Red Cup Village 2018 Financial Trail Balance

2018-2019

ANNUAL REPORT DRAFT

RED CUP VILLAGE

PREPARED BY LUVUYO NDIKI

10Mill Street Gardens, Cape Town 8000

www.redcup-village.com investors@redcup-village.com

PAGE 1

ABOUT RED CUP VILLAGE Red Cup Village is a youth-focused creative events agency that manufactures and retails festival biodegradable cups as well as providing a full suite of traditional and digital consumer engagement services.

OUR STORY

Red Cup Village, was inspired by a folk tale my grandmother told me while growing up.“My grandmother told me about a woman, back in the 13th century. This African lady united two rival village tribes by inviting them to a gathering where she made them drink from the same wooden cup. Without realising, the two kings started sharing the same cup which made them share their cultures, visions, beliefs and created unity in the village, Our brand story has always been about bringing people from different cultures together and creating a social cohesion – it’s not just a cup, but a lifestyle. We are building a global lifestyle brand through innovative concepts and premium products.

Global leading lifestyle brand through innovative concepts and premium biodegradable products.

VISION

Bringing people together with innovative artificial intelligence products and concepts.

MISSION STATEMENT

Our mission is to establish a world – class biodegradable plastic cup manufacturing company whose products will not only be used in the FMCG sector in the South Africa, but also be exported to other countries of the world.

MISSION

2030

PAGE 2

CLIENT GROWTH Our client have increased by 20% from 2017. We see larger community of females following the movement. Cape Town has been the loyal client based city in South Africa but we are keen increase marketing muscle in major cities such Johannesburg, Nairobi, Lagos, New York, Sydney and London to increase sales as we grow to become a global player.

7K

(40%) MALE - 8K (60%) FEMALE

25

Our audience enjoy similar content to for following categories

20

15 MUSICIAN / BAND - BLACK COFFEE, THE SOIL

PUBLIC FIGURE - BONANG MATHEBA, THEMBI SEETE

10

CLOTHING (BRAND) - THUWORTHS FASHION, YDE

5 ARTIST - RIHANNA, PEARL THUSI

MEDIA / NEWS COMPANY - NEW24.COM, TIMES LIVE,ABITIOUZ ENT

0

13-17

18-24

25-34

35-44

45-54

55-65

65+

MALE AGE GROUPS

40 CITY BY AUDIENCE

Durban, KZN 2.4%

30

Johannesburg, GP 3.8% East London, EC 6.1%

20

Port Elizaberth, EC 7.8%

10

Cape Town, WP 71.4%

0

13-17

18-24

25-34

35-44

45-54

FEMALE AGE GROUPS

55-65

65+

PAGE 3

DIRECTOR SPEECH Taking the lead in fourth industrail revolution products is key for the future.

Another year has passed and Red Cup Village is still thriving, growing and developing. 2018 has been a year of massive brand exposure, substantial expansion and growth for the organisation and we salute and acknowledge the amazing RCV team who have worked with dedication and determination to ensure that we achieve our goals and deliver on our commitments.

We can all be proud of our work over the past year, in particular the gaining access to Tops Spar stores and delivering successful projects, and we look forward to building on the achievements of 2018 as we move into our Seed A funding period to raise R 8 Million in 2019 to take leading in Artificial Intelligence manufacturing production and research in the Continent.

When we look at South Africa's manufacturing

In 2018 was the beginning of a new era for Red Cup Village which saw the biggest brand expose for us as

sector accounts for 14% of the national GDP, making it

we got featured in Local and International media for our

the 4th largest contributor in the economy. The primary

biodegradable PLA cups made from cornstarch &

goods produced by the manufacturing sector of South

sugarcane.

Africa include: food processing, textiles, electronics, chemicals, technology, and automobiles.

We look to focus our energy in producing 3D Printed biodegradable food & beverage products which is the most important player in the industry, contributing 25%

We have generated over 7 Million impressions only in the last quarter of 2018 -2019 financial year. Red Cup Village also featured in the one of the top 10 Innovations in Africa during January 2019.

to total manufacturing activity.

Awards & Nomination In the near future our plan is to also advance our 3D

2019 South African Premier Business Awards - Black

production in other manufacturing sectors such as

Industrialist Nommee, 2019 South African Premier

aerospace, architecture, motor vehicles, medical equipment, jewelry design, textile prints and even construction of the future.

The fourth Industrial Revolution shows a great deal of

Business Awards - Manufacturers Award Nommee, 2019 South African Premier Business Awards - Young Entrepreneur Award.

potential which will disturb the manufacturing industry

At a time of rapid growth, Red Cup Village took the

and other sectors in ways we have never imagine

opportunity to complete a successful and energetic

before.

strategic planning process at the end of 2018 which will

Investing in the future of manufacturing will place the organisation ahead of the curve just as Steve Jobs and Bill Gate had been in the Digital Revolution.

Luvuyo Ndiki

help inform and guide our work over the next 5 years – we look forward to working together with everyone at RCV and our partners to achieve our ambitious goals!

" We are creating communities of the future"

FOUNDER/CEO RED CUP VILLAGE | ANNUAL REPORT 2018

MARKETING & SALE

PAGE 4

Influential marketing is today a multi dollar industry as more brand use influential celebrities to increase product sale. Our products are given to influential musician for their video's and social media post

3D PRINTED BI ODEGRADABLE PRODUCTS 3D printing technology to create biodegradable drinking cups. The cups are made from polylactide (PLA) filament – a biodegradable polyester derived from sugarcane and cornstarch.

PAGE 5

Year in Review

Sales

GROSS INCOME

Services Rendered

Sponsorship

Online Streams

2018-2019 Financial years presented the organisation

Interest Income

with challenging

R0

opportunities due to lack of

R 25,000

R 50,000

R 75,000 R 100,000 R 125,000

investment. Online Streams 5.2%

Working with no capital

Sales 23.5%

created space for innovative ways to generate revenue through services rendered and selling products through leveraging on our relationships with manufactures.

Services Rendered 70.6%

Statistics

COST DAMAGE Working from home space arrangement created opportunity to

Transportation & Travel 9.5% Telephone 3.6%

Purchases 27%

Electricity 3.8%

increase profit margin but limited the team from growing.

Advertising 4.4% Computer Expenses 5.2% Director's Salary 42%

PAGE 6

MONTHLY FINANCE DEVELOPMENT Chart 2.1 R40,000

Chart 2.1 shows us the monthly expenditure from the month of 1 March 2018 until 28 Feb 2019.

R30,000

Our profit the company makes after deducting the costs associated with making and selling its products, or the costs associated with providing

R20,000

its services and the buyer receives goods tangible or intangible, services and/or assets in exchange for money.

R10,000

R0

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Chart 2.2

Feb

R40,000

Chart 2.2 is a display of the monthly profit over the month of March 2018 until 28 Feb 2019 which R30,000

shows us that our sales have increased by 26% compared to the month of March 2017.Â

R20,000

The actual profit after working expenses not included in the calculation of gross profit have been paid. A sale is a transaction between two

R10,000

parties where the buyer receives goods tangible or intangible, services.

R0

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

PAGE 7

MONTHLY FINANCE DEVELOPMENT R8,000

Chart 2.1 shows us the growth of monthly net savings over the month of March 2018 until Feb

R6,000

2019.

R4,000

R2,000

R0

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Chart 2.1 Net Saving R15,000

Chart 2.2 shows us the our monthly

R10,000

ending balance from March 2018 until Feb 2019.

R5,000

R0

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Chart 2.2 Ending balance

Jan

Feb

PAGE 8

TRIAL BALANCEÂ