-
	(b)product manufacturing and operatingcosts	(3,795)	(3,795)
	(c)advertising and marketing	(356)	(356)
	(d)leased assets	-	-
	(e)staff costs	(740)	(740)
	(f)administration and corporate costs	(299)	(299)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	1	1
1.5	Interest and other costs of finance paid	(1)	(1)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	(9)	(9)
1.8	Other (provide details if material)	(128)	(128)
1.9	Net cash from / (used in) operatingactivities	(3,424)	(3,424)

2.		Cash flows from investing activities
2.1		Payments to acquire or for:
	(a)	entities	-	-
	(b)	businesses	-	-
	(c)	property, plant and equipment	(2)	(2)
	(d)	investments	-	-
	(e)	intellectual property	(55)	(55)
	(f)	other non-current assets	-	-

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (3months)$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)	106	106
2.6	Net cash from / (used in) investingactivities	49	49

3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities(excluding convertible debt securities)	1,702	1,702
3.2	Proceeds from issue of convertible debtsecurities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues ofequity securities or convertible debtsecurities	(4)	(4)
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financingactivities	1,698	1,698

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	3,815	3,815
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(3,424)	(3,424)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	49	49

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (3months)$A'000
4.4	Net cash from / (used in) financing activities(item 3.10 above)	1,698	1,698
4.5	Effect of movement in exchange rates oncash held	64	64
4.6	Cash and cash equivalents at end ofperiod	2,202	2,202

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	2,202	3,815
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	2,202	3,815

6.	Payments to related parties of the entity and theirassociates	Current quarter$A'000
6.1	Aggregate amount of payments to related parties and theirassociates included in item 1	1701
6.2	Aggregate amount of payments to related parties and theirassociates 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 anexplanation for, such payments.

1Payments totalling $164,000 were made to directors for fees and superannuation on fees.

Payments totalling $6,000 were made to Murcia Pestell Hillard Pty Ltd, a company related to Mr. Grant Pestell, for the provision of legal services.

7.	Financing facilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity.	Total facilityamount at quarterend$A'000	Amount drawn atquarter end$A'000
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	50	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	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, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities 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 GroupLimited (ANZ) at an interest rate of 10.45%. The facility is unsecured and has no fixedmaturity date.

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (item 1.9)	(3,424)
8.2	Cash and cash equivalents at quarter end (item 4.6)	2,202
8.3	Unused finance facilities available at quarter end (item 7.5)	50
8.4	Total available funding (item 8.2 + item 8.3)	2,252
8.5	Estimated quarters of funding available (item 8.4 divided byitem 8.1)	0.66

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.

• 8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions:
  • 8.6.1 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: No, as a consequence of a strong period of growth and sales in the September Quarter the company has, in addition to cash on hand, receivables, prepayments and inventory of $4.8m of which 70%, or more than $3.3m, is expected to be received as cash payments in the December Quarter.

8.6.2 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: The Company does not require any further capital raising to fund its operations, however the Company engages on an ongoing basis with strategic sales channel partners in the markets in which it operates regarding potential strategic investment based on alignment of interests.

8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Yes. Please refer to 8.6 Item 1.

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

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.

Date: 1 November 2021

Authorised by: The Board of RooLife Group Ltd

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.
• 1. 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.
• 1. 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.
• 1. 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".
• 1. 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.