Harmony Asset Limited
TSX : HAR

Harmony Asset Limited

November 18, 2008 22:37 ET

Harmony Asset Announces Unaudited Consolidated NAV and Posts Third-Quarter and Nine-Month Results

HONG KONG, CHINA and TORONTO, ONTARIO--(Marketwire - Nov. 18, 2008) - Harmony Asset Limited (TSX:HAR)(HKEX:0428) announced that as at October 31 and September 30th, 2008, its unaudited consolidated net asset value ("NAV") per share was HK$5.84 and HK$6.87 respectively. These figures represented successive decreases from a HK$7.22 NAV at the end of August.

The decrease in NAV of just under 20 percent was mainly due to decreases in the market prices of listed securities held by Harmony, and occurred in the context of much steeper declines in the Hong Kong and Chinese exchanges during the period.

The company also announced its third-quarter and nine-month results for the periods ending September 30, 2008. Despite a rise in turnover as well as interest and dividend income, the fair value loss on listed securities significantly affected performance. A complete reporting of the company's results are to be found on SEDAR (www.sedar.com) or on the company's website (www.harmonyasset.com.hk). In summary:

- Aggregated turnover, other revenue, and other losses and gains of the Group for the nine months ended 30th September, 2008 resulted in a loss of HK$5,884,769 as compared to a gain of HK$20,290,503 in the same period in the prior year, representing a 129% decrease.

- Net loss attributable to shareholders for the nine months ended 30th September, 2008 was HK$19,248,371 as compared to a profit of HK$7,938,484 in the same period in the prior year, representing a 342.47% decrease.

- Basic loss per share of the Group was HK cents 49.35 for the nine months ended 30th September, 2008 as compared to the earnings per share of HK cents 24.09 in the same period in the prior year, representing a 304.88% decrease.

"Although we are seeing some real challenges among our investees, Harmony's hands-on investment strategy helps us to moderate the worst effects of tough markets," said Dr. Augustine Chow, CEO of Harmony. "Our management teams can implement any required resource conservation in our investees, and in addition, our diversified portfolio helps to offset downturns in specific market sectors. With no debt on our solid balance sheet, Harmony is in a strong position to support its investees and help them continue to compete and grow."

Company of the Month-GP Harmonie Limited

GP, founded in 1966, is the first one-stop wedding service provider in Asia. The main outlet of this deluxe full-service event facility is located within Cyberport, a stunningly situated development in the southern part of Hong Kong Island. Hailed as Hong Kong's premier technology park, complete with residences, shopping mall, schools, and other facilities, Cyberport has evolved to welcome a more eclectic population.

Part of this evolution has seen the growth of GP Harmonie into a wedding and banquet powerhouse, with annual sales in fiscal 2008 of HK$15.8 million. With Cyberport's La Dynastie, a restaurant co-owned by Harmony Asset, supplying romantic ballroom and banqueting spaces, GP Harmonie provides such wedding necessities as a lovely Rose Chapel, hair salons, spas, wedding and bridesmaids' dresses to buy or rent, photographic studios, lingerie stores, make-up, event videotaping, florists, and even gift stores. It is the home of the "destination wedding" - brides need look nowhere else.

With ample surrounding land and expanding residential developments nearby, GP Harmonie, La Dynastie and their sister companies in the Cyberport Arcade offer great value for weddings, celebrations, and conferences while providing significant potential upside for Harmony. Beyond Cyberport, GP Harmonie has expanded to open a new wedding service centre in Tsim Sha Tsui, just across the harbour from the island of Hong Kong.

ABOUT HARMONY

Harmony Asset Limited is a Hong Kong-based investment company focused primarily on unlocking the value in overlooked, privately and publicly held, emerging Chinese companies. Harmony focuses on the private industry that is shifting to process technology and value-added services. It positions itself in sound emerging private companies, with the emphasis on those focusing on high growth from the domestic market in the following sectors: resources and materials, manufacturing/technology, and food and retail.

Disclaimer

Every attempt has been made to ensure the information contained herein is valid at the time of publication. Any statements involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that such opinions or estimates will be realized.

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