Asian Citrus : + 19/03/2019 Financial Statements/ESG Information INTERIM REPORT 2018/2019

CONTENTS

Financial Highlights 2

Chairman's Statement 3

Management Discussion & Analysis 4

Condensed Consolidated Statement of Profit or Loss 13

Condensed Consolidated Statement of 14

Profit or Loss and Other Comprehensive Income

Condensed Consolidated Statement of Financial Position 15

Condensed Consolidated Statement of Changes in Equity 17

Condensed Consolidated Statement of Cash Flows 20

Notes to the Interim Financial Information 21

Other Information 42

Company Information 48

FINANCIAL HIGHLIGHTS

RESULTS OF OPERATIONS

% change
Revenue	9.4	-	100.0
Other income	8.5	3.2	165.6
EBITDA	-5.7	-181.8	-96.9
Loss before tax	-11.2	-186.5	-94.0
Loss attributable to shareholders	-11.2	-186.5	-94.0
Basic loss per share (RMB)	-0.009	-0.149	-94.0
FINANCIAL POSITION
31 December	30 June
2018	2018
(unaudited)	(audited)
(RMB Million)	(RMB Million)
Total assets	132.7	167.0
Net current liabilities	-542.8	-530.1
Cash and cash equivalents	21.1	54.7
Shareholders' fund	-454.3	-433.3
Current ratio (x)	0.08	0.12
ASIAN CITRUS HOLDINGS LIMITED

For the six months ended 31 December 2018 2017

Reported financial information

(unaudited) (unaudited)

(RMB Million) (RMB Million)

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 the Group's latest development and the interim results of the Group for the six months ended 31 December 2018 (the "Review Period").

BUSINESS REVIEW

Year 2018 was a stormy year. There were horrible natural disasters in various countries, continuous global political upheavals and international arguments and tariffs, especially the trade war between the People's Republic of China (the "PRC" or "China") and the United States. Economic growth of China had also slowed in the fourth quarter of the year 2018. Besides these macroeconomic factors, the harvest season of the oranges in the Hepu Plantation started in December 2018. The total revenue of the Group was RMB9.4 million during the Review Period, among which, the trading of high-quality fruit commenced to generate contribution.

With the perseverance effort of the Directors and senior management of the Company, the Group took drastic steps during the past two years, such as the deconsolidation of the uncooperative subsidiaries in the PRC and the restructure of the Group, and had overcome tremendous difficulties and hurdles since September 2016 after the outbreak of the Beihai Minority Disputes (details of which are disclosed in the sub-section titled the same under the section headed "Other Significant Events" in the Management Discussion & Analysis). Eventually, the Group has passed through the darkness towards the morning and is expecting to face the first beam of the dawn. The Company had identified a potential purchaser to acquire certain deconsolidated subsidiaries of the Group and subsequently made a breakthrough step in entering into a conditional sale and purchase agreement to dispose of those deconsolidated subsidiaries to that potential purchaser. Details of such disposal was disclosed in the Company's announcement dated 21 January 2019 and also under the section headed "Significant Event after the Reporting Period" in the Management Discussion & Analysis.

PROSPECTS

The Group continues to develop its principal business in planting, cultivation and sales of agricultural produce by producing and selling high-quality fruit in the market of the PRC. The Group will diversify its agricultural products offering by planting more varieties of seasonal fruit during the suitable season to maximize the annual output capacity of the Hepu Plantation.

On top of the existing wholesale channel for majority agricultural products of the Company in the top-tier markets in the PRC, the Group will put more effort to strengthen its fruit distribution operation strategically by expanding the distribution channels and networks, which can facilitate the access of the potential customers across different provinces in the PRC.

In addition, the Group will continue to identify attractive investment and acquisition opportunities to increase the profitability and shareholders' value of the Company in the foreseeable future.

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 onwards.

Ng Ong Nee

Chairman

28 February 2019

INTERIM REPORT 2018-2019

MANAGEMENT DISCUSSION & ANALYSIS

BUSINESS REVIEW

Asian Citrus Holdings Limited (the "Company", together with its subsidiaries, the "Group") was principally engaged in the business of planting, cultivation and sale of agricultural produce during the six months ended 31 December 2018 (the "Review Period").

During the Review Period, the agricultural business of the Group was operated by two major subsidiaries, Guangxi Hepu Guanhua Agriculture Co., Ltd.* (ᄿГΥऌڿശุ༵Ϟࠢʮ̡) (the "Agriculture Company") and Lucky Team Biotech Development (Hepu) Limited* (л૴͛ي߅Ҧ೯࢝€ΥऌϞࠢʮ̡) ("Lucky Team Hepu"), and a new subsidiary, Shenzhen First Class Fruits Company Limited (ଉέ̹ڿശ˥؈ਠ۬Ϟࠢʮ̡), in the People's Republic of China ("PRC").

The Group recorded a revenue amounted to RMB9.4 million for the Review Period (six months ended 31 December 2017: Nil), representing an increase of 100% when compared to the corresponding period of last year.

On one hand, the Group continued to adopt stringent control on the cultivation costs and other administrative expenses and on the other hand, the Group adopted new business model for the existing business segment. The new subsidiary was established in Shenzhen, the PRC, serving as a new fruit distribution platform of the Group (the "Fruit Distribution Platform"). The Fruit Distribution Platform commenced operation in September 2018 to distribute various high-quality fruit in the PRC and is still at the development stage. The Group will continue to put more effort in the Fruit Distribution Platform and plans to distribute more high-quality fruit sourced from different channels in nearby Asian countries and other provinces in the PRC.

FINANCIAL REVIEW

Revenue

Since the harvest season of the oranges in Hepu Plantation started in December 2018 and the Fruit Distribution Platform generated contribution to the revenue of the Group, the Group recorded a revenue of RMB9.4 million for the Review Period (six months ended 31 December 2017: Nil).

Other Income

During the Review Period, the Group recorded other income in the amount of RMB8.5 million (six months ended 31 December 2017: 3.2 million) of which RMB8.4 million (six months ended 31 December 2017: Nil) was generated from various business cooperation agreements with independent farmers.

Distribution and other operating expenses

During the Review Period, the distribution and other operating expenses of the Group amounted to RMB0.7 million (six months ended 31 December 2017: RMB0.1 million) which comprised of direct harvest and processing-related expenses.

General and administrative expenses

For the Review Period, the general and administrative expenses of the Group amounted to RMB21.4 million (six months ended 31 December 2017: RMB10.9 million) which comprised primarily of salaries, office administration expenses, depreciation charges and legal and professional fees. These expenses increased by 96.3% from RMB10.9 million, mainly attributed to (i) the expenses incurred from the completion of acquisition of the Agricultural Company and the resumption of control of Lucky Team Hepu in late 2017 respectively, (ii) the written off of certain property, plant and equipment located at the Hepu Plantation due to the leasing arrangement of certain area and (iii) the expenses incurred relating to the new Fruit Distribution Platform established in April 2018.

*

For identification purposes only

ASIAN CITRUS HOLDINGS LIMITED