New Zealand Coastal Seafoods : Appendix 4E and Annual Report

28 August 2020

Annual Report

2020 Financial Year Highlights

NZCS Expands into Nutraceuticals

• Completed the acquisition of KDI, a New Zealand based developer of innovative nutraceutical products and services, including ingredient supply, quality and validation, as well as formulation and development, providing the Company with immediate access to the high growth nutraceutical market.

High Value Purchase Agreements

• Strategic one year Supply Agreement with German Company, Dr. Behr ("Dr. Behr") for the sale of green lip mussel powders and oils, with the opportunity to further expand revenues as the Company develops additional products.
• NZ$4.4m (approximately AU$4.29m) purchase agreement with SuperMilkBaba (NZ) Limited ("SMB"), for the sale of a minimum of 100 tonnes of frozen Ling Maw over a 12 month period.
• NZ$400,000 (approx. AU$377,000) purchase agreement with Good Health Product Limited, for the sale of a minimum of 4,000 kilograms of Nutraceutical Oyster Powder over a 12 month period, with opportunities to expand order quantities.

Further Sales and International Expansion

• Purchase orders received for NZ$120,000 of Astaxanthin Oil from an existing KDI customer, New Zealand Health Manufacturing, and a new US based customer, Elevate Health Sciences.
• US Food and Drug Administration Listing Approval to export products to the United States and European Union Listing Approval received.
• Initial Astaxanthin trial order shipped to a leading nutraceutical manufacturer in Japan.

Processing and Production Facility

• NZCS moved to the new upgraded and expanded processing and production facility.

PRINCIPAL AND	OPERATIONS	CONTACT
REGISTERED OFFICE	7 Bolt Place	E [e-mail]
Suite 5 CPC	Christchurch Airport	P [phone]
145 Stirling Highway	Christchurch 8053
Nedlands, WA	New Zealand	ASX CODE: NZS
Australia, 6009
ABN: 16 124 251 396		www.nzcs.co

• Risk Management Programme ("RMP") approval received for Company's new upgraded and expanded processing and production.
• NZCS received delivery of a new milling machine used to produce nutraceutical products

NZCS Branded Product Range

• Development of NZCS branded ready to eat product range, with these products being sold direct to consumers in NZCS retail packaging.
• Agreement with Reach China for the distribution of the Company's ready to eat and nutraceutical product range in Australia, Hong Kong and China.
• Export order received from BuyNatural for the NZCS branded ready to eat product range.
• Launch of flagship e-commerce portal on the Company's website.

Corporate

• NZCS successfully listed on the ASX following a capital raise of $5 million.
• Andrew Peti was appointed Chief Executive Office following his appointment as Chief Operating Officer in September 2019.
• Rob Wells appointed as Chief Financial Officer.
• Anna-LeeFraser appointed to the newly created role of Head of Sales.
• NZCS conducted a rights issue raising a total of $1.819m, to fund the Company's growth strategy going forward.

Leading secondary producer of nutraceutical, seafood products and premium marine ingredients New Zealand Coastal Seafoods Limited (ASX:NZS) ("NZCS", the "Company") presents its Appendix 4E, Annual Report and accompanying commentary for the period ending 30 June 2020.

Authority:

This announcement has been approved by Winton Willesee, Non-Executive Chairman.

Further information:
Aldo Miccio		Jane Morgan
Executive Director		Investor Relations Advisor
New Zealand Coastal Seafoods Limited	Jane Morgan Management
Email: [e-mail]		Email: [e-mail]
Tel. [phone]		Tel. [phone]
PRINCIPAL AND	OPERATIONS	CONTACT
REGISTERED OFFICE	7 Bolt Place	E [e-mail]
Suite 5 CPC	Christchurch Airport	P [phone]
145 Stirling Highway	Christchurch 8053
Nedlands, WA	New Zealand	ASX CODE: NZS
Australia, 6009
ABN: 16 124 251 396		www.nzcs.co

About New Zealand Coastal Seafoods

New Zealand Coastal Seafoods (NZCS) is a New Zealand based, ASX listed, secondary producerof nutraceutical, seafood products and premium marine ingredients. The Company recently acquired Kiwi Dreams International Limited (KDI), a leading developer of innovative nutraceutical products and services including ingredient supply, quality and validation, as well as formulationand development.

Through the development of Nutraceutical projects, NZCS has recognised significant opportunities in this high growth market, with the global Nutraceutical market estimated at US$230.9 billion in 2018.1

Harnessing the countries reputation for pure, pristine waters and fisheries provenance, NZCS utilise raw ingredients sourced from New Zealand's finest deep sea fishing companies, employinga nose-to-tailphilosophy to create a range of high-valueproducts.

The Company's mission is to share the sought-after flavours of sustainably-sourced, nutritious, healthy and organic goodness of New Zealand's seafood with Asian consumers, throughexpanding distributor, wholesale and consumer channels.

NZCS's growth strategy is focused on the development of a new nutraceutical product range and increasing production and sales of its flagship, collagen-rich, dried ling maw range and developing high-value ready-to-eat,FMCG products for export into new and existing markets.

1 https://www.bccresearch.com/market-research/food-and-beverage/nutraceuticals-global-markets.html

PRINCIPAL AND	OPERATIONS	CONTACT
REGISTERED OFFICE	7 Bolt Place	E [e-mail]
Suite 5 CPC	Christchurch Airport	P [phone]
145 Stirling Highway	Christchurch 8053
Nedlands, WA	New Zealand	ASX CODE: NZS
Australia, 6009
ABN: 16 124 251 396		www.nzcs.co

New Zealand Coastal Seafoods Limited

Appendix 4E

Preliminary final report

Company details

Name of entity:	New Zealand Coastal Seafoods Limited
ABN:	16 124 251 396
Reporting period:	For the year ended 30 June 2020
Previous period:	For the year ended 30 June 2019
Results for announcement to the market			$'000
Revenues from ordinary activities	up	10.7%		1,514
Loss from ordinary activities after tax attributable to the members of New
Zealand Coastal Seafoods Limited	up	3519.7%	to	6,805
Loss for the year attributable to the members of New Zealand Coastal
Seafoods Limited	up	3519.7%	to	6,805

Dividends

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

Comments

The loss for the Company after providing for income tax amounted to $6,805,020 (30 June 2019: loss of $188,397).

During the year the Company incurred non-cash expenses of $4,381,689 relating to the acquisition of NZCS Operations Ltd. Under the provisions of AASB 2 Share based payment the transaction was treated as a reverse acquisition - refer to Note 2 of the attached financial report.

Net tangible assets

Reporting Previous

period period

Cents Cents

Net tangible assets per ordinary security (cents)	0.27		nil

Attachments

Additional Appendix 4E disclosure requirements can be found in the director's report and the 30 June 2020 financial statements and accompanying notes.

This report is based on the financial statements which have been audited by Crowe Perth.

Signed

___________________________

Winton Willesee

Director

28 August 2020

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