中華匯聚基金 CONVERGENCE FUND 智者之選基金之子基金 A Sub-fund of Value Partners Intelligent Funds

半年度報告2015 SEMI-ANNUAL REPORT 2015 截至二零一五年六月三十日止六個月 For the six months ended 30 June 2015 Value Partners Limited 9th Floor, Nexxus Building 41 Connaught Road Central, Hong Kong Tel: (852) 2880 9263 Fax: (852) 2565 7975 Email: [email protected] Website: www.valuepartners.com.hk

In the event of inconsistency, the English text of this Semi-Annual Report shall prevail over the Chinese text. This report shall not constitute an offer to sell or a solicitation of an offer to buy shares in any of the funds. Subscriptions are to be made only on the basis of the information contained in the prospectus, as supplemented by the latest semi-annual and annual reports. CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

CONTENTS

Pages

General information 2-3

Manager’s report 4-10

Statement of financial position (unaudited) 11

Investment portfolio (unaudited) 12-19

Investment portfolio movements (unaudited) 20

SEMI–ANNUAL REPORT 2015 1 For the six months ended 30 June 2015 1 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

GENERAL INFORMATION

Manager Legal Advisors Value Partners Limited With respect to Cayman Islands law 9th Floor, Nexxus Building Maples and Calder 41 Connaught Road Central 53rd Floor, The Center Hong Kong 99 Queen’s Road Central Hong Kong Directors of the Manager Dato’ Cheah Cheng Hye With respect to Hong Kong law Mr Ho Man Kei, Norman King & Wood Mallesons Mr So Chun Ki Louis 13th Floor, Gloucester Tower The Landmark Trustee, Registrar, Administrator and 15 Queen’s Road Central Principal Office Hong Kong Bank of Bermuda (Cayman) Limited P.O. Box 513 Auditor HSBC House KPMG 68 West Bay Road P.O. Box 493 Grand Cayman KY1-1106 Century Yard Cayman Islands Cricket Square Grand Cayman KY1-1106 Custodian and Registrar’s Agent Cayman Islands HSBC Institutional Trust Services (Asia) Limited 1 Queen’s Road Central Information available from: Hong Kong Value Partners Limited 9th Floor, Nexxus Building 41 Connaught Road Central Hong Kong

Investor hotline : (852) 2143 0688 Fax : (852) 2565 7975 Email : [email protected] Website : www.valuepartners.com.hk

SEMI–ANNUAL REPORT 2015 2 For the six months ended 30 June 2015 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

GENERAL INFORMATION (Continued)

Recent awards and achievements

Corporate awards

2015 • The Asset Triple A, Investor and Fund Management Awards 2015 Fund Management Company of the Year (Hong Kong) – The Asset

• Asset Management Awards for Excellence 2014/15 Best Fund Provider – China Equity – Asian Private Banker

• 2015 Hong Kong’s Best Cross-Border Financial Institutionas Outstanding Fund Management Business – Hong Kong’s Wen Wei Po

2014 • Fund of the Year Awards 2014 (i) High Dividend Fixed Income – Outstanding Achiever (ii) China Equity – Outstanding Achiever (iii) Investor Education – ETF – Outstanding Achiever – Benchmark Magazine

• Hong Kong Business Awards 2014 Enterprise Award – DHL/South China Morning Post

• Management Firm of the Year – AsiaHedge Awards 2014

• 2014 - Asia Hedge Fund 25 Value Partners was ranked no. 2 in Asia Hedge Fund 25 – Institutional Investor’s Alpha Magazine, September 2014

• 2014 Top 100 Hedge Fund Value Partners was ranked as Asia’s largest hedge fund manager, and 58th worldwide – Institutional Investor’s Alpha Magazine, May 2014

• The Asset Triple A, Investor and Fund Management Awards 2014 Asset Management Company of the Year (Hong Kong) – The Asset

• Investment Performance Awards 2014 Asian Fund House of the Year – AsianInvestor

SEMI–ANNUAL REPORT 2015 3 For the six months ended 30 June 2015 3 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

MANAGER’S REPORT

What started as a normal market correction for Chinese stocks turned into an ugly stampede. In a market dominated by retail investors, who were sitting on huge paper gains, there was a mad rush to cash in at the first sign of restrictions on the use of margin financing. As of 8 July 2015, the Composite Index plunged 32% (in local currency terms) from its peak on 12 June, within a matter of weeks. Government measures to restore stability were too little, too late.

All of a sudden, euphoria gave way to big anxiety.

While China investing has always been a roller-coaster ride, this time the swing was wilder and more frightening than usual. From past experience, we know it is important to step back and evaluate calmly. Our conclusion is that the situation was not as bad as it might seem. Here are our reasons:

• Not a real collapse. Actually, despite the recent fall, Chinese equities as measured by the Shanghai A-share market (represented by the Shanghai Composite Index), still showed a gain of about 8% year to date and 70% over the past 12 months as of 8 July 2015 (all in local currency terms). The crash in June and early July 2015 has hurt those who entered the market recently, but the numerous investors who have been in the market for a longer period were still profitable. This explains a lack of real panic, and it is a reason not to over-react to the severe setback in June and July. After all, a bull market has to climb a wall of worry.

• “Capitalism with Chinese characteristics” means that the government has huge power to influence markets. Developing a healthy stockmarket is a top official priority, and many tools remain available to make this happen. For example, the government has significant room to reduce interest rates and bank reserve ratios. Unlike some Western countries, Chinese government agencies can intervene forcefully in the market to get what they want without the need to gain legislative approval. The central bank has come out to provide liquidity to the Corporation, a government-backed agency that has been buying shares in the market.

SEMI–ANNUAL REPORT 2015 4 For the six months ended 30 June 2015 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

MANAGER’S REPORT (Continued)

Our impression is that because the market’s recent fall hasn’t caused social or financial instability, the government hasn’t felt a pressing need to bring out the bazooka. China has the world’s biggest pool of savings, but the wealth is mainly allocated to bank deposits and real estate, with the amount tied up in stocks estimated at only 10% to 15% of household wealth.

• Some of the worst excesses in the market have been purged, at least for the time being. For example, the excessive use of margin loans to buy stocks is widely blamed for the plunge – but in recent weeks, the outstanding amount of margin loans has dropped to less than 1.5 trillion from a peak of 2.3 trillion renminbi on 18 June. The total is dropping so quickly that it should be below 1 trillion renminbi (the level at the end of 2014) by mid-July.

And valuations have become much more reasonable, especially for the Hong Kong-listed H shares, which is our favourite segment of the Chinese equity markets. As of 8 July 2015, the H shares (represented by the MSCI China Index) traded at about 9.2 times forward earnings. Chinese A shares – using the CSI 300 Index as the benchmark – were down to approximately 13.5 times forward earnings, a 9% discount to the 10-year average.

Market outlook

It is possible – only time will tell – that what has happened will be seen as a swift and frightening correction within the context of an on-going bull market. In a market with Chinese characteristics, brutal corrections need to happen from time to time to cure excesses that could otherwise make it impossible to sustain a healthy market.

The recent troubles do have some lingering impact, however. Renewed caution among investors is apparent, and in the big cities with concentrations of stockmarket speculators, there may be some negative wealth effect, we also see a possible slowdown in China’s reform agenda. The Chinese government is sincere about wanting to deregulate financial markets and further liberalize capital flows in and out of the country – but it may now do this more cautiously, to safeguard its power to carry out market interventions.

SEMI–ANNUAL REPORT 2015 5 For the six months ended 30 June 2015 5 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

MANAGER’S REPORT (Continued)

Fund performance and portfolio strategy update

Prior to the market turbulence, China Convergence Fund returned 23.4% in the first six months up to the end of June. For reference, the MSCI China Index was up 14.6% over the same period.

While it is prudent to be defensive, the rapid and unpredictable deterioration in market sentiment has undoubtedly made a negative impact on the Fund. In order to reduce the downside risk of the portfolio, we have made a number of changes on a stock level by the end of June. Our investments in A shares remained focused on large caps that were trading at attractive valuations and were less vulnerable to retail sentiment. We have also increased our exposure to large-cap stocks listed in Hong Kong. These portfolio changes reflected our disciplined value investing approach and should help mitigate some of the near-term drawdowns.

History may not repeat itself but it often rhymes. We believe this market correction will once again benefit the true value investors who invest based on a bottom-up approach. As the Chinese stockmarkets learn the lessons and become more mature, investors will gradually appreciate value investing and look into the fundamentals of companies.

Corporate update

We are pleased to announce that Value Partners has won two new awards in the second quarter. In The Asset Triple A Investor and Fund Management Awards 2015, we were named “Fund Management Company of the Year (Hong Kong)”. This highly acclaimed title recognizes our consistent efforts in achieving above-benchmark performance across different asset classes for our institutional and retail clients. In addition, we were also crowned “Best Fund Provider – China Equity” in the Asian Private Banker Asset Management Awards for Excellence 2014/15. Asian Private Banker is a prestigious industry publication established in 2009 for Asia’s private banking community.

SEMI–ANNUAL REPORT 2015 6 For the six months ended 30 June 2015 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

MANAGER’S REPORT (Continued)

Corporate update (Continued)

As we continue to grow, our leading position in the fund management industry is also reflected in the industry role played by our Chairman and Co-Chief Investment Officer Dato’ Cheah Cheng Hye. In the annual London Value Investor Conference on 20 May 2015, Dato’ Cheah was the only value investor in Asia that was invited to give a speech. In his presentation entitled “Chinese Stocks: From Ugly Duckling to Beautiful Princess,” Dato’ Cheah inspired the audience (with more than 400 people) with a brand new perspective on evaluating risks and opportunities in China’s stockmarkets.

Value Partners Limited 21 August 2015

All performance figures are sourced from HSBC Institutional Trust Services (Asia) Limited and Bloomberg (Data computed in US$ terms on NAV-to-NAV basis with dividends reinvested) as at 30 June 2015. Performance data is net of all fees.

Individual stock performance is not indicative of fund performance.

The views expressed are the views of Value Partners Limited only and are subject to change based on market and other conditions. The information provided does not constitute investment advice and it should not be relied on as such. All material has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. This material contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

SEMI–ANNUAL REPORT 2015 7 For the six months ended 30 June 2015 7 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

MANAGER’S REPORT (Continued)

China Convergence Fund: top holdings of securities as at 30 June 2015

Valuation Stock Industry (2015 Estimates) Remarks

China Traditional Drug Price: HK$6.32 China Traditional Chinese Medicine (“CTCM”) is a Chinese Medicine manufacturer P/E: 21.7x Chinese pharmaceutical company specialized in the (Code: 570 HK) P/B: 2.4x research and development, production, and sale of Yield: 0.4% traditional Chinese medicine (“TCM”). It offers its Market cap: products under the Xianling, Tongjitang, Xianling US$3.5 billion Gubao, Dezhong, and Feng Liao Xing brands. The company recently announced an acquisition which will further diversify its product portfolio and enable it to gain immediate access to the high-growth TCM granule market with a considerable market share. With its first mover advantage, leading market share and extensive hospital coverage, we believe CTCM will continue to lead the TCM formula granule market with strong growth potential ahead.

Inner Mongolia Yili Dairy product Price: CNY18.90 Inner Mongolia Yili Industrial (“Yili”) is the leading Industrial manufacturer P/E: 22.0x dairy group in China engaging in sectors including (Code: 600887 CH) P/B: 5.4x liquid milk, ice cream, infant milk powder and yoghurt. Yield: 2.3% Since 2010, its management has been committed to Market cap: channel optimization and product upgrade, resulting in US$18.7 billion a continuous operational improvement. Its market share would also grow further as Yili would be the major beneficiary of the policy-driven industry consolidation among domestic peers. At present, Yili is trading at a huge valuation discount to its closest peer, Mengniu, which is listed in Hong Kong’s stockmarket.

SEMI–ANNUAL REPORT 2015 8 For the six months ended 30 June 2015 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

MANAGER’S REPORT (Continued)

China Convergence Fund: top holdings of securities as at 30 June 2015 (Continued)

Valuation Stock Industry (2015 Estimates) Remarks

New China Life Insurance Price: HK$46.30 (“NCL”) is China’s third Insurance P/EV*: 1.1x largest life insurance company in terms of premiums. (Code: 1336 HK) Yield: 0.8% It has a nationwide distribution network and a market share of about 10% in China’s life sector, Market cap: offering a full range of life insurance via an extensive US$26.7 billion bancassurance network. Due to its heavier reliance on bancassurance compared with peers, NCL is undergoing a business mix reform since its IPO, and we see its business quality improved since the second half of 2013, with strong improvement seen in both margin and volume. China Real estate Price: HK$8.49 Sunac China (“Sunac”), headquartered in Tianjin, is a (Code: 1918 HK) P/E: 5.1x mid- to high-end residential and commercial developer. P/B: 1.2x Since its listing in 2010, Sunac has expanded its Market cap: Yield: 3.5% footprints to other six cities such as Shanghai, , US$3.7 billion , Wuxi, and Hangzhou. It has generated a property sales CAGR of 71% during 2010-2014, outpacing the industry average of 10%. In addition to rapid sales growth, Sunac stands out with its strong execution capability as shown by top market share and several land acquisitions. Given its business model of focusing on selected cities, competitive products and healthy balance sheet, Sunac will likely maintain decent growth in the next few years.

* EV = Embedded value

Note: The above investments made up 13.7% of China Convergence Fund as at 30 June 2015. The stock prices are based on the closing of 30 June 2015.

Individual stock performance/yield is not necessarily indicative of overall fund performance.

SEMI–ANNUAL REPORT 2015 9 For the six months ended 30 June 2015 9 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

MANAGER’S REPORT (Continued)

China Convergence Fund NAV per unit = US$181.21 (as at 30 June 2015)

Since launch return compared to index From 14 July 2000 to 30 June 2015

2,000% China Convergence Fund 1,712.1% MSCI China Index 1,500%

1,000%

500%

213.8%

0%

-500% 2000 2003 2005 2007 2009 2011 2013 2015

SEMI–ANNUAL REPORT 2015 10 For the six months ended 30 June 2015 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS AT 30 June 2015

30.6.2015 31.12.2014 US$ US$

Assets Financial assets at fair value through profit or loss 670,554,318 367,995,103 Interest, dividends and other receivables 2,658,001 66,079 Amounts due from unitholders 9,901,640 279,400 Amounts due from brokers 6,906,093 248,842 Cash and cash equivalents 26,509,112 5,771,952

Total assets 716,529,164 374,361,376

Liabilities Amounts due to unitholders 4,070,014 622,254 Amounts due to brokers 12,555,269 789,280 Management fees payable 742,763 351,445 Performance fees payable 16,038,921 4,244,654 Trustee fees payable 84,608 44,699 Tax provision 368,714 368,714 Bank overdraft – 25,724,076 Accrued expenses and other payables 211,295 55,825

Total liabilities 34,071,584 32,200,947

Net assets attributable to unitholders 682,457,580 342,160,429

Net asset value per unit – “A” units with 3,433,747 (31.12.2014: 2,003,213) units outstanding 181.21 146.89

– “Z” units with 3,873,100 (31.12.2014: 3,825,929) units outstanding 15.55 12.52

SEMI–ANNUAL REPORT 2015 11 For the six months ended 30 June 2015 11 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

INVESTMENT PORTFOLIO (UNAUDITED) AS AT 30 JUNE 2015

Fair % of Holdings value net assets US$

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Listed Equity Securities

China Aerosun Corporation 646,000 3,140,856 0.46 Gujing Distillery Co Ltd 2,054,470 8,056,433 1.18 China Merchants Property Development Co Ltd 2,733,785 8,040,233 1.18 China Merchants Securities Co Ltd 1,377,702 5,876,644 0.86 China National Accord Medicines Corporation Ltd 920,904 5,704,347 0.84 China National Nuclear Power Co Ltd 19,000 40,033 0.01 China Sports Industry Group Co Ltd 299,918 1,385,196 0.20 China Co Ltd 857,900 2,008,110 0.29 China Power Co Ltd 2,257,865 5,361,483 0.79 Chongqing Changan Automobile Co Ltd 2,936,122 7,510,455 1.10 Daqin Railway Co Ltd 2,467,498 5,584,807 0.82 Dawning Information Industry Co Ltd 100,000 1,395,892 0.20 DHC Software Co Ltd 556,157 2,577,623 0.38 Gansu Gangtai Holding (Group) Co Ltd 199,917 1,264,951 0.19 Appliances, Inc. of Zhuhai 391,203 4,029,835 0.59 Guang Dong Sitong Group Co Ltd 1,000 1,246 0.00 Co Ltd 8,000 44,287 0.01 Hangzhou Digital Technology Co Ltd 482,010 3,481,114 0.51 Huadian Power International Corporation Limited 2,191,810 3,929,089 0.58

SEMI–ANNUAL REPORT 2015 12 For the six months ended 30 June 2015 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2015

Fair % of Holdings value net assets US$

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)

Listed Equity Securities (Continued)

China (Continued) Huadong Medicine Co Ltd 237,423 2,735,845 0.40 Inner Mongolia Yili Industrial Group Co Ltd 2,520,944 7,680,849 1.13 Hengrui Medicine Co Ltd 369,864 2,655,685 0.39 Co Ltd 50,000 2,076,751 0.30 NARI Technology Co Ltd 609,749 2,033,742 0.30 Group Co Ltd 2,997,450 5,518,261 0.81 Renhe Pharmacy Co Ltd 299,949 830,237 0.12 Heavy Industry Co Ltd 500,000 781,049 0.11 Shanghai Bailian Group Inc Co Ltd 1,868,294 4,110,247 0.60 Tasly Pharmaceutical Group Co Ltd 323,900 2,598,218 0.38 Vanfund Urban Investment and Development Co Ltd 200,000 635,156 0.09 Dilong New Material Co Ltd 400,000 1,689,451 0.25 Zhejiang Red Dragonfly Footwear Co Ltd 1,000 4,520 0.00 ZTE Corporation 413,016 1,585,296 0.23

104,367,941 15.30

SEMI–ANNUAL REPORT 2015 13 For the six months ended 30 June 2015 13 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2015

Fair % of Holdings value net assets US$

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)

Listed Equity Securities (Continued)

Hong Kong – H shares AviChina Industry & Technology Co Ltd – H Shares 6,016,000 5,882,290 0.86 CGN Power Co Ltd – H Shares 26,830,000 14,051,288 2.06 China Communications Construction Co Ltd – H Shares 3,104,000 4,644,609 0.68 Co Ltd – H Shares 21,045,000 12,623,254 1.85 China Longyuan Power Group Corporation Ltd. – H Shares 6,098,000 6,780,537 0.99 China Shipping Development Co Ltd – H Shares 9,028,000 6,835,953 1.00 CRRC Corporation Ltd. – H Shares 6,410,200 9,839,839 1.44 GF Securities Co Ltd – H Shares 3,649,800 9,387,796 1.38 Guangzhou Shipyard International Co., – H Shares 2,000,000 7,365,556 1.08 Co Ltd – H Shares 8,566,000 6,718,171 0.98 Huadian Fuxin Energy Corporation Ltd. – H Shares 31,486,000 15,068,181 2.21 Huadian Power International Corporation Ltd. – H Shares 8,854,000 9,810,748 1.44 Corporation Ltd. – H Shares 20,390,000 8,232,486 1.21 Co Ltd – H Shares 4,801,800 13,564,932 1.99 Copper Co Ltd – H Shares 1,461,000 2,438,675 0.36 Legend Holdings Corporation – H Shares 1,282,200 7,169,920 1.05 New China Life Insurance Co Ltd – H Shares 3,954,200 23,616,147 3.46 People’s Insurance Co. (Group) of China Ltd. – H Shares 17,077,000 10,926,037 1.60 (Group) Co. of China Ltd. – H Shares 1,211,500 16,362,118 2.40

SEMI–ANNUAL REPORT 2015 14 For the six months ended 30 June 2015 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2015

Fair % of Holdings value net assets US$

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)

Listed Equity Securities (Continued)

Hong Kong – H shares (Continued) Poly Culture Group Corporation Ltd. – H Shares 415,500 1,653,467 0.24 Shanghai Pharmaceuticals Holding Co Ltd – H Shares 930,500 2,592,624 0.38 Engineering (Group) Co Ltd – H Shares 5,983,500 5,541,779 0.81 Sinotrans Ltd. – H Shares 2,565,000 1,710,596 0.25 Xinjiang Goldwind Science & Technology Co Ltd – H Shares 3,212,600 6,497,887 0.95 Yunnan Water Investment Co Ltd – H Shares 2,438,000 2,085,051 0.31 ZTE Corporation – H Shares 5,485,920 13,954,870 2.04 Zhuzhou CSR Times Electric Co Ltd – H Shares 1,890,000 14,164,700 2.08

239,519,511 35.10

Hong Kong – Red chips BeijingWest Industries International Ltd. 180,244,000 11,857,699 1.74 CGN Meiya Power Holdings Co Ltd 8,806,000 3,373,685 0.49 China Everbright Ltd. 2,804,000 9,729,706 1.43 China Power International Development Ltd. 11,099,000 8,461,371 1.24 China Power New Energy Development Co Ltd 88,740,000 6,639,217 0.97 China Taiping Insurance Holdings Co Ltd 2,339,200 8,403,534 1.23 CSPC Pharmaceutical Group Ltd. 6,092,000 6,019,468 0.88 Group Co Ltd 7,961,000 3,850,954 0.56 Shenzhen Investment Ltd. 8,290,000 4,063,568 0.60 Technovator International Ltd. 3,742,000 3,176,136 0.47

65,575,338 9.61

SEMI–ANNUAL REPORT 2015 15 For the six months ended 30 June 2015 15 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2015

Fair % of Holdings value net assets US$

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)

Listed Equity Securities (Continued)

Hong Kong – Others BYD Electronic (International) Co Ltd 4,966,500 6,726,810 0.99 Carnival Group International Holdings Ltd. 35,610,000 5,512,171 0.81 China High Speed Transmission Equipment Group Co Ltd 6,090,000 5,286,908 0.77 China Modern Dairy Holdings Ltd. 6,355,000 2,287,121 0.33 China Traditional Chinese Medicine Co Ltd 27,264,000 22,226,756 3.26 Concord New Energy Group Ltd. 77,620,000 5,907,382 0.87 Fosun International Ltd. 8,124,500 19,115,731 2.80 Future Land Development Holdings Ltd. 35,232,000 6,544,391 0.96 GCL-Poly Energy Holdings Ltd. 24,149,000 5,575,985 0.82 Electronics Group Co Ltd 1,938,000 5,224,798 0.76 Jutal Offshore Oil Services Ltd. 9,910,000 1,291,114 0.19 Luye Pharma Group Ltd. 9,577,500 10,254,151 1.50 Real Gold Mining Ltd. 3,046,000 550,082 0.08 Sunac China Holdings Ltd. 21,394,000 23,429,829 3.43 Sunny Optical Technology (Group) Co Ltd 6,465,000 14,093,688 2.07 Holdings Ltd. 650,900 12,988,949 1.90 Tiangong International Co Ltd 24,660,000 3,976,239 0.58 United Photovoltaics Group Ltd. 13,890,000 2,185,906 0.32

153,178,011 22.44

Total Hong Kong 458,272,860 67.15

SEMI–ANNUAL REPORT 2015 16 For the six months ended 30 June 2015 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2015

Fair % of Holdings value net assets US$

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)

Listed Equity Securities (Continued)

Singapore SIIC Environment Holdings Ltd 44,960,800 6,520,419 0.96

Unlisted equity security Peace Mark (Holdings) Ltd. 1,912,000 – –

Participation Notes BOCI Financial Products Ltd. (Daqin Railway Co Ltd A Shares) P Note 24 Nov 2015 1,260,200 2,851,833 0.42 BOCI Financial Products Ltd. (ZTE Corporation A Shares) P Note 24 Dec 2015 319,400 1,225,857 0.18 BOCI Financial Products Ltd. (ZTE Corporation A Shares) P Note 18 Dec 2015 376,000 1,443,088 0.21 CICC Financial Trading Ltd. (China Vanke Co Ltd A Shares) P Note 21 Oct 2017 2,048,300 4,795,070 0.70 CICC Financial Trading Ltd. (Huadong Medicine Co Ltd A Shares) P Note 15 Dec 2017 276,649 3,187,826 0.47 CICC Financial Trading Ltd. (Inner Mongolia Yili Industrial Group Co Ltd A Shares) P Note 23 Sep 2017 1,999,806 6,093,409 0.89

SEMI–ANNUAL REPORT 2015 17 For the six months ended 30 June 2015 17 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2015

Fair % of Holdings value net assets US$

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)

Participation Notes (Continued) Credit Suisse Nassau (CSR Corporation Ltd. A Shares) P Note 22 Oct 2019 1,772,430 5,246,393 0.77 Credit Suisse Nassau (CSR Corporation Ltd. A Shares) P Note 27 Nov 2015 555,500 1,644,280 0.24 Credit Suisse Nassau (CSR Corporation Ltd. A Shares) P Note 20 Dec 2018 1,159,168 3,431,137 0.50 Credit Suisse Nassau (China Vanke Co Ltd A Shares) P Note 4 Nov 2016 3,296,700 7,717,575 1.13 Credit Suisse Nassau (Inner Mongolia Yili Industrial Group Co Ltd A Shares) P Note 22 Oct 2019 1,560,000 4,753,320 0.70 Credit Suisse Nassau (Shanghai Pharmaceuticals Holding Co Ltd A Shares) P Note 22 Oct 2019 2,852,700 10,241,193 1.50

52,630,981 7.71

Quoted Debt Securities Petro-King Oilfield Service Conv 5% 30 Mar 2018 14,000,000 1,805,916 0.26

SEMI–ANNUAL REPORT 2015 18 For the six months ended 30 June 2015 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2015

Fair % of Holdings value net assets US$

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)

Unlisted Equity Warrants BNP Paribas (China Yangtze Power Co Ltd A Shares) CWts 11 Nov 2016 2,665,894 6,331,498 0.93 CICC Financial Trading Ltd. (Macrolink Real Estate Co Ltd A Shares) Wts 5 Jun 2018 3,308,927 7,266,404 1.06 HSBC Bank Plc (China Vanke Co Ltd A Shares) CWts 11 Feb 2019 2,057,500 4,816,608 0.71 HSBC Bank Plc (Inner Mongolia Yili Industrial Group Co Ltd A Shares) CWts 25 Sep 2023 1,830,600 5,577,838 0.82 HSBC Bank Plc (Ping An Insurance Group Co. of China Ltd. A Shares) CWts 26 Nov 2024 1,235,200 16,315,757 2.39 Standard Chartered Bank (Beijing SL Pharmaceutical Co Ltd A Shares) CWts 17 Jul 2019 728,000 6,648,096 0.97

46,956,201 6.88

Total financial assets at fair value through profit or loss 670,554,318 98.26

Total investments, at cost 582,037,653

SEMI–ANNUAL REPORT 2015 19 For the six months ended 30 June 2015 19 CHINA CONVERGENCE FUND A Sub-fund of Value Partners Intelligent Funds (A Cayman Islands Unit Trust)

INVESTMENT PORTFOLIO MOVEMENTS (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2015

% of net assets 30.6.2015 31.12.2014

Listed equity securities China 15.30 27.25 Hong Kong 67.15 58.94 Singapore 0.96 1.41

83.41 87.60

Participation notes 7.71 12.07

Quoted debt securities 0.26 –

Unlisted equity securities 0.00 0.00

Unlisted equity warrants 6.88 7.88

Total investments, net 98.26 107.55

SEMI–ANNUAL REPORT 2015 20 For the six months ended 30 June 2015