Nordic Asia Investment Group – Quarterly report Q1 2022

This news item refers to the press release published on 2022-05-16 at 09.00, which can be read in its entirety on Nordic Asia's Investor Relations page under Press & News.

FIRST QUARTER 2022

During the first quarter of 2022, Nordic Asia has worked actively to optimize the portfolio and allocate the issue proceeds obtained from the IPO at the end of last year. During the period, Nordic Asia has taken in four new portfolio companies and divested two and increased the allocation in existing holdings. Despite a new wave of Covid-19 and continued restrictions, Nordic Asia's portfolio companies are well positioned within their respective market segments with strong underlying growth driven by China's growing domestic consumption, where demand is expected to gradually recover in the second half of 2022.

• The net asset value per common share amounted to SEK 6.77 compared to SEK 7.87 at the beginning of the quarter, which corresponds to a decrease of approx. 14%. This can be compared with MSCI China, which fell by around 14% during the corresponding period.
• The net asset value amounted to SEK 249 918 thousand compared to SEK 290 732 thousand at the beginning of the quarter, a decrease of SEK 40,814 thousand (-1 967).
• The result for the period amounted to SEK -40 064 thousand (-1 967). Earnings per common share (share classes A and B) amounted to SEK -1.08 (-0.61).
• During the quarter, net securities were acquired for SEK 71 890 000 (7,207), which refers to the allocation of the issue proceeds from the listing in December 2021, where allocation was made to both existing and new portfolio companies. At the end of the quarter, approximately 2/3 of the issue proceeds have been allocated.

AFTER THE END OF THE PERIOD

• The net asset value per common share amounted to SEK 6.41 as of May 12, 2022, a decrease of approx. 5% since the end of the first quarter. This can be compared with MSCI China, which fell by around 14% during the same period.

EXCERPTS FROM CEO COMMENTS

The global market was hampered in the first quarter of 2022 by high inflationary pressures as a result of central banks' expansionary monetary policy, where consumer purchasing power is now being increasingly tightened, while central banks are raising interest rates to combat inflationary pressures. However, China has been restrained in its monetary policy during the pandemic and the current inflation rate in China remains low compared to the rest of the world. Contrary to the global trends of accommodative monetary policy, China now has the opportunity to pursue a more expansionary monetary policy to support the domestic economy, and we are now seeing an improvement in credit impulse and lower mortgage rates for first-time home buyers.

Covid-19 has continued to affect China during the first quarter, where increased spreads of the Omikron variant resulted in new restrictions. In the short term, the domestic market is expected to be negatively affected, especially in the more affected areas where China has introduced strict restrictions in line with the country's "Dynamic Zero Policy" during the latter part of March and April.

China has reiterated its communication to the market about the growth target of 5.5% for 2022 with an expected higher economic activity in the second half of 2022. The number of new cases of Covid-19 has continued to decrease in the country at the beginning of May and leading economic indicators now shows a certain stabilization of the economy.

The full report can be downloaded from the company's website, https://nordicasiagroup.com/investerarrelationer/rapporter-presentationer

ABOUT NORDIC ASIA

Nordic Asia is a Swedish investment company with a focus on investments in primarily listed Chinese companies that focus on domestic consumption. The company's business concept is based on applying an investment model for long-term strategic ownership of listed companies with a focus on the growing Chinese consumer market. Nordic Asia has around twenty portfolio companies and invests in listed companies that are listed in Shanghai, Shenzhen, Hong Kong and the USA and that have a market capitalization of at least USD 1 billion.

MORE INFORMATION
For further information, please refer to the press release published on the Company's Investor Relations page.