Harmony Asset Limited
TSX : HAR

Harmony Asset Limited

August 13, 2008 23:19 ET

Harmony Asset Announces Unaudited Consolidated Net Asset Value

HONG KONG, CHINA and TORONTO, ONTARIO--(Marketwire - Aug. 13, 2008) - Harmony Asset Limited (TSX:HAR)(HKEX:0428) announced that as at June 30th 2008, the unaudited consolidated net asset value ("NAV") per share of the Company was HK$7.60 (C$0.98), as compared to NAV of HK$7.30 (C$0.95) in May, a 4.11% increase.

The increase in NAV was mainly due to the increase in market price of listed securities held by Harmony as at June 30th 2008, and occurred despite a decline in both the Hong Kong and Chinese exchanges during the period. The total value of Harmony's listed portfolio increased by HK$8.3 million (C$1.07 million) or 6.8% to HK$130 million (C$16.84 million) as compared to the previous month's total value of HK$121.7 million (C$15.76 million).

Harmony Asset NAV, Listed Portfolio Value, and Share Price on HKEX and TSX



----------------------------------------------------------------
June 30, 2008 May 31, 2008 % change
----------------------------------------------------------------
NAV per share (HK$) 7.60 7.30 +4.11
----------------------------------------------------------------
Listed Portfolio Value
(HK$ millions) 130.0 121.7 +6.8
----------------------------------------------------------------
0428 on HKEX (HK$) 5.38 5.00 +7.6
----------------------------------------------------------------
HAR on TSX (C$) 0.80 0.80 0.0
----------------------------------------------------------------


Recent Developments

- Two of Harmony's investments, with an original investment of HK$9.5 million, have been submitted for listing on the Hong Kong Stock. Harmony's CEO, Dr. Augustine Chow, said, "Harmony is delighted with the progress made in both of these companies since our original investments, one and two years ago respectively. We expect the listings to occur by 2009, which, assuming P/E ratios comparable to others in their industries, is expected to deliver significant returns on our original investment. Our strategic approach of value-added investing has been borne out by the progress made by these companies, which demonstrates Harmony's ability to partner with management to develop a business strategy and effective management structure that results in above-average returns for shareholders."

- One of Harmony's investees, Challenger Auto Services Ltd., along with the Bank of Communications (BoCom) has launched a co-branded credit card, the Bank of Communications Challenger Credit Card, to its members. BoCom is one of the leading commercial banks in China and Hong Kong, with HSBC as one of its major shareholders. BoCom has an extensive network of more than 2,800 branches in some 80 cities. The launch will create a greater public awareness of Challenger's role as the largest one-stop automobile grooming and servicing company in Hong Kong. On August 7, 2008, the launch was written up in both the Oriental Daily News, and the Sing Tao Daily News, two of Hong Kong's leading newspapers.

Company of the Month-Samson Group (the "Group")

Products

The Group, started in 1976, produces high quality wire and electrical accessories for household appliances, computers, and motor vehicles. Most of their products are exported, primarily to the US, Australia, Japan, and EU markets. The Group also owns manufacturing facilities measuring 15,300 square meters, occupying 4 buildings with 20 production lines and employing 354 staff. The Group is an approved Hong Kong government tenderer and has won numerous contracts from sizable corporations and high profile civil engineering projects in Hong Kong.

Current Status

The Group's net profit for the year ending in March 2008 was HK$34 million (HK$35 million for the previous fiscal year). In 2008, Harmony acquired 30 percent of the Group for a consideration of HK$20.7 million. In that acquisition, the Group was therefore valued at HK$69 million, or 2.03 times earnings. Public companies in the same industry are valued at approximately 17 times earnings, so that Harmony's investment was acquired at a substantial discount to current market value.

Prospects

It is expected that the Group is eligible for listing on Hong Kong Stock Exchange or on another major stock exchange. Assuming a P/E ratio of 10 can be reached, the Group will have a market capitalization of HK$300 million, with Harmony's 30 percent stake providing a potential 335 percent return on investment.

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.

Contact Information