Jade Road Investments PLC (LON:JADE) broke into a profit for the past year as investment income tripled and it is seeing “exciting investment opportunities” as Asian markets rebound from the pandemic.
Chairman John Croft said the scarcity of institutional capital to fund growth in some Asian markets “places the company in an extremely strong position to negotiate very attractive terms for new investments”.
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The pan-Asian diversified investment company, which changed its name from Adamas Finance Asia Limited earlier this year, reported that its NAV ended 2020 at US$106.4mln (£78.0mln), up 5.5% on 2019.
NAV per share decreased 3.3% after the £1.99mln placing and open offer in October where 8.4mln shares were issued – its first placing fundraising since coming to market in 2014.
Net portfolio income increased by 205% year-on-year to US6.7mln, delivering a net profit of US$1.6mln versus a loss of US$2.8mln the year before.
Jade Road said the income growth was largely attributable to the increase of value of its largest asset, China-based Future Metal Holdings (FMHL), where major work to improve the operations and environmental compliances at the site were completed during the year.
This is reflected in an increase in the fair value changes on financial assets at fair value through profit and loss.
During the year, the company, along with manager Harmony Capital, formally adopted a new and comprehensive Environmental, Social and Governance (ESG) policy.
Croft said: “I remain cautiously optimistic about the outlook for 2021. As travel and other restrictions are gradually lifted, businesses are beginning to get back to more normal levels of activity.
“For example, restaurants in Hong Kong are operating near to pre-pandemic levels, while in Niseko, Japan (where we have property investments) operators are now accepting bookings for the coming winter skiing season.
“As the pan-Asian markets bounce back, we are seeing more exciting investment opportunities. The current investment pipeline includes a number of companies operating in high growth and very topical sectors such as healthcare technologies, fintech and ecommerce.”