Symphony International
Holdings Limited ("Symphony or the "Company")
20 March 2024
Dear Shareholders,
·
Symphony International Holdings Limited's
("Symphony" or the "Company") unaudited Net Asset Value ("NAV") at
31 December 2023 was US$381,260,889 and NAV per share was
US$0.7427. This compares to NAV and NAV per share at 30 September
2023 of US$362,310,346 and US$0.7058, respectively. The increase in
NAV by 5.2% quarter over quarter is due to an increase in the value
of unlisted investments, particularly in the logistics, lifestyle/
real estate and the education sectors.
·
Symphony's share price continued to trade at a
discount to NAV. At 31 December 2023, Symphony's share price was
US$0.39, representing a discount to NAV per share of 48.0%. This
compares to a share price discount to NAV of 34.5% at 30 September
2023.
We would like to highlight some of
the key developments in our portfolio companies during the
quarter:
•
Minor International Public Company Limited
("MINT"): In 4Q23, MINT reported a threefold increase in core net
profit, setting the highest annual profit in the history of the
company. This growth was attributable to the ongoing the ongoing
recovery of hotel business due to rising travel demand and a
successful pricing strategy. Additionally, a revival of dine-in
activities and innovative product offerings led to the growth of
restaurant operations.
•
Indo Trans Logistics Corporation ("ITL"): :
The logistics sector in Vietnam is slowly recovering together
with global air and sea freight volumes and rates. Aside from
increasing efficiency, ITL is strategically expanding areas of the
business to position for an ongoing recovery in the sector. The
outlook for the business is encouraging with attractive secular
growth trends, including strong domestic economic growth and the
diversification of supply chains outside of China.
•
WCIB International Co. Ltd. ("WCIB"): The school
continues to operate ahead of budget as a result of higher
enrolments. Profitability continues to improve as the school ramps
up operations. During 2023 and subsequently, Symphony made
follow-on investments with other shareholders to support the
enhancement and expansion of the school to allow for additional
student capacity.
•
Liaigre Group ("Liaigre"): Showroom sales in the
US and Europe continued to be weak in Q4 2023, which is
representative of the overall demand for luxury furniture in those
markets. Orders from Asian showrooms conversely have been strong
and is reflective of more secular trends, such as growing
disposable income and changing tastes.
•
ASG Hospital Private Limited ("ASG"): Management
continue to grow the business with positive same hospital sales
growth, the transformation of the Vasan Health Care Pvt. Ltd
platform ("Vasan") and executing on an extensive pipeline of
greenfield and brownfield opportunities. Consultation and surgical
volumes continue to grow at ASG hospitals and at Vasan.
•
Meesho, Inc ("Meesho"): Meesho saw year-over-year
growth of 18.5% in monthly transacting users ("MTU") that reached
43 million in December 2023. Meesho had for the the second
consecutive quarter ended 31 December 2023 reported a positive
profit after tax ("PAT"). The company has been growing the Meesho
Mall business, a model similar to China's Taobao and Singapore's
Shopee, which includes branded merchandise and that has the
potential to drive a larger share of Meesho's profits.
MARKET OVERVIEW AND OUTLOOK
The global economy performed better
than expected in 2023 mainly driven by the strength in the US
economy. The US, which did not enter a recession in 2023 despite an
overwhelming consensus that it would, has proved remarkably
resilient in the face of the sharpest tightening of monetary policy
in 40 years. China on the other hand disappointed expectations,
with its property market continuing to weigh heavily on domestic
demand, despite hopes at the start of the year that the combination
of a lifting of Covid-19 restrictions and policy stimulus would see
a modest but steady improvement in growth in 2023.
As we look forward to 2024, there
are cyclical headwinds that could have repercussions. The Euro area
and the United Kingdom are either already in or likely to soon
enter a recession. China is expected to remain challenged by its
property market woes, weak domestic demand and limited policy
flexibility.
The IMF projects India's growth to
remain strong at 6.5% in both 2024 and 2025, reflecting resilience
in domestic demand. India saw the market capitalisation of the
Indian stock market rise by 80% from January 2020 to January 2024.
In the same period the number of 'demat' accounts (electronic
accounts to trade shares in the stock market) increased from 41
million in FY2020 to 114 million in FY2023, reflecting the rise in
domestic investor participation. As per Goldman Sachs estimates
only 60 million Indians or 4% of India's working age population has
a per capital income of over US$10,000, and this number is
projected to grow to 100 million by 2027. This rapidly growing
cohort of 'Affluent India' should benefit
our portfolio.
The IMF has forecast 4.4% growth in
Thailand's economy in 2024 versus 2.5% in 2023. The IMF noted that
despite robust private consumption buttressed by a rebound in
tourism, the economy faced challenges from weak external demand and
domestic investment in the past year. Growth is projected to
accelerate in 2024 due to the government's fiscal stimulus measures
and a rebound in the tourism industry. The Thai Government has set
a target of 40 million tourist arrivals in 2024 following the 28
million received in 2023. The government's decision to relax visa
policies, particularly for travellers from China and India, is
strategically designed to enhance Thailand's appeal as a prime
destination for international tourists.
Vietnam saw GDP growth of 5.1% in
2023, which is forecast to rise between 6-6.5% in 2024, making
Vietnam one of the fastest growing economies in Southeast Asia. The
pick-up in GDP growth will be driven by rising exports and
manufacturing, tourism, and a modest recovery in domestic
consumption. The country has seen an increase in Foreign Direct
Investment ("FDI") with US$23 billion being invested in 2023 and
current estimates are that US$30 billion will be invested in 2024.
The visit by President Biden in September 2023 has encouraged many
companies to consider relocating or expanding outside China and
into Vietnam. South Korea has stated that companies from their
country will invest more than US$100 billion into Vietnam by
2025.
Despite elevated risks in global
macro-conditions we remain engaged with our investee companies,
actively monitoring and guiding their progress through these
challenging times. We maintain confident in their resilience and
growth potential.
COMPANY UPDATE
Symphony's listed investments
accounted for 13.8% of NAV at 31 December 2023 (or US$0.1024 per
share), which compares to 14.5% of NAV (or US$0.1026 per share) at
30 September 2023.
The value of Symphony's unlisted
investments (including property) comprised 88.6% of Symphony's NAV
(or US$0.6578 per share), which compares to 89.9% (or US$0.6342 per
share) at 30 September 2023.
Temporary investments accounted for
(2.4%) of NAV (or (US$0.0175) per share), which compares to (4.4%)
of NAV (or (US$0.0310) per share), per share at 30 September
2023.
Symphony's share price continued to
trade at a discount to NAV. At 31 December 2023, Symphony's share
price was US$0.39, representing a discount to NAV per share of
48.0%. This compares to a share price discount to NAV of 34.5% at
30 September 2023.
PORTFOLIO DEVELOPMENTS
HOSPITALITY
Minor International Public
Company Limited ("MINT"):
is a global company focused on three core
businesses: hospitality, restaurants and lifestyle brand
distribution. MINT is a hotel owner, operator and investor with a
portfolio of over 530 hotels under the Anantara, Avani, Oaks,
Tivoli, NH Collection, NH, nhow, Elewana, Marriott, Four Seasons,
St. Regis and Radisson Blu brands in 55 countries across Asia
Pacific, the Middle East, Africa, the Indian Ocean, Europe and the
Americas. MINT is also one of
Asia's largest restaurant companies
with over 2,600 outlets system-wide in 24 countries under The Pizza
Company, The Coffee Club, Riverside, Benihana, Thai Express,
Bonchon, Swensen's, Sizzler, Dairy Queen, Burger King, Coffee
Journey and GAGA brands, as well as over 1,000 further outlets held
through MINT's strategic alliances (i.e. S&P and BreadTalk).
MINT is one of Thailand's largest distributors of lifestyle brands
and contract manufacturers. Its brands include Anello, BergHOFF,
Bossini, Charles & Keith, Joseph Joseph, Pop Mart, Zwilling
J.A. Henckels and Minor Smart Kids.
Company Update: MINT posted a
threefold increase in core net profit of THB 7,132 million for FY
2023, setting the highest annual profit in the history of the
company. For Q4 2023, MINT reported core revenue, EBITDA and
net profit growth of 9%, 17%, and 5% respectively, year-over-year.
This growth was attributable to the ongoing
recovery of hotel business due to rising travel demand and a
successful pricing strategy. Additionally, a revival of dine-in
activities and innovative product offerings led to the growth of
restaurant operations.
Over the next three years, MINT aims
to expand its portfolio by adding 200 - 250 new hotels and 1,000
restaurants, reaching a total of 780 hotels and 3,700 restaurants.
This target is supported by a robust pipeline of opportunities and
strategic focus towards an asset-light model, hotel management
contracts and food franchising, to drive sustainable growth while
minimizing capital expenditure, whilst focusing on emerging markets
in addition to other markets.
During the quarter, the value of
Symphony's investment in MINT marginally decreased from
US$52.7 million at 30 September 2023 to US$52.5
million at 31 December 2023. The change in value is
predominantly due to a decrease in MINT's share price by 6.4% and
an appreciation in the onshore Thai baht by 6.2%.
LIFESTYLE/ REAL
ESTATE
Minuet Limited
("Minuet"): is a joint venture
between the Company and a Thai partner. The Company 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. Since the original
investment, several parcels of land have been sold to local
developers and a large piece has been used to develop the
Wellington International School in Bangkok. As at 31 December 2023,
Minuet held approximately 186.75 rai (29.88 hectares) of land in
Bangkok, Thailand.
Company Update: The value of
Symphony's interest 31 December 2023 was US$61.8 million based on
an independent third party valuation. This compares to US$57.8
million at 30 September 2023. The change in value is predominantly
due to an appreciation in the offshore Thai baht rate by 6.3%
during Q4 2023.
Symphony's original investment in
Minuet was $78.3 million. Total distribution receipts from partial
sales of land have amounted to US$65.2 million. We believe, that
barring unforeseen developments, and given the development activity
in the area, the remaining land should enable us to realise
proceeds well in excess of the current valuation.
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, 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 the Hanwha Group. The
Niseko JV continues to effectively hold approximately 50% of the
total site, which includes a 100% interest in one parcel of land
which is being held for future development and/or sale.
Company Update:
More than 25 million foreign tourists
arrived in Japan in 2023, more than six times the number from the
previous year. Visitor numbers to Niseko have also increased during
the current 2023/2024 ski season and as a result, expected to fully
recover from, if not surpass pre-pandemic levels. Demand for real
estate remains strong, particularly from Asian buyers. We aim to
accelerate planning for the joint venture development following the
current ski season.
Desaru Property Joint
Venture in Malaysia: The Company has a 49% interest
in a property joint venture in Malaysia with an affiliate of
Destination Resorts and Hotels Sdn Bhd, a hotel and destination
resort investment subsidiary of Khazanah Nasional Berhad, the
investment arm of the Government of Malaysia. The joint venture has
developed a beachfront resort with private villas for sale on the
south-eastern coast of Malaysia and that are branded and managed by
One&Only Resorts ("O&O"). The hotel operations were
officially launched in September 2020.
Company Update: The hotel
performance continued to improve in Q4 2023 with higher average
room rates and lengths of stay, which grew overall room revenue
compared to the same period a year earlier. Management reported
that food and beverage and spa operations reported double digit
revenue growth during the same comparative periods. We are in
negotiations with a top residential brokerage and marketing firm to
assist with sales of the 47 villa development land plots that we
expect will take place over the next several years. The inclusion
of additional villas into the hotel rental pool is expected to
further drive hotel performance as it will support the high demand
for generational travel in the region.
Symphony invested an aggregate of
US$58.8 million in the joint venture as of 31 December 2023. The
fair value on the same date was US$27.1 million. This compares to a
fair value of US$24.3 million at 30 September 2023. The change in
value is due to an appreciation in the Malaysian ringgit by 2.2%
and different inputs used in the discounted cashflow valuation used
to value this investment.
Isprava Vesta Private
Limited. ("Isprava"):
is a company in the business of construction, design and sale of branded villas in
non-urban markets in India such as Alibagh, Goa and Kasauli. The
company also operates a complementary business line that rents and
manages luxury holiday homes under the brand name of "Lohono Stays"
and includes both homes constructed and sold by Isprava and
third-party homes in India and overseas.
Company Update: Isprava closed
the quarter ended 31 December 2023 with an order book in line with
financial targets. The company achieved revenue growth of 160% for
the nine-month period ended 31 December 2023 year-over-year, and is
EBITDA positive. The company is focused on streamlining operations
and is in the process of implementing ERP, client collection and
vendor billing management systems. At the close of 31 December
2023, Isprava had over 170 homes at various stages of development
in its current portfolio.
Lohono achieved a positive EBITDA
for the first time in December 2023. Lohono portfolio included over
120 homes on its platform at the end of 2023.
HEALTHCARE
ASG Hospital Private Limited
("ASG"): is a full-service eye-
healthcare provider with operations in India, Africa, and Nepal.
ASG was founded in Rajasthan, India in 2005. ASG's operations have
since grown to 147 eye-hospitals, which offer a full range of
eye-healthcare services, including outpatient consultation and a
full suite of inpatient procedures. ASG also operates optical and
pharmacy businesses that are located within hospitals. Symphony
invested in ASG in tranches from October 2019 through to July 2020
and subsequently acquired secondary shares in October 2021. In
2022, Symphony sold approximately a third of its shares at 2.4
times its cost of shares sold.
Company Update: Management
continue to grow the business with positive same hospital sales
growth, the transformation of the Vasan Health Care Pvt. Ltd
platform ("Vasan") and executing on an extensive pipeline of
greenfield and brownfield opportunities. Consultation and surgical
volumes continue to grow at ASG hospitals and at Vasan. The
management team are focused on improving margins at Vasan with the
rationalisation of hospitals and the restructuring of operations to
increase efficiency.
Symphony's net investment cost after
realisations in ASG was US$3.7 million at 31 December 2023.
The fair value of Symphony's investment on the same date was
US$41.0 million. This compares to US$36.1 million at 30 September
2023. The change in value is predominantly due to an increase in
the company's trailing EBITDA that was partially offset by a lower
comparable market multiple, used in the valuation of this
business.
Soothe Healthcare Pvt. Ltd.
("Soothe"): was founded in 2012 and
operates within the fast-growing consumer healthcare products
market segment in India. Soothe's core product portfolio includes
feminine hygiene and diaper products. Symphony completed an initial
investment in Soothe in August 2019 and subsequently made
investments through convertible notes and securities from 2020 to
2023.
Company Update: Soothe's
management reported continued success in the path to profitability
with the company achieving its first positive monthly EBITDA in
January 2024. Management's focus on higher margin distribution
channels and product mixes is expected to continue to drive higher
margins. While sales have weakened as a result of the company's
strategy, management expect the business to revert to growth with
its current more profitable structure in the coming
year.
Symphony's gross and net investment
cost in Soothe was US$13.4 million at 31 December 2023. The fair
value of Symphony's investment on the same date was US$18.2
million, which compares to US$20.7 million at 30 September 2023.
The difference is predominantly due to lower trailing revenue used
with comparable company market multiples to value this
investment.
LIFESTYLE
Liaigre Group
("Liaigre"): was founded in 1985 in
Paris and is a brand synonymous with discreet luxury, and has
become one of the most sought-after luxury furniture brands,
renowned for its minimalistic design style. Liaigre has a strong
intellectual property portfolio and provides a range of bespoke
furniture, lighting, fabric & leather, and accessories. In
addition to operating a network of 25 showrooms in 11 countries
across Europe, the US and Asia, Liaigre has a Design Studio which
undertakes exclusive architecture and interior design projects for
select yachts, hotels, restaurants and private
residences.
Company Update: Showroom sales
in the US and Europe continued to be weak in Q4 2023, which is
representative of the overall demand for luxury furniture in those
markets. Orders from Asian showrooms conversely have been strong
and is reflective of more secular trends, such as growing
disposable income and changing tastes. The Design Studio also
remains a bright spot for the business, as the design team reported
new projects in Q4 2023, particularly related to yachts. Management
expect an improvement in the housing market to benefit showroom
sales in the coming year.
Symphony's gross investment cost in
Liaigre was US$79.7 million at 31 December 2023. The net cost on
the same date, after deducting partial realisations, was US$67.6
million. The fair value of Symphony's investment was US$29.9
million at 31 December 2023. This compares to US$31.9 million at 30
September 2023. The difference in value is predominantly due to a
decrease in trailing EBITDA used with comparable company market
multiples to value this investment.
CHANINTR
("Chanintr"): Chanintr is a luxury lifestyle company, based in Thailand,
which primarily distributes high- end U.S. and European furniture
and household accessory brands, including Liaigre, Barbara Barry,
Baker, Herman Miller, Marquee, Minotti, Bulthaup kitchens amongst
others. Chanintr also provides FF&E solutions for real estate
and hotel projects. In 2019, Chanintr launched a new program called
Chanintr Residences that develops and showcases custom-designed
luxury residences as turnkey projects.
Company Update: Chanintr had a
strong Q4 2023 with orders 38% higher than the same period a
year earlier. The growth was driven predominantly by residential
projects. While sales grew by 74.9% in Q4 2023 quarter-on-quarter,
it remained 23% below Q4 2022, when the company benefited from
sales related to several large kitchen projects. The company
leased a new space next to Chanintr Craft for a clearance
center.
EDUCATION
WCIB International Co. Ltd.
("WCIB"): Symphony entered into a joint venture with WCIB International
Co. Ltd. ("WCIB"), that developed and operates Wellington College
International Bangkok, the fifth international addition to the
Wellington College family of schools from the UK. WCIB operates a
co- educational school that began operations in August 2018 and
will ultimately cater to over 1,500 students aged 2-18 years of age
when all phases are fully complete.
Company Update: The school
continues to operate ahead of budget as a result of higher
enrolments. Profitability continues to improve as the school ramps
up operations. During 2023 and subsequently, Symphony made
follow-on investments with other shareholders to support the
enhancement and expansion of the school to allow for additional
student capacity.
LOGISTICS
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 bought the shares that had originally
been held by Singpost, the Singapore Post office, at a cost of
$42.6 million for a roughly 28.6% interest. Following the sale of a
small number of shares in Q2 2023 to a strategic Asian logistics
company (at 4.6 times Symphony's cost of shares on a net basis) as
part of a larger secondary offering, Symphony's interest was 27.4%
at 31 December 2023.
Company Update: The
logistics sector in Vietnam is slowly
recovering together with global air and sea freight volumes and
rates. Aside from increasing
efficiency, ITL is strategically expanding areas of the business to
position for an ongoing recovery in the sector. The outlook for the
business is encouraging with attractive secular growth trends,
including strong domestic economic growth and the diversification
of supply chains outside of China.
Symphony's gross and net investment
cost related to ITL at 31 December 2023 was US$42.6 million and
US$35.3 million, respectively. The fair value for Symphony's
interest in ITL on the same date was US$74.6 million, which
compares to US$61.8 million at 30 September 2023. The change in value is
predominantly due to an increase in trailing EBITDA and to a less
extent, comparable company trading multiples, which are used to
value this investment.
NEW ECONOMY
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 an end-to-end solution for
workplace flexibility on a single technology platform, to help
businesses navigate the new hybrid workplace.
The SaaS technology includes four key aspects - Desk
Management, Workforce Rostering, Demand & Supply, Expenses
& Chargeback, and Asset Management; bringing together key
workforce and workplace considerations for a future-ready
solution.
Company Update: The adoption of
the hybrid workplace model has led to
growth in user activity with clients including a number of Fortune
500 companies. Smarten Spaces currently operates in over 30 countries, with
significant traction in North America.
The company has been faced with a
restricted funding and has therefore focused on cost reductions in
order to reach a cashflow positive position. This has led to
reduced resources for sales and marketing. Despite this, the
company has a strong business pipeline that resulted in recurring
revenue growth of 17% in Q4 2023 compared to the prior
quarter. Smarten is currently rolling out
their next generation office management product with AI
capabilities to provide space optimization features to enhance
collaboration and office space utilization.
August Jewellery Pvt. Ltd.
("Melorra"): Founded in January 2015, Melorra is an omni-channel fast
fashion Indian jewellery company that introduces a fresh collection
of new designs every Friday. Melorra adopts a minimal inventory
model that uses 3-D printing technology to achieve just-in-time
manufacturing to bring products to market efficiently. The company
currently has 29 operational experience centres across
India.
Company Update: The
company pivoted to focus on offline sales and has changed product
mix to higher margin jewellery that include diamonds.
Although offline operations have been
performing well, Melorra has had to restrict online operations due
to capital constraints that has materially affected overall
performance. Symphony is working closely with the management team
to assist in raising new capital.
Good Capital Partners ("Good
Capital" or "GCP") and Good Capital Fund I ("GCF1")& Good
Capital Fund II ("GCF2"):
GCP is majority owned by brothers Rohan and Arjun
Malhotra who have been investing their own capital since 2014 to
create a thriving ecosystem of technology start-ups. Symphony
announced its investment in July 2019 with a 10% stake in GCP and
serving as an anchor investor in its first fund, GCF1. In
March 2023, Symphony made a commitment to GCF2.
Company Update: GCFI made no
new fund investments in the quarter ended 31 December 2023. The
Fund's cumulatively deployed capital on the same date was US$12.95
million across 20 core fund investments and 58 seed investments
through the Bharat Founders Fund ("BFF"), an early stage venture
group of successful Indian entrepreneurs, where the cheque size is
smaller. Currently, the Fund is in closing conversations regarding
a follow-on investment. At an aggregate
level, the MOIC at the close of the quarter ended 31 December 2023
was approximately 2.29x.
GCF2 made 5 new fund investments in
the quarter and is in the process of closing an additional 2
investments in Q1 2024.
Catbus Infolabs Private
Limited ("Blowhorn"):
In August 2021, Symphony invested in
Catbus Infolabs Private Limited, the owner of the
Blowhorn platform. Blowhorn is a same-day intra-city last-mile
logistics provider headquartered in Bangalore, India. The company
provides seamless transportation, warehousing, and a fully
technologically integrated system to manage the end-to-end supply
chain process through an asset-light transportation and distributed
micro-warehousing network.
Company Update: The adoption of e-commerce and direct-to-consumer
business models in India is continuing to grow, creating tailwinds
for the logistics industry. However, due to the challenging fund
raising environment, the company has reduced cash spending in order
to extend its runway that has led to revenues for the 12-month
period ended December 2023 decreasing by
39% quarter-on-quarter. The company recently received funding from
existing investors and is currently working on securing further
funding from existing and external investors.
House of Kieraya Private
Limited ("Furlenco"): Founded in
October 2012 in Bangalore, India, Furlenco is a residential
furniture rental services business. The business has since expanded
to selling refurbished & recycled furniture, offering furniture
and appliance subscription services under the brand UNLMTD,
and manufacturing furniture in house.
Company Update: Furlenco ended
the year strong with December witnessing the onboarding of
approximately 7,000 customers, which is the highest monthly growth
figure over the past two years. The introduction of monthly plans
by Furlenco has gained traction and the company reported 50%
month-on-month growth in acquisitions in December 2023. Apart from
the equity raise from Sheela Foams Limited during the past year,
the company also took steps to reduce costs, which benefit will be
reflected in the coming quarters.
Meesho, Inc
("Meesho"): Founded in March 2016 in
Bangalore, India, Meesho is a social e-commerce platform to sell to
the next 500 million Indians coming online. Meesho is the most
downloaded app globally and is currently the third largest
e-commerce platform in India behind Flipkart and Amazon.
Company Update: Meesho saw
year-over-year growth of 18.5% in monthly transacting users ("MTU")
that reached 43 million in December 2023. The number of net orders,
the net merchandise value ("NMV") and revenue increased by 33.0%,
17.8% and 36.2% during the same period, respectively. The NMV
growth has been aided by significant reduction in cancellations and
orders returned to origin ("RTO"), which was partially offset by a
decline in average order value ("AOV"). Revenue growth was driven
by a higher take-rate on NMV. Meesho had for the the second
consecutive quarter ended 31 December 2023 reported a positive
profit after tax ("PAT"). The company has been growing the Meesho
Mall business, a model similar to China's Taobao and Singapore's
Shopee, which includes branded merchandise and that has the
potential to drive a larger share of Meesho's profits.
SolarSquare Energy Private
Limited ("Solar Square"):
Solar Square was founded in 2015 and is a rooftop
solar power services company that focuses on residential homes,
primarily standalone houses, gated societies, and small commercial
centres. The company aims to make clean energy affordable and
accessible and become the trusted brand in this space.
Company Update: In 2023,
130,000 homes adopted solar power in India. Solar Square accounted
for 4,500 of these homes and has 3.5% market share while operating
in ten major cities in India. The Government of India announced a
target for ten million homes to adopt solar power over the next
three years, which equates to a US$25 billion opportunity. Solar
Square is ranked the number two residential solar brand in India
after Tata Power. The company is currently in discussions to raise
a bridge round of financing which is expected to close
shortly.
MAVI Holding Pte. Ltd.
("Mavi"): In
December 2022 Symphony invested in Mavi, a
B2B insurance and warranty programme administration services
company headquartered in Singapore with operations in India,
Thailand, and Singapore.
Household wealth is growing in South
and South-East Asia with the middle class expanding rapidly. Yet
these regions are highly under-insured with a lack of access to
insurance products. Mavi is an early-stage start-up business with a
goal to develop insurance products that are accessible, competitively priced, and tailored for the Asian
markets. The company will provide insurance and warranty programme
management services and partner with insurance and carriers in the
region to bring these products to market.
Company Update: Mavi continued
to grow revenues in Q4 2023 through both the insurance business in
Singapore as well as the automotive warranty business in India. The
Company is continuing to build and secure partnerships for its
insurance and warranty services across Asia and has launched with
an insurance provider to bring Mavi's insurance products to the
Indian market.
SUBSEQUENT EVENTS
Subsequent to 31 December
2023:
·
the Company sold 3.03 million warrants of MINT for
a total net consideration of US$36,000
·
the Company completed the third tranche of its
investment in Mavi Holding Pte. Ltd. The total consideration was
less than 1% of NAV
·
the Company funded a capital call from the Good
Capital Fund I as part of its commitment as an anchor investor. The
capital call amounted to less than 1% of the Company's
NAV.
·
the Company funded a capital call from the Good
Capital Fund II as part of its commitment as an anchor investor.
The capital call amounted to less than 1% of the Company's
NAV.
·
the Company completed a follow-on investment in
WCIB International Co. Ltd. The investment amounted to less than 1%
of the Company's NAV.
·
the Company completed a follow-on investment in
Catbus Infolabs Private Ltd. The investment amounted to less than
1% of the Company's NAV.
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.
Notes:
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 September 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.
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 DISTRIBUTION WOULD BE UNLAWFUL. THESE
MATERIALS DO NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE
SOLICITATION OF AN OFFER TO BUY OR 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 BE REGISTERED UNDER THE
SECURITIES LAWS OF SUCH JURISDICTIONS AND 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