ADAM.L Regulatory News (ADAM)

RNS Reach

ADAMAS FINANCE ASIA LIMITED

("ADAM" or the "Company")

Asset Overview: FLMH

Adamas Finance Asia Limited, the London quoted pan-Asian diversified investment vehicle focused on providing shareholders with attractive uncorrelated, risk adjusted long-term returns, is pleased to make the following announcement regarding its portfolio asset, FLMH (see the Portfolio Update announcement dated 3rd June 2020 for more details).

ADAM holds a Convertible Bond of US$26.5 million in FLMH. It has a 5-year maturity and as of 30 June 2020, its carrying value is US$27.8 million.

FLMH is the majority shareholder in a high-end Hong Kong-based food and beverage business with a 72-year history. It operates two restaurants in Hong Kong's Wan Chai and Kowloon districts as well as a restaurant in Macao. In addition, FLMH manages a high-end Cantonese restaurant, Guo Fu Lou, located in a five-star hotel in Central Hong Kong.

FLMH's flagship restaurant in the bustling Wan Chai district holds a Michelin Star for its distinguished Cantonese cuisine, which was awarded in early 2020. The Guo Fu Lou restaurant also holds a Michelin star. Furthermore, the restaurant business is frequently recognised by prestigious bodies such as San Pellegrino and Wine Spectator. Most recently, in March 2020, it was named amongst the "Top 10 Chinese Restaurants of the World" in a dining guide published by author and wine critic, Ch'ng Poh Tiong.

Over the last 12 months, the business has been impacted first by the civil unrest in 2019 and more recently by the COVID-19 pandemic. Nevertheless, with its long history and having lived through previous calamities such as SARS, the directors believe it remains resilient in the current climate. The local management has taken active steps to safeguard the health of guests and staff. The restaurants have also engaged in online distribution channels in an effort to increase guests' accessibility to their food and beverage menus. In addition, the main restaurant business is housed in a building which it owns, further providing it with flexibility in managing its fixed overheads. 

For further information on FLMH, please visit its website at http://fooklammoon-grp.com/en.

For the avoidance of doubt, this RNS contains information already in the public domain, which can be found in the Company's latest annual report and accounts.

For further information on ADAM, please visit the Company's website at http://adamasfinance.com and follow the Company on Twitter (@AdamasFinance).

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About Adamas Finance Asia

Adamas Finance Asia Limited (ADAM) 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.