2021 Investment Outlook

RNS Number : 2817N

Jade Road Investments Limited

29 January 2021

 

JADE ROAD INVESTMENTS LIMITED

(" Jade Road " or the " Company ")

2021 Investment Outlook

Jade Road Investments Limited (AIM: JADE), the London quoted  company focused on providing shareholders with attractive uncorrelated, risk-adjusted returns from a diversified portfolio of pan-Asian investments , is pleased to provide an update on its plans for 2021. Following the recent name change, which more accurately reflects the Company's Asian heritage, the Company and its Investment Manager, Harmony Capital, look forward to implementing several strategic initiatives to grow the business given the unprecedented opportunities presented in Asia as a result of the ongoing COVID-19 pandemic. 

· The Company is pleased to note that the macroeconomic backdrop for its growth plans looks favourable, with Asian economies expected to lead the world back to growth. Last week, China reported 2.3% GDP growth for 2020, a stronger-than-expected number which means it will be the only G20 economy to post GDP growth for last year, according to the IMF's latest World Economic Outlook.

· The Company employs extremely strict assessment methodologies when screening investments and the onset of COVID-19 in 2020 restricted its Investment Manager's ability to complete new investments owing to its inability to undertake or complete effective due diligence. However, as Asia continues to recover from the COVID-19 pandemic, intraregional travel restrictions are expected to ease thereby facilitating physical due diligence on some advanced opportunities, a critical step in the disciplined investment and risk management approach of Jade Road. 

· The current investment pipeline includes a number of companies operating in high growth and very topical sectors such as Healthcare Technologies, Fintech and eCommerce. The scarcity of Institutional capital to fund growth plans of such companies puts Jade Road in a strong position to negotiate very attractive terms for new investments. The Company hopes to complete at least one new investment in the first half of 2021 and will make an appropriate announcement at that time.

· The Company expects to announce its FY2020 Annual Results in May.

Further to the announcement on 19 November 2020, Jade Road's portfolio company, Future Metal Holdings Limited, the "Quarry", received approval for the newly constructed onsite environmental facilities from the local Ministry of Ecology and Environment in December 2020.

The Quarry is currently fully licenced.

For further information, please visit the Company's website at https://jaderoadinvestments.com /home and follow the Company on Twitter (@ JadeRoadInvest ).

FOR FURTHER INFORMATION, PLEASE CONTACT:

Jade Road Investments Limited	[phone]
John Croft
WH Ireland Limited - Nominated Adviser	[phone]
James Joyce
James Sinclair-Ford
Hybridan LLP - Corporate Broker	[phone]
Claire Louise Noyce

About Jade Road

Jade Road (JADE) is quoted on the AIM Market of the London Stock Exchange and is committed to providing shareholders with attractive uncorrelated, risk-adjusted long-term returns from a combination of realising sustainable capital growth and delivering dividend income.

The Company is focused on providing growth capital and financing to emerging and established Small and Medium Enterprises (SME) sector throughout Asia, well diversified by national geographies, instruments and asset classes. This vital segment of the economy is underserved by the traditional banking industry for regulatory and structural reasons.

The Company's investment manager, Harmony Capital, seeks to capitalise on its team's established investment expertise and broad networks across Asia. Through rigorous diligence and disciplined risk management, Harmony Capital is dedicated to delivering attractive income and capital growth for shareholders with significant downside protection through selectively investing in assets and proactively managing them.

Harmony Capital is predominately sourcing private opportunities and continues to create a strong pipeline of attractive income-generating assets from potential investments in growth sectors across Asia, including healthcare, fintech, hospitality, IT, and property. 

 

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