Rofina : Annual Report - 31 May 2021

Rofina Group Limited and Controlled

Entities

ACN 635 120 517

Annual Report

For the Year Ended 31 May 2021

Rofina Group Limited and Controlled Entities

ACN 635 120 517

CORPORATE DIRECTORY

Directors

Boon Chin Soo - Executive Chairman

Wei Yin Soo - Executive Director

Jacky Tran Cheung - Non-Executive Director

Chor Keat Ewe - Non-Executive Director

Su Hian Tan - Non-Executive Director

Company Secretary

Su Hian Tan

Registered Office and Principal Place of Business

Boardroom Pty Ltd

Level 12, 225 George Street

Sydney, NSW 2000

Website

https://www.ir.rofinagroup.com

Share Registry

Boardroom Pty Ltd

Level 12, 225 George Street

Sydney, NSW 2000

Auditors

Moore Australia Audit (WA)

Level 15, Exchange Tower

2 The Esplanade

Perth WA 6000

Stock Exchange listing

Rofina Group Limited shares are listed on the National Stock Exchange of Australia (NSX), code: 218

Rofina Group Limited and its Controlled Entities

ACN 635 120 517

Table of Contents

31 May 2021

	Page
Chairman's Statement	1
Directors' Report (including Remuneration Report)	2
Auditor's Independence Declaration	19
Consolidated Statement of Profit or Loss and Other Comprehensive Income	20
Consolidated Statement of Financial Position	21
Consolidated Statement of Changes in Equity	22
Consolidated Statement of Cash Flows	23
Notes to the Consolidated Financial Statements	24
Directors' Declaration	43
Independent Auditor's Report	44
Additional Information for Listed Public Companies	49

Rofina Group Limited and its Controlled Entities

ACN 635 120 517

Chairman's Statement

31 May 2021

Ladies and Gentlemen,

I am delighted to present the 2021 Annual Report for Rofina Group Limited (Rofina) and its controlled entities (the Group), the first since the Group was listed on the National Stock Exchange of Australia (NSX).

Rofina is one of the largest specialty retailers of luggage, bags, winter apparel and travel accessories in Malaysia and constantly strives to provide customers with a wide range of products at affordable prices and with good after sales service.

The Group's strategy is to be one of the market leaders in the luggage, bags, winter wear and travel accessories industry and to gain international recognition by carrying a wide range of quality products through the sale and distribution of the innovative designs of its own brand names and distributorships of products of other third-party brand owners.

The Group currently has 10 retail stores, with a presence in three department stores across Malaysia, online, and through its recently established wholesale business in Australia which commenced in October 2019 with operations in Sydney and Melbourne.

The Group's immediate aim is to become a one stop-travel chain for customers' travel needs. Therefore, the Group's plan is to continue to expand and upgrade its own products and source for better material, products and brands to introduce to the market. The Group intends to actively cultivate internal growth within the organisation and enhance the professionalism of its frontline salespeople further to serve our customers and all our stakeholders better.

The Group is building its brands Rofina, Cosas United and Ragdoll and is emerging as a strong contender in each market it enters, with the objective to achieve sustainable growth to benefit all stakeholders.

Efforts have been taken by the Group to leverage on E-commerce Platform sales and social media marketing with the focus on the sales of bags, backpacks and handbags. The Group has held Facebook Live events to promote their brand name and products with remarkable number of views.

The Group intends to actively promote its own products to wider areas of viewers to increase recognition. With the implementation "Cuti-Cuti Malaysia Campaign" by the local Government to aid Malaysia's tourism industry, the Group has set up roadshows at multiple populated points to increase the brand awareness and sales.

The Group is investigating further international expansion, having commenced its wholesale operations in Australia, with the aim to be one of the top travel goods companies by 2025.

As part of this strategy, this year the Group was listed on the NSX on 31 August 2020. The capital raised on listing has significantly assisted the working capital and operations of the Group.

This year has been challenging for everyone in Malaysia, Australia and globally, everyone has felt the impacts of COVID-19 including Rofina. In addition to the positive operational and strategic impacts the NSX listing has benefited the Group by cushioning the negative impacts from Movement Control Order imposed by the Malaysian Government to subdue COVID-19.

Your Board believes that the actions taken by Rofina to mitigate the effects of COVID-19 as well as the implementation of our strategy during the year has positioned the Group to look to the future. We believe the impact of the coronavirus will be temporary, and once the impact subsides, we are confident that we are well placed for the growth opportunities that lies ahead.

Everyone at Rofina has worked tirelessly through this difficult period. On behalf of myself and the Board, I would like to sincerely thank all of our store and management team members, all of our customers and our suppliers, and all of our existing and new investors, and all of our other stakeholders for your help and assistance throughout this period.

Thank you.

Malaysia, 5 October 2021

1

Rofina Group Limited and its Controlled Entities

ACN 635 120 517

Directors' Report

31 May 2021

The Board of directors (Board) of Rofina Group Limited (Rofina, Company) presents the Financial Report on the Company and its controlled entities (Rofina Group, Group) for the year ended 31 May 2021.

DIRECTORS AND SECRETARY

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

Boon Chin Soo, Executive Chairman

Boon Chin Soo, who is the Executive Chairman and founder of Rofina began his career in 1975, and has more than 40 years of experience in manufacturing and retailing. He provides leadership to the Board and oversees the Group's research and development team in developing new collections and design of the Group's own brands such as Rofina, Cosas United and Ragdoll. He is key to establishing strategic and mutually beneficial partnerships and strategic alliances and relationships with customers, suppliers and organisation leaders to effectively support key business initiatives of the Group.

Wei Yin Soo, Executive Director, Chief Executive Officer

Wei Yin Soo has a Diploma in Business Administration - INTI International College Penang. Much of the Group's success in obtaining a strong foothold in Peninsular Malaysia is due to the implementation of Mr. Soo's marketing strategies, which have boosted the Cosas United brand to become a well-known brand in Malaysia. Mr. Soo is responsible for managing the operations and resources of the Group.

Jacky Tran Cheung, Non-Executive and Independent Director

Jacky Tran Cheung holds a Bachelor of Commerce from the University of New South Wales, a Masters in Operations Management from the University of Technology Sydney, and a Diploma in Financial Planning from Traineeship Management Australia. He is a director of Capital Link Pty Ltd, and of Banc Group Pty Ltd. Mr. Cheung is a Justice of the Peace and a director of a financial advisory and property development company. He has worked with some of the largest financial institutions in Australia including NAB, Commonwealth Bank and Westpac.

Chor Keat Ewe, Non-Executive and Independent Director

Chor Keat Ewe has a Bachelor of Commerce (Accounting and Finance) from Deakin University. Mr. Ewe has been a member of the Malaysia Institute of Accountants for over 10 years. He began his career at Aljeffridean Chartered Accountants, and since then has progressed to Deloitte Malaysia. He is presently Partner in Sincere Commercial Service, an accounting firm in Penang.

Su Hian Tan, Non-Executive and Independent Director and Company Secretary

Ms. Tan works with ABBA Group in Sydney in business broking, mergers and acquisitions and was a Business Development Consultant for Ability Options, a Sydney not-for-profit organisation. She was the CEO for Hokay Fitness & Ice Sports Group of Companies in Beijing. She is a proven multi-lingual business development and change management professional with over 20 years of international experience working in the health, wellness, sports and recreation industries.

Nicola Betteridge, Company Secretary resigned 1 April 2021 and was succeeded by Ms Su Hian Tan on the same day.

2