ADAM holds a convertible bond of US$26.5mln in FLMH. It has a five-year maturity and as of 30 June its carrying value was US$27.8mln.
FLMH is the majority shareholder in a high-end Hong Kong-based food and beverage business with a 72-year history, said Adamas.
It operates two restaurants in Hong Kong’s Wan Chai and Kowloon districts as well as in Macao.
In addition, FLMH manages a high-end Cantonese restaurant, Guo Fu Lou, located in a five-star hotel in Central Hong Kong.
The restaurants in Wan Chai and Guo Fu Lou each hold a Michelin star.
Over the last 12 months, Adamas said the business has been impacted first by Hong Kong’s civil unrest and more recently by the COVID-19 pandemic.
Nevertheless, with its long history and having lived through previous calamities such as SARS, the directors believe it remains resilient in the current climate.
In addition, the main restaurant business is housed in a building which it owns, said Adamas, further providing it with flexibility in managing its fixed overheads.