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4 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

5 CHAIRMAN S STATEMENT Dear Shareholders, It is my pleasure to present the annual report for the Global Fortune Investment Limited. The Company is currently focusing on its Horse Rock Project, formerly named Yarri Range Project, development comprising two exploration licenses, E31/859 and E31/887 with a total area of 97.2km² that are prospective for gold exploration, located in the Goldfields of Western Australia. Since listing on ASX, the Company has also been working on increasing its interest in the area having applied for additional exploration tenure in the region. Initial exploration results have been strong and the Company is confident that it can continue to build on its exploration story in the region. The company is seeking to become a multi-tiered Chinese-Australian investment vehicle through its existing interests in its Australian exploration assets. The Company has four subsidiaries in Hong Kong and Australia for supporting the trade between Australia and China. In addition, the Company now has its own e-commerce platform: c2m.net.au, which supplies healthy food from Australia to China consumers. During the year, the Company invested to form a subsidiary to expand its trading operations. The trading operations are showing positive results for the Company in pursuit of its objectives. On behalf of the Board, we thank all GFI stakeholders of their contribution throughout the year, and are grateful to our shareholders for your support. Yours Sincerely, Weiliang Liu Chairman 5 October 2017 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

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12 Table 1. Summary of sampling GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

13 Figure 1. Horse Rock Project Tenure GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

14 Figure Soil and Rock Chip Locations GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

15 Figure Aircore Drilling GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

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17 Figure 4. Sample Locations GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

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19 Figure 5. Bullet Prospect Geology GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

20 Figure 6. Bullet Prospect Cross Section GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

21 Figure 7. Horse Rock Project Tenure on 1:100k geology and total magnetic intensity (TMI) anomaly GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

22 Figure 8. EL 31/859 YARRI -- Dostmund area total magnetic intensity (TMI) anomaly area on 1:100k geology GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

23 Figure 9. Historic drill holes location within EL 31/859 and EL 31/887 by previous explorers - max depth(m). GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

24 Figure 10. Horse Rock Project tenement geology on satellite image. GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

25 Figure 11. Horse Rock Project Complete Spherical Cap Bouguer anomaly on satellite image. GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

26 Figure 12. Horse Rock Project Complete Spherical Cap Bouguer_1VD anomaly on satellite image. GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

27 Figure 13. Horse Rock Project Complete Spherical Cap Elliposoidheight anomaly on satellite image. GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

28 GLOBAL FORTUNE INVESTMENT LIMITED GLOBAL FORTUNE INVESTMENT LIMITED GLOBAL FORTUNE INVESTMENT LIMITED GLOBAL FORTUNE INVESTMENT LIMITED GLOBAL FORTUNE INVESTMENT LIMITED GLOBAL FORTUNE INVESTMENT LIMITED GLOBAL FORTUNE INVESTMENT LIMITED GLOBAL FORTUNE INVESTMENT LIMITED GLOBAL FORTUNE INVESTMENT LIMITED GLOBAL FORTUNE INVESTMENT LIMITED GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

29 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

30 Corporations Act GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

31 - - - GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

32 KEY MANAGEMENT PERSONNEL DIRECTORS W Liu Y Lin Y Kuang POSITION Executive Chairman Managing Director/CEO Non- Executive Director DATE APPOINTED DATE RESIGNED 18 May May CONTRACT DETAILS (DURATION & TERMINATION NOTICE PERIOD) 3 years contract 1 months notice for termination 3 years contract 1 months notice for termination PROPORTION OF ELEMENTS OF REMUNERATION RELATED TO PERFORMANCE Non- Salary cashbased incentives Shares /Units Options /Rights PROPORTION OF ELEMENTS OF REMUNERATION NOT RELATED TO PERFORMANCE Shares /Units Fixed salary /Fees Total % % Jun No fixed term K Li S Li A Stoner Non- Executive Director Non- Executive Director Non- Executive Director 22 Jun No fixed term Jun No fixed term May No fixed term FORMER DIRECTOR S Cheng B Chow B Situ Non- Executive Director Non- Executive Director Non- Executive Director 24 Apr May 2017 No fixed term Oct May 2017 No fixed term Jun May 2017 No fixed term GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

33 SHORT-TERM BENEFITS POST- EMPLOYMENT BENEFITS NAME SALARY & FEES ANNUAL LEAVE OPTIONS SUPER- ANNUATION TOTAL DIRECTORS W Liu 1 16, ,501 Y Lin 2 134,169 22, ,137 12, ,670 A Stoner 3 3, ,985 Y Kuang 7 16, ,501 K Li 8 16, ,501 S Li 9 16, ,501 FORMER DIRECTOR S Cheng 5 18, ,710 19,710 B Chow 4 56, ,403 62,273 B Situ 6 15, ,000 Total 293,682 22, ,137 20, ,642 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

34 30 June 2016 SHORT-TERM BENEFITS POST- EMPLOYMENT BENEFITS NAME SALARY & FEES OTHER SUPER- ANNUATION TOTAL DIRECTORS W Liu 1 18, ,750 Y Lin 2 87,231-8,287 95,518 S Cheng 3 10, ,950 B Chow 4 48,750-4,631 53,381 B Situ 5 7, ,500 Y Kuang 6 7, ,500 K Li 7 7, ,500 S Li 8 7, ,500 FORMER DIRECTOR P So 9 51,692-4,560 56,252 Total 246,423-18, ,851 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

35 DIRECTORS BALANCE 01 July 2016 NET OTHER CHANGE BALANCE ON RESIGNATION BALANCE 30 JUNE 2017 W Liu 2,717,118 18,000-2,735,118 Y Lin 45,057,681 18,000-45,075,681 Y Kuang K Li 218, ,773 S Li A Stoner FORMER DIRECTOR B Chow B Situ S Cheng 1,750, ,750,000 Total 49,743,572 36,000-49,779,572 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

36 2016 DIRECTORS BALANCE 01 July 2015 NET OTHER CHANGE* BALANCE ON RESIGNATION BALANCE 30 JUNE 2016 W Liu 3,580,000 (862,882) - 2,717,118 Y Lin 22,379,475 22,678,206-45,057,681 S Cheng 1,750, ,750,000 B Chow B Situ 2,237,500 (2,237,500) - - Y Kuang K Li 3,580,000 (3,361,227) - 218,773 S Li FORMER DIRECTOR P So 3,500,001 - (3,500,001) - Total 37,026,976 16,216,597 (3,500,001) 49,743,572 *Net other change represents movement in shares prior to the Company being admitted to the Official list of the ASX on 2 February GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

37 BOARD MEETINGS DIRECTOR NUMBER ELIGIBLE TO ATTEND NUMBER ATTENDED W Liu 4 4 E Lin 4 4 S Cheng (resigned 9 May 2017) 4 4 B Chow (resigned 31 May 2017) 4 4 B Situ (resigned 9 May 2017) 4 3 Y Kuang 4 3 K Li 4 4 S Li 4 4 A Stoner - - AUDIT & RISK COMMITTEE NUMBER DIRECTOR ELIGIBLE TO ATTEND NUMBER ATTENDED B Chow (resigned 31 May 2017) 5 5 K Li 5 5 S Cheng (resigned 9 May 2017) 5 5 REMUNERATION COMMITTEE MEETINGS NUMBER DIRECTOR ELIGIBLE TO ATTEND NUMBER ATTENDED Y Kuang 5 4 B Chow (resigned 31 May 2017) 5 5 S Cheng (resigned 9 May 2017) 5 5 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

38 DATE OPTIONS GRANTED NUMBER OF SHARES UNDER OPTION CLASS OF SHARES EXCERCISE PRICE EXPIRY DATE OF OPTIONS 25 November ,000,000 Ordinary November January ,000 Ordinary January 2019 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

39 DIRECTORS REPORT PROCEEDINGS ON BEHALF OF COMPANY No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year. NON-AUDIT SERVICES The Board of Directors has considered the non-audit services provided during the year and is satisfied that the provision of those non-audit services during the year is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 for the following reasons: all non-audit services were subject to the corporate governance procedures adopted by the Company and have been reviewed by the Board to ensure they do not impact upon the impartiality and objectivity of the auditor; and the non-audit services do not undermine the general principles relating to auditor independence as set out in APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board, as they did not involve reviewing or auditing the auditor s own work, acting in a management or decision making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards. Details of the amounts paid to the auditors of the Group for audit and non-audit services provided during the reporting period are set out in Note 5 to the Financial Statements. A copy of the auditor s independence declaration as required under s307c of the Corporations Act 2001 is included on page 38 of the financial report and forms part of the Directors report. Signed in accordance with a resolution of the Board of Directors. Weiliang Liu Chairman Date: 5 October 2017 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

40 5 October 2017 The Board of Directors Global Fortune Investment Limited Level 36, Gateway 1 Macquarie Place SYDNEY NSW 2000 Crowe Horwath Sydney ABN Member Crowe Horwath International Audit and Assurance Services Level 15 1 O'Connell Street Sydney NSW 2000 Australia Tel Fax Dear Board Members Global Fortune Investment Limited In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the Directors of Global Fortune Investment Limited. As lead audit partner for the audit of the financial report of Global Fortune Investment Limited for the financial year ended 30 June 2017, I declare that to the best of my knowledge and belief, that there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. Yours sincerely CROWE HORWATH SYDNEY ASH PATHER Partner 37 Crowe Horwath Sydney is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

41 NOTE Revenue from continuing operations 2 9,877, ,293 Cost of sales (9,731,557) (928,685) Administration costs (303,468) (464,803) Compliance and regulatory costs (182,413) (55,007) Consultancy expenses (155,586) (135,312) Depreciation (13,759) (4,634) Employee benefits and management fees and on costs (832,946) (438,870) Initial public offering (expenses)/refund, net - (165,904) Project application costs - (15,674) Other costs (19,614) (2,762) Loss before income tax 3 (1,361,403) (1,265,358) Income tax benefit relating to the ordinary activities 1(c)/4 6,795 - Net (loss) for the year (1,354,608) (1,265,358) Other comprehensive income, net of tax - - Total comprehensive loss (1,354,608) (1,265,358) Loss for the year is attributable to: Non-controlling interest (21,247) - Owners of the company (1,333,361) (1,265,358) Total comprehensive loss (1,354,608) (1,265,358) EARNINGS/LOSS PER SHARE: Basic (loss)/ per share (cents per share) 6 (2.10) (2.28) Diluted (loss) per share (cents per share) 6 (2.10) (2.28) The accompanying notes form part these financial statements. GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE

42 AS AT 30 JUNE 2017 ASSETS NOTE CURRENT ASSETS Cash and cash equivalents 7 904,095 2,931,088 Trade and other receivables 8 124,916 37,678 Inventory finished goods 268, ,011 Other assets 9 246,804 26,039 TOTAL CURRENT ASSETS NON-CURRENT ASSETS 1,544,617 3,094,816 Property, plant and equipment 10 67,252 66,569 Exploration and evaluation expenditure , ,463 Goodwill 26 48,346 - TOTAL NON-CURRENT ASSETS 606, ,032 TOTAL ASSETS 2,150,799 3,490,848 LIABILITIES CURRENT LIABILITIES Trade and other payables ,880 1,171,050 Provision for Income Tax 22,140 - Provisions 13 33,777 15,797 Borrowings ,995 TOTAL CURRENT LIABILITES 447,746 1,244,842 TOTAL LIABILITIES 447,746 1,244,842 NET ASSETS 1,703,053 2,246,006 EQUITY Share capital 15 3,534,661 3,534,661 Reserves , ,923 Non-controlling interest 520,271 - Accumulated losses (2,766,939) (1,433,578) TOTAL EQUITY The accompanying notes form part these financial statements. 1,703,053 2,246,006 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

43 ISSUED CAPITAL OPTION RESERVE ACCUMULATED LOSSES NON-CONTROLLING INTEREST TOTAL Balance as at 1 July ,534, ,923 (1,433,578) - 2,246,006 Total loss and comprehensive loss for the year - - (1,333,361) (21,247) (1,354,608) Non-controlling interest arising from business combinations Contributions from non-controlling interest Options issued Balance as at 30 June ,534, ,060 (2,766,939) , , , , , , ,271 1,703,053 ISSUED CAPITAL OPTION RESERVE ACCUMULATED LOSSES TOTAL Balance as at 1 July ,001 - (168,220) (163,219) Total loss and comprehensive loss for the year - - (1,265,358) (1,265,358) Transactions with owners, recorded directly in equity Issue of share capital 4,008, ,008,088 Cost of Initial public offering (478,428) - - (478,428) Options issued - 144, ,923 Balance as at 30 June ,534, ,923 (1,433,578) 2,246,006 The accompanying notes form part these financial statements. GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

44 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts in the course of operations NOTE ,128, ,650 Cash payments to suppliers and employees (12,305,250) (1,223,198) Interest received 26,173 12,088 Net cash used in operating activities 19 (2,150,619) (281,460) CASH FLOWS FROM INVESTING ACTIVITIES Security bonds (19,790) (3,500) Payments for property, plant and equipment (14,442) (70,367) Payments for exploration and evaluation expenditure (150,092) (85,507) Net cash (used) in investing activities (184,324) (159,374) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares and capital raising - 4,008,088 Proceeds from issue of shares to minority interests in subsidiary 364,996 - Payments for share issue costs - (333,504) Proceeds from borrowings - Directors ,909 Repayment of borrowings - Directors (57,995) (880,914) Net cash from financing activities 307,950 3,332,579 Net (decrease)/increase in cash held and cash equivalents (2,026,993) 2,891,746 Cash and cash equivalents at the beginning of the period 2,931,088 39,343 Cash and cash equivalents at the end of the period 7 904,095 2,931,088 The accompanying notes form part these financial statements. GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

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48 Sale of goods Interest GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

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51 Foreign currency transactions GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

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53 Operating activities Product sales 9,856, ,650 Interest received 21,618 16, The result for the year includes the following specific items: 9,877, , Cost of goods purchased for re-sale 9,731, ,685 Employee benefits, management fees and on costs 832, ,870 Initial public offering costs expenses/(refund) - 165,904 Depreciation 13,759 4,634 (Loss) before tax (1,361,403) (1,265,358) Prima facie tax payable on (loss)/profit from ordinary activities before income tax at 30% (2016: 30%) Add tax effect of: (408,421) (379,607) Non-allowable items 19,016 64,914 Deferred tax asset/(liability) not recognised 396, ,693 Income tax benefit attributable to entity 6,795 - The Group has tax losses carried forward amount to 1,535,496 (2016: 1,139,296) as at year end. The validity for the tax losses to be utilised to offset against future profits of the Group is uncertain and subject to meeting the relevant requirements of the ATO. GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

54 Audit and review of financial statements Crowe Horwath Sydney annual audit and half year audit review 56,198 38, annual audit 3,367 21,091 - Report of factual finding - 10,842 Total remuneration for audit and review of financial statements 59,565 70,115 Other services Crowe Horwath (Aust) Pty Ltd - Taxation services 12,581 7,556 - Initial Public Offering: Prospectus Investigating accountant report - 10,000 Total other services 12,581 17,556 72,146 87,671 (Loss)/Earnings from continuing operations (basic and diluted) (1,333,361) (1,265,358) Weighted average number of ordinary shares outstanding during the year used in calculating basic and dilutive earnings per share NUMBER NUMBER 63,360,296 55,585,042 Basic (loss)/earnings per shares (cents per share) (2.10) (2.28) Diluted (loss)/earnings per shares (cents per share) (2.10) (2.28) GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

55 Cash at bank 904,095 2,931,088 Interest receivable - 4,555 GST receivable 22,191 32,890 Trade debtors 102, ,916 37,678 Deposit with suppliers 143,352 - Other prepayments 80,162 22,539 Office rental security deposit 23,290 3, ,804 26,039 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

56 Property, plant and equipment: Office equipment at cost 18,370 13,928 Office equipment accumulated depreciation (6,663) (2,126) 11,707 11,802 Motor vehicle at cost 67,776 57,076 Motor vehicle accumulated depreciation (12,231) (3,009) 55,545 54,767 Total plant and equipment 67,252 66,569 Reconciliation of the written down values at the beginning and end of the current and previous financial year are set out below: Office equipment Carrying amount at beginning of year 11, Additions 4,442 12,591 Depreciation (4,537) (1,625) Net book value 11,707 11,802 Motor vehicle Carrying amount at beginning of year 54,767 - Additions 10,000 57,076 Depreciation (9,222) (3,009) Net book value 55,545 54,767 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

57 Non-producing properties Balance at the beginning of the reporting period 329, ,847 Additions 161, ,616 Balance at the end of the reporting period 490, , , ,981 35, , , , Current 390,880 1,171, Annual leave 33,777 15,797 33,777 15,797 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

58 Related party loans Balance at the beginning of the reporting period 57, ,000 Additions ,909 Repayments (57,995) (880,914) Forgiven - (5,000) Balance at the end of the reporting period ,995 63,360,296 fully paid ordinary shares (30 June 2016: 63,360,296 fully paid ordinary shares) ,013,089 4,013,089 Shares Issue costs (478,428) (478,428) 3,534,661 3,534,661 FULLY PAID ORDINARY SHARES 2017 NUMBER NUMBER 2016 Balance at the beginning of the period 63,360,296 4,013,089 50,000,001 5,001 Shares issued during the period and fully paid ,360,295 4,008,089 Balance at the end of the period 63,360,296 4,013,089 63,360,296 4,013,089 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

59 Share based payment reserve Opening balance 144,923 - Options issued 270, ,923 Closing balance 415, , GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

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61 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

62 2017 REVENUE MINERAL EXPLORATION TRADE DIVISION CORPORATE 1 TOTAL Product sales - 9,856,322-9,856,322 Interest revenue ,618 21,618 Total segment revenue - 9,856,322 21,618 9,877,940 RESULTS Operating loss before tax - (317,933) (1,043,470) (1,361,403) Included within segment results: Cost of goods sold - 9,731,557-9,731,557 Administration costs - 151, , ,468 Compliance costs , ,413 Consultants , ,586 Depreciation of segment assets - 3,429 10,330 13,759 Employee benefits, management and on costs 287, , ,946 Other costs ,613 19,613 Segment assets 490, , ,399 2,150,798 Segment liabilities 11, , , ,749 Major customers GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

63 2016 MINERAL EXPLORATION TRADE DIVISION UNALLOCATED TOTAL REVENUE Product sales - 929, ,650 Interest revenue ,643 16,643 Total segment revenue - 929,650 16, ,293 RESULTS Operating profit/(loss) before tax (47,513) (55,546) (1,162,299) (1,265,358) Included within segment results: Cost of goods sold - 928, ,685 Administration costs , ,803 Compliance costs ,007 55,007 Consultants , ,312 Depreciation of segment assets - - 4,634 4,634 Employee benefits, management and on costs 31,839 56, , ,870 Initial Public Offer costs , ,904 Project applications costs 15, ,674 Other costs - - 2,762 2,762 Segment assets 329, ,000 3,061,205 3,490,848 Segment liabilities 36, , ,701 1,244,842 Major customers GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

64 Cash and cash equivalents at the end of the year as shown in the Consolidated Statements of Cash Flows is reconciled to the related items in the Consolidated Statement of Financial Position as follows: Cash at bank 904,095 2,931,088 Reconciliation of loss for the period after income tax to cash flows used in operating activities (Loss)/profit for the period (1,354,608) (1,265,358) Add/(subtract) non-cash items: Depreciation of non-current assets 13,759 4,634 Loan forgiven - (5,000) Share based payment 270,137 - Interest received 4,554 - Movement relating to minority interest 133,437 - Changes in assets and liabilities: (Increase)/decrease in trade and other receivables (235,145) (34,823) (Increase)/decrease in Inventory (168,791) (100,011) (Increase)/decrease in prepayments (57,623) (22,539) Increase/(decrease) in trade payables and accruals (791,199) 1,125,839 Increase/(decrease) in provisions 41,655 15,798 Tax benefit provision (6,795) - Net cash from operating activities (2,150,619) (281,460) GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

65 Short-term employee benefits 316, ,423 Post-employment benefits 20,205 18,428 Share based payment 270, , ,851 Cash and cash equivalents 904,095 2,931,088 Trade and other receivables 124,916 37, ,029,011 2,968,766 The Group's maximum exposure to credit risk at the reporting date by geographic region was: Australia 1,029,011 2,968,766 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

66 CARRYING AMOUNT LESS THAN ONE YEAR BETWEEN ONE AND FIVE YEARS MORE THAN FIVE YEARS 30 June 2017 Trade and other payables 390, , Borrowings June 2016 Trade and other payables 1,171,050 1,171, Borrowings 57,995 57, Cash and cash equivalents 904,095 2,931, ,095 2,931,088 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

67 Impact on loss for the period 9,041 29, NUMBER NUMBER Balance at beginning of the reporting period 850,000 - Granted during the financial year 5,000, ,000 Balance at end of the reporting period 5,850, ,000 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

68 OPTIONS SERIES NUMBER GRANTED Issued 21 Dec ,000,000 - NUMBER VESTED (I) GRANT DATE EXPIRY DATE 25 Nov Nov 2019 EXERCISE PRICE FAIR VALUE AT GRANT DATE Issued 29 Jan , Jan Jan INPUTS INTO THE MODEL OPTION SERIES Grant date share price 0.33 Exercise price 1.00 Expected volatility 65% Option life 3 years Dividend yield 0% Risk-free interest rate 1.92% - GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

69 Financial position Assets Current assets 647,524 3,094,816 Non-current assets 707, ,032 Total assets 1,355,345 3,490,848 Liabilities Current liabilities 341,203 1,244,842 Non-current liabilities - - Total liabilities 341,203 1,244,842 Net assets 1,014,142 2,246,006 Equity Issued capital 3,534,659 3,534,659 Reserves 415, ,923 Accumulated losses (2,935,579) (1,433,578) Total equity 1,014,142 2,246,006 Financial performance (Loss)/profit for the year (1,471,714) (1,265,358) Other comprehensive income/(loss) - - Total comprehensive income/(loss) (1,471,714) (1,265,358) GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

70 Financial position Fair Value Assets Cash at bank 4,528 Receivables and deposits 159,006 Inventory 477,800 Office equipment 452 Total assets 641,786 Liabilities Trade creditors nd trade 109,299 deposits received Employee benefits 10,375 Tax liabilities 28,934 Non-current liabilities 205,000 Total liabilities 353,608 Non-controlling interests 176,522 Net assets acquired 111,655 Goodwill 48,345 Consideration paid 160,000 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

71 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

72 DIRECTORS DECLARATION 1. In the opinion of the Board of Directors of Global Fortune Investment Limited: a. the consolidated financial statements and notes of Global Fortune Investment Limited are in accordance with the Corporations Act 2001, including: i. Giving a true and fair view of its financial position as at 30 June 2017 and of its performance for financial year ended on that date; and ii. Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and b. There are reasonable grounds to believe that Global Fortune Investment Limited will be able to pay its debts as and when they become payable. 2. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June Note 1 confirms that the consolidated financial statements also comply with International Financial Reporting Standards. Signed in accordance with a resolution of the Board of Directors: Weiliang Liu Director Date: 5 October

73 Global Fortune Investment Limited Independent Auditor s Report to the Members of Global Fortune Investment Limited Crowe Horwath Sydney ABN Member Crowe Horwath International Audit and Assurance Services Level 15 1 O'Connell Street Sydney NSW 2000 Australia Tel Fax Report on the Audit of the Financial Report Opinion We have audited the financial report of Global Fortune Investment Limited (the Company and its subsidiaries (the Group)), which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Group s financial position as at 30 June 2017 and of its financial performance for the year then ended; and (b) complying with Australian Accounting Standards and the Corporations Regulations Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material Uncertainty Related to Going Concern We draw attention to Note 1(u) in the financial report, which indicates that the Group incurred a net loss of 1,354,608 during the year ended 30 June 2017 (2016: 1,265,358) as well as a cash outflow from operating activities of 2,150,619 (2016: 281,460). As stated in Note 1(u), these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Group s ability to continue as a going concern. Our opinion is not modified in respect of this matter. 70 Crowe Horwath Sydney is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

74 Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined that the matter described below to be the key audit matter to be communicated in our report. Key Audit Matter How we addressed the Key Audit Matter Control over a consolidated subsidiary On 4 January 2017, the Group acquired a 38.7% equity interest in New Chinese In Australia Alliance Pty Ltd (NCIAA), as detailed in Note 26 of the financial report. The Group s equity interest over NCIAA was diluted to 30.4% as at 30 June Notwithstanding the Group did not hold more than 50% equity interest in NCIAA, the assets, liabilities and results of NCIAA were consolidated into the financial report of the Group since the acquisition date by virtue of the Group holding more than 50% voting rights in the shareholders meeting of NCIAA and controlling the majority of the board of directors of NCIAA as stated in Note 17 of the financial report. We determined that this judgement is a key audit matter. We held discussions with management of the Company and NCIAA in order to understand how the Group controls NCIAA, including understanding the representation of the Group s interest in the composition of the board of directors of NCIAA. We read the constitution of NCIAA to understand the rights of different classes of shareholders in NCIAA and we conducted a direct conversation with one of the key minority shareholders of NCIAA who recognises the Group s control over the NCIAA. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group s annual report for the year ended 30 June 2017, but does not include the financial report and our auditor s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards, International Financial Reporting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. 71

75 In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: description forms part of our auditor s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 27 to 33 of the directors report for the year ended 30 June In our opinion, the Remuneration Report of Global Fortune Investment Limited, for the year ended 30 June 2017, complies with section 300A of the Corporations Act Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. CROWE HORWATH SYDNEY ASH PATHER Partner Sydney 5 October

76 - - NUMBER OF HOLDERS CATEGORY (SIZE OF HOLDING) FULLY PAID ORDINARY OPTIONS SHARES 1 1,000 1,119-1,001 5,000 14,630-5,001 10,000 1,505,413-10, ,000 2,448, ,001 and over 59,390, ,360,296 2 DATE ESCROW CLASS NUMBER PERIOD ENDS Fully paid ordinary shares 50,000, January 2018 Options 850, January 2019 Options 5,000, December 2019 RANK NAME NUMBER OF ORDINARY SHARES HELD PERCENTAGE 1. China Global Investment Pty Limited 44,750, SOPC Management Company Pty Ltd 3,500, GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017

77 GLOBAL FORTUNE INVESTMENT LIMITED ANNUAL REPORT 30 JUNE 2017