VALUE PARTNERS CLASSIC FUND SEMI-ANNUAL 2021 REPORT For the six months ended 30 June 2021 Value Partners Limited 43rd Floor, The Center 99 Queen’s Road Central, Hong Kong Tel: (852) 2880 9263 Fax: (852) 2565 7975 Email: [email protected] Website: www.valuepartners-group.com VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) CONTENTS

Pages

General information 2-3

Manager’s report 4-11

Statement of financial position (unaudited) 12-13

Statement of comprehensive income (unaudited) 14-15

Statement of changes in net assets attributable to unitholders (unaudited) 16-17

Statement of cash flows (unaudited) 18-19

Investment portfolio (unaudited) 20-23

Investment portfolio movements (unaudited) 24

Details in respect of financial derivative instruments (unaudited) 25-29

Distribution to redeemable participating shareholders (unaudited) 30

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 1 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) GENERAL INFORMATION

Manager Legal Advisors Value Partners Hong Kong Limited Deacons 43rd Floor, The Center 5th Floor, Alexandra House 99 Queen’s Road Central 18 Chater Road, Central Hong Kong Hong Kong

Directors of the Manager Auditor Dato’ Seri Cheah Cheng Hye PricewaterhouseCoopers Mr. So Chun Ki Louis 22nd Floor, Prince’s Building Mr. Ho Man Kei, Norman 10 Chater Road, Central Hong Kong Trustee, Administrator and Custodian HSBC Institutional Trust Services (Asia) Limited Information available from: 1 Queen’s Road Central Value Partners Hong Kong Limited Hong Kong 43rd Floor, The Center 99 Queen’s Road Central Registrar Hong Kong HSBC Trustee (Cayman) Limited Investor hotline : (852) 2143 0688 Principal address: Fax : (852) 2565 7975 Strathvale House Email : [email protected] 90 North Church Street Website : www.valuepartners-group.com George Town Grand Cayman Cayman Islands

Registered address: P.O. Box 309 Ugland House George Town Grand Cayman KY1-1104 Cayman Islands

SEMI-ANNUAL REPORT 2021 2 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) GENERAL INFORMATION (Continued)

Recent awards and achievements

Fund awards

2020 • Golden Bull Overseas China Equity Fund (1 Year) 2020 Golden Bull Asset Management Summit & the 4th China Overseas Fund Golden Bull Awards Ceremony – China Securities Journal

2017 • AsiaHedge Awards 2017 Best Asia ex-Japan Fund – AsiaHedge

• HFM Asia Performance Awards 2017 Fund of the Year 2017 Best Greater China fund over US$500 million – HFM Week

Corporate awards

2018 • I&M Professional Investment Awards 2018 House Performance Awards: Offshore China Equity (10-Year) – Insight and Mandate

• Benchmark Fund of the Year Awards 2018, Hong Kong Asia ex-Japan Equity House: Best-In-Class – Benchmark

• Benchmark Fund of the Year Awards 2018, Hong Kong Greater China Equity House: Outstanding Achiever – Benchmark

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 3 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) MANAGER’S REPORT

During the second quarter, the Greater China equities market has been supported by encouraging results from the first quarter, despite dips in sentiment caused by inflation and tapering concerns towards the end of the period. For the six months ended 30 June 2021, Value Partners Classic Fund gained 9.1%, while the MSCI Golden Dragon Index advanced 6.5%1 during the same period.

Inflation dampens sentiment, but recovery to continue

The expected gradual reopening of the global economy this year has led to a swift pick up of inflation expectations at the beginning of 2021, leading to fears of monetary tightening, which may form headwinds for equity markets.

In April, the U.S. Federal Reserve maintained a dovish tone and emphasized that inflation is only transitory. However, during an FOMC meeting in June, it raised its expectations for inflation this year and expects that rate hikes could come as soon as 2023, after saying in March that it may not increase rates until 2024.

In China, several indicators have also pointed towards a more targeted policy. For example, China’s total social financing (TSF), which is an indicator of the country’s liquidity levels, dropped to RMB 1.85 trillion in April from RMB 3.3 trillion in March2. In May, this was slightly up, at RMB 1.9 trillion. China’s fixed asset investment (FAI) has also started to slow down. In May, month-on-month FAIgrowth rate was only 0.17%, which compares with the 0.93% and 0.77% growth rates in April and March, respectively3.

After the robust recovery post-pandemic, we expect economic growth in China will continue but moderate in the second half of the year.

Policies will remain accommodative

Meanwhile, China’s central bank kept its stance unchanged as maintaining economic stability continues to be a key item on its agenda. It reiterated that it will properly manage the timing, intensity and effectiveness of monetary policy to keep liquidity at a reasonable level, keep the money supply and TSF generally in line with GDP growth, and maintain a stable macro leverage ratio. We believe that these should help China’s economy to be on track with its recovery.

SEMI-ANNUAL REPORT 2021 4 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) MANAGER’S REPORT (Continued)

Portfolio strategy review

During the period, our added positions in the shipping sector since 4Q 2020 yielded positively and were the major performance contributors for the fund. Year-to-date, the robust momentum in the sector continued on the back of sustained container shortage and port traffic disruptions. As a result, freight rates continued to climb and fueled the rally of our shipping holdings as they benefit from strong operating leverage.

Another key contributor was the financials that we added during the first quarter. The undistracted structural demand for wealth management services had supported our financial holdings. We remain positive on this structural growth trend given the massive investible assets size and low penetration in China. Other key contributors came from our consumer discretionary exposures, particularly sportswear, as the participation in sports, demand for premium products and the preference for domestic brands continue to grow in the nation.

On the flipside, increased oversight by regulators continued to drag our reduced exposures in internet- related holdings.

Outlook

We view the potential earlier-than-expected tightening driven by the change in inflation expectations could pose risks on the equities markets. At the same time, growth moderation may entail a lackluster environment for equities. However, we remain cautiously optimistic on Greater China equities, favoring companies that are riding on the structural growth cycle and have visibility in earnings. We believe that it is crucial that have to be selective in our bottom-up picking approach and choose quality names that will be rewarded in the current environment.

Value Partners Hong Kong Limited 23 August 2021

1. Source: MSCI, 30 June 2021

2. Source: People’s

3. Source: National Bureau of Statistics of China, 1 July 2021

Fund performance mentioned referred to Value Partners Classic Fund “A” Unit. 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 2021. Performance data is net of all fees. All indices are for reference only.

The views expressed are the views of Value Partners Hong Kong 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 materials have been obtained from sources believed to be reliable, but their 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 2021 For the six months ended 30 June 2021 5 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) MANAGER’S REPORT (Continued)

10 largest holdings of securities as at 30 June 2021

Valuation Stock Industry (2022 Estimates) Remarks Media and Price: HK$584.0 Tencent is a leading provider of online Holdings entertainment P/E: 24.1x games, premium messaging services, (Code: 700 HK) P/B: 4.1x internet value-added services, and Yield: 0.4% advertising and e-commerce services Market cap: in China. By leveraging its large active US$721.5 billion user base, it offers good long-term monetization potential. Tencent’s largest online user platform allows it to monetize other services such as payment and performance ads, while its strength in mobile and PC gaming offers long-term growth opportunities. Taiwan Semiconductors Price: TWD595.0 Taiwan Semiconductor Manufacturing is Semiconductor and P/E: 22.1x a world-class independent semiconductor Manufacturing semiconductor P/B: 5.9x foundry. It provides integrated circuit (IC) (Code: 2330 TT) equipment Yield: 2.0% design houses with integrated services for process design, wafer manufacturing Market cap: and testing. As a global leader with US$553.5 billion more than 50% share of the outsourcing market, the company has consistently outperformed competitors in technology and profitability. We think the company is well-positioned to continue to benefit from the growing IC manufacturing outsourcing market and the rising demand for the Internet of things trend, AI chips and new application areas.

SEMI-ANNUAL REPORT 2021 6 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) MANAGER’S REPORT (Continued)

10 largest holdings of securities as at 30 June 2021 (Continued)

Valuation Stock Industry (2022 Estimates) Remarks Kweichow Food, beverage Price: CNY2,056.7 Kweichow Moutai is China’s largest Moutai and tobacco P/E: 38.9x liquor manufacturer in terms of market (Code: 600519 P/B: 10.6x value. With its premium brand positioning CH) Yield: 1.3% and effective channel management, Moutai has successfully expanded its Market cap: market share in private consumption US$400.1 billion in the past years after a considerable decline in official consumption. It has a distinguished brand among other players in China and is expected to benefit from the consumption upgrade cycle. China Merchants Banks Price: HK$66.3 Founded in 1987, Shenzhen-based Bank P/E: 10.0x is one of the (Code: 3968 HK) P/B: 1.5x largest banking groups in China. CMB Yield: 3.3% has over 70,000 employees worldwide as Market cap: of the end of 2018 and more than 1,800 US$212.3 billion branches globally. Since its inception as a commercial bank, CMB has since evolved into a comprehensive banking group, with operations in commercial banking, financial leasing, fund management, life insurance and investment banking.

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 7 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) MANAGER’S REPORT (Continued)

10 largest holdings of securities as at 30 June 2021 (Continued)

Valuation Stock Industry (2022 Estimates) Remarks Li Ning Consumer Price: HK$94.8 Li Ning is a Chinese sporting goods (Code: 2331 HK) durables and P/E: 50.5x maker and retailer, focusing on footwear, apparel P/B: 13.0x apparel, equipment, and accessories for Market cap: Yield: 0.6% professional and leisure purposes. The US$30.4 billion brand is a major beneficiary of demand recovery post-pandemic and consumer premiumization. COSCO Transportation Price: HK$15.1 COSCO Shipping is one of the world’s Shipping P/E: 5.5x largest shipping companies. It operates Holdings P/B: 1.3x 399 international and domestic routes (Code: 1919 HK) Yield: 2.3% and has around 432 vessels. We are positive that the company will benefit from Market cap: strong China exports and global economic US$52.5 billion recovery post-pandemic. The company is well-positioned to take advantage of its strong operating leverage while enjoying the increase of freight rates. We are also overweight the company because of its attractive valuations.

SEMI-ANNUAL REPORT 2021 8 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) MANAGER’S REPORT (Continued)

10 largest holdings of securities as at 30 June 2021 (Continued)

Valuation Stock Industry (2022 Estimates) Remarks Meituan Retailing Price: HK$320.4 Meituan is China’s group buying website (Code: 3690 HK) P/E: N/A offering food delivery and hotel booking P/B: 13.2x services at the same time. Established in Market cap: Yield: 0.0% Beijing and listed in Hong Kong, Meituan US$252.1 billion has grown as one of China’s biggest e-commerce platforms. China’s addressable consumer services market offers one of the most visible growth prospects within the Internet sector. Meituan’s leading position in multiple high-frequency categories and a large user base of over 510 million provide good cross-selling opportunities. Overseas Orient Transportation Price: HK$168.2 Orient Overseas’ principal business International Ltd P/E: 4.4x activities are in the container transport (Code: 316 HK) P/B: 1.3x and logistics services, with around 420 Yield: 8.6% offices in 90 countries/regions. It is the Market cap: parent company of Orient Overseas US$13.8 billion Container Line (OOCL), which is one of the largest container shipping companies globally. The company is a beneficiary from continued global demand as well as enjoying the increase of freight rates.

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 9 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) MANAGER’S REPORT (Continued)

10 largest holdings of securities as at 30 June 2021 (Continued)

Valuation Stock Industry (2021 Estimates) Remarks Techtronic Capital goods Price: HK$135.6 Techtronic Industries (“TTI”) is a global Industries P/E: 26.8x leader in designing, manufacturing, and (Code: 669 HK) P/B: 5.9x selling home-improvement products, Yield: 1.5% including power tools, outdoor power Market cap: equipment and floor-care appliances. US$32.0 billion A wide range of high-output industrial tools is also among the Company’s product fleet, which has helped underpin constant market share gain and margin improvement, as well as sustain long-term revenue and earnings growth. TTI benefits from a strong U.S. housing market and Home Depot sales, with its innovative cordless and smart power tool products helping the company gain market share as well as expand margins. Floor-care business turning around shall continuously support the earnings growth sustainability. Pinduoduo Retailing Price: US$127.0 Pinduoduo operates an e-commerce (Code: PDD US) P/E: N/A platform, which offers value-for-money P/B: 19.1x merchandise and interactive shopping Market cap: Yield: 0.0% options. Resembling a virtual bazaar, the US$159.2 billion platform sells a suite of product categories from apparel and shoes to fresh produce and electronic appliances.

Note: The above investments made up 51.34% of Value Partners Classic Fund as at 30 June 2021. The stock prices are based on the closing of 30 June 2021.

SEMI-ANNUAL REPORT 2021 10 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) MANAGER’S REPORT (Continued) Value Partners Classic Fund – NAV as at 30 June 2021 Classes NAV per unit A Units USD563.41 B Units USD248.59 C Units USD USD31.13 C Units HKDß HKD241.73 C Units RMB RMB20.84 C Units AUD Hedged AUD24.12 C Units CAD Hedged CAD24.08 C Units HKD Hedged HKD20.67 C Units NZD Hedged NZD24.96 C Units RMB Hedged RMB21.74 C Units MDis USD USD13.52 C Units MDis HKD HKD13.41 C Units MDis RMB RMB12.71 C Units MDis RMB Hedged RMB13.27 P Units classes RMB Hedged RMB16.1170 P Units classes RMB Unhedged RMB15.2378 X Units USD18.16 Z Units USD16.79 Performance since launch From 1 April 1993 to 30 June 2021

β Investors should note that the base currency of “C” Units is in USD. The HKD is for reference only and should not be used for subscription or redemption purpose. Conversion to the base currency of “C” Units will normally take place at the prevailing rate (as determined by the Fund’s Trustee or Custodian) on the corresponding fund dealing day. Investor should be aware of possible risks resulting from fluctuations of exchange rates against USD. # Index refers to Hang Seng Index (Price Return) since fund inception till 31 Dec 2004, thereafter it is the Hang Seng Index (Total Return) up to 30 Sep 2017. Hang Seng Index (Total Return) includes dividend reinvestment whereas Hang Seng Index (Price Return) does not take into account reinvestment of dividends. With effect from 1 Oct 2017, it is the MSCI Golden Dragon Index (Total Net Return), which takes into account of dividend reinvestment after deduction of withholding tax. * Hang Seng Price Return Index was used till 31 Dec 2004, thereafter it is the Hang Seng Total Return Index. Hang Seng Total Return Index takes into account of dividend reinvestment whereas Hang Seng Price Return Index does not. SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 11 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS AT 30 JUNE 2021

30.06.2021 31.12.2020 US$ US$

Assets Financial assets at fair value through profit or loss 1,791,948,802 1,569,211,119 Amounts receivable on sales of investments 3,364,129 706,040 Amounts receivable on issue of units 2,631,243 4,938,527 Dividends, interest receivables and other receivables 964,599 2,226,995 Margin deposit 28 28 Bank balances 43,600,333 8,316,186

1,842,509,134 1,585,398,895 Total assets

Liabilities Financial liabilities at fair value through profit or loss 674,904 50,795 Amounts payable on purchase of investments 7,736,824 32,518,956 Amounts payable on redemption of units 5,430,993 7,222,299 Management fees payable 1,670,846 1,349,786 Performance fees payable 24,567,962 75,496,740 Distributions payable to unitholders 203,619 97,105 Bank overdrafts 21,093,490 42,070,080 Accruals and other payables 336,451 337,822

Liabilities (excluding net assets 61,715,089 159,143,583 attributable to unitholders)

1,780,794,045 1,426,255,312 Net assets attributable to unitholders

SEMI-ANNUAL REPORT 2021 12 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) STATEMENT OF FINANCIAL POSITION (UNAUDITED) (Continued) AS AT 30 JUNE 2021

30.06.2021 31.12.2020 Net asset value per unit – A Units with 645,275 (31.12.2020: 645,325) units outstanding USD563.41 USD516.47 – B Units with 1,215,162 (31.12.2020: 1,261,612) units outstanding USD248.59 USD228.34 – C Units USD with 23,413,127 (31.12.2020: 21,785,993) units outstanding USD31.13 USD28.61 – C Units RMB with 479,875 (31.12.2020: 289,318) units outstanding RMB20.84 RMB19.31 – C Units AUD Hedged with 2,892,034 (31.12.2020: 1,523,900) units outstanding AUD24.12 AUD22.35 – C Units CAD Hedged with 1,047,807 (31.12.2020: 594,543) units outstanding CAD24.08 CAD22.25 – C Units HKD Hedged with 3,951,995 (31.12.2020: 2,211,308) units outstanding HKD20.67 HKD19.00 – C Units NZD Hedged with 810,042 (31.12.2020: 290,577) units outstanding NZD24.96 NZD23.15 – C Units RMB Hedged with 4,947,758 (31.12.2020: 2,273,180) units outstanding RMB21.74 RMB19.94 – C Units MDis USD with 3,861,542 (31.12.2020: 1,922,714) units outstanding USD13.52 USD12.58 – C Units MDis HKD with 27,962,923 (31.12.2020: 14,637,452) units outstanding HKD13.41 HKD12.44 – C Units MDis RMB with 335,784 (31.12.2020: 197,128) units outstanding RMB12.71 RMB11.93 – C Units MDis RMB Hedged with 13,438,728 (31.12.2020: 5,613,442) units outstanding RMB13.27 RMB12.31 – P Units classes RMB Hedged with 48,546,079 (31.12.2020: 20,030,573) units outstanding RMB16.1170 RMB14.7665 – P Units classes RMB Unhedged with 2,408,509 (31.12.2020: 3,048,944) units outstanding RMB15.2378 RMB14.0769 – X Units with 61,116 (31.12.2020: 76,407) units outstanding USD18.16 USD16.34 – Z Units with 836,734 (31.12.2020: 967,348) units outstanding USD16.79 USD15.40

Note: Semi-annual reports have applied the same accounting policies and methods of computation as are applied in the annual reports of the Fund.

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 13 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2021

30.06.2021 30.06.2020 US$ US$

Income Dividends 13,817,280 6,269,619 Interest on bank deposits 4,070 28,616 Net realised gains on investments 180,091,739 11,714,562 Change in unrealised gains/losses on investments (22,227,450) (13,060,627) Net foreign exchange losses (1,191,420) (796,889) Other income 10,269 346,226

170,504,488 4,501,507

Expenses Management fees Note 2 (9,678,660) (6,237,673) Performance fees Note 2 (24,597,508) – Trustee and fund administration fees Note 1 (979,797) (651,676) Transaction costs Note 1 (4,364,782) (4,134,926) Interest expense Note 1 (1,092,240) (1,098,109) Stock borrowing fee Note 1 – (38,755) Safe custody and bank charges Note 1 (224,909) (134,521) Legal and professional fees (19,068) (117,335) Auditor’s remuneration (19,206) (21,103) Other operating expenses Note 1 (717,423) (445,091)

(41,693,593) (12,879,189)

Profit/(loss) before tax 128,810,895 (8,377,682)

Withholding tax on dividends and other investment income (437,731) (474,998)

Profit/(loss) after tax and before distributions 128,373,164 (8,852,680)

Distributions to Unitholders (1,092,789) (963,356)

Increase/(decrease) in net assets attributable 127,280,375 (9,816,036) to unitholders from operations

SEMI-ANNUAL REPORT 2021 14 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2021

Note 1 During the period ended 30 June 2021 and 2020, other than trustee and fund administration fees, interest expense, stock borrowing fee, safe custody and bank charges that paid to the Trustee or its connected persons, other respective amounts paid to the Trustee or its connected persons were as follows:

30.06.2021 30.06.2020 US$ US$

Transaction costs (175,445) (142,554) Other operating expenses (214,807) (168,287)

Note 2 During the period ended 30 June 2021 and 2020, other than management fees and performance fees that paid to Manager, no other amounts paid to the Manager or its connected persons.

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 15 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2021

30.06.2021 30.06.2020 US$ US$

Net assets attributable to unitholders as at 1,426,255,312 1,192,133,426 1 January

Issue of units 499,196,220 189,627,366 Redemption of units (271,937,862) (218,885,616)

227,258,358 (29,258,250) Net increase/(decrease) from unit transactions

Profit/(loss) after tax and before distributions 128,373,164 (8,852,680) Distributions to unitholders (1,092,789) (963,356)

Increase/(decrease) in net assets attributable to 127,280,375 (9,816,036) unitholders from operations

1,780,794,045 1,153,059,140 Net assets attributable to unitholders as at 30 June

SEMI-ANNUAL REPORT 2021 16 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS (UNAUDITED) (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2021

The movement of number of units in issue during the period was as follows:

As at As at 1 January Issue Redemption 30 June Number of units 2021 of units of units 2021

A Units 645,325 – (50) 645,275 B Units 1,261,612 5,593 (52,043) 1,215,162 C Units USD 21,785,993 5,187,591 (3,560,457) 23,413,127 C Units RMB 289,318 267,170 (76,613) 479,875 C Units AUD Hedged 1,523,900 2,559,760 (1,191,626) 2,892,034 C Units CAD Hedged 594,543 845,769 (392,505) 1,047,807 C Units HKD Hedged 2,211,308 5,856,389 (4,115,702) 3,951,995 C Units NZD Hedged 290,577 796,278 (276,813) 810,042 C Units RMB Hedged 2,273,180 5,252,332 (2,577,754) 4,947,758 C Units MDis USD 1,922,714 2,927,675 (988,847) 3,861,542 C Units MDis HKD 14,637,452 26,724,681 (13,399,210) 27,962,923 C Units MDis RMB 197,128 201,645 (62,989) 335,784 C Units MDis RMB Hedged 5,613,442 9,584,952 (1,759,666) 13,438,728 P Units classes RMB Hedged 20,030,573 46,760,330 (18,244,824) 48,546,079 P Units classes RMB Unhedged 3,048,944 1,379,639 (2,020,074) 2,408,509 X Units 76,407 47,203 (62,494) 61,116 Z Units 967,348 50,000 (180,614) 836,734

As at As at 1 January Issue Redemption 30 June Number of units 2020 of units of units 2020

A Units 657,579 – (4,000) 653,579 B Units 1,447,517 9,956 (79,669) 1,377,804 C Units USD 26,583,521 2,417,716 (4,991,338) 24,009,899 C Units RMB 314,012 192,112 (86,279) 419,845 C Units AUD Hedged 1,870,106 1,598,978 (1,020,913) 2,448,171 C Units CAD Hedged 744,222 269,760 (279,140) 734,842 C Units HKD Hedged 3,684,121 2,421,320 (2,843,911) 3,261,530 C Units NZD Hedged 582,648 251,656 (303,002) 531,302 C Units RMB Hedged 2,767,743 1,450,038 (1,892,749) 2,325,032 C Units MDis USD 1,839,256 2,116,520 (1,787,640) 2,168,136 C Units MDis HKD 18,423,512 12,133,906 (10,249,307) 20,308,111 C Units MDis RMB 261,939 404,850 (106,811) 559,978 C Units MDis RMB Hedged 6,623,642 2,041,746 (2,847,171) 5,818,217 P Units classes RMB Hedged 11,559,797 27,685,464 (13,428,210) 25,817,051 P Units classes RMB Unhedged 4,724,003 8,284,815 (5,877,665) 7,131,153 X Units 24,655 1,641,919 (1,590,167) 76,407 Z Units 1,958,057 97,000 (523,940) 1,531,117 SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 17 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) STATEMENT OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2021

30.06.2021 30.06.2020 US$ US$

Cash flows from operating activities Increase/(decrease) in net assets attributable to unitholders from operations 127,280,375 (9,816,036) Adjustments for: Dividends and interest on bank deposits (13,821,350) (6,298,235) Interest expense 1,092,240 1,098,109 Stock borrowing fee and dividends on securities borrowed – 38,755 Withholding tax on dividends and other investment income 437,731 474,998 Distribution to unitholders 1,092,789 963,356

116,081,785 (13,539,053)

Decrease in deposits with brokers – 13,290,287 (Increase)/decrease in financial assets at fair value through profit or loss (222,737,683) 93,198,811 Increase/(decrease) in financial liabilities at fair value through profit or loss 624,109 (6,581,065) Increase in margin deposit – (1,479,148) Increase in amounts receivable on sales of investments (2,658,089) (6,039,964) Decrease in amounts payable on purchase of investments (24,782,132) (11,331,051) Decrease in other receivables 1,167,654 1,515 Decrease in bank overdrafts (20,976,590) (44,033,623) Increase/(decrease) in management fees payable 321,060 (28,912) Decrease in performance fees payable (50,928,778) (2,557,747) Increase/(decrease) in accruals and other payables 467 (164,132)

Cash (used in)/generated from operations (203,888,197) 20,735,918 Dividends and interest on bank deposits received 13,916,092 5,997,505 Interest expense paid (1,094,078) (1,103,453) Stock borrowing fee and dividends on securities borrowed paid – (38,755) Withholding tax on dividends and other investment income paid (437,731) (474,998)

(191,503,914) 25,116,217 Net cash (outflow)/inflow from operating activities

SEMI-ANNUAL REPORT 2021 18 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) STATEMENT OF CASH FLOWS (UNAUDITED) (Continued) FOR THE SIX MONTHS ENDED 30 JUNE 2021

30.06.2021 30.06.2020 US$ US$

Cash flows from financing activities Distributions paid to unitholders (986,275) (986,223) Proceeds from issue of units 501,503,504 194,877,420 Payments on redemption of units (273,729,168) (215,290,233)

226,788,061 (21,399,036) Net cash inflow/(outflow) from financing activities

Net increase in cash and cash equivalents 35,284,147 3,717,181

Cash and cash equivalents as at 1 January 8,316,186 13,996,355

Cash and cash equivalents as at 30 June, 43,600,333 17,713,536 representing bank balances

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 19 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) INVESTMENT PORTFOLIO (UNAUDITED) AS AT 30 JUNE 2021

% of net Holdings Fair value assets US$

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Listed equity securities

China Centre Testing International Group Co Ltd A Shares (SZHK) 709,672 3,499,485 0.20 China Tourism Group Duty Free Corp Ltd A Shares (SHHK) 741,983 34,441,976 1.93 Co Ltd A Shares (SZHK) 6,920,046 35,097,688 1.97 Guangdong Haid Group Co Ltd A Shares (SZHK) 1,985,835 25,064,638 1.41 Hefei Meiya Optoelectronic Technology Inc A Shares (SZHK) 2,140,307 18,459,798 1.04 Kweichow Moutai Co Ltd A Shares (SHHK) 259,659 82,604,259 4.64 Co Ltd A Shares (SZHK) 10,920,492 38,208,758 2.14

237,376,602 13.33

Hong Kong - H Shares China Merchants Bank Co Ltd H Shares 10,249,500 87,446,314 4.91 COSCO SHIPPING Holdings Co Ltd H Shares 31,274,000 78,778,051 4.43 (Group) Co of China Ltd H Shares 3,151,000 30,860,330 1.73

197,084,695 11.07

Hong Kong - Red Chips BOC Hong Kong Holdings Ltd 7,996,500 27,135,230 1.52 China Mengniu Dairy Co Ltd 2,940,000 17,776,075 1.00 China Overseas Property Holdings Ltd 735,000 785,631 0.05 China Resources Beer (Holdings) Co Ltd 3,788,000 34,025,705 1.91 Lenovo Group Ltd 18,020,000 20,723,313 1.16 Semiconductor Manufacturing International Corp 12,126,500 37,323,840 2.10

137,769,794 7.74

SEMI-ANNUAL REPORT 2021 20 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2021

% of net Holdings Fair value assets US$

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

Listed equity securities (Continued)

Hong Kong - Others AIA Group Ltd 4,854,200 60,325,083 3.39 ANTA Sports Products Ltd 887,000 20,881,070 1.17 Beijing Tong Ren Tang Chinese Medicine Co Ltd 15,615,000 25,780,003 1.45 Cathay Media and Education Group Inc 10,436,000 7,257,395 0.41 China Education Group Holdings Ltd 13,076,000 29,165,925 1.64 Galaxy Entertainment Group Ltd 5,344,000 42,772,096 2.40 Hope Education Group Co Ltd 63,642,000 15,326,337 0.86 Innovent Biologics Inc 4,031,000 47,006,098 2.64 Kingboard Laminates Holdings Ltd 7,890,000 17,700,197 0.99 Li Ning Co Ltd 6,821,500 83,280,087 4.68 Luk Fook Holdings (International) Ltd 9,426,000 32,532,331 1.83 Meituan 1,672,400 69,005,803 3.87 Minsheng Education Group Co Ltd 134,180,000 23,327,839 1.31 Nine Dragons Paper (Holdings) Ltd 19,356,000 24,827,209 1.39 Orient Overseas International Ltd 3,214,500 69,629,354 3.91 SIIC Environment Holdings Ltd 224,154,980 35,795,054 2.01 Techtronic Industries Co Ltd 3,752,500 65,528,969 3.68 Tencent Holdings Ltd 2,257,800 169,805,308 9.54 Weimob Inc 2,940,000 6,481,926 0.36 Xiaomi Corp 6,670,200 23,192,927 1.30

869,621,011 48.83

Taiwan Elan Microelectronics Corp 1,293,000 9,021,847 0.51 Makalot Industrial Co Ltd 1,372,000 13,485,964 0.76 MediaTek Inc 992,000 34,234,507 1.92 Taiwan Semiconductor Manufacturing Co Ltd 6,849,000 146,191,279 8.21

202,933,597 11.40

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 21 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2021

% of net Holdings Fair value assets US$

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

Listed equity securities (Continued)

The United States of America Pinduoduo Inc ADR 486,924 61,849,086 3.47 TAL Education Group ADR 1,277,972 32,243,234 1.81

94,092,320 5.28

Participation notes CICC Financial Trading Ltd (Kweichow Moutai Co Ltd A Shares) P-Note 1/4/2024 63,472 20,211,960 1.13

Unlisted equity securities EganaGoldpfeil Holdings Ltd 6,885,464 – – Real Gold Mining Ltd 14,179,500 – –

– –

Unlisted investment funds Value Partners Ireland Fund ICAV – Value Partners All China Equity Fund Class X USD Unhedged Acc* 2,086,607 30,944,383 1.74 Value Partners Ireland Fund ICAV – Value Partners China A Shares Consumption Fund Class X USD Unhedged Acc* 50,000 520,500 0.03 Value Partners Ireland Fund ICAV – Value Partners China A Shares Equity Fund Class X USD Unhedged Acc* 50,000 597,000 0.03 Value Partners Ireland Fund ICAV – Value Partners China A Shares High Dividend Fund Class X USD Unhedged Acc* 50,000 526,000 0.03

32,587,883 1.83

SEMI-ANNUAL REPORT 2021 22 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) INVESTMENT PORTFOLIO (UNAUDITED) (Continued) AS AT 30 JUNE 2021

% of net Holdings Fair value assets US$

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

270,940 0.02 Forward exchange contracts

Total financial assets at fair value 1,791,948,802 100.63 through profit or loss

FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

(674,904) (0.04) Forward exchange contracts

Total financial liabilities at fair value (674,904) (0.04) through profit or loss

1,791,273,898 100.59 Total investments, net

Total investments, at cost 1,502,626,997 (inclusive of transaction cost)

* The investment funds are not authorized in Hong Kong and not available to the public in Hong Kong.

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 23 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) INVESTMENT PORTFOLIO MOVEMENTS (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2021

% of net assets 30.06.2021 31.12.2020

Listed equity securities China 13.33 15.20 Hong Kong – H shares 11.07 10.85 – Red chips 7.74 2.71 – Others 48.83 41.82 Taiwan 11.40 17.04 The United States of America 5.28 18.13

97.65 105.75

Participation notes 1.13 1.92 Unlisted equity securities – – Unlisted investment funds 1.83 2.30 (0.02) 0.05 Forward exchange contracts

100.59 110.02 Total investments, net

SEMI-ANNUAL REPORT 2021 24 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) DETAILS IN RESPECT OF FINANCIAL DERIVATIVE INSTRUMENTS (UNAUDITED) AS AT 30 JUNE 2021

The Fund’s financial derivative instruments at the reporting date are detailed below:

Financial assets:

Participation notes

Underlying assets Issuer Fair value US$

CICC Financial Trading Ltd (Kweichow Moutai Co Ltd Kweichow Moutai Co CICC Financial A Shares) P-Note 1/4/2024 Ltd A Shares Trading 20,211,960

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 25 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) DETAILS IN RESPECT OF FINANCIAL DERIVATIVE INSTRUMENTS (UNAUDITED) (Continued) AS AT 30 JUNE 2021

Financial assets (Continued):

Forward exchange contracts

Currency Amount Currency Amount sold sold bought bought Settlement date Counter party Fair value US$

The Hongkong and Shanghai Banking AUD 73,779 USD 55,872 30 July 2021 Corporation Limited 404 The Hongkong and Shanghai Banking AUD 249,780 USD 189,154 30 July 2021 Corporation Limited 1,368 The Hongkong and Shanghai Banking CAD 77,594 USD 63,115 30 July 2021 Corporation Limited 527 The Hongkong and Shanghai Banking CNH 25,586 USD 3,952 30 July 2021 Corporation Limited 3 The Hongkong and Shanghai Banking CNH 926,621 USD 143,183 30 July 2021 Corporation Limited 169 The Hongkong and Shanghai Banking CNH 2,336,164 USD 361,152 30 July 2021 Corporation Limited 591 The Hongkong and Shanghai Banking HKD 1,003,960 USD 129,328 30 July 2021 Corporation Limited 28 The Hongkong and Shanghai Banking HKD 2,011,466 USD 259,135 30 July 2021 Corporation Limited 78 The Hongkong and Shanghai Banking USD 1,523 CNH 9,900 30 July 2021 Corporation Limited 5 The Hongkong and Shanghai Banking USD 35,485 CNH 230,328 30 July 2021 Corporation Limited 63 The Hongkong and Shanghai Banking USD 204,982 CNH 1,332,739 30 July 2021 Corporation Limited 712 The Hongkong and Shanghai Banking USD 16,057,652 CNH 104,212,360 30 July 2021 Corporation Limited 26,364 SEMI-ANNUAL REPORT 2021 26 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) DETAILS IN RESPECT OF FINANCIAL DERIVATIVE INSTRUMENTS (UNAUDITED) (Continued) AS AT 30 JUNE 2021

Financial assets (Continued):

Forward exchange contracts (Continued)

Currency Amount Currency Amount sold sold bought bought Settlement date Counter party Fair value US$

The Hongkong and Shanghai Banking USD 26,984,704 CNH 175,127,707 30 July 2021 Corporation Limited 44,305 The Hongkong and Shanghai Banking USD 119,574,099 CNH 776,022,511 30 July 2021 Corporation Limited 196,323 The Hongkong and Shanghai Banking USD 26 HKD 200 30 July 2021 Corporation Limited –

270,940

Financial liabilities:

Forward exchange contracts

Currency Amount Currency Amount sold sold bought bought Settlement date Counter party Fair value US$

The Hongkong and Shanghai Banking CNH 799,094 USD 123,089 30 July 2021 Corporation Limited (242) The Hongkong and Shanghai Banking CNH 520,637 USD 80,061 30 July 2021 Corporation Limited (294) The Hongkong and Shanghai Banking USD 159,263 AUD 209,468 30 July 2021 Corporation Limited (1,784) The Hongkong and Shanghai Banking USD 200,613 AUD 264,242 30 July 2021 Corporation Limited (1,954) The Hongkong and Shanghai Banking USD 51,776,417 AUD 68,368,945 30 July 2021 Corporation Limited (376,166)

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 27 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) DETAILS IN RESPECT OF FINANCIAL DERIVATIVE INSTRUMENTS (UNAUDITED) (Continued) AS AT 30 JUNE 2021

Financial liabilities (Continued):

Forward exchange contracts (Continued)

Currency Amount Currency Amount sold sold bought bought Settlement date Counter party Fair value US$

The Hongkong and Shanghai Banking USD 29,128 AUD 38,585 30 July 2021 Corporation Limited (120) The Hongkong and Shanghai Banking USD 511 CAD 628 30 July 2021 Corporation Limited (4) The Hongkong and Shanghai Banking USD 13,324 CAD 16,377 30 July 2021 Corporation Limited (114) The Hongkong and Shanghai Banking USD 20,090,066 CAD 24,700,133 30 July 2021 Corporation Limited (166,836) The Hongkong and Shanghai Banking USD 143,506 CAD 176,449 30 July 2021 Corporation Limited (1,182) The Hongkong and Shanghai Banking USD 22,976 CNH 148,575 30 July 2021 Corporation Limited (45) The Hongkong and Shanghai Banking USD 76,511 CNH 495,000 30 July 2021 Corporation Limited (114) The Hongkong and Shanghai Banking USD 873 CNH 5,646 30 July 2021 Corporation Limited (1) The Hongkong and Shanghai Banking USD 250,185 CNH 1,618,949 30 July 2021 Corporation Limited (318) The Hongkong and Shanghai Banking USD 46,444 CNH 300,416 30 July 2021 Corporation Limited (78) The Hongkong and Shanghai Banking USD 98,917 CNH 640,302 30 July 2021 Corporation Limited (94)

SEMI-ANNUAL REPORT 2021 28 For the six months ended 30 June 2021 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) DETAILS IN RESPECT OF FINANCIAL DERIVATIVE INSTRUMENTS (UNAUDITED) (Continued) AS AT 30 JUNE 2021

Financial liabilities (Continued):

Forward exchange contracts (Continued)

Currency Amount Currency Amount sold sold bought bought Settlement date Counter party Fair value US$

The Hongkong and Shanghai Banking USD 6,314 HKD 49,000 30 July 2021 Corporation Limited (3) The Hongkong and Shanghai Banking USD 10,725,204 HKD 83,265,529 30 July 2021 Corporation Limited (1,442) The Hongkong and Shanghai Banking USD 13,965,490 NZD 19,791,631 30 July 2021 Corporation Limited (124,113)

(674,904)

SEMI-ANNUAL REPORT 2021 For the six months ended 30 June 2021 29 VALUE PARTNERS CLASSIC FUND (A Hong Kong Unit Trust) DISTRIBUTION TO REDEEMABLE PARTICIPATING SHAREHOLDERS (UNAUDITED)

In accordance with the Explanatory Memorandum of the Fund, the Manager may determine to make a distribution out of the income and/or capital. During the period ended 30 June 2021, the Fund declared total distributions to redeemable participating shareholders of US$1,092,789 (period ended 30 June 2020: US$963,356).

The table below summarises the dividend distribution made during the reporting period.

01.01.2021 01.01.2020 Classes to 30.06.2021 to 30.06.2020 Frequency Ex-dividend dates*

C Units MDis USD USD0.0196 USD0.0286 Monthly Last business day of January to April C Units MDis USD USD0.0196 USD0.0210 Monthly Last business day of May to June C Units MDis HKD HKD0.0194 HKD0.0286 Monthly Last business day of January to April C Units MDis HKD HKD0.0194 HKD0.0208 Monthly Last business day of May to June C Units MDis RMB RMB0.0197 RMB0.0299 Monthly Last business day of January to April C Units MDis RMB RMB0.0197 RMB0.0222 Monthly Last business day of May to June C Units MDis RMB Hedged RMB0.0275 RMB0.0324 Monthly Last business day of January to April C Units MDis RMB Hedged RMB0.0275 RMB0.0274 Monthly Last business day of May to June

* Last business day of each month in 2021 are 29 January 2021, 26 February 2021, 31 March 2021, 30 April 2021, 31 May 2021 and 30 June 2021.

Last business day of each month in 2020 are 31 January 2020, 28 February 2020, 31 March 2020, 29 April 2020, 29 May 2020 and 30 June 2020.

SEMI-ANNUAL REPORT 2021 30 For the six months ended 30 June 2021