Abrdn China Investment : Annual Report to 31 October 2022

abrdn China Investment Company Limited

Seeking long-term capital growth by investing predominantly in Chinese equities

Annual Report

31 October 2022

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are recommended to seek your own financial advice from your stockbroker, bank manager, solicitor, accountant or other financial adviser authorised under the Financial Services and Markets Act 2000 (as amended by the Financial Services Act 2012) if you are in the United Kingdom or, if not, from another appropriately authorised financial adviser.

If you have sold or otherwise transferred all your Ordinary shares in abrdn China Investment Company Limited, please forward this document, together with the accompanying documents immediately to the purchaser or transferee, or to the stockbroker, bank or agent through whom the sale or transfer was effected for transmission to the purchaser or transferee.

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To find out more about abrdn China Investment Company Limited, please visit abrdnchina.co.uk

abrdn Investment Trusts

@abrdnTrusts

abrdn China Investment Company Limited is a closed-end investment company with its Ordinary shares listed on the Premium Segment of the London Stock Exchange.

The Company's name, objective and investment policy were changed following approval by shareholders at an Extraordinary General Meeting on 26 October 2021, and in November 2021 the Company completed its combination with Aberdeen New Thai Investment

Trust PLC.

The Company seeks to produce long-term capital growth by investing predominantly

in Chinese equities.

abrdn China Investment Company Limited

1

Contents

Overview			Overview
Financial Information	02
Financial Calendar	03
Chairman's Statement	04
Strategic Report
Investment Manager's Report	09
ESG Highlights for the Company	12
Strategic
Information about the Manager, Investment Manager and
Investment Management Team	16
			Report
Portfolio
Ten Largest Investments	18
Investment Portfolio	19
			Portfolio
Governance
Directors' Report	22
Corporate Governance Statement	30
Promoting the Success of the Company	39
Report of the Audit Committee	42
Directors' Remuneration Report	44
Statement of Directors' Responsibilities	46
Governance
Depositary Report	47
Financial Statements
Independent Auditor's Report	49
Statement of Comprehensive Income	53
Statement of Financial Position	54
Statement of Changes in Equity	55
Statements	Financial
Statement of Cash Flows	56
Notes to the Financial Statements	57
Corporate Information (unaudited)
Alternative Performance Measures ("APMs") (unaudited)	79
Investor Information	81
AIFMD Disclosures (unaudited)	84
Glossary of Terms and Definitions	85	Information	Corporate
Notice of Annual General Meeting	87
Form of Proxy	92
Company Information	94

2Annual Report 2022

Financial Information

Financial Position as at 31 October 2022
NAV per Ordinary share2		Ordinary share price - mid market	Discount3
512.0p	448.0p	12.5%
2021	813.2p	2021	695.0p	2021	14.5%
Net Assets		Gearing - Net (cash) / debt3		Dividend yield
£231.8m	-3.6%		0.7%
2021	£373.8m	2021	-70.0%	2021	2.5%
Performance for the Financial Year ended 31 October 2022
Net asset value ("NAV") per		Ordinary share price total return1,3,4	MSCI China All Shares Index Net
Ordinary share total return1,3,4		-35.5%	Total Return in sterling terms
-37.0%	-31.5%
2021	19.8%	2021	18.7%	2021	10.7%
Revenue return per Ordinary share	Ongoing charges ratio ('OCR')3		Dividend per Ordinary share declared
4.0p		0.60%	in respect of the Financial Year
	3.2p
2021	-0.61p	2021	0.98%	2021	17.25p

1. Performance figures stated above include reinvestment of dividends on the ex-date.
2. See note 14 in the Notes to these Financial Statements for basis of calculation.
3. Definitions of these Alternative Performance Measures ('APMs') together with how these have been calculated can be found on pages 79 and 80.
4. The Company's 2021 performance was attributable to the fund being managed in accordance with its previous investment objective, which was to achieve consistent returns for shareholders in excess of the MSCI Emerging Markets Net Total Return Index in sterling terms and the new investment objective, following approval by shareholders at the EGM on 26 October 2021, which is to produce long-term capital growth by investing predominantly in Chinese equities.

NAV per ordinary share	Ordinary share price-mid market
At 31 October - pence	At 31 October - pence

900				813.2p		800				695.0p
800			698.3p			700
	663.3p				561.0p	605.0p
700	600.6p				600	515.0p
600					512.0p	500					448.0p
500
					400
400
					300
300
					200
200
					100
100
0	2018	2019	2020	2021	2022	0	2018	2019	2020	2021	2022

abrdn China Investment Company Limited

3

Financial Calendar

Overview

"October 2022 marked the first anniversary of our shareholders approving the Company's change of mandate, shifting from investing in a wide range of emerging market funds to concentrating on the compelling opportunities offered by Chinese equities. While this first Financial Year has seen some extremely challenging conditions, the Board believes that the long-term growth prospects for Chinese companies, which drove our proposal to change the Company's mandate, remain as compelling as ever. The performance of the portfolio and Chinese equity markets since the end of the Financial Year would appear to bear this out."

Financial Calendar

Online Shareholder	30 March 2023
Presentation
Annual General Meeting	13 April 2023
("AGM") (London)
Half year end	30 April 2023
Announcement of
Half-Yearly Financial	June 2023
Report for the six months
ending 30 April 2023
Financial year end	31 October 2023
Announcement of Annual	January / February
Report and Accounts
for the year ending	2024
31 October 2023

Strategic Report Portfolio

Governance

Financial Statements

Corporate Information

Helen Green, Chairman