Half Yearly Report

19 September 2011

Origo Partners Plc

("Origo" or the "Group")

Interim Financial Report for the six months ended 30 June 2011

Highlights for the six months ended 30 June, 2011 ("the Period"):

- Total investments of more than US$49 million in new and existing portfolio companies

- Successful issue of US$60 million of convertible zero-dividend preferred shares in March 2011 to fund new identified value enhancing investment opportunities

- Profit before tax of US$19.4 million (30 June 2010: US$2.0 million)

- Revenues of US$1.3 million (30 June 2010: US$1.4 million)

- Operating loss of US$5.3 million (30 June 2010: US$1.0 million)

- Total administrative expenses of US$5.9 million (30 June 2010: US$1.7 million)

- Net asset value of US$225.1 million (31 December 2010: US$196.6 million, 30 June 2010: US$162.5 million)

- Net asset value per share of US$0.76 (31 December 2010: US$0.66)

- Ending cash position of US$51.9 million

Chief Executive's Statement

Following a successful US$60 million fund raising in March 2011, we continued to deliver on our strategy of identifying and investing in companies active in our key target sectors of natural resources, agriculture and clean-technologies.

In addition to providing us with new funds, the issue of new convertible preference shares in March enabled us to diversify our sources of funding whilst minimising the level of dilution of existing ordinary shareholders' interests. The convertible zero-dividend preferred shares provide a protected return and the opportunity to participate in Origo's future growth.

We announced total investments of more than US$49 million in the Period across six existing and four new portfolio companies, reflecting the growing scale and strength of our business and our ability to deploy capital across our target sectors.

The successful listing of Kincora Copper Ltd ("Kincora") on the TSX Venture Exchange post the end of the Period and the partial sale of our beneficial interest in Beijing Rising Information Technology Ltd for US$2.5 million in February 2011 continue our growing track record of creating exit opportunities for our investments.

Origo also continued to develop and launch new, innovative fund products during the Period and, as announced separately today, we have launched marketing for China Cleantech Partners, L.P. ("CCP").

CCP will invest in privately held Chinese cleantech companies either directly, or indirectly as a limited partner through the Origo Xinxiang Renewable Energy Fund, L.P, a RMB 500 million (US$77.5 million) denominated limited partnership established by Origo and the Municipal Government of Xinxiang, with a RMB 125 million commitment from the Xinxiang Investment Group. We are delighted to have successfully raised capital from the Chinese government following a long and productive due diligence process and, subject to domestic market conditions, we expect to grow significantly our renminbi fund management business in the future.

We also recently announced the formation of the MSE (Mongolian Stock Exchange) Liquidity Fund. This new fund will invest in Mongolia and provide investors with direct exposure through one product to the Mongolian Stock Exchange via investments in primarily the top ten traded companies listed on the exchange, high interest savings deposit rates on offer at Mongolian commercial banks and 100 per cent exposure to the Mongolian Tugrik.

We expect that management of third party investment vehicles will be an important part of our business model going forward. Beyond the opportunity to generate fee based income, fund management will allow us to grow our investor base, recruit and retain talent, expand into alternative asset classes, and secure investment opportunities which would not otherwise be accessible for the Group.

Portfolio review

In February 2011, Origo entered into an agreement to acquire a 49 per cent stake in Shanghai Evtech New Energy TechnologyLtd ("Evtech") for an initial investment of approximately US$550,000, subject to the achievement of certain operational and financial milestones. EVtech is in the early stage of commercialising a number of battery management systems and vehicle control units for the electric vehicle market.

In March 2011, we acquired an equity stake of up to a maximum of 29 per cent on a fully diluted basis in China Rice Ltd ("China Rice") for US$13 million. China Rice is one of China's leading privately held rice processing and distribution groups with an annual production capacity of approximately 300,000 tonnes and a strong resource and procurement base in one of China's largest rice producing belts. Following significant increases in the price of rice in the first half of the year and expected continued inflationary pressure on this commodity throughout the second half of 2011 and beyond, we announced a further investment of US$10 million in China Rice in August 2011. China Rice will use the proceeds of the financing as procurement funding to lock in supplies of paddy-rice at favourable prices in preparation for the high season (November to March), which Origo expects will significantly boost the company's financial performance in 2012. We view the rice sector as highly attractive given domestic food price inflation, growing demand from increasingly discerning Chinese consumers and sector profitability.

Also in March and April 2011, Origo contributed US$9 million to a US$22 million convertible note offering by Unipower Battery Ltd ("Unipower") to enable Unipower to increase production capacity to meet growing demand for the large polymer batteries it produces. Once the expansion is complete, Unipower expects to be among China's largest providers of lithium-ion batteries for the domestic electrical vehicle market. Origo continues to see enormous potential in investments in lithium ion battery firms serving the Chinese electric vehicle sector. The opening up of a new market to supply power storage solutions for China's power grid infrastructure also provides further strong growth potential.

Capping a busy month, in March Origo acquired a 9.7 percent equity stake in Celadon Mining Ltd ("Celadon"), a Chinese focused coal mining and exploration company, for approximately £8 million (US$13.1 million). Celadon owns four Chinese coal properties with a total estimated resource base (according to Chinese classification) of 260 million tonnes of a mixture of high ranked coal, including PCI and meager coal. Celadon produced small amounts of coal in 2010 and has the potential to significantly expand production to over 1 million tonnes per annum over the next 3 years, funded by existing operational cash flow. The outlook for coking coal demand in China remains very positive and we continue to be bullish on the sector, although we recognise the inherent risks in coal operations and commodity price fluctuations.

In June 2011, Origo acquired a 20 per cent equity stake in Moly World Ltd ("Moly World"), owner of an advanced stage molybdenum exploration project in Mongolia, for US$20 million and was granted an offtake covering up to 20 per cent of all future production for the life of mine. On the basis of two independent assessments, Origo believes that the project has the potential to host a world class molybdenum resource, benefiting from high grade and near surface mineralization. Moly World will use the proceeds to fund further exploration in order to produce a JORC-compliant resource estimate by December 2011. As a late stage project we have a clear view of Moly World's significant development potential and our confidence is supported by the ongoing switch in Chinese demand from lower quality to higher quality steels which require increased levels of molybdenum.

After the end of the Period, and following an initial agreement in April 2011, TSX Venture Exchange listed Brazilian Diamonds Ltd acquired Origo's 25 per cent equity stake, the right to subscribe for a further 50 per cent of the issued share capital of Kincora Group Ltd and a US$500,000 loan extended to Kincora Group Ltd. On completion of the transaction, Origo held a 34.8 per cent interest in the enlarged listed entity, renamed Kincora Copper Ltd (KCC: CN), which in turn held a 75 per cent interest in the Bronze Fox copper-gold deposit in Mongolia. Bronze Fox is an advanced copper gold exploration project, located close to the Oyu Tolgoi mine and the Chinese border. In August 2011, Kincora announced that it had successfully acquired the remaining 25 per cent holding in the Bronze Fox deposit which it did not already own in return for Kincora shares equivalent to 20 per cent of its value. Post this transaction, Origo now holds a 28 per cent stake in Kincora. Kincora also recently announced positive exploration results significantly extending the potential zone of copper mineralization and underlining its potential.

Financial performance

The Group recorded a profit after tax of US$19.3 million in the Period, significantly higher than the US$2.0 million profit achieved in the corresponding period of 2010. This increase was driven by a rise in investment income to US$25.4 million, primarily as a result of significant positive movements in the fair value of our portfolio.

Revenues were broadly stable at US$1.3 million compared to US$1.4 million in the first half of 2010 although administrative costs rose to US$5.9 million, of which US$2.4 million is due to one-off, non-cash based charges in the form of the reversal of accrued interest loans extended to aportfolio company.

The Directors' estimate of the fair value of Origo's portfolio of investments rose to US$222.6 million compared to US$113.4 million at the end of the corresponding period of 2010 and US$163.0 million at 31 December 2010. A large part of this increase - US$49 million was due to investments completed during the course of the Period. We have however written up the value of a number of holdings, including Gobi Coal & Energy Ltd to US$65.8 million (31 December 2010: US$52.7 million); Celadon Mining Ltd to US$24.4 million (cost of US$13.1 million); and Kincora Group Ltd toUS$11.6 million (31 December 2010: US$2.9 million). The increases in the estimated value in these holdings were partly offset for a total of US$12.1 million write down in value, including a write down in the value of our positions in IRCA Holdings Ltd by US$7.4 million and in Rising Technology Corporation Ltd by US$4.3 million.

At the end of the Period the Group had cash and cash equivalents of US$51.9 million compared to US$47.4 million at 30 June 2010 and US$33.4 million at the end of 2010. The increase is mainly a result of US$57.3 million in net proceeds following the issuance of the convertible zero-dividend preference shares in March 2011 offset by US$49 million of new investments and operating cash-flow of (US$0.6 million) during the Period.

Net asset value rose from US$162.5 million as at 30 June 2010 to US$225.1 million at the end of the Period, representing a net asset value per share of US$0.76.

Strategy and outlook

Despite renewed concerns about the health of developed economies, we remain confidentthat the Chinese economy is increasingly resilient to external crises and that it will continue to experience sustainable economic growth over the medium-term.

Domestic Chinese demand is increasingly important to the country's GDP growth compared to export demand and although the Chinese Government is currently taking steps to slow the economy, investment in domestic infrastructure such as housing and water infrastructure remains strong.

As a result, we remain committed to our existing investment strategy and have also begun to seek greater exposure to consumer markets to enable us to benefit further from emerging trends in the Chinese economy, such as our investment in China Rice.

We believe there is the potential for a number of revaluation and capital market events in the second half of the year, most notably of Gobi Coal & Energy Ltd which is expected to enter production later in the year or early next year.

As a Group, we will continue to build our asset management business bylaunching third-party funds, in particular RMB-denominated vehicles, launched in partnership with various Chinese local governments. We are presently in the late stages of evaluating a number of regional and sector specific fund opportunities, and we expect to be in a position to announce at least one more such partnership before the end of the year.

Mongolia continues to provide significant opportunities as a still largely untapped source of resources to feed China's growth and development, therefore wewill continue to target new investments in the country utilising our growing team on the ground. The next year may prove to be transformational for Mongolia with the expected entry into production of Oyu Tolgoi, the potential privatisation of TavanTolgoi and significant reform of the country's stock market.

Recent events have shown the risks of investing in Chinese companies, in particular for those investors who do not have an on the ground presence. Whilst we can never completely mitigate all such risks, we are confident that our approach to investing, with a focus on rigorous duediligence combined with active ownership, provides us and our shareholders with a safe and profitable way of investing in privately held Chinese businesses. 

ENDS

Further information:

Interim Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2011

The accompanying notes form an integral part of these financial statements.

Interim Consolidated Statement of Financial Position

As at 30 June 2011

The accompanying notes form an integral part of these financial statements.

Interim Consolidated Statement of Cash Flows

For the six months ended 30 June 2011

* FVTPL refers to fair value through profit or loss

The accompanying notes form an integral part of these financial statements.

Interim Consolidated Statement of Changes in Equity

For the six months ended 30 June 2011

Attributable to equity holders of the parent

* CZDP refers to convertible zero dividend preference shares.

Attributable to equity holders of the parent

The accompanying notes form an integral part of these financial statements.

Notes to the Interim Condensed Consolidated Financial Statements

For the six months ended 30 June 2011

1 General information

Origo Partners Plc is a limited liability company incorporated and domiciled in the Isle of Man whose shares are publicly traded on the AIM market of the London Stock Exchange.

The Company and its subsidiaries are collectively referred to as the Group.

The principal activities of the Group are described in note 6.

These interim condensed consolidated financial statements have been approved and authorised for issue by the Company's board of directors on 16 September 2011.

2 Basis of preparation and significant accounting policies

2.1 Basis of preparation

These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting".

These interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2010.

2.2 Significant accounting policies

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2010, except for the adoption of new standards and interpretations as of 1 January 2011, noted below:

lAS 24 Related Party Transactions (Amendment)

The IASB has issued an amendment to lAS 24 that clarifies the definitions of a related party. The new definitions emphasize a symmetrical view of related party relationships as well as clarifying in which circumstances persons and key management personnel affect related party relationships of an entity. Secondly, the amendment introduces an exemption from the general related party disclosure requirements for transactions with a government and entities that are controlled, jointly controlled or significantly influenced by the same government as the reporting entity. The adoption of the amendment did not have material impact on the financial position or performance of the Group.

IAS 32 Financial Instruments: Presentation (Amendment)

The amendment alters the definition of a financial liability in lAS 32 to enable entities to classify rights issues and certain options or warrants as equity instruments. The amendment is applicable if the rights are given pro rata to all of the existing owners of the same class of an entity's non-derivative equity instruments, to acquire a fixed number of the entity's own equity instruments for a fixed amount in any currency. The amendment has had no material effect on the financial position or performance of the Group.

IFRIC 14 Prepayments of a Minimum Funding Requirement (Amendment)

The amendment removes an unintended consequence when an entity is subject to minimum funding requirements (MFR) and makes an early payment of contributions to cover such requirements. The amendment permits a prepayment of future service cost by the entity to be recognized as pension asset. The amendment to the interpretation had no material effect on the financial position or performance of the Group.

Notes to the Interim Condensed Consolidated Financial Statements (Continued)

For the six months ended 30 June 2011

2 Basis of preparation and significant accounting policies (Continued)

2.2 Significant accounting policies (Continued)

Improvements to IFRSs (issued May 2010)

In May 2010, the IASB issued its third omnibus of amendments to its standards, primarily with a view to removing inconsistencies and clarifying wording. There are separate transitional provisions for each standard. The adoption of the following amendments resulted in certain changes to accounting policies, but did not have significant impact on the financial position or performance of the Group.

(a) IFRS 3 Business Combinations: Limits the measurement choice of minority interests at fair value or at the proportionate share of the acquiree's identifiable net assets to components of minority interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation. Other components of minority interests are measured at their acquisition date fair value, unless another measurement basis is required by another IFRS.

(b) IAS 34 Interim Financial Statements: Requires additional disclosures for fair values and changes in classification of financial assets, as well as changes to contingent assets and liabilities in interim condensed financial statements.

Other amendments resulting from improvements to IFRSs to the following standards did not have significant impact on the accounting policies, financial position or performance of the Group.

(a) IFRS 3 Business Combinations: Clarifies that the amendments to IFRS 7, IAS 32 and IAS 39 that eliminate the exemption for contingent consideration do not apply to contingent consideration that arose from business combinations whose acquisition dates precede the application of IFRS 3 (as revised in 2008).

The amendments also add explicit guidance to clarify the accounting treatment for non-replaced and voluntarily replaced share-based payment awards.

(b) IAS 27 Consolidated and Separate Financial Statements: Clarifies that the consequential amendments from IAS 27 (as revised in 2008) made to IAS 21, IAS 28 and IAS 31 shall be applied prospectively for annual periods beginning on or after 1 July 2009 or earlier if IAS 27 is applied earlier.

The Group has not early adopted any other standard, interpretation or amendment that was issued but is not yet effective.

Notes to the Interim Condensed Consolidated Financial Statements (Continued)

For the six months ended 30 June 2011

3 Revenue and cost of sales

4 Administrative expenses

Notes to the Interim Condensed Consolidated Financial Statements (Continued)

For the six months ended 30 June 2011

5 Directors' remuneration

Directors' remuneration for the six months ended 30 June 2011 and number of options held were as follows:

Directors' remuneration for the six months ended 30 June 2010 and number of options held were as follows:

* Short term employee benefits

** Share-based payments refer to expenses arising from the Company's share option scheme (see note 19 for details).

*** Resigned from the Board on 16 February 2011.

Notes to the Interim Condensed Consolidated Financial Statements (Continued)

For the six months ended 30 June 2011

6 Operating segment information

The Group's primary reporting format for reporting segment information is by operating segment based on the nature of its business which was private equity investments, fund consulting, consulting services, and furniture trading for the six months ended 30 June 2011 and 2010.

The Group mainly had five geographical segments based on the location of assets. The segments are defined as Isle of Man, Guernsey, Malaysia, China and others.

For the six months ended 30 June 2011 (Unaudited)

For the six months ended 30 June 2011 (Unaudited)

6 Operating segment information(Continued)

For the six months ended 30 June 2010 (Unaudited)

For the six months ended 30 June 2010 (Unaudited)

Notes to the Interim Condensed Consolidated Financial Statements (Continued)

For the six months ended 30 June 2011

 7 Investment income

* FVTPL refers to fair value through profit or loss

8 Income tax

No provision for current tax was made for the year as the subsidiaries had no assessable profit. As the Company is not in receipt of income from Manx land or property and does not hold a Manx banking licence, it is taxed at the standard rate of 0% on the Isle of Man. As the Company is quoted on AIM market of the London Stock Exchange, it is outside the scope of the Attribution Regime for Individuals.

* The deferred income tax comes from net change in fair value loss of Rising Technology Corporation Ltd and fair value gain of Celadon Mining Ltd, estimated in accordance with the relevant tax laws and regulations in the PRC.

Notes to the Interim Condensed Consolidated Financial Statements (Continued)

For the six months ended 30 June 2011

9 Earnings per share

10 Investments at fair value through profit or loss

As at 30 June 2011 (Unaudited)

Notes to the Interim Condensed Consolidated Financial Statements (Continued)

For the six months ended 30 June 2011

10 Investments at fair value through profit or loss (Continued)

* There are no significant restrictions that will have an impact on ability to transfer these investments, except a lock up of the shares of HaloSource Inc which will expire in October 2011.

** The Company exchanged its equity holding in Bach Technology AS upon the completion of acquisition of Bach Technology AS by Bach Technology GmbH.

*** 2% equity stake in Rising Technology Corporation Ltd and 1.6% beneficial interest in Beijing Rising Information Technology Ltd, a company incorporated in the PRC, under a nominee agreement.

**** Investments held by China Commodities Absolute Return Ltd ("CCF"), a commodities hedge fund managed by the Group. The Group ceased to recognize CCF as an investment at FVTPL on 1 May 2011 when its ownership in CCF increased to 60% and instead recognized its separate assets and liabilities (see note 11 for details).

The proportion of ownership interest held by CCF in unlisted investments is as follows:

In accordance with IFRS 7: Financial Instruments: Disclosures, financial instruments recognized at fair value are required to be analysed between those whose fair value is based on:

a) Quoted prices in active markets for identical assets or liabilities (Level 1);

b) Those involving inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and

c) Those with inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

During the period, there were no transfers between Levels.

Statement of changes in investments at fair value through profit or loss based on level 3:

Notes to the Interim Condensed Consolidated Financial Statements (Continued)

For the six months ended 30 June 2011

10 Investments at fair value through profit or loss (Continued)

As at 30 June 2010 (Unaudited)

As at 31 December 2010 (Audited)

Notes to the Interim Condensed Consolidated Financial Statements (Continued)

For the six months ended 30 June 2011

11 Consolidation of China Commodities Absolute Return Ltd

China Commodities Absolute Return Ltd ("CCF") is an open ended commodity hedge fund registered in the Isle of Man, which invests principally in commodity related derivatives and equities, with a particular focus on China event driven opportunities.

On 1 May 2011, the Group made further subscriptions of US$2 million in CCF, at which point the Group's ownership increased to 60%. Following further subscription of US$4 million on 1 June 2011, the Group's ownership increased to 79.5%. The Group has consolidated the separate assets and liabilities of CCF from 1 May 2011 and has consolidated the transactions of CCF for the period from 1 May 2011 to 30 June 2011.

The Group has elected to measure the non-controlling interests in CCF at the proportionate share of the acquiree's identifiable net assets.

The assets and liabilities of CCF at the date of consolidation on 1 May 2011 and at 30 June 2011 were as follows:

12 Investment in an associate

The following entity meets the definition of an associate and has been accounted for in the consolidated financial statements on an equity basis:

As at 30 June 2011 (Unaudited)

Amounts relating to the associate for the six months ended 30 June 2011 are as follows:

Notes to the Interim Condensed Consolidated Financial Statements (Continued)

For the six months ended 30 June 2011

12 Investment in an associate (Continued)

As at 30 June 2010 (Unaudited)

Amounts relating to the associate for the six months ended 30 June 2010 are as follows:

As at 31 December 2010 (Audited)

Amounts relating to the associate for 2010 are as follows:

13 Loans

The Group has entered into convertible credit agreements with certain investee companies, with the rights to convert the outstanding principal balance of relevant loans into borrower's shares according to certain conversion conditions as set forth in the table below.