Jade Road Investments Ltd (AIM:JADE) swung to a profit in its first half, a result partly attributable to the partial disposal of one investment.
The pan-Asian diversified investment vehicle, which is focused on uncorrelated and risk-adjusted long-term returns, made a net profit of US$1.02mln for the six months ended June 30, 2022.
Total income rose to US$1.56mln from interest and the profit from offloading part of its investment in Meize Energy Industries Holdings Ltd.
The company ended the first half with US$440,000 of cash, down from US$2.56mln at the end of the comparative period in 2021.
In the results statement, John Croft, Jade chairman, commented: "The past six months continued to pose a challenging period for the Chinese economy as it faces the slowest GDP growth forecast in four decades.
“The board is confident that significant opportunities exist for Jade Road going forward, particularly investment candidates in the IT, fintech, healthcare and online commerce sectors in Southeast Asia."
The company also provided an update on its current investments. Its investment manager and board continue to focus on divestment opportunities for Future Metal Holdings Ltd, and are exploring new sales channels to enhance the business, the company said.
Jade Road entered a sale agreement for 112,500 shares of series B preferred equity in Meize for US$1.2mln, which was settled in three equal tranches. It still has a 6.3% interest in the business.
Regarding DocDoc Pte Ltd, it said the investee company has continued to develop its 'Neo Insurer' model by building partnerships with insurance companies in the region.
It is also in discussions with various investors regarding capital raisings to position the business for its future growth.