Asia Wealth Group Holdings Ltd - Audited Results to 28 February 2017

FOR IMMEDIATE RELEASE  1 August 2017

Asia Wealth Group Holdings Limited
("Asia Wealth" or the "Company")

AUDITED RESULTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2017

The Board is pleased to report the Audited Results of Asia Wealth Group Holdings Limited for the Financial Year from 1 March 2016 to 28 February 2017. These accounts have been prepared in accordance with the NEX Rules and contain an audit opinion which is qualified only in respect of the possible effects of the Group's investment in Ray Alliance not having been assessed for impairment. The Accounts will shortly be available on the NEX website, http://www.nexexchange.com or via the Company’s website, www.asiawealthgroup.com and extracts are set out below and in Appendix 1.

Chairman’s Statement

The Company reports a consolidated loss of US$110,395 (last year (US$150,068)),

Whilst the Board is disappointed with the consolidated results for the sixth financial year of the Company, it is working hard to restore the Company’s to profitability and has identified several new areas of business expansion opportunities in South East Asia and with a few groups in North America and in Europe. The Company’s main source of income, Meyer Asset Management Ltd, achieved a net profit of US$163,817 (last year US$119,959) and continues to show a satisfactory performance, despite difficult trading conditions. 

The Board remains focused on further acquisitions and partnerships in Europe and the Americas as well as the south-east Asian region. The Board has a cash surplus to seek further acquisitions and is currently looking at businesses in the Fintech space.

I would again like to thank the Company’s staff for their hard work throughout the year and shareholders for their support and we look forward to taking advantage of the opportunities which we expect to encounter in the forthcoming year.

The Directors do not recommend the payment of a dividend for the year ended 29 February 2016.

Richard Cayne
Chairman

The Directors of the Company accept responsibility for the content of this announcement.

Contacts:

Richard Cayne (Chairman and CEO)
Asia Wealth Group Holdings Limited, +66 (0) 2611-2561
Guy Miller (Corporate Advisers)
Peterhouse Corporate Finance Limited, +44 (0) 20 7469 0930
www.asiawealthgroup.com

Consolidated Statement of Financial Position
For the year ended 29 February 2017

Expressed in U.S.Dollars

                                                           2017        2016

Non-current assets

Fixed assets                                             31,697      41,266

Investment property                                     380,246           —

Goodwill                                                      —      11,815

                                                        411,943      53,081

Current assets

Cash and cash equivalents                               869,147   1,281,923

Trade receivables                                       215,041     268,828

Loans and other receivables                             133,046      45,843

Due from related party                                       97           —

Prepayments and other assets                             96,352     110,959

Available-for-sale investment                           318,162     318,162

Investment in associate                                       —           —

                                                      1,631,845   2,025,715

Total assets                                        $ 2,043,788   2,078,796

Equity

Share capital                                           913,496     913,496

Share-based payment reserve                              10,708      35,423

Consolidation reserve                                   405,997     405,997

Translation reserve                                     (9,317)    (15,919)

Accumulated deficit                                   (372,081)   (302,692)

Total equity attributable to equity holders of the

Parent Company                                          948,803   1,036,305

Equity attributable to non-controlling interests       (17,552)     (1,201)

Total equity                                            931,251   1,035,104

Non-current liabilities

Liabilities under finance lease agreement                18,245      26,032

Current liabilities

Trade payables                                          927,954     933,698

Due to related parties                                   59,966      10,911

Liabilities under finance lease agreement                 7,017       7,868

Deferred revenue                                          1,958       1,911

Other payables and accrued expenses                      97,397      63,272

                                                      1,094,292   1,017,660

Total liabilities                                     1,112,637   1,043,692

Total equity and liabilities                        $ 2,043,788 $ 2,078,796

Consolidated Statement of Comprehensive Income
For the year ended 29 February 2017

Expressed in U.S.Dollars

                                                   2017        2016

Revenue

Commission income                             1,517,797   1,202,336

Rental income                                     9,058           —

                                              1,526,855   1,202,336

Expenses

Commission expense                              880,977     534,638

Professional fees                               283,976     341,119

Directors’ fees                                 218,902     216,418

Bad debt expense                                 76,188      44,100

Wages and salaries                               51,037      49,681

Travel and entertainment                         50,058      65,363

Office expense                                   40,395      45,663

Depreciation                                     20,017      28,569

Marketing                                        15,805      48,204

Rent                                             14,115      14,277

Bank charges                                      6,401       6,682

Communications expense                            2,919       3,029

Other expenses                                   22,209      13,159

                                              1,682,999   1,410,902

Net loss from operations                      (156,144)   (208,566)

Other income/(expenses)

Gain on disposal of fixed assets                  5,684           —

Share of loss of associate company             (29,382)           —

Impairment of goodwill                         (11,815)           —

Foreign currency exchange (loss)/gain          (19,387)      56,491

Other income                                    101,986       6,456

                                                 47,086      62,947

Net loss before finance costs                 (109,058)   (145,619)

Finance costs

Interest expense                                  1,337       4,449

Net loss before taxation                      (110,395)   (150,068)

Taxation                                              —           —

Total comprehensive loss                    $ (110,395) $ (150,068)

Total comprehensive loss attributable to:

Equity holders of the Parent Company           (94,104)   (135,919)

Non-controlling interest                       (16,291)    (14,149)

                                            $ (110,395) $ (150,068)

Loss per share attributable to the equity
holders of the Parent Company:

Basic loss per share                        $ (0.00823) $ (0.01189)

Diluted loss per share                      $ (0.00812) $ (0.01142)

Consolidated Statement of Cash Flows
For the year ended 29 February 2017

Expressed in U.S.Dollars

                                                              2017        2016

Operating activities

Total comprehensive loss                                 (110,395)   (150,068)

Adjustments for:

Bad debt expense                                            76,188      44,100

Depreciation                                                20,017      28,569

Gain on disposal of fixed assets                           (5,510)           —

Share of loss of associate company                          29,382           —

Impairment of goodwill                                      11,815           —

Foreign currency exchange loss                              23,002      13,307

Operating income/(loss) before changes in operating         44,499    (64,092)
assets and liabilities

Changes in operating assets and liabilities:

Increase in trade receivables                             (22,401)    (39,445)

Increase in loan and other receivables                    (87,203)    (45,843)

Decrease/(increase) in prepayments and other assets         14,607    (22,768)

Decrease in trade payables                                 (5,744)   (249,448)

Decrease in liabilities under finance lease agreements     (8,638)    (19,299)

Increase in deferred revenue                                    47       1,911

Increase in other payables and accrued expenses             34,125       1,295

Cash flows used in operating activities                   (30,708)   (437,689)

Investing activities

Acquisition of subsidiary                                        —    (28,987)

Acquisition of associate                                  (29,382)           —

Acquisition of investment property                       (387,939)           —

Acquisition of fixed assets                                (2,755)       (910)

Disposal of fixed assets                                     5,510           —

Cash flows used in investing activities                  (414,566)    (29,897)

Financing activities

Net advances from related party                             48,958      32,746

Cash flows from financing activities                        48,958      32,746

Net decrease in cash and cash equivalents                (396,316)   (434,840)

Effects of exchange rate fluctuations on cash and cash    (16,460)      21,179
equivalents

Cash and cash equivalents at beginning of year           1,281,923   1,695,584

Cash and cash equivalents at end of year               $   869,147 $ 1,281,923

Cash and cash equivalents comprise cash at bank.