TIDMSIHL
RNS Number : 6868G
Symphony International Holdings Ltd
27 November 2020
Symphony International Holdings Limited ("Symphony")
27 November 2020
Symphony International Holdings Limited (LSE: SIHL.L) today
issues the following Shareholder Update.
Highlights
-- Symphony International Holdings Limited's ("Symphony" or the
"Company") unaudited Net Asset Value ("NAV") at 30 September 2020
was US$335,246,851 and NAV per share was US$0.6530. This compares
to NAV and NAV per share at 30 June 2020 of US$319,117,581, and
US$0.6216, respectively.
-- The change in NAV was predominantly due to an increase in the
value of Symphony's unlisted investments by 6.2% (including some
higher valuations and follow-on investments).
-- Symphony's share price continued to trade at a discount to
NAV. At 30 September 2020, Symphony's share price was US$0.27,
representing a discount to NAV per share of 58.65%.
Anil Thadani, Chairman of Symphony Asia Holdings Pte. Ltd. and a
Director of Symphony, said:
" Although stock markets have improved with many reaching highs
last seen in February, there is still a long journey ahead for
countries to rebuild their economies. Economic stimulus is unlikely
to reverse all the damage that has been caused by Covid-19. As we
enter the last quarter of the year, we remain cautiously optimistic
of an improvement in the business environment in the months
ahead".
For further information:
Symphony Asia Holdings Pte. Ltd.:
Anil Thadani +65 6536 6177
Rajgopal Rajkumar
Dealing codes
The ISIN number of the Ordinary Shares is VGG548121059, the
SEDOL code is B231M63 and the TIDM is SIHL.
The LEI number of the Company is 254900MQE84GV5DS6F03.
Note
NAV takes into account the fair value of unrealised investments.
In accordance with the valuation policies of the Company, real
estate related investments are valued by third parties on 30 June
and 31 December each year. In addition and in accordance with the
Company's valuation policies, investments that have been held for
less than 12-months are held at cost unless there is evidence of a
diminution in the value of that investment. Although the investment
manager believes there not to be a diminution in the value of
investments held for less than 12- months, the Covid-19 pandemic
has led to a significant increase in economic uncertainty which is
evidenced by more volatile asset prices and currency exchange rates
and therefore cost may not correspond to an appropriate measure of
fair value in the current environment
About Symphony
Symphony is a London listed strategic investment company that
invests in consumer businesses in the healthcare, hospitality,
lifestyle (including branded real estate developments), education,
and logistics sectors, principally in Asia. It offers a way for
investors to gain exposure to the rising disposable incomes &
consumer spending, resulting from the wealth generation in the fast
growing economies of the region. Symphony's objective is to provide
superior capital growth by investing in high quality companies and
forming long-term business partnerships with talented
entrepreneurs. Symphony is managed by Symphony Asia Holdings Pte.
Ltd., which has a team of investment professionals with a broad
range of expertise - many of them have been working in Asia for
more than 30 years. For more information, please visit our website
at www.symphonyasia.com
MARKET OVERVIEW AND OUTLOOK
In the midst of the coronavirus crisis there seem to be green
shoots appearing in different parts of the world: Wall Street
analysts are raising their estimates going into earnings season for
the first time in more than two years, China's economy has
recovered more quickly than expected and countries like Vietnam, in
Asia, are projected to show a record trade surplus, despite the
sharp decline in global trade in late Q1 and in Q2 2020.
In the United States, the S&P500 companies are projected to
report a 21 percent fall in earnings in the third quarter from the
same period last year, according to data provider FactSet. That is
an improvement from 25.3 percent decline that had been projected at
the beginning of summer. It is also a substantial improvement from
the March to June quarters, when earnings per share plunged nearly
32 percent. Surveys of business owners have improved, retail
spending has increased month on month up to August and consumer
sentiment has reached its highest level in six months.
On the employment front, the United States has recovered half of
the 22 million jobs lost at the height of coronavirus shutdowns in
March and April.
China's economic rebound from the coronavirus pandemic remains
on track. China's GDP fell 6.8 per cent year on year in the first
quarter, the first such contraction in more than 40 years, China's
economy rebounded to grow 3.2 per cent in the second quarter, 4.9
percent in the third quarter and is projected to grow by 5.5
percent in the fourth quarter according to forecasts by Macquarie
Bank (Financial Times on October 16, 2020). China's ability to
contain the coronavirus has been beneficial for the country's
exporters. With factories, logistics companies and ports being able
to operate as normal, the country has been able to grow exports
year on year by 9.9 percent in September. However, a strengthening
renminbi could impact this trend going forward. The currency has
appreciated 7 percent from US$7.2 in late May to $6.70.
Vietnam, where Symphony has an investment in a major logistics
operator, has also been successful in limiting the spread of
Covid-19, which has allowed businesses to reopen with minimal
disruption. While many countries are suffering large economic
contractions, Vietnam's GDP is projected to grow at 3 percent this
year making it one of the fastest growing economies. In fact, the
country has been so successful that the United States has formally
accused Vietnam of currency manipulation and has initiated an
investigation into this, similar to the investigation that gave
rise to the tariff war with China.
One of the key factors to recovery is going to be the
willingness of governments and development institutions to provide
further economic assistance and stimulus. While the US Treasury
announced aggressive spending programs in spring this year, there
has been no agreement on a new stimulus package at the time of this
shareholder update. Partisan differences have arisen regarding the
size of a package and its contents. The Federal Reserve has risen
to the challenge by reducing the Fed Funds rate from 1.50-1.75% in
March to 0-0.25% now. In addition, the Federal Reserve between
mid-March and July this year bought Treasury Bonds and notes and
other securities of more than US$2.3 trillion. This is nearly 20
times what was purchased during the Global Financial Crisis.
These actions by the Federal Reserve has reassured investors
enabling companies to raise large amounts of debt. For example,
despite the largest quarterly decline in US GDP in recorded
history, US$345.6 billion of US high yield bonds have been issued
so far this year, according to S&P. This is more than the
record of US$ 344.8 billion issued in 2012.
Although the stock market is back near the highs reached in
February, there are certain sectors that have had a limited
recovery, such as hospitality, retail and commercial real estate
for example. As Symphony's portfolio has material exposure to some
of these sectors, NAV and NAV per share remain depressed. However,
we believe our hospitality and retail investee companies are well
placed to benefit from a gradual recovery in travel and reduced
restrictions related to Covid-19. We continue to work closely with
the management teams and are optimistic that our portfolio will do
well over the long-term. The pandemic continues to impact many
companies and individuals. Essential workers across the world, in
sectors like food production and hospitals, have put themselves in
harms way. We at Symphony are extremely grateful for the efforts
made by all these individuals and hope that they and their families
stay safe during these difficult times.
COMPANY UPDATE
Symphony's listed investments accounted for 25.81% of NAV at 30
September 2020 (or US$0.1685 per share), which compares to 26.85%
of NAV (or US$0.1669 per share) at 30 June 2020. The change in NAV
was predominantly due to an increase in the value of Symphony's
unlisted investments by 6.2% (including some higher valuations and
follow-on investments). The value of Symphony's unlisted
investments (including property) comprised a further 82.34% of
Symphony's NAV (or US$0.5377 per share), and (8.15%) of NAV (or
(US$0.0532) per share) were temporary investments.
As of 30 September 2020, the sum of Symphony's temporary
investments and listed investments amounted to US$59.2 million, or
US$0.1153 per share.
Symphony's share price continued to trade at a significant
discount to NAV. At 30 September 2020, Symphony's share price was
US$0.27, representing a discount to NAV per share of 58.65%.
PORTFOLIO DEVELOPMENTS
HOSPITALITY
Minor International Public Company Limited ("MINT"): is one of
the largest hospitality and restaurant companies in the Asia
Pacific region. MINT owns 379 hotels and manages 156 other hotels
and serviced suites with 75,968 rooms. MINT owns and manages hotels
in 55 countries predominantly under its own brand names that
include Anantara, Avani, Oaks, Tivoli, NH Collection, NH Hotels,
nhow, Elewana Collection. MINT also owns and operates 2,356
restaurants (comprising 1,183 equity-owned outlets and 1,173
franchised outlets) under brands that include The Pizza Company,
Benihana, Swensen's, Sizzler, Dairy Queen, Burger King, Beijing
Riverside, Thai Express, The Coffee Club, Veneziano Coffee
Roasters, Bonchon and BreadTalk.
MINT's operations also include contract manufacturing and an
international lifestyle consumer brand distribution business with
468 retail outlets focusing on fashion, cosmetics, wholesale and
direct marketing channels under brands that include Anello,
Bossini, Charles & Keith, Esprit, Etam, OVS and Radley, and
Joseph Joseph, Zwilling J.A. Henckels, and Bodum focusing on home
and kitchenware.
Update: MINT reported improving business trends across all three
business units in 3Q20 compared to the previous quarter, driven by
continuous easing of COVID-19 restrictions in most of the regions,
together with MINT's stringent cost cutting measures.
MINT's 3Q20 reported Revenue, EBITDA and Net Profit post-TFRS16
fell by 57%, 92% and 223% respectively year-over-year. In 3Q20,
total core revenue of hotel & mixed use business declined by
62% year-over-year, adversely impacted by COVID-19 pandemic across
the portfolio including owned, leased and managed hotels, as well
as Anantara Vacation Club ("AVC") and plaza and entertainment. Core
EBITDA of hotel and mixed-use business excluding impact of TFRS16
in 3Q20 turned into net loss of THB 2,479 million from positive
EBITDA of THB 4,417 million in 3Q19, given lower overall
flow-through from revenue shortfall.
In 3Q20 total core restaurant revenue fell by 9% year-over-year.
The year-over-year top-line growth of China hub in the quarter
helped ease the softer sales performance of Thailand and Australian
hubs, as well as, the loss contribution from joint ventures.
Meanwhile, franchise income declined by 20% year-over-year in
3Q20.
In 3Q20, total retail trading & contract manufacturing
revenue decreased by 17% year-over-year, dragged by fashion
business from weak consumer sentiment and domestic economic
slowdown amidst the COVID-19 pandemic. However, the stronger
performance of home & kitchenware and manufacturing businesses
partially compensated the revenue shortfall of fashion brands.
Overall sales improved from previous quarter as most of the retail
outlets resumed their operations in the quarter
MINT continues to focus on preserving its liquidity and managing
its balance sheet, with approximately THB 30 billion of cash on
hand and THB 25 billion of unutilized credit facilities as at end
of October. Additionally, there is another THB 5 billion from
potential warrant conversion into equity over the next three years.
MINT has stated that it expects to post positive cash flow and
profit in 2021 as a group, following the likelihood of travel
resuming and planned asset rotation strategy.
The fair value of Symphony's investment in MINT increased from
US$85.7 million at 30 June 2020 to US$86.5 million at 30 September
2020. The change in value is due to (i) the participation in MINT's
rights issue that resulted in the receipt of 15.9 million shares at
a cost of US$8.8 million and (ii) the receipt of bonus warrants at
no cost, which were partially offset by a decline in MINT's share
price by 1.5% and a depreciation in the onshore Thai baht rate by
2.5% during Q3 2020.
LIFESTYLE/ REAL ESTATE
Minuet Limited ("Minuet"): is a joint venture between Symphony
and an established Thai partner. Symphony has a direct 49% interest
in the venture and is considering several development and/or sale
options for the land owned by Minuet, which is located in close
proximity to central Bangkok, Thailand. As at 30 September 2020,
Minuet held approximately 211 rai (34 hectares) of land in
Bangkok.
Update: The value of Symphony's interest at 30 September 2020
was US$63.5 million based on an independent valuation at 30 June
2020 and adjusted for land sales during Q3 2020. The change in
value from US$77.1 million at 30 June 2020 is predominantly due to
the repayment of US$12.9 million of shareholder loans by Minuet
from proceeds related to completed land sales in September 2020 and
to a lesser extent, a depreciation of the Thai baht by 2.2% and
other minor movements in assets and liabilities.
SG Land Co. Ltd ("SG Land") : is a joint venture company that
owns the leasehold rights for two office buildings in downtown
Bangkok - SG Tower and Millenia Tower. The two buildings in SG
Land's portfolio have high occupancy rates and offer attractive
rental yields. Symphony holds 49.9% of the venture.
Update: The value of SG Land as at 30 September 2020 was US$8.1
million based on an independent third-party valuation at 30 June
2020. The change from US$8.0 million at 30 June 2020 is due to an
increase in cash on the balance sheet from rental income that has
not yet been offset by a reduced lease term used to derive the
value for this property. The increase in cash was partially offset
by a depreciation in the Thai baht by 2.2% during the quarter.
Niseko Property Joint Venture ("Niseko JV") : Symphony invested
in a property development venture that acquired land in Niseko,
Hokkaido, Japan. Symphony has a 37.5% interest in this venture,
which it acquired for a total investment of US$10.2 million and has
to date received distributions of US$16.7 million from the partial
sale of land held by the venture. The Niseko JV sold 31% of the
development site to Hanwha Hotels & Resorts with a further 39%
to a new joint venture company that is equally held and being
co-developed by the Niseko JV and Hanwha Hotels & Resorts. The
Niseko JV continues to effectively hold approximately 50% of the
development site, of which one third of the total site is held for
future development and/or sale.
Update: The development team for the JV with Hanwha Hotels and
Resorts continue to work on permits/ permissions related to the
design for the development in Niseko. As reported previously, there
continues some delays due to Covid-19 and foreign visitors to the
region are expected to be limited during the upcoming ski
season.
Desaru Property Joint Venture in Malaysia : Symphony has a 49%
interest in a property joint venture in Malaysia with an affiliate
of Themed Attractions Resorts & Hotels Sdn Bhd, a subsidiary of
Khazanah Nasional Berhad, the investment arm of the Government of
Malaysia. The joint venture has developed a beachfront resort and
will offer private villas for sale on the south-eastern coast of
Malaysia, branded and managed by One&Only Resorts
("O&O").
Update: The fair value of Symphony's interest in the joint
venture was US$38.9 million at 30 September 2020 based on an
independent third-party valuation at 30 June 2020. There was a
negligible change in value from 30 June 2020.
Earlier in the summer, Symphony announced the launch of the
luxury One & Only Desaru Coast Resort in September 2020.
Despite global travel restrictions due to COVID, the opening was
well received within the local Malaysian travel market.
The management team of the resort reported that in September,
the first month of operations, the average occupancy and average
daily rates were in excess of budget. However, the resumption of a
movement control order in response to a wave of Covid-19 (in Kuala
Lumpur from mid-October and Malaysia-wide from November) has
impacted operations.
For the past few months, the property has started to selectively
market luxury villas for sale within the resort complex and has
received interest from both local and international buyers.
Infrastructure works to support the new villas are ongoing.
Phuket Luxury Villa: Symphony holds a one third interest in a
luxury villa in Phuket, Thailand. Together with an effective cash
payment, the Phuket Villa formed part of the settlement in June
2020 for a structured loan transaction made by Symphony in 2014.
The Phuket Villa was valued by a third-party independent valuer and
was transferred to Symphony with a contractual minimum guaranteed
value and profit share upon realisation of any excess above the
minimum guaranty .
HEALTHCARE
ASG Hospitals Pvt Ltd ("ASG") : is a full-service eye-healthcare
provider with operations in India, Africa, and Nepal. ASG was
co-founded in Rajasthan, India in 2005 by Dr. Arun Singhvi and Dr.
Shashank Gang. ASG's operations have since grown to 33 clinics,
which offer a full range of eye-healthcare services, including
outpatient consultation and a full suite of inpatient procedures
(cataract, retina surgeries, Lasik, glaucoma, cornea and other
complicated eye surgeries). ASG also operates an optical and
pharmacy business, which is located within clinics. Symphony
invested in ASG in tranches and following the completion of the
final tranche in July 2020, Symphony has a 19.24% interest in
ASG.
Update: ASG's revenue has fully recovered from pre-Covid levels
towards the end of Q3 2020 and in September 2020, revenue grew
year-over-year. Management expect to achieve double digit revenue
growth in October from the same month a year earlier. ASG continues
to keep a reduced cost structure in place given the ongoing
uncertainty while actively pursuing several new initiatives to
further grow the business, including acquisitions (one opportunity
completed in September 2020), partnerships and a new telemedicine
platform.
Soothe Healthcare Private Limited ("Soothe") : was founded in
2012 and operates within the fast-growing feminine hygiene market
segment in India. Together with government initiatives to promote
usage, growing disposable income in India is expected to drive the
market size for feminine hygiene products over the coming decades.
Symphony completed its investment in Soothe in August 2019, which
provided a significant minority position.
Update: Sales continued to improve month-on-month to reach
approximately INR100 million in September 2020, which is almost
double the level of monthly sales pre-Covid. Soothe's brands
continue to gain recognition, which has increased demand from
distributers and retailers. At the end of September, distribution
had increased to over 110,000 outlets. In September, Soothe also
launched a diaper brand that has been received favourably by the
market .
LIFESTYLE
Liaigre Group ("Liaigre") : In May 2016 Symphony acquired, as
part of a consortium, Financier CL SAS, the holding company of the
Liaigre Group ("Liaigre"). The Liaigre brand is synonymous with
discreet luxury, and has become one of the most sought-after luxury
furniture brands. Liaigre has a strong intellectual property
portfolio and offers a range of bespoke furniture, lighting, fabric
& leather, and accessories through a network of 25 showrooms
across Europe, the US and Asia. In addition, Liaigre also
undertakes exclusive interior architecture projects for select
yachts, hotels, restaurants and private residences.
Update: New orders from Europe and US showrooms remained subdued
in Q3 2020, which is representative of overall luxury furniture
market. However, the pipeline for interior architecture and design
projects remain strong with a number of new mandates. Showrooms in
Asia have performed relatively well, with particular strength in
Shanghai. New orders in September in Asia grew by 46%
year-over-year. A number of digital initiatives continue to be
employed by the management team to facilitate the sales process
offsite. There continues to be some delay with deliveries due to
factory closures earlier in the year as a result of Covid-19
related restrictions. Management are working on initiatives to
improve Liaigre's supply chain .
CHANINTR ("Chanintr") : is a luxury lifestyle company which
primarily sells several high-end U.S. and European furniture and
household accessory brands and is based in Thailand. The current
portfolio of furniture brands includes Christian Liaigre, Barbara
Barry, Baker, Thomasville, Herman Miller & Minotti. In addition
Chanintr also sells Bulthaup kitchens, Puiforcat flatware, and St.
Louis crystal. It also provides Furniture, Fixtures & Equipment
solutions for various real estate and hotel projects. Chanintr also
has the franchise to operate the Clinton Street Baking Company
("CSB") F&B outlets in selected Asian markets. In 2019,
Chanintr launched a new program called Chanintr Residences which
will showcase custom-designed luxury residences as turnkey
projects.
Update: Business sentiment in Thailand is at an all-time low
because of COVID related restrictions and political demonstrations.
CHANINTR, however, has managed to limit decline in business by
offsetting the drop in the B2B projects segment by driving growth
in the B2C residential business.
In the third quarter, CHANINTR launched several projects:
CHANINTR WORK was launched at a converted warehouse featuring
Herman Miller and other modern design products for working from
home or office; CHANINTR CRAFT was launched featuring a showroom
for the in-house brand, alongside Café Craft, and a new Waterworks
showroom; and one of two planned luxury CHANINTR RESIDENCES at
Windshell was completed for sale and use as a design service
showroom. All projects have received positive press and social
media response with a growing stream of visitors at all locations,
especially, at the new cafe. Overall, CHANINTR's business prospects
remain positive despite headwinds.
Wine Connection Group ("WCG") : At the end of April 2014,
Symphony invested in the Wine Connection Group ("WCG"), Southeast
Asia's leading wine themed Food and Beverage chain with
approximately 80 outlets in Singapore, Thailand, Malaysia and South
Korea.
Update: Despite the difficult operating environment, the
management team have been able to turnaround the business in
Thailand while Singapore continues to see strong growth.
Same-store-sales growth ("SSSG") in Thailand in September 2020 for
F&B and wine retail increased to 4.6% and 23.7%, respectively.
During the same month, SSSG for Singapore F&B and wine retail
was 5.6% and 25.5%, respectively. Online month-on-month sales
growth have been strong. EBITDA for the three quarters ended 30
September is 7% higher than EBITDA for full year 2019. The
management team continue to focus on strategic openings and
closures while further improving the overall food and wine offering
to customers.
EDUCATION
WCIB International Co. Ltd. ("WCIB") : In January 2017, Symphony
entered into a joint venture, WCIB International Co. Ltd. ("WCIB"),
that developed and operates Wellington College International
Bangkok, the fifth international addition to the Wellington College
family of schools. WCIB operates a co-educational school that will
ultimately cater to over 1,500 students aged 2-18 years of age when
all phases are fully complete. WCIB commenced operations for the
Primary school in August 2018 with inaugural students attending
Nursery to Year 6.
Update: As mentioned in the previous update, WCIB returned to
normal operations in September following the implementation of
distance learning initiatives / requirements in response to the
Covid-19 pandemic during part of the previous academic year.
Student enrolments have been promising and tuition fees for the
2020/2021 academic year are above expectations. Construction of the
senior school buildings have begun .
Creative Technology Solutions DMCC ("CTS") : is a UAE-based
company that provides technology solutions to K12 schools in the
UAE and the Kingdom of Saudi Arabia ("KSA"). The company was
founded in 2013 to provide customized IT solutions to the education
sector, including hardware, software and training. Symphony made
its investment in CTS in June 2019.
Update: Lower enrolment and the impact of Covid-19 has subdued
demand from K12 schools to enter into new long-term contracts for
IT solutions and training. CTS believe this business segment will
take some time to fully recover. As mentioned in the 30 June 2020,
CTS won a large contract from the Abu Dhabi Education Counsel
("ADEK") to train 100 schools for distance learning using a
Microsoft platform. CTS is scaling to provide services to 17
schools with 20,000 users under this mandate. ADEK continues to
build-out its school portfolio, which is expected to contribute to
further growth. CTS has been successful in developing its service
offering for tertiary education institutions and is currently
providing solutions to eight universities. Management expect that
the university segment will become more material and be an
important source of growth in the future .
LOGISTICS AND OTHER INVESTMENTS
Indo Trans Logistics Corporation ("ITL") : was founded in 2000
as a freight-forwarding company and has since grown to become
Vietnam's largest independent integrated logistics company with a
network that is spread across Vietnam, Cambodia, Laos, Myanmar, and
Thailand. ITL has grown to national champion status in Vietnam with
over 2,000 employees across its business units and joint ventures.
ITL's strategic plans include supporting small and medium
enterprises in Vietnam and across the Indochina region. Symphony's
investment cost in ITL is $42.6 million.
Update: Through the third quarter of 2020, ITL has reported
encouraging results compared to its pre-COVID budget. While
revenues have declined due to reduced package volume, gross margins
have increased from higher yield due to index cargo rates and cargo
scarcity in the aviation sector. Also, due to cost-reduction
efforts, pretax profit is largely at pre-COVID budget levels and
impressively has increased on a year-over-year basis. The
performance, primarily due to the aviation cargo and freight
management businesses, is however partially offset by weakness at
contract logistics, regional trucking and the visa business. The
outlook for 2021 is that the first half will be volatile due to
current dislocations but stability will return to the logistics
industry in the second half.
As mentioned previously, Symphony worked closely with ITL to
secure financing in August from an IFC-led consortium to acquire a
55% interest in SoTrans, a Vietnamese inland port & container
depot operator and sea freight-forwarder with extensive real estate
assets. The acquisition, which completed in September, increases
ITL's interest in SoTrans to 97% and will result in a much larger
and more diversified logistics business.
Smarten Spaces Pte. Ltd. ("Smarten") : In November 2019,
Symphony invested in Smarten Spaces Pte. Ltd ("Smarten"), a
Singapore based SaaS (Software-as-a-Service) company that provides
software solutions for space management in commercial and
industrial properties. Smarten was founded in 2017 by Dinesh
Malkani and offers over thirty micro services to manage functions
in work-space management that include building access control,
reservation of conference rooms and individual workstations, room
temperature and lighting, co-working and co-living spaces, F&B
services, and community bulletin boards.
Update: The ongoing COVID-19 pandemic has posed challenges in
terms of delays in deal closures and low workforce utilisation
affecting revenue recognition. Smarten has responded to the
COVID-19 induced workplace restrictions by developing the Jumpree
WorkSafe/WorkFlex products which provide new functions such as
visitor management, automatic social distancing workplace planning,
and work-from home/back to work resource planning. This development
has led to a significant increase in sales pipeline.
Management has noted signs of early movements in deal activity
during Q3 2020 with contracts signed with corporate clients in
Singapore, Scandinavia, Australia, India, and the UK. Smarten's
products are currently deployed in over 40 cities across 13
countries and has further expanded its presence in the global
markets with the opening of an operational US office. The Company
saw third quarter single digit percentage increases QoQ in Exit ARR
(run-rate annualised Annual Recurring Revenue) and TCV (total
contract value).
August Jewellery Pvt. Ltd. ("Melorra") : Symphony, through its
Singapore subsidiary, Shadows Holdings Pte Ltd ("Shadows"),
invested in Melorra, an online fast fashion Indian jewellery
company that produces over 300 new designs per month. Melorra was
founded in January 2015 by Saroja Yeramilli and adopts a minimal
inventory model that uses 3-D printing technology to achieve
just-in-time manufacturing to bring products to market
efficiently.
Update: With the lifting of lockdown restrictions, in a phased
manner, across the country Melorra is slowly returning to normalcy
on the business front. The business teams across divisions have
acted with agility and rolled out several initiatives to realign
with the new normal and serve customers in new ways. Melorra
launched their Autumn/ Winter 20/21 campaign with a record 500 new
designs released in September (vs. 481 in October). Melorra also
worked on their first television campaign with a Bollywood star,
which is meant for release in the build-up to the Diwali festival.
With a focus on building an omni-channel brand Melorra has
finalized retail store designs for a roll-out of 4-6 stores in the
coming months. Melorra reported net revenues up 140 percent over
the June quarter.
On the fundraising side, Melorra successfully closed a round of
US$10.5 million of capital from Symphony, Lightbox Funds and Family
offices and US$2.0 million from Alteria Capital in the form of
venture debt in the month of September. The new funds will be used
primarily for marketing and new hires and general corporate
purposes.
Good Capital Partners and Good Capital Fund I ("Good Capital") :
Good Capital is majority owned by brothers Rohan and Arjun Malhotra
who founded Investopad in 2014 by investing their own capital into
building substantial infrastructure across India (Delhi, Bangalore
and Gurgaon) and creating a thriving ecosystem of technology
startups. Symphony announced its investment in July 2019, and has a
stake in the General Partner, Good Capital Partners ("GCP") and its
first fund, Good Capital Fund I ("GCF").
Update: Good Capital made three investments in this quarter, one
was a follow-on round and two were new seed investment rounds. In
total the investments this quarter was US$ 1.1 million. Good
Capital is currently evaluating three new investments .
IMPORTANT INFORMATION
A more detailed Shareholder Update is available on request from
the Company and can be accessed via www.symphonyasia.com .
THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION,
IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED
STATES OR ANY OTHER JURISDICTION INTO WHICH THE PUBLICATION OR
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ACQUIRE SECURITIES IN THE UNITED STATES OR ANY OTHER JURISDICTION
IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. THE
SECURITIES REFERRED TO IN THIS DOCUMENT HAVE NOT BEEN AND WILL NOT
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MAY NOT BE SOLD, RESOLD, TAKEN UP, TRANSFERRED, DELIVERED OR
DISTRIBUTED, DIRECTLY OR INDIRECTLY, WITHIN SUCH JURISDICTIONS.
NO REPRESENTATION OR WARRANTY IS MADE BY THE COMPANY OR ITS
INVESTMENT MANAGER AS TO THE ACCURACY OR COMPLETENESS OF THE
INFORMATION CONTAINED IN THIS DOCUMENT AND NO LIABILITY WILL BE
ACCEPTED FOR ANY LOSS WHATSOEVER ARISING IN CONNECTION WITH SUCH
INFORMATION.
THIS DOCUMENT CONTAINS (OR MAY CONTAIN) CERTAIN FORWARD-LOOKING
STATEMENTS WITH RESPECT TO CERTAIN OF THE COMPANY'S CURRENT
EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. THESE STATEMENTS,
WHICH SOMETIMES USE WORDS SUCH AS "ANTICIPATE", "BELIEVE", "COULD",
"ESTIMATE", "EXPECT", "INTEND", "MAY", "PLAN", "POTENTIAL",
"SHOULD", "WILL" AND "WOULD" OR THE NEGATIVE OF THOSE TERMS OR
OTHER COMPARABLE TERMINOLOGY, ARE BASED ON THE COMPANY'S BELIEFS,
ASSUMPTIONS AND EXPECTATIONS OF ITS FUTURE PERFORMANCE, TAKING INTO
ACCOUNT ALL INFORMATION CURRENTLY AVAILABLE TO IT AT THE DATE OF
THIS DOCUMENT. THESE BELIEFS, ASSUMPTIONS AND EXPECTATIONS CAN
CHANGE AS A RESULT OF MANY POSSIBLE EVENTS OR FACTORS, NOT ALL OF
WHICH ARE KNOWN TO THE COMPANY AT THE DATE OF THIS ANNOUNCEMENT OR
ARE WITHIN ITS CONTROL. IF A CHANGE OCCURS, THE COMPANY'S BUSINESS,
FINANCIAL CONDITION AND RESULTS OF OPERATIONS MAY VARY MATERIALLY
FROM THOSE EXPRESSED IN ITS FORWARD-LOOKING STATEMENTS. NEITHER THE
COMPANY NOR ITS INVESTMENT MANAGER UNDERTAKE TO UPDATE ANY SUCH
FORWARD LOOKING STATEMENTS
STATEMENTS CONTAINED IN THIS DOCUMENT REGARDING PAST TRENDS OR
ACTIVITIES SHOULD NOT BE TAKEN AS A REPRESENTATION THAT SUCH TRENDS
OR ACTIVITIES WILL CONTINUE IN THE FUTURE. THE INFORMATION
CONTAINED IN THIS DOCUMENT IS SUBJECT TO CHANGE WITHOUT NOTICE AND,
EXCEPT AS REQUIRED BY APPLICABLE LAW, NEITHER THE COMPANY NOR THE
INVESTMENT MANAGER ASSUMES ANY RESPONSIBILITY OR OBLIGATION TO
UPDATE PUBLICLY OR REVIEW ANY OF THE FORWARD-LOOKING STATEMENTS
CONTAINED HEREIN. YOU SHOULD NOT PLACE UNDUE RELIANCE ON
FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE OF THIS
ANNOUNCEMENT.
THIS DOCUMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT
CONSTITUTE AN INVITATION OR OFFER TO UNDERWRITE, SUBSCRIBE FOR OR
OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES OF THE COMPANY IN
ANY JURISDICTION. ALL INVESTMENTS ARE SUBJECT TO RISK. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RETURNS. SHAREHOLDERS AND
PROSPECTIVE INVESTORS ARE ADVISED TO SEEK EXPERT LEGAL, FINANCIAL,
TAX AND OTHER PROFESSIONAL ADVICE BEFORE MAKING ANY INVESTMENT
DECISIONS.
THIS DOCUMENT IS NOT AN OFFER OF SECURITIES FOR SALE INTO THE
UNITED STATES. THE COMPANY'S SECURITIES HAVE NOT BEEN, AND WILL NOT
BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 AND
MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION
OR AN EXEMPTION FROM REGISTRATION. THERE WILL BE NO PUBLIC OFFER OF
SECURITIES IN THE UNITED STATES .
NEITHER THE CONTENT OF THE COMPANY'S WEBSITE (OR ANY OTHER
WEBSITE) NOR THE CONTENT OF ANY WEBSITE ACCESSIBLE FROM HYPERLINKS
ON THE COMPANY'S WEBSITE (OR ANY OTHER WEBSITE) IS INCORPORATED
INTO, OR FORMS PART OF, THIS DOCUMENT.
TO ENSURE THE COMPANY'S COMPLIANCE WITH SUB-SECTION 8(3)(A)(I)
OF THE PRIVATE INVESTMENT FUNDS REGULATIONS, 2019, THE DIRECTORS
WILL KEEP THE FINANCIAL SERVICES COMMISSION OF THE BRITISH VIRGIN
ISLANDS INFORMED OF THE NUMBER OF SHAREHOLDERS ON THE COMPANY'S
REGISTER OF SHAREHOLDERS.
THE COMPANY AND THE INVESTMENT MANAGER ARE NOT ASSOCIATED OR
AFFILIATED WITH ANY OTHER FUND MANAGERS WHOSE NAMES INCLUDE
"SYMPHONY", INCLUDING, WITHOUT LIMITATION, SYMPHONY FINANCIAL
PARTNERS CO., LTD.
End of Announcement
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END
UPDDQLFLBFLBFBV
(END) Dow Jones Newswires
November 27, 2020 02:00 ET (07:00 GMT)
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