FM First China Fund, LLC JANUARY 2020 INVESTMENT OBJECTIVE FM First China Fund, LLC (the "Fund") invests in publicly-traded companies that either derive a majority of their revenues from, or maintain a majority of their assets in, mainland China. The investment objective of the Fund is to achieve long-term capital appreciation using a value-oriented approach modeled after the investment style of New York-based First Manhattan Co. The local team, with a deep network in China, seeks to apply a time-tested Western value approach to investing in what they view as an inefficient Eastern market. We manage a relatively concentrated portfolio where, based on the average of quarter end holdings since inception, the Fund’s top ten holdings have represented more than 60% of its assets under management. PERFORMANCE & FUND STATISTICS The tables below set forth performance and other information for the Fund (after fees and expenses) as of 12/31/2019.1,2,3 FM First MSCI China Hang Seng Fund vs. MSCI Period-End AUM Year China Fund Index Index China Index ($ million)4 2019 4 1 . 7 % 23.5% 13.0% +18.2 317 2018 ( 1 2 . 2 % ) (18.9%) (10.5%) +6.7 230 2017 4 7 . 8 % 54.1% 41.3% (6.3) 248 2016 ( 1 3 . 4 % ) 0.9% 4.3% (14.3) 173 2015 9 . 6 % (7.8%) (3.9%) +17.4 211 2014 2 . 5 % 8.0% 5.5% (5.5) 191 2013 2 1 . 3 % 3.6% 6.6% +17.7 146 2012 3 4 . 8 % 22.7% 27.5% +12.1 44 2011 ( 1 1 . 1 % ) (18.4%) (17.4%) +7.3 32 2010 1 6 . 4 % 4.6% 8.6% +11.8 28 2009 (since Dec.3) 0 . 1 % (3.2%) (3.0%) +3.3 10 Cumulative Gain 2 0 3 . 0 % 62.9% 78.4% +140.1 (12/3/09 to 12/31/19) Annualized Gain 1 1 . 6 % 5.0% 5.9% +6.6 (12/3/09 to 12/31/19) Holdings by Market Cap5 Portfolio Concentration5 Up/Down Capture (vs. MSCI China Index) as of 12/31/19 73% 43% 52% 107.2% 28% 9% 21% Down Capture < $1B $1B - $5B $5B - $10B > $10B Top 5 Top 10 Up Holdings Holdings Capture 74.1% 1Performance figures for the Hang Seng Total Return Index, the MSCI China Index, and the FM First China Fund, LLC (the “Fund”) begin from December 3, 2009, the date on which the Fund commenced. The table above sets forth pro forma performance information for the Fund on an annual basis from December 3, 2009 (commencement of operations) through April 30, 2013, after giving effect to the Base Fee and Incentive Allocation described in the Fund’s Confidential Private Placement Memorandum under “Management—Fees and Expenses,” because prior to May 1, 2013, the Fund had a different fee structure. Beginning May 1, 2013, the present fee structure has remained in effect. The performance figures for the Fund set forth above for December 3, 2009 to April 30, 2013 have been restated effective October 2019 to reflect the recalculation of such figures for minor discrepancies recently identified in a review of the original pro forma calculations. The restatement slightly reduced the pro forma returns for the periods prior to May 1, 2013 but had no impact on the actual performance returns for investors in the Fund. Performance figures also reflect the returns to a non-restricted investor in the Fund who has been eligible to participate in “new issues” purchased by the Fund. The Fund did not purchase any “new issues” prior to March 2018. The performance returns for periods since March 2018 for a restricted investor who was not eligible to participate in “new issues” would not necessarily be the same as the performancefiguresreflected above.For additional informationregarding theFund’s performance,please see the Fund’s Confidential PrivatePlacement Memorandum. 2From time to time, the FM First China Fund, LLC (the “Fund”) may purchase shares in an equity initial public offering. Pursuant to FINRA Rule 5130, certain investors in the Fund are not permitted to share in the Fund’s pro-rata share of an equity initial public offering in which the Fund invests if one or more FINRA members participate in the offering. Generally, FINRA Rule 5130 prohibits an investor (directly or indirectly through his or her investment in a private investment fund) from investing in shares of an equity initial public offering if he or she is employed by or has certain affiliations with or beneficial interests in a broker-dealer firm. The performance of an investment in the Fund may be affected based on whether the investor is permitted to participate, pursuant to FINRA Rule 5130, in his, her or its pro rata share of an equity initial public offering in which the Fund participates. The performance results shown above reflect the performance of an investor who is permitted to participate in such an offering; theperformanceof aninvestorrestrictedfromparticipatingin such anofferingmay differfromthe performance shown. 3Prior to October 1, 2018, the Hang Seng Small Cap Index was also included as a comparative index, but in light of the fact that the Fund’s portfolio does not currently reflect a small cap portfolio, that index is no longer being utilized for comparative purposes. The MSCI International China Index was also included for comparative purposes prior to October 1, 2018, but has been replaced with the MSCI China Index as this latter index is more similar in exposure to the Fund’s current portfolio and is more widelyused and recognizedby investors. 4 Combinedoffshoreand onshorefunds.FirstManhattanCo. offersinterestsin both a U.S.-domiciledfund(FM FirstChina Fund, LLC) anda non-U.S.-domiciledfund(FM FirstChinaFund Limited)with substantiallythesamefeestructures andterms.. 5 The holdingpercentagesshown representonly long positions. FM First China Fund, LLC | JANUARY 2020 | 2 TOP 5 HOLDINGS Market Dividend Company Sector P/E P/B ROE Cap ($B) Yield Bilibili TMT 6.1 n/a 5.6 -17.4 0.0 Anhui Gujing Distillery Consumer 8.6 14.6 3.7 27.7 2.4 Central China Real Estate Real Estate 1.6 8.8 1.2 14.0 6.4 Chongqing Rural Commercial Bank Financials 9.8 3.5 0.5 13.0 5.9 Concord New Energy Utilities 0.4 4.6 0.5 11.2 5.9 INVESTMENT PROCESS The First Beijing investment team provides the Fund with dedicated research efforts throughout mainland China in Shenzhen, Beijing, and Shanghai. The team employs a bottom-up, research-intensive investment process that requires independent verification of key financial data. The investment process is grounded in the principles of value investing adapted to local markets and incorporates the deep network and local connections of the First Beijing team. Extensive background checks of management, as well as channel checks of suppliers and competitors, are key elements of a comprehensive vetting of any potential investment for the Fund. FUND STRUCTURE AND ORGANIZATION Headquartered in Shenzhen, First Beijing is responsible for all of the Fund’s portfolio management recommendations, including the sourcing, vetting and sizing of all investments in the Fund. First Beijing is also responsible for hiring and retaining investment talent and has managed the Fund’s portfolio since its launch in December 2009. New York-based First Manhattan Co. organized the Fund, serves as Investment Adviser, and oversees investor relations and operational functions, including the appointment of service providers, valuation of securities and determination of net asset value. The Fund’s assets are custodied primarily at Pershing, LLC, a subsidiary of The Bank of New York Mellon Corporation. Xiang “Sean” Huang Adam Schwartz Lead Portfolio Manager Co-Portfolio Manager Sean Huang is Co-Founder of First Beijing and has served as Adam Schwartz is a Senior Managing Director and Portfolio Lead Portfolio Manager of FM First China Fund, LLC since its Manager with First Manhattan Co. He has also served as Co- December 2009 inception. Sean was born and raised in Portfolio Manager of FM First China Fund, LLC since its Beihai, China and moved to New York at age twelve to 2009 inception. Adam joined First Manhattan Co. in 2001, pursue a Western education. Sean was involved at an early working closely with Executive Chair Bob Gottesman on age in the family business, a large tropical fruit processor in research and client portfolios, and has over twenty years of China. Sean was responsible for working with large investment experience. multinational food companies, advancing to the level of Adam is the Fund’s key point of contact at First Manhattan Director of International Sales at the company. Co. (the Fund’s Investment Adviser, Manager and Sean received degrees in Finance and Accounting from NYU Administrator). He and Sean collaborate extensively on all Stern School of Business. After reading about Warren aspects of the Fund, including research, due diligence and Buffett, Sean developed a passion for value investing which setting investment priorities. Adam travels to China ultimately led to his employment at First Manhattan Co. regularly to assist the Fund with due diligence and provide Sean was mentored in research-driven value investing by support from First Manhattan Co. in all areas of the business. Executive Chair Bob Gottesman and Senior Managing He regularly challenges assumptions and introduces an Director Adam Schwartz. He returned to China in 2007 to additional layer of analytical rigor while assisting Sean and his complete his Masters in Finance from Peking University, team in implementing the First Manhattan-style investment Guanghua School of Management in Beijing before co- strategy and risk management culture. founding First Beijing. Adam holds a BA from Brown University in Economics and International Relations and an MBA from Columbia University Graduate School of Business.