REG - Symphony Int Hdgs - Shareholder Update

Symphony International HoldingsAnnouncement

11/12/2023 07:00

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RNS Number : 2288W  Symphony International Holdings Ltd  11 December 2023

Symphony International Holdings Limited ("Symphony or the "Company")

 

11 December 2023

 

Dear Shareholders,

 

·    Symphony International Holdings Limited's ("Symphony" or the
"Company") unaudited Net Asset Value ("NAV") at 30 September 2023 was
US$362,310,346 and NAV per share was US$0.7058. This compares to NAV and NAV
per share at 30 June 2023 of US$403,587,911 and US$0.7862, respectively. The
decrease in NAV by 10.2% quarter over quarter is due to a decline in value of
 unlisted investment, particularly in the lifestyle and new economy sectors,
and Minor International Public Company Limited ("MINT").

·    Symphony's share price continued to trade at a discount to NAV. At 30
September 2023, Symphony's share price was US$0.46, representing a discount to
NAV per share of 34.5%. This compares to a share price discount to NAV of
47.3% at 30 June 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 3Q23, MINT
reported a record-high third quarter core net profit of THB 2.3 billion, an
increase of 13% y-o-y. For 9M23, MINT's performance also reached an all-time
high with core profit of THB 4.6 billion. During 3Q23, MINT declared an
interim dividend of THB 0.25 per share as a result of its operating
performance during the first half of 2023.

·    Indo Trans Logistics Corporation ("ITL"): : The logistics sector in
Vietnam continued to face headwinds, which affected ITL in Q3 2023.
Management have indicated they have begun to see a slow recovery with freight
volumes and yields improving since September. ITL's ports operations remain
stable and the group is expanding this part of the business.

·    WCIB International Co. Ltd. ("WCIB"): The school's enrolments
continue to be ahead of expectations, which is expected to drive stronger
profitability for the current academic year. Symphony participated in a
further capital raising during Q3 2023 with other shareholders to fund further
expansion and enhance facilities that will allow for more student capacity.

·    Liaigre Group ("Liaigre"): The market remained challenging in Q3 2023
for showroom furniture sales, particularly in Europe and the US. Management
expect the market for high-end furniture to remain subdued for the rest of the
year in these markets. Showrooms in Asia have been less impacted and remain a
key source of growth within the group.

·    ASG Hospital Private Limited ("ASG"): Management continue to execute
on an extensive pipeline of organic and inorganic opportunities to expand the
business. The group reported double digit revenue growth for the six-months
ended 30 September 2023. The integration and  revitalisation of Vasan Health
Care Pvt. Ltd, which was consolidated in March this year and added
approximately 90 eye-hospitals to the group, is on track with strong growth in
inpatient and outpatient admissions.

·    Meesho, Inc ("Meesho"): Meesho had the first profit after tax quarter
in the history of the company. It is also the first quarter with positive cash
flow leading to positive cash flow on a YTD basis. The company saw Monthly
Transacting User ("MTU") growth despite a high base effect from the prior
year.

 

 

 

 

 

 

MARKET OVERVIEW AND OUTLOOK

Economic growth and future growth prospects continued to diverge amongst major
economies. The United States continued to report strong growth, where GDP in
the third quarter came in at 4.9% on an annualised basis according to the
commerce department's Bureau of Economic Analysis. This was driven by strong
consumer spending and a strong labour market. Meanwhile, although China's GDP
grew by 4.9% in the third quarter, beating market expectations, Chinese
officials struck a cautious tone indicating domestic demand remained weak. A
modest cyclical rebound in exports is unlikely to reverse the ongoing
diversification of value chains away from China and negative demographic
trends. In Europe, Mario Draghi, the European Central Bank president delivered
a downbeat view of European economic growth, forecasting a recession by the
end of this year. Moreover, Russia's invasion of Ukraine caused major
commodity markets to fragment, and geopolitical tensions in the Middle East
could make matters worse.

Despite two years of rapid economic growth, S&P Global reported that India
continues to show a strong upward trajectory for the coming year underpinned
by private consumption and investment. India has become an attractive location
for multinationals that have contributed to strong foreign direct investment
("FDI") flows, particularly into manufacturing and technology. For example,
companies such as Google and Meta, Inc. have announced multi-billion dollar
investments into India. By 2030 S&P projects that 1.1 billion people will
have internet access, more than doubling from the estimated 500 million
internet users in 2020. India's GDP is forecast to rise from US$3.5 trillion
in 2020 to US$7.3 trillion in 2030, making it the third largest economy in the
world.

The IMF reported that Thailand's economy is projected to grow 2.7% in 2023,
slightly higher than 2.6% in 2022 as the tourism industry slowly recovers post
the pandemic. In November,  the Thai Government announced a 500 billion Thai
baht (US$13.87 billion) stimulus policy in order to boost the economy. The
government also announced visa free travel to visitors from countries like
China and India. Chinese tourists made up 11% of 40 million tourists in 2019,
but in 2023 against a projection of 4.4 million only 2.5 million have entered
the country so far. The government hopes that these measures will bring in
more tourists by the end of the year.

Vietnam's GDP in the third quarter of 2023 grew by 5.3% compared to the same
period the previous year. The figure is an improvement from the second
quarter's 4.1% growth. According to estimates released by the General
Statistics Office ("GSO"), the economy continued to be buoyed by the ongoing
recovery in the tourism sector, a brighter manufacturing outlook and improved
exports. National Assembly Chairman Vuong Dinh Huy said that Vietnam will
likely struggle to meet the official full-year growth target of 6.5% which is
already down from the previous year's 8.02%.

While global macro-conditions reveal heightened risks, we continue to work
with our investee companies to monitor and guide their progress during these
tumultuous times. We believe they are well positioned to grow despite the
near-term volatility.

COMPANY UPDATE

Symphony's listed investments accounted for 14.5% of NAV at 30 September 2023
(or US$0.1026 per share), which compares to 14.7% of NAV (or US$0.1158 per
share) at 30 June 2023.

The value of Symphony's unlisted investments (including property) comprised
89.9% of Symphony's NAV (or US$0.6342 per share), which compares to 88.8% (or
US$0.6980 per share) at 30 June 2023.

Temporary investments accounted for (4.4%) of NAV (or (US$0.0310) per share),
which compares to (3.5%) of NAV (or (US$0.0277) per share), per share at 30
June 2023.

Symphony's share price continued to trade at a discount to NAV. At 30
September 2023, Symphony's share price was US$0.46, representing a discount to
NAV per share of 34.5%. This compares to a share price discount to NAV of
47.3% at 30 June 2023.

PORTFOLIO DEVELOPMENTS

HOSPITALITY

 

Minor International Public Company Limited ("MINT"): is a global company
focused on three core businesses: hospitality, restaurants and lifestyle
brands 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,
Zwilling J.A. Henckels and Minor Smart Kids.

 

Company Update: In 3Q23, MINT reported record-high third quarter core net
profit of THB 2.3 billion, a 13% y-o-y increase over 3Q22. For 9M23, MINT's
performance also reached an all-time high with core profit of THB 4.6 billion.
During 3Q23, MINT declared an interim dividend of THB 0.25 per share in
respect of its operating performance during the first half of 2023.

 

Minor Hotels reported 8% y-o-y core net profit growth, increasing to a
record-high third-quarter net profit of THB 1.7 billion. This growth was
fuelled by strong results from its European hotel business as well as
operational improvement from its Thailand hotels and Anantara Vacation Club.
Europe achieved its highest-ever third quarter RevPAR and Bangkok hotels
outperformed pre-pandemic levels. In 3Q23, MINT opened three new hotels and
acquired a luxury resort in the Maldives with a partner- ADFD.

 

Minor Food reported core profit of THB 584 million in 3Q23, a 47% increase
from THB 399 million in 3Q22. In 3Q23 the total core restaurant revenue grew
by 4% y-o-y, attributable to top-line growth of Thailand, Australia and
Singapore hubs, together with an increase in profit contribution from joint
ventures. Leveraging higher operating efficiency and effective cost
management, 9M23 core EBITDA increased by 33% y-o-y to THB 5,060 million. Core
EBITDA margin increased to 21.8% in 9M23, compared to 18.9% in 9M22.

 

MINT has strengthened its balance sheet by reducing debt and an increasing
equity base resulting from continued improved financial performance. MINT's
net interest-bearing debt to equity ratio has reduced to 1.05x at the end of
3Q23 from 1.17x at the end of 2022.

 

Mr. Dillip Rajakarier, Group CEO of MINT expressed confidence in the full-year
2023 performance and further growth prospects. MINT Group looks forward to
strong year-over-year results in the next few quarters, particularly driven by
the hotel high season in Asia during 4Q23 and 1Q24.

 

During the quarter, the value of Symphony's investment in
MINT decreased from US$59.5 million at 30 June 2023 to US$52.7 million at
30 September 2023. The change in value is predominantly due to a decrease in
MINT's share price by 8.8% and a deprecation in the onshore Thai baht by 2.7%.

 

 

 

 

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 30 September 2023 Minuet held
approximately 186.75 rai (29.88 hectares) of land in Bangkok, Thailand.

Company Update: The value of Symphony's interest 30 September 2023 was US$57.8
million. This compares to US$59.9 million at 30 June 2023 based on an
independent third party valuation. The change in value is predominantly due to
a depreciation in the Thai baht by 3.7% during the same period.

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.

SG Land Co. Ltd ("SG Land"): SIHL, through a subsidiary, acquired
approximately 50% of the outstanding shares of SG Land in a JV with JCK
International Pcl ("JCK") (formerly Thai Factory Development Pcl). SG Land
owns the leasehold rights to SG Tower and Millenia Tower, which are office
buildings in central Bangkok, Thailand. The lease for SG Tower expired at the
end of October 2023 and the lease for Millenia Tower expires at the end of
November 2025.

Company Update: SG Land continues to make regular distributions to its
shareholders. In addition to a distribution during Q2 2023, a further
distribution was made in Q3 2023 bringing total distributions for the year to
US$1.0 million. SIHL, through a subsidiary, agreed to sell its interest in SG
Land and expects to complete the sale in Q4 2023.

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: The property market in Niseko continues to be vibrant with a
number of developments being launched and end-user demand remaining strong.
The coming ski season is expected to result in strong visitor numbers and
property sales.

The part of the site to be co-developed by the Niseko JV and the Hanwha Group
remains in the planning phase. We expect to accelerate design and marketing
work streams following the 2023/2024 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 with higher average
room rates and longer lengths of stay in Q3 2023 y-o-y. Management has been
successful in activating facilities for banqueting and events, which has
driven growth of F&B revenues. However, weekday occupancy continues to
remain below expectation. A number of initiatives are being undertaken by
management to address this, including the enhancement of the resort's spa
offering. The preparation related to the launch of the private residences is
ongoing.

Symphony has invested an aggregate of US$58.8 million in the joint venture as
of 30 September 2023. The fair value on the same date was US$24.3 million.
This compares to a fair value of US$27.5 million at 30 June 2023. The change
in value is due to different assumptions used in the valuation for this
investment.

Isprava Vesta Private Limited. ("Isprava"): is a company in the business of
construction, designing and sale of branded villas in non-urban markets in
India such as Alibagh, Goa and Kasauli. The company is also in the in the
business of renting 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 with a strong order book. The
gross profit margin came ahead of budget by 10% due to process enhancements,
operational efficiencies and streamlining vendor billing management. The
company launched a firm-wide ERP solution. At the close of the quarter,
Isprava had 159 homes at various stages of development which are on track as
per the original timeline commitments.

Lohono had 121 operational homes on its platform at the close of the quarter.
This is slightly below target due to the rationalization of the portfolio as
part of cost optimization initiatives and included homes that had fixed leases
and minimum guarantees. However, in core locations, the number of operational
homes increased above target. Prudent cost optimization of direct and
corporate costs have led to increased contribution and EBITDA margins for the
quarter.

 

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 149
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 execute on an extensive pipeline of
organic and inorganic opportunities to expand the business. The group reported
double digit revenue growth for the six-months ended 30 September 2023. The
integration and  revitalisation of Vasan Health Care Pvt. Ltd, which was
consolidated in March this year and added approximately 90 eye-hospitals to
the group, is on track with strong growth in inpatient and outpatient
admissions.

Symphony's net investment cost in ASG was US$3.7 million at 30 September 2023,
which is after reducing net proceeds received from the sale of shares
amounting to US$17.0 million in 2022. The fair value of Symphony's investment
at 30 September 2023 was US$36.1 million, which compares to US$31.0 million at
30 June 2023. The change in value reflects the improved performance of the
business and higher market multiples of comparable companies 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 has been successful in improving margins
by refocusing distribution to more profitable channels and reducing costs. The
rationalization of certain distribution has had some impact on overall sales,
but management have reported positive momentum with the initiatives
undertaken.

Symphony's gross and net investment cost in Soothe was US$13.4 million at 30
September 2023. The fair value of Symphony's investment on the same date was
US$20.7 million, which compares to US$19.5 million at 30 June 2023. The
difference in value is due to changes in certain assumptions used in the
valuation for 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 24 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: The market remained challenging in Q3 2023 for showroom
furniture sales, particularly in Europe and the US. Management expect the
market for high-end furniture to remain subdued for the rest of the year in
these markets. Showrooms in Asia have been less impacted and remain a key
source of growth within the group. Asian showroom orders for the nine-months
ended 30 September 2023 are 70% higher than the same period a year earlier.
The interior architecture business is also a bright spot for the business as
the pipeline of projects continue to grow.

Symphony's gross investment cost in Liaigre was US$79.7 million at 30
September 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$31.9 million at 30 September 2023. This compares to US$43.5 million at 30
June 2023. The difference in value is predominantly due to a decrease in
comparable company market multiples used to value this investment and trailing
12-month EBITDA for the company.

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 which will showcase
custom-designed luxury residences as turnkey projects.

Company Update: In Q3FY2023 and YTD2023, Chanintr's sales were down for both
developer and residential projects compared to the same periods a year
earlier. Sales closed for the 9-months to 30 September 2023 were down 25%
y-o-y, however, there are several projects in the pipeline that will enable
the company to partially catch-up in sales for 2023 compared to last year. The
company is in the product development stage for sustainable luxury products
and  will initially test the concept with ChanintrX Co and then extend it via
Martha Stewart and Chanintr Home brands.

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's enrolments continue to be ahead of expectations,
which is expected to drive stronger profitability for the current academic
year. Symphony participated in a further capital raising during Q3 2023 with
other shareholders to fund further expansion and enhance facilities that will
allow for more student capacity.

 

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.

Company Update: Symphony completed the sale of its interest in CTS during Q3
2023 and received further related contingent amounts in November 2023. The
sale generated a net return per annum and times the original cost of
investment (taking into account dividend distributions and contingent amounts
received) of approximately 24.0% and 2.5 times, respectively.

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 30 September 2023.

Company Update: The logistics sector in Vietnam continued to face headwinds,
which affected ITL in Q3 2023. Management have indicated they have begun to
see a slow recovery with freight volumes and yields improving since September.
ITL's ports operations remain stable and the group is expanding this part of
the business.

Symphony's gross and net investment cost related to ITL at 30 September 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$61.8 million, which
compares to US$63.6 million at 30 June 2023. The change in value is
predominantly due to a decline in trailing EBITDA used to value this business.

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 neutral position. This has led
to reduced resources for sales and marketing and as a result the Q3 2023 ARR
showed a modest increase of 0.8% q-o-q. Symphony made a further investment in
Smarten in Q3 2023 that amounted to less than 1% of NAV.

 

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 24
operational experience centres across India.

Company Update: Melorra continues to pivot towards more profitable channels,
which include stores and marketplaces. As a result, the company is reducing
the focus on online channels, which are are also more capital intensive. The
stores have shown all-time high gross margins on higher diamond sales, while
the demand from marketplace channels continues to remain strong. In the last
two months Melorra has successfully opened eight franchise stores taking the
total number of stores, including both company owned and operated and
franchise stores, to 31. The company plans to open an additional 10 stores
before 31 December. The company has been able to reduce EBITDA burn by 76.8%
from March 2023 by reducing marketing spend and overall headcount. The company
has a target to reach 50 stores by March 2024.

 

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 and in November 2022 committed to GCF2.

 

Company Update: Good Capital Fund I made no new fund investments in the
quarter. The Fund's cumulatively deployed capital is currently US$12.2 million
across 19 core fund investments and 58 Bharat Founders Fund investments
("BFF"), where the cheque size is US$25,000. Currently, the Fund is in closing
conversations for one new core investment. At an aggregate level, the MOIC at
the close of this quarter is approximately 2.25x.

 

Good Capital Fund II made one new fund investment in the quarter and is in the
process of closing an additional five new investments in Q4FY2023. The Fund's
cumulatively deployed capital is currently US$2.9 million across one core fund
investment.

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 fundraising environment, the company
has reduced cash spending in order to extend runway which has led to LTM
revenues decreasing by -12% q-o-q. At the end of Q3 2023 the company received
funding from existing investors and is currently working on securing further
funding from 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 include selling refurbished &
recycled furniture; UNLMTD, an annual furniture and appliance subscription
service and KreateOne, an in-house furniture manufacturing facility.

Company Update: Furlenco completed an investment by Sheela Foams Limited in
the quarter ended 30 September 2023. The infusion of US$36.6 million has put
the company on track towards meeting its business plan targets. The company
used the capital to reduce debt and has started its marketing initiatives to
grow the customer base. The company is working towards achieving profitability
without compromising on growth.

 

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 had the first profit after tax quarter in the history
of the company. It is also the first quarter with positive cash flow leading
to positive cash flow on a YTD basis. The company saw Monthly Transacting User
("MTU") growth despite a high base effect from the prior year. Delivered
orders grew due to a decline in Average Order Value ("AOV") due to better
pricing on the platform. NMV has been growing due to significant reductions in
cancellations and Return to Origin ("RTO"). The company also witnessed
sustained improvement in its take-rate and an increase in the gross profit
margin.

 

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 the space.

Company Update: The company had a strong quarter growing by 2x over Q3FY2022
and is currently acquiring on average 550 homes per month. By monthly volumes
Solar Square is the number two player in the market behind Tata Power.
Cumulatively Solar Square has acquired 9,000+ individual homes till now; each
powered by an average 3.5-4 kW of solar power. Each individual home which goes
solar saves an average of INR 45,000 per year in electric bills and offsets 4
metric tons of CO2 per year. Less than 0.5% homes in India have rooftop solar
compared to 7% in Brazil, 15% in Germany and 33% in Australia. The Government
of India's pro-active policy-making in the residential solar space will lead
to further expansion of the market in the years to come. Solar Square has
played a part in assisting the Government of India to shape policy in this
space.

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 generate revenues in Q3 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 30 September 2023:

 

·    Subsequent to 30 September 2023, Symphony received proceeds from the
sale of the Wine Connection Group. Work is ongoing to determine whether
conditions for incremental contingent sale proceeds have been met.

 

·    Subsequent to 30 September 2023, Symphony received contingent
proceeds related to the sale of CTS. The contingent proceeds amounted to less
than 1% of NAV.

 

·    Subsequent to 30 September 2023, Symphony funded capital calls
related to Good Capital Fund II. The total consideration was less than 1% of
NAV.

 

·    Subsequent to 30 September 2023, Symphony participated in a capital
raising for Catbus Infolabs Private Limited together with other key
shareholders. The total consideration was less than 1% of 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 (http://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

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