Value Partners Classic Fund USD/RMB and AUD/ TM1 CAD/NZD/RMB/HKD Morningstar Rating hedged classes* As at 31-12-2015 1Q 2016 available for C unit

• Value Partners Classic Fund (the “fund”) primarily invest in stock markets of the Asia-Pacific region, with a Greater China focus. • Please pay particular attention to the risk of in China and other markets in the Asian region and in companies with medium or small capitalization. The value of the fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. • The fund may also invest in derivatives which can involve material risks, e.g. counterparty default risks, insolvency risk, and may expose the fund to significant losses. • You should not make investment decision on the basis of this document alone. Please read the explanatory memorandum for details and risk factors.

A Leader of in Asia

The concept of value investing was first outlined in Security Analysis in 1934. It is the strategy of investing in securities that are underpriced according to fundamental analysis. For over two decades, Value Partners has aimed to become the Temple of Value Investing in Asia, and gained extensive experience in identifying under-valued investment opportunities.

Dato’ Cheah Cheng Hye, Value Partners’ Chairman and Co-Chief Investment Officer, is recognized globally as one of the most iconic value investors in the industry. He was the first Asian being invited to speak at the world-renowned Graham and Dodd Breakfast Seminar organized by the Columbia Business School in New York in 2010. Most recently, Dato’ Cheah was also invited to give a speech at the 4th London Value Investor Conference in May 2015. About Graham and Dodd The renowned economist In the July/August 2015 fund manager ranking compiled by is considered the first proponent of value Citywire, a London-based prestige industry publication, Dato’ investing, which was refined later in the Cheah is ranked the first# among his peers in the Greater authoritative publication Security Analysis - co- authored with his colleague at the Columbia China equity sector in Asia. With over 22 years of experience Business School, . Since then, it has in investing in Greater China equities, he is also the most drawn a great following, including Graham’s experienced fund manager among his 44 peers. most distinguished disciple .

Why invest in Value Partners Classic Fund? 1 The flagship value investing product ■ Launched in 1993 when Value Partners was established, it is one of the longest standing Greater China equity funds ■ The fund size of this product has grown from less than US$5 million at its inception to around USD1.9 billion to date, which is one of the largest Greater China equity funds2 ■ A deep value fund investing in the stock markets of the Asia Pacific region, with a Greater China focus. Well recognized in the industry and have won many awards over the years ■ Managed by the investment team led by Co-CIOs Dato’ Cheah Cheng Hye and Mr. Louis So

2 Proven track record ■ Recorded a solid cumulative return of +2,530% (A Units)3 since the fund’s inception on 1 April 1993. For reference, Hang Seng Index recorded a return of +397% over the same period ■ Relatively low volatility and high return compared with other Greater China equity funds2 ■ Resilient performance during market volatility and strong rebound during periods of economic recovery

Annualized Annualized 1 month 1 year 3 years 5 years 10 years return4 volatility4 Value Partners Classic Fund (A Units)3 +3% -2% +24% +17% +169% +15% 22% Hang Seng Index5 -0.3% -4% +8% +14% +104% +7% 27%

* The fund may invest in financial derivative instruments (“FDI”) for hedging purposes. In adverse situations, the fund’s use of FDI may become ineffective in hedging and the fund may suffer significant losses. Each hedged share class will hedge the fund’s base currency back to its currency of denomination on a best efforts basis. However, the volatility of the hedged classes measured in the fund’s base currency may be higher than that of the equivalent class denominated in the fund’s base currency. Risks associated with FDI include counterparty risk, credit risk and liquidity risk. Such exposure may lead to a high risk of capital loss. The AUD/CAD/NZD/RMB/HKD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies. # Source: Citywire’s Fund Manager Ranking was published in July/August 2015 issue. Citywire tracks 44 Asian fund managers in the Greater China Equity sector among which 17 managers have more than 7 years’ risk-adjusted performance history. 1. © 2016 Morningstar. All Rights Reserved. Morningstar RatingTM as of 31 December 2015. 2. AUM, annualized return and annualized volatility as of 31 December 2015. Greater China equity funds refer to funds in Morningstar Greater China Equity Fund Category. 3. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees. Data as of 31 December 2015. The Fund (A Units) was launched on 1 April 1993. Calendar year return of A Units: 2011: -17%; 2012: +14%; 2013: +11%; 2014: +14%; 2015: -2%. The Fund (C Units) was launched on 15 October 2009. Calendar return of the C Units: 2011: -18%; 2012: +13%; 2013: +11%; 2014: +13%; 2015: -2%. Investors should note that figures for A Units shown above may differ from those of classes currently available for subscription (C Units), due to differences in launch date of these classes. For C Units, the since launch return is +50%. The Manager does not accept any application for A Units until further notice. New investors and existing unitholders who wish to top up may subscribe in C Units. 4. Annualized return and volatility are calculated from inception. Volatility is a measure of the theoretical risk in terms of standard deviation; in general, the lower the number, the less risky the investment, and vice versa. Value Partners Classic Fund 1Q 2016

Value Partners Classic Fund (A Units) has performed well through several market cycles6 1 April 1993 to 31 December 20153

Year of positive return (13 years of positive return since 2000)

% Emerging Pre-HK changeover Long-Term Capital Technology dot com Outbreak of SARS U.S. housing market After the global credit market and H share Management & boom and 2001 bust in the Greater peaked in 2005, and forced crisis, the boom appreciation followed Russian government China region, and repossession figures considerably fell and and by the Asian crisis defaults the following market deteriorated then the market began 3,000 the 1994 recovery in 2004 its recovery in 2009 Tequila crisis 2,400

1,800 +2,530.0%

Value Partners Classic Fund 1,200 (A Units)

600 Hang Seng Index +397.4%

0 19931994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Performance of Value Partners Classic Fund and Hang Seng Index 1 January 2001 to 31 December 20153

Post tech Post global Post SARS bubble and credit crisis 911 incident

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Value Partners +46% +21% +84% +6% +16% +42% +41% -48% +83% +20% -17% +14% +11% +14% -2% Classic Fund (A Units) Hang Seng Index5 -24% -16% +34% +13% +10% +35% +45% -47% +57% +8% -17% +28% +7% +6% -4%

3 Strong on-the-ground research ■ A team of over 60 investment professionals as one of the biggest local research teams focused on Asian and Greater China equities ■ Conduct a large number of company visits every year to identify stocks which are undervalued ■ 360° cross-checking visit with proprietary and original research ■ Strong capability to identify companies that have strong fundamentals and are under-researched

Due diligence process Over 3,500 • Quantitative research (proprietary High listed financial modeling) conviction companies • Qualitative research (on-site company value stocks visits, meeting suppliers)

4 A unique portfolio to capture market Flexible asset allocation which may include: growth potential ■ Without following any benchmark indices, the portfolio is able to allocate to non-indexed stocks purely based on Equities our original research ■ Expertise in identifying Greater China stocks with sound fundamentals yet under-researched Others ■ Dynamic allocation to equity and cash without a preset Cash (e.g. index limit futures7 etc.)

5. Index refers to Hang Seng Price Return Index up to 31 December 2004, thereafter it is the Hang Seng Total Return Index. Hang Seng Total Return Index includes dividend reinvestment whereas Hang Seng Price Return Index does not take into account reinvestment of dividends. 6. Source: Value Partners and CICC. 7. The investment manager currently intends to use index futures for hedging purposes only. Value Partners Classic Fund 1Q 2016

Investment objective and strategy Geographical exposure by listing10 The Fund aims to achieve consistent superior return and uses a bottom-up approach to invest in value stocks in the Asia Pacific region, H Shares 26% Red Chips particularly those in Greater China region, which the Manager believes 25% China A Shares are being traded at deep discounts to their intrinsic value. 15% Hong Kong 14% Without fixed geographical or sectoral weightings, the Fund can invest Taiwan 6% in securities with sound fundamentals based on our own investment Singapore 4% research, e.g. Greater China mid- and small-cap stocks. It can also United States 4% flexibly invest in different asset classes e.g. commodities, collective China B Shares 4% investment schemes, derivatives and cash to diversify portfolio risk. Others 1% Fund facts (C Units)8 Short exposure includes: Hong Kong, -1.2%. 10 11 AUD/CAD/ RMB HKD USD RMB Sector exposure Share classes NZD hedged* hedged* hedged*

15 October 17 March 28 October 30 November 1 December Consumer discretionary 15% Launch date 2009 2014 2015 2015 2015 Utilities 14% Subscription fee Up to 5% of the issue price Industrials 14% Management fee 1.25% p.a Insurance 13% Performance fee9 15% of profit (high-on-high principle) Information technology 13% Health care 10% Redemption fee Nil Real estate 8% Dealing frequency Daily dealing Other financials 5% Consumer staples 4% Senior investment staff Energy 3% Others 1% Chairman & Cheah Cheng Hye Total short exposure is -1.2%. Co-Chief Investment Officer Short exposure includes: Consumer discretionary, -1.0%; Derivatives, -0.1% and Others, -0.1%. Deputy Chairman & Louis So Co-Chief Investment Officer Deputy Chief Investment Officer Renee Hung Senior Investment Director Norman Ho, CFA Investment Directors Eric Chow; Alan Wang, CFA; Michelle Yu, CFA

Recent awards Corporate: 2015 Best of the Best Regional Awards Longevity Award – Best Asset 2015 Best of the Best Performance Awards Management House over the last 20-Year Award for Greater China13 20 Years (Co-Winner)12 Asia Asset Management Asia Asset Management The Asset Triple A, Investor and Asian Private Banker Asset Management Fund Management Awards 2015 Awards for Excellence 2014/15 Fund Management Company of the 14 14 Best Fund Provider - China Equity Year (Hong Kong) Asian Private Banker The Asset Fund of the Year Awards 2015 DHL/SCMP Hong Kong Business Outstanding Achiever - Awards 2014

15 4 1

Asia ex-Japan Equity 0 Enterprise Award Benchmark 2 DHL/SCMP Fund: Top Fund Awards 2015 (Hong Kong)16 Greater China Equity – Outstanding Best Greater China fund over Performer US$500 million17 Bloomberg Businessweek, Chinese HFM Awards 2015 edition

Fund of the Year Awards 2011 AsiaHedge Awards 2011 Outstanding Achiever - Long Term Performance Award (10 years) Greater China Equity category18 Value Partners Classic Fund19 Benchmark AsiaHedge

8. A Units and B Units are closed for subscription. New investors and existing unitholders who wish to top up may subscribe in C Units. 9. Performance fee will only be charged if the NAV at the end of the financial year exceeds the “high watermark”, which is the all-time year-end high of the fund’s NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high principle). 10. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. Data as of 31 December 2015. 11. Classification is based on Global Industry Classification Standard (GICS). 12. Based on performance and achievements as of 30 November 2015. 13. Based on performance and achievements as of 30 September 2015. 14. The awards reflect performance as at December 2014. 15. Reflecting performance as at September 2015. 16. Based on data provided by Morningstar Asia and Bloomberg Professional Services up to 30 September 2015. 17. Based on performance data over the past 12 months as of 30 April 2015, among peer funds under Best Greater China fund over US$500 million category. 18. Class A Units of the Fund selected as one of the top 100 funds based on fund size, track record, Morningstar’s Star rating and one year absolute ranking as at month end October 2011. 19. Value Partners Classic Fund is not authorized as a hedge fund by the Securities and Futures Commission (“SFC”) in Hong Kong according to the Code on Unit Trusts and Mutual Funds. SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. Investors should note investment involves risk. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the explanatory memorandum for details and risk factors in particular those associated with investment in emerging markets. Information in this report has been obtained from sources believed to be reliable but Value Partners Hong Kong Limited does not guarantee the accuracy or completeness of the information provided by third parties. This material has not been reviewed by the Securities and Futures Commission. Issuer: Value Partners Hong Kong Limited. www.valuepartners.com.hk For enquiries: (852) 2143 0688