WISEWAY GROUP LIMITED — Interim / Quarterly Report 2021

Feb 23, 2021

WISEWAY GROUP LIMITED ABN 26 624 909 682

APPENDIX 4D

WISEWAY GROUP LIMITED For the period ended 31 December 2020

Details of reporting period

Current reporting period 1 July 2020 to 31 December 2020 Prior reporting period 1 July 2019 to 31 December 2019

Results for announcement to the market

Wiseway Group Limited (“Company”) and its subsidiaries, presents its results for the period 1 July 2020 to 31 December 2020. The Group’s revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months ended 31 December 2020 were $69,661,000 (1 July to 31 December 2019: $45,056,000) and $6,472,000 (1 July to 31 December 2019: $104,000) respectively. The profit for the Group for the six months ended 31 December 2020 after providing for income tax amounted to $3,441,000 (1 July 2019 to 31 December 2019: loss of $4,862,000).

Reconciliation of statutory profit/(loss) for the period to EBITDA

Proft/(loss) for the period Interest Depreciation expense Tax EBITDA	Six months ended 31 December 2020 $'000 3,441 744 2,615 (328) 6,472	Six months ended 31 December 2019 $'000 (4,862) 857 2,535 1,574 104	Movement $'000 8,303 (113) 80 (1,902)
			6,368

	Six months ended	Six months ended
	31 December 2020	31 December 2019	Change
Statutory financial results	$'000	$'000	%
Revenue from ordinary activites	69,661	45,056	55%
Profit/(loss) from ordinary activities after
tax attributable to members	3,441	(4,862)	171%
Net profit/(loss) for the period attributable
to members	3,361	(4,862)	169%
	Six months ended	Six months ended
	31 December 2020	31 December 2019	Change
	Cents	Cents	%
Basic profit/(loss) per share	2.45	(3.63)	168%
Diluted profit/(loss) per share	2.45	(3.63)	168%

1

WISEWAY GROUP LIMITED ABN 26 624 909 682

Dividends

There were no dividends recommended, declared or paid during the current reporting period.

Net tangible assets

Six months ended Six months ended 31 December 2020 31 December 2019 Cents Cents Net tangible assetsper security 7.24 2.41	Change % 200%

Audit qualification or review

The financial statements have been reviewed by KPMG and the Independent Auditors’ Review Report is included as part of the Interim Financial Report attached.

Attachments

This Appendix 4D is provided in accordance with ASX Listing Rule 4.2A and is to be read in conjunction with the Interim Financial Report for the current period ended 31 December 2020, where additional disclosures are provided, and any market announcements made by the Company in accordance with continuous disclosure obligations.

The interim financial report is attached below.

Signed:

==> picture [123 x 76] intentionally omitted <==

Roger Tong Director Wiseway Group Limited Dated at Sydney this 23rd day of February 2021

2

WISEWAY GROUP LIMITED ABN 26 624 909 682

INTERIM FINANCIAL REPORT

31 DECEMBER 2020

WISEWAY GROUP LIMITED ABN 26 624 909 682 CONTENTS

Directors’ Report…………………………………………………………………………………………………………….………………...3 Lead Auditor’s Independence Declaration……………………….………………………………………...……………………...6 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income………………......7 Condensed Consolidated Statement of Financial Position………………..……………………………………..………….8 Condensed Consolidated Statement of Changes in Equity…………….……………………………………………………9 Condensed Consolidated Statement of Cash Flows..……………………………………………………….………………..11 Notes to the Condensed Consolidated Financial Statements..…………………………………………………………..12 Directors’ Declaration…………………..………………………………………………………………………………………………….20 Independent Auditor’s Review Report….………………………………………………………………………………………….21 Corporate Directory……………………..………………………………………………………………………………………………….23

2

WISEWAY GROUP LIMITED ABN 26 624 909 682

DIRECTORS’ REPORT

The Directors present their report together with the consolidated financial statements of the Group, comprising of Wiseway Group Limited (the “Company”) and its controlled entities, for the six months ended 31 December 2020 and the auditor’s review report thereon.

1. Directors

The Directors of the Company at any time during or since the end of the financial reporting period are:

Michael Hughes Independent Non‐Executive Chairman Appointed on 30 April 2019 Stephen Chan Independent Non‐Executive Director Appointed on 16 March 2018 Lin Xu Non‐Executive Director Appointed on 1 November 2019 Florence Tong Executive Director and Managing Appointed on 16 March 2018 Director Roger Tong Executive Director and Chief Executive Appointed on 16 March 2018 Officer

2. Principal activities

The principal activities of the Group during the financial reporting period were the movement of goods by freight to cater to the needs of those interstate or overseas. There were no significant changes in the nature of the activities of the Group during the financial reporting period.

3. Review of operations

a) Financial results

The Group’s revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months ended 31 December 2020 were $69,661,000 (1 July 2019 to 31 December 2019: $45,056,000) and $6,472,000 (1 July 2019 to 31 December 2019: $104,000) respectively. The profit for the Group for the six months ended 31 December 2020 after providing for income tax amounted to $3,441,000 (1 July 2019 to 31 December 2019: loss of $4,862,000).

Proft/(loss) for the period Interest Depreciation expense Tax EBITDA	Six months ended 31 December 2020 $'000 3,441 744 2,615 (328) 6,472	Six months ended 31 December 2019 $'000 (4,862) 857 2,535 1,574 104	Movement $'000 8,303 (113) 80 (1,902)
			6,368

3

WISEWAY GROUP LIMITED ABN 26 624 909 682

DIRECTORS’ REPORT

3. Review of operations (continued)

b) Leveraging on investments

Wiseway’s investments over FY20 in people, infrastructure and our operations resulted in increased market share in perishables – exporting seafood, fresh milk, chilled meat, and fresh produce. To accommodate future growth, we have opened a Business Support Office in Guangzhou, China. This new office is in addition to our Shanghai office.

Our customs‐bonded warehouses in all major cities in Australia and New Zealand have provided an advantage over other freight forwarders who do not have this capability.

The strength of the business comes from Wiseway’s integrated operating platform supporting multiple logistics services that can be combined without our customers having to change service providers.

The first half of FY21 has been a period of growth in both volume weight and revenue compared to prior year. This is a direct result from our FY19 investment pipeline including bonded warehouses, airway, accreditation for Perishable supply and obtaining operational licences in Auckland. Wiseway has been focusing on improving operations through enhanced SOPs, increasing investment in our staff across our new divisions Perishables, Imports, China and New Zealand to meet demand.

c) COVID‐19 Update

As an essential service provider during the COVID‐19 pandemic, Wiseway has continued to operate its import and export services between Australia and Asia. Flight restrictions imposed by the Australian Government (1 Feb 2020) have caused disruption to established Australia‐Asia trade pathways, as the cargo space previously available on passenger airlines is no longer available. Wiseway recognised the opportunity in this disruption to demonstrate its leadership in Australian‐Chinese trade relations. It has leveraged its relationships with airlines, shipping lines and local trucking companies, to ensure customers’ cargo can still get in and out of Asia through a combination of alternative routes. With both Australian and Chinese customers turning to Wiseway for help in finding solutions to this difficult logistical challenge, Wiseway has been able to gain new customers and demonstrate their primacy in Australia‐Asia trade logistics to a new audience. In the new environment, Wiseway secured cargo space by chartering flights. This has significantly increased Wiseway’s capability to continue servicing demand for air freight.

Wiseway has implemented operational ‘COVID‐19 safe’ procedures and have been able to continue operations and service customers across Australia, including those in Victoria throughout the period of the State’s border closure.

d) Outlook

Currently, demand for logistics services remains high. However, due to the unprecedented nature of this global pandemic, this may vary as the situation develops over time. The breadth and depth of our diversified logistics services, our highly experienced management team, and the risk management plans we have put in place, position Wiseway to actively manage its operations and maximise its outcomes in the prevailing operating environment. The Board and Management of Wiseway are focused on supporting our employees, customers, broader community and international trade during these anxious and difficult times. Wiseway will continue to update the market as and when necessary.

4

WISEWAY GROUP LIMITED ABN 26 624 909 682

DIRECTORS’ REPORT

4. Events after the reporting period

The secured loan facility of $5,000,000 was fully repaid on 4 January 2021 and is available for redraw.

Wiseway Group Limited senior management have identified Los Angeles, USA as a suitable location for the company’s next phase of expansion in FY21 Q4. A greenfield strategy has been identified, similar to the strategy undertaken to expand into the New Zealand market in FY19.

No other matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods.

5. Rounding

The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/ Directors’ Reports) Instrument 2016/191 and in accordance with that instrument, amounts in the condensed consolidated interim financial statements and directors’ report have been rounded off to the nearest thousand dollars, unless otherwise stated.

6. Lead auditor’s independence declaration

The Lead auditor’s independence declaration is set out on page 6 and forms part of the Directors’ report for the six months ended 31 December 2020.

Signed in accordance with a resolution of the directors:

==> picture [143 x 75] intentionally omitted <==

==> picture [123 x 76] intentionally omitted <==

Florence Tong Executive Director and Managing Director

Roger Tong

Executive Director and Chief Executive Officer

Dated at Sydney this 23rd day of February 2021

5

==> picture [90 x 67] intentionally omitted <==

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To the Directors of Wiseway Group Limited

I declare that, to the best of my knowledge and belief, in relation to the review of Wiseway Group Limited for the interim period ended 31 December 2020 there have been:

• i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• ii. no contraventions of any applicable code of professional conduct in relation to the review.

==> picture [62 x 37] intentionally omitted <==

==> picture [76 x 37] intentionally omitted <==

KPMG Malcolm Kafer Partner Sydney 23 February 2021

6

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

WISEWAY GROUP LIMITED ABN 26 624 909 682

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 31 December 2020

Six months ended 31 December 2020 Note $'000 Revenue 6 69,661 Direct transport and logistics expenses (51,520) Employee benefit expenses 7 (9,388) Occupancy expenses (460) Depreciation expense (2,615) Administration and other expenses (1,821) Operating profit/(loss) 3,857 Finance costs (744) Profit/ (loss) before tax 3,113 Income tax benefit/(expense) 8 328 Profit/ (loss) for the period 3,441 Other comprehensive income Items that are or may be reclassified subsequently to profit or loss Foreign operations ‐ foreign currency translation differences (80) Other comprehensive (loss)/income for the period (80) Total comprehensive (loss)/income for the period 3,361 Profit/ (loss) attributable to: Owners of the Company 3,495 Non‐controlling interests (54) 3,441 Total comprehensive income attributable to: Owners of the Company 3,415 Non‐controlling interests (54) 3,361 Basic earnings per share (cents) 2.45 Diluted earnings per share (cents) 2.45	Six months ended 31 December 2019 $'000 45,056 (33,892) (8,807) (412) (2,535) (1,841)
	(2,431)
	(857)
	(3,288)
	(1,574)
	(4,862)
	‐
	‐
	(4,862)
	(4,845) (17)
	(4,862)
	(4,845) (17)
	(4,862)
	(3.63) (3.63)

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

7

WISEWAY GROUP LIMITED

ABN 26 624 909 682

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2020

31 December 2020 Note $'000 Assets Current assets Cash and cash equivalents 9 12,414 Trade and other receivables 10 8,706 Inventories 120 Current tax assets ‐ Other assets 2,686 Total current assets 23,926 Non‐current assets Financial assets 451 Property, plant and equipment 11 42,400 Deferred tax assets 1,280 Total non‐current assets 44,131 Total assets 68,057 Liabilities Current liabilities Trade and other payables 12 8,750 Loans and borrowings 13 9,748 Employee benefits 1,155 Provisions 23 Current tax liabilities 84 Total current liabilities 19,760 Non‐current liabilities Loans and borrowings 13 20,861 Employee benefits 190 Total non‐current liabilities 21,051 Total liabilities 40,811 Net assets 27,246 Equity Share capital 14 26,027 Share‐based payments reserve 1,458 Foreign currency translation reserve (48) Retained earnings/(accumulated losses) (260) Equity attributable to owners of the Company 27,177 Non‐controlling interests 69 Total equity 27,246	30 June 2020 $'000 8,607 8,299 120 866 1,663
	19,555
	451 43,184 ‐
	43,635
	63,190
	6,530 10,171 1,020 23 ‐
	17,744
	21,548 150
	21,698
	39,442
	23,748
	26,027 1,458 32 (3,755)
	23,762
	(14)
	23,748

The above statement of financial position should be read in conjunction with the accompanying notes.

8

WISEWAY GROUP LIMITED

ABN 26 624 909 682

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 31 December 2020

			Retained
		Share‐based	earnings /		Non‐
		payments	(accumulated		controlling
	Note Share capital	reserve	losses)	Total	interests	Total equity
	$'000	$'000	$'000	$'000	$'000	$'000
Balance at 1 July 2020	26,027	1,458	(3,755)	23,762	(14)	23,748
Comprehensive income
Profit for the period	‐	‐	3,495	3,495	(54)	3,441
Other comprehensive income for the
period	‐	‐	‐	(80)	137	57
Total comprehensive income for the
period	**‐ **	**‐ **	3,495	3,415	83	3,498
Transactions with owners, in capacity as
owners	‐	‐	‐	‐	‐	‐
Total transactions with the owners	**‐ **	**‐ **	**‐ **	**‐ **	**‐ **	**‐ **
Balance at 31 December 2020	26,027	1,458	(260)	27,177	69	27,246

The above statement of changes in equity should be read in conjunction with the accompanying notes.

WISEWAY GROUP LIMITED

ABN 26 624 909 682

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 31 December 2019

				Retained
			Share‐based	earnings /		Non‐
			payments	(accumulated		controlling
	Note Share capital		reserve	losses)	Total	interests	Total equity
		$'000	$'000	$'000	$'000	$'000	$'000
Balance at 1 July 2019		21,487	1,370	(355)	22,502	36	22,538
Comprehensive income
Loss for the period		‐	‐	(4,845)	(4,845)	(17)	(4,862)
Total comprehensive income for the
period		**‐ **	**‐ **	(4,845)	(4,845)	(17)	(4,862)
Transactions with owners, in capacity as
owners
Issue of ordinary shares	14	4,540	‐	‐	4,540	‐	4,540
Share‐based payments		‐	57	‐	57	‐	57
Total transactions with the owners		4,540	57	**‐ **	4,597	**‐ **	4,597
Balance at 31 December 2019		26,027	1,427	(5,200)	22,254	19	22,273

The above statement of changes in equity should be read in conjunction with the accompanying notes.

10

WISEWAY GROUP LIMITED ABN 26 624 909 682

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 31 December 2020

Six months ended 31 December 2020 Note $'000 Cash flows from operating activities Cash receipts from customers 69,235 Cash paid to suppliers and employees (60,956) Cash generated from operating activities 8,279 Interest received 6 2 Interest paid (744) Income taxes paid ‐ Net cash from/(used in) operating activities 7,537 Cash flows from investing activities Proceeds from sale of property, plant and equipment ‐ Acquisition of property, plant and equipment (1,509) (Acquisition)/disposal of other investments ‐ Net cash (used in) investing activities (1,509) Cash flows from financing activities Proceeds from issue of share capital 14 ‐ Proceeds from loans and borrowings 4,961 Repayment of loans and borrowings (5,000) Payment of finance lease liabilities (1,580) Payment of lease liabilities (786) Net cash (used in)/from financing activities (2,405) Net increase/(decrease) in cash and cash equivalents 3,623 Cash and cash equivalents at beginning of the period 8,607 Effects of movements in exchange rates on cash held 184 Cash and cash equivalents at end of the period 12,414	Six months ended 31 December 2019 $'000 47,922 (49,822)
	(1,900) 10 (857) (342)
	(3,089)
	19 (1,033) 270
	(744)
	4,540 1,339 (428) (1,747) (860)
	2,845
	(988) 4,628 ‐
	3,640

The above statement of cash flows should be read in conjunction with the accompanying notes.

11

WISEWAY GROUP LIMITED ABN 26 624 909 682

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 31 December 2020

1. Corporate information

The condensed consolidated interim financial statements for the six months ended 31 December 2020 comprises of Wiseway Group Limited (the “Company”) and its controlled entities (the “Group”). The address of the Company’s registered office is 39‐43 Warren Avenue, Bankstown, NSW 2200. The Company is a listed public company, incorporated and domiciled in Australia.

2. Basis of preparation

These interim financial statements are general purpose financial statements prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 . They do not include all of the information required for a complete set of annual financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual consolidated financial statements as at and for the year ended 30 June 2020. The full accounting policies of the Group are set out in the latest financial report for the year ended 30 June 2020.

The current period is for the six months ended 31 December 2020. The comparative half year is for the period 1 July 2019 to 31 December 2019.

These interim financial statements were authorised for issue by the Group’s Board of Directors on 23 February 2021.

The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/ Directors’ Reports) Instrument 2016/191 and in accordance with that instrument, amounts in the condensed consolidated financial statements and directors’ report have been rounded off to the nearest thousand dollars, unless otherwise stated.

3. Use of judgements and estimates

In preparing these interim financial statements, Management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgements made by Management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual financial statements.

4. Changes in significant accounting policies

The accounting policies applied in these interim financial statements are the same as those applied in the Group’s consolidated financial statements as at and for the year ended 30 June 2020.

12

WISEWAY GROUP LIMITED ABN 26 624 909 682 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 31 December 2020

5. Operating segments

The Group manages its operations as a single business operation and there are no parts of the Group that qualify as operating segments under AASB 8 Operating Segments. The Managing Director and Chief Executive Officer (Chief Operating Decision Maker or ‘CODM’) assesses the financial performance of the Group on an integrated basis only and accordingly, the Group is managed on the basis of a single segment, being the provision of freight forwarding services.

6. Revenue

The Group’s operations and main revenue streams are those described in the last annual financial statements. The Group generates revenue primarily from the provision of freight forwarding services to its customers. Other sources of revenue include interest income from term deposits and rental income.

Revenue from contracts with customers Other revenue Interest income Other income Total revenue	Six months ended 31 December 2020 $'000 69,414 2 245 247 69,661	Six months ended 31 December 2019 $'000 44,725 10 321
		331
		45,056

a) Disaggregation of revenue

In the following table, revenue from contracts with customers is disaggregated by business division.

Air freight ‐ general cargo Air freight ‐ perishables Sea freight Road freight General cargo and eCommerce imports	Six months ended 31 December 2020 $'000 49,533 11,108 2,699 1,769 4,305 69,414	Six months ended 31 December 2019 $'000 38,064 2,388 1,344 1,127 1,802
		44,725

13

WISEWAY GROUP LIMITED ABN 26 624 909 682

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 31 December 2020

7. Employee benefit expenses

Salaries and wages Contractor costs Contributions to superannuation funds Increase in employee benefits Other employee expenses	Six months ended 31 December 2020 $'000 4,528 3,804 364 172 520 9,388	Six months ended 31 December 2019 $'000 4,454 3,534 404 158 257
		8,807
8. Income taxes a) Amounts recognised in profit or loss
Current tax expense Deferred tax benefit Deferred tax (benefit)/expense Income tax expense (benefit)/expense	Six months ended 31 December 2020 $'000 952 (1,280) (328)	Six months ended 31 December 2019 $'000 ‐
		1,574
		1,574
b) Reconciliation of effective tax rate
Profit/(loss) before tax Tax using the Group's domestic Australian tax rate of 30% Tax effect of: Non‐deductible expenses Recognition of/(write off) of previously unrecognised temporary differences	Six months ended 31 December 2020 $'000 3,113 (934) (18) 1,280 328	Six months ended 31 December 2019 $'000 (3,288)
		986 13 (999)
		0

14

WISEWAY GROUP LIMITED ABN 26 624 909 682

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 31 December 2020

9. Cash and Cash Equivalents

9. Cash and Cash Equivalents
Bank balances	31 December 2020 $'000 12,414	30 June 2020 $'000 8,607
10. Trade and other receivables
Trade receivables Less: Provision for doubtful debts Net trade receivables Net GST receivables Other receivables	31 December 2020 $'000 8,829 (898) 7,931 428 347 8,706	30 June 2020 $'000 8,070 (725)
		7,345 312 642
		8,299

15

WISEWAY GROUP LIMITED ABN 26 624 909 682

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 31 December 2020

11. Property, plant and equipment

Cost Balance at 30 June 2020 Additions Addition of right‐of‐use assets Balance at 31 December 2020 Accumulated depreciation Balance at 30 June 2020 Depreciation Balance at 31 December 2020 Carrying amounts At 31 December 2020	Land and buildings Right‐of‐use assets Leasehold improvements Plant and equipment Motor vehicles Total $'000 $'000 $'000 $'000 $'000 $'000 11,327 19,873 6,415 3,706 11,998 53,319 ‐ ‐ 84 72 1,353 1,509 ‐ 322 ‐ ‐ ‐ 322
	11,327 20,195 6,499 3,778 13,351 55,150
	(714) (2,068) (1,140) (729) (5,484) (10,135) (283) (1,034) (348) (214) (736) (2,615)
	(997) (3,102) (1,488) (943) (6,220) (12,750)
	10,330 17,094 5,011 2,835 7,131 42,400
Cost Balance at 30 June 2020 Accumulated depreciation and impairment losses Balance at 30 June 2020 Carrying amounts Balance at 30 June 2020	Land and buildings Right‐of‐use assets Leasehold improvements Plant and equipment Motor vehicles Total $'000 $'000 $'000 $'000 $'000 $'000
	11,327 19,873 6,415 3,706 11,998 53,319
	(714) (2,068) (1,140) (729) (5,484) (10,135)
	10,613 17,805 5,275 2,977 6,514 43,184

12. Trade and other payables

12. Trade and other payables
Trade payables Other payables	31 December 2020 $'000 1,188 7,562 8,750	30 June 2020 $'000 5,017 1,513
		6,530

16

WISEWAY GROUP LIMITED ABN 26 624 909 682 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 31 December 2020

13. Loans and borrowings

Current liabilties Finance lease liabilities Lease liabilities Loans from related parties Secured bank loans DNO Premium Funding Loan	31 December 2020 $'000 2,722 1,613 25 5,204 184 9,748	30 June 2020 $'000 2,739 1,511 921 5,000 ‐
		10,171
Non‐current liabilities Finance lease liabilities Lease liabilities	4,660 16,201 20,861	4,822 16,726
		21,548

The Group has a secured loan facility of AUD $5,000,000 of which AUD $5,000,000 was utilised at 31 December 2020 (30 June 2020: $5,000,000). The secured bank loan facility is secured over the assets of Wiseway Group Limited and Wiseway Logistics Pty Ltd. The bank loan expires in 2022 at a nominal interest rate of 2.61%.

The secured loan facility was fully paid down during the period and was then redrawn on 29 December 2020. The loan was subsequently fully repaid on 4 January 2021 and is available for redraw.

a) Lease liabilities

Lease liabilities are payable as follows:

Less than one year Between one and five years More than five years	Future minimum lease payments 31 December 2020 $'000 5,505 12,403 12,463 30,371	Total future Interest 31 December 2020 $'000 (1,170) (2,342) (1,663) (5,175)	Present value of minimum lease payments 31 December 2020 $'000 4,335 10,061 10,800
			25,196

17

WISEWAY GROUP LIMITED ABN 26 624 909 682

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 31 December 2020

Less than one year Between one and five years More than five years	Future minimum lease payments 30 June 2020 $'000 5,459 14,890 11,055 31,404	Total future Interest 30 June 2020 $'000 (1,209) (3,010) (1,387) (5,606)	Present value of minimum lease payments 30 June 2020 $'000 4,250 11,880 9,668
			25,798

14. Capital and reserves

14. Capital and reserves
Date Details 1 July 2020 Opening balance 31 December 2020 Closing balance	31 December 31 December 31 December 2020 2020 2020 No. Issue price $'000 140,318,769 ‐ 26,027
	140,318,769 26,027
Date Details 1 July 2019 Opening balance 27 August 2019 Ordinary shares issued ‐ AZ Global 30 October 2019 Ordinary shares issued ‐ employees 30 June 2020 Closing balance	30 June 30 June 30 June 2020 2020 2020 No. Issue price $'000 121,074,003 ‐ 21,487 18,161,100 0.25 4,540 1,083,666 ‐ ‐
	140,318,769 26,027

15. Related parties

A number of these related parties transacted with the Group during the six months ended 31 December 2020. The terms and conditions of the transactions were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to non‐key management personnel related entities on an arm's length basis.

RTF Investment Management Pty Limited as trustee for RFT Trust, a trust of which Roger Tong and Florence Tong are the beneficiaries, provided leased commercial premises to the Group on normal commercial terms and conditions. During the six months ended 31 December 2020, the rental expense incurred by the group payable to the related party was $869,661 (1 July 2019 to 31 December 2019: $762,000).

The Group has historically provided and/or received short‐term loans to or from Roger Tong and Florence Tong. The loans are unsecured, repayable on demand and interest free. As at 31 December 2020 the outstanding balance due from Executive Directors was $24,625 (30 June 2020: due from Executive Directors $463,966).

18

WISEWAY GROUP LIMITED ABN 26 624 909 682

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS

For the six months ended 31 December 2020

16. Contingencies

Bank guarantees	31 December 2020 30 June 2020 $'000 $'000 451 451 451 451

The bank guarantees relate to term deposits provided as security for leases for rented premises.

17. Subsequent Events

The secured loan facility of $5,000,000 was fully repaid on 4 January 2021 and is available for redraw.

Wiseway Group Limited senior management have identified Los Angeles, USA as a suitable location for the company’s next phase of expansion in FY21 Q4. A greenfield strategy has been identified, similar to the strategy undertaken to expand into the New Zealand market in FY19.

No other matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods.

18. COVID 19

As an essential service provider during the COVID‐19 pandemic, Wiseway has continued to operate its import and export services between Australia and Asia. Flight restrictions imposed by the Australian Government (1 Feb 2020) have caused disruption to established Australia‐Asia trade pathways, as the cargo space previously available on passenger airlines is no longer available. Wiseway recognised the opportunity in this disruption to demonstrate its leadership in Australian‐Chinese trade relations. It has leveraged its relationships with airlines, shipping lines and local trucking companies, to ensure customers’ cargo can still get in and out of Asia through a combination of alternative routes. With both Australian and Chinese customers turning to Wiseway for help in finding solutions to this difficult logistical challenge, Wiseway has been able to gain new customers and demonstrate their primacy in Australia‐Asia trade logistics to a new audience. In the new environment, Wiseway secured cargo space by chartering flights. This has significantly increased Wiseway’s capability to continue servicing demand for air freight.

Wiseway has implemented operational ‘COVID‐19 safe’ procedures and have been able to continue operations and service customers across Australia, including those in Victoria throughout the period of the State’s border closure.

19

WISEWAY GROUP LIMITED ABN 26 624 909 682

DIRECTORS’ DECLARATION

In the opinion of the directors of Wiseway Group Limited (the "Company"):

• a) the condensed consolidated financial statements and notes set out on pages 7 to 19 are in accordance with the Corporations Act 2001, including:

• i) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001;

• ii) giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its performance for the six month period ended on that date;

• iii) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors:

==> picture [121 x 64] intentionally omitted <==

Florence Tong Executive Director and Managing Director

==> picture [123 x 76] intentionally omitted <==

Roger Tong Executive Director and Chief Executive Officer

Dated at Sydney this 23rd day of February 2021

20

==> picture [113 x 83] intentionally omitted <==

Independent Auditor’s Review Report

To the shareholders of Wiseway Group Limited

Report on the Interim Financial Report

Conclusion

We have reviewed the accompanying Interim Financial Report of Wiseway Group Limited.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the Interim Financial Report of Wiseway Group Limited does not comply with the Corporations Act 2001 , including:

• giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its performance for the Interim period ended on that date; and

• complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

The Interim Financial Report comprises:

• Condensed consolidated statement of financial position as at 31 December 2020;

• Condensed consolidated statement of profit or loss and other comprehensive income, Condensed consolidated statement of changes in equity and Condensed consolidated statement of cash flows for the Interim period ended on that date;

• Notes 1 to 18 comprising a summary of significant accounting policies and other explanatory information; and

• The Directors’ Declaration.

The Group comprises Wiseway Group Limited (the Company) and the entities it controlled at the Interim period’s end or from time to time during the Interim period.

The Interim period is the 6 months ended on 31 December 2020.

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report.

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

21

==> picture [74 x 55] intentionally omitted <==

Responsibilities of the Directors for the Interim Financial Report

The Directors of the Company are responsible for:

• the preparation of the Interim Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001

• such internal control as the Directors determine is necessary to enable the preparation of the Interim Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Review of the Interim Financial Report

Our responsibility is to express a conclusion on the Interim Financial Report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the Interim Financial Report does not comply with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2020 and its performance for the Interim period ended on that date, and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of an Interim Financial Report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

==> picture [63 x 37] intentionally omitted <==

KPMG

==> picture [75 x 37] intentionally omitted <==

Malcolm Kafer Partner Sydney 23 February 2021

22

WISEWAY GROUP LIMITED ABN 26 624 909 682

CORPORATE DIRECTORY

Directors

Michael Hughes Independent Non‐Executive Chairman

Stephen Chan Independent Non‐Executive Director

Lin Xu Non‐Executive Director

Florence Tong Executive Director and Managing Director

Roger Tong Executive Director and Chief Executive Officer

Company secretary

Florence Tong Company Secretary

Registered Office

Wiseway Group Limited 39‐43 Warren Avenue Bankstown NSW 2000

Auditor

KPMG

Level 38, Tower 3 International Towers Sydney 300 Barangaroo Avenue Sydney NSW 2000

Share Registry

Link Market Services Limited Level 12, 680 George Street Sydney NSW 2000

23