Jade Road assessing ‘exceptionally strong’ pipeline under new investment strategy

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Jade Road Investments Ltd (AIM:JADE, FRA:1CP0) chairman John Crofts said the company’s portfolio had “weathered the pandemic storm” in the first half of the year as it continued to be repositioned by investment manager Harmony Capital.


Harmony Capital has lately been driving the second of a three-phase investment strategy focused on exits, restructuring legacy assets and seeking investments in smaller fast-growing companies at the initial public offer or pre-IPO stages.


Crofts said the investment manager’s three-phase strategy has involved rehabilitating legacy assets, such as Future Metal Holdings Limited (FMHL) and Meize Energy, towards a full or partial exit and reinvesting the resulting cash into new income-generating assets, prioritising high-growth Asian SMEs in the healthtech, medtech and fintech sectors.


“With Asian SMEs increasingly starved of capital, Jade Road is assessing an exceptionally strong pipeline of investee candidates which, with an emphasis on credit instruments such as secured debt or non-mandatory convertible bonds, will result in a well-constructed portfolio with near-term downside protection.


“The board believes Jade Road’s new investment strategy is well positioned to construct a solid base of exciting, income generating assets for high-quality growth, promoting long-term value for our shareholders.”


Consolidated net asset value (NAV) at 30 June 2021 was US$106.2mln (GBP76.8mln) compared to US$106.5mln at the end of December, with the slight decrease stemming from a decrease in cash to US$2.56mln from US$3.2mln.


Jade Road announced a net loss of US$0.27mln on total income of US$1.25mln for the first six months of the year compared to US$0.7mln and US$1.2mln a year ago. It said the driver of the loss was a US$0.26mln finance expense, mainly related to bond interest payments.

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