Asian Citrus : ANNUAL REPORT 2018/19

CONTENTS

Financial Highlights	2
Chairman's Statement	3
Management Discussion & Analysis	5
Directors and Senior Management Profile	14
Directors' Report	16
Corporate Governance Report	24
Environmental, Social and Governance Report	33
Independent Auditors' Report	47
Consolidated Statement of Profit or Loss	65
Consolidated Statement of Profit or Loss and	66
Other Comprehensive Income
Consolidated Statement of Financial Position	67
Consolidated Statement of Changes in Equity	69
Consolidated Statement of Cash Flows	71
Notes to the Consolidated Financial Statements	72
Five Year Financial Summary	135
Company Information	136

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FINANCIAL HIGHLIGHTS

RESULTS OF OPERATIONS
	For the year ended 30 June
	2019	2018	% change
	(RMB Million)	(RMB Million)
Reported financial information
52.8
Revenue	54.2	-2.6
Other income	8.6	3.5	145.7
EBITDA	552.0	-210.0	362.9
Profit/(loss) before tax	541.6	-221.8	344.2
Profit/(loss) attributable to shareholders	541.6	-221.8	344.2
Basic earnings/(loss) per share (RMB)	0.433	-0.177	344.6
FINANCIAL POSITION	119.7
Total assets	167.0
Net current assets/(liabilities)	22.9	-530.1
Cash and cash equivalents	18.3	54.7
Shareholders' fund	105.4	-433.3
Current ratio (x)	2.60	0.12

2	ASIAN CITRUS HOLDINGS LIMITED • ANNUAL REPORT 2018/19

CHAIRMAN'S STATEMENT

Dear Shareholders,

On behalf of the board (the "Board") of directors (the "Directors") of Asian Citrus Holdings Limited (the "Company", together with its subsidiaries, the "Group"), I wish to report on the latest development, progress and the annual results of the Group for the year ended 30 June 2019 to the shareholders of the Company.

BUSINESS REVIEW

The Chinese gross domestic product had reached a growth rate of 6.6% in 2018 and remained steady in the first half of 2019. Benefited from the relevant policies promulgated by the People's Republic of China (the "PRC") government for the development of agriculture industry, including the National Plan for Agricultural Modernization (2016-2020),the National Plan for Development of Rural Economy During the 13th Five-year,and the Regional Layout Plan for Competitive Agricultural Products, the agriculture industry in the PRC has become one of most dynamic and fast-growing industries in the world.

With the persevering efforts of the Directors and senior management of the Company, significant progress had been made in the financial year of 2018/19. Firstly, in July 2018 and October 2018, the Company published the outstanding financial results of the Group, being the audited annual results for the years ended 30 June 2016, 2017 and 2018, and the unaudited interim results for the six months ended 31 December 2016 and 2017, respectively. Secondly, the Group completed the disposals of BPG Food & Beverages Holdings Ltd. and its subsidiaries in May 2019 and Newasia Global Limited and its subsidiaries in June 2019, which included all deconsolidated PRC subsidiaries of the Group (details of which are as disclosed in the "Management Discussion and Analysis" section under the sub-section headed "Other Significant Events" in this report).

For the Group's operations, the harvest season of the oranges at the Hepu Plantation (the "Plantation Operation") was in the second half of the financial year. During such harvest period, revenue from the Plantation Operation which amounted to approximately RMB35.5 million was generated for the year ended 30 June 2019. In addition, by leveraging on the networks of the distributors of the Plantation Operation in the various regions of the PRC, the Group had opportunities to approach other distributors who were looking for different types of premium fruit from time to time during the year. As such, in September 2018, the Group commenced the fruit distribution business to cater for the demand for different types of premium fruit in the various regions of the PRC (the "Fruit Distribution Operation"). The revenue generated from the Fruit Distribution Operation amounted to approximately RMB17.3 million for the year ended 30 June 2019.

PROSPECT

The Group has also been actively exploring the feasibility of the plantation of other types of fruit at the Hepu Plantation to enhance the output capacity of the Plantation Operation. The Group engaged Citrus Research Institute of Chinese Academy of Agricultural Sciences (中國農業科學院柑桔研究所) ("CRIC"), which is established by the Ministry of Agriculture of the PRC (中國農業部), to perform a research and analysis for the plantation of dragon fruit in the PRC market. Based on the CRIC's report which indicated the expected growth in the demand for dragon fruit in the PRC in next ten years and the shortage of relevant supply, the Directors are of the view that the plantation of dragon fruit at the Hepu Plantation is feasible and viable, and could improve the revenue for the Plantation Operation. As such, in June 2019, the Group commenced the trial plantation of dragon fruit with a small area at the Hepu Plantation.

On top of the existing wholesale channel for majority of the agricultural products of the Company in the top-tier market in the PRC, the Group will continue to put more effort to strengthen its Fruit Distribution Operation strategically by expanding the distribution channels and networks, which can facilitate the access to potential customers in the different regions of the PRC.

ANNUAL REPORT 2018/19 • ASIAN CITRUS HOLDINGS LIMITED

3

CHAIRMAN'S STATEMENT

APPRECIATION

On behalf of the Board, I would like to express our sincerest gratitude to our valued shareholders, customers and business partners for your persistent support and trust in the Company. I would also like to express our deepest thankfulness to our strong management team and staff for their enduring dedication to the Group during the past years. We look forward to creating a prosperous future of the Group from the financial year of 2019/20 onwards.

Ng Ong Nee

Chairman

30 August 2019

4	ASIAN CITRUS HOLDINGS LIMITED • ANNUAL REPORT 2018/19