Half-year Financial Report

Henderson Far East Income Limited

15 April 2026

 

LEGAL ENTITY IDENTIFIER: 2138008DIQREOD38O596                                                                This announcement contains regulated information HENDERSON FAR EAST INCOME LIMITED Unaudited financial results for the half year ended 28 February 2026 INVESTMENT OBJECTIVE The Company seeks to provide shareholders with a growing total annual dividend per share, as well as capital appreciation, from a diversified portfolio of investments from the Asia Pacific region. PERFORMANCE HIGHLIGHTS ·      Net asset value total return of 23.3% ·      Share price total return of 22.9% ·      Dividend yield of 9.3% ·      c.16m new shares issued in the period raising £39.1m for investment ·      Second interim dividend for the year ending 31 August 2026 of 6.25p per share declared
PERFORMANCE
Total return performance to 28 February 2026 (including dividends reinvested and excluding transaction costs)
	6 months %		1 year %	3 years %	5 years %	10 years %
NAV1,7	23.3		34.8	40.8	37.4	110.3
Share price2,7	22.9		35.3	40.0	36.7	118.3
AIC sector3 average NAV	28.8		41.8	56.6	55.6	215.8
MSCI AC Asia Pacific ex Japan Index*	26.2		37.5	58.0	42.0	202.6
*The Company does not have a formal benchmark and uses this index on a sterling adjusted basis for comparison purposes only.
Financial highlights		at 28 February 2026			at 31 August 2025
NAV per ordinary share		261.38p			223.32p
Share price		270.00p			231.00p
Net assets		£518.9m			£407.7m
Premium4		3.3%			3.4%
Dividend yield		9.3%5,7			10.8%6,7
1.     Net asset value ('NAV') total return per ordinary share. Total return takes into account the rise and fall of the NAV and assumes dividends are reinvested. 2.     Share price total return using closing price. Total return takes into account the rise and fall of the share price and assumes dividends are reinvested. 3.     Asia Pacific Equity Income sector 4.     The premium expresses, as a percentage, the difference between the closing share price and NAV, including current year revenue, as at 28 February 2026 5.     Dividend yield based on a share price of 270.00p and dividends for the twelve months to 28 February 2026 totalling 25.00p per ordinary share 6.     Dividend yield based on a share price of 231.00p and dividends for the twelve months to 31 August 2025 totalling 24.90p per ordinary share  7.     The NAV total return, share price total return, NAV per share, premium and dividend yield are alternative performance measures.  See the annual report for a full description of these measures Sources: Morningstar Direct, Janus Henderson Investors

INTERIM MANAGEMENT REPORT Chairman's statement Dear Shareholder, As you will see in our fund manager's report, there is much about the last six months for which we should be pleased and there may be good reasons to anticipate that positive momentum will extend through the balance of our financial year.  This is good news and reflects the significant efforts we have undertaken to move our portfolio and its key components into a better, more sustainable position for the future.  The broader world environment, however, is making our work more complicated and I wanted to touch briefly on this before addressing a few key investment trends. The world was plunged into a chaotic war in the Middle East only at the very end of our first half and hostile activities continue as I write this letter.  While we look for signs of an end to this conflict, changing objectives and definitions of success cloud the ability of any observer to make predictions about how long this will continue or what the end result might be. What is clear, is the impact of the war on energy prices and availability as bombing campaigns close key facilities in the Gulf, and the passage of ships through the Strait of Hormuz remains highly restricted. Growth forecasts for many Western economies have already been cut in half for this year and the period immediately ahead is very opaque as long as fighting continues.  The Asian markets in which we invest may well be insulated from the Iranian conflict, but they are not immune.  Dramatically higher energy prices will exact a toll of some sort and we have been preparing for surprises.  While I am confident about our investment strategy and approach, it would be foolish to not at least acknowledge we are in unpredictable territory regarding future market developments, and we will remain cautious about the time immediately ahead. With war in the Middle East as a backdrop, key investment themes have continued to dominate markets.  Foremost among these has been investor infatuation with artificial intelligence ('AI') both globally and in the APAC region.  Market focus on AI investments as well as the broader technology sector contributed significantly to Asian equities outperforming global peers in 2025, with strong demand for sophisticated chips, servers and data centre equipment.    This year began with much the same enthusiasm, but February saw a sharp sell-off in Asian software stocks as investors reassessed business models threatened by AI automation and low-cost AI tools.  We anticipate that there is more to come as investors reassess the impact of cost saving pilot programmes on growth-orientated strategies, particularly with many organisations in the region expecting AI to disrupt their business models within 18 months.  The fund manager's report delves into our exposures in Taiwan and South Korea, which led the way in sophisticated chip technology, and which have been notable beneficiaries of this particular investment theme. Another interesting development for our region was the 2026 US Supreme Court decision which struck down President Trump's major tariff programmes.  While the judgment opens the door for importers to seek refunds for tariffs already paid (estimated at over £200b for 2025) it has also caused massive confusion over alternative tariffs and the impact on previously negotiated bilateral agreements with the US.  The changing shape of protectionist restrictions remains difficult to predict as they will impact various Asian economies and is a challenge for Asian corporates across a range of industries.    Performance NAV total return for the first half of the year was 23.3%, compared to the MSCI AC Asia Pacific ex Japan Index of 26.2%.  You may recall that in my letter to you at the full year, we outlined our intention to report against this single index which the Board believes is more representative of the balanced composition of our portfolio. The share price total return over the six-month period to 28 February 2026 was 22.9%. The fund manager's report explains some of the key drivers for this performance. Dividends The Company has declared two interim dividends of 6.25p each for the financial year ending 31 August 2026.  This represents an increase of 0.8% on the dividends declared in the first half of the last financial year.  Our dividend yield at 28 February 2026 was 9.3%. Share issuance Demand for the Company's shares has remained strong, with just under 16m new shares issued in the first six months of the current financial year, and a further 4.8m new shares issued since the period end up to the date of this report. Not only did this raise £39.1m, and a further £12.0m respectively, for investment, but it has also meant that your Company is now a constituent of the FTSE 250. We anticipate that demand will continue to be robust and are seeking additional shareholder authority to continue to issue shares at a premium to satisfy market demand.  An extraordinary general meeting is being convened for 14 May 2026 at 10.00 am for this purpose.  The Notice of Extraordinary General Meeting can be found on the Company's website www.hendersonfareastincome.com I encourage all shareholders to vote their shares, whether by completing their proxy form or instructing their share dealing platform to do so on their behalf.    Outlook The International Monetary Fund expects Asia to remain the world's fastest growing region, contributing roughly 60% of global growth in 2026.  This is driven by structural growth themes such as AI and technology supply chains, and is supported by accommodative fiscal policy across the region.  A further tailwind is the corporate reform underway in Japan and South Korea, where local regulators are encouraging companies to re-think their approach to delivering shareholder returns.  Against these positives we note the prospect of a more restrictive interest rate environment to address the surge in oil price related inflation. Conflict in the Middle East is contributing to increased market volatility across the region. While the duration and broader economic consequences of the conflict remain unclear, energy‑related inflationary pressures may challenge policymakers and temporarily weigh on sentiment. Despite the ongoing global macroeconomic uncertainty, the region's expanding middle class, improving corporate governance, and strong balance sheets remain supportive of sustainable dividend generation. Monetary policy divergence across key Asian markets may create short‑term volatility; however, it is also likely to present appealing opportunities to invest in robust, cash-generative companies. Our fund manager's focus remains on identifying businesses with resilient fundamentals, prudent capital allocation, and the potential to deliver both consistent income and long‑term capital appreciation. With diversification across sectors and geographies, your Company remains well positioned to navigate the evolving environment and capture the breadth of opportunities that Asia continues to offer. Ronald Gould Chairman 14 April 2026

Fund Manager's report We are encouraged by a strong period of performance for Asian markets with Asian indices reaching all-time highs at the end of the reporting period, significantly outperforming the S&P 500 US Index. We reiterate our view that now is a pivotal period where the recent outperformance of Asian equities versus US equities could be the beginning of a reversal of an unjustifiably wide valuation differential. Asia was the beneficiary of stellar performance from the technology sector, by far the strongest sector over the period followed by materials and energy. Consumer sectors were weak in the period, which was negative for South Asian markets. South Korea's total return of over 120% was boosted by the performance of Samsung Electronics and SK Hynix as they enjoyed pricing power from a shortage of memory chips, combined with the broader 'value-up' corporate reform program which is leading to higher shareholder returns from other sectors. India continues to underperform as poor consumption, employment and a failure to attract meaningful foreign investment weigh on the outlook, while Indonesia was one of the weakest performers over the period. Both markets remain attractive given their respective economies' longer-term growth potential, but the immediate challenges have been exacerbated by the ineffectiveness of new policies in the face of US tariffs and weakening consumer sentiment. Performance The Company delivered a NAV total return of 23.3% for the six-month period ended 28 February 2026, compared to a return of 26.2% from the MSCI AC Asia Pacific ex Japan Index. The share price total return was 22.9% over the same period. The index is dominated by technology names with well over half of the performance being derived from large weightings in Taiwan Semiconductor Manufacturing Company ('TSMC'), Samsung Electronics and SK Hynix, where we were underweight given our value and income bias. The Company broadly matched the strong rise in the Asia index justifying our previous tilt to a balanced approach between growth and income. Our Korean holdings were key contributors over the period with Samsung Electronics, Hyundai Motor, Kia Corp, SK Square and Industrial Bank of Korea amongst the top performers. Principal detractors were our underweight positions in TSMC and SK Hynix and weak relative performance from high yield defensive businesses which underperformed in a strong market, namely Macquarie Korea Infrastructure Fund and First Pacific. Energy names GAIL and Origin Energy also underperformed. Revenue Total income rose by 63.4% compared to last year. The income from investments rose 90.8% from the same period last year, while income from option writing increased by 19.0%. The underlying investment income was boosted by a large dividend from our Chinese holding, Brilliance China Automotive, alongside a number of other positive dividend surprises. In addition, the elevated volatility in recent months has contributed to larger than expected option premia. Portfolio activity We added Samsung Electronics preference shares which were trading at a significant discount to the ordinary shares, whilst paying a higher dividend. There is renewed optimism in the chipmaker's ability to supply cutting-edge high-bandwidth memory ('HBM') chips that are designed for AI applications. We also added Contemporary Amperex Technology, a global leader in batteries and the energy storage build out, where rising profits and cashflow is leading to more upside for dividends. We increased our weightings in Thailand by purchasing the high yield names Advanced Information Services and PTT Exploration & Production ('PTTEP'). PTTEP is a clear beneficiary of rising oil price expectations amidst the current supply disruption. We also opened a new position in Singapore-based Keppel, as we believe its ongoing asset monetisation programme is likely to lead to higher dividends in the years ahead. To fund these positions, we continued to reduce our weight in India where the growth outlook is more uncertain and exited GAIL and Power Grid Corporation of India. In China, where our weight was significantly lower at the end of the period, we sold Trip.com ahead of a regulatory investigation which led to a sharp drawdown in the share price, along with Tencent and China Hongqiao, following periods of strong performance. In Australia, we sold Goodman Group and Wesfarmers following strong performance as valuation reached our target prices. Outlook Asian investors have faced several exogenous risks in recent years with conflict in the Middle East the most recent potential shock. However, the growth drivers of our markets are broad based and have already demonstrated resilience in uncertain times. They stretch across technology, financials, infrastructure, consumer and wide-ranging corporate reform. Asia has a unique position as a hub for technology supply chains; banks are bringing millions of consumers into the banking system accelerated by a digital rollout and infrastructure is benefitting from significant power demand boosted by AI. In addition, widespread corporate reform in South Korea, China and Singapore is enhancing shareholder returns. These trends, in combination with faster than expected dividend growth offer a compelling and unique exposure for investors. Whilst there are signs of a confusing and uncertain period ahead, our highlighted investment themes have stood the test of time following a measured and effective response from the region's governments.  This bodes well for investors seeking high income with a structural growth backdrop. Sat Duhra Fund Manager 14 April 2026

Principal risks and uncertainties The principal risks and uncertainties facing the Company are: Investment and strategy An inappropriate investment strategy, for example, in terms of asset allocation, level of gearing or use of the options strategy, may result in underperformance against the companies in the peer group, and in the Company's shares trading on a discount. Investments in Asian markets may be impacted by political, market and financial events resulting in changes to the market value of the Company's portfolio. Accounting, legal and regulatory The Company is regulated by the Jersey Financial Services Commission, under the Collective Investment Funds (Jersey) Law 1998, and is required to comply with the Companies (Jersey) Law 1991, the UK Listing Rules, and Disclosure Guidance and Transparency Rules issued by the FCA and the Listing Rules of the New Zealand Stock Exchange. To retain investment trust status, the Company must comply with the provisions of section 1158 of the Corporation Tax Act 2010. A breach of company law could result in the Company being subject to criminal proceedings or financial and reputational damage. A breach of the listing rules could result in the suspension of the Company's shares. A breach of section 1158 could result in capital gains realised within the portfolio being subject to corporation tax. Operational Disruption to, or the failure of, the investment manager's or the administrator's accounting, dealing, or payment systems or the custodian's records could prevent the accurate reporting or monitoring of the Company's financial position.  The Company may be exposed to cyber risk through vulnerabilities at one or more of its service providers. Financial The financial risks faced by the Company include market risk (comprising market price, currency risk and interest rate risk), liquidity risk and credit risk. Further information on these risks and how they are managed is given in the Annual Report 2025. In the view of the Board these principal risks and uncertainties are as applicable to the remaining six months of the financial year as they were to the six months under review. Directors' responsibility statement The directors (listed in note 13) confirm that, to the best of their knowledge: ·      the unaudited condensed set of financial statements have been prepared in accordance with IAS 34 - Interim Financial Reporting ('IAS 34') and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company as required by Disclosure Guidance and Transparency Rule ('DTR') 4.2.4R; ·      the interim management report includes a fair review of the information required: -      by DTR 4.2.7R (indication of important events during the first six months of the financial year, and their impact on the unaudited condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year); and -      by DTR 4.2.8R (disclosure of related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or the performance of the Company during the period; and any changes in the related party transactions described in the latest annual report that could have a material impact in the first six months of the current financial year). Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The directors remain responsible for establishing and controlling the process for doing so, and for ensuring that the financial statements are complete and unaltered in any way. On behalf of the Board Ronald Gould Chairman 14 April 2026

INVESTMENT PORTFOLIO at 28 February 2026

		Country of		Valuation	% of
	Company	incorporation	Sector	£'000	portfolio
1	Taiwan Semiconductor Manufacturing1	Taiwan	Technology	26,873	5.00
2	Samsung Electronics2	South Korea	Technology	21,978	4.09
3	SK Hynix	South Korea	Technology	21,380	3.98
4	Advanced Information Services	Thailand	Technology	20,384	3.80
5	Kia Corp	South Korea	Consumer Discretionary	19,573	3.64
6	Industrial Bank of Korea	South Korea	Financials	18,943	3.53
7	Oversea-Chinese Banking	Singapore	Financials	17,448	3.25
8	MediaTek	Taiwan	Technology	17,289	3.22
9	PTT Exploration & Production	Thailand	Energy	16,797	3.13
10	Alibaba	China	Consumer Discretionary	16,497	3.07
	Top ten investments			197,162	36.71
11	DB Insurance	South Korea	Financials	14,407	2.68
12	Singapore Telecommunications	Singapore	Telecommunications	13,787	2.57
13	Hon Hai Precision Industry	Taiwan	Technology	13,101	2.44
14	Rio Tinto	Australia	Basic Materials	12,809	2.39
15	Keppel	Singapore	Industrials	12,147	2.26
16	China Construction Bank	China	Financials	11,432	2.13
17	HDFC Bank	India	Financials	10,549	1.96
18	Origin Energy	Australia	Utilities	10,119	1.88
19	SK Square	South Korea	Technology	9,879	1.84
20	Contemporary Amperex Technology	China	Industrials	9,801	1.82
	Top twenty investments			315,193	58.68
21	United Overseas Bank	Singapore	Financials	9,365	1.75
22	Macquarie Korea Infrastructure Fund	South Korea	Financials	9,084	1.69
23	CTBC Financial	Taiwan	Financials	8,988	1.67
24	ANZ Group	Australia	Financials	8,966	1.67
25	LG	South Korea	Technology	8,953	1.67
26	Sino Land	Hong Kong	Real Estate	8,704	1.62
27	DBS	Singapore	Financials	8,394	1.56
28	Hyundai Motor2	South Korea	Consumer Discretionary	8,314	1.55
29	Bank Mandiri	Indonesia	Financials	8,117	1.51
30	Telekom Indonesia Persero	Indonesia	Telecommunications	7,960	1.48
	Top thirty investments			402,038	74.85
31	Link REIT	Hong Kong	Real Estate	7,955	1.48
32	Bank Negara Indonesia	Indonesia	Financials	7,839	1.46
33	China CITIC Bank	China	Financials	7,565	1.41
34	First Pacific	Hong Kong	Consumer Discretionary	7,524	1.40
35	Samsung Fire & Marine	South Korea	Financials	7,119	1.33
36	Industrial Bank	China	Financials	7,112	1.32
37	Ampol	Australia	Energy	6,618	1.23
38	HSBC	Hong Kong	Financials	6,545	1.22
39	Midea	China	Consumer Discretionary	6,540	1.22
40	HKT Trust & HKT	Hong Kong	Telecommunications	6,311	1.18
	Top forty investments			473,166	88.10
41	FinVolution Group3	China	Financials	6,088	1.13
42	BDO Unibank	Philippines	Financials	6,032	1.12
43	SCB X	Thailand	Financials	6,010	1.12
44	Kerry Properties	Hong Kong	Real Estate	5,836	1.09
45	Macquarie Group	Australia	Financials	5,768	1.07
46	PCCW	Hong Kong	Telecommunications	5,696	1.06
47	Astra International	Indonesia	Consumer Discretionary	5,630	1.05
48	Swire Properties	Hong Kong	Real Estate	5,628	1.05
49	Brilliance China Automotive	China	Consumer Discretionary	5,214	0.97
50	China Resources Land	China	Real Estate	4,885	0.91
	Top fifty investments			529,953	98.67
51	Bosideng International	China	Consumer Discretionary	4,853	0.90
52	Lenovo	China	Technology	4,459	0.83
53	Quanta Computers	Taiwan	Technology	4,182	0.78
54	New China Life	China	Financials	4,034	0.75
55	Anta Sports	China	Consumer Discretionary	3,639	0.68
56	China Forestry4	China	Basic Materials	-	-
57	Alibaba Call 175 (Expiry 12/03/26)	China	Consumer Discretionary	(2)	-
58	China Hongqiao Put 29.8 (Expiry 04/05/26)	China	Basic Materials	(10)	-
59	Alibaba Call 194 (Expiry 27/04/26)	China	Consumer Discretionary	(22)	-
60	New China Life Call 71.2 (Expiry 13/04/26)	China	Financials	(22)	(0.01)
	Top sixty investments			551,064	102.60
61	Lenovo Call 10.3 (Expiry 19/03/26)	China	Technology	(53)	(0.01)
62	China Hongqiao Put 29.8 (Expiry 04/05/26)	China	Basic Materials	(69)	(0.01)
63	Samsung Fire & Marine Call 531 (Expiry 03/03/26)	South Korea	Financials	(70)	(0.01)
64	Hon Hai Precision Industry Call 259 (Expiry 07/04/26)	Taiwan	Technology	(108)	(0.02)
65	MediaTek Call 206 (Expiry 04/05/26)	Taiwan	Technology	(268)	(0.05)
66	Taiwan Semiconductor Manufacturing Call 353 (Expiry 06/03/26)	Taiwan	Technology	(361)	(0.07)
67	SK Square Call 643 (Expiry 11/05/26)	South Korea	Technology	(512)	(0.10)
68	Hyundai Motor Call 315 (Expiry 28/04/26)	South Korea	Consumer Discretionary	(606)	(0.11)
69	DB Insurance Call 139 (Expiry 03/03/26)	South Korea	Financials	(1,130)	(0.21)
70	MediaTek Call 152 (Expiry 12/03/26)	Taiwan	Technology	(1,495)	(0.28)
	Top seventy investments			546,392	101.73
71	SK Hynix Call 672 (Expiry 19/03/26)	South Korea	Technology	(1,893)	(0.35)
72	Taiwan Semiconductor Manufacturing Call 157 (Expiry 02/03/26)	Taiwan	Technology	(1,917)	(0.36)
73	SK Square Call 355 (Expiry 19/03/26)	South Korea	Technology	(2,660)	(0.49)
74	SK Hynix Call 687 (Expiry 12/03/26)	South Korea	Technology	(2,823)	(0.53)
	Total investments			537,099	100.00

1.     Comprises Taiwan and American Depositary Share holdings, split £21,299,000 and £5,574,000 respectively

2.     Preferred shares

3.     American Depositary Receipts

4.     Unquoted investment held at £nil

Geographic exposure	28 February 2026 %	31 August 2025 %
South Korea	24.2	12.6
China	17.1	29.9
Taiwan	12.3	17.9
Singapore	11.4	7.2
Hong Kong	10.1	11.1
Australia	8.2	9.0
Thailand	8.1	1.1
Indonesia	5.5	4.9
India	2.0	4.5
Philippines	1.1	1.0
Japan	-	0.8
Total	100.0	100.0

Sector exposure	28 February 2026 %	31 August 2025 %
Financials	35.1	33.5
Technology	25.4	24.4
Consumer Discretionary	14.4	19.7
Telecommunications	6.3	5.2
Real Estate	6.1	6.9
Energy	4.3	1.5
Industrials	4.1	2.2
Basic Materials	2.4	2.9
Utilities	1.9	3.7
Total	100.0	100.0

Condensed Statement of Comprehensive Income
	Half year ended 28 February 2026 (unaudited)			Half year ended 28 February 2025 (unaudited)			Year ended 31 August 2025 (audited)
	Revenue return £'000	Capital return £'000	Total return £'000	Revenue return £'000	Capital return £'000	Total return £'000	Revenue return £'000	Capital return £'000	Total return £'000
Investment income	14,275	-	14,275	7,481	-	7,481	40,816	-	40,816
Other income	5,708	-	5,708	4,750	-	4,750	9,793	-	9,793
Gains on investments held at fair value through profit or loss	-	81,602	81,602	-	740	740	-	4,838	4,838
Net foreign exchange (loss)/ profit excluding foreign exchange (losses)/gains on investments	-	(896)	(896)	-	(678)	(678)	-	860	860
	-----------	-----------	-----------	-----------	-----------	-----------	-----------	-----------	-----------
Total income	19,983	80,706	100,689	12,231	62	12,293	50,609	5,698	56,307
	-----------	-----------	-----------	-----------	-----------	-----------	-----------	-----------	-----------
Expenses
Management fees	(889)	(889)	(1,778)	(697)	(697)	(1,394)	(1,417)	(1,417)	(2,834)
Other expenses	(358)	(358)	(716)	(307)	(307)	(614)	(698)	(698)	(1,396)
	-----------	-----------	-----------	-----------	-----------	-----------	-----------	-----------	-----------
Profit/(loss) before finance costs and taxation	18,736	79,459	98,195	11,227	(942)	10,285	48,494	3,583	52,077
Finance costs	(478)	(478)	(956)	(270)	(270)	(540)	(745)	(745)	(1,490)
	-----------	-----------	-----------	-----------	-----------	-----------	-----------	-----------	-----------
Profit/(loss) before taxation	18,258	78,981	97,239	10,957	(1,212)	9,745	47,749	2,838	50,587
Taxation	(1,741)	648	(1,093)	(1,437)	(213)	(1,650)	(5,069)	(406)	(5,475)
	-----------	-----------	-----------	-----------	-----------	-----------	-----------	-----------	-----------
Profit/(loss) for the period and total comprehensive income/(loss)	16,517	79,629	96,146	9,520	(1,425)	8,095	42,680	2,432	45,112
	======	======	======	======	======	======	======	======	======
Earnings/ (losses) per ordinary share - basic and diluted (note 2)	8.69p	41.90p	50.59p	5.73p	(0.86p)	4.87p	24.98p	1.42p	26.40p
	======	======	======	======	======	======	======	======	======
The total return columns of this statement represents the Condensed Statement of Comprehensive Income of the Company, prepared in accordance with IAS 34. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies ('AIC'). All items in the above statement derive from continuing operations. All income is attributable to the equity shareholders of the Company. There are no minority interests.

Condensed Statement of Changes in Equity
	Half year ended 28 February 2026 (unaudited)
	Stated share capital £'000	Distributable reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total £'000
Total equity at 31 August 2025	311,852	177,596	(111,620)	29,831	407,659
Total comprehensive income:     Profit for the period	-	-	79,629	16,517	96,146
Transactions with owners, recorded directly to equity:
Dividends paid	-	(771)	-	(23,275)	(24,046)
Shares issued	39,204	-	-	-	39,204
Share issue costs	(62)	-	-	-	(62)
	------------	------------	------------	------------	------------
Total equity at 28 February 2026	350,994	176,825	(31,991)	23,073	518,901
	=======	=======	=======	=======	=======
	Half year ended 28 February 2025 (unaudited)
	Stated share capital £'000	Distributable reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total £'000
Total equity at 31 August 2024	272,708	177,596	(114,052)	29,852	366,104
Total comprehensive income:     (Loss)/profit for the period	-	-	(1,425)	9,520	8,095
Transactions with owners, recorded directly to equity:
Dividends paid	-	-	-	(20,655)	(20,655)
Shares issued	9,685	-	-	-	9,685
	------------	------------	------------	------------	------------
Total equity at 28 February 2025	282,393	177,596	(115,477)	18,717	363,229
	=======	=======	=======	=======	=======
	Year ended 31 August 2025 (audited)
	Stated share capital £'000	Distributable reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total £'000
Total equity at 31 August 2024	272,708	177,596	(114,052)	29,852	366,104
Total comprehensive income: Profit for the period	-	-	2,432	42,680	45,112
Transactions with owners, recorded directly to equity:
Dividends paid	-	-	-	(42,701)	(42,701)
Shares issued	39,252	-	-	-	39,252
Share issue costs	(108)	-	-	-	(108)
	------------	------------	------------	------------	------------
Total equity at 31 August 2025	311,852	177,596	(111,620)	29,831	407,659
	=======	=======	=======	=======	=======

Condensed Balance Sheet
	28 February 2026 (unaudited) £'000	28 February 2025  (unaudited) £'000	31 August 2025 (audited) £'000
Non current assets
Investments held at fair value through profit or loss (note 8)	551,120	379,335	439,575
	------------	------------	------------
Current assets
Other receivables	8,707	3,656	2,520
Cash and cash equivalents	25,110	9,272	24,684
	------------	------------	------------
	33,817	12,928	27,204
	------------	------------	------------
Total assets	584,937	392,263	466,779
	------------	------------	------------
Current liabilities
Investments held at fair value through profit or loss - written options (note 8)	(14,021)	(1,661)	(6,680)
Deferred taxation	-	-	(67)
Other payables	(2,139)	(3,547)	(2,550)
Bank loans	(49,876)	(23,826)	(49,591)
	------------	------------	------------
	(66,036)	(29,034)	(58,888)
	------------	------------	------------
Total assets less current liabilities	518,901	363,229	407,891
	------------	------------	------------
Non-current liabilities
Deferred tax liability on Indian capital gains	-	-	(232)
	------------	------------	------------
	-	-	(232)
	------------	------------	------------
Net assets	518,901	363,229	407,659
	=======	=======	=======
Equity attributable to equity shareholders
Stated share capital	350,994	282,393	311,852
Distributable reserve	176,825	177,596	177,596
Retained earnings:
Capital reserves	(31,991)	(115,477)	(111,620)
Revenue reserve	23,073	18,717	29,831
	------------	------------	------------
Total equity	518,901	363,229	407,659
	=======	=======	=======
Net asset value per ordinary share (note 3)	261.38p	216.48p	223.32p
	=======	=======	=======

Condensed Statement of Cash Flows
	Half year ended 28 February 2026 (unaudited) £'000	Half year ended 28 February 2025 (unaudited) £'000	Year ended 31 August 2025 (audited) £'000
Cash flows from operating activities
Profit before taxation	97,239	9,745	50,587
Add back:
Finance costs	956	540	1,490
Gains on investments held at fair value through profit or loss	(81,602)	(740)	(4,838)
Withholding tax on investment income	(1,235)	(1,294)	(860)
Net foreign exchange loss/(profit) excluding foreign exchange losses/(gains) on investments	896	678	(4,934)
(Increase)/decrease in prepayments and accrued income	(841)	104	(92)
(Increase)/decrease in amounts due from brokers	(4,506)	1,517	1,618
(Decrease)/increase in other payables	(419)	476	1,041
Decrease in amounts due to brokers	-	(225)	(1,699)
	--------------	--------------	-----------
Net cash inflow from operating activities	10,488	10,801	42,313
	--------------	--------------	--------------
Cash flows from investment activities
Sales of investments	258,494	211,851	492,486
Purchases of investments	(281,097)	(214,225)	(544,635)
Overseas capital gains tax on sales	(15)	(531)	(889)
	--------------	--------------	-------------
Net cash outflow from investing activities	(22,618)	(2,905)	(53,038)
	--------------	--------------	--------------
Cash flow from financing activities
Loan drawdown	58,196	83,180	220,499
Loan repayment	(58,495)	(73,542)	(186,156)
Equity dividends paid	(24,046)	(20,655)	(42,701)
Share issue proceeds	38,225	9,241	39,021
Share issue costs	(56)	-	(54)
Interest paid	(956)	(540)	(1,490)
	--------------	--------------	------------
Net cash inflow/(outflow) from financing activities	12,868	(2,316)	29,119
	--------------	--------------	--------------
Increase in cash and cash equivalents	738	5,580	18,349
	--------------	--------------	--------------
Cash and cash equivalents at the start of the period/year	24,684	5,482	5,482
Exchange movements	(312)	(1,790)	808
	--------------	--------------	--------------
Cash and cash equivalents at the end of the period/year	25,110	9,272	24,684
	========	========	========
Net debt
Cash and cash equivalents	25,110	9,272	24,684
Bank loans repayable within one year	(49,876)	(23,826)	(49,591)
	--------------	--------------	--------------
Net debt	(24,766)	(14,554)	(24,907)
	========	========	========

Notes to the condensed financial statements 1. Accounting Policies: (a) Basis of preparation The condensed interim financial statements have been prepared on a going concern basis in accordance with IAS 34 and the UK Disclosure Guidance and Transparency Rules. The annual report and financial statements for the year ended 31 August 2025 were prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union. Where presentational guidance as set out in the Statement of Recommended Practice (the 'SORP') for investment trusts issued by the Association of Investment Companies ('AIC') in July 2022 is consistent with the requirements of IFRS, the directors have sought to prepare the financial statements on a basis consistent with the recommendations of the SORP. The unaudited results for the half-year ended 28 February 2026 have been prepared in accordance with the same accounting policies as those applied in the Company's financial statements for the year ended 31 August 2025. There has been no change to the segmental reporting assessment compared to the 31 August 2025 financial statements. These condensed financial statements do not include all information required for a full set of financial statements. The figures and financial information for the year ended 31 August 2025 are an extract based on the published financial statements and should be read in conjunction with them. The condensed financial statements for the half-years ended 28 February 2026 and 28 February 2025 have not been audited or reviewed by the auditor. (b) Investments held at fair value through profit or loss All investments are classified upon initial recognition as held at fair value through profit or loss and are measured initially and subsequently at fair value. These financial assets are designated on the basis that they are part of a group of financial assets which are managed and have their performance evaluated on a fair value basis. Financial assets are recognised/de-recognised at the trade date of the purchase/disposal. Proceeds will be measured at fair value, which will be regarded as the proceeds of sale less any transaction costs. The fair value of the financial assets is based on their quoted bid price at the Balance Sheet date, without deduction of the estimated future selling costs. The fair value of option contracts is determined by reference to the Black-Scholes model. The fair values of unquoted financial instruments within the portfolio are based on their last audited net asset values discounted where necessary to arrive at fair value. Changes in the fair value of investments held at fair value through profit or loss and gains and losses on disposal, including exchange gains and losses, are recognised in the Statement of Comprehensive Income as 'Gains on investments held at fair value through profit or loss'. Also included within this caption are transaction costs in relation to the purchase or sale of investments, including the difference between the purchase price of an investment and its bid price at the date of purchase. (c) Material accounting judgements and estimates The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect the amounts recognised in the financial statements; however, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in the future. As the majority of the Company's financial assets are quoted securities, in the opinion of the directors, the amounts included as assets and liabilities in the financial statements are not subject to significant judgements, estimates or assumptions. The obligations relating to the options valued at £14,021,000 (liability) (28 February 2025: £1,661,000 (liability), 31 August 2025: £6,680,000 (liability)) are valued by reference to the Black-Scholes model. 2. Earnings per ordinary share The earnings per ordinary share figure is based on the net profit after taxation of £96,146,000 (half-year ended 28 February 2025: £8,095,000; year ended 31 August 2025: £45,112,000) and on 190,046,823 ordinary shares (half-year ended 28 February 2025: 166,062,138; year ended 31 August 2025: 170,875,254) being the weighted average number of ordinary shares in issue during each of the periods, excluding shares held in treasury. The earnings per ordinary share detailed above can be further analysed between revenue and capital, as below:
		Half-year ended 28 February 2026 (unaudited) £'000		Half-year ended 28 February 2025 (unaudited) £'000		Year ended 31 August 2025 (audited) £'000
Net revenue profit		16,517		9,520		42,680
Net capital profit/(loss)		79,629		(1,425)		2,432
Net total profit		96,146		8,095		45,112
Weighted average number of ordinary shares in issue during the period / year		190,046,823		166,062,138		170,875,254
		Pence		Pence		Pence
Revenue earnings per ordinary share		8.69		5.73		24.98
Capital earnings/(losses) per ordinary share		41.90		(0.86)		1.42
Total earnings per ordinary share		50.59		4.87		26.40

The Company has no securities in issue that could dilute the return per ordinary share. Therefore, the basic and diluted earnings per ordinary share are the same. 3. Net asset value per ordinary share The net asset value per ordinary share is based on a net asset value of £518,901,000 (half-year ended 28 February 2025: £363,229,000; year ended 31 August 2025: £407,659,000) and 198,524,679 (half-year ended 28 February 2025: 167,789,679; year ended 31 August 2025: 182,544,679) ordinary shares, being the number of ordinary shares in issue at each period end, excluding shares held in treasury. 4. Transaction costs Purchase transaction costs for the half year ended 28 February 2026 were £349,000 (half year ended 28 February 2025: £232,000; year ended 31 August 2025: £640,000). Sales transaction costs for the half year ended 28 February 2026 were £450,000 (half year ended 28 February 2025: £268,000; year ended 31 August 2025: £748,000). Transaction costs for both purchases and sales principally consist of commission fees. 5. Stated share capital At 28 February 2026, there were 198,524,679 shares in issue. During the half year period ended 28 February 2026, 15,980,000 shares were issued for net proceeds of £39,142,000 (half year ended 28 February 2025: 4,237,500 shares for net proceeds £9,685,000; year ended 31 August 2025: 17,607,500 shares for net proceeds £39,144,000).  No shares were repurchased for treasury (half-year ended 28 February 2025 and year ended 31 August 2025 - no shares repurchased). Since the period end and up to 13 April 2026, being the latest practicable date before publication of these results, a further 4.8m shares have been issued raising £12.0m for investment. 6. Dividends The Company pays dividends on a quarterly basis. On 28 November 2025, a final dividend of 6.25p per share was paid in respect of the year ended 31 August 2025. A first interim dividend, in respect of the year ending 31 August 2026, of 6.25p per share was paid on 27 February 2026. The second interim dividend of 6.25p per share will be paid on 29 May 2026 to shareholders on the register on 1 May 2026. The Company's shares will be quoted ex-dividend on 30 April 2026. Based on the number of shares in issue on 13 April 2026, the cost of this dividend will be £12,708,000. 7. Management fee The management fee calculation is a flat rate of 0.75% of net assets per annum, charged quarterly in arrears.   8. Financial Instruments At the period end the carrying value of financial assets and financial liabilities approximates their fair value. Financial instruments carried at fair value Fair value hierarchy The table below analyses recurring fair value measurements for financial assets and financial liabilities. These fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to valuation techniques used. The different levels are defined as follows: ·      Level 1: inputs are quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. ·      Level 2: inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ·      Level 3: inputs are unobservable inputs for the asset or liability.
Financial assets and financial liabilities at fair value through profit or loss at 28 February 2026	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Investments including derivatives:
- Equity investments	551,120	-	-	551,120
- OTC derivatives (options)	-	(14,021)	-	(14,021)
	551,120	(14,021)	-	537,099
Financial assets and financial liabilities at fair value through profit or loss at 28 February 2025	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Investments including derivatives:
- Equity investments	379,335	-	-	379,335
- OTC derivatives (options)	-	(1,661)	-	(1,661)
	379,335	(1,661)	-	377,674
Financial assets and financial liabilities at fair value through profit or loss at 31 August 2025	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Investments including derivatives:
- Equity investments	439,575	-	-	439,575
- OTC derivatives (options)	-	(6,680)	-	(6,680)
	439,575	(6,680)	-	432,895

Level 3 investments related to one holding of China Forestry, transferred into level 3 in 2012 and written to zero market value during 2014 following a missed coupon payment, delayed publication of annual report and accounts and resignation of Chief Financial Officer and Company Secretary.  This investment has continued to be held at zero value throughout 2025 and to 28 February 2026. There have been no transfers into/out of, and no movements, in Level 3 investments during the half-year ended 28 February 2026 and 28 February 2025 and the year ended 31 August 2025. The Company's holdings in options are included within Level 2.  The valuation techniques used by the Company are explained in note 1(b). Premiums from written options during the half-year ended 28 February 2026 were £5,543,000 (half-year ended 28 February 2025: £4,658,000; year ended 31 August 2025: £9,583,000).

9. Net debt reconciliation
		Bank loans and
	Cash and	overdraft repayable
	cash equivalents	within one year	Total
	£'000	£'000	£'000
Net debt as at 31 August 2025	24,684	(49,591)	(24,907)
Cash flows	738	299	1,037
Exchange movements	(312)	(584)	(896)
Net debt as at 28 February 2026	25,110	(49,876)	(24,766)
		Bank loans and
	Cash and	overdraft repayable
	cash equivalents	within one year	Total
	£'000	£'000	£'000
Net debt as at 31 August 2024	5,482	(15,300)	(9,818)
Cash flows	5,580	(9,638)	(4,058)
Exchange movements	(1,790)	1,112	(678)
Net debt as at 28 February 2025	9,272	(23,826)	(14,554)
	Cash and cash equivalents £'000	Bank loans and overdraft repayable within one year £'000	Total £'000
Net debt as at 31 August 2024	5,482	(15,300)	(9,818)
Cash flows	18,394	(34,343)	(15,949)
Exchange movements	808	52	860
Net debt as at 31 August 2025	24,684	(49,591)	(24,907)

10. Going concern The directors have determined that it is appropriate to prepare the financial statements on a going concern basis and have concluded that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. In coming to this conclusion, the directors have considered the nature of the portfolio, being that the securities held are readily realisable, the size and covenants of the Company's bank overdraft and the strength of its distributable reserves. As part of their usual assessment of risks facing the Company, the directors considered the macro-economic and geopolitical environment, as well as the possible impact of climate change risk on the value of the portfolio. The directors have concluded that the Company is able to meet its financial obligations, including the repayment of the loan facility, as they fall due for a period of at least twelve months from the date of this report. 11. Related party transactions The Company's current related parties are its directors and the investment manager. There have been no material transactions between the Company and the directors during the period, with only amounts paid to them being in respect of remuneration. In relation to the provision of services by the investment manager (other than fees payable by the Company in the ordinary course of business and the provision of marketing services) there have been no material transactions with investment manager affecting the financial position of the Company during the period under review. 12. Half year report The Company's half year report for the six months ended 28 February 2026, together with a summary extract  is available on the Company's website at: www.hendersonfareastincome.com.  Copies of the summary will be posted to shareholders in April 2026. Both documents will shortly be available for inspection on the National Storage Mechanism at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism. 13. General information a) Company Status The Company is registered with limited liability in Jersey as a closed end investment company, number 95064, under the Companies (Jersey) Law 1991 and is certified as a collective investment fund under the Collective Investment Funds (Jersey) Law 1998.  The Company has obtained a Fund Certificate under Article 7 of the Collective Investment Funds (Jersey) Law.  The Company is listed on the London and New Zealand stock exchanges and became UK tax resident with effect from 1 September 2018. SEDOL/ISIN:  B1GXH75/JE00B1GXH751 London Stock Exchange (TIDM) code:  HFEL New Zealand Stock Exchange code:  HFL Global Intermediary Identification Number (GIIN):  nttiyp.99999.sl.826 Legal Entity Identifier (LEI):  2138008DIQREOD38O596 b) Directors, Secretary and Registered Office The directors of the Company are Ronald Gould (Chairman), Timothy Clissold, Carole Ferguson (Senior Independent Director), Nicholas George (Chairman of the Audit Committee), Susan Rippingall and Steven Wilderspin.  The Corporate Secretary is Janus Henderson Secretarial Services UK Limited.  The registered office is IFC1, The Esplanade, St Helier, Jersey, JE1 4BP.  The principal place of business is 201 Bishopsgate, London, EC2M 3AE. c) Website Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersonfareastincome.com For further information please contact:
Sat Duhra Fund Manager Henderson Far East Income Limited Telephone: [phone]
Dan Howe Head of Investment Trusts Janus Henderson Investors Telephone: [phone]	Harriet Hall PR Manager Janus Henderson Investors Telephone: [phone]
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END