AdvanceTC : Annual Financial Report for the Year Ended 31 December 2021

AdvanceTC Limited and Controlled Entities

ACN 600 238 444

Annual Report

For the Year Ended 31 December 2021

AdvanceTC Limited and controlled entities

ACN 600 238 444

Table of Contents

31 December 2021

	Page
Corporate Information	1
Chief Executive Officer's Report	2
Directors' Report	3
Auditor's Independence Declaration under Section 307C of the Corporations Act 2001	18
Consolidated Statement of Profit or Loss and Other Comprehensive Income	19
Consolidated Statement of Financial Position	20
Consolidated Statement of Changes in Equity	21
Consolidated Statement of Cash Flows	22
Notes to the Consolidated Financial Statements	23
Directors' Declaration	33
Independent Auditor's Report	34
Additional Information for Listed Public Companies	36

AdvanceTC Limited and controlled entities

ACN 600 238 444

Corporation Information

31 December 2021

Directors

HooiBeng Lim (Chair)

Cheng PhengLoi

GimKeongLee

Jonathan Yeow Koon Loi

Chee Tuck Cho

Chee Seng Cho

Jeffrey William King

Zi Xin Kang

Company Secretary

Chee Seng Cho

Registered Office and Principal Place of Business

Level 12, Grosvenor Place

225 George Street

SydneyNSW2000

Australia

B-01-08, Sunway Nexis,

Jalan PJU 5/1,

Kota Damansara,

47810 PetalingJaya, Selangor D.E.

Malaysia

Share Registry

Boardroom Pty Ltd

Level 12, Grosvenor Place

225 George Street

SydneyNSW2000

Australia

Solicitors

Messrs Hall & Wilcox

Rialto South Tower

Melbourne VIC 3000

Australia

Bankers

HSBC Malaysia Berhad

8th Floor, South Tower

No 2, Leboh Ampang,

50100 Kuala Lumpur, Malaysia

Commonwealth Bank of Australia

48, Martin Place,

Sydney NSW 2000

Australia

Auditors

LNP Audit and Assurance Pty Ltd

Level 8, 309 Kent Street,

SydneyNSW2000

Australia

AdvanceTC Limited shares are listed on the National Stock Exchange of Australia (NSX code A88)

1

AdvanceTC Limited and controlled entities

ACN 600 238 444

Chief Executive Officer's Report

31 December 2021

Dear Shareholders,

This year was focused on commercialization and raising adequate equity fund to finance the development and commercialization of our new products.

For the past 2 years we have also been working hard to gain access to the US Capital market. This year, we succeeded to get A88 traded at the US OTCQB trade counter. In order to tap the major US Capital market, we are now working to uplift to the NASDAQ stock exchange.

Late last year we secured the support of a leading Investment Bank ( EF Hutton) to assist with uplifting us to the NASDAQ. We have also appointed two experienced US legal counsels to help us ensure NASDAQ uplifting success. We are working to uplift the Company in the near future subject to standard Q&A from the Securities and Exchange Commission, and other matters.

While preparing to list on NASDAQ, on-going internal equity fund raising program is helping us cover operating costs and to ready our products for commercial shipment.

Our new innovative satellite hybrid smart phone devices are aimed at both the growing satellite communication and the larger cellular smart phone mobile telecoms market segments.

We expect the satellite communication mobile device segment will hugely expand this year as market begins to realize the advantage of global telecom connectivity. This is evidenced by the huge investments during the last 3 years to expand dramatically existing satellite bandwidth.

We are pioneering innovative products to give consumers better product choices and at much lower cost to expand the satellite communication market. The growing satellite operators and existing terrestrial operators will look to us to provide them the devices they need to tap this fast-growing satellite bandwidth.

The increasing satellite bandwidth will rapidly contribute to lower pricing and mass adoption. Since we are providing unique hybrid satellite mobile devices with satellite and Android smart phone cellular connectivity, we have a unique market leadership advantage. We also support Digital Mobile Radio, making our new smart phones truly unique hybrid communicator devices capable of keeping users connected via any terrestrial or space communication service.

As we gain additional equity funding from our own on-going programs and from our Nasdaq uplifting, we will be able to take full advantage of the huge business opportunity we created with satellite hybrid mobile telecom devices that can straddle the growing satellite market and the huge cellular smart phone consumer and professional markets.

Yours sincerely,

Cheng Pheng Loi

Chief Executive Officer, Director

15 March 2022

2

AdvanceTC Limited and controlled entities

ACN 600 238 444

Directors' Report

For the Year Ended 31 December 2021

The Directors present their report, together with the financial statements of the Group, being AdvanceTC Limited (the Company) and its controlled entities (the Group), for the financial year ended 31 December 2021.

DIRECTORS AND SECRETARY

The following were the Directors of the Company during the financial year, unless otherwise stated.

Hooi Beng Lim, Non-Executive Chairman and Independent Non-executive Director

Mr. Lim has extensive business connections in Asia Pacific Region with 20 years of experience in financial services. He has participated in various international diplomatic activities including Malaysia and Philippines diplomacy via Abubakar Peace Economic Zone (APEZ) in the year 2005. Mr. Lim has wide experience especially in the area of business development and investment strategies. Mr. Lim has extensive business connections in Asia Pacific Region.

Cheng Pheng Loi, Group Chief Executive Officer Executive Director, Audit and Risk Committee and Remuneration Committee

Mr Loi is one of the founding members of the Company having served since its inception in 2005. He has more than 30 years of experience in sales & marketing and business dealing in the mobile wireless telecommunication sector. Mr Loi holds a Bachelor of Economics, majoring in Business Administration from the University of Malaya.

Gim Keong Lee, Group Chief Operating Officer and Executive Director, Audit and Risk Committee and Remuneration Committee

Mr Lee has more than 29 years of operation experience, involving factory operations, particularly in Procurement, Quality Control, Cost Control and Manufacturing. He is a co-inventor of the Group's Core Technology patent. Mr Lee worked with Panasonic Group Malaysia for 21 years and was the Chairman / Vice Chairman of various sub groups. Mr Lee is a regular Invited Guest Speaker on Work Places for the Malaysian National Institute of Occupational, Safety and Health Organisation (NIOSH). Mr Lee holds in house Matsushita certifications. He oversees operations in the Manufacturing, Procurement and Marketing unit of the Group.

Jonathan Yeow Koon Loi, Chief Technology Officer, Member of Tech Advisory Panel and Executive Director

Mr. Loi is one of the founding members of the Company, and the lead author and co-inventor of the Company's Core Technology patent. Mr. Loi has extensive knowledge and experience in hardware and software user interfaces, user experience and firewall systems. His other experiences include developing customised firewall software and consulting for software companies. Mr Loi holds a diploma in Computing and Information Technology from Asia Pacific Institute of Information Technology.

Chee Tuck Cho, Independent Non-executive Director, Audit and Risk Chair and Remuneration Chair

Mr. Cho was a Senior Executive in the Finance IT division with Sime Darby Plantation SdnBhd, managing bio-metric solutions and Weighbridge security-based user authentication system project. Prior to that, he was a Senior System Analyst with Kumpulan Guthrie Berhad. Mr. Cho holds an IDPM Higher Diploma (UK), Systematic Higher Diploma and NCC Diploma (UK) in Computing Computer Studies. He is also an associate member of the Institute of the Management of Information Systems.

Chee Seng Cho, Independent Non-executive Director and Company Secretary, Audit and Risk Committee and Remuneration Committee

Mr. Cho is an engineer by profession with more than 22 years of experience in the engineering field especially in the oil and gas sector. He was a deputy manager, project manager, and senior project engineer for various companies in design and building facilities for oil gas and mining industries. Mr. Cho holds a Technician Diploma in Mechanical Engineering from Singapore Polytechnic.

Jeffrey William King, Independent Non-executive Director

Mr. Jeffrey is an experienced CFO and Company Secretary with extensive financial reporting and broad commercial skills. Strategic commercial thinker with strong business development background. Complimentary experience in corporate finance, capital raising and markets. Sound communication skills with internal and external stakeholders, and easy rapport with Boards and ability to provide strong reliable advice. An ability to resolve, and provide solutions for technical and financial issues. Highly experienced in R&D law and tax issues. Mr. Jeffrey holds Institute of Chartered Accountants Australia and New Zealand (CAANZ), Diploma of Business (Accounting) Swinburne University Advanced Diploma of Management.

Zi Xin Kang, Independent Non-executive Director

Miss. Kang has experienced for various corporate planning, perform in-dept financial analysis, including industry analysis, comparative valuation and conducted due diligence exercise on potential business. Miss. Kang holds a Bachelor of Science (Honours) Degree in Accounting and Financial Management from University of Hull and a Master's Degree of Finance and Investment from the University of Nottingham, United Kingdom.

3