Interim Financial Report
FIDELITY CHINA SPECIAL SITUATIONS PLC
Preliminary announcement of unaudited Interimresults for the six months ended
30 September 2012
Interim Financial Report
For the 6 months ended 30 September 2012
Contents
The Investment Objective and Performance
Summary of Results
Interim Financial Report
Directors' Responsibility Statement
Twenty Largest Holdings
Financial Statements
Directory
Information for Investors
Warning to Shareholders
The Investment Objective and Performance
The investment objective of the Company is to achieve long term capital growth
from an actively managed portfolio made up primarily of securities issued by
companies listed in China or Hong Kong and Chinese companies listed elsewhere.
The Company may also invest in listed companies with significant interests in
China and Hong Kong.
Investment Performance
Six months
ended
30 September
2012
Net Asset Value ("NAV") per Share total return -6.2%
Share Price total return -9.5%
MSCI China Index total return -2.1%
Sources: Fidelity and Datastream
Past performance is not a guide to future returns
Summary of Results
30 September 31 March
2012 2012
Assets
Gross Asset Exposure1 £605.9m £628.5m
Net Assets £516.3m £559.0m
Bank loans and long Contracts For Difference ("CFDs") 26.1% 23.8%
as % of Net Assets
Gross Asset Exposure as % of Net Assets 117.4% 112.4%
Net Asset Value per Share 78.73p 84.72p
Number of Ordinary Shares in issue 655,729,480 659,754,480
Stock market data
Share Price at period/year end 72.40p 80.80p
Share Price period/year high 81.70p 114.00p
Share Price period/year low 70.30p 70.00p
Discount at period/year end 8.0% 4.6%
(Premium) period/year high (1.4%) (8.8%)
Discount period/year high 9.1% 8.8%
Earnings/(loss) for the six months ended 30 September 2012 2011
Revenue return per Ordinary Share2 1.49p 1.20p
Capital loss per Ordinary Share2 (6.78p) (31.30p)
Total loss per Ordinary Share2 (5.29p) (30.10p)
1 Total portfolio exposure whether through direct or indirect investment
(including through derivatives)
2 Based on the weighted average number of Ordinary Shares in issue during the
reporting period
Sources: Fidelity and Datastream
Past performance is not a guide to future returns
Interim Financial Report
MANAGER'S REPORT
The last six months to 30 September 2012 has been a further disappointing
period for the Company. The net asset value is down 6.2%, underperforming the
MSCI China Index benchmark, which is down 2.1%. The main cause continues to be
the combination in a falling market of the Company's gearing and its high
exposure to medium and smaller sized companies - the MCSI China Mid Cap Index
being down 7.3% and the Small Cap Index being down 8.5%. The Shanghai Composite
Index is also down 7.6% over the same period, underperforming most world
markets. Encouragingly the markets and the Company have performed better in
October.
In my view the main cause for this poor stock market performance has been the
economic slowdown in China; during the period most forecasts of GDP growth for
2012 have been cut. Although the Chinese authorities have been easing economic
policy since the fourth quarter of 2011, the pace of easing has been quite
slow. Data coming out of China over the summer has been mixed (even allowing
for the unreliability of official figures). Some figures indicate that the
economy is still slowing while others suggest it is stabilising. Looking at a
broad cross section of data I believe that the economy is in the process of
stabilising at a lower than consensus growth rate of around 7% and that the
fourth quarter of this year will probably mark the low although growth from
next year will depend on the shape of policies instigated by the new
administration. GDP growth however in the future is likely to settle at a lower
rate than in the past although the quality of that growth will be higher. The
shift of the economy away from export and investment led growth towards
domestic consumption continues apace and supports the investment policy of the
Company emphasising companies exposed to domestic consumption or services.
Despite their poor relative performance I still believe that the exposure to
smaller private companies rather than the larger state owned enterprises will
prove to be more rewarding in the longer term.
Concerns about the political changes going on in China at the moment have also
weighed on markets. The senior politicians change every 10 years and the
process is an opaque one; most of the key decisions about who will be the new
leaders occur behind closed doors. The 18th National Party Congress starts on 8
November 2012 where the members of the Politburo Standing Committee will be
chosen. The Standing Committee members are the most senior politicians in China
and include the president and premier. There are currently 9 members but the
new committee may only have 7. The process is often not smooth and the events
surrounding the
sacking of Bo Xilai and Xi Jinping's "disappearance" for nearly two weeks are
illustrations of this.
The economy continues to face challenges especially the weakness of local
government finances, increasing bad debts at the banks, the growth of wealth
management, trust and unofficial lending products, the big slowdown in exports
and the slowdown in investment. I remain of the view that although these
challenges should not be underestimated, the central government has adequate
resources to address them. Once the Standing Committee has been decided and
other political appointees are confirmed in March next year, we should see new
policies to address some of these issues, such as the weakness of local
government finances and bad debts at the banks. A number of new infrastructure
projects have been announced over the last six months (although headline
figures can sometimes be misleading as the same project gets announced several
times leading to double counting). Although fixed asset investment is on the
increase again, the financing of these projects could be more challenging than
in the past. Most commentators do not expect anything on the scale of the
investment spending seen after the global financial crisis. The general view is
that the scale of investment spending at that time, although solving short term
problems, was responsible for several of the financial problems China is now
experiencing.
My investment strategy remains unchanged. Over the last six months probably the
most significant change I have made to the portfolio is to increase the
Company's exposure to companies in the internet space. As well as rebuilding
the position in Tencent, adding a 2.1% position in Baidu and a smaller position
in Sina, the Company recently purchased a 2.6% holding in the convertible
shares of the unlisted Alibaba Group. The poor performance of Chinese shares
and particularly those listed in the U.S. has led to the opportunity to buy
some companies at what I believe will prove to be attractive valuations.
Interestingly these companies with very strong business franchises have been
selling well below the valuations of many China consumer staple companies; the
staple companies have been some of the best performers and in many cases the
valuations look expensive to me. The use of internet services in China is
booming at the same time as internet penetration is increasing and companies
like Tencent, Baidu and Alibaba are benefiting from this trend. Alibaba Group's
subsidiaries, Taobao and TMall, account for over 75% of all e-commerce spending
in China. Often the lack of a developed bricks and mortar retailing sector in
lower tier cities is leading consumers to go straight to buying goods on the
internet rather than on the high street. The Alibaba Group is well known to
Fidelity as my private equity colleagues have followed it and invested in it
for about 12 years.
Valuations of Chinese securities remain low on an historic basis for the market
as a whole and across a broad selection of sectors. Sentiment also remains very
depressed, which I believe is positive for markets. For example, the proportion
of trading on the Hong Kong stock exchange that is short related, earlier this
summer reached a ten year high.
In mid-October, I accompanied the Board on its third trip to China visiting
Beijing, Shenzhen and Hong Kong. We visited fourteen companies held in the
portfolio as well as meeting a number of strategists, economists, diplomats,
businessmen and alternative research providers. The trip reinforced our view
that many attractively valued investment opportunities situations currently
exist in China. Additionally, there is the prospect of the new Government
embarking on an exciting decade of deregulation as well as stimulating private
enterprise.
In a world where growth is likely to be in short supply, I remain of the view
that those countries, such as China, where growth is largely based on domestic
factors and which can grow at rates well above the global average will offer
some of the best investment opportunities. Investors in the Company have needed
more patience than I initially anticipated but I still believe this patience
will be rewarded. Additionally, there is the prospect of the new Government
embarking on an exciting decade of deregulation as well as stimulating private
enterprise.
Anthony Bolton
Portfolio Manager
12 November 2012
DISCOUNT AND PREMIUM
The Board believes it is in the best interests of shareholders if the share
price of the Company tracks closely the underlying Net Asset Value, which is
published each business day. The Board has the ability to issue shares at a
premium to NAV and to buy shares back at a discount to NAV for cancellation.
During the reporting period, in furtherance of this policy, the Board
authorised the repurchase and cancellation at a discount of 4,025,000 Ordinary
Shares. Since the period end, the Company has repurchased a further 500,000
Ordinary Shares for cancellation.
GEARING
On 17 February 2012, the Company entered into a revolving facility agreement
with Scotiabank Europe PLC for US$150,000,000, which has been fully drawn down.
The Company continues to use derivatives to achieve further gearing by the use
of Contracts For Difference on a number of the holdings in the Company's
portfolio, totalling a further £41,756,000 as at 30 September 2012.
PRINCIPAL RISKS AND UNCERTAINTIES
The Board believes that the principal risks and uncertainties faced by the
Company fall into two broad categories. The first, external risks, being
country risk, stock market risk, share price and discount risk and the second,
internal risks, being portfolio and governance, operational, financial,
compliance, administration etc. Information on each risk is detailed in full in
the Prospectus of the Company and a risk matrix listing the specific top risks
identified by the Board is contained in the Annual Report. Both the Prospectus
and the Annual Report are available for inspection on the Company's pages of
its website www.fidelity.co.uk/china.
GOING CONCERN
The Board receives regular reports from the Manager and the Directors have a
reasonable expectation that the Company has adequate resources to continue in
operational existence for the foreseeable future. Thus they continue to adopt
the going concern basis of accounting in preparing the financial statements as
outlined in the Annual Report for the year ended 31 March 2012.
By order of the Board
9 November 2012
Directors' Responsibility Statement
RESPONSIBILITY STATEMENT
The Directors confirm to the best of their knowledge that:
a) the condensed set of financial statements contained within the Interim
Financial Report has been prepared in accordance with the International
Accounting Standards 34: "Interim Financial Reporting";
b) the Interim Financial Reporting (constituting the interim management report)
includes a fair review of the information required by Rule 4.2.7R of the FSA's
Disclosure and Transparency Rules and their impact on the condensed set of
financial statements and a description of the principal risks and uncertainties
for the remaining six months of the financial year; and
c) in accordance with Disclosure and Transparency Rule 4.2.8R there have been
no related party transactions during the six month period to 30 September 2012
and therefore nothing to report on any material effect by such a transaction on
the financial position or the performance of the Company during that period;
and there have been no changes in this position since the last Annual Report
that could have a material effect on the financial position or performance of
the Company in the first six months of the current financial year.
The Interim Financial Report has not been audited by the Company's Independent
Auditor.
The Interim Financial Report was approved by the Board on 9 November 2012 and
the above responsibility statement was signed on its behalf by John Owen,
Chairman.
Twenty Largest Holdings at 30 September 2012
Twenty Largest Holdings, including derivatives Balance Gross %1
Sheet Asset
Value Exposure
£'000 £'000
Ping An Insurance (Group) Company of China 26,128 26,128 4.3
Insurance company
Tencent Holdings Limited* 17,841 23,605 3.9
Provides internet, mobile and telecommunications
value-added services
China Unicom (Hong Kong) Limited* 13,967 22,029 3.6
Integrated telecommunications provider
AIA Group* 12,846 19,741 3.3
Insurance company based in Hong Kong
CITIC Securities Company Limited 19,459 19,459 3.2
Broker and asset manager
Wing Hang Bank Limited 18,720 18,720 3.1
Provider of commercial banking and related
financial services
Bank of China Hong Kong* 10,539 17,387 2.9
A subsidiary of the Bank of China based in Hong
Kong
TVB 15,875 15,875 2.6
Hong Kong television broadcaster
Alibaba Group2 15,497 15,497 2.6
Major e-commerce internet company
SAIC Motor Corporation Limited 13,948 13,948 2.3
Automobile manufacture and distribution company
HSBC Holdings plc (Hong Kong listed)* 10,791 13,433 2.2
Global banking and financial services company
Asiainfo Linkage 13,321 13,321 2.2
Telecommunications software solutions provider
WuXi Pharma Tech 13,187 13,187 2.2
Pharmaceutical, biotechnology, and medical device
research company
REXLot Holdings Limited 13,054 13,054 2.2
Supplies lottery related systems, machines and
services for the
Chinese lottery
Baidu 12,950 12,950 2.1
Major search internet company
Ports Design* 9,511 12,572 2.1
Designs, manufactures and retails ladies and mens
fashion garments
Lee & Man Paper Manufacturing Limited 9,391 9,391 1.5
Paper making company
Hutchison China MediTech Limited 9,113 9,113 1.5
Pharmaceutical and healthcare group
China Lodging Group 8,962 8,962 1.5
Operates a chain of economy hotels
CSI Properties Limited* 8,327 8,665 1.4
Hong Kong property company
Twenty Largest Holdings 273,427 307,037 50.7
* Includes investment via CFDs
1 % of total gross asset exposure
2 Unlisted investment
Income Statement
Six months ended Year ended Six months ended
30.09.12 31.03.12 30.09.11
unaudited audited unaudited
Notes revenue capital total revenue capital total revenue capital total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue
Investment income 2 12,468 - 12,468 12,912 - 12,912 11,291 - 11,291
Other income 2 2 - 2 9 - 9 4 - 4
Net derivative 2 835 - 835 550 - 550 407 - 407
income
Total revenue 13,305 - 13,305 13,471 - 13,471 11,702 - 11,702
Losses on - (39,845) (39,845) - (155,156) (155,156) - (214,259) (214,259)
investments
designated at fair
value through
profit or loss
Net (losses)/gains - (2,850) (2,850) - 27,460 27,460 - 12,169 12,169
on derivative
instruments held at
fair value through
profit or loss
Foreign exchange (29) (74) (103) 80 6 86 16 615 631
(losses)/gains on
other net assets
Foreign exchange - 861 861 - (1,605) (1,605) - (3,178) (3,178)
gains/(losses) on
bank loans
Total revenue and 13,276 (41,908) (28,632) 13,551 (129,295) (115,744) 11,718 (204,653) (192,935)
losses
Expenses
Investment (1,942) (1,942) (3,884) (4,156) (4,156) (8,312) (2,183) (2,183) (4,366)
management fee
Other expenses (770) - (770) (1,655) - (1,655) (817) - (817)
Profit/(loss) 10,564 (43,850) (33,286) 7,740 (133,451) (125,711) 8,718 (206,836) (198,118)
before finance
costs and taxation
Finance costs
Interest on bank (448) (448) (896) (878) (878) (1,756) (452) (452) (904)
loans
Profit/(loss) 10,116 (44,298) (34,182) 6,862 (134,329) (127,467) 8,266 (207,288) (199,022)
before taxation
Taxation (282) (303) (585) (289) (237) (526) (305) - (305)
Net profit/(loss) 9,834 (44,601) (34,767) 6,573 (134,566) (127,993) 7,961 (207,288) (199,327)
after taxation for
the period
Earnings/(loss) per 3 1.49p (6.78p) (5.29p) 0.99p (20.33p) (19.34p) 1.20p (31.30p) (30.10p)
Ordinary Share
The Company does not have any income or expenses that are not included in the
net profit/(loss) for the period. Accordingly the "Net profit/(loss) after
taxation for the period" is also the "Total comprehensive income for the
period" and no separate Statement of Comprehensive Income has been presented.
The total column of this statement represents the Income Statement of the
Company and is prepared in accordance with IFRS. The revenue return and capital
return columns are supplementary and presented for information purposes as
recommended by the Statement of Recommended Practice issued by the Association
of Investment Companies.
All of the profit/(loss) and total comprehensive income is attributable to the
equity shareholders of the Company. There are no minority interests.
All items in the above statement derive from continuing operations. No
operations were acquired or discontinued in the period.
Statement of Changes in Equity
Notes share share capital other capital revenue total
capital premium redemption reserve reserve reserve equity
£'000 account reserve £'000 £'000 £'000 £'000
£'000 £'000
Equity 6,564 204,648 - 452,232 18,188 2,331 683,963
shareholders' funds
at
31 March 2011
Issue of Ordinary 5 63 6,921 - - - - 6,984
Shares
Repurchase of 5 (5) - 5 (423) - - (423)
Ordinary Shares
Net (loss)/profit - - - - (207,288) 7,961 (199,327)
after taxation for
the period
Dividend paid 4 - - - - - (1,656) (1,656)
Equity 6,622 211,569 5 451,809 (189,100) 8,636 489,541
shareholders' funds
at
30 September 2011
Equity 6,564 204,648 - 452,232 18,188 2,331 683,963
shareholders' funds
at
31 March 2011
Issue of Ordinary 5 63 6,921 - - - - 6,984
Shares
Repurchase of 5 (29) - 29 (2,323) - - (2,323)
Ordinary Shares
Net (loss)/profit - - - - (134,566) 6,573 (127,993)
after taxation for
the year
Dividend paid 4 - - - - - (1,656) (1,656)
Equity 6,598 211,569 29 449,909 (116,378) 7,248 558,975
shareholders' funds
at
31 March 2012
Repurchase of 5 (41) - 41 (2,989) - - (2,989)
Ordinary Shares
Net (loss)/profit - - - - (44,601) 9,834 (34,767)
after taxation for
the period
Dividend paid 4 - - - - - (4,934) (4,934)
Equity 6,557 211,569 70 446,920 (160,979) 12,148 516,285
shareholders' funds
at
30 September 2012
Balance Sheet
Company No. 7133583
Notes 30.09.12 31.03.12 30.09.11
unaudited audited unaudited
£'000 £'000 £'000
Non current assets
Investments designated at fair value 596,661 629,709 577,015
through profit or loss
Current assets
Derivative assets held at fair value 6,908 11,582 6,224
through profit or loss
Amounts held at futures clearing houses 8,022 3,922 5,722
and brokers
Other receivables 10,464 9,146 1,843
Cash and cash equivalents 7,208 20,123 11,432
32,602 44,773 25,221
Current liabilities
Derivative liabilities held at fair value (5,224) (3,792) (11,285)
through profit or loss
Bank loans (92,980) (93,841) (96,015)
Other payables (14,774) (17,874) (5,395)
(112,978) (115,507) (112,695)
Net current liabilities (80,376) (70,734) (87,474)
Net assets 516,285 558,975 489,541
Equity attributable to equity
shareholders
Share capital 5 6,557 6,598 6,622
Share premium account 211,569 211,569 211,569
Capital redemption reserve 70 29 5
Other reserve 446,920 449,909 451,809
Capital reserve (160,979) (116,378) (189,100)
Revenue reserve 12,148 7,248 8,636
Total equity shareholders' funds 516,285 558,975 489,541
Net asset value per Ordinary Share 6 78.73p 84.72p 73.93p
Cash Flow Statement
Six Year Six
months ended months
ended 31.03.12 ended
30.09.12 audited 30.09.11
unaudited £'000 unaudited
£'000 £'000
Operating activities
Cash inflow from investment income 11,199 11,063 9,365
Cash inflow from derivative income 892 508 313
Cash inflow from other income 2 11 6
Cash outflow from directors' fees (75) (146) (72)
Cash outflow from other payments (5,361) (9,933) (3,358)
Cash outflow from purchase of investments (236,058) (613,873) (423,838)
Cash outflow from the cost of derivatives (13,561) (13,711) (8,634)
Cash inflow from sale of investments 226,718 554,516 352,033
Cash inflow from the proceeds of derivatives 16,817 34,528 27,011
Cash outflow from amounts held at futures (4,100) (642) (2,442)
clearing houses and brokers
Net cash outflow from operating activities before (3,527) (37,679) (49,616)
servicing of finance
Servicing of finance
Cash outflow from interest on bank loans (875) (1,594) (480)
Net cash outflow from operating activities and (4,402) (39,273) (50,096)
servicing of finance
Financing activities
Cash inflow from the issue of Ordinary Shares - 6,984 6,984
Cash outflow from the repurchase of Ordinary (3,505) (1,345) (423)
Shares
Cash inflow from bank loans - 30,223 34,002
Cash outflow from dividends paid to shareholders (4,934) (1,656) (1,656)
Net cash (outflow)/inflow from financing (8,439) 34,206 38,907
activities
Decrease in cash and cash equivalents (12,841) (5,067) (11,189)
Cash and cash equivalents at the beginning of the 20,123 25,184 25,184
period
Effect of foreign exchange movements (74) 6 (2,563)
Cash and cash equivalents at the end of the 7,208 20,123 11,432
period
Notes to the Financial Statements
1 ACCOUNTING POLICIES
The Interim Financial Statements have been prepared in accordance with
International Accounting Standard ("IAS") 34 "Interim Financial Reporting". The
accounting policies adopted in the preparation of the Interim Financial
Statements are the same as those applied in the Company's Annual Report for the
year ended 31 March 2012.
2 INCOME
Six Year Six
months ended months
ended 31.03.12 ended
30.09.12 audited 30.09.11
unaudited £'000 unaudited
£'000 £'000
Income from investments designated at fair
value through profit or loss
Overseas dividends 11,924 11,145 10,362
Overseas scrip dividends 373 1,252 929
UK dividends 69 515 -
UK scrip dividends 102 - -
12,468 12,912 11,291
Other income
Deposit interest 2 9 4
Net derivative income
Dividends received on long CFDs 1,010 1,064 550
Interest paid on long CFDs (160) (390) (143)
Interest received on short CFDs - 10 -
Dividends paid on short CFDs (15) (134) -
835 550 407
Total income 13,305 13,471 11,702
3 EARNINGS/(LOSS) PER ORDINARY SHARE
Six months Year ended Six months
ended 31.03.12 ended
30.09.12 audited 30.09.11
unaudited unaudited
Revenue earnings per Ordinary Share 1.49p 0.99p 1.20p
Capital loss per Ordinary Share (6.78p) (20.33p) (31.30p)
Total loss per Ordinary Share (5.29p) (19.34p) (30.10p)
The revenue, capital and total earnings/(loss) per Ordinary Share are based on
the net profit/ (loss) after taxation in the period divided by the weighted
average number of Ordinary Shares in issue during the period, as shown below:
Six months Year ended Six months
ended 31.03.12 ended
30.09.12 audited 30.09.11
unaudited £'000 unaudited
£'000 £'000
Revenue net profit after taxation 9,834 6,573 7,961
Capital net loss after taxation (44,601) (134,566) (207,288)
Total net loss after taxation (34,767) (127,993) (199,327)
Weighted average number of Ordinary Shares 657,844,644 661,971,830 662,189,453
in issue
4 DIVIDEND
Six months Year ended Six months
ended 31.03.12 ended
30.09.12 audited 30.09.11
unaudited £'000 unaudited
£'000 £'000
Dividend paid
Final dividend paid of 0.75 pence per
Ordinary
Share for the year ended 31 March 2012
(period ended 31 March 2011: 0.25 pence) 4,934 1,656 1,656
No dividend has been declared for the six month period to 30 September 2012.
5 SHARE CAPITAL
Six months Year ended Six months
ended 31.03.12 ended
30.09.12 audited 30.09.11
unaudited unaudited
Shares £'000 Shares £'000 Shares £'000
Issued, allotted and
fully paid Ordinary
Shares of 1 penny each
Beginning of the period 659,754,480 6,598 656,404,480 6,564 656,404,480 6,564
Issue of Ordinary Shares - - 6,250,000 63 6,250,000 63
Repurchase of Ordinary (4,025,000) (41) (2,900,000) (29) (450,000) (5)
Shares
End of the period 655,729,480 6,557 659,754,480 6,598 662,204,480 6,622
6 NET ASSET VALUE PER ORDINARY SHARE
The net asset value per Ordinary Share is based on net assets of £516,285,000
(31 March 2012: £558,975,000 and 30 September 2011: £489,541,000) and on
655,729,480 (31 March 2012: 659,754,480 and 30 September 2011: 662,204,480)
Ordinary Shares, being the number of Ordinary Shares in issue at the period
end.
7 UNAUDITED FINANCIAL STATEMENTS
The results for the six month periods ended 30 September 2012 and 30 September
2011, which are unaudited, constitute non-statutory accounts within the meaning
of Section 435 of the Companies Act 2006. The figures and financial information
for the year to 31 March 2012 are extracted from the latest published Financial
Statements, on which the Independent Auditor gave an unqualified report, and
they have been delivered to the Registrar of Companies.
Directory
BOARD OF DIRECTORS
John Owen CMG MBE DL (Chairman)
Nicholas Bull FCA (Senior Independent Director)
David Causer FCA (Chairman of the Audit Committee)
The Hon. Peter Pleydell-Bouverie DL (Chairman of the Investment Committee)
Elisabeth Scott
Andrew Wells
INVESTMENT MANAGER
FIL Investment Management (Hong Kong) Limited
Level 21
Two Pacific Place
88 Queensway
Admiralty
Hong Kong
UNLISTED INVESTMENT MANAGER, SECRETARY AND REGISTERED OFFICE
FIL Investments International
Beech Gate
Millfield Lane
Lower Kingswood
Tadworth
Surrey
KT20 6RP
FINANCIAL ADVISERS AND STOCKBROKERS
Cenkos Securities plc
6,7,8 Tokenhouse Yard
London
EC2R 7AS
INDEPENDENT AUDITOR
Grant Thornton UK LLP
Chartered Accountants and Registered Auditor
30 Finsbury Square
London
EC2P 2YU
BANKERS AND CUSTODIAN
JPMorgan Chase Bank (London Branch)
125 London Wall
London
EC2Y 5AJ
REGISTRARS
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
LAWYERS
Slaughter and May
One Bunhill Row
London
EC1Y 8YY
Information for Investors
CONTACT INFORMATION
Private investors: call free on 0800 41 41 10, 9am to 6pm, Monday to Saturday.
Financial advisers: call free on 0800 41 41 81, 8am to 6pm, Monday to Friday.
www.fidelity.co.uk/its
Existing shareholders who have a specific query regarding their holding or need
to provide update information, for example a change of address, should contact
the appropriate administrator.
Holders of ordinary shares
Capita Registrars, Registrars to Fidelity China Special Situations PLC, The
Registry,
34 Beckenham Road, Beckenham,
Kent BR3 4TU.
Telephone: 0871 664 0300 (calls cost 10p per minute plus network extras. Lines
are open 8.30am to 5.30pm, Monday to Friday)
Email: ssd@capitaregistrars.com.
Details of individual shareholdings and other information can also be obtained
from the Registrars' website: www.capitaregistrars.com
Fidelity Share Plan investors
Fidelity Investment Trust Share Plan,
PO Box 24035, 12 Blenheim Place,
Edinburgh EH7 9DD.
Telephone: 0845 358 1107 (calls to this number are charged at 3.95p per minute
from a BT landline. Other telephone service providers' costs may vary).
Fidelity ISA investors
Fidelity, using the freephone numbers given above, or by writing to:
UK Customer Service, Fidelity Investments,
Oakhill House, 130 Tonbridge Road,
Hildenborough, Tonbridge,
Kent TN11 9DZ.
General enquiries should be made to FIL Investments International, the
Secretary, at the Company's registered office:
FIL Investments International,
Investment Trusts, Beech Gate,
Millfield Lane, Lower Kingswood, Tadworth,
Surrey KT20 6RP.
Telephone: 01732 36 11 44
Fax: 01737 83 68 92
www.fidelity.co.uk/its
FINANCIAL CALENDAR
30 September - Interim period end
2012
November 2012 - announcement of Interim results
Beginning of - publication of Interim Financial Report
December
31 March 2013 - financial year end
June 2013 - publication of Annual Report
July 2013 - Annual General Meeting
FURTHER INFORMATION
The Fidelity Individual Savings Account ("ISA") is offered and managed by
Financial Administration Services Limited. The Fidelity Investment Trust Share
Plan is managed by FIL Investments International. Both companies are authorised
and regulated by the Financial Services Authority. The Fidelity Investment
Trust Share Plan is administered by The Bank of New York Mellon and shares will
be held in the name of The Bank of New York Nominees Limited.
The value of savings and eligibility to invest in an ISA will depend on
individual circumstances and all tax rules may change in the future. Fidelity
investment trusts are managed by FIL Investments International. Fidelity only
gives information about its own products and services and does not provide
investment advice based on individual circumstances. Should you wish to seek
advice, please contact a Financial Adviser.
Please note that the value of investments and the income from them may fall as
well as rise and the investor may not get back the amount originally invested.
Past performance is not a guide to future returns. For funds that invest in
overseas markets, changes in currency exchange rates may affect the value of
your investment. Investing in small and emerging markets can be more volatile
than other more developed markets.
Reference in this document to specific securities should not be construed as a
recommendation to buy or sell these securities, but is included for the
purposes of illustration only. Investors should also note that the views
expressed may no longer be current and may already have been acted upon by
Fidelity.
Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide Investment logo
and symbol are trademarks of FIL Limited.
The content of websites referred to in this document do not form part of this
Interim Financial Report.
Warning to Shareholders
SHARE FRAUD WARNING
Share fraud includes scams where investors are called out of the blue and
offered shares that often turn out to be worthless or non-existent, or an
inflated price for shares they own. These calls come from fraudsters operating
in `boiler rooms' that are mostly based abroad.
While high profits are promised, those who buy or sell shares in this way
usually lose their money.
The Financial Services Authority (FSA) has found most share fraud victims are
experienced investors who lose an average of £20,000, with around £200m lost in
the UK each year.
PROTECT YOURSELF
If you are offered unsolicited investment advice, discounted shares, a premium
price for shares you own, or free company or research reports, you should take
these steps before handing over any money:
1. Get the name of the person and organisation contacting you.
2. Check the FSA Register at www.fsa.gov.uk/fsaregister to ensure they are
authorised.
3. Use the details on the FSA Register to contact the firm.
4. Call the FSA Consumer Helpline on 0845 606 1234 if there are no contact
details on the Register or you are told they are out of date.
5. Search the FSA's website list of unauthorised firms and individuals to avoid
doing business with.
6. REMEMBER: if it sounds too good to be true, it probably is!
If you use an unauthorised firm to buy or sell shares or other investments, you
will not have access to the Financial Ombudsman Service or Financial Services
Compensation Scheme (FSCS) if things go wrong.
REPORT A SCAM
If you are approached about a share scam you should tell the FSA using the
share fraud reporting form at www.fsa.gov.uk/scams, where you can find out
about the latest investment scams. You can also call the Consumer Helpline on
0845 606 1234.
If you have already paid money to share fraudsters you should contact Action
Fraud on
0300 123 2040
Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide Investment logo
and
symbol are trademarks of FIL Limited
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The unavoidable carbon emissions generated during the manufacture and delivery
of this document, have been reduced to net zero through a verified, carbon
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