LONDON (Alliance News) - Investment company Adamas Finance Asia Ltd reported a narrowed loss for the first half of 2016, as it looks to dispose of its portfolio holdings.
Adamas Finance reported a USD454,000 loss to the end of June, narrowed from USD1.3 million the year before. The narrowed loss largely resulted from a USD280,000 fair value gain on its asset portfolio, swinging from a USD450,000 loss in fair value the year before.
The consolidated net asset value of the company stood at USD114.5 million at June 30, down from USD117.5 million at the end of 2015.
Adamas said it continued to work towards the goal announced two years ago of disposing of its legacy portfolio, the product of its reverse takeover in February 2014. Adamas has looked to dispose of portfolio holdings in order to invest in funds providing capital to small and medium-sized Chinese enterprises.
However Chairman John Croft said the half opened with a "disappointing setback" to its disposal plans as a planned IPO for resource company Hong Kong Mining Holdings Ltd on the Hong Kong Stock Exchange was rejected by the exchange. Adamas continues to seek a buyer for its stake in the company, as well as its holdings in Changtai Jinhongbank Real Estate Development Co Ltd and Meize Energy Industries Holdings Ltd.
"Overall, while ADAM has been held back by delays in the disposal of its legacy asset portfolio, the company continued through the first half to receive good returns from the small amounts of capital it has been able to invest in income generating assets to date. Furthermore, I am hopeful that during the second half of 2016 the company will be in a position to announce further progress on the reshaping of its asset portfolio, which in turn will enable it to move forward more positively with its investing policy," Croft added.
Shares in Adamas Finance were untraded at USD0.45 a share Monday.
By Adam Clark; adamclark@alliancenews.com
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