Annual Financial Report

ABRDN ASIAN INCOME FUND LIMITED

Legal Entity Identifier (LEI): 549300U76MLZF5F8MN87

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

HIGHLIGHTS

· The share price total return for the year ended 31 December 2024 was 12.0% and the NAV total return was 10.8%.

· Dividend yield of 6.6%.

SUMMARY OF RESULTS

Financial Highlights

Capital Performance to 31 December 2024

Long Term Total Return Performance to 31 December 2024

CHAIRMAN'S STATEMENT

Highlights

● Dividend yield of 6.6% (total dividend for the year of 14.43p, an increase of 22.8%).

● Share price total return of 12.0%.

● Ongoing charges decreased from 1.0% to 0.85%.

● Enhanced annual dividend policy introduced from the start of the 2025 financial year (notional annual dividend yield of 7.1%).

● Continuation vote to be held every three years.

Performance

It is pleasing to report a strong year of returns for shareholders. The share price total return was 12.0% and the net asset value ("NAV") total return was 10.8%. These returns compare to a total return of 12.6% from the MSCI AC Asia Pacific ex Japan Index (the "Index"). The Company continues to have a strong longer term record, outperforming the Index for both NAV and share price total return over three and five years.

It is also pleasing to report an increase of 22.8% in the dividend for the year, providing a yield of 6.6%, and a significant reduction in our ongoing charges ratio following a renegotiation of the management fee at the beginning of the year.

The discount at the year end was 12.5%, although at the time of writing it has reduced to around 10.5% following the introduction of the new enhanced dividend policy outlined below.

Throughout the year, our Investment Manager's focus on quality high-yielding stocks in Asia provided a good buffer against the impact of the various macroeconomic and political headwinds. A more detailed summary of market developments and performance for the year can be found in the Investment Manager's Review.

Revenue and Dividends

Four quarterly dividends were declared in respect of the year. The first three dividends were paid at a rate of 2.55p with a fourth interim dividend of 6.78p, resulting in total dividends for the year of 14.43p per share. This represents a 22.8% increase (compared to last year's dividends of 11.75p per share), providing a yield of 6.6% based on the year end share price.

The Board is pleased to note that this represents the sixteenth 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.

Revenue earnings per share for the year were 11.35p (2023: 11.97p). Income generation from the portfolio continues to be strong, with the Company benefitting from our Investment Manager's focus on high-yielding companies with strong fundamentals.

Ongoing Charges

As set out in detail in the 2023 Annual Report, with effect from 1 January 2024, the Company has benefited from a negotiated reduction in the management fee, with the annual fee now calculated on the lower of market capitalisation and net assets, at 0.75% up to £300 million and 0.60% over £300 million. It is pleasing to note that this has contributed to a reduction in the ongoing charges ratio, which was 0.85% for the year compared to 1.0% in 2023, a reduction of 15%.

Enhanced Dividend Policy and Introduction of Continuation Vote

The Board has consistently prioritised delivering meaningful dividends to shareholders alongside capital growth in the Asian region, and we recognise investors' continued appetite for yield in the current interest rate environment. Accordingly, since the year end we have announced that the Company's dividend will in the future be set at 1.5625% per quarter of the NAV, equating to approximately 6.25% of NAV per annum. The dividend will be 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).

Based on the Company's NAV as at 31 December 2024 and closing year end share price, this enhanced dividend policy would equate to a notional annual dividend yield of 7.1% based on share price. This approach ensures a consistent and attractive income stream for shareholders while broadening the appeal of the Company's shares and, over time, aiming to narrow the discount.

The first dividend payment to be made under the enhanced policy will be in May 2025, for the quarter ended 31 March 2025.

We believe that this measure will enhance shareholder returns and make the Company's shares more attractive to a wider range of investors. Importantly, there will be no change to the investment process nor to the Company's strategy as a result of the new policy. The Investment Manager will continue to seek quality, cash-generative businesses with strong management teams, at sensible valuations, that have the potential to deliver reliable income and capital growth for our investors.

The enhanced dividend policy reflects the Board's confidence in the long term robust opportunities in Asian markets, where dividend yields and growth have outpaced those of Europe and the US. With over 50% of total returns in Asian equities now driven by dividends, and with companies in the region demonstrating stronger balance sheets and increasing free cash flow coverage for dividends, the potential for rising payout ratios is compelling.

The new policy means that dividends paid will reflect the Company's net assets at each quarter end. Dividends will therefore be subject to market and performance fluctuations and will vary from quarter to quarter, in line with underlying earnings, currency movements and changes in the portfolio value. As is currently the case, in years when the net revenues fall below the level required for a fully covered dividend, dividends will be funded from a combination of revenue and capital reserves thus using one of the key benefits of the investment company structure.

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 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.

The Board believes that these actions, alongside the strong investment performance of the Company and reduced charges associated with the recent switch to a market cap- based management fee, should create a positive outlook for shareholder returns.

Share Capital Management

The Company bought back £36 million worth of shares during the year to be held in treasury, representing 10.1% of the shares in issue at the start of the period, at an average discount of 12.4% and providing an estimated enhancement of 1.2% to the NAV per share. Subsequent to the year end the Company has bought back a further £8.7 million worth of shares.

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, £32.4 million of which was drawn down, resulting in gearing (net of cash) of 7.2% (2023: 7.5%).

The loan facility matured in February and has been replaced with a new one 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 10:30am on 8 May 2025 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 tea and coffee. 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.

Investment Management Team

We are pleased to announce that Isaac Thong is to be appointed lead manager of the Company working alongside Eric Chan. Isaac will be joining Aberdeen's Asia Pacific Equities team as Senior Investment Director, based in Singapore, and will be responsible for the day-to-day portfolio management of the Company. He will also lead the Asian Income portfolio construction group within Aberdeen which includes responsibility for the Company's portfolio.

Isaac replaces Yoojeong Oh who is leaving Aberdeen to pursue other interests. The Board is extremely grateful to Yoojeong for her careful stewardship of the Company over the last decade and as we look forward to celebrating our 20th anniversary later this year.

With over 15 years' experience in the financial services industry and over a decade of experience investing in Asia equities, Isaac brings with him a wealth of knowledge and expertise that will enable the investment team to continue finding companies that will deliver sustainable growth, consistent income and attractive returns for our shareholders.

Board Composition

During the year, the Board was pleased to announce the appointment of Jane Routledge as an independent non- executive Director of the Company, with effect from 8 May 2024. Jane has significant marketing experience with a long career in the investment management sector, and has already provided significant benefit to the Board.

As previously announced, Krystyna Nowak, who was appointed as a Director in May 2015, will retire at the AGM on 8 May 2025. On behalf of the Board I would like to thank Krystyna for her significant contribution to the Company over this period. We will miss her wise counsel.

My own appointment to the Board was on 11 May 2016. Given the recent introduction of the enhanced dividend policy and the changes to the management team, the other Directors have agreed that I will continue as Chairman until the AGM in 2026. This will help oversee the implementation of these changes which are important developments for the Company and it is the view of all the Directors that it is in shareholders' interests for continuity in the Board at this time. It is the Board's intention that Jane Routledge will succeed me as Chair upon my retirement.

It is the current intention of the Board to appoint a new independent non-executive Director later this year.

Change of Name of the Company

In order to align the Company's name with the name of the Investment Manager's business, which has recently changed from abrdn plc to Aberdeen Group plc, the Board is proposing, with effect from 1 June 2025, to change the Company's name to Aberdeen Asian Income Fund Limited. A resolution to this effect will be proposed at the AGM.

Outlook

Trade tariffs imposed by the new US Administration create an uncertain outlook for Asia in 2025. Furthermore, US deregulation and tax cuts could strengthen the US Dollar, which is unfavourable for Asia. On the other hand, attractive valuations in Asia offer the potential for upside surprises underpinned by structural tailwinds. As a region, Asia offers exciting investment opportunities in innovation, globalisation and new consumption, and it is also home to some of the highest-quality and most dynamic companies globally.

Our Investment Manager is confident of leveraging on the immense potential of Asia by investing in high-quality companies with strong balance sheets and consistent earnings growth that are committed to delivering shareholder returns through dividends and buybacks. The Board believes that a strategic focus on quality is key to delivering sustainable growth and attractive returns for our shareholders and, taken together with the new enhanced dividend policy, we are excited about the future prospects for your company.

Ian Cadby

Chairman

25 March 2025

INVESTMENT MANAGER'S REVIEW

1. How did abrdn Asian Income Fund perform in 2024?

We are pleased to report strong returns for the year, with a share price total return of 12.0% and a net asset value ("NAV") total return of 10.8%. These returns compare with a total return of 12.6% from the MSCI AC Asia Pacific ex Japan Index (the "Index"). We are also pleased to report a 22.8% increase in the total dividend for 2024. This marks the sixteenth consecutive year of annual dividend increases. The dividend yield at the year end was 6.6%, around double that of the Index.

The Company continues to have a good longer-term performance record, outperforming the Index over three and five years.

Throughout 2024, geopolitical events, including tariff risk from Donald Trump's return as US President, and US interest rate changes, induced volatility, but our focus on quality stocks in Asia provided stability and we took advantage of growth opportunities during better market phases.

The US Federal Reserve reduced interest rates three times during the year. Some Asian central banks followed suit, creating an environment conducive to investing in high-yielding equities. Singapore, which is one of the largest markets in the portfolio, was among the best performers, driven by solid earnings from local banks.

Asia was among the beneficiaries of buoyed investor optimism around artificial intelligence and related applications given that the region lies at the heart of various technology supply chains. The Taiwanese market, which has a heavy technology tilt and is the largest country weighting in the portfolio, was the top performer in the region.

China and India both posted gains that beat the regional index. China's performance was thanks to monetary and fiscal stimulus measures which signalled a clear shift towards growth and resulted in a late-year rally. The key event in India was Prime Minister Narendra Modi's election victory earlier in the year, but the market lost some momentum towards the year end due to concerns over slowing domestic growth and as China's stimulus measures led to a rotation out of India.

Elsewhere in the region, there was political turmoil in South Korea with the short-lived imposition of martial law which led to significant market underperformance, making it the worst performing country in the region over the year.

2. What's going on in China?

China continues to demand investor focus during a prolonged period of volatility and uncertainty. 2024 was a case of "a weak economy but strong markets" for the country. Weak demand, a prolonged property downturn, and softer investor sentiment meant that consumption has been slow to recover. However, in September, China introduced several stimulus measures, sparking a turnaround in sentiment and a market rally.

Looking ahead to 2025, the government is expected to continue its supportive policies. More fiscal stimulus is anticipated during the upcoming Two Sessions meeting in March, where the country's leaders will gather to shape domestic, economic and social goals for the year ahead, including measures to respond to future tariffs on Chinese imports to the US. If there is no major stimulus, we expect a gradual earnings recovery as mainland companies benefit from the existing loose monetary and fiscal policies.

As for our positioning in China, the portfolio has long held a smaller weighting to China versus the Index. This is because the market does not yet prioritise dividends and shareholder return, as much as higher yielding markets in Asia, such as Australia and Singapore. Nonetheless, we regard China as a key part of our strategy, with investments in companies that offer growth potential and strong cash flow generation, and we maintain an active pipeline of good quality stocks with good cash flows so that we can act when dividend policies are put in place.

A good example is e-commerce group Tencent, which we first bought in 2022 after it formalised its dividend policy, linking payouts to free cash flow generation. This move made Tencent an attractive investment, enhancing the portfolio's overall yield and growth strategy. Another example is Midea Group, a leading home appliance company with strong free cash flow generation and a long-running dividend policy. These investments highlight our approach to finding quality businesses in China that can provide both growth and income.

3. How will Trump 2.0 and US rates affect the Company?

The Trump presidency is likely to impact the US interest rate outlook as, whilst current rate expectations are low, the speed and extent of any changes remain uncertain. This uncertainty can influence US inflation, and the likelihood of interest rate increases or cuts throughout the year. Despite this volatility, the Company has historically performed well in such environments, delivering good returns even in the face of fluctuating interest rates, given our investment process focuses on quality businesses that can perform well across business cycles.

President Trump's rapid pace of executive actions, especially on trade, has led to an updating of our house views. We now see the US weighted average tariff rate going higher, to 9.1%. We assume a reciprocal tariff to be implemented, albeit with various carve-outs; higher blanket tariffs on China; and more sector-specific tariffs, including on the EU, Canada and Mexico. Specifically, our base case 'Trump 2.0' scenario now includes a global reciprocal tariff, likely to be introduced when the current trade review is concluded in April. US-China tariffs will move meaningfully higher. The additional 20% tariff already applied is likely to be permanent, because China may struggle to deliver initiatives to assuage the administration's fentanyl concerns. We are incorporating another 10% increase in tariffs on China, owing to a mix of reasons: fentanyl-related concerns; the bilateral deficit; and broader economic decoupling.

Given the above, we would note that the Company is invested in companies that generally are market leaders that should be able to share the cost increase with the supply chain and consumers. Some of them might even be relative winners as they will be well placed with a more globally flexible supply chain and more efficient operations.

In the portfolio, for instance, we hold SITC, a Hong Kong- listed intra-Asia focused shipping company. The trade war uncertainty has worked in its favour in recent years, and it has paid bumper dividends. The company has been very disciplined about returning excess cash to shareholders as special dividends when the freight cycle works in its favour.

4. How are we investing in the future of AI?

The Company is actively investing in the future of Artificial Intelligence ("AI") by identifying companies that are well- positioned to benefit from advancements in this field. We see real winners in the Asian technology hardware and semiconductor supply chain companies.

The largest holding in the portfolio is Taiwan Semiconductor Manufacturing Company("TSMC"), a global leader in producing semiconductors that are key building blocks to drive and support AI use across end uses. Through its sizeable production moat built up over several decades, TSMC has a market leading share globally with strategic customer relationships. The strong end-market demand and the barriers to entry from the sizeable capital requirements to replicate its production eco- system has enabled TSMC to generate strong free cash flows that support a growing dividend per share to shareholders. The dividend yield is low at below 2%, but this is driven by the share price, which has increased threefold in the past five years. Shareholders in TSMC have enjoyed good capital and dividend growth.

At the other end of the market capitalisation spectrum, the portfolio also holds Sunonwealth Electric Machine, a Taiwanese company that makes cooling fans for data centres. It supplies to customers in industries such as IT, automotive electronics and network communication. Sunonwealth is recognised as a niche player and a preferred partner for customised cooling solutions, which strengthens its market position. Moreover, it has developed the first-ever MagLev motor fan, the world's smallest and thinnest magnetic levitation motor fan, showcasing its innovative capabilities. As AI technology becomes more complex, the need for advanced cooling solutions grows, making Sunonwealth an essential part of the AI supply chain. Additionally, Sunonwealth's strong balance sheet and cash flows support a healthy dividend payout and attractive yield.

These investments demonstrate our strategy of finding quality businesses of all sizes that are exposed to growth opportunities in AI, while also contributing to the Company's income objectives.

5. Where are we finding dividends?

We are finding dividends in various markets across Asia, across a wide variety of countries and sectors that offer attractive yields. Taiwan, Singapore, and Australia are the top three yielding countries within the region and are heavily represented in the portfolio. We have also been able to invest at attractive levels during market downturns, that offer income and growth.

In Singapore, we hold DBS, a bank with operations across Southeast Asia that supports earnings growth and offers close to a 5% dividend yield. The bank's commitment to paying dividends highlights its robust financial health and ability to generate consistent cash flow. This focus on dividends is particularly appealing to income-focused investors seeking stable returns. The country's strong regulatory environment fosters investor confidence and supports the bank's growth and income potential. Overall, DBS's strategic expansion, strong financial health, and commitment to dividends make it a compelling investment choice in the Asia region. Meanwhile, we are also invested in CapitaLand India Trust, which is listed in Singapore but derives all its revenue from rental income in India. This provides access to the high-growth Indian market while offering a 6% dividend yield.

Elsewhere in China, we have invested in PICC Property & Casualty, a leading property and casualty insurer in the country. One of three mainland non-life insurance groups which dominate the market, we see PICC strengthening its competitive edge through economies of scale, superior risk pricing ability and solid capital position over the long term. The stock is relatively defensive in a weak market environment, providing stability for investors. Management has also indicated a focus on providing stable dividend payments, making it an attractive option for income-focused investors. Overall, PICC's strong market position, defensive nature, and commitment to dividends make it a valuable investment in the Chinese insurance sector.

6. How do we pick stocks for the portfolio?

We look for companies that are simple to understand, operate in growing industries, and have trustworthy management with strong balance sheets. This means that we conduct thorough due diligence and prioritise high-quality, dividend-paying stocks.

In Asia, on the ground presence gives us a key competitive edge. Our team of over 40 in-house analysts and fund managers across the region conducts in-depth research and meets companies regularly. This local presence and extensive network provide valuable insights and help identify quality companies that may not be widely covered, especially small and mid-cap companies.

When evaluating companies, we invest in those which meet three key criteria at an attractive price and support the consistent delivery of dividend. We choose companies that have a strong business model with a sustainable competitive advantage in an industry that is growing.

They would also have financial strength with good margins, return on capital and a robust balance sheet; management with pedigree and a strong track record of execution; and Environmental, Social and Governance ("ESG") factors. We view all these as key to sustainable dividends with reliable earnings.

Regarding ESG, we believe that a comprehensive assessment of ESG factors, combined with constructive engagement with companies, leads to better outcomes for our clients. ESG factors are financially material, and impact corporate performance.

Understanding ESG risks and opportunities alongside other financial metrics allows us to make better investment decisions. Engaging with companies helps foster better practices, protecting and enhancing the value of our clients' investments.

7. How will Asia fare in 2025?

We are cautiously optimistic about the outlook for Asia. While macroeconomic and geopolitical uncertainties persist, the region's prospects are underpinned by solid economic fundamentals and structural growth trends. Asia's GDP growth is forecast to remain above 5% on average, making it the largest contributor to global GDP for many more years to come. Asia also boasts a demographic dividend. Many countries are seeing increases in their working-age populations, leading to higher productivity and economic growth. This ensures sustained demand for products and services from quality companies.

The focus on dividends in the region is also growing. Policy is another tailwind. Governments across the region are increasingly focusing on shareholder returns and implementing policies that support dividend growth, such as the Value Up programme in South Korea. This is coupled with a strong emphasis on improving corporate governance, which ensures that companies are managed more effectively and transparently.

All the above factors contribute to a more stable and attractive investment environment, making dividend stocks a compelling choice for investors seeking reliable income and long-term growth opportunities.

Importantly, as income investors in Asia, we don't have to sacrifice growth. High-quality growth companies such as TSMC, Tencent, and Power Gridare all paying growing dividends to their shareholders, with the portfolio's highest sector weighting in technology. As mentioned earlier, we are also finding dividend opportunities in growing sectors such as green energy (Power Grid), AI (Sunonwealth and Accton Technology) and consumer products, including retail banking (DBS).

Finally, we believe that our strategy of investing in high-quality, dividend-paying companies is likely to continue generating positive results, even in a volatile market environment. The portfolio is positioned well to capitalise on the income and growth opportunities in Asia, with its diversified portfolio and long-term investment approach providing resilience against market volatility and helping capture growth during strong market phases.

abrdn Asia Limited

25 March 2025

OVERVIEW OF STRATEGY

Launched in December 2005, abrdn 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.

Tax Residency

With effect from 1 January 2022 the Company migrated its tax residency to the UK from Jersey and elected to join the UK's investment trust regime.

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.

Duration and Continuation Vote

The Company does not have a fixed life. However, as explained in the Chairman's Statement, since the year end the Board has 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 Indices

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.

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 "Board Composition" 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.

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 Board has renewed the £50 million revolving credit facility that existed during the year. The loan, with the Bank of Nova Scotia, London Branch, has been renewed for one year, to February 2026. Under the terms of the revolving credit 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 net asset value and benefit all shareholders. 16.9 million Ordinary shares were bought back during the year to be held in treasury, representing 10.1% of the shares in issue at the start of the year. The average discount to NAV of the shares bought back was 12.4% and the buybacks provided an estimated enhancement of 1.2% to the NAV per share.

Corporate Broker

Following a review of its corporate broking arrangements during the year, the Board announced the appointment of Peel Hunt LLP to act as the Company's sole corporate broker. The Board considers that it is in shareholders' interests for the Company to have a pro-active Broker to manage any imbalance of supply and demand in the Company's shares and to work closely with the Investment Manager in respect of marketing activities and arranging meetings with the Company's larger shareholders.

PR Agent

Recognising the importance of communicating with shareholders and potential shareholders as a means to improving demand for the Company's shares, during the year the Board appointed an external PR agent to work alongside the Investment Manager in seeking to raise the profile of the Company. The Board considers that it is in shareholders' interests for the Company to engage external parties to help promote the Company to investors with the aim of this helping to narrow the discount at which the Company's shares trade.

Board Composition

During the year, and in accordance with its succession plans, the Board was pleased to announce the appointment of Jane Routledge as an independent non-executive Director of the Company, with effect from 8 May 2024. Ms Routledge has significant marketing experience which has already brought benefit to the Board's deliberations. Ms Routledge  will stand for election at the forthcoming AGM.

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:

Risk Management

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 the impacts of the conflicts in Ukraine and the Middle East, as well as continuing tensions between the US and China. The Board is also conscious of the impact of higher-than-forecast inflation in the UK and its potential impact on interest rate expectations, and also the potential impact on economic growth globally of recently announced US trade tariffs.

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 abrdn Group on behalf of a number of investment companies under its management. The Company also supports the abrdn 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 abrdn Group.

The Company, through the Investment Manager, has also commissioned independent paid-for research which has been undertaken by Edison Investment Research Limited and a copy of the latest research is available for download from the Company's website.

In addition, during the year the Board 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.

Global Greenhouse Gas Emissions

Under Listing Rule 11.4.22(R), the Company, as a closed ended investment company, is exempt from complying with the Task Force on Climate-related Financial Disclosures ("TCFD").

Socially Responsible Investment Policy

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.

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 £50 million revolving credit facility that has been renewed since the year end and which matures in February 2026; and

● the announcement by the Board since the year end of the introduction of a continuation vote, which will first be tabled at the Company's Annual General Meeting 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

25 March 2025

28 Esplanade St Helier

Jersey JE2 3QA

DIVIDENDS AND TEN YEAR FINANCIAL RECORD

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 2024.

Results and Dividends

The financial statements for the year ended 31 December 2024 are contained below.  The Company's dividend policy is to pay interim dividends on a quarterly basis and for the year to 31 December 2024 dividends were paid on 24 May, 23 August and 22 November 2024 and 21 February 2025.

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 2024, there were 150,306,492 fully paid Ordinary shares of no par value (2023 - 167,178,707) Ordinary shares in issue. At the year end there were 44,626,897 Ordinary shares held in treasury (2023 - 27,754,682).

During the year 16,872,215 Ordinary shares were purchased in the market for treasury (2023 - 2,653,694) and no Ordinary shares were issued or sold from treasury.

Subsequent to the year end 3,927,318 Ordinary shares have been purchased in the market at a discount for treasury.

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 facility has been renewed for a year, to February 2026. Under the terms of the revolving credit 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 abrdn 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 abrdn 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 abrdn 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 2024.

Since the year end, 1607 Capital Partners has notified the Company of a reduced holding of 7,211,181 Ordinary shares (4.9%). There have been no other changes notified to the Company since the year end.

Directors

The Board currently consists of six non-executive Directors, Robert Kirkby, Mark Florance, Ian Cadby, Nicky McCabe, Jane Routledge and Krystyna Nowak. Jane Routledge was appointed on 8 May 2024. The other Directors each held office throughout the year.

Governance

The AIC's Code of Corporate Governance recommends that all Directors should be subject to annual re-election by shareholders. Accordingly, all members of the Board, other than Krystyna Nowak, 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, Krystyna Nowak 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.

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 six Directors at 31 December 2024, one is based in Singapore, two are based in Jersey and three 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 short listed and interviewed ethnically diverse candidates as part of its most recent recruitment process and will continue to take ethnic diversity into account for future appointments. At the year end the Company also did not meet the target set out in LR 6.6.6R (9)(a)(ii) that at least one Senior Board Position is held by a woman. However, since the year end, Ms Routledge has been appointed as Chair of the Nomination and Remuneration Committee and the Company now meets the Listing Rule target that at least one Senior Board Position is held by a woman.

Policy on Tenure

In normal circumstances, it is the Board's expectation that Directors will not serve beyond the Annual General Meeting 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 Annual General Meeting 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.

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 July 2018 (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 Code of Corporate Governance as published in February 2019 (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 the Company. The AIC Code is available on the AIC's website: theaic.co.uk.

The Board considers that reporting against the principles and provisions of the AIC Code, which has been endorsed by the FRC, 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' remuneration (provisions 33 and 36 to 40).

The Board considers that these provisions 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 AIC Code of Corporate Governance can be found on its website.

Directors attended the following scheduled Board and Committee meetings during the year ended 31 December 2024 (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 Appointed a Director on 8 May 2024.

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 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.

The Board is conscious of the FRC's updates to the UK Corporate Governance Code, and the corresponding updates to the AIC Code, some of which will apply to the Company's financial year beginning on 1 January 2025. It is the Board's intention that the Company will comply with all relevant provisions of the new codes.

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.

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 abrdn 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 abrdn Group's anti-bribery and corruption policies are available on its website: abrdn.com.

Going Concern

The Directors have undertaken a robust review of the Company's viability 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 for one year with the Bank of Nova Scotia, London Branch, its existing lender. In the event that it is not possible to renew the loan in February 2026, the Board considers that there is sufficient portfolio liquidity to enable the loan to be repaid.

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

Shareholders approved the re-appointment of KPMG Channel Islands Limited as independent Auditor at the AGM held on 8 May 2024 and a resolution to re-appoint 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 8 May 2025.

Principal Risks and Internal Control

The Principal Risks and Uncertainties facing the Company are detailed in the Strategic Report. The Board of Directors is ultimately responsible for the Company's system of internal control and for reviewing its effectiveness.

Following the Financial Reporting Council's publication of "Guidance on Risk Management, Internal Controls and Related Financial and Business Reporting" (the "FRC Guidance"), 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.

The design, implementation and maintenance of controls and procedures to safeguard the assets of the Company and to manage its affairs properly extends to operational and compliance controls and risk management. The Board has prepared its own risk register which identifies potential risks as summarised in the Strategic Report. 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 for the year to 30 September 2024, 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 abrdn Group, has decided to place reliance on the abrdn 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 to external professional organisations. The Board meets periodically with representatives from the Custodian, BNP Paribas SA, London Branch, and receives control reports covering its activities.

Representatives from the Investment Manager's internal audit department report six monthly to the Audit Committee of the Company 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.

The UK Stewardship Code and Proxy Voting

Responsibility for actively monitoring the activities of portfolio companies has been delegated by the Board to the Investment Manager.

abrdn 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.

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 out 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 (either the Company Secretary or the Investment Manager) 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

The AGM will be held at 10:30 a.m. on 8 May 2025 at 18 Bishops Square, London E1 6EG.

Ian Cadby

Chairman

25 March 2025

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 includes 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

25 March 2025

28 Esplanade St Helier

Jersey JE2 3QA

STATE MENT OF COMPREHENSIVE INCOME

BALANCE SHEET

STATEMENT OF CHANGES IN EQUITY

CASH FLOW STATEMENT

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024