Annual Financial Report

ABERDEEN ASIAN INCOME FUND LIMITED

Legal Entity Identifier (LEI): 549300U76MLZF5F8MN87

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2025

HIGHLIGHTS

· Share price total return for the year of 30.0% and NAV total return of 22.2%.

· Dividend yield at the year end of 6.2%.

PERFORMANCE HIGHLIGHTS

For further information, please contact:

Ben Heatley

Head of Closed End Fund Sales

Aberdeen Group plc

07796 564562

SUMMARY OF RESULTS

Financial Highlights

Capital Performance to 31 December 2025

Long Term Total Return Performance to 31 December 2025

  CHAIRMAN'S STATEMENT

Highlights

● Significant Outperformance: a share price total return of 30% and NAV total return of 22.2%, both surpassing the Index return of 21.3%.

● Strong Yield: Year-end dividend yield of 6.2% following the introduction of the enhanced dividend policy to broaden the Company's appeal.

● Shareholder Value: Discount narrowed significantly to 7.6% from 12.5% at the start of the year.

● Consistent Growth: Achieved the 17th consecutive year of dividend increases, cementing the Company's status as an AIC 'Next Generation Hero'.

Introduction

Aberdeen Asian Income Fund was launched in December 2005, and this report marks the Company's 20th anniversary. Looking back over this period, it is highly satisfying to observe the returns generated for shareholders, which demonstrate the compelling opportunities for both income and capital growth within the Asia Pacific region. The annualised net asset value ("NAV") total return from launch until 31 December 2025 was 9.9% and the annualised share price total return was 9.6%. These returns compare favourably with an annualised total return of 9.0% from the MSCI AC Asia Pacific ex Japan Index (the "Index").

In relation to dividend growth provided to shareholders, the Board is pleased to note that the increase for the year just past, which is set out below, represents the seventeenth consecutive year of annual dividend increases and means that the Company continues to be a "next generation dividend hero" as recognised by the Association of Investment Companies.

Performance for the Year

For the year under review, I am pleased to report another year of strong returns for shareholders. The share price total return was 30.0% and the NAV total return was 22.2%. These returns compare favourably with a total return of 21.3% from the Index.

In addition to the outperformance for the year, the Company continues to outperform the Index over the longer three and five year periods, in both NAV and share price total return terms.

The total dividend for the year was 16.24p per share, which equates to a dividend yield of 6.2% at the year end. The dividend increased by 12.5% compared to the previous year following the introduction of the enhanced dividend policy at the start of the year, which is set out in more detail below.

It is also pleasing to report a narrowing of the discount to 7.6% at the year end, from 12.5% at the start of the year.

Throughout the year, the Investment Manager's focus on high quality, income generating companies across Asia provided resilience against a backdrop of heightened macroeconomic volatility and political uncertainty. 2025 was a tough year for Quality and High Yield investing, with both styles lagging the broader market. Against that headwind, the Company's outperformance was a function of deliberate portfolio positioning. Careful stock selection, valuation discipline and prudent risk management ensured that capital was allocated to businesses with durable cash flows and balance sheet strength, enabling the portfolio to outperform the Index despite a less favourable environment.

A more detailed review of market developments and the portfolio's performance over the year can be found in the Investment Manager's Review.

Revenue and Dividends

In January 2025, as part of efforts to broaden the appeal of the Company's shares to a wider range of investors and to reflect the sustained investor appetite for yield in the current interest rate environment, the Board introduced an enhanced dividend policy such that the Company's dividend is now set at 1.5625% per quarter of the NAV, equating to approximately 6.25% of NAV per annum. The dividend is calculated using the Company's NAV on the last business day of the preceding financial quarter (i.e. the end of March, June, September and December).

Consequently, four dividends were declared in respect of the year amounting to 16.24p per share, resulting in a yield of 6.2% based on the year end share price.

Revenue earnings per share for the year were 14.73p, an increase of 29.8% compared to 2024. Income generation from the portfolio continues to be strong, with the Company benefitting from the Investment Manager's focus on high-yielding companies with strong fundamentals.

Introduction of Continuation Vote

Alongside the introduction of the enhanced dividend policy, to further align with shareholder interests, the Board also announced the introduction of a continuation vote so that shareholders can decide whether they wish the Company to continue in its current form at regular intervals. A continuation vote will first be tabled at the Company's Annual General Meeting in 2028, and every three years thereafter. Shareholders will be asked by simple majority vote if they wish the Company to continue in its current form. In the event that the vote should fail, further proposals will be brought to shareholders regarding the future of the Company.

Share Capital Management

The Company bought back £17.7 million worth of shares during the year to be held in treasury, representing 5.2% of the shares in issue at the start of the year, at an average discount of 10.3% and providing an estimated enhancement of 0.5% to the NAV per share.

The Company will continue to selectively buy back shares in the market, in normal market conditions and at the discretion of the Board.

Gearing

At the year end, the Company had a £50 million revolving credit facility, £31.4 million of which was drawn down, resulting in gearing (net of cash) of 4.7% (2024: 7.2%).

The loan facility matured in February 2026 and has been replaced with a evergreen year facility with the existing lender, Bank of Nova Scotia, London Branch. Under the terms of the facility, the Company has the option to increase the level of the commitment from £50 million to £70 million at any time, subject to the lender's credit approval.

Annual General Meeting ("AGM")

The AGM will be held at 12 noon on Tuesday 12 May 2026 at the offices of the Aberdeen Group, 18 Bishops Square, London E1 6EG. There will be a short presentation from the Investment Manager followed by a buffet lunch. We very much look forward to meeting and engaging with as many shareholders as possible.

We encourage all shareholders to complete and return the Proxy Form enclosed with the Annual Report so as to ensure that your votes are represented at the meeting. If you hold your shares in the Company via a share plan or a platform and would like to attend and/or vote at the AGM, then please make arrangements with the administrator of your share plan or platform.

Online Shareholder Presentation

In order to encourage as much interaction as possible with our shareholders, and especially for those who are unable to attend the AGM, we will also be hosting an Online Shareholder Presentation, which will be held at 10:30 a.m. on Wednesday 6 May 2026. At this event you will receive a presentation from the Investment Manager and have the opportunity to ask questions of the Chairman and the Investment Manager.

Full details on how to register for the online event can be found on the Company's website. Questions can be registered in advance and a recording of the event will be available on the Company's website for anyone who was unable to join.

Dividend Re-Investment

Shareholders who hold their shares on the main register are reminded that the Company's Registrar, Computershare, operates a dividend re-investment plan. This can be a good way of building up a shareholding in the Company through 'pound cost averaging', whereby quarterly dividends are re-invested automatically in new shares.

Shareholders who hold their shares through a stockbroker or online dealing platform should be able to request for their dividends to be re-invested in a similar way, by contacting their stockbroker or selecting this option through their online dealing account.

Board Composition

As previously announced, having served as a Director since May 2016, I will retire from the Board at the AGM. It has been a privilege to serve, particularly as Chairman since 2022, and I have thoroughly enjoyed working with a team so committed to enhancing shareholder value. I would like to thank my Board colleagues for their unwavering support.

Jane Routledge will succeed me as Chair upon my retirement. Jane has been an excellent Director since her appointment in May 2024 and I am confident that she and the other Directors will lead the Company successfully through its next chapter.

The Board is in the process of recruiting a new Director and hopes to announce an appointment soon.

Outlook

Asia is one of the few regions where income and growth continue to move in tandem. Companies are strengthening their balance sheets and improving how they allocate and manage capital. Crucially, they are increasingly acknowledging that dividends play a key role in enhancing shareholder returns, which in turn boosts share prices.

China is now incrementally more of an income market than it was a few years ago. The same is true in South Korea, where rising distribution ratios are tied to better governance. These governance changes matter for long-term returns.

AI continues to dominate investor sentiment. Valuations have climbed and 'froth' is appearing in some segments. In addition, the discount to AI peers in developed markets has narrowed. As a result, the Investment Manager has become more cautious and, hence, more selective in this sector. A positive factor for Asia is that its presence in the AI ecosystem is more rooted in hardware, infrastructure and components, which are the tangible backbone of the global building-out of AI capabilities. At the same time, the Investment Manager's focus on dependable yield also means that it is looking more closely at non-AI quality companies and areas where growth and dividends can compound without unnecessary distractions.

The overall investment backdrop continues to present a number of headwinds, including geopolitical risk and macroeconomic uncertainty, not least developments in the Middle East since the end of the year. Over the course of the year, the Investment Manager made a number of significant portfolio adjustments, resulting in a robust portfolio that is better positioned to navigate potential volatility in the months ahead. Modest country tilts also help to ensure that geopolitical developments do not overly influence portfolio outcomes.

Looking ahead, the Board is cautiously positive. The earnings base across the portfolio is resilient, dividend cuts appear unlikely, and any period of US Dollar softness or policy easing by the Federal Reserve would be supportive for equities and fund flows in Asia. We consider that the case for investing in the Company remains ever compelling.

Ian Cadby

Chairman

17 March 2026

INVESTMENT MANAGER'S REVIEW

01 How did Aberdeen Asian Income Fund perform in 2025?

2025 marked another year of good returns for the Company. The share price rose 30% on a total return basis, and the net asset value ("NAV") returned 22.2%, outperforming a total return of 21.3% for the MSCI AC Asia Pacific ex Japan Index (the "Index").

Aside from the strong capital returns, we are also pleased to report that the total dividend rose for the 17th consecutive year, by 12.5% to 16.24p per share, providing a yield of 6.2% at the year end.

In addition, the discount of the share price to the NAV narrowed steadily through the year, to 7.6% at the year end, from 12.5% at the start of the year.

The Company continues to outperform the Index over the longer three and five-year periods.

02 What drove performance?

Performance during the year was mainly driven by stock selection. This was a pleasing outcome, given that we invest in high-quality dividend franchises with reliable free cash flow and disciplined distribution policies. The portfolio's performance was achieved despite style headwinds in a market that favoured value and cyclical stocks over quality and yield.

Overall, Asian equities proved resilient, as subsiding trade tensions, hopes of interest rate cuts and excitement over artificial intelligence ("AI") outweighed worries over US tariffs, the US Federal Reserve's policy track, and the global economy.

South Korea and Taiwan led the way thanks to huge demand for AI-related chips and hardware. The AI-related exposures in the portfolio were positive contributors. Taiwanese companies Accton Technology, ASE Technology and Taiwan Union Technology benefited from AI-driven hardware demand. South Korea's Samsung Electronics boosted performance, as semiconductor prices rose on rising memory needs, although this was pared by the lighter positioning in SK Hynix.

The Chinese market rallied on the launch of the low-cost DeepSeek AI model, which boosted AI-related companies. Across the portfolio, we saw mixed contributions. Insurers such as PICC Property and Casualty and Ping An Insurance re-rated from low bases and restructuring progress. Structural weakness, however, persisted in property and consumer companies, weighing on dairy producer Inner Mongolia Yili Industrial and Hangzhou Robam Appliances, while being underweight Alibaba was a drag on performance, given its AI exposure.

In contrast, Indian markets fell on tariff headwinds, slowing growth and earnings downgrades. Their exposure to global AI trades was also low. Our lighter positioning in India thus worked to the Company's favour. However, this was overshadowed by stock weakness. Power Grid Corporation disappointed on guidance, while Tata Consultancy Services and Infosys fell amid the soft patch in the information technology ("IT") services sector.

03 China has rallied sharply. Are you still seeing opportunities?

Yes, but selectively. We are seeing opportunities in areas that are recovering from a low base and low valuations caused by four years of policy tightening.

A good example is Ping An Insurance. The insurer has navigated through tightening regulations, falling interest rates and a shrinking agency force, which combined to compress valuations across the sector.

The good thing is that Ping An has moved beyond this "repair" stage and is now on the recovery path. Asset yields are improving as long-term rates stabilise, and insurance capital is returning to equities.

Ping An's latest results show that new business value margins are recovering and are significantly higher than its peers. Growth in contractual services has returned, and bancassurance is recovering under tighter distribution rules.

As a result, Ping An is back in the reckoning and poised to grow from a low case, with yields, profits and return on equity ("ROE") rebounding steadily.

04 AI has also seen a strong rally. What's your view now?

AI remains a structural growth theme, but last year's rally has pushed expectations and valuations sharply higher across parts of the supply chain. From here, returns over the shorter term are likely to be more sensitive to delivery on earnings.

That said, the longer-term story remains intact. AI is moving beyond hype to real earnings, as AI applications and chips proliferate. Capital expenditure ("capex") is high; on servers, memory, advanced packaging, power and cooling, where supply is tight and demand visibility is improving.

Our AI exposure is in Taiwan's technology sector. We prefer semiconductors and technology hardware, where earnings visibility is better and the capex runway is strong, over the downstream segments such as consumer electronics and smartphone and PC makers, where demand is more cyclical and pricing power is weaker.

For instance, a core holding in the portfolio is technology giant Taiwan Semiconductor Manufacturing Company ("TSMC"), which is still expanding capacity as AI demand grows. We also like the key "picks and shovels" enablers, including ASE Technology, which is benefiting from the rising need for advanced chip packaging and testing.

As an income strategy, we find limited opportunities in new growth sectors. We have therefore started rotating part of the portfolio towards quality compounders outside the AI theme. These are businesses with predictable cash flows, sensible balance sheets, and valuations that have not been caught up in the thematic AI optimism. It also helps buffer the portfolio from over-concentration in one narrative, as concentration and valuation risks tend to rise in tandem.

A recent example would be Medibank Private, the best quality company in the Australian private health insurance sector. Whilst growth is not exciting in an Asian context, the business has steady cash generation, a healthy dividend and defensive characteristics. Its strong franchise and capable management team support market-leading profitability and return through cycles. Medibank bears the hallmarks of a classic long-term compounder and, at the current level, we view the valuation as relatively undemanding.

We still like AI but prefer to be more selective, valuation-conscious and disciplined, as we aim to balance structural growth with dependable income and resilience.

05 How are you positioning the portfolio for the year ahead?

We are comfortable with how the portfolio is shaping up for 2026. As the Chairman noted in the Half-Yearly Report, we have largely completed the refinement of our strategy. This balances growth and income across key Asian markets more deliberately, with the tightening of country weights and lifting of stock-specific risk, thereby expressing our convictions more cleanly. We have avoided making big directional calls; instead, we are backing companies whose earnings and dividends look clearer than the macro noise.

Quality remains the key element in our stock picks. Although quality struggled last year, our stock selection still delivered outperformance. The portfolio is well placed if the market starts rewarding fundamentals again. Even if the conditions remain challenging, the holdings should continue to generate steady earnings and cash flow despite the macro and market sentiment.

On country positioning, we have avoided big bets. We remain underweight India while we wait for signs of a stabilising domestic recovery and easing tariff risks. China's recovery remains patchy, but we are finding opportunities where the base is low and operational changes can unlock value, such as life insurance. In addition, governance-driven improvements in both China and South Korea support the income side of the portfolio.

Our refined total return approach combines yield and earnings growth, while maintaining a quality income focus. Throughout the year, we initiated positions in companies that are strong dividend franchises at various stages of their life cycles. Some of these companies could be lower yielding, but based on their high-quality business models, dividend policies, and growth potential, are strong dividend payers.

Some of the more recent initiations included China Resources Mixc Lifestyle Services, which operates premium malls and mixed-use developments. It is a proxy for urban consumption and has a strong pipeline of assets in tier-one cities (e.g. Beijing, Shanghai).

In Taiwan, we added a new holding in Sino-American Silicon Products ("SAS"). The group owns a large stake in GlobalWafers, one of the world's leading silicon wafer suppliers, alongside businesses in related areas such as compound semiconductors and automotive power electronics. It is a critical supplier to the semiconductor industry. Its core products - high-purity silicon ingots and wafers - are key inputs for making integrated circuits ("IC"s), memory chips, power devices, and other components.

Among the exits, we sold the holding in Insurance Australia on waning near-term conviction due to concerns over the pricing cycle and mergers and acquisitions.

06 What does the portfolio look like?

We divide the portfolio into three groups to shape position sizes, valuation focus and holding periods.

First, compounders are high-quality businesses with sustainable earnings and cash-flow growth, which are held patiently for long-term returns. Here, we hold Tencent Holdings, a high-quality China internet franchise with resilient cash-generating core businesses and disciplined AI investment. Tencent is strengthening its ecosystem, with long-run monetisation potential across its social media and payment platforms.

Second, consistent holdings in reliable and less cyclical companies that provide reliable income but limited growth, helping support the Company's yield. In this section of the portfolio is Region Group, a real estate investment trust with resilient income from convenience-based Australian retail assets. As interest rates ease, transaction activity is picking up, supporting property values and potential acquisitions. Strong capital access and a decent yield underpin distributions, with potential for medium-term growth.

Finally, cyclical companies are more sensitive to the economic, credit or interest-rate cycle and are used more tactically, based on fundamentals and valuation. An example would be China Construction Bank, one of China's largest state-owned banks with a large and stable retail deposit base that keeps funding costs low. Its loan book is concentrated in lower-risk mortgages, with some exposure to infrastructure lending.

This "3C" framework (Compounders, Consistent Holdings and Cyclical Companies) helps balance sustainable income with targeted growth opportunities.

07 How is the corporate reform drive across Asia impacting the portfolio?

For years, Asian corporate reform was mostly talk but now there is tangible policy change and progress, albeit at an uneven pace across markets. We are seeing higher distribution ratios, more consistent share buybacks, and a clearer recognition of minority shareholder interests.

This shift is especially apparent in South Korea. The government has promised sweeping capital market reforms to narrow the so-called South Korea discount, where local shares trade below their fundamental value. Corporate share buybacks or cancellations have more than doubled over the past two years since the introduction of the government's corporate 'value-up' initiative in 2024. Valuation metrics have also improved. At the end of 2025, the MSCI Korea Index recorded a price-to-book ratio ("PBR") of 1.6 and a price-to-earnings ratio ("PER") of 17.5, both exceeding their 10-year averages. Similarly, China is pushing state-owned enterprises to raise their dividends.

These reforms benefit the portfolio in two main ways. Firstly, more dependable income. With the reform drive, more companies are moving towards sustainable dividends rather than one-off or opportunistic distributions such as special dividends. South Korea is a good example: companies that have historically hoarded cash are now signalling discipline through higher dividends. The market tends to reward those with higher multiples, that is, higher prices because of expectations of better returns.

Secondly, the potential of a re-rating. When governance improves, the cost of capital falls and the market starts to reward companies that commit to cash returns and governance. As reforms become embedded in the corporate sector, there is room for a valuation catch-up for companies that had been priced as if governance change was unlikely to arrive. Life insurers in China illustrate this dynamic: after years of weakness and restructuring, the low base plus better operational discipline has created space for both earnings recovery and multiple expansion.

These trends broaden the opportunity set for the portfolio. We are no longer confined to traditional dividend markets such as Australia and Singapore, and we can now source for income and growth in markets where that was not available in the past.

08 Will income investing in Asia still pay off in 2026?

Yes, we believe so. The income story in Asia still has a long way to go.

Asia is still the world's growth engine, driving over half of global economic growth. This is important for income investors because higher nominal GDP growth tends to support stronger total shareholder returns, especially in markets where cash generation is improving and capital discipline is tightening.

We have seen the clearest shift in the technology sector. Several Asian technology leaders, such as TSMC and Samsung Electronics which are held in the portfolio, now resemble global compounders rather than cyclical manufacturers. They have net-cash balance sheets, generate high margins and follow clear distribution policies.

Policy is reinforcing this trend. Japan's 'value up' programme momentum has spread to South Korea, and to China and Singapore. What was once a confined opportunity set has broadened into a deeper, more reliable income universe. The phrase "technology doesn't yield" is less applicable to Asia now.

Our investing approach leans into this change. We favour companies where balance sheet strength, shareholder return discipline and cash flow visibility support both dividends and capital growth. We believe that quality with growth remains the most durable combination. Businesses that can fund dividends without compromising future expansion tend to hold up in both good times and bad times. Asia continues to provide that mix in sectors from financials to semiconductors to consumer platforms.

We expect Asia to remain a rewarding region for income investors in 2026, not only because of high yields but also strengthening fundamentals behind the companies. We will continue to use market volatility to opportunistically take positions in high-quality companies with good yield potential at sensible valuations.

Isaac Thong and Eric Chan

abrdn Asia Limited

17 March 2026

OVERVIEW OF STRATEGY

Launched in December 2005, Aberdeen Asian Income Fund Limited (the "Company") is registered with limited liability in Jersey as a closed-end investment company under the Companies (Jersey) Law 1991 with registered number 91671. The Company's Ordinary shares are listed on the Main Market of the London Stock Exchange.

Investment Objective

To provide investors with a total return primarily through investing in Asia Pacific securities, including those with an above average yield. Within its overall investment objective, the Company aims to grow its dividends over time.

Business Model

The Company aims to attract long-term private and institutional investors wanting to benefit from the income and growth potential of Asia's most compelling companies.

The business of the Company is that of an investment company and the Directors do not envisage any change in this activity in the foreseeable future.

Investment Policy

Asset Allocation

The Company invests primarily in the Asia Pacific region through investment in:

- companies listed on stock exchanges in the Asia Pacific region;

- Asia Pacific securities, such as global depositary receipts (GDRs), listed on other international stock exchanges;

- companies listed on other international exchanges that derive significant revenues or profits from the Asia Pacific region; and

- debt issued by governments or companies in the Asia Pacific region or denominated in Asia Pacific currencies.

The Company's investment policy is flexible, enabling it to invest in all types of securities, including equity shares, preference shares, debt, convertible securities, warrants and other equity-related securities. The Company is free to invest in any market segments or any countries in the Asia Pacific region. The Company may use derivatives to enhance income generation.

The Company invests in small, mid and large capitalisation companies. The Company's policy is not to acquire securities that are unquoted or unlisted at the time of investment (with the exception of securities which are about to be listed or traded on a stock exchange). However, the Company may continue to hold securities that cease to be quoted or listed if the Investment Manager considers this to be appropriate. The Company may also enter into stock lending contracts for the purpose of enhancing income returns.

Typically, the portfolio will comprise of between 40 and 70 holdings (but without restricting the Company from holding a more or less concentrated portfolio in the future).

Risk Diversification

The Company will not invest more than 10%, in aggregate, of the value of its total assets in investment trusts or investment companies admitted to the Official List, provided that this restriction does not apply to investments in any such investment trusts or investment companies which themselves have stated investment policies to invest no more than 15% of their total assets in other investment trusts or investment companies admitted to the Official List. In any event, the Company will not invest more than 15% of its total assets in other investment trusts or investment companies admitted to the Official List.

In addition, the Company will not:

- invest, either directly or indirectly, or lend more than 20% of its total assets to any single underlying issuer (including the underlying issuer's subsidiaries or affiliates), provided that this restriction does not apply to cash deposits awaiting investment;

- invest more than 20% of its total assets in other collective investment undertakings (open-ended or closed-ended);

- expose more than 20% of its total assets to the creditworthiness or solvency of any one counterparty (including the counterparty's subsidiaries or affiliates);

- invest in physical commodities;

- take legal or management control of any of its investee companies; or

- conduct any significant trading activity.

The Company may invest in derivatives, financial instruments, money market instruments and currencies for investment purposes (including the writing of put and call options for non-speculative purposes to enhance investment returns) as well as for the purpose of efficient portfolio management (i.e. for the purpose of reducing, transferring or eliminating investment risk in the Company's investments, including any technique or instrument used to provide protection against foreign exchange and credit risks). For the avoidance of doubt, in line with the risk parameters outlined above, any investment in derivative securities will be covered.

The Investment Manager expects the Company's assets will normally be fully invested. However, during periods in which changes in economic conditions or other factors so warrant, the Company may reduce its exposure to securities and increase its position in cash and money market instruments.

Gearing Policy

The Board is responsible for determining the gearing strategy for the Company. The Board has restricted the maximum level of gearing to 25% of net assets although, in normal market conditions, the Company is unlikely to take out gearing in excess of 15% of net assets. Gearing is used selectively to leverage the Company's portfolio in order to enhance returns where this is considered appropriate. Borrowings are generally shorter-term, but the Board may from time to time take out longer-term borrowings where it is believed to be in the Company's best interests to do so. Particular care is taken to ensure that any bank covenants permit maximum flexibility of investment policy.

The percentage investment and gearing limits set out under this sub-heading "Investment Policy" are only applied at the time that the relevant investment is made or borrowing is incurred.

In the event of any breach of the Company's investment policy, shareholders will be informed of the actions to be taken by the Investment Manager by an announcement issued through a Regulatory Information Service or a notice sent to shareholders at their registered addresses.

The Company may only make material changes to its investment policy (including the level of gearing set by the Board) with the approval of shareholders (in the form of an ordinary resolution). In addition, any changes to the Company's investment objective or policy will require the prior approval of the Financial Conduct Authority as well as prior consent of the Jersey Financial Services Commission ("JFSC") to the extent that the changes materially affect the import of the information previously supplied in connection with its approval under Jersey Funds Law or are contrary to the terms of the Jersey Collective Investment Funds laws.

Dividend Policy

The Company's dividend policy is to set the dividend at 1.5625% per quarter of the Company's net asset value ("NAV"), equating to approximately 6.25% of NAV per annum. The dividend is calculated using the Company's NAV on the last business day of the preceding financial quarter (i.e. the end of March, June, September and December).

Duration and Continuation Vote

The Company does not have a fixed life. However, during the year, the Board introduced a continuation vote so that shareholders can decide whether they wish the Company to continue in its current form at regular intervals. A continuation vote will first be tabled at the Company's Annual General Meeting in 2028, and every three years thereafter. Shareholders will be asked by simple majority vote if they wish the Company to continue in its current form. In the event that the vote should fail, further proposals will be brought to shareholders regarding the future of the Company.

Comparative Index

The Company's portfolio is constructed without reference to any stock market index. It is likely, therefore, that there will be periods when the Company's performance will be quite unlike that of any index and there can be no assurance that such divergence will be wholly or even primarily to the Company's advantage. The Company compares its performance against the currency-adjusted MSCI AC Asia Pacific ex Japan Index (the "Index").

Promoting the Success of the Company

In accordance with corporate governance best practice, the Board is required to describe to the Company's shareholders how the Directors have discharged their duties and responsibilities over the course of the financial year following the guidelines set out in the UK under section 172 (1) of the Companies Act 2006 (the "s172 Statement") which the Company has adopted on a voluntary basis. This Statement, from "Promoting the Success of the Company" to "Online Shareholder Presentation" provides an explanation of how the Directors have promoted the success of the Company for the benefit of its members as a whole, taking into account, among other things, the likely long-term consequences of decisions, the need to foster relationships with all stakeholders and the impact of the Company's operations on the environment.

The purpose of the Company is to act as a vehicle to provide, over time, financial returns (both income and capital) to its shareholders. The Company's investment objective is disclosed above. The activities of the Company are overseen by the Board of Directors of the Company. The Board's philosophy is that the Company should operate in a transparent culture where all parties are treated with respect and provided with the opportunity to offer practical challenge and participate in positive debate which is focused on the aim of achieving the expectations of shareholders and other stakeholders alike. At its regular meetings, the Board reviews the culture and manner in which the Investment Manager operates and receives regular reporting and feedback from the other key service providers.

Investment companies, such as the Company, are long-term investment vehicles, with a recommended holding period of five or more years. Typically, investment companies are externally managed, have no employees, and are overseen by an independent non-executive board of directors. The Company's Board of Directors sets the investment mandate, monitors the performance of all service providers (including the Investment Manager) and is responsible for reviewing strategy on a regular basis. All this is done with the aim of preserving and, indeed, enhancing shareholder value over the longer-term.

Shareholder Engagement

The following table describes some of the ways the Board engages with the Company's shareholders:

The Investment Manager

The key service provider for the Company is the Investment Manager, abrdn Asia Limited. The performance of abrdn Asia Limited is reviewed in detail at each Board meeting.

Key Stakeholders - Shareholders

Shareholders are key stakeholders in the Company - they are looking to the Investment Manager to achieve the investment objective over time and to deliver a regular growing income together with some capital growth. The Board is available to meet with shareholders at the AGM. This is seen as a very useful opportunity to understand the needs and views of the shareholders. In between AGMs, the Directors and Investment Manager also conduct programmes of investor meetings with larger institutional, private wealth and other shareholders to ensure that the Company is meeting their needs. Such regular meetings may take the form of joint presentations with the Investment Manager or meetings directly with a Director where any matters of concern may be raised directly.

Other Stakeholders - Service Providers

The other key stakeholder group is that of the Company's third party service providers. The Board is responsible for selecting the most appropriate outsourced service providers and monitoring the relationships with these suppliers regularly in order to ensure a constructive working relationship. The service providers look to the Company to provide them with a clear understanding of its needs in order that those requirements can be delivered efficiently and fairly. The Board, via the Management Engagement Committee, ensures that the arrangements with service providers are reviewed in detail at least annually. The aim is to ensure that contractual arrangements remain competitively priced in line with best practice, services being offered meet the requirements and needs of the Company and performance is in line with the expectations of the Board, Investment Manager and other relevant stakeholders. Reviews include those of the Company's Custodian, Company Secretary, Registrar, Broker and Auditor.

Principal Decisions

Pursuant to the Board's aim of promoting the long-term success of the Company, the following principal decisions were taken during the year:

Portfolio/Investment Performance

The Investment Manager's Review details the key investment decisions taken during the year and subsequently. The Investment Manager has continued to monitor the investment portfolio throughout the year under the supervision of the Board.

The Investment Manager's investment process seeks to outperform over the longer term. The Board has in place the necessary procedures and processes to continue to promote the long-term success of the Company. The Board continues to monitor, evaluate and seek to improve these processes as the Company continues to grow over time, to ensure that the investment proposition is delivered to shareholders and other stakeholders in line with their expectations.

During the year, the Board confirmed that the continuing appointment of the Investment Manager, on the terms agreed, is in the interests of the shareholders as a whole.

Gearing

The Company utilises gearing in the form of bank debt with the aim of enhancing shareholder returns over the longer term. Since the year end, the Company has renewed its secured, £50 million multi-currency revolving credit facility with Bank of Nova Scotia, London Branch on an evergreen basis. Under the terms of the facility, the Company has the option to increase the level of the commitment from £50 million to £70 million at any time, subject to the lender's credit approval. The Board reviews the level of gearing at each Board meeting.

Share Buybacks

During the year, the Company continued to buy back Ordinary shares opportunistically in order to provide liquidity to the market and to provide an enhancement to the Company's NAV and benefit all shareholders. 7.8 million Ordinary shares were bought back during the year to be held in treasury, representing 5.2% of the shares in issue at the start of the year. The average discount to NAV of the shares bought back was 10.2% and the buybacks provided an estimated enhancement of 0.5% to the NAV per share.

Enhanced Dividend Policy and Introduction of Continuation Vote

In January 2025, as part of efforts to broaden the appeal of the Company's shares to a wider range of investors and to reflect the sustained investor appetite for yield in the current interest rate environment, the Board introduced an enhanced dividend policy such that the Company's dividend is now set at 1.5625% per quarter of the NAV, equating to approximately 6.25% of NAV per annum.

Alongside the enhanced dividend policy, to further align with shareholder interests, the Board also announced the introduction of a continuation vote so that shareholders can decide whether they wish the Company to continue in its current form at regular intervals. A continuation vote will first be tabled at the Company's AGM in 2028, and every three years thereafter. Shareholders will be asked by simple majority vote if they wish the Company to continue in its current form. In the event that the vote should fail, further proposals will be brought to shareholders regarding the future of the Company.

The Board believes that these actions, alongside other recent initiatives, should help ensure a positive outlook for shareholder returns.

Online Shareholder Presentation

In order to encourage as much interaction as possible with shareholders, and especially for those who are unable to attend the AGM, the Board will be hosting an Online Shareholder Presentation, which will be held at 10:30 a.m. on Wednesday 6 May 2026. At this event shareholders will receive a presentation from the Investment Manager and have the opportunity to ask questions of the Chairman and the Investment Manager.

Full details on how to register for the online event can be found on the Company's website.

Key Performance Indicators ("KPIs")

The Board uses a number of financial performance measures to assess the Company's success in achieving its objective and to determine the progress of the Company in pursuing its investment policy. The main KPIs identified by the Board in relation to the Company, which are considered at each Board meeting, are as follows:

Principal and Emerging Risks

There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial condition, performance and prospects. The Board has undertaken a robust review of the principal and emerging risks and uncertainties facing the Company including those that would threaten its business model, future performance, solvency or liquidity. Those principal risks are disclosed in the table below together with a description of the mitigating actions taken by the Board. The principal risks associated with an investment in the Company's shares are published monthly on the Company's factsheet or they can be found in the Pre-Investment Disclosure Document published by the Investment Manager, both of which are available on the Company's website.

The Board reviews the risks and uncertainties faced by the Company in the form of a risk matrix and heat map at its Audit Committee meetings. The Board also has a process to consider emerging risks and if any of these are deemed to be significant they are categorised, rated and added to the risk matrix for closer monitoring.

The Board considers that there are a number of other risks which, if realised, could have a material adverse effect on the Company and its financial condition, performance and prospects. These include various geopolitical tensions.

Promoting the Company

The Board recognises the importance of communicating the long-term attractions of the Company to prospective investors both for improving liquidity and enhancing the value and rating of the Company's shares. The Board believes an effective way to achieve this is through subscription to and participation in the promotional programme run by the Aberdeen Group on behalf of a number of investment companies under its management. The Company also supports the Aberdeen investor relations programme which involves regional roadshows and promotional and public relations campaigns. The purpose of these initiatives is both to communicate effectively with existing shareholders and to gain new shareholders with the aim of improving liquidity and enhancing the value and rating of the Company's shares. The Company's financial contribution to the programmes is matched by the Aberdeen Group.

The Company, through the Investment Manager, has also commissioned independent paid-for research which is available to download from the Company's website.

In addition, the Board has appointed an external PR agent to work alongside the Investment Manager in seeking to raise the profile of the Company.

Environmental, Social and Human Rights Issues

The Company has no employees as management of the assets is delegated to the Investment Manager. There are therefore no disclosures to be made in respect of employees.

Due to the nature of the Company's business, being a Company that does not offer goods and services to customers, the Board considers that it is not within the scope of the UK's Modern Slavery Act 2015 because it has no turnover. The Company is therefore not required to make a slavery and human trafficking statement.

UK Stewardship Code and Proxy Voting

The Company supports the UK's Stewardship Code, and seeks to play its role in supporting good stewardship of the companies in which it invests. While the delivery of stewardship activities has been delegated to the Investment Manager, the Board acknowledges its role in setting the tone for the effective delivery of stewardship on the Company's behalf.

Aberdeen Group plc is a signatory of the UK Stewardship Code which aims to enhance the quality of engagement by investors with investee companies in order to improve their socially responsible performance and the long-term investment return to shareholders.

Sustainability Disclosure Requirements ("SDR")

In November 2023, the Financial Conduct Authority ("FCA") published its sustainability disclosure requirements and investment labels regime ("SDR") to address concerns about misleading sustainability claims. SDR includes an opt-in labelling regime for sustainable investment products, additional disclosure requirements and restrictions on the use of sustainability terms. It also establishes anti-greenwashing ("AGW") rules. Investment trusts and their managers are in scope of the SDR. Although investment trusts are not directly in scope of the AGW requirements, the rules apply indirectly to them, mostly via obligations imposed on their managers.

Although Environmental, Social and Governance ("ESG") factors are taken into consideration by the Investment Manager as part of its investment analysis, the Company itself does not have an explicit sustainability objective and so under SDR is categorised as "Non-labelled" rather than "Labelled" or "Other".

Viability Statement

The Company does not have a formal fixed period strategic plan but the Board formally considers risks and strategy at least annually. The Board considers the Company, with no fixed life, to be a long-term investment vehicle, but for the purposes of this viability statement has decided that a period of three years is an appropriate period over which to report. The Board considers that this period reflects a balance between looking out over a long-term horizon and the inherent uncertainties of looking out further than three years. In assessing the viability of the Company over the review period the Directors have focused upon the following factors:

- the principal risks detailed in the Strategic Report;

- the ongoing relevance of the Company's investment objective in the current environment;

- the demand for the Company's shares evidenced by the historical level of premium and/or discount;

- the level of income generated by the Company;

- the liquidity of the Company's portfolio;

- the flexibility provided by the Company's £50 million revolving credit facility; and

- the announcement by the Board during the year of the introduction of a continuation vote which will first be tabled at the Company's AGM in 2028, and every three years thereafter.

Accordingly, taking into account the Company's current position, the fact that its investments are mostly liquid and the potential impact of its principal risks and uncertainties, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this Report. In making its assessment, the Board is also aware that there are other matters that could have an impact on the Company's prospects or viability in the future, including significant stock market volatility, and changes in regulation or investor sentiment.

Future

Many of the non-performance related trends likely to affect the Company in the future are common across all closed-end investment companies, such as the attractiveness of investment companies as investment vehicles, the increased focus on ESG factors when making investment decisions, the impact of regulatory changes and the effects of changes to the pensions and savings market in the UK in recent years. These factors need to be viewed alongside the outlook for the Company, both generally and specifically, in relation to the portfolio. The Board's view on the general outlook for the Company can be found in the Chairman's Statement whilst the Investment Manager's views on the outlook for the portfolio are included in its statement.

Ian Cadby

Chairman

17 March 2026

28 Esplanade

St Helier

Jersey JE2 3QA

DIVIDENDS AND TEN YEAR FINANCIAL RECORD

Dividends

Ten Year Financial Record

INVESTMENT PORTFOLIO

DIRECTORS' REPORT (EXTRACT)

Introduction

The Directors present their Report and the audited financial statements for the year ended 31 December 2025.

Results and Dividends

The financial statements for the year ended 31 December 2025 are contained below. The Company's dividend policy is to pay interim dividends on a quarterly basis and for the year to 31 December 2025 dividends were paid on 23 May, 22 August and 21 November 2025 and 20 February 2026.

Status

The Company is registered with limited liability in Jersey as a closed-end investment company under the Companies (Jersey) Law 1991 with registered number 91671 and regulated as an Alternative Investment Fund by the Jersey Financial Services Commission. In addition, the Company constitutes and is regulated as a collective investment fund under the Collective Investment Funds (Jersey) Law 1988 and is an Alternative Investment Fund (within the meaning of Regulation 3 of the Alternative Investment Fund Regulations). The Company has no employees and makes no political donations. The Ordinary shares are admitted to the Official List and are traded on the London Stock Exchange's Main Market.

With effect from 1 January 2022 the Company applied to HM Revenue & Customs to become an investment trust subject to the Company continuing to meet the relevant eligibility conditions of Section 1158 of the Corporation Tax Act 2010 and the ongoing requirements of Part 2 Chapter 3 Statutory Instrument 2011/2999 for all financial years commencing on or after 1 January 2022. The Directors are of the opinion that the Company has conducted its affairs for the period from 1 January 2022 so as to enable it to comply with the ongoing requirements for investment trust status.

The Company is a member of the Association of Investment Companies ("AIC").

Individual Savings Accounts

The Company has conducted its affairs so as to satisfy the requirements as a qualifying security for Individual Savings Accounts. The Directors intend that the Company will continue to conduct its affairs in this manner.

Capital Structure, Issuance and Buybacks

The Company's capital structure is summarised in note 15 to the financial statements. At 31 December 2025, there were 142,515,862 fully paid Ordinary shares of no par value (2024 - 150,306,492) in issue. At the year end there were 52,417,527 Ordinary shares held in treasury (2024 - 44,626,897).

During the year 7,790,630 Ordinary shares were purchased in the market for treasury (2024 - 16,872,215) and no Ordinary shares were issued or sold from treasury.

There have been no share buy backs since the end of the year.

Voting Rights

Each Ordinary share holds one voting right and shareholders are entitled to vote on all resolutions which are proposed at general meetings of the Company. The Ordinary shares, excluding treasury shares, carry a right to receive dividends. On a winding up or other return of capital, after meeting the liabilities of the Company, the surplus assets will be paid to Ordinary shareholders in proportion to their shareholdings. There are no restrictions on the transfer of Ordinary shares in the Company other than certain restrictions which may be applied from time to time by law.

Borrowings

At the year end the Company had a £50 million loan with the Bank of Nova Scotia, London Branch. Since the year end, the Company has renewed the facility on an evergreen basis. Under the terms of the facility, the Company has the option to increase the level of the commitment from £50 million to £70 million at any time, subject to the lender's credit approval.

Management and Company Secretarial Arrangements

abrdn Asia Limited (a Singapore-based wholly-owned subsidiary of Aberdeen Group plc) has been appointed by the Company to provide portfolio and risk management services and to act as the Company's non-EU 'alternative investment fund manager' for the purposes of the Alternative Investment Fund Managers Directive 2011/61/EU. abrdn Investments Limited (a UK-based wholly owned subsidiary of Aberdeen Group plc), which is authorised and regulated by the Financial Conduct Authority, has been appointed to provide general administrative and advisory services, fund accounting, secretarial, marketing and promotional activities as well as group risk and compliance reporting to the Company.

In addition, the Company has appointed JTC Fund Solutions (Jersey) Limited ("JTC") under an administration agreement between JTC and the Company to provide certain Jersey based services including, but not limited to, Jersey administration services and compliance with applicable Jersey codes (including provision of a compliance officer, money laundering reporting officer and money laundering compliance officer). JTC also provides a registered office and company secretarial services. The administration fee charged by JTC is met by the Aberdeen Group.

Termination of the management agreement is subject to six months' notice. Further details of the management fee arrangements are contained in notes 5 and 20 to the financial statements.

Risk Management

Details of the financial risk management policies and objectives relative to the use of financial instruments by the Company are set out in note 18 to the financial statements.

Substantial Interests

Information provided to the Company by major shareholders pursuant to the FCA's Disclosure Guidance and Transparency Rules are published by the Company via a Regulatory Information Service.

The table below sets out the interests in 3% or more of the issued share capital of the Company, of which the Board was aware as of 31 December 2025.

Since the year end, City of London Investment Management has notified the Company of a reduced holding of 6,925,439 Ordinary shares (4.9%). There have been no other changes notified to the Company since the year end.

Directors

The Board consists of five non-executive Directors, Robert Kirkby, Mark Florance, Ian Cadby, Nicky McCabe and Jane Routledge, each of whom held office throughout the year. Krystyna Nowak retired as a Director on 8 May 2025.

The AIC Corporate Governance Code recommends that all Directors should be subject to annual re-election by shareholders. Accordingly, all members of the Board, other than Ian Cadby, will retire at the Annual General Meeting ("AGM") and will offer themselves for election/ re-election. Having served as a Director for more than nine years, Ian Cadby will retire from the Board at the AGM.

The Board considers that there is a balance of skills and experience within the Board relevant to the leadership and direction of the Company and that all the Directors contribute effectively. The Board has reviewed each of the proposed elections/re-elections and concluded that each of the Directors has the requisite high level and range of business and financial experience and recommends their election/re-election at the forthcoming AGM.

In common with most investment companies, the Company has no employees. Directors' & Officers' liability insurance cover has been maintained throughout the year at the expense of the Company.

Directors attended the following scheduled Board and Committee meetings during the year ended 31 December 2025 (with their eligibility to attend the relevant meeting in brackets):

A Mr Cadby is not a member of the Audit Committee but attended both meetings by invitation.

B Retired as a Director on 8 May 2025

In addition to the above meetings there were a number of ad hoc Board meetings held during the year to review and approve dividends and other operational matters.

The Role of the Chairman and Senior Independent Director

The Chairman is responsible for providing effective leadership to the Board, by setting the tone of the Company, demonstrating objective judgement and promoting a culture of openness and debate. The Chairman facilitates the effective contribution, and encourages active engagement, by each Director. In conjunction with the Company Secretary, the Chairman ensures that Directors receive accurate, timely and clear information to assist them with effective decision-making. The Chairman leads the evaluation of the Board and individual Directors, and acts upon the results of the evaluation process by recognising strengths and addressing any weaknesses. The Chairman also engages with major shareholders and ensures that all Directors understand shareholder views.

The Senior Independent Director acts as a sounding board for the Chairman and acts as an intermediary for other Directors, when necessary. Working closely with the Nomination and Remuneration Committee, the Senior Independent Director takes responsibility for an orderly succession process for the Chairman, and leads the annual appraisal of the Chairman's performance. The Senior Independent Director is also available to shareholders to discuss any concerns they may have.

Policy on Tenure

In normal circumstances, it is the Board's expectation that Directors will not serve serve beyond the AGM following the ninth anniversary of their appointment. However, the Board takes the view that independence of individual Directors is not necessarily compromised by length of tenure on the Board and that continuity and experience can add significantly to the Board's strength. The Board believes that recommendation for re-election should be on an individual basis following a rigorous review which assesses the contribution made by the Director concerned, but also taking into account the need for managed succession and diversity.

It is the Board's policy that the Chairman of the Board will not serve as a Director beyond the AGM following the ninth anniversary of his or her appointment to the Board. However, this may be extended in exceptional circumstances or to facilitate effective succession planning and the development of a diverse Board. In such a situation the reasons for the extension will be fully explained to shareholders and a timetable for the departure of the Chairman clearly set out.

Matters Reserved for the Board

The Board has a schedule of matters reserved to it for decision and the requirement for Board approval on these matters is communicated directly to the senior staff of the Investment Manager. Such matters include strategy, gearing, treasury and dividend policy. Full and timely information is provided to the Board to enable the Directors to function effectively and to discharge their responsibilities. The Board also reviews the financial statements, performance and revenue budgets.

Management of Conflicts of Interests

The Board has a procedure in place to deal with a situation where a Director has a conflict of interest. As part of this process, the Directors are required to disclose other positions held and all other conflict situations that may need to be authorised either in relation to the Director concerned or his or her connected persons. The Board considers each Director's situation and decides whether to approve any conflict, taking into consideration what is in the best interests of the Company and whether the Director's ability to act in accordance with his or her wider duties is affected. Each Director is required to notify the Company Secretary of any potential or actual conflict situations that will need authorising by the Board. Authorisations given by the Board are reviewed at each Board meeting.

No Director has a service contract with the Company although Directors are issued with letters of appointment upon appointment. No Directors had any interest in contracts with the Company during the period or subsequently.

The Company has a policy of conducting its business in an honest and ethical manner. The Company takes a zero tolerance approach to bribery and corruption and has procedures in place that are proportionate to the Company's circumstances to prevent them. The Aberdeen Group also adopts a group-wide zero tolerance approach and has its own detailed policy and procedures in place to prevent bribery and corruption. Copies of the Aberdeen Group's anti-bribery and corruption policies are available on its website.

Board Diversity

The Board recognises the importance of having a range of skilled, experienced individuals with the right knowledge represented on the Board in order to allow it to fulfil its obligations. The Board also recognises the benefits, and is supportive of, the principle of diversity in its recruitment of new Board members, including diversity of thought, location and background. The Board will not display any bias for age, gender, race, sexual orientation, religion, ethnic or national origins, or disability in considering the appointment of its Directors. In view of its size, the Board will continue to ensure that all appointments are made on the basis of merit against the specification prepared for each appointment. In doing so, the Board will take account of the targets set out in the FCA's Listing Rules, which are set out below.

The Board has resolved that the Company's year-end date is the most appropriate date for disclosure purposes. In addition to the information contained below, of the five Directors at 31 December 2025, one is based in Singapore, two are based in Jersey and two are based in the UK.

Notes:

1. The Company is externally managed and does not have any executive staff. Specifically, it does not have either a CEO or CFO. The Board considers that the roles of Chairman of the Board, Senior Independent Director, and the chairs of the Audit Committee, Management Engagement Committee and Nomination and Remuneration Committee are Senior Board Positions.

As shown in the above table, the Company has not met the target set out in LR 6.6.6R (9)(a)(iii) that at least one Director is from a minority ethnic background. The Board will continue to take ethnic diversity into account for future appointments.

Corporate Governance

The Company is committed to high standards of corporate governance. The Board is accountable to the Company's shareholders for good governance and this statement describes how the Company has applied the principles identified in the UK Corporate Governance Code as published in January 2024 (the "UK Code"), which is available on the Financial Reporting Council's (the "FRC") website: frc.org.uk.

The Board has also considered the principles and provisions of the AIC Corporate Governance Code as published in August 2024 (the "AIC Code"). The AIC Code addresses the principles and provisions set out in the UK Code, as well as setting out additional provisions on issues that are of specific relevance to investment companies. The AIC Code is available on the AIC's website: theaic.co.uk. It includes an explanation of how the AIC Code adapts the principles and provisions set out in the UK Code to make them relevant for investment companies.

The Board considers that reporting against the principles and provisions of the AIC Code, which has been endorsed by the Financial Reporting Council ("FRC") and the Jersey Financial Services Commission ("JFSC"), provides more relevant information to shareholders.

The Board confirms that, during the year, the Company complied with the principles and provisions of the AIC Code and the relevant provisions of the UK Code, except as set out below.

The UK Code includes provisions relating to:

- interaction with the workforce (provisions 2, 5 and 6);

- the role and responsibility of the chief executive (provisions 9 and 14);

- previous experience of the chairman of a remuneration committee (provision 32); and

- executive directors' and workforce remuneration (provisions 33 and 36 to 41).

These positions are not repeated in the AIC Code and the Board considers that they are not relevant to the position of the Company, being an externally managed investment company. In particular, all of the Company's day-to-day management and administrative functions are outsourced to third parties. As a result, the Company has no executive directors, employees or internal operations. The Company has therefore not reported further in respect of these provisions.

Full details of the Company's compliance with the provisions of the AIC Code can be found on its website.

The Board is conscious of the updated provisions in the UK Code (provision 29) and the AIC Code (provision 34), which are effective for accounting periods beginning on or after 1 January 2026. These provisions relate to the reporting on the Board's monitoring and review of the Company's internal control framework and a declaration by the Board of the effectiveness of the Company's material controls at the balance sheet date. The Board has established a process for identifying and monitoring the Company's material controls and it is the Board's intention that the Company will comply with these updated provisions during the current financial year and include the required disclosures in the Annual Report for the year ended 31 December 2026.

Going Concern

The Directors have undertaken a robust review of the Company's viability (refer to statement above) and ability to continue as a going concern. The Company's assets consist primarily of a diverse portfolio of listed equity shares which in most circumstances are realisable within a very short timescale.

The Directors have reviewed forecasts detailing revenue and liabilities, have set limits for borrowing and reviewed compliance with banking covenants, including the headroom available.

Since the year end, the Company has renewed its £50 million revolving credit facility on an evergreen basis with Bank of Nova Scotia, London Branch, its existing lender.

Having taken these factors into account, the Directors believe that the Company has adequate financial resources to continue in operational existence for the foreseeable future and at least 12 months from the date of this Annual Report. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements.

Accountability and Audit

Each Director confirms that, so far as he or she is aware, there is no relevant audit information of which the Company's Auditor is unaware, and he or she has taken all the steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's Auditor is aware of that information.

Independent Auditor

A resolution to re-appoint KPMG Audit Limited (previously KPMG Channel Islands Limited) as the Company's Auditor and to authorise the Directors to fix the Auditor's remuneration will be put to shareholders at the AGM to be held on 12 May 2026.

Internal Controls and Risk Management

The Board of Directors is ultimately responsible for the Company's system of internal control and for maintaining its effectiveness. Day-to-day measures have been delegated to the Investment Manager and Company Secretary with an effective process of reporting to the Board for supervision and control.

The Directors confirm that there is an ongoing process for identifying, evaluating and managing the principal risks faced by the Company. This process has been in place for the full year under review and up to the date of approval of the financial statements, is regularly reviewed by the Board and accords with the FRC Guidance on internal controls.

The design, implementation and maintenance of controls and procedures to safeguard the assets of the Company and to manage its affairs properly extends to financial, operational and compliance controls and risk management. The Board has prepared its own risk register which identifies potential risks as summarised above. The Board considers the potential cause and possible impact of these risks as well as reviewing the controls in place to mitigate these potential risks. A risk is rated by having a likelihood and an impact rating and the residual risk is plotted on a "heat map" and is reviewed regularly.

The Board has reviewed the effectiveness of the system of internal control and, in particular, it has reviewed the process for identifying and evaluating the principal risks faced by the Company and the policies and procedures by which these risks are managed.

The Directors have delegated the investment management of the Company's assets to the Investment Manager within overall guidelines. This embraces implementation of the system of internal control, including financial, operational and compliance controls and risk management. Internal control systems are monitored and supported by the Investment Manager's internal audit function which undertakes periodic examination of business processes, including compliance with the terms of the management agreement, and ensures that recommendations to improve controls are implemented.

Risks are identified and documented through a risk management framework by each function within the Investment Manager's activities. Risk is considered in the context of the FRC Guidance and includes financial, regulatory, market, operational and reputational risk. This helps the internal audit risk assessment model identify those functions for review. Any relevant weaknesses identified are reported to the Board and timetables are agreed for implementing improvements to systems. The implementation of any remedial action required is monitored and feedback provided to the Board.

The key components designed to provide effective internal control for the year under review and up to the date of this Report are outlined below:

- the Investment Manager prepares forecasts and management accounts which allow the Board to assess the Company's activities and review its investment performance;

- the Board and Investment Manager have agreed clearly defined investment criteria;

- there are specified levels of authority and exposure limits. Reports on these issues, including performance statistics and investment valuations, are regularly submitted to the Board. The Investment Manager's investment process and financial analysis of the companies concerned include detailed appraisal and due diligence;

- written agreements are in place which specifically define the roles and responsibilities of the Investment Manager and other third-party service providers and the Audit Committee reviews, where relevant, ISAE3402 Reports, a global assurance standard for reporting on internal controls for service organisations. The Board has reviewed the exceptions arising from abrdn Investments Limited's ISAE3402 Report for the year to 30 September 2025, none of which were judged to be of direct relevance to the Company;

- the Board has considered the need for an internal audit function but, because of the compliance and internal control systems in place within the Aberdeen Group, has decided to place reliance on the Aberdeen Group's systems and internal audit procedures; and

- twice a year, at its meetings, the Audit Committee carries out an assessment of internal controls by considering documentation from the Investment Manager, including its internal audit and compliance functions and taking account of events since the relevant period end.

In addition, the Investment Manager ensures that clearly documented contractual arrangements exist in respect of any activities that have been delegated by it to external professional organisations.

Representatives from the Investment Manager's internal audit department report six monthly to the Audit Committee and have direct access to the Directors at any time.

The internal control systems are designed to meet the Company's particular needs and the risks to which it is exposed. Accordingly, the internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and, by their nature, can provide reasonable but not absolute assurance against material misstatement or loss.

Relations with Shareholders

The Directors place a great deal of importance on communication with shareholders. The Chairman welcomes feedback from all shareholders and meets periodically with the largest shareholders to discuss the Company. The Annual Report and financial statements are available on the Company's website and are widely distributed to other parties who have an interest in the Company's performance. Shareholders and investors may obtain up to date information on the Company through its website.

The Notice of the AGM included within the Annual Report and financial statements is ordinarily sent to shareholders at least 20 working days in advance of the meeting. All shareholders have the opportunity to put questions to the Board or Investment Manager, either formally at the Company's AGM or informally following the meeting.

The Company Secretary is available to answer general shareholder queries at any time throughout the year. The Directors are keen to encourage dialogue with shareholders and the Chairman welcomes direct contact from shareholders.

The Board's policy is to communicate directly with shareholders and their representative bodies without the involvement of the management group in situations where direct communication is required and usually a representative from the Board meets with major shareholders on an annual basis in order to gauge their views.

Alternative Investment Fund Managers Directive ("AIFMD")

In accordance with the Alternative Investment Funds (Jersey) Regulations 2012, the Jersey Financial Services Commission ("JFSC") has granted its permission for the Company to be marketed within any EU Member State or other EU State to which the AIFMD applies. The Company's registration certificate with the JFSC mandates that the Company "must comply with the applicable sections of the Codes of Practice for Alternative Investment Funds and AIF Services Business".

abrdn Asia Limited, as the Company's non-EEA alternative investment fund manager, has notified the UK Financial Conduct Authority in accordance with the requirements of the UK National Private Placement Regime of its intention to market the Company (as a non-EEA AIF under the AIFMD) in the UK.

In addition, in accordance with Article 23 of the AIFMD and Rule 3.2.2 of the Financial Conduct Authority ("FCA") Fund Sourcebook, abrdn Asia Limited is required to make available certain disclosures for potential investors in the Company. These disclosures, in the form of a Pre-Investment Disclosure Document ("PIDD"), are available on the Company's website.

Annual General Meeting ("AGM")

The AGM will be held at 12 noon on 12 May 2026 at 18 Bishops Square, London E1 6EG.

Ian Cadby

Chairman

17 March 2026

28 Esplanade

St Helier

Jersey JE2 3QA

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law they are required to prepare the financial statements in accordance with International Financial Reporting Standards as issued by the IASB and applicable law.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its profit or loss for that period. In preparing these financial statements, the Directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable, relevant and reliable;

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

- use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations or have no realistic alternative but to do so.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply with the Companies (Jersey) Law 1991. They are responsible for such internal controls as they determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors confirm that, so far as they are aware, there is no relevant audit information of which the Company's Auditor is unaware, and that each Director has taken all the steps he or she ought to have taken as a Director to make himself or herself aware of any relevant audit information and to establish that the Company's Auditor is aware of that information.

Responsibility Statement of the Directors in Respect of the Annual Financial Report

The Directors confirm that to the best of their knowledge:

- the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

- the Strategic Report and Directors' Report include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

The Directors consider the Annual Report and financial statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

Ian Cadby

Chairman

17 March 2026

28 Esplanade

St Helier

Jersey JE2 3QA

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website, but not the content of any information included on the website that has been prepared or issued by third parties. Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

STATE MENT OF COMPREHENSIVE INCOME

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025