Kaizen Global Investments : Audited half year report

KAIZEN GLOBAL INVESTMENTS LIMITED

A.C.N 602 033 670

APPENDIX 3: HALF-YEAR REPORT for

The half-year ended 31 December 2021

RESULTS FOR ANNOUNCEMENT TO THE MARKET

The results for this half-year report are for the period of 1 July 2021 to 31 December 2021.

	2020	2021	Change
Revenue from ordinary activities	891,029	(76,959)	N/A%
Profit (loss) from ordinary activities	723,193	(571,721)	N/A%
before tax
Profit (loss) from ordinary activities	516,287	(517,389)	N/A%
after tax
	Previous period	Current period	Previous
Dividends			corresponding
			period
Franking rate applicable: n/a	n/a	n/a	n/a
Interim dividend
Amount per security	n/a	n/a	n/a
Franked amount per security	n/a	n/a	n/a
	31 December 2020	31 December 2021	Previous
			corresponding
			period
Net tangible asset backing per	1.1196$	1.4306 $	1.2514$
share post tax

This report is based on the half-year financial report which has been subject to independent review by the Company's auditors, Stantons International Audit and Consulting Pty Ltd. Information required by the NSX Listing Rules is included. Information in this report should be read in conjunction with KGI's 30 June 2021 Annual Financial Report.

Financial Report for the Half-Year

Ended 31 December 2021

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Table of Contents
Company details ..................................................................................................................................................	4
Directors' report to shareholders for the half-year ended 31 December 2021 ....................................................	5
Auditor's independence declaration ....................................................................................................................	7
Statement of profit or loss and other comprehensive income for the half-year ended 31 December 2021 ........	8
Statement of financial position as at 31 December 2021 ....................................................................................	9
Statement of changes in equity for the half-year ...............................................................................................	10
Statement of cash flows for the half-year ..........................................................................................................	11
Notes to the financial statements for the half-year ............................................................................................	12
Directors' declaration .........................................................................................................................................	15
Independent auditor's review report ..................................................................................................................	16

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COMPANY DETAILS

KAIZEN GLOBAL INVESTMENTS LIMITED

ACN 602 033 670

DIRECTORS:	Jason Connor Grindlay / Connor Grindlay (Managing
	Director)
	Simon Charles Winfield (Chairman)
	Andre Lloyd Edmunds (Non-executive Director)
SECRETARY:	Lisa Grindlay
FUND MANAGER:	Kaizen Capital Pty Limited
	ACN: 137 114 160
REGISTERED OFFICE:	Suite 115
	377 Kent Street
	SYDNEY NSW 2000
CONTACT DETAILS:	Suite 115
	377 Kent Street
	SYDNEY NSW 2000
	Telephone: [phone]
	Email: [e-mail]
	Website: kaizenglobalinvestmens.com
SHARE REGISTRY:	Boardroom Pty Limited
	Grosvenor Place, Level 12, 225 George
	Street, SYDNEY, NSW, 2000
	Telephone: [phone]
	Facsimile: 1300 653 459
AUDITOR:	Stantons International Audit and Consulting Pty Limited
	Level 36, Gateway 1 Macquarie Place
	Sydney NSW 2000
FUND ADMINISTRATOR:	T & D Associates
	No.108/1,
	Rosmead Place, Colombo 7, Sri Lanka
	Phone: [phone]
	Fax: [phone]
	Email: [e-mail]

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DIRECTORS' REPORT TO SHAREHOLDERS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

The Directors present their report on Kaizen Global Investments Limited (the Company, or KGI) for the financial period ended 31 December 2021. The Company is a public company listed on the National Stock Exchange of Australia (NSX). The following report complies with the requirements of the Corporations Act 2001.

PRINCIPAL ACTIVITIES

The principal activity of the company is to generate long-term capital appreciation while preserving capital. The Company invests substantially in Global Listed Equities.

OPERATIONS

For the half year ended 31 December 2021, the post-tax NTA per share of the Company increased by 18.12% to $1.4306, which we believe is conservative.

Additional tax charge of 5 cents per share

During the period, the company sold its private investment for a healthy gain and valuation uplift of over $0.27 per share (before tax). We intend to re-invest the proceeds into another opportunity and if we are able to do so, within a 2 year period post sale, there will be no taxation on the gain. We have taken written advice from a taxation specialist that supports this view. However, in order to be conservative, since we cannot 'guarantee' that we will make an acquisition within the 2 year period, we have taken a tax charge, of circa 5 cents per share this half, depressing the post-tax, NTA by that amount.

It is the board's view that there are opportunities for an acquisition and confidence that we will be able to make an acquisition within the 2 year window. Should this happen, we will have to immediately write back the tax charge by 5 cents per share resulting in an uplift of circa 5 cents per share. We want to make it clear that taking the tax charge this half is following the letter of the law in terms of conservatism.

The board is of the view that there is a high probability that KGI will make an acquisition and the 5 cent tax charge, therefore, will be reversed at some point. We'd, frankly, rather not write it down in the first place, then report an acquisition and report a tax gain on the news, but we don't make the reporting rules.

Investments are valued continuously to market value. For the half-year ended 31 December 2021, net investments were valued at $2,779,000.

FINANCIAL POSITION

The net asset value of the Company for the half-year ended 31 December 2021 was $4,291,733.

DIRECTORS

The names of the Directors at any time during or since the end of the half-year:

Connor Grindlay - Managing Director

Simon Charles Winfield - Executive Chairman

Andre Lloyd Edmunds - Non-Executive Director

DIVIDENDS

No dividends or distributions were recommended or declared during the half-year.

AUDITORS' INDEPENCE DECLARATION

A copy of the Auditors' independence declaration in accordance with section 307C of the Corporations Act 2001 is set out on page 6.

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