AAA.L Regulatory News (AAA)

Press Release 16 April 2015

All Asia Asset Capital Limited

("All Asia Asset Capital", "AAA" or the "Company")

Signing of Letter of Intent regarding a possible investment in a vehicle financing business in Lao People's Democratic Republic

All Asia Asset Capital Limited (AIM: AAA), an investment company focused on investing in the growing markets of the Asia Pacific region, is pleased to announce that it has signed a Letter of Intent ("LOI") with Quick Win Global Limited ("Quick Win") to explore opportunities to develop Quick Win as a vehicle financing business initially focussed on the Lao People's Democratic Republic ("Laos"). Quick Win is a company recently incorporated in the British Virgin Islands to explore opportunities in the vehicle financing sector in Laos. Mr. Wai Tak Jonathan Chu, a director of Quick Win since 13 April 2015, is also an executive director of AAA.

Pursuant to the LOI, both parties have agreed to explore the development of Quick Win as a vehicle financing business including, but not limited to, the leasing of vehicles such as motorcycles and cars in Laos with potential future expansion into other Southeast Asia regions. The LOI contemplates that Quick Win will require initial capital of approximately US$1.5 million to set up the business and to create a management team. Subject to the completion of satisfactory due diligence by AAA and entering into definitive agreements AAA intends to provide fund raising services to Quick Win and, together with the existing shareholders in Quick Win, intends to invest and procure co-investors to raise the necessary capital.

The LOI is non-binding and any formal transaction to be entered into between AAA and Quick Win will be subject to, inter alia, further legal, financial and other due diligence, entering into of definitive agreements between both parties and compliance with the relevant AIM Rules for Companies (including AIM Rule 13 regarding related party transactions).

Any investment made by AAA will be in line with the Company's investing policy adopted at the Company's annual general meeting on 10 December 2013 and, if AAA decides to invest, it is expected that it will hold a minority position in Quick Win.

Since the early 2000s, the government of Laos has implemented a number of policies to develop the economy and enhance the industrialisation of the country with the aim to graduate the country away from its current status of being on the UN's list of Least Developed Countries by 2020. It has gradually moved from being agricultural based to setting up foundations for industrialisation. According to a report published by the World Bank, Laos' population was 6.7 million people in 2013. The GDP growth for the past 5 years averaged at 7.8% per year with the growth in 2015 projected to be 7.0% by the Asian Development Bank. 

The increased spending ability of the population has also been reflected in the increasing number of vehicles in the country. In 2013, there were approximately 1.1 million registered motorcycles in Laos, representing 78% of all registered vehicles in the country, a sharp increase from around 800,000 registered motorcycles in 2010. Both AAA and Quick Win have identified the financing business for motorcycle leasing to be an attractive business proposition with high growth potential.

Commenting on the signing of LOI, Dr. Sri Hartati Kurniawan, Chief Executive Officer of AAA, said: "We are delighted to sign this LOI with Quick Win and pleased with our ongoing effort in identifying new and exciting business opportunities within the region we operate. Laos has delivered remarkable economic growth in the recent years due to robust exports and an increasing stream of foreign direct investments into the country. Within the country there are huge infrastructure and road development projects ongoing, facilitating increasing number of vehicles which in turn creates opportunities for AAA and Quick Win to enter this promising market for financing services for vehicle leasing."

AAA will make further announcements as appropriate.

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About AAA

AAA is an investment company that has been established as a platform for investors looking to access growing markets in the Asia-Pacific region. The Company invests in a portfolio of companies with at least a majority of operations (or early-stage companies that intend to have at least a majority of their operations) in the Asia-Pacific region in industries with high growth potential including, but not limited to: agriculture, forestry and plantations, mining, natural resources, property, and/or technology. AAA is publicly quoted and its shares are traded on the AIM Market, which is operated by the London Stock Exchange.