Annual Report to 31 August 2021

Asia Dragon

Trust plc

Capturing growth from world-class Asian companies

Annual Report 31 August 2021

Launched in 1987, the Company is an investment company and its Ordinary shares are listed on the premium segment of the London Stock Exchange. It is a member of the Association of Investment Companies ("AIC").

The Company is governed by a Board of Directors, all of whom are non-executive and independent. Like many other investment companies, it outsources its investment management and administration to an investment management group, abrdn plc (previously known as Standard Life Aberdeen plc).

Investment Objective

To achieve long-term capital growth through investment in Asia, with the exception of Japan and Australasia. Investments are made primarily in stock markets in the region, principally in large companies. When appropriate, the Company will utilise gearing to maximise long term returns.

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are recommended to seek your own financial advice from your stockbroker, bank manager, solicitor, accountant or other financial adviser authorised under the Financial Services and Markets Act 2000 (as amended by the Financial Services Act 2012) if you are in the United Kingdom or, if not, from another appropriately authorised financial adviser. If you have sold or otherwise transferred all your Ordinary shares in Asia Dragon Trust plc, please forward this document, together with the accompanying documents immediately to the purchaser or transferee, or to the stockbroker, bank or agent through whom the sale or transfer was effected for transmission to the purchaser or transferee.

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To find out more about Asia Dragon Trust plc, please visit: asiadragontrust.co.uk

Asia Dragon Trust plc

1

"Your Manager's long track record, on the ground presence and focus on companies with good ESG practices has enabled them to anticipate the notable strides made by Chinese corporates."

James Will, Chairman

"As stock-pickers, we remain focused on seeking out and investing in well-managed companies backed by solid fundamentals and led by sound management. These companies are dominant in their segments, have strong franchises, with sustainable earnings streams and robust balance sheets."

Adrian Lim and Pruksa Iamthongthong, abrdn (Asia) Limited

Contents

Overview

Highlights and Financial Calendar

Strategic Report

Chairman's Statement

Investment Manager's Review

Overview of Strategy

Our Manager's Approach to ESG

Results

Performance

Portfolio

Ten Largest Investments

Investment Portfolio

Changes in Asset Distributions

Analysis of Portfolio

Investment Case Studies

Governance

Your Board of Directors

Directors' Report

Statement of Corporate Governance

Report of the Audit & Risk Committee

Directors' Remuneration Report

Financial Statements

Statement of Directors' Responsibilities Independent Auditor's Report to the Members of Asia Dragon Trust plc

Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows

Notes to the Financial Statements

Corporate Information

Alternative Performance Measures Information about the Manager Investor Information

Glossary of Terms and Conditions Your Company's Share Capital History Alternative Investment Fund Managers Directive Disclosures (Unaudited)

General

Notice of Annual General Meeting

Corporate Information

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101

Overview

Report Strategic

Portfolio

Governance

Financial Statements

Corporate Information

General

2 Annual Report 2021

Highlights and Financial Calendar

Net asset value total returnA

+20.5%

	2020	+4.7%

Ongoing chargesA

0.83%

Share price total returnA

+24.3%

	2020	+4.6%

Earnings per share (revenue)

7.36p

Benchmark total returnA (in sterling terms)

+14.7%

	2020	+10.9%

Dividend per share

6.50p

				2020	5.01p
2020	0.89%			2020	4.75p

1. Considered to be an Alternative Performance Measure. Further details can be found on pages 86 and 87.

Net asset value per share				Dividends per share				Mid-market price per share
					566.6			6.50					512.0
423.3	421.5	458.0	474.4			4.75			361.0	370.0	402.5	416.0
		4.75
							4.00
							3.30

	17	18	19	20	21	17	18	19	20	21	17	18	19	20	21
													At 31 August - pence
	At 31 August - pence				Year ended 31 August - pence

Dividends

	Rate	xd date	Record date	Payment date
Proposed final 2021	6.50p	18 November 2021	19 November 2021	17 December 2021
Final 2020	4.75p	19 November 2020	20 November 2020	15 December 2020

Asia Dragon Trust plc

3

"The Board has declared a final dividend of 6.5p per Ordinary share."

James Will, Chairman

Highlights

Financial Calendar

Financial year end	31 August 2021
Annual General Meeting	15 December 2021
Payment of Final Dividend	17 December 2021

Overview

Report Strategic

	31 August 2021		31 August 2020	% change
Performance
Equity shareholders' funds (£'000)	706,929	599,431	+17.9
Net asset value per share (capital return basis) (basic) (p)	566.60	474.39	+19.4
Share price (capital return basis) (p)	512.00	416.00	+23.1
Market capitalisation (£'000)	638,804	525,651	+21.5
MSCI AC Asia (ex Japan) Index (in sterling terms; capital return basis)	1138.78	1012.62	+12.5
Revenue return per share (basic) (p)	7.36	5.01	+46.9
Total return per share (basic) (p)	96.60	19.94	+384.5
Gearing
Net gearing (%)A	7.9	3.5
Discount
Discount to net asset value (basic) (%)A	9.6	12.3
Operating costs
Ongoing charges ratioA	0.83	0.89

1. Considered to be an Alternative Performance Measure. Further details can be found on pages 86 and 87.

Governance

Financial Statements

Corporate Information

General