1st Quarter 2009 Results

Indochina Capital Vietnam Holdings Limited 15-May-09 Not for distribution, directly or indirectly, in or into the United States or any jurisdiction in which such distribution would be unlawful. Indochina Capital Vietnam Holdings Limited (the "Company") Unaudited Financial Results for the three month period ended 31 March 2009 The Company today announces its unaudited consolidated financial statements for the period ended 31 March 2009 which have been prepared in accordance with IFRS standards. Net Asset Value (as at 31 March 2009): - Net Asset Value: U.S $205,505,307 - Outstanding shares: 45,631,229 - NAV per share U.S $4.50 Key Developments Period 01 January 2009 until 31 March 2009 The VN Index traded down during January and February with liquidity drying up to a paltry daily average trading volume of US$9.4 mm. Valuations as a result became increasingly reasonable. However, there has been little guidance globally and locally to provide confidence to investors that the markets are bottoming out. Whilst global stock markets have recently rallied and governments are all working towards the common goal of rescuing the economy it is too early to claim that we have reached the end of the tunnel for the global economy. Meanwhile Vietnam's economy has been remarkably resilient, but there is no certainty about the full implications of the global economic developments on Vietnam's exports and FDI. Even though the VN Index rallied between mid and the end of March and posted good gains it seems probable that Vietnam's stock market will see - as a result of the above described uncertainties - continued volatility in the coming months. Period 01 April until 29 April 2009 The VN Index continued the rally that began during the second half of March and increased by 14.6% during April, representing the best performing month of the year. The daily average trading value in April doubled compared to March and reached US$50 mm. This was the highest average daily trading value since October last year. However, foreign investors remained cautious and did not fully participate in the rally, although some including your manager took advantage of the high liquidity to restructure their portfolios. The economy showed further signs of resilience. The consumer price index increased by only 0.35% in during April, bringing year-on-year inflation down to 9.23%, the lowest level in 19 months. With domestic gold prices higher than world prices and gold export largely absent, exports still increased 1.5% in April against April last year. While exports of crude oil and coal plummeted on lower prices, exports in textile, electronics, rice, coffee, and seafood all increased in April, signaling true resilience in the export sectors. Meanwhile, imports in April decreased 27.7% against April last year. Exports for the first four months increased 2.1% against the same period last year, while imports decreased 40%. The cumulative trade surplus for the year narrowed to US$ 801 mm at the end of April. Fund Performance 1 January 2009 until 31 March 2009 The Fund experienced a 3.4% reduction in NAV since 31 December 2008. In the same period the exchange rate for Vietnam Dong against the US Dollar weakened by 1.8% and the Vietnam equities markets performed poorly, with the VN Index dropping by 11.3%. The Fund's listed equities portfolio performed in line with the VN Index, falling by 9.8% during the period, while the OTC portfolio fell by only 8.1 per cent. The only positive contribution to the portfolio was from bonds, which benefited from lower yields during the period (200 basis points for 5 year government bonds and 225 basis points for the 5 year BIDV corporate bond). CONSOLIDATED INCOME STATEMENT For the period from 01 January 2009 to 31 March 2009 (Unit: U.S $) INCOME - Interest income 1,060,176 - Dividend income 152,663 - Net loss on investments (6,740,985) - Net foreign exchange loss (496,614) ----------------- Net investment loss (6,024,760) EXPENSES - Legal and consulting fees from IPO - - Investment management fees (762,930) - Custodian fees (14,575) - Administration fees (35,749) - Transaction fees (206) - Professional fees (78,345) - Directors' fees (80,000) - Withholding tax (29,757) - Other operating expenses (134,605) ----------------- Operating Expenses (1,136,167) Capital reorganization Expenses (152,190) Loss before Tax (7,313,117) Corporate Income Tax - Net Loss after Tax (7,313,117) CONSOLIDATED BALANCE SHEET As at 31 March 2009 (Unit: U.S $) ASSETS - Cash and bank balances 62,858,400 - Balances due from brokers - - Receivables from reverse repurchase agreements - - Debt investments held-for-trading 35,521,659 - Equity investments 101,713,747 - Interest, dividends and other receivables 6,239,994 ----------------- Total Assets 206,333,800 LIABILITIES - Balances due to brokers - - Accrued expenses (828,493) ------------------ Total Liabilities (828,493) NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS 205,505,307 Represented by: - Issued Capital 470,667 - Share premium 451,113,162 - Treasury Stock (10,262,576) - Accumulated losses (235,815,946) ------------------ 205,505,307 Net Asset Value per Share, based on shares 4.50 outstanding CONSOLIDATED STATEMENT OF CASH FLOW For the period from 01 January 2009 to 31 March 2009 (Unit: U.S $) OPERATING ACTIVITIES Net loss for the period (7,313,117) Adjustments for - Interest income (1,060,176) - Dividends income (152,663) - Realised losses on debt and equity investments 2,845 trading - Unrealised gains on debt and equity investments - - Unrealised losses on debt and equity 6,738,140 investments ----------------- Operating loss before changes in working capital (1,784,971) - Change in receivables from investment 72,840 activities - Change in current liabilities 107,557 - Interest received 232,123 - Dividends received 20,383 - Change in deposits in escrow account for purchases of equity investments - ------------------- Net cash used in operating activities (1,352,068) INVESTING ACTIVITIES - Proceeds from sale of debt and equity 24,731 investments - Payments for purchase of debt and equity (91,653) investments ------------------- Cash flows used in investing activities (66,922) FINANCING ACTIVITIES - Proceeds from issue of new shares - - Payments for treasury shares - ------------------ Cash flows (used in)/generated from financing - activities NET DECREASE IN CASH AND BANK BALANCES (1,418,990) CASH AND BANK BALANCES AT 01/01/2009 64,277,390 ----------------- CASH AND BANK BALANCES AT 31/03/2009 62,858,400 For further information, please refer to either www.indochinacapital.com or contact: Indochina Capital Advisors Limited (Investment Manager) Beat Schuerch Tel: + 84 8 3910 15 25 CEO No representation or warranty is made by the Company as to the accuracy or completeness of the information contained in this announcement and no liability will be accepted for any loss arising from its use. This announcement 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. This announcement 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. End of Announcement ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.