PROPERTY CONNECT HOLDINGS LIMITED ABN 27 091 320 464 AND CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016

Level 1, Suite 2, 47 Havelock Street, West Perth, WA 6005

TABLE OF CONTENTS

CORPORATE DIRECTORY 3

OPERATING AND FINANCIAL REVIEW 4

DIRECTORS REPORT. 6

AUDITOR'S INDEPENDENCE DECLARATION 12

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME 13

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 14

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 15

CONSOLIDATED STATEMENT OF CASH FLOWS 16

NOTES TO THE FINANCIAL STATEMENTS 17

DIRECTORS' DECLARATION 35

INDEPENDENT AUDITOR'S REPORT 36

ADDITIONAL ASX INFORMATION 39

CORPORATE DIRECTORY

DIRECTORS Peter Friend (Chairman) Tim Manson (CEO)

Sam Lee

Michael Langoulant

SECRETARY Michael Langoulant

REGISTERED OFFICE Level 1, Suite 2

47 Havelock Street West Perth WA 6005 Ph: (08) 6313 5140

Fax: (08) 9324 2977

US OFFICE 12575 Beatrice Street

Los Angeles, California USA 90066

SHARE REGISTER Computershare Investor Services Pty Limited Level 3

60 Carrington Street

Sydney NSW 2000

Ph: (02) 8234 5000

AUDITOR Pitcher Partners Level 22, MLC Centre 19 Martin Place

Sydney NSW 2000

BANKERS Westpac Bank Limited Cnr Pitt & Hunter Streets Sydney NSW 2000

STOCK EXCHANGE LISTING Property Connect Holdings Limited shares are listed on the Australian Securities Exchange (ASX Code: PCH)

WEBSITE ADDRESS www.propertyconnect.com CORPORATE GOVERNANCE

STATEMENTwww.propertyconnect.com

OPERATING AND FINANCIAL REVIEW

CORPORATE

On 15 March 2016, Property Connect Holdings Limited (formerly Conquest Agri Limited) ("PCH" or the "Company") completed the acquisition of 100% of the shares of Property Connect Inc ("PCI") pursuant to a stock purchase agreement dated 9 October 2015 and as was approved by shareholders at a general meeting on 16 December 2015, and pursuant to a replacement prospectus dated 13 January 2016.

The acquisition was completed by way of issue of 120 million shares at a price of $0.05 per share and a maximum of 80,000,000 shares based on revenue targets for the calendar year ended 31 December 2017. This transaction resulted in all existing convertible debt being converted into PCH ordinary shares as well as the raising of $2.5 million (before issue costs) in working capital through the prospectus issue.

The Group is developing technology for use within the US real estate market with a focus of the massive US "multi‐ family" apartment market.

PRODUCT DEVELOPMENT

The Group has been developing its LiveOfferTMtechnology since 2013 and has had the initial version LiveOfferTMv1 being tested by various market participants. The corporate changes during the last year have allowed the Company to initiate the development of LiveOfferTMv2.

In November 2015, the Group consolidated development partnerships with property management groups to build out a design roadmap of features and implementation improvement to adapt LiveOfferTMv1 specifically for the multifamily industry sector.

In December 2015, the Group began an engineering development partnership with software developer Apmaspheric Pty Ltd to build out the engineering for LiveOfferTMv2. In February 2016, a LiveOfferTMv2 prototype design was completed, in accordance with the roadmap,, and the final design construction was handed to Apmaspheric to complete engineering development.

The launch for LiveOfferTMv2 for pilot testing is anticipated shortly, with the commercial launch anticipated in December 2016 quarter

BUSINESS DEVELOPMENT

In the past 12 months the Group has taken great steps in moving from our conception as an innovative real estate technology company to quickly emerging as a major influencer in the US multifamily industry. In particular, over the last year the Group has exceeded its business development goals and has positioned itself and firmly engaged with significant clients from a relationship and implementation perspective.

As at September 2016, our efforts have earned the Group agreements with 2 of the top 50 US apartment owners and management groups (Hunt Companies and ZRS Management), In addition, the Group is in detailed discussions with 5 additional top management groups: Greystar Real Estate Partners, Pinnacle Property Management, Bridge Investment Group, Apartment Investment and Management Company (Aimco), and Edward Rose Building Enterprise. All of these groups sit within the US National Multifamily Housing Council's ("NMHC)" 2016 Top 50 Rankings.

In addition to the US Multifamily property management sector, the Group has also progressed into the single family rental market. Sellstate Partners Realty signed an MSA with the Group in June 2016. Through this strategic alliance with SellState, the Group is poised to enter the single family home rental market ‐ targeting funds including but not limited to the Blackstone Group and the Starwood Waypoint Residential Trust.

BUSINESS DEVELOPMENT PARTNERS

The Group has been working with 4 pilot industry partners, Hunt, ZRS, Bonaventure Realty Group, European Investment Management Corp (EIMC), in collaborating on product development.

Brief details of the key property management groups that we are building partnership relationships with (and their rankings according to the NMHC Top 50 Rankings for Apartment Managers by units under management) are :

Property Connect Holdings Limited published this content on 04 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 06 October 2016 09:41:05 UTC.

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