Mongolia Growth Group Ltd.

Climate Impact & Sustainability Data (2019, 2020)

Created a 3rd party agency business that produced approximately $97,000 of revenue during the second half of 2019 (14% of our revenue in Mongolia).

Sub-par (negative) returns on capital.
Difficulty extracting capital from Mongolia.
Lethargic Mongolian economy.
Extreme financial strain on tenants due to government measures to combat Coronavirus.
Reduced liquidity in the market, particularly for larger property assets.
Poor performance of securities portfolio over the past eighteen months.
Inability to identify a business with positive cash flow for investment outside Mongolia.
Operating losses (excluding potential gains from our public securities portfolio) for the foreseeable future.

Dramatically reduced offering prices of assets to increase sales.
Aggressively marketed properties at attractive prices.
Repaid USD $500,000 of debt with a top-4 Mongolian bank.
Focus on selling non-core property assets to diversify the business and invest in something with economic returns.
Repurchased 107,500 shares under Normal Course Issuer Bid.

COVID-19 pandemic and resulting lockdowns heavily impacted tenants' businesses, leading to reduced rental revenue and a halt in the third-party sales and leasing business.
Declining Mongolian economy.
Currency fluctuations (Mongolian Tögrög depreciation against the Canadian dollar).
Difficulty converting Mongolian Tögrög to US dollars.
Increased use of barter transactions in the Mongolian economy.
Potential for property assets to be confiscated by the government or stolen.

Offered discounts to tenants.
Focused on reducing costs in Mongolia and extending liquidity.
Sold non-core property assets to fund working capital needs and potential acquisitions.
Developed a data-analytics service (KEDM) to diversify revenue streams.
Invested in publicly traded securities as a liquid alternative to cash.
Continued to monitor and evaluate the impact of COVID-19 on property prices and the Mongolian economy.