Annual Financial Report

abrdn New Dawn Invest Trust plc

17 August 2023

ABRDN NEW DAWN INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 APRIL 2023

Legal Entity Identifier (LEI): 5493002K00AHWEME3J36

Investment Objective

To provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.

Benchmark

MSCI All Countries Asia Pacific ex Japan Index (Sterling adjusted).

Website

Up to date information can be found on the Company's website: www.newdawn-trust.co.uk

For further information, please contact:

Stephanie Hocking

abrdn Fund Managers Limited

0207 463 6403

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested.

Performance Highlights

Net asset value total return^AB		Share price total return^AB
-6.8%		-7.3%
2022	-11.0%	2022	-11.8%

Benchmark total return^BC		Ongoing charges^A
-5.2%		1.13%
2022	-9.2%	2022	1.13%

Revenue return per share		Dividend per Ordinary share
4.82p		4.30p
2022	3.71p	2022	4.30p

^A Alternative Performance Measure.
^B Total return represents capital return plus dividends reinvested.
^C MSCI AC Asia Pacific ex Japan Index

Financial Highlights

	30 April 2023	30 April 2022
Total assets	£342,765,000	£380,434,000
Total equity shareholders' funds (net assets)	£314,133,000	£346,952,000
Market capitalisation	£274,027,000	£305,154,000
Net asset value per Ordinary share (including current year income)	299.20p	325.17p
Net asset value per Ordinary share (excluding current year income)^AB	295.34p	322.43p
Share price (mid market)	261.00p	286.00p
Discount to net asset value per Ordinary share (including current year income)^B	12.8%	12.0%
Discount to net asset value per Ordinary share (excluding current year income)^AB	11.6%	11.3%
MSCI AC Asia Pacific ex Japan Index (currency adjusted, capital gains basis)	765.99	834.02
Net gearing^B	8.5%	7.7%
Dividend and earnings
Revenue return per share	4.82p	3.71p
Dividends per share^C	4.30p	4.30p
Dividend cover^B	1.12	0.86
Revenue reserves^D	£13,245,000	£12,705,000
Operating costs
Ongoing charges ratio^B	1.13%	1.13%
^A Based on capital only NAV.
^B Considered to be an Alternative Performance Measure.
^C The figures for dividends reflect the years in which they were earned (see note 8).
^D Prior to payment of the second interim dividend.

Chairman's Statement

Introduction

Before setting out my usual statement on the Company's annual results, I must draw your attention to an important announcement made by the Company since the year end. On 21 July 2023 the Board announced that it had agreed heads of terms with the board of Asia Dragon Trust plc ("Asia Dragon") in respect of a proposed combination of the Company with Asia Dragon. The combination, if approved by each company's shareholders, will be effected by way of a scheme of reconstruction and winding up of the Company under section 110 of the Insolvency Act 1986 with the associated transfer of part of the assets and undertaking of the Company to Asia Dragon in exchange for the issue of new ordinary shares in Asia Dragon (the "Scheme"). Under the terms of the Scheme an up to 25% cash exit opportunity will be offered to the Company's shareholders to realise part of their investment in the Company at a 2% discount to the formula asset value ("FAV") (less the costs of realigning the portfolio).

abrdn Fund Managers Limited ("aFML"), will, following implementation of the Scheme, continue to manage the enlarged Asia Dragon. The Asia Dragon board will propose certain amendments to Asia Dragon's investment policy to its shareholders which will principally align Asia Dragon's policy with the Company's current investment policy in order to permit investment into Australasia and provide the Investment Manager with equivalent geographic flexibility. Asia Dragon's existing benchmark comparative index (MSCI AC Asia (ex-Japan) Index) will be retained. The portfolio managers of the enlarged Asia Dragon will be James Thom and Pruksa Iamthongthong, part of the same team that currently manages the Company's portfolio. aFML has agreed that the management fee payable by the enlarged Asia Dragon to aFML will be reduced to 0.75% (currently 0.85%) on the initial £350 million of Asia Dragon's net assets and 0.5% on Asia Dragon's net assets in excess of £350 million.

Asia Dragon offers a five-yearly performance-related conditional tender with the current performance period running from 1 September 2021 to 31 August 2026 ("2026 CTO"). It is proposed that, in the light of the proposals and conditional on the Scheme being implemented, the 2026 CTO will be amended such that, in the event Asia Dragon underperforms its benchmark over the performance period, Asia Dragon will offer shareholders the opportunity to tender up to a maximum of 15% of their shares; a reduction from the maximum of 25% previously proposed. This reflects the revised conditional tender being of broadly a similar size to that previously proposed for the 2026 CTO, given the greater scale of the enlarged Asia Dragon. In addition to this, Asia Dragon's shareholders will have the opportunity to vote on the continuation of Asia Dragon at every fifth AGM with the next continuation vote to be put forward at the AGM in December 2026.

Both the Company and Asia Dragon invest in the Asia Pacific (ex-Japan) region, and both are managed by aFML with a high level of commonality across their shareholder bases. In light of these similarities, the Board believes a combination of the companies will create an enlarged vehicle that offers similar investment exposure for each set of shareholders while offering shareholders in the enlarged Asia Dragon (and therefore to Shareholders who roll into Asia Dragon) benefits that include greater secondary liquidity in Asia Dragon shares and cost efficiencies, including as result of the reduction in the management fee as referred to above.

The Company and Asia Dragon have received irrevocable undertakings to support the proposals from shareholders representing 27.0% of the Company's issued share capital and 29.7% of Asia Dragon's issued share capital (as at
20 July 2023).

A circular to shareholders of the Company, providing details of the Scheme and convening general meetings to approve the Scheme, together with a prospectus published by Asia Dragon in respect of the issue of New Asia Dragon Shares in connection with the Scheme are expected to be published in September 2023. If approved, the proposals are anticipated to become effective in October 2023.

The Board believes that the proposals are in the best interests of shareholders as a whole. In the event that the Scheme does not go ahead, then the Company will make a separate announcement to shareholders in respect of the future of the Company.

Overview of the Year

Over the 12 months to 30 April 2023, the performance of the Company reflected a challenging environment for both Asian and global equity markets. The net asset value ("NAV") declined by 6.8% on a total return basis, compared to a fall of 5.2% in the benchmark, the MSCI All Countries Asia Pacific ex Japan Index (in Sterling terms). The share price fell by 7.3% on a total return basis, while the discount of the share price to the NAV was 12.8% at the year end.

Despite the underperformance for the year, it is worth noting that, over the longer term three and five year periods both the NAV and share price total returns have outperformed the benchmark index.

Globally, concerns over the impact of monetary tightening, the threat of recession and the ongoing conflict in Ukraine weighed heavily on markets. The Company was not immune to this. But, while the Company's performance for the 12 months was challenging, it outperformed the more 'growth-centric' funds that were heavily impacted by the growth-to-value rotation, triggered by the abrupt shift in global monetary policy. This underlines the benefit of the Company's focus on quality, investing in companies with real competitive advantages, sound financial management and good corporate governance. It is these sorts of companies that tend to be more resilient in a tougher environment.

In the first half of the year, markets were unsettled by monetary tightening in response to high inflation, with several major central banks raising interest rates. Inflationary pressures in Asia have not been as acute as elsewhere, but investors are alert to the possibility of price increases in the region.

Market attention shifted to China in the second half of the year, with the country's sudden decision to reverse its strict Covid-19 restrictions towards the end of 2022. This move prompted hopes that a re-opening economy would stimulate domestic consumer demand and benefit export-oriented markets such as Taiwan and South Korea. Many Chinese stocks, including consumer discretionary and information technology companies, benefited. Yet, despite the pent-up domestic consumer demand, the potential positive effects have not yet fully translated into earnings growth for many companies. Other factors, such as worries over the health of the property sector and the regulatory crackdown on technology companies, have made China a tricky market for investors to navigate. Geopolitical tensions between the US and China have added to share-price volatility, especially for several Chinese technology and biotech companies. Against this backdrop, the Company's performance in China lagged the benchmark over the period. However, the Board is confident in the approach adopted by the Investment Manager, focusing on the long-term benefits of quality companies in China and other countries in the region.

Detailed information on performance and portfolio activity for the year is contained in the Investment Manager's Review.

Earnings and Dividend

Revenue earnings per share for the year were 4.82p (2022: 3.71p), an increase of 29.9% compared to the previous year. The Company benefited from a small number of special dividends from companies that had sustained strong earnings, as well as higher distributions from the large Australian miners, Rio Tinto and BHP following the spike in commodity prices.

A first interim dividend of 1.0p per share was paid on 10 February 2023. As explained below, it is anticipated that the Company will convene an AGM to be held in October at the same time as the first general meeting in relation to the Scheme. Because of this, and in order to ensure that the Company's normal dividend paying cycle is maintained, rather than proposing a final dividend as we have done in previous years, the Board decided to declare a second interim dividend. Accordingly, a second interim dividend of 3.3p per share was declared on 31 July 2023 (2022: final dividend of 3.3p), making a total dividend for the year of 4.3p per share, unchanged from the previous year. The second interim dividend will be paid on 8 September 2023 to shareholders on the register on 11 August 2023.

Gearing

At the end of the year, the Company's borrowing facilities amounted to £40 million, comprising a fixed rate loan of £20 million, which matures in December 2023 (with an interest rate of 2.626%), and a £20 million multi-currency revolving loan facility maturing in June 2024. An aggregate Sterling equivalent of £28.6 million was drawn down at the year-end and gearing (net of cash) was 8.5%, compared to 7.7% at the beginning of the year.

Share Buybacks

In common with other investment trusts, the Company has continued to buy back shares with the aim of providing a degree of liquidity to the market at times when the discount to the NAV has widened. It is the view of the Board that this policy is in the interests of all shareholders. The Board closely monitors the discount and reviews the operation of the share buy-back policy at each Board meeting.

During the year, the Company bought back 1.7 million shares, representing 1.6% of the issued share capital. These shares were bought back at a discount to NAV and were accretive to the Company, and are held in treasury. The Company's stated policy on treasury shares is that they can only be re-issued to the market at a premium to the NAV per share at that time.

Annual General Meeting ("AGM")

As a result of the proposal for the Company to merge with Asia Dragon, it is anticipated that the Company will convene an AGM to be held in October at the same time as the first general meeting in relation to the Scheme. The notice of the AGM will be contained in the Scheme circular.

For those shareholders who roll their holdings into Asia Dragon, the Directors of abrdn New Dawn who join the Board of Asia Dragon very much look forward to meeting you at Asia Dragon's AGM later this year.

Outlook

Growth forecasts in the Asia-Pacific region are ahead of many other parts of the world, as domestic demand has remained robust in a tighter global monetary environment. What lingers in investors' minds is whether these forecasts will hold, in an environment that is becoming increasingly uncertain, with rising geopolitical tensions, recessionary fears and higher interest rates slowly making more of an impact.

In times like these, where markets are volatile and unsettled, an investment process focused on quality can provide resilience. The benefits of an active investment approach can bring opportunities and enable investors to sidestep parts of the market that are most exposed to risks and uncertainties. The Company has maintained a diverse portfolio of high-quality investments, well positioned to navigate turbulent market conditions and take advantage of the strong structural secular trends across Asia.

These long-term regional drivers include the aspirations of a growing middle class, urbanisation, clean energy, and digitalisation, which are likely to reward patient investors in a region where individual countries typically have different outlooks. Despite short-term ebbs and flows, China and India, the two most populous nations worldwide, offer attractive long-term growth opportunities with the likelihood of positive effects on the other countries in Asia.

Many of the challenges in the market over the past year undoubtedly remain, but the Board continues to believe that the Investment Manager's focus on quality and seeking out companies with sound fundamentals is the best approach to ensure that the Company meets its stated investment objective, and that shareholders will continue to benefit from this approach under the merger proposals.

Donald Workman
Chairman
16 August 2023

Overview of Strategy

Business Model

The business of the Company is that of an investment company which seeks to qualify as an investment trust for tax purposes.

Investment Objective

The Company's investment objective is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.

Investment Policy

Asset Allocation

The Company's assets are invested in a diversified portfolio of securities in quoted companies spread across a range of industries and economies in the Asia Pacific region excluding Japan. Investments may also be made through collective investment schemes and in companies traded on stock markets outside the Asia Pacific region provided that over 75% of their consolidated revenue is earned from trading in the Asia Pacific region or they hold more than 75% of their consolidated net assets in the Asia Pacific region.

Gearing

The Board is responsible for determining the gearing strategy for the Company. Gearing is used selectively to leverage the Company's portfolio in order to enhance returns where and to the extent this is considered appropriate to do so. As at 30 April 2023, the Company had net gearing of 8.5% which compares with a current maximum limit set by the Board of 25%. Borrowings are short to medium term and particular care is taken to ensure that any bank covenants permit maximum flexibility of the investment policy.

Risk Diversification

It is the investment policy of the Company to invest no more than 15% of its gross assets in other listed investment companies (including investment trusts). As at 30 April 2023, 2.8% of the Company's gross assets were invested in listed investment companies.

The Company may invest in derivatives, financial instruments, money market instruments and currencies for the purposes 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).

The Company may only make material changes to its investment policy with the approval of shareholders in the form of an ordinary resolution. In addition, any material changes to the Company's investment policy will require the prior approval of the Financial Conduct Authority.

Delivering the Investment Policy

The Directors are responsible for determining the Company's investment objective and investment policy. Day-to-day management of the Company's assets has been delegated, via the AIFM, to the Investment Manager.

Board Investment Limits

In addition to the limits set out in the investment policy, the Investment Manager is authorised by the Board to invest up to 15% of the Company's gross assets in any single stock, calculated at the time an investment is made.

Benchmark

The Company compares its performance to the MSCI All Countries Asia Pacific ex Japan Index (Sterling adjusted).

Promoting the Success of the Company

The Board's statement below describes how the Directors have discharged their duties and responsibilities over the course of the financial year under section 172 (1) of the Companies Act 2006 and how they have promoted the success of the Company for the benefit of the members as a whole.

Principal Risks and Uncertainties

The Company's statement of principal risks and uncertainties forms part of the Strategic Report and is included beloe.

Key Performance Indicators ("KPIs")

The Board uses a number of financial performance measures to assess the Company's success in achieving its objective and determining the progress of the Company in pursuing its investment policy. The main KPIs, which are considered at each Board meeting, are shown in the table below and further commentary on the performance for the year is provided in the Chairman's Statement.

KPI	Description
Performance against benchmark index	The Board measures performance against the benchmark index - the Sterling -adjusted MSCI All Countries Asia Pacific ex Japan Index.
Revenue return per Ordinary share	The Board monitors the Company's net revenue return.
Dividends per share	The Board monitors the Company's annual dividends per Ordinary share.
Share price performance	The Board monitors the performance of the Company's share price on a total return basis.
Discount/premium to NAV	The discount/premium of the share price relative to the NAV per share is closely monitored by the Board, including the potential annual requirement to hold a continuation vote at the Annual General Meeting, as set out under "Duration. The discount at the year end is disclosed above.
Ongoing charges	The Board regularly monitors the Company's operating costs. Ongoing charges for the year and the previous year are disclosed above.

Promotional Activities

The Board recognises the importance of promoting the Company to prospective investors both for improving liquidity and enhancing the rating of the Company's shares. The Board believes one 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 trusts under its management. The Company's financial contribution to the programme is matched by the abrdn Group. The Company also supports the Manager's investments' investor relations programme which involves regional roadshows to existing and potential shareholders, promotional and public relations campaigns. The Manager's promotional and investor relations teams report to the Board on a quarterly basis giving analysis of the promotional activities as well as updates on the shareholder register and any changes in the make-up of that register.

The purpose of the promotional and investor relations programmes 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. Communicating the long-term attractions of the Company is key. The promotional programme includes commissioning independent paid for research on the Company, most recently from Marten & Co. A copy of the latest research note is available from the Company's website.

Environmental, Social and Human Rights Issues

The Company has no employees as the Board has delegated the day-to-day management and administrative functions to the Manager. There are therefore no disclosures to be made in respect of employees.

Modern Slavery Act

Due to the nature of its business, being a company that does not offer goods and services to customers, the Board considers that the Company is not within the scope of the Modern Slavery Act 2015. The Company is therefore not required to make a slavery and human trafficking statement. In any event, the Board considers the Company's supply chains, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter.

The UK Stewardship Code and Proxy Voting

The Company supports the UK Stewardship Code, and seeks to play its role in supporting good stewardship of the companies in which it invests. Responsibility for actively monitoring the activities of portfolio companies has been delegated by the Board to the Manager which has sub-delegated that authority to the Investment Manager. abrdn plc is a tier 1 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. While delivery of stewardship activities has been delegated to the Manager, the Board acknowledges its role in setting the tone for the effective delivery of stewardship on the Company's behalf.

The Board has also given discretionary powers to the Manager to exercise voting rights on resolutions proposed by the investee companies within the Company's portfolio. The Manager reports on a quarterly basis on stewardship (including voting) issues.

Global Greenhouse Gas Emissions

The Company has no greenhouse gas emissions to report from its operations, nor does it have responsibility for any other emissions producing sources under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013.

Under Listing Rule 15.4.29(R), the Company, as a closed ended investment company, is exempt from complying with the Task Force on Climate-related Financial Disclosures.

Duration

The Company does not have a fixed life. However, under its Articles of Association, if, in the 90 days preceding the Company's financial year end (30 April), the Ordinary shares have been trading, on average, at a discount in excess of 15% to the underlying NAV (including current year income, and with borrowings stated at market value) over the same period, notice will be given of an ordinary resolution to be proposed at the following Annual General Meeting to approve the continuation of the Company. If the resolution for the continuation of the Company is not passed at that Annual General Meeting or at any adjournment thereof, the Directors will convene a general meeting to be held not more than three months after the Annual General Meeting at which a special resolution for the winding-up of the Company will be proposed. In the 90 days to 30 April 2023 the average discount to the underlying NAV (including current year income, and with borrowings stated at market value) of the Ordinary shares was 12.6% and therefore no continuation resolution will be put to the Company's shareholders at this year's Annual General Meeting.

Viability Statement

As set out in more detail in the Charman's Statement, it is proposed that the Company combines with Asia Dragon Trust plc ("Asia Dragon"). The combination, if approved by each company's shareholders, will be effected by way of a scheme of reconstruction and winding up of the Company under section 110 of the Insolvency Act 1986 and the associated transfer of part of the assets and undertaking of the Company to Asia Dragon in exchange for the issue of new ordinary shares in Asia Dragon (the "Scheme"). The outcome of the general meetings to make the Scheme effective represents a material uncertainty in the context of the preparation of these financial statements on a going concern basis.

Notwithstanding this material uncertainty, for the purposes of this viability statement, the Board has decided that 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 also focused upon the following factors:

- The principal risks and uncertainties detailed below and the steps taken to mitigate these risks.

- The role of the Audit and Risk Committee in reviewing and monitoring the Company's internal control and risk management systems.

- The ongoing relevance of the Company's investment objective.

- The liquidity of the Company's portfolio. All of the Company's investments are in quoted securities in active markets or in collective investment schemes, and are considered to be liquid.

- The closed-ended nature of the Company which means that it is not subject to redemptions.

- The use of the Company's share buy back and share issuance policies to help address any imbalance of supply and demand for the Company's shares.

- The current and maximum levels of gearing, compliance with loan covenants and level of headroom within the financial covenants (see note 12 to the financial statements for details of loan covenants).

- The ability of the Company to refinance its loan facilities, on or before maturity.

- The potential requirement of the Board to propose a resolution to approve the continuation of the Company at future Annual General Meetings. As explained above, this is dependent upon the level of discount in the 90 days preceding the Company's financial year end and there is no requirement for such a resolution to be proposed at the Annual General Meeting.

- Regulatory or market changes.

- The level of the Company's ongoing charges.

- The robustness of the operations of the Company's third party service providers.

In making its assessment, the Board has considered that there are other matters that could have an impact on the Company's prospects or viability in the future, including the current conflict in Ukraine, economic shocks, significant stock market volatility, and changes in regulation or investor sentiment.

Outlook

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.

On behalf of the Board
Donald Workman
Chairman
16 August 2023

Promoting the Success of the Company

Introduction

Section 172 (1) of the Companies Act 2006 (the "Act") requires each Director to act in the way he/she considers, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole.

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 under that provision of the Act (the "Section 172 Statement"). This statement 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, amongst 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 and Role of the Board

The purpose of the Company is to act as a vehicle to provide, over time, financial returns (both income and capital) to its shareholders. Investment trusts, such as the Company, are long-term investment vehicles and are typically externally managed, have no employees, and are overseen by an independent non-executive board of directors. The Company's investment objective and investment policy are contained within the Overview of Strategy.

The Board, which at the end of the year comprised five non-executive Directors, four of whom are independent of the Manager, has a broad range of skills and experience across all major functions that affect the Company. The Board retains responsibility for taking all decisions relating to the Company's investment objective and policy, gearing, corporate governance and strategy, and for monitoring the performance of the Company's service providers.

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. The Board reviews the culture and manner in which the Manager and Investment Manager operate at its meetings and receives regular reporting and feedback from the other key service providers. The Board is very conscious of the ways it promotes the Company's culture and ensures as part of its regular oversight that the integrity of the Company's affairs is foremost in mind in the way that the activities are managed and promoted. The Board works very closely with the Manager and Investment Manager in reviewing how stakeholder issues are handled, ensuring good governance and responsibility in managing the Company's affairs, as well as visibility and openness in how the affairs are conducted.

The Company's main stakeholders are shareholders (who are also the Company's 'customers'), the Manager (and Investment Manager), service providers, investee companies, the debt provider and, more broadly, the environment and community.

How the Board Engages with Stakeholders

The Board considers its stakeholders at Board meetings and receives feedback on the Manager's interactions with them.

Stakeholder	How We Engage
Shareholders	Shareholders are key stakeholders and the Board places great importance on communication with them. The Board welcomes all shareholders' views and aims to act fairly to all shareholders. The Manager and Company's Stockbroker regularly meet with current and prospective shareholders to discuss performance and shareholder feedback is discussed by the Directors at Board meetings. In addition, Directors attend meetings with the Company's largest shareholders and meet other shareholders at the Annual General Meeting. The Company also supports the Manager's investor relations programme which involves regional roadshows, promotional and public relations campaigns. Regular updates are provided to shareholders through the Annual Report, Half Yearly Report, monthly factsheets, Company announcements, including daily net asset value announcements, and the Company's website.
Manager (and Investment Manager)	The Investment Manager's Review details the key investment decisions taken during the year. The Investment Manager has continued to manage the Company's assets in accordance with the mandate provided by shareholders, with oversight provided by the Board. The Board regularly reviews the Company's performance against its investment objective and the Board undertakes an annual strategy review meeting to ensure that the Company is positioned well for the future delivery of its objective for its stakeholders. The Board receives presentations from the Investment Manager at every Board meeting to help it to exercise effective oversight of the Investment Manager and the Company's strategy. The Board, through the Management Engagement Committee, formally reviews the performance of the Manager at least annually.
Service Providers	The Board seeks to maintain constructive relationships with the Company's suppliers either directly or through the Manager with regular communications and meetings. The Management Engagement Committee conducts an annual review of the performance, terms and conditions of the Company's main service providers to ensure they are performing in line with Board expectations and providing value for money.
Investee Companies	Responsibility for monitoring the activities of portfolio companies has been delegated by the Board to the Manager which has sub-delegated that authority to the Investment Manager. The Board has also given discretionary powers to the Manager to exercise voting rights on resolutions proposed by the investee companies within the Company's portfolio. The Manager reports on a quarterly basis on stewardship (including voting) issues. Through engagement and exercising voting rights, the Investment Manager actively works with companies to improve corporate standards, transparency and accountability. The Manager reports regularly to the Board on investment and engagement activity.
Debt Provider	On behalf of the Board, the Manager maintains a positive working relationship with The Royal Bank of Scotland International Limited, the provider of the Company's loan facilities, and provides regular updates on business activity and compliance with its loan covenants.
Environment and Community	The Board and Manager are committed to investing in a responsible manner and the Investment Manager embeds Environmental, Social and Governance ("ESG") considerations into the research and analysis as part of the investment decision-making process.

Specific Examples of Stakeholder Consideration During the Year

While the importance of giving due consideration to the Company's stakeholders is not a new requirement, and is considered during every Board decision, the Directors were particularly mindful of stakeholder considerations during the following decisions undertaken during the year ended 30 April 2023. Each of these decisions was made after taking into account the short and long terms benefits for stakeholders.

Portfolio

The Investment Manager's Review details the key investment decisions taken during the year. In the opinion of the Board, the performance of the investment portfolio is the key factor in determining the long term success of the Company. Accordingly, at each Board meeting the Directors discuss performance in detail with the Investment Manager. In addition, the Board considers how the Investment Manager incorporates ESG issues into its research and analysis work that forms part of the investment decision process.

During the year the Management Engagement Committee decided that the continuing appointment of the Manager was in the best interests of shareholders.

Dividend

Since the year end, the Board has declared a second interim dividend in respect of the year ended 30 April 2023, of 3.3p per Ordinary share. Following payment of the second interim dividend on 8 September 2023, total dividends for the year will amount to 4.3p per Ordinary share, unchanged compared to the previous year.

Share Buy Backs

During the year the Company bought back 1,706,000 Ordinary shares to be held in treasury, providing a small accretion to the NAV per share and a degree of liquidity to the market at times when the discount to the NAV per share had widened in normal market conditions. It is the view of the Board that this policy is in the interest of all shareholders.

Proposed Combination with Asia Dragon plc

As set out in more detail in the Charman's Statement, following the year end, on 21 July 2023, the Company announced a proposal for the Company to combine with Asia Dragon Trust plc ("Asia Dragon"). The combination, if approved by each company's shareholders, will be effected by way of a scheme of reconstruction and winding up of the Company under section 110 of the Insolvency Act 1986 and the associated transfer of part of the assets and undertaking of the Company to Asia Dragon in exchange for the issue of new ordinary shares in Asia Dragon (the "Scheme").

The Board believes a combination of the companies will create an enlarged vehicle that offers similar investment exposure for each set of shareholders while offering shareholders in the enlarged Asia Dragon (and therefore to Shareholders who roll into Asia Dragon) benefits that include greater secondary liquidity in Asia Dragon shares and cost efficiencies.

On behalf of the Board
Donald Workman
Chairman
16 August 2023

Performance

Performance (total return)

	1 year return	3 year return	5 year return
	%	%	%
Net asset value^A	-6.8	+18.9	+17.9
Share price^A	-7.3	+21.3	+19.9
MSCI AC Asia Pacific ex Japan Index (currency adjusted)	-5.2	+16.7	+14.0
^A Alternative Performance Measure.

Ten Year Financial Record

Year to 30 April	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
Total revenue (£'000)	6,819	7,412	7,004	6,922	7,481	7,442	7,738	7,558	6,670	7,612
Per share (p)
Net revenue return	3.79	4.18	4.06	4.05	4.47	4.30	4.61	4.24	3.71	4.82
Total return	(18.68)	31.74	(34.72)	68.66	30.97	11.88	(15.45)	112.18	(41.10)	(22.18)
Net dividends paid/proposed	3.60	3.80	3.90	4.00	4.30	4.30	4.30	4.30	4.30	4.30
Net asset value	188.49	216.67	179.43	244.90	272.41	281.12	261.63	369.97	325.17	299.20
Shareholders' funds (£'000)	234,762	269,398	216,243	286,191	311,816	314,411	289,285	403,005	346,952	314,133

Dividends

	Rate per share	XD date	Record date	Payment date
First interim 2023	1.00p	5 January 2023	6 January 2023	10 February 2023
Second interim 2023	3.30p	10 August 2023	11 August 2023	8 September 2023
Total 2023	4.30p

Interim 2022	1.00p	6 January 2022	7 January 2022	11 February 2022
Final 2022	3.30p	4 August 2022	5 August 2022	9 September 2022
Total 2022	4.30p

Investment Manager's Review

Market and Portfolio Review

Asia Pacific equities declined over the 12 months to 30 April 2023, amid the uncertainty that weighed on markets globally. A combination of higher inflation, accelerated by the ongoing conflict in Ukraine, tightening monetary policies, rising input costs and recent banking sector events in the West have sparked fears of a global economic recession. Against this backdrop, the Company's net asset value ("NAV") and share price, both in total returns terms, declined 6.8% and 7.3%, respectively, and lagged the benchmark, which declined by 5.2%. However, over the past three and five years, the Company's NAV and share price total returns have done better than the benchmark, highlighting the support from our high-quality holdings.

In terms of performance, the portfolio's direct exposure to China was the main detractor, which was partly offset by the position in Hong Kong. Chinese authorities announced an unexpected U-turn from their "zero-Covid" policy to a complete re-opening in late 2022. However, the negative impacts from prolonged lockdowns and regulatory pressures, especially on the property sector, could not be quickly undone. While many of the holdings in the portfolio, especially in the technology and consumer discretionary sectors, stand to benefit from the re-opening, we have yet to see corporate earnings increase meaningfully. To this end, gaming company Sands China was a key performer, being a direct beneficiary of the re-opening and easing travel restrictions. Its recent quarterly results were ahead of the market's expectations. Insurer AIA Group and beer company Budweiser Brewing added to returns amid a recovery in the Hong Kong market. We view both as high-quality exposures to China's growth.

The exposure to Chinese renewable energy companies was not beneficial to performance, with poor share price performances from Yunnan Energy New Material and LONGi Green Energy Technology, partly as investors chased opportunities from the re-opening. Yunnan's shares were volatile after an announcement of a probe into its chairman and vice chairman. We subsequently sold the position as our conviction in the company diminished. Having said that, on a positive note, the holding in Sungrow Power Supply was beneficial following robust results, especially in the most recent quarter. China's strained relations with the US was another aspect over the period that affected investor sentiment. Pharmaceutical company Wuxi Biologics, a company that has fundamentally performed well, detracted due to a series of regulatory hurdles where two of its subsidiaries were temporarily added by the US to a trade restriction list before being removed by the end of December.

Meanwhile, the Chinese government announced further supportive measures to help the property sector recovery and appears to be easing its regulatory scrutiny into technology companies. These changes, together with investors moving towards value, benefited technology companies later in the financial year. However, while technology companies, including Tencent, have started to benefit from the re-opening, online retailer JD.com underperformed due to concerns around slowing growth and high competition.

In terms of portfolio positioning and strategy, we added more positions in China over the year as we remain confident in the holdings and the turnaround potential post the re-opening, especially in the technology sector. We therefore added to several internet and consumer holdings such as Tencent and Kweichow Moutai that should benefit from an increase in consumer confidence and spending. In the healthcare sector, we initiated Aier Eye Hospital, China's largest domestic private eyecare hospital chain. Its demand is supported by the ageing population, rising living standards, and government policies to improve the accessibility and standards of drugs and healthcare. We also bought Chinese food delivery and local services app company Meituan Dianping, which we regard as a long-term growth story which should benefit from China's shift towards a service-driven economy and increasing online penetration. Against these additions to the portfolio, we exited the industrial automation business Shenzhen Inovance Technology. It is a highly cyclical business and felt the impact of a sharp drop in property construction, while rising raw material and freight costs weighed on its margins.

The portfolio's exposure to India, through the Aberdeen Standard SICAV I - Indian Equity Fund, did not do well this year, as the market was dominated by one conglomerate throughout the period - Adani Group. The Indian Equity Fund does not hold any Adani companies as we consider the group to be low quality, but this event had an impact on the market as a whole.

Elsewhere, in Vietnam, the holding in Mobile World lagged the benchmark. In South Korea, LG Chem performed well as markets expect increased demand for its petrochemical business after China's re-opening. We think the momentum of its electric vehicle batteries business is attractive. The Australian holdings also benefited performance as mining companies such as BHP performed well, benefiting from the spike in commodity prices. During the year, we also received shares in the oil and gas company Woodside Energy from a corporate action.

The Company's holdings in the information technology ("IT") sector weighed on performance, driven in part by the market's negative sentiment towards the sector. The portfolio's positions in Taiwan Semiconductor Manufacturing Company ("TSMC") and Samsung Electronics lagged the benchmark, while the holding in ASML was beneficial. While ASML's shares rose in value due to a gradual improvement of the macroeconomic outlook and better visibility of the semiconductor cycle, an escalation of US-China tensions partly weighed on the share price performance. Over the year, we responded to the looming fears of a global recession and soft demand outlook for IT by reducing exposure to internet companies. We remain optimistic for a sector-wide turnaround within the next financial year and continue to gradually add back to the semi-conductor and hardware positions. Elsewhere, the consumer discretionary sector also weighed on performance due to relative weakness in consumer confidence and spending. However, as mentioned above, we expect a turnaround in consumption, especially with the re-opening in China.

Meanwhile, in the banking sector, the collapse of two US regional banks and the takeover of Credit Suisse by UBS in Europe raised concerns of contagion effects. However, the Company's holdings in Asians banks were not directly impacted by these events and remain well insulated, with strong balance sheets, while also benefiting from increasing net interest margins. On that note, Indonesia's Bank Central Asia and Oversea-Chinese Banking Corporation and DBS Group Holdings in Singapore contributed positively to performance. Meanwhile, we maintain the overweight and well-diversified exposure to the healthcare sector as we expect a turnaround in consumer spending to benefit those holdings.

Environmental, Social and Governance ("ESG")

ESG remains a core focus area as we continue to invest in high-quality companies. We are convinced that companies with strong ESG practices are more resilient, especially during turbulent times. To that end, we have invested in our resources to ensure we continue to identify strong stewards of ESG. For instance, when investing in Woodside Energy, we considered the effect of its decarbonisation strategy.

We frequently engage with investee companies to review their progress in ESG matters and ensure they meet our standards. For example, during the year we engaged with Tencent to better understand its policies and progresses around data security and privacy. Tencent provided a comprehensive multi-vector analysis of its data security and privacy management and noted the limited instances where data might be shared with the government and its protection policies around this process. Subsequently, we noted it had published several privacy and data security policies on its website, following our suggestions to improve disclosure. Tencent had also applied to become a United Nations Global Compact signatory, highlighting its commitment to ESG. Furthermore, it has removed the mandate to re-issue repurchased shares and reduced its general issuance mandate from 20% to 10%. It is also committed to achieving 30% female representation on its board by 2030, which we are monitoring.

Meanwhile, we continued our long-standing engagement with Samsung Electronics by attending its annual general meeting ("AGM") in person in Suwon, South Korea. While we had a one-to-one discussion with management ahead of the AGM to engage on agenda items and enhanced disclosures, the AGM provided an opportunity to meet the directors and show our support for the company's ongoing efforts to make progress on governance and disclosure.

Outlook

Investors continue to navigate uncertain times due to global macroeconomic challenges and geopolitical volatility. That said, inflation is more benign in Asia, especially in China, providing support to the region's economic health. Furthermore, Asian banks have not had any direct impact from the banking sector events in the US and Europe. While China remains a challenging market, we expect its re-opening to increase consumer confidence and consumption, as well as support Southeast Asian economies.

The technology sector would benefit from re-opening tailwinds and an increase in consumer spending. We think the technology cycle will bottom out in the near future and see the potential for a meaningful recovery in this calendar year. While there has been a lag of re-opening tailwinds translating into earnings growth, markets expect technology companies to produce higher earnings in the next financial year. Therefore, we are confident of the portfolio's sizable exposure to the sector and continue to add to companies with strong fundamentals and potential for outperformance. Elsewhere, we are optimistic that a surge in consumption would support the holdings in the consumer discretionary and healthcare sectors.

Within India, we expect the holdings in the commodities and financials sectors to benefit from cyclical tailwinds and policy support. In Australia, the inflationary effects on commodity prices should continue to help mining and energy companies, despite a challenging macroeconomic backdrop.

Amid the ongoing uncertainty, we believe our focus on investing in quality companies with solid fundamentals will prove beneficial over the long term and help your Company navigate challenging market conditions.

James Thom and Xin-Yao Ng
abrdn Asia Limited
16 August 2023

Principal Risks and Uncertainties

The Board carries out a regular review of the risk environment in which the Company operates, changes to the environment and individual risks. The Board also considers emerging risks which might affect the Company. During the year, the most significant emerging risks were inflation and rising interest rates and the resultant volatility that these factors created in global stock markets. In addition, the conflict in Ukraine and continued tensions between China and the USA have created geo-political uncertainties which have further increased market risk and volatility (see exogenous risks below).

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. The Board has carried out a robust assessment of the Company's principal and emerging risks, which include those that would threaten its business model, future performance, solvency, liquidity or reputation.

The principal and emerging risks and uncertainties faced by the Company are reviewed by the Audit and Risk Committee in the form of risk matrices. The principal risks and uncertainties facing the Company at the current time, together with a description of the mitigating actions the Board has taken, are set out in the table below.

The principal risks associated with an investment in the Company's shares are published monthly in the Company's factsheet and they can be found in the pre-investment disclosure document ("PIDD") published by the Manager, both of which are available on the Company's website.

Risk		Mitigating Action
Investment strategy and objectives - the setting of an unattractive strategic proposition to the market and the failure to adapt to changes in investor demand may lead to the Company becoming unattractive to investors, a decreased demand for its shares and a widening discount.		The Board keeps the level of discount at which the Company's shares trade, as well as the investment objective and policy, under review and holds an annual strategy meeting where it reviews investor relations reports and updates from the Investment Manager and the Company's Stockbroker. The Directors are updated at each Board meeting on the composition of, and any movements in, the shareholder register.
Investment management - poor stock selection or investing outside of the investment restrictions and guidelines set by the Board could result in poor performance and an inability to meet the Company's objectives, as well as a widening discount.		The Board meets the Manager on a regular basis and keeps investment performance under close review. Representatives of the Investment Manager attend all Board meetings and a detailed formal appraisal of the abrdn Group is carried out annually by the Management Engagement Committee. The Board sets, and monitors, the investment restrictions and guidelines, and receives regular reports which include performance reporting on the implementation of the investment policy, the investment process and application of the guidelines. The Board also monitors the Company's share price relative to the NAV per share.
Income/dividends - the level of the Company's dividends and future dividend growth will depend on the performance of the underlying portfolio. Any change in the tax treatment of dividends or interest received by the Company may reduce the level of net income available for the payment of dividends to shareholders.		The Directors review detailed income forecasts at each Board meeting. The Company has built up significant revenue reserves which can be drawn upon if required should there be a shortfall in revenue returns.
Financial - the financial risks associated with the portfolio could result in losses to the Company.		The financial risks associated with the Company include market risk, liquidity risk and credit risk, all of which are mitigated, to some extent, by the Investment Manager. Further details of the steps taken to mitigate the financial risks associated with the portfolio are set out in note 17 to the financial statements.
Gearing - a fall in the value of the Company's investment portfolio could be exacerbated by the impact of gearing. It could also result in a breach of loan covenants.		The Board sets the gearing limits within which the Investment Manager can operate. Gearing levels and compliance with loan covenants are monitored on an ongoing basis by the Manager and at regular Board meetings. In the event of a possible impending covenant breach, appropriate action would be taken to reduce borrowing levels. In addition, abrdn Fund Managers Limited, as the Alternative Investment Fund Manager, has set overall leverage limits.
Regulatory - failure to comply with relevant laws and regulations (including the Companies Act, The Financial Services and Markets Act, The Alternative Investment Fund Managers Directive, accounting standards, investment trust regulations, the Packaged Retail and Insurance-based Investment Products Regulations, the Listing Rules, Disclosure Guidance and Transparency Rules, Prospectus Rules and corporate governance regulations) could result in fines, loss of reputation and potentially loss of an advantageous tax regime.		The Board and Manager monitor changes in government policy and legislation which may have an impact on the Company, and the Audit and Risk Committee monitors compliance with regulations by reviewing internal control reports from the Manager. From time to time the Board employs external advisers to advise on specific matters.
Operational - the Company is dependent on third parties for the provision of all systems and services (in particular, those of the abrdn Group) and any control failures and gaps in their systems and services, including in relation to cyber security, could result in fraudulent activities or a loss or damage to the Company. Written agreements are in place with all third party service providers.		The Board receives reports from the Manager on its internal controls and risk management throughout the year, including those relating to cyber crime, and receives assurances from all its other significant service providers on at least an annual basis. The Manager monitors closely the control environments and quality of services provided by third parties, including those of the Depositary, through service level agreements, regular meetings and key performance indicators.
Exogenous risks such as health, social, financial, economic and geo-political - the financial impact of such risks, associated with the portfolio or the Company itself, could result in losses to the Company.		Exogenous risks over which the Company has no control are always a risk. The diversified nature of the portfolio and a managed level of gearing all serve to provide a degree of protection in times of volatile markets.

Investment Portfolio

As at 30 April 2023
			Valuation	Total	Valuation
			2023	assets^A	2022
Company	Industry	Country	£'000	%	£'000
abrdn SICAV I - Indian Equity Fund^B	Collective Investment Scheme	India	48,348	14.1	48,696
Taiwan Semiconductor Manufacturing Company	Semiconductors & Semiconductor Equipment	Taiwan	27,125	7.9	32,261
AIA Group	Insurance	Hong Kong	21,690	6.3	19,372
Tencent Holdings	Interactive Media & Services	China	18,908	5.5	16,844
Samsung Electronics Pref	Technology Hardware, Storage & Peripherals	South Korea	16,637	4.8	27,893
BHP Group	Metals & Mining	Australia	12,892	3.8	12,401
CSL	Biotechnology	Australia	10,574	3.1	11,785
Budweiser Brewing	Beverages	Hong Kong	9,894	2.9	5,320
ASML	Semiconductors & Semiconductor Equipment	Netherlands	8,798	2.6	7,828
LG Chem	Chemicals	South Korea	7,766	2.3	5,654
Top ten investments			182,632	53.3
Bank Central Asia	Banks	Indonesia	7,759	2.3	9,921
Alibaba Group	Broadline Retail	China	7,671	2.2	5,801
Oversea-Chinese Banking Corporation	Banks	Singapore	7,380	2.2	9,261
abrdn New India Investment Trust^B	Closed End Investments	India	6,985	2.0	7,384
DBS Group Holdings	Banks	Singapore	6,833	2.0	10,871
Woodside Energy	Oil, Gas & Consumable Fuels	Australia	6,665	2.0	-
Cochlear	Health Care Equipment & Supplies	Australia	6,373	1.9	7,097
Kweichow Moutai - A shares	Beverages	China	5,966	1.7	4,210
M.P. Evans Group	Food Products	United Kingdom	4,949	1.4	5,512
China Tourism Group Duty Free^C	Specialty Retail	China	4,942	1.4	6,120
Top twenty investments			248,155	72.4
Ayala Land	Real Estate Management & Development	Philippines	4,909	1.4	6,270
Meituan Dianping - Class B	Hotels, Restaurants & Leisure	China	4,902	1.4	-
Hong Kong Exchanges & Clearing	Capital Markets	Hong Kong	4,859	1.4	6,462
Shenzhen Mindray Bio-Medical Electronics - A shares	Health Care Equipment & Supplies	China	4,836	1.4	4,271
Telekom Indonesia	Telecommunications Service Providers	Indonesia	4,748	1.4	-
Samsung Biologics	Life Sciences Tools & Services	South Korea	4,379	1.3	5,013
China Merchants Bank - A shares	Banks	China	4,228	1.2	5,893
Sands China	Hotels, Restaurants & Leisure	Hong Kong	4,175	1.2	2,649
Wuxi Biologics (Cayman)	Life Sciences Tools & Services	China	4,021	1.2	6,019
FPT Group	IT Services	Vietnam	3,920	1.2	3,970
Top thirty investments			293,132	85.5
Rio Tinto (London Listing)	Metals & Mining	Australia	3,699	1.1	4,182
JD.com	Broadline Retail	China	3,399	1.0	1,258
Cisarua Mountain Dairy	Food Products	Indonesia	3,284	0.9	2,900
Yonyou Network Technology - A shares	Software	China	3,113	0.9	1,664
Aier Eye Hospital Group - A shares	Health Care Providers & Services	China	3,073	0.9	-
LONGi Green Energy Technology - A shares	Semiconductors & Semiconductor Equipment	China	3,036	0.9	4,644
Sungrow Power Supply - A shares	Electrical Equipment	China	3,033	0.9	3,597
China Resources Land	Real Estate Management & Development	China	2,996	0.9	3,435
Mobile World	Specialty Retail	Vietnam	2,977	0.9	5,175
abrdn Asia Focus ^B	Closed End Investments	Other Asia	2,959	0.8	3,310
Top forty investments			324,701	94.7
Foshan Haitan Flavouring & Food Co - A shares	Food Products	China	2,648	0.8	-
NARI Technology - A shares	Electrical Equipment	China	2,576	0.8	3,869
Venture Corp	Electronic Equipment, Instruments & Components	Singapore	2,501	0.7	2,444
Zhongsheng Group	Specialty Retail	China	2,407	0.7	2,318
John Keells Holdings	Industrial Conglomerates	Sri Lanka	2,011	0.6	1,624
Centre Testing International Group - A shares	Professional Services	China	1,902	0.6	2,251
GDS - A shares	IT Services	China	1,853	0.5	3,114
Total investments			340,599	99.4
Net current assets^D			2,166	0.6
Total assets^A			342,765	100.0

^B Holding also managed by the abrdn Group but not subject to double charging of management fees.
^C Holding comprises of A & H shares.
^D Excluding short-term bank loans of £28,632,000

Note: Unless otherwise stated, foreign stock is held and all investments are equity holdings.

Changes in Asset Distribution

	Value at		Sales	Appreciation/	Value at
	30 April 2022	Purchases	proceeds	(depreciation)	30 April 2023
Country	£'000	£'000	£'000	£'000	£'000
Australia	45,187	10,903	(15,530)	(357)	40,203
China	83,286	36,026	(18,519)	(15,283)	85,510
Hong Kong	38,038	5,417	(6,172)	3,335	40,618
India	56,080	4,250	-	(4,997)	55,333
Indonesia	12,821	5,410	(3,587)	1,147	15,791
Netherlands	7,828	1,804	(1,249)	415	8,798
New Zealand	2,699	-	(2,432)	(267)	-
Other Asia	3,310	-	-	(351)	2,959
Philippines	6,270	-	-	(1,361)	4,909
Singapore	22,576	653	(7,384)	869	16,714
South Korea	41,846	851	(10,960)	(2,955)	28,782
Sri Lanka	1,624	-	-	387	2,011
Taiwan	32,261	3,341	(5,015)	(3,462)	27,125
Thailand	2,703	-	(2,463)	(240)	-
United Kingdom	5,512	-	-	(563)	4,949
Vietnam	11,656	1,073	(2,469)	(3,363)	6,897
Total investments	373,697	69,728	(75,780)	(27,046)	340,599
Net current assets^A	6,737	-	-	(4,571)	2,166
Total assets less current liabilities	380,434	69,728	(75,780)	(31,617)	342,765
^A Excluding short-term bank loans of £28,632,000 (2022 - £13,504,000).

Directors' Report (extract)

The Directors present their report and the audited financial statements for the year ended 30 April 2023.

Results and Dividends

The financial statements for the year ended 30 April 2023 are contained below. A first interim dividend of 1.0p per Ordinary share was paid on 10 February 2023 and the Board has declared a second interim dividend in respect of the year ended 30 April 2023, of 3.3p per Ordinary share, payable on 8 September 2023 to shareholders on the register on 11 August 2023. The relevant ex-dividend date is 10 August 2023.

Investment Trust Status

The Company is registered as a public limited company (registered in England and Wales No. 02377879) and is an investment company within the meaning of Section 833 of the Companies Act 2006. The Company has been approved by HM Revenue & Customs as an investment trust subject to it 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 May 2012. The Directors are of the opinion that the Company has conducted its affairs for the year ended 30 April 2023 so as to enable it to comply with the ongoing requirements for investment trust status.

Individual Savings Accounts

The Company has conducted its affairs in such a way 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

The issued Ordinary share capital at 30 April 2023 consisted of 104,991,348 Ordinary shares of 5p and 7,874,351 shares held in treasury. During the year the Company purchased 1,706,000 Ordinary shares to be held in treasury and it cancelled 4,233,350 treasury shares. Since the end of the year, the Company has purchased a further 420,000 Ordinary shares to be held in treasury. At the date of approval of this Report there were 104,571,348 Ordinary shares of 5p in issue and 8,294,351 shares held in treasury.

Voting Rights

Each Ordinary shareholder is entitled to one vote on a show of hands at a general meeting of the Company and, on a poll, to one vote for every share held. 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 from time to time be imposed by law.

Management Agreement

The Company has appointed abrdn Fund Managers Limited ("aFML"), a wholly owned subsidiary of abrdn plc, as its alternative investment fund manager. aFML has been appointed to provide investment management, risk management, administration and company secretarial services and promotional activities to the Company. The Company's portfolio is managed by abrdn Asia Limited ("abrdn Asia") by way of a group delegation agreement in place between aFML and abrdn Asia. In addition, aFML has sub-delegated promotional activities to abrdn Investments Limited and administration and company secretarial services to abrdn Holdings Limited. Details of the management fee during the year and fees payable for promotional activities are shown in notes 4 and 5 to the financial statements.

The management agreement is terminable on not less than 12 months' notice. In the event of termination by the Company on less than the agreed notice period, compensation is payable to the Manager in lieu of the unexpired notice period.

Substantial Interests

At 30 April 2023 the following interests in the issued Ordinary share capital of the Company had been disclosed in accordance with the requirements of the FCA's Disclosure Guidance and Transparency Rules.

Shareholder	Number of Ordinary shares held	% held^B
City of London Investment Management Company Limited	27,354,703	26.1
Allspring Global Investments Holdings LLC	11,663,340	11.1
abrdn Investment Trust Share Plans^A	7,944,812	7.6
Close Asset Management Limited	5,305,699	5.1
Lazard Asset Management LLC	5,182,427	4.9
1607 Capital Partners LLC	4,026,274	3.8

^A Non-beneficial interest

^B Based on 104,991,348 Ordinary shares in issue as at 30 April 2023

Since the end of the year, City of London Investment Management Company Limited has notified the Company of a holding of 28,258,791 Ordinary shares (27.0%). There have been no other changes notified to the Company as at the date of approval of this Report.

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 can be found on its website.

Directors

Throughout the year, the Board comprised five Directors, consisting of a non-executive Chairman and four non-executive Directors. All Directors, with the exception of Mr Young, are considered by the Board to be independent and free of any material relationship with the abrdn Group. Mr Young is a director of various entities connected with, or within, the abrdn Group and, as such, is not considered to be independent.

The Directors attended scheduled Board and Committee meetings during the year ended 30 April 2023 as shown in the table below (with their eligibility to attend the relevant meeting in brackets).

Director	Board Meetings	Audit and Risk Committee Meetings	Nomination Committee Meetings	Management Engagement Committee Meetings
D Workman^A	6 (6)	- (-)	1 (1)	1 (1)
M Sears	6 (6)	2 (2)	1 (1)	1 (1)
S Souchon	6 (6)	2 (2)	1 (1)	1 (1)
H Young^B	6 (6)	- (-)	1 (1)	- (-)
N Yuen	6 (6)	2 (2)	1 (1)	1 (1)
^A Mr Workman is not a member of the Audit and Risk Committee. ^B Mr Young is not a member of the Audit and Risk or Management Engagement Committees.

The Board meets more frequently when business needs require. There were four such additional Board and Board Committee meetings held during the year.

The Company's Articles of Association require that Directors must retire and be subject to election at the first Annual General Meeting after their appointment, and that one third of the Directors retire by rotation at each Annual General Meeting, and that any Director who was not elected or re-elected at one of the preceding two Annual General Meetings also retires by rotation at the Annual General Meeting. However, the Board has decided that, notwithstanding the provisions of the Articles of Association, all Directors will retire at each Annual General Meeting and, if eligible, may seek re-election.

The Board believes that all the Directors, other than Mr Young, remain independent of the Manager and free from any relationship which could materially interfere with the exercise of their judgement on issues of strategy, performance, resources and standards of conduct. The Board believes that each Director has the requisite high level and range of business, investment and financial experience which enables the Board to provide clear and effective leadership and proper governance of the Company. Following formal performance evaluations, each Director's performance continues to be effective and demonstrates commitment to the role, and their individual performances contribute to the long-term sustainable success of the Company.

Mr Young was appointed as a Director in May 1989 and, as stated above, is not independent due to his involvement with various entities within the abrdn Group. Mr Young has significant experience of markets in the Asia Pacific region and provides invaluable input to Board discussions.

Board's 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 regular refreshment 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/her appointment to the Board. However, this may be extended in certain 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.

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 acts upon the results of the Board evaluation process by recognising strengths and addressing any weaknesses and also ensures that the Board engages with major shareholders and 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 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.

Directors' and Officers' Liability Insurance

The Company's Articles of Association indemnify each of the Directors out of the assets of the Company against any liabilities incurred by them as a Director of the Company in defending proceedings, or in connection with any application to the Court in which relief is granted. In addition, the Company has entered into separate deeds of indemnity with each of the Directors, reflecting the scope of the indemnity in the Articles. Directors' and Officers' liability insurance cover has been maintained throughout the year at the expense of the Company.

Management of Conflicts of Interest

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, each Director prepares a list of 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 all Directors are issued with letters of appointment. Other than Mr Young, and the deeds of indemnity referred to above, there were no contracts during, or at the end of the year, in which any Director was interested.

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 Manager 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 Manager's anti-bribery and corruption policies are available on its website.

In relation to the corporate offence of failing to prevent tax evasion, it is the Company's policy to conduct all business in an honest and ethical manner. The Company takes a zero-tolerance approach to facilitation of tax evasion whether under UK law or under the law of any foreign country and is committed to acting professionally, fairly and with integrity in all its business dealings and relationships.

Board Diversity

The Board recognises the importance of having a range of skilled and 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. The Board will not display any bias for age, gender, race, sexual orientation, socio-economic background, 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 in the tables below.

The Board has resolved that the Company's year end date is the most appropriate date for disclosure purposes. The following information has been provided by each Director through the completion of questionnaires. There have been no changes since the year end.

Board Gender as at 30 April 2023

	Number of Board members	Percentage of the Board	Number of senior positions on the Board (CEO, CFO, Chairman and SID)	Number in executive management	Percentage of executive management
Men	3	60%	n/a (note 3)	n/a	n/a
Women	2	40% (note 1)
Not specified/prefer not to say	-	-

Board Ethnic Background as at 30 April 2023

	Number of Board members	Percentage of the Board	Number of senior positions on the Board (CEO, CFO, Chairman and SID)	Number in executive management	Percentage of executive management
White British or other White (including minority-white groups)	4	80%	n/a (note 3)	n/a	n/a
Asian	1 (note 2)	20%
Other ethnic group	-	-
Not specified/prefer not to say	-	-

Notes:

1. Meets target of at least 40% as set out in LR 9.8.6R (9)(a)(i)

2. Meets target of at least 1 as set out in LR 9.8.6R (9)(a)(iii)

3. This column is inapplicable as the Company is externally managed and does not have executive management functions, specifically it does not have a CEO or CFO. The Company considers that the role of Chairman, Senior Independent Director ("SID"), and the chairmen of the Audit and Risk Committee, Nomination Committee and Management Engagement Committee are senior positions. Of these five senior roles, four are performed by men and one by a women, and all five are held by Directors classified as 'White British or other White (including minority-white groups)'.

Going Concern

As set out in more detail in the Charman's Statement, it is proposed that the Company combines with Asia Dragon Trust plc ("Asia Dragon"). The combination, if approved by each company's shareholders, will be effected by way of a scheme of reconstruction and winding up of the Company under section 110 of the Insolvency Act 1986 and the associated transfer of part of the assets and undertaking of the Company to Asia Dragon in exchange for the issue of new ordinary shares in Asia Dragon (the "Scheme"). The outcome of the general meetings to make the Scheme effective represents a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern.

Notwithstanding this material uncertainty, the Board has concluded that it remains appropriate to continue to prepare the financial statements on a going concern basis. In reaching this conclusion, the Board has come to the view that, as the Scheme is contingent on shareholder approval and the Company is considered solvent in all other regards, there is no irrevocable path to liquidation and thus going concern remains the most appropriate basis for preparation. In reaching this conclusion, the Board has also given due consideration to the risks associated with the Scheme.

The Board has also given consideration to the liquidity of the investment portfolio. The Company's assets consist substantially of equity shares in companies listed on recognised stock exchanges and in most circumstances are realisable within a short timescale. The Board regularly reviews income and expenditure projections and has set limits for borrowing and reviews compliance with banking covenants, including the headroom available.

At the year end, the Company's borrowing facilities amounted to £40 million, comprising a fixed rate loan of £20 million, which matures in December 2023, and a £20 million multi-currency revolving loan facility maturing in June 2024. In the event of the Company being unable to renew the facilities on their maturity, it is anticipated that they would be repaid from proceeds of investment sales.

In considering the going concern basis of accounting, the Directors have also taken into account the potential requirement of the Board to propose a resolution to approve the continuation of the Company at future Annual General Meetings. As explained under "Duration" above, this is dependent upon the level of discount in the 90 days preceding the Company's financial year end and there is no requirement for such a resolution to be proposed at the Annual General Meeting .

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 they have taken all the steps that they could reasonably be expected to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the Company's Auditor is aware of that information.

Financial Instruments

The financial risk management objectives and policies arising from financial instruments and the exposure of the Company to risk are disclosed in note 17 to the financial statements.

Relations with Shareholders

The Directors place a great deal of importance on communication with shareholders. Shareholders and investors may obtain up to date information on the Company through its website and the Manager's Customer Services Department (see Contact Addresses).

The Board's policy is to communicate directly with shareholders and their representative bodies without the involvement of the management group (including the Company Secretary or the Manager) in situations where direct communication is required, and representatives from the Board and Manager meet with major shareholders on at least an annual basis in order to gauge their views. In addition, the Company Secretary only acts on behalf of the Board, not the Manager, and there is no filtering of communication.

At each Board meeting the Board receives full details of any communication from shareholders to which the Chairman responds personally as appropriate.

The Company has adopted a nominee code which ensures that, when shares in the Company are held in the name of nominee companies and notification has been received in advance, nominee companies will be provided with copies of shareholder communications for distribution to their investors. Nominee investors may attend and speak at general meetings.

Participants in the abrdn Investment Plan for Children, Investment Trust Share Plan and Investment Trust ISA, whose shares are held in the nominee name of the plan administrator, are given the opportunity to vote at general meetings of the Company by means of a Letter of Direction provided to them. When forwarded to the plan administrator, the voting instructions given in the Letter of Direction will in turn be reflected in the proxy votes lodged by the plan administrator.

Share Buy Backs

The Company bought back 1,706,000 Ordinary shares during the year ended 30 April 2023, representing 1.6% of the issued share capital, with the aim of providing a degree of liquidity to the market at times when the discount to the net asset value per share has widened in normal market conditions. It is the view of the Board that the Company's share buy back policy is in the interests of all shareholders. The Board closely monitors the discount and reviews the operation of the share buy back policy at each Board meeting as well as considering other options for managing the discount.

Treasury Shares

As part of its liquidity management policy, the Company currently has powers to buy back its own shares at a discount to the net asset value per share and to hold them in treasury (instead of cancelling them) as well as to sell treasury shares at a premium to the net asset value
per share.

It is the Company's policy that, in the event that the number of treasury shares represents more than 10% of the Company's issued share capital (excluding treasury shares) at the end of any financial year, the Company will cancel a proportion of its treasury shares such that the remaining balance will equal 7.5% of the issued share capital (excluding treasury shares). Accordingly, 4,233,350 treasury shares were cancelled on 30 April 2023. Shares remaining in treasury may be held indefinitely. No dividends will be paid on treasury shares, and no voting rights attach to them. No treasury shares were cancelled during the year.

By order of the Board
abrdn Holdings Limited
Company Secretary
16 August 2023

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 the Directors are required to prepare the financial statements in accordance with UK accounting standards, including FRS 102 'The Financial Reporting Standard Applicable in the UK and Republic
of Ireland'.

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 and prudent;

- state whether applicable UK 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 the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is 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.

Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Statement of Corporate Governance that comply with that law and those regulations.

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

The Board confirms that to the best of its 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;

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

- 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.

On behalf of the Board
Donald Workman
Chairman
16 August 2023

Statement of Comprehensive Income

		Year ended 30 April 2023			Year ended 30 April 2022
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Losses on investments	10	-	(27,046)	(27,046)	-	(46,172)	(46,172)
Income	3	7,612	-	7,612	6,670	-	6,670
Management fee	4	(945)	(945)	(1,890)	(1,170)	(1,170)	(2,340)
Administrative expenses	5	(747)	-	(747)	(723)	-	(723)
Exchange losses		-	(139)	(139)	-	(640)	(640)
Net return before finance costs and taxation		5,920	(28,130)	(22,210)	4,777	(47,982)	(43,205)
Finance costs	6	(473)	(473)	(946)	(406)	(406)	(812)
Return before taxation		5,447	(28,603)	(23,156)	4,371	(48,388)	(44,017)
Taxation	7	(342)	-	(342)	(366)	-	(366)
Return after taxation		5,105	(28,603)	(23,498)	4,005	(48,388)	(44,383)

Return per Ordinary share (pence)	9	4.82	(27.00)	(22.18)	3.71	(44.81)	(41.10)

The total column of this statement represents the profit and loss account of the Company.
The Company does not have any income or expense that is not included in "Return after taxation" and therefore this represents the "Total comprehensive income for the year".
All revenue and capital items are derived from continuing operations.
The accompanying notes are an integral part of the financial statements.

Statement of Financial Position

		As at	As at
		30 April 2023	30 April 2022
	Notes	£'000	£'000
Fixed assets
Investments at fair value through profit or loss	10	340,599	373,697

Current assets
Debtors	11	729	1,907
Cash and short-term deposits		2,166	7,824
		2,895	9,731

Creditors: amounts falling due within one year	12
Loans		(28,632)	(13,504)
Other creditors		(729)	(2,994)
		(29,361)	(16,498)
Net current liabilities		(26,466)	(6,767)
Total assets less current liabilities		314,133	366,930

Non-current creditors	12
Loans		-	(19,978)
Net assets		314,133	346,952

Share capital and reserves
Share capital	13	5,643	5,855
Share premium account		17,955	17,955
Capital redemption reserve		10,911	10,699
Capital reserve	14	266,379	299,738
Revenue reserve		13,245	12,705
Equity shareholders' funds		314,133	346,952

Net asset value per Ordinary share (pence)	15	299.20	325.17

The financial statements were approved by the Board of Directors and authorised for issue on 16 August 2023 and were signed on its behalf by:
Donald Workman
Chairman
The accompanying notes are an integral part of the financial statements.

Statement of Changes in Equity

For the year ended 30 April 2023
			Share	Capital
		Share	premium	redemption	Capital	Revenue
		capital	account	reserve	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2022		5,855	17,955	10,699	299,738	12,705	346,952
Buy back of Ordinary shares for treasury		-	-	-	(4,756)	-	(4,756)
Cancellation of Ordinary shares held in treasury		(212)	-	212	-	-	-
Return after taxation		-	-	-	(28,603)	5,105	(23,498)
Dividends paid	8	-	-	-	-	(4,565)	(4,565)
Balance at 30 April 2023		5,643	17,955	10,911	266,379	13,245	314,133


For the year ended 30 April 2022
			Share	Capital
		Share	premium	redemption	Capital	Revenue
		capital	account	reserve	reserve	reserve	Total
		£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2021		5,855	17,955	10,699	355,134	13,362	403,005
Buy back of Ordinary shares for treasury		-	-	-	(7,008)	-	(7,008)
Return after taxation		-	-	-	(48,388)	4,005	(44,383)
Dividends paid	8	-	-	-	-	(4,662)	(4,662)
Balance at 30 April 2022		5,855	17,955	10,699	299,738	12,705	346,952

The revenue reserve represents the amount of the Company's reserves distributable by way of dividend.
The accompanying notes are an integral part of the financial statements.

Statement of Cash Flows

		Year ended	Year ended
		30 April 2023	30 April 2022
	Notes	£'000	£'000
Operating activities
Net return before finance costs and taxation		(22,210)	(43,205)
Adjustment for:
Losses on investments		27,046	46,172
Currency losses		139	640
Dividend income		(7,540)	(6,667)
Dividend income received		7,502	7,112
Interest income		(72)	(3)
Interest income received		64	2
Increase in other debtors		(5)	(9)
Decrease in other creditors		(12)	(30)
Stock dividends included in investment income		-	(152)
Overseas withholding tax		(253)	(484)
Net cash flow from operating activities		4,659	3,376

Investing activities
Purchases of investments		(71,965)	(81,473)
Sales of investments		76,921	95,767
Net cash from investing activities		4,956	14,294

Financing activities
Equity dividends paid	8	(4,565)	(4,662)
Interest paid		(915)	(799)
Buy back of Ordinary shares for treasury		(4,790)	(6,882)
Loan repayment		(4,814)	-
Net cash used in financing activities		(15,084)	(12,343)
(Decrease)/increase in cash		(5,469)	5,327

Analysis of changes in cash during the year
Opening balance		7,824	2,364
Effect of exchange rate fluctuations on cash held		(189)	133
(Decrease)/increase in cash as above		(5,469)	5,327
Closing balance		2,166	7,824

The accompanying notes are an integral part of the financial statements.

Notes to the Financial Statements

For the year ended 30 April 2023

1.	Principal activity
	The Company is a closed-end investment company, registered in England & Wales No 02377879, with its Ordinary shares being listed on the London Stock Exchange.

2.	Accounting policies
	(a)	Basis of accounting. The financial statements have been prepared in accordance with Financial Reporting Standard 102 and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the "SORP") issued in July 2022. The financial statements are prepared in Sterling which is the functional currency of the Company and rounded to the nearest £'000. They have also been prepared on the assumption that approval as an investment trust will continue to be granted by HMRC.
		Going concern with a Material Uncertainty. As set out in more detail in the Charman's Statement, it is proposed that the Company combines with Asia Dragon Trust plc ("Asia Dragon"). The combination, if approved by each company's shareholders, will be effected by way of a scheme of reconstruction and winding up of the Company under section 110 of the Insolvency Act 1986 and the associated transfer of part of the assets and undertaking of the Company to Asia Dragon in exchange for the issue of new ordinary shares in Asia Dragon (the "Scheme"). The outcome of the general meetings to make the Scheme effective represents a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern.
		Notwithstanding this material uncertainty, the Board has concluded that it remains appropriate to continue to prepare the financial statements on a going concern basis. In reaching this conclusion, the Board has come to the view that, as the Scheme is contingent on shareholder approval and the Company is considered solvent in all other regards, there is no irrevocable path to liquidation and thus going concern remains the most appropriate basis for preparation. In reaching this conclusion, the Board has also given due consideration to the risks associated with the Scheme.
		The Board has also given consideration to the liquidity of the investment portfolio. The Company's assets consist substantially of equity shares in companies listed on recognised stock exchanges and in most circumstances are realisable within a short timescale. The Board regularly reviews income and expenditure projections and has set limits for borrowing and reviews compliance with banking covenants, including the headroom available.
		At the year end, the Company's borrowing facilities amounted to £40 million, comprising a fixed rate loan of £20 million, which matures in December 2023, and a £20 million multi-currency revolving loan facility maturing in June 2024. In the event of the Company being unable to renew the facilities on their maturity, it is anticipated that they would be repaid from proceeds of investment sales.
		In considering the going concern basis of accounting, the Directors have also taken into account the potential requirement of the Board to propose a resolution to approve the continuation of the Company at future Annual General Meetings. As explained under "Duration" above, this is dependent upon the level of discount in the 90 days preceding the Company's financial year end and there is no requirement for such a resolution to be proposed at the Annual General Meeting.
		The Company's investments and borrowings are made in a number of currencies, however the Board considers the Company's functional currency to be Sterling. In arriving at this conclusion, the Board considered that the shares of the Company are listed on the London Stock Exchange, it is regulated in the United Kingdom, principally having its shareholder base in the United Kingdom, pays dividends and expenses in Sterling. Consequently, the Board also considers the Company's presentational currency to be Sterling. At the year end, the Company's borrowing facilities amounted to £40 million, comprising a fixed rate loan of £20 million, which matures in December 2023, and a £20 million multi-currency revolving loan facility maturing in June 2024.
		Significant accounting judgements, estimates and assumptions. The preparation of financial statements requires the consideration of certain significant accounting judgements, estimates and assumptions when management may need to exercise its judgement in the process of applying the accounting policies and these are continually evaluated. The Directors consider the material uncertainty present for the Company to continue as a going concern and the use of Sterling as its functional currency to be significant accounting judgements.
	(b)	Valuation of investments. The Company has applied the recognition and measurement provisions of FRS 102 and investments have been designated upon initial recognition at fair value through profit or loss. This is done because all investments are considered to form part of a group of financial assets which is evaluated on a fair value basis, in accordance with the Company's documented investment strategy, and information about the grouping is provided internally on that basis. Listed investments have been measured upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised on the trade date at cost. Subsequent to initial recognition, investments are valued at fair value which for listed investments is deemed to be bid market prices. The fair value of the Company's investments in collective investment schemes has been determined by reference to their quoted net asset values. Gains and losses arising from changes in fair value are included as a capital item in the Statement of Comprehensive Income and are ultimately recognised in the capital reserve.
	(c)	Income. Dividends, including taxes deducted at source, are included in revenue by reference to the date on which the investment is quoted ex-dividend. Special dividends are reviewed on a case-by-case basis and are credited to capital, if circumstances dictate. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Other returns on non-equity shares are recognised when the right to return is established. Where the Company has elected to receive its dividends in the form of additional shares rather than cash, the amount of the cash dividend is recognised as revenue. Any excess in the value of the shares received over the amount of the cash dividend is recognised as capital. Interest receivable on bank balances is dealt with on an accruals basis.

	(d)	Expenses. All expenses are accounted for on an accruals basis. Expenses are charged through the revenue column of the Statement of Comprehensive Income except as follows:
		- expenses directly relating to the acquisition or disposal of an investment, which are charged to the capital column of the Statement of Comprehensive Income and are separately identified and disclosed in note 10; and
		- the Company charges 50% of investment management fees and finance costs to the capital column of the Statement of Comprehensive Income, in accordance with the Board's expected long term return in the form of capital gains and income respectively from the investment portfolio of the Company.
	(e)	Taxation. The tax payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or expenditure that are taxable or deductible in other years and it further excludes items that are never taxable or deductible (see note 7 for a more detailed explanation).
		Deferred taxation is provided on all timing differences, that have originated but not reversed at the Statement of Financial Position date, where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the Statement of Financial Position date, measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Due to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
	(f)	Foreign currencies. Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Statement of Financial Position date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Gains and losses on the realisation of foreign currencies are recognised in the Statement of Comprehensive Income as capital or revenue, depending upon their nature.
	(g)	Dividends payable. Final dividends are recognised from the date on which they are declared and approved by shareholders. Interim dividends are recognised when paid.

	(h)	Nature and purpose of capital and reserves
		Called up share capital. The Ordinary share capital on the Statement of Financial Position relates to the number of shares in issue and in treasury. Only when the shares are cancelled, either from treasury or directly, is a transfer made to the capital redemption reserve.
		Share premium account. The balance classified as share premium includes the premium above nominal value from the proceeds on issue of any equity share capital comprising Ordinary shares of 5p. This reserve is not distributable.
		Capital redemption reserve. The capital redemption reserve is used to record the amount equivalent to the nominal value of any of the Company's own shares purchased and cancelled in order to maintain the Company's capital. This reserve is not distributable.
		Capital reserve. Gains or losses on disposal of investments and changes in fair values of investments are transferred to the capital reserve. The capital element of the management fee and relevant finance costs are charged to this reserve. Any associated tax relief is also credited to this reserve. The costs of share buybacks to be held in treasury have also been deducted from this reserve. This reserve is not distributable.
		Revenue reserve. This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income. The revenue is distributable, including by way of dividend.
	(i)	Borrowings. Bank loans are initially recognised at cost, being the fair value of the consideration received, net of any issue expenses. Subsequently, they are measured at amortised cost using the effective interest method. Finance charges are accounted for on an accruals basis using the effective interest rate method and are charged 50% to revenue and 50% to capital.

3.	Income
		2023	2022
		£'000	£'000
	Income from investments
	UK dividend income	729	1,973
	Overseas dividends	6,811	4,542
	Stock dividends	-	152
		7,540	6,667

	Other income
	Deposit interest	72	3
	Total income	7,612	6,670

4.	Management fee
			2023			2022
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
	Management fee	945	945	1,890	1,170	1,170	2,340

	Management services are provided by abrdn Fund Managers Limited ("aFML").
	With effect from 1 May 2022, the management fee has been payable monthly in arrears based on an annual amount of 0.85% up to £350 million and 0.50% thereafter of the net asset value of the Company valued monthly, previously 0.85% of net assets, with the following provisions for commonly managed funds:
	- the Company's investments in Aberdeen Standard SICAV - Indian Equity Fund, abrdn Asia Focus PLC and abrdn New India Investment Trust PLC are excluded from the calculation of the investment management fee. The total value of such commonly managed funds, on a bid price basis (basis on which the management fee is calculated), at the year end was £58,292,000 (2022 - bid basis - £59,390,000).
	- the Company receives a rebate from the Manager for the amount of fees in excess of the above rates charged by the Manager for any commonly managed fund.
	The balance due to aFML at the year end, net of any rebates, was £303,000 (2022 - £344,000).
	The agreement is terminable by either party on not less than twelve months' notice to the other. In the event of termination by the Company on less than the agreed notice period, compensation is payable to the Manager in lieu of the unexpired notice period.

5.	Administrative expenses
		2023	2022
		£'000	£'000
	Promotional activities	185	177
	Directors' fees	126	122
	Safe custody fees	111	129
	Depositary fees	34	39
	Auditor's remuneration:
	- fees payable for the audit of the Company's annual financial statements	30	29
	Registrar's fees	62	67
	Legal and professional fees	55	28
	Other expenses	144	132
		747	723

	The Company has an agreement with aFML for the provision of promotional activities. The total fees payable during the year were £185,000 (2022 - £177,000) and the sum due to aFML at the year end was £54,000 (2022 - £65,000).
	The Company does not have any employees and no pension contributions were made in respect of any of the Directors.
	With the exception of Auditor's remuneration, all of the expenses above include irrecoverable VAT where applicable.

6.	Finance costs
			2023			2022
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
	Bank loans and overdraft interest	473	473	946	406	406	812

7.	Taxation
			2023			2022
			Revenue	Capital	Total	Revenue	Capital	Total
			£'000	£'000	£'000	£'000	£'000	£'000
	(a)	Analysis of charge for the year
		Overseas tax	416	-	416	444	-	444
		Overseas tax reclaimable	(74)	-	(74)	(78)	-	(78)
		Total tax charge for the year	342	-	342	366	-	366

	(b)	Factors affecting the tax charge for the year. The UK corporation tax rate is 25% (2022 - 19%).The tax assessed for the year is higher (2022 -higher) than the standard rate of corporation tax in the UK. The differences are explained below:

			2023			2022
			Revenue	Capital	Total	Revenue	Capital	Total
			£'000	£'000	£'000	£'000	£'000	£'000
		Net return before taxation	5,447	(28,603)	(23,156)	4,371	(48,388)	(44,017)

		Corporation tax at effective rate of 19.5% (2022 - standard rate of 19%)	1,062	(5,578)	(4,516)	830	(9,194)	(8,364)
		Effects of:						-
		Non-taxable UK dividend income	(142)	-	(142)	(375)	-	(375)
		Non-taxable overseas dividends	(1,328)	-	(1,328)	(892)	-	(892)
		Overseas tax suffered	342	-	342	366	-	366
		Expenses not deductible for tax purposes	3	-	3	4	-	4
		Surplus management expenses and loan relationship deficits not relieved	405	277	682	433	299	732
		Non-taxable exchange losses	-	27	27	-	122	122
		Non-deductible losses	-	5,274	5,274	-	8,773	8,773
		Total tax charge	342	-	342	366	-	366

	(c)	Provision for deferred taxation. No provision for deferred taxation has been made in the current year or in the prior year. At 30 April 2023 the Company had surplus management expenses and loan relationship debits with a tax value of £10,395,000 (2022 - £9,522,000) in respect of which a deferred tax asset has not been recognised. This is because the Company is not expected to generate taxable income in a future period in excess of the deductible expenses of that future period and, accordingly, it is unlikely that the Company will be able to reduce future tax liabilities through the use of existing surplus expenses.

8.	Dividends
		2023	2022
		£'000	£'000
	Amounts recognised as distributions to equity holders in the period:
	Final dividend for 2022 - 3.3p (2021 - 3.3p)	3,507	3,587
	Interim dividend for 2023 - 1.0p (2022 - 1.0p)	1,058	1,075
		4,565	4,662

	The second interim dividend in respect of the year ended 30 April 2023 has not been included as a liability in these financial statements.
	The table below sets out the dividends in respect of the financial year, which is the basis on which the requirements of Section 1158 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year is £5,105,000 (2022 - £4,005,000).

		2023	2022
		£'000	£'000
	First interim dividend for 2023 - 1.0p	1,058	-
	Second interim dividend for 2023 - 3.3p	3,451	-
	Interim dividend for 2022 - 1.0p	-	1,075
	Final dividend for 2022 - 3.3p	-	3,511
		4,509	4,586

	Subsequent to the year end the Company and up to the record date of the second interim dividend for 2023 a further 420,000 Ordinary shares were purchased for treasury. Therefore the amounts reflected above for the cost of the second interim dividend for 2023 are based on 104,571,348 Ordinary shares, being the number of Ordinary shares in issue excluding those held in treasury at the date of this Report.

9.	Return per Ordinary share
		2023		2022
		£'000	p	£'000	p
	Revenue return	5,105	4.82	4,005	3.71
	Capital return	(28,603)	(27.00)	(48,388)	(44.81)
	Total return	(23,498)	(22.18)	(44,383)	(41.10)

	Weighted average number of Ordinary shares in issue^A		105,932,290		107,976,263
	^A Calculated excluding shares held in treasury.

10.	Investments at fair value through profit or loss
		2023	2022
		£'000	£'000
	Opening book cost	253,386	243,269
	Opening investment holding gains	120,311	188,217
	Opening fair value	373,697	431,486

	Analysis of transactions made during the year
	Purchases at cost	69,728	82,957
	Sales proceeds received	(75,780)	(94,574)
	Losses on investments	(27,046)	(46,172)
	Closing fair value	340,599	373,697

	Closing book cost	264,474	253,386
	Closing investment gains	76,125	120,311
	Closing fair value	340,599	373,697

		2023	2022
		£'000	£'000
	Investments listed on an overseas investment exchange	322,007	340,908
	Investments listed on the UK investment exchange	18,592	32,789
		340,599	373,697

	The Company received £75,780,000 (2022 - £94,574,000) from investments sold in the period. The book cost of these investments when they were purchased was £58,640,000 (2022 - £72,840,000). These investments have been revalued over time and until they were sold any unrealised gains/(losses) were included in the fair value of the investments.
	Transaction costs. During the year expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within losses on investments in the Statement of Comprehensive Income. The total costs were as follows:
		2023	2022
		£'000	£'000
	Purchases	86	91
	Sales	119	140
		205	231

	The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company's Key Information Document are calculated on a different basis and in line with the PRIIPs regulations.

11.	Debtors
		2023	2022
		£'000	£'000
	Prepayments and accrued income	348	308
	Amounts due from brokers	-	1,141
	Other loans and receivables	381	458
		729	1,907

12.	Creditors
	Amounts falling due within one year:		2023	2022
	a)	Loans	£'000	£'000
		Foreign currency loans	3,640	8,504
		Sterling loans	24,992	5,000
			28,632	13,504

			2023	2022
	b)	Other	£'000	£'000
		Amounts due to brokers	92	2,363
		Other creditors	637	631
			729	2,994

			2023	2022
	Non-current creditors:		£'000	£'000
	Sterling loan		-	19,978

	At the year end the Company had drawn down HK$21,000,000 (2022 - HK$21,00,000), equivalent to £2,128,000 (2022 - £2,132,000), with a maturity date of 19 May 2023 (2022 - 25 May 2022), US$1,900,000 (2022 - US$8,000,000), equivalent to £1,512,000 (2022 - £6,372,000), with a maturity date of 19 May 2023 (2022 - 25 May 2022) and £5,000,000 (2022 - £5,000,000), with a maturity date of 19 May 2023 (2022 - 25 May 2022), and a fixed rate bank loan of £20,000,000 (2022 - £20,000,000), under the £40,000,000 multi-currency credit facility with The Royal Bank of Scotland International Limited at interest rates of 2.760%, 6.216%, 5.577% and 2.626% (2022 - 1.58839%, 2.06786%, 2.0905% and 2.626%) respectively.
	As of the latest date prior to the signing of this Report the HK$21,000,000 loan had been drawn down to 18 August 2023 at an interest rate of 6.359%, the US$1,900,000 loan had been drawn down to 18 August 2023 at an interest rate of 6.45% and the £5,000,000 loan had been drawn down to 18 August 2023 at an estimated interest rate of 6.33%.
	The terms of the bank loan with The Royal Bank of Scotland International Limited state that:
	- the net tangible assets of the Company must be not less than £125 million at all times;
	- the ratio of gross borrowings to adjusted assets must be less than 25% at all times (adjusted assets are total gross assets less (i) the value of any unlisted investment; (ii) the value in excess of 10% of total gross assets invested in the largest single security or asset; (iii) the value of any single security or asset (other than the largest security or asset referred to above) exceeds 5% of gross assets; (iv) the value in excess of 60% of total gross assets invested in the top twenty largest investments; (v) the extent to which the value of securities in collective investment schemes exceeds 30% of gross assets; and (vi) the extent to which the aggregated value of securities or assets in countries with a Standard and Poor's foreign sovereign debt rating lower than BBB exceeds 30% of gross assets.); and
	- the facility, under which the loans are made, is split into two tranches, a £20,000,000 fixed rate facility which will expire on 14 December 2023 and a £20,000,000 revolving credit facility which will expire on 28 June 2024.
	The Company has met all financial covenants throughout the period and up to the date of this Report.

13.	Share capital
		2023	2022
		£'000	£'000
	Allotted, called up and fully paid:
	104,991,348 (2022 - 106,697,348) Ordinary shares of 5p each	5,249	5,335

	Held in treasury:
	7,874,351 (2022 - 10,401,701) Ordinary shares of 5p each	394	520
		5,643	5,855

	During the year 1,706,000 (2022 - 2,232,000) Ordinary shares of 5p each were repurchased by the Company at a total cost, including transaction costs, of £4,756,000 (2022 - £7,008,000). All of the shares were placed in treasury. On 30 April 2023 4,233,350 Ordinary shares held in treasury were cancelled. Shares held in treasury represent 7.0% (2022 - 8.9%) of the Company's total issued share capital of 112,865,699 Ordinary shares of 5p each at 30 April 2023. Shares held in treasury do not carry a right to receive dividends.
	Subsequent to the year end the Company bought back for treasury a further 420,000 Ordinary shares for a total consideration of £1,253,000.

14.	Capital reserve
		2023	2022
		£'000	£'000
	At 1 May 2022	299,738	355,134
	Movement in fair value gains	(27,046)	(46,172)
	Foreign exchange movement	(139)	(640)
	Buy back of Ordinary shares for treasury	(4,756)	(7,008)
	Expenses allocated to capital	(1,418)	(1,576)
	At 30 April 2023	266,379	299,738

	The capital reserve includes investment holding gains amounting to £76,125,000 (2022 - £120,311,000), as disclosed in note 10.

15.	Net asset value per share
	The net asset value per share and the net asset values attributable to Ordinary shareholders at the year end calculated in accordance with the Articles of Association were as follows:

		2023	2022
	Net assets attributable	£314,133,000	£346,952,000
	Number of Ordinary shares in issue (excluding shares held in treasury)	104,991,348	106,697,348
	Net asset value per share	299.20p	325.17p

16.	Analysis of changes in net debt
		At				At
		30 April	Currency	Cash	Non-cash	30 April
		2022	differences	flows	movements	2023
		£'000	£'000	£'000	£'000	£'000
	Cash and short term deposits	7,824	(189)	(5,469)	-	2,166
	Debt due within one year	(13,504)	50	4,814	(19,992)	(28,632)
	Debt due after more than one year	(19,978)	-	-	19,978	-
		(25,658)	(139)	(655)	(14)	(26,466)
		At				At
		30 April	Currency	Cash	Non-cash	30 April
		2021	differences	flows	movements	2022
		£'000	£'000	£'000	£'000	£'000
	Cash and short term deposits	2,364	133	5,327	-	7,824
	Debt due within one year	(12,731)	(773)	-	-	(13,504)
	Debt due after more than one year	(19,965)	-	-	(13)	(19,978)
		(30,332)	(640)	5,327	(13)	(25,658)

	A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences from the above analysis.

17.	Financial instruments
	Risk management. The Company's investment activities expose it to various types of financial risk associated with the financial instruments and markets in which it invests. The Company's financial instruments comprise securities and other investments, cash balances, loans and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income.
	The Board has delegated the risk management function to abrdn Fund Managers Limited ("aFML") under the terms of its management agreement with aFML (further details of which are included under note 4). The Board regularly reviews and agrees policies for managing each of the key financial risks identified with the Manager. The types of risk and the Manager's approach to the management of each type of risk, are summarised below. Such approach has been applied throughout the year and has not changed since the previous accounting period.
	Risk management framework. The directors of aFML collectively assume responsibility for aFML's obligations under the AIFMD including reviewing investment performance and monitoring the Company's risk profile during the year.
	aFML is a fully integrated member of the abrdn Group ("the Group"), which provides a variety of services and support to aFML in the conduct of its business activities, including the oversight of the risk management framework for the Company. The AIFM has delegated the day to day administration of the investment policy to abrdn Asia Limited, which is responsible for ensuring that the Company is managed within the terms of its investment guidelines and the limits set out in its pre-investment disclosures to investors (details of which can be found on the Company's website). The AIFM has retained responsibility for monitoring and oversight of investment performance, product risk and regulatory and operational risk for the Company.
	The Manager conducts its risk oversight function through the operation of the Group's risk management processes and systems which are embedded within the Group's operations. The Group's Risk Division supports management in the identification and mitigation of risks and provides independent monitoring of the business. The Division includes Compliance, Business Risk, Market Risk and Risk Management. The team is headed up by the Group's Chief Risk Officer, who reports to the Group CEO. The Risk Division achieves its objective through embedding the Risk Management Framework throughout the organisation using the Group's operational risk management system ("SHIELD").
	The Group's Internal Audit Department is independent of the Risk Division and reports directly to the Group CEO and to the Audit Committee of the Group's Board of Directors. The Internal Audit Department is responsible for providing an independent assessment of the Group's control environment.
	The Group's corporate governance structure is supported by several committees to assist the board of directors, its subsidiaries and the Company to fulfil their roles and responsibilities. The Group's Risk Division is represented on all committees, with the exception of those committees that deal with investment recommendations. The specific goals and guidelines on the functioning of those committees are described on the committees' terms of reference.
	Risk management. The main risks the Company faces from its financial instruments are (i) market risk (comprising interest rate risk, currency risk and price risk), (ii) liquidity risk and (iii) credit risk.
	(i) Market risk. The fair value of, or future cash flows from a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - interest rate risk, foreign currency risk and other price risk.
	Interest rate risk. Interest rate movements may affect:
	- the level of income receivable on cash deposits; and,
	- interest payable on the Company's variable rate borrowings.
	Management of the risk. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions.
	The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise fixed rate, revolving, and uncommitted facilities. The fixed rate facilities are used to finance opportunities at low rates and, the revolving and uncommitted facilities to provide flexibility in the short-term. Current bank covenant guidelines state that the total borrowings will not exceed 25% of the adjusted net assets of the Company as defined in note 12.

Interest risk profile. The interest rate risk profile of the portfolio of the Company's financial assets and liabilities, excluding equity holdings which are all non-interest bearing, at the Statement of Financial Position date was as follows:

	Weighted average	Weighted
	period for which	average	Fixed	Floating
	rate is fixed	interest rate	rate	rate
At 30 April 2023	Years	%	£'000	£'000
Assets:
China Yuan Renminbi	-	-	-	3
Sterling	-	3.18	-	2,134
Vietnam Dong	-	-	-	29
			-	2,166
	Weighted average	Weighted
	period for which	average	Fixed	Floating
	rate is fixed	interest rate	rate	rate
	Years	%	£'000	£'000
Liabilities:
Bank loan - £20,000,000	0.62	2.63	19,992	-
Bank loan - £5,000,000	0.05	5.58	5,000	-
Bank loan - HK$21,000,000	0.05	2.76	2,128	-
Bank loan - US$1,900,000	0.05	6.22	1,512	-
			28,632	-

	Weighted average	Weighted
	period for which	average	Fixed	Floating
	rate is fixed	interest rate	rate	rate
At 30 April 2022	Years	%	£'000	£'000
Assets:
China Yuan Renminbi	-	-	-	3
Euro	-	-	-	1
Sri Lankan Rupee	-	-	-	7
Sterling	-	-	-	7,798
Taiwan Dollar	-	-	-	1
Vietnam Dong	-	-	-	14
			-	7,824

	Weighted average	Weighted
	period for which	average	Fixed	Floating
	rate is fixed	interest rate	rate	rate
	Years	%	£'000	£'000
Liabilities:
Bank loan - £20,000,000	1.62	2.63	19,978	-
Bank loan - £5,000,000	0.07	2.09	5,000	-
Bank loan - HK$21,000,000	0.07	1.59	2,132	-
Bank loan - US$8,000,000	0.07	2.07	6,372	-
			33,482	-

The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The weighted average interest rate on bank loans is based on the interest rate payable, weighted by the total value of the loans. The maturity date of the Company's loans are shown in note 12.
The floating rate assets consist of cash deposits on call earning interest at prevailing market rates.
The Company's equity portfolio and short-term debtors and creditors (excluding bank loans) have been excluded from the above tables.
Interest rate sensitivity. Movements in interest rates would not significantly affect net assets attributable to the Company's shareholders and total profit.

Foreign currency risk. The Company's investment portfolio is primarily invested in overseas securities and the Statement of Financial Position, therefore, can be significantly affected by movements in foreign exchange rates.
Management of the risk. It is not the Company's policy to hedge this risk on a continuing basis but the Company may, from time to time, match specific overseas investment with foreign currency borrowings. The Company's borrowings, as detailed in note 12, are predominantly in sterling.
The revenue account is subject to currency fluctuation arising on dividends paid in foreign currencies. The Company does not hedge this currency risk.
Foreign currency exposure by currency of denomination:

	30 April 2023			30 April 2022
		Net	Total		Net	Total
		monetary	currency		monetary	currency
	Investments	assets	exposure	Investments	assets	exposure
	£'000	£'000	£'000	£'000	£'000	£'000
Australian Dollar	36,504	-	36,504	31,303	157	31,460
China Yuan Renminbi	37,738	3	37,741	44,103	(747)	43,356
Euro	8,798	-	8,798	7,828	1	7,829
Hong Kong Dollar	88,390	(2,128)	86,262	77,221	(2,132)	75,089
Indonesian Rupiah	15,791	-	15,791	12,821	-	12,821
Philippine Peso	4,909	-	4,909	6,270	-	6,270
Singapore Dollar	16,714	-	16,714	22,576	(838)	21,738
South Korean Won	28,782	-	28,782	41,846	336	42,182
Sri Lankan Rupee	2,011	-	2,011	1,624	7	1,631
Taiwan Dollar	27,125	-	27,125	32,261	1	32,262
Thailand Baht	-	-	-	2,703	-	2,703
US Dollar	-	(1,512)	(1,512)	-	(6,372)	(6,372)
Vietnam Dong	6,897	29	6,926	11,656	14	11,670
Total	273,659	(3,608)	270,051	292,212	(9,573)	282,639

Foreign currency sensitivity. The following table details the Company's sensitivity to a 10% increase and decrease in sterling against the foreign currencies in which the Company has exposure. The sensitivity analysis includes foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates.

	2023	2022
	£'000	£'000
Australian Dollar	3,650	3,146
China Yuan Renminbi	3,774	4,336
Euro	880	783
Hong Kong Dollar	8,626	7,509
Indonesian Rupiah	1,579	1,282
Philippine Peso	491	627
Singapore Dollar	1,671	2,174
South Korean Won	2,878	4,218
Sri Lankan Rupee	201	163
Taiwan Dollar	2,713	3,226
Thailand Baht	-	270
US Dollar	(151)	(637)
Vietnam Dong	693	1,167
	27,005	28,264

Price risk. Other price risks (ie changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments.
Management of the risk. It is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a particular country or sector. Both the allocation of assets and the stock selection process act to reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Company are listed on various stock exchanges worldwide.

Price risk sensitivity. If market prices at the Statement of Financial Position date had been 10% higher or lower while all other variables remained constant, the return attributable to Ordinary shareholders for the year ended 30 April 2023 would have increased/(decreased) by £34,060,000 (2022 - increased/(decreased) by £37,370,000) and equity reserves would have increased/(decreased) by the same amount.
(ii) Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities as they fall due in line with the maturity profile analysed below.

			Within
			1 year	Total
At 30 April 2023			£'000	£'000
Bank loans			28,632	28,632
Interest cash flows on bank loans			430	430
Cash flows on other creditors			649	649
			29,711	29,711

		Within	Within
		1 year	1-2 years	Total
At 30 April 2022		£'000	£'000	£'000
Bank loans		13,504	20,000	33,504
Interest cash flows on bank loans		548	396	944
Cash flows on other creditors		2,994	-	2,994
		17,046	20,396	37,442

Management of the risk. The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise a £20,000,000 fixed rate credit facility, which expires on 14 December 2023 and £20,000,000 revolving multi-currency credit facility, which expires on 28 June 2024. The Board has imposed a maximum gearing level, measured on the most stringent basis of calculation after netting off cash equivalents, of 25%. Details of borrowings at 30 April 2023 are shown in note 12.
Liquidity risk is not considered to be significant as the Company's assets comprise mainly readily realisable securities, which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of the loan facility, details of which can be found in note 12. Under the terms of the loan facility, the Manager provides the lender with loan covenant reports on a monthly basis, to provide the lender with assurance that the terms of the facility are not being breached. The Manager will also review the credit rating of a lender on a regular basis. Details of the Board's policy on gearing are shown in the interest rate risk section of this note.
(iii) Credit risk. This is the risk of failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss.
Management of the risk. Investment transactions are carried out with a large number of brokers, whose credit-standing is reviewed periodically by the Manager, and limits are set on the amount that may be due from any one broker. Cash is held only with reputable banks with high quality external credit enhancements.
Credit risk exposure. In summary, compared to the amounts in the Statement of Financial Position, the maximum exposure to credit risk at 30 April was as follows:

	2023		2022
	Statement of		Statement of
	Financial	Maximum	Financial	Maximum
	Position	exposure	Position	exposure
	£'000	£'000	£'000	£'000
Current assets
Loans and receivables	729	729	1,907	1,907
Cash at bank and in hand	2,166	2,166	7,824	7,824
	2,895	2,895	9,731	9,731

None of the Company's financial assets are past due or impaired.
Fair values of financial assets and financial liabilities. The carrying values of fixed asset investments are stated at their fair values, which have been determined with reference to quoted market prices. For all other short-term debtors and creditors, their book values approximate to fair values because of their short-term maturity. Bank loans are valued at amortised cost in accordance with the Company's stated accounting policy.

18.	Fair value hierarchy
	FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following classifications:
	Level 1: unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the measurement date.
	Level 2: inputs other than quoted prices included within Level 1 that are observable (ie developed using market data) for the asset or liability, either directly or indirectly.
	Level 3: inputs are unobservable (ie for which market data is unavailable) for the asset or liability.
	The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the reporting date as follows:

		Level 1	Level 2	Level 3	Total
	As at 30 April 2023	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	292,251	-	-	292,251
	Collective investment schemes	-	48,348	-	48,348
	Total fair value	292,251	48,348	-	340,599

		Level 1	Level 2	Level 3	Total
	As at 30 April 2022	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	325,001	-	-	325,001
	Collective investment schemes	-	48,696	-	48,696
	Total fair value	325,001	48,696	-	373,697

	Quoted equities. The fair value of the Company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges.
	Collective investment schemes. The fair value of the Company's investments in collective investment schemes has been determined by reference to their quoted net asset values at the reporting date and hence are categorised in Fair Value Level 2.

19.	Related party transactions and transactions with the Manager
	Fees payable during the period to the Directors and their interests in shares of the Company are disclosed within the Directors' Remuneration Report.
	Mr Young is also a director of the Company's Investment Manager, abrdn Asia Limited, which is a wholly-owned subsidiary of abrdn plc. Management, promotional activities and secretarial and administration services are provided to the Company by abrdn Fund Managers Limited. Details of transactions during the year and balances outstanding at the year end disclosed in notes 4 and 5.
20.	Capital management policies and procedures
	The investment objective of the Company is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.
	The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.
	The Board monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes:
	- the planned level of gearing which takes account of the Manager's views on the market;
	- the level of equity shares in issue; and
	- the extent to which revenue in excess of that which is required to be distributed should be retained.
	The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period.
	The Company does not have any externally imposed capital requirements. As at 30 April 2023, the Company had net gearing of 8.5% which compares with a current maximum limit set by the Board of 25%.

21.

Subsequent events

On 21 July 2023 the Board announced that it had agreed heads of terms with the board of Asia Dragon Trust plc ("Asia Dragon") in respect of a proposed combination of the Company with Asia Dragon. The combination, if approved by each company's shareholders, will be effected by way of a scheme of reconstruction and winding up of the Company under section 110 of the Insolvency Act 1986 with the associated transfer of part of the assets and undertaking of the Company to Asia Dragon in exchange for the issue of new ordinary shares in Asia Dragon (the "Scheme"). Under the terms of the Scheme an up to 25% cash exit opportunity will be offered to the Company's shareholders to realise part of their investment in the Company at a 2% discount to the adjusted net asset value.

Alternative Performance Measures

Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes FRS 102 and the AIC SORP.
Dividend cover
Dividend cover is the revenue return per share divided by dividends per share expressed as a ratio.

		2023	2022
Revenue return per share	a	4.82p	3.71p
Dividends per share	b	4.30p	4.30p
Dividend cover	a/b	1.12	0.86

Discount to net asset value per Ordinary share (including current year income)
The amount by which the market price per Ordinary share is lower than the net asset value per Ordinary share (including current year income), expressed as a percentage of the net asset value per Ordinary share.

		2023	2022
NAV per Ordinary share (p)	a	299.20	325.17
Share price (p)	b	261.00	286.00
Discount	(a-b)/a	12.8%	12.0%

Discount to net asset value per Ordinary share (excluding current year income)
The amount by which the market price per Ordinary share is lower than the net asset value per Ordinary share (excluding current year income), expressed as a percentage of the net asset value per Ordinary share.

		2023	2022
Net asset value per Ordinary share (p)	a	295.34	322.43
Share price (p)	b	261.00	286.00
Discount	(a-b)/a	11.6%	11.3%

Net asset value per Ordinary share (excluding current year income)
The Company also uses net asset value (excluding current year income) per share as an alternative performance measure. This is calculated as follows:

		2023	2022
Net assets attributable (£'000)		314,133	346,952
Less: Revenue return after taxation for the year (£'000)		(5,105)	(4,005)
Add: Dividends paid during the year (£'000)		1,058	1,075
Net assets (ex income) (£'000)		310,086	344,022

Number of Ordinary shares in issue		104,991,348	106,697,348

NAV (ex income) per Ordinary share		295.34p	322.43p

Net gearing
Net gearing measures total borrowings less cash and cash equivalents divided by shareholders' funds, expressed as a percentage. Under AIC reporting guidance cash and cash equivalents includes net amounts due to and from brokers at the period end as well as cash and short-term deposits.

		2023	2022
Borrowings (£'000)	a	28,632	33,482
Cash (£'000)	b	2,166	7,824
Amounts due to brokers (£'000)	c	92	2,363
Amounts due from brokers (£'000)	d	-	1,141
Shareholders' funds (£'000)	e	314,133	346,952
Net gearing	(a-b+c-d)/e	8.5%	7.7%

Ongoing charges
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment management fees and administrative expenses and expressed as a percentage of the average daily net asset values published throughout the year.

		2023	2022
Management fees (£'000)		1,890	2,340
Administrative expenses (£'000)		747	723
Less: non-recurring charges^A (£'000)		(14)	-
Ongoing charges (£'000)		2,623	3,063
Average net assets (£'000)		336,444	383,039
Ongoing charges ratio (excluding look-through costs)		0.78%	0.80%
Look-through costs^B		0.35%	0.33%
Ongoing charges ratio (including look-through costs)		1.13%	1.13%
^A Legal and professional fees considered unlikely to recur.
^B Calculated in accordance with AIC guidance issued in October 2020 to include the Company's share of costs of holdings in investment companies on a look-through basis.

The ongoing charges ratio provided in the Company's Key Information Document is calculated in line with the PRIIPs regulations, which includes amongst other things, the cost of borrowings and transaction costs.
Total return
NAV and share price total returns show how the NAV and share price has performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored against open-ended and closed-ended competitors, and the Benchmark Index, respectively.

			Share
Year ended 30 April 2023		NAV	Price
Opening at 1 May 2022	a	325.17p	286.00p
Closing at 30 April 2023	b	299.20p	261.00p
Price movements	c=(b/a)-1	-8.0%	-8.7%
Dividend reinvestment^A	d	1.2%	1.4%
Total return	c+d	-6.8%	-7.3%

			Share
Year ended 30 April 2022		NAV	Price
Opening at 1 May 2021	a	369.97p	328.50p
Closing at 30 April 2022	b	325.17p	286.00p
Price movements	c=(b/a)-1	-12.1%	-12.9%
Dividend reinvestment^A	d	1.1%	1.1%
Total return	c+d	-11.0%	-11.8%
^A NAV total return involves investing the net dividend in the NAV of the Company with debt at fair value on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.

Additional Notes to the Annual Financial Report

The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 30 April 2023 have been agreed with the auditor and are an abridged version of the Company's full accounts, which have been approved and audited with an unqualified report. The 2022 and 2023 statutory accounts received unqualified reports from the Company's auditor and did not include any reference to matters to which the auditor drew attention by way of emphasis without qualifying the reports, and did not contain a statement under s.498(2) or 498(3) of the Companies Act 2006. The financial information for 2022 is derived from the statutory accounts for 2021 which have been delivered to the Registrar of Companies. The 2023 accounts will be filed with the Registrar of Companies in due course.

The Annual Report and Accounts will be posted to shareholders in August 2023. Copies will be available during normal business hours from the Secretary, abrdn Holdings Limited, 1 George Street, Edinburgh EH2 2LL or from the Company's website, www.newdawn-trust.co.uk*.

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.

By order of the Board

abrdn Holdings Limited

Company Secretary

16 August 2023

* Neither the Company's website nor the content of any website accessible from hyperlinks on it (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

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Abrdn New Dawn Investment Trust (ABD)

Tuesday, 14th May 2024

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