CCIB SPC – ASIA PACIFIC SMALL AND MID CAP COMPANIES ...Mid Cap Companies Segregated Portfolio (“the Fund”), a sub-fund of CCIB SPC, set out on pages 3 to 27, which comprise the

Investment Manager

CCIB Asset Management (Cayman) Limited

Investment Advisor

United Gain Investment Limited

FINANCIAL STATEMENTS

For the year ended

30 June 2016

CCIB SPC – ASIA PACIFIC SMALL AND MID CAP COMPANIES SEGREGATED PORTFOLIO

(A sub-fund of CCIB SPC) (Incorporated as an exempted company in the Cayman Islands with limited liability)

CCIB SPC - ASIA PACIFIC SMALL AND MID CAP COMPANIES SEGREGATED PORTFOLIO (A SUB-FUND OF CCIB SPC) (Incorporated as an exempted company in the Cayman Islands with limited liability) FINANCIAL STATEMENTS Contents Pages Management and administration 1 Independent auditor’s report 2 Statement of financial position 3 Statement of comprehensive income 4 Statement of changes in equity 5 Statement of cash flows 6 Notes to the financial statements 7 to 27

- 1 -

CCIB SPC - ASIA PACIFIC SMALL AND MID CAP COMPANIES SEGREGATED PORTFOLIO (A SUB-FUND OF CCIB SPC) (Incorporated as an exempted company in the Cayman Islands with limited liability) MANAGEMENT AND ADMINISTRATION Directors Custodian, Sub-Administrator, Registrar’s Agent Lau Chi Yiu Lum Chor Wah, Richard RBC Investor Services Trust Hong Kong Limited Wilkins, Garry 51st Floor, Central Plaza Tompkins, Ronald 18 Harbour Road Fleming, John Wanchai Hong Kong Registered Office Legal Advisors P.O. Box 309 GT Ugland House Cayman Islands Counsel South Church Street Maples and Calder George Town 53rd Floor, The Center Grand Cayman KY1-1104 99 Queen’s Road Central Cayman Islands Hong Kong Investment Advisor Hong Kong Counsel Robertsons United Gain Investment Limited 57th Floor, The Center Unit 721, Level 7 Cyberport 1 99 Queen’s Road 100 Cyberport Road Central Hong Kong Hong Kong Investment Manager Auditor CCIB Asset Management (Cayman) Limited PricewaterhouseCoopers P.O. Box 309 GT 18 Forum Lane Ugland House P.O. Box 258 Grand Cayman South Church Street Cayman Islands George Town KY1-1104 Grand Cayman Cayman Islands Administrator and Registrar MUFG Fund Services (Cayman) Limited P.O. Box 609 68 Fort Street George Town Grand Cayman KY1-1107 Cayman Islands

- 2 -

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF DIRECTORS OF CCIB SPC - ASIA PACIFIC SMALL AND MID CAP COMPANIES SEGREGATED PORTFOLIO (A SUB-FUND OF CCIB SPC) (Incorporated as an exempted company in the Cayman Islands with limited liability) We have audited the accompanying financial statements of CCIB SPC - Asia Pacific Small and Mid Cap Companies Segregated Portfolio (“the Fund”), a sub-fund of CCIB SPC, set out on pages 3 to 27, which comprise the statement of financial position as at 30 June 2016, and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view

in accordance with International Financial Reporting Standards, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of the Fund as at 30 June 2016, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. PricewaterhouseCoopers Cayman Islands, 3 November 2016

- 3 -

CCIB SPC - ASIA PACIFIC SMALL AND MID CAP COMPANIES SEGREGATED PORTFOLIO (A SUB-FUND OF CCIB SPC) (Incorporated as an exempted company in the Cayman Islands with limited liability) STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 Note 2016 2015 US$ US$ Assets - current assets Financial assets at fair value through profit or loss 3.1 3,105,184 3,722,844Accrued income and other receivables 30,046 23,487Deposits with brokers 810,600 677,720Cash and cash equivalents 6 556,674 292,766 ──────── ────────Total assets 4,502,504 4,716,817 --------------- --------------- Liabilities - current liabilities Performance fee payable 11.2 - 116,404Amount due to brokers 22,984 57,640Redemption payable - 22,609Management fee payable 11.1 17,723 18,371Administration fee payable 10.2 1,282 1,210Custodian fee payable 10.1 929 876Registrar fee payable 10.3 500 250Audit fee payable 28,600 28,100Other accrued expenses 215 246 ──────── ────────Total liabilities 72,233 245,706 --------------- --------------- Equity Net assets attributable to holders of redeemable participating shares 4,430,271 4,471,111

════════ ════════ Lau Chi Yiu Lum Chor Wah, Richard ……………………….… …………………………… Director Director The accompanying notes on pages 7 to 27 form an integral part of these financial statements.

- 4 -

CCIB SPC - ASIA PACIFIC SMALL AND MID CAP COMPANIES SEGREGATED PORTFOLIO (A SUB-FUND OF CCIB SPC) (Incorporated as an exempted company in the Cayman Islands with limited liability) STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 Note 2016 2015 US$ US$Income Net (losses)/gains on financial assets at fair value through profit or loss 7 (559,961) 983,196Dividend income 65,301 69,452 ──────── ────────Total net (loss)/income (494,660) 1,052,648 --------------- ---------------Expenses Transaction costs 10.4 143,014 192,950Performance fee 11.2 - 116,404Management fee 11.1 63,030 68,848Professional fee 28,800 28,310Administration fee 10.2 13,816 13,800Custodian fee 10.1 10,012 10,000Registrar’s fee 10.3 4,637 5,055Other expenses 906 1,275 ──────── ────────Total operating expenses 264,215 436,642 --------------- --------------- (Loss)/profit before tax (758,875) 616,006 Withholding taxes 9 (2,613) (1,802) ──────── ────────Total comprehensive (loss)/income (761,488) 614,204 ════════ ════════ The accompanying notes on pages 7 to 27 form an integral part of these financial statements.

- 5 -

CCIB SPC - ASIA PACIFIC SMALL AND MID CAP COMPANIES SEGREGATED PORTFOLIO (A SUB-FUND OF CCIB SPC) (Incorporated as an exempted company in the Cayman Islands with limited liability) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016

Note 2016 2015 US$ US$ At beginning of the year 4,471,111 4,494,225 Proceeds of redeemable participating shares issued 8 770,080 - Redemption of redeemable participating shares 8 (49,432) (637,318) Total comprehensive (loss)/income (761,488) 614,204 ───────── ───────── At the end of the year 4,430,271 4,471,111 ═════════ ═════════ The accompanying notes on pages 7 to 27 form an integral part of these financial statements.

- 6 -

CCIB SPC - ASIA PACIFIC SMALL AND MID CAP COMPANIES SEGREGATED PORTFOLIO (A SUB-FUND OF CCIB SPC) (Incorporated as an exempted company in the Cayman Islands with limited liability) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016 2016 2015 US$ US$ Cash flows from operating activities Total comprehensive (loss)/income (761,488) 614,204 Adjustment for: Dividend income (65,301) (69,452)Withholding taxes 2,613 1,802 ──────── ──────── Operating (loss)/profit before working capital changes (824,176) 546,554 (Increase)/decrease in deposits with brokers (132,880) 271,120 Net decrease/(increase) in financial assets at fair value through profit or loss 617,660 (719,698)

Increase in other receivables (3) - (Decrease)/increase in amount due to brokers (34,656) 21,507 Increase/(decrease) in accrued expenses and other payables 196 (1,702)(Decrease)/increase in performance fee payable (116,404) 116,404 Dividend income received 56,132 53,238

──────── ──────── Net cash (used in)/generated from operating activities (434,131) 287,423 --------------- --------------- Cash flows from financing activities Issue of redeemable participating shares 770,080 - Redemption of redeemable participating shares (72,041) (614,709) ──────── ──────── Net cash generated from/(used in) financing activities 698,039 (614,709) --------------- --------------- Net increase/(decrease) in cash and cash equivalents 263,908 (327,286) Cash and cash equivalents at beginning of the year 292,766 620,052 ──────── ──────── Cash and cash equivalents at end of the year 556,674 292,766 ════════ ════════ Analysis of cash and cash equivalents Cash held with a cash custodian 556,674 292,766 ════════ ════════ The accompanying notes on pages 7 to 27 form an integral part of these financial statements.

- 7 -

CCIB SPC - ASIA PACIFIC SMALL AND MID CAP COMPANIES SEGREGATED PORTFOLIO (A SUB-FUND OF CCIB SPC) (Incorporated as an exempted company in the Cayman Islands with limited liability)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

1 General information

CCIB SPC (“the Company”) was incorporated on 7 November 2003 as an exempted company in the Cayman Islands with limited liability. CCIB SPC - Asia Pacific Small and Mid Cap Companies Segregated Portfolio (the “Fund”), a sub-fund of the Company, is an open-ended investment fund. The other sub-funds of the Company are CCIB SPC - Great Wall Segregated Portfolio; CCIB SPC - Diversified FX Trading Segregated Portfolio and CCIB SPC - Diversified FX Trading (EURO) Segregated Portfolio. During the year ended 30 June 2016, all other sub-funds are in operations.

In accordance with the Fund’s Offering Memorandum dated 27 June 2005 (the “Offering Memorandum”) which amended on 19 March 2011, the primary investment objective of the Fund is to achieve medium to long term capital appreciation by investing in listed and/or unlisted small and mid-cap companies primarily located in or generating most of their income from the Asia-Pacific region with a market capitalisation below US$500 million at the time of purchase. The limit of investment’s market capitalisation is changed to US$2 billion effective on 17 April 2006 based on the director’s resolution on 27 March 2006. The Fund has no employees and the management and administration of the Fund is undertaken by other parties as set out in Notes 10 and 11 to the financial statements.

2 Summary of significant accounting policies

The principal accounting policies applied in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation The financial statements of the Fund are prepared in accordance with International Financial Reporting Standards (“IFRS”). The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets held at fair value through profit or loss. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Fund’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 4.

- 8 -



2 Summary of significant accounting policies (Continued)

2.1 Basis of preparation (Continued) (a) Standards and amendments to existing standard effective 1 July 2015

There are no standards, interpretations or amendments to existing standards that are effective for the first time for the financial year beginning 1 July 2015 that would be expected to have a material impact on the Fund.

(b) New standards, amendments and interpretations issued that are relevant to the Fund, but are not effective for the financial year beginning 1 July 2015 and have not been early adopted by the Fund IFRS 9 “Financial instruments” addresses the classification, measurement and recognition of financial assets and liabilities. The complete version of IFRS 9 was issued in July 2014. It replaces the guidance in IAS 39 that relates to the classification and measurement of financial instruments. IFRS 9 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income and fair value through profit or loss. The basis of classification depends on the entity's business model and the contractual cash flow characteristics of the financial asset. Investments in equity instruments are required to be measured at fair value through profit or loss with the irrevocable option at inception to present changes in fair value in other comprehensive income not recycling to profit or loss. There is now a new expected credit losses model that replaces the incurred loss impairment model used in IAS 39. For financial liabilities, there were no changes to classification and measurement except for the recognition of changes in own credit risk in other comprehensive income for liabilities designated at fair value through profit or loss. IFRS 9 relaxes the requirements for hedge effectiveness by replacing the bright line hedge effectiveness tests. It requires an economic relationship between the hedged item and hedging instrument and for the hedged ratio to be the same as the one management actually uses for risk management purposes. Contemporaneous documentation is still required but is different to that currently prepared under IAS 39. The standard is effective for accounting periods beginning on or after 1 January 2018. Early adoption is permitted. The Fund is yet to assess IFRS 9’s full impact and intends to adopt IFRS 9 no later than the accounting period on its mandatory effective date. There are no other IFRSs that are not yet effective that would be expected to have a material impact on the Fund.

- 9 -


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2016 2 Summary of significant accounting policies (Continued) 2.2 Foreign currency translation

(a) Functional and presentation currency

Items included in the Fund’s financial statements are measured using the currency of the primary economic environment in which it operates (the “functional currency”). This is the United States dollars (“US$”), which reflects the currency in which the Fund issues its participating redeemable shares.

The Fund has adopted the US dollars as its presentation currency as the Fund reports its performance in that currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign currency assets and liabilities are translated into the functional currency, using the exchange rate prevailing at the financial position date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of all assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

2.3 Financial assets at fair value through profit or loss

(a) Classification

The Fund classifies its investments in equities, investment funds and derivative instruments as financial assets at fair value through profit or loss. These financial assets are held for trading. Financial assets held for trading are acquired or incurred principally for the purpose of selling or repurchasing in the short term. Derivatives are also categorised as held for trading, as the Fund does not designate any derivatives as hedges in a hedging relationship.

- 10 -



FOR THE YEAR ENDED 30 JUNE 2016

2 Summary of significant accounting policies (Continued) 2.3 Financial assets at fair value through profit or loss (Continued)

(b) Recognition/derecognition

Regular-way purchases and sales of investments are recognised on trade date - the date on which the Fund commits to purchase or sell the investments. Investments are derecognised when the rights to receive cash flows from the investments have expired or the Fund has transferred substantially all risks and rewards of ownership.

(c) Measurement

Investments are initially recognised at fair value, and transaction costs for financial assets carried at fair value through profit or loss are expensed as incurred. Subsequent to initial recognition, investments are measured at fair value. Fair values for quoted securities in an active market are based on last traded price falls within the bid-ask spread. Fair values for unquoted securities, if any, are estimated by the Fund’s directors taking into account the cost to the Fund, relevant developments since the acquisition of the investments, and other factors pertinent to the valuation of the investments such as further rounds of financing and third party off-market transactions. Gains and losses arising from changes in the fair value of the “financial assets at fair value through profit or loss” category are included in the statement of comprehensive income within “net (losses)/gains on financial assets at fair value through profit or loss” in the period in which they arise.

(d) Fair value estimation

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets and liabilities traded in active markets (such as publicly traded derivatives and trading securities) are based on quoted market prices at the close of trading on the reporting date. The Fund adopted IFRS 13, “‘Fair value measurement” and utilised the last traded market price for both financial assets and financial liabilities where the last traded price falls within the bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread, management will determine the point within the bid-ask spread that is most representative of fair value.

(e) Transfers between levels of the fair value hierarchy

Transfers between levels of the fair value hierarchy are deemed to have occurred at the date of the event or change in circumstances that caused the transfer.

- 11 -



FOR THE YEAR ENDED 30 JUNE 2016 2 Summary of significant accounting policies (Continued) 2.4 Derivative financial instruments

Derivatives are recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at their fair value. Fair values are obtained from quoted market prices in active markets, including recent market transactions, and valuation techniques, including discounted cash flow models and options pricing models, as appropriate. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative. Changes in fair values of derivatives are included in the statement of comprehensive income.

2.5 Income recognition

Interest income is recognised on a time-proportionate basis using the effective interest method.

Dividend income is recognised when the shareholders’ rights to receive payment is established and is stated gross of overseas withholdings tax.

2.6 Expenses

Expenses are accounted for on an accrual basis.

2.7 Cash and cash equivalents Cash and cash equivalents comprise cash and bank balances with original maturity of three months or less. Cash held by the brokers as collateral are excluded from cash and cash equivalents.

2.8 Amounts due from/to brokers Amounts due from and to brokers represent receivables for securities sold and payables for securities purchased that have been contracted for but not yet settled or delivered by end of the year.

2.9 Redeemable participating shares The Fund issues participating shares which are redeemable at the participating shareholders’ option. In accordance with IAS 32 (Amendment) “Financial Instruments: Presentation”, it requires puttable financial instruments that meet the definition of a financial liability to be classified as equity where certain strict criteria are met. Those criteria include: - the puttable instruments must entitle the holder to a pro-rata share of net assets; - the puttable instruments must be the most subordinated class and that class’s features must

be identical; - there must be no contractual obligations to deliver cash or another financial asset other than

the obligation on the issuer to repurchase; and - the total expected cash flows from the puttable instrument over its life must be based

substantially on the profit or loss of the issuer. The Fund’s redeemable participating shares meet these criteria and therefore have been classified as equity.

- 12 -



FOR THE YEAR ENDED 30 JUNE 2016 2 Summary of significant accounting policies (Continued) 2.10 Management shares

Management shares are issued at the Company level. Management shares are not redeemable and do not participate in the net income or dividends of the Fund.

3 Financial risk management

The Fund’s activities expose it to a variety of financial risks - market price risk, credit risk, interest rate risk, currency risk and liquidity risk. The risks and the respective risk management policies employed by the Fund are discussed below:

3.1 Market price risk

Market price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices whether those changes are caused by factors specific to the individual instrument or factors affecting all instruments in the market. All securities investments present a risk of loss of capital. The Fund’s market price risk is managed through diversification of investment portfolio. The following table shows the net market position of the Fund by securities type and geographical location.

2016 2015 By securities type and geographical location US$ US$ Listed equity securities and rights – Listed in Hong Kong Stock Exchange 2,731,414 3,168,502 – Listed in Indonesia Stock Exchange 92,669 140,765 – Listed in Singapore Stock Exchange 96,361 116,028 – Listed in NASDAQ 73,564 133,892 Listed investment funds – Listed in Hong Kong Stock Exchange 111,176 163,657 ──────── ──────── 3,105,184 3,722,844 ════════ ════════

The following table shows the net market exposure of the Fund by industry:

By industry 2016 2015 % investment

portfolio % investment

portfolio Financials 15.41 16.32 Properties & Construction 13.33 9.70 Telco 8.72 11.32 Information technology 8.37 18.40 Industrial 7.85 7.26 Resources 7.68 10.67 Others 38.64 26.33 ──────── ──────── 100.00 100.00 ════════ ════════

- 13 -



3 Financial risk management (Continued) 3.1 Market price risk (Continued)

The table shown below summarises the impact on the Fund’s net asset attributable to holders of redeemable participating shares in response to theoretical increases/decreases of the market index of Hong Kong, Indonesia, Singapore, China and US to which the Fund is exposed. The analysis is based on the assumption that the indices had increased/decreased by the respective percentage with all other variables held constant and each of the Fund’s investments moved in line with the historical correlation with the movement of the index, which may not be the case. The sensitivity analysis is presented gross of the impact, if any, of performance fees. Changes in market index percentage are revised annually depending on directors’ current view of market volatility and other relevant factors.

2016 2015 Estimated

change in market index

Impact on net assets

Estimated change in

market index Impact on net assets

US$ US$ +/- +/- +/- +/- Hang Seng Index 14% 412,686 10% 326,624 Jakarta Composite Index 11% 11,101 14% 15,197 Straits Times Index 15% 15,451 6% 9,872 NASDAQ Composite Index 5% 3,803 17% 25,980 FTSE China A50 Index 28% 18,420 54% 51,668 Shanghai Shenzhen CSI 300 Index 30% 15,201 53% 34,880 ─────── ─────── 476,662 464,221 ═══════ ═══════

The directors have used their view of what would be a “reasonable shift” in each key market to estimate the impact in the market sensitivity analysis above.

3.2 Credit risk Credit risk is the risk that an issuer or counterparty will be unable or unwilling to pay amounts in full when due. All transactions in securities are settled/paid for upon delivery. The risk of default is considered minimal as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its obligation. The Fund is exposed to credit risk in respect of its assets (investments and cash balance) held with external cash custodian and brokers. The following analysis summarises the credit quality of the cash custodian and brokers, whose credit ratings are issued by Standard & Poor’s at year-end:

Credit rating Total assets held At 30 June 2016 US$ RBC Investor Services Trust Hong Kong Limited1 AA- 3,661,858 City Credit Capital (Labuan) Limited Not rated 808,000 Interactive Brokers Group Inc. Not rated 2,600

- 14 -



3 Financial risk management (Continued) 3.2 Credit risk (Continued) Credit rating Total assets held At 30 June 2015 US$ RBC Investor Services Trust Hong Kong Limited1 AA- 4,015,610 City Credit Capital (Labuan) Limited Not rated 675,000 Interactive Brokers Group Inc. A- 2,720

1 Credit rating refers to the credit rating of Royal Bank of Canada, the ultimate holding company of RBC Investor Services Trust Hong Kong Limited.

The maximum exposure to credit risk is the carrying amount of the financial assets. There was no history of default and hence the directors expect the risk of losses from non-performance by these counterparties is low.

3.3 Interest rate risk As the Fund mainly invests in equities and investment funds, the majority of the Fund’s financial assets and financial liabilities are non-interest bearing, as a result, the Fund is not subject to significant amounts of interest rate risk. The Investment Manager considers that the cash balance held by the Fund is short term in nature and the changes in interest rates may only have minimal impact on the Fund. As a result, the Investment Manager considers no sensitivity analysis has to be disclosed.

3.4 Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates.

The Fund is exposed to foreign currency risk on its investments and certain other assets which are denominated in currencies other than the United States dollars. The Fund’s exposure to foreign currency risks for both monetary and non-monetary assets are summarised as follows: At 30 June 2016

Original currency Hong Kong

dollarIndonesia

rupiahRenminbi

dollarSingapore

dollar Total US$ equivalent US$ US$ US$ US$ US$ Assets

Financial assets at fair value through profit or loss 2,842,590 92,669 - 96,361 3,031,620

Accrued income and other receivables 26,261 - 3,785 - 30,046

Cash and cash equivalents 84,160 - 5,231 - 89,391

───────── ───────── ───────── ───────── ───────── Total assets 2,953,011 92,669 9,016 96,361 3,151,057 ═════════ ═════════ ═════════ ═════════ ═════════

- 15 -



3 Financial risk management (Continued) 3.4 Currency risk (Continued)

At 30 June 2015

Original currency Hong Kong

dollarIndonesia

rupiahRenminbi

dollarSingapore

dollar Total US$ equivalent US$ US$ US$ US$ US$ Assets

Financial assets at fair value through profit or loss 3,332,160 140,764 - 116,028 3,588,952

Accrued income and other receivables 17,643 - 5,844 - 23,487

Cash and cash equivalents 138,898 - 5,159 6,693 150,750

───────── ───────── ───────── ───────── ───────── Total assets 3,488,701 140,764 11,003 122,721 3,763,189 ═════════ ═════════ ═════════ ═════════ ═════════

All financial liabilities as at 30 June 2016 and 2015 were denominated in United States dollars.

The table below summarises the impact on the Fund’s net asset attributable to holders of redeemable participating share in response to theoretical increases/decreases of key exchange rates to the exposures tabled above, which the Fund is exposed. The analysis is based on the assumption that the exchange rates had increased/decreased by the respective percentage with all other variables held constant.

2016 2015

Estimatedreasonable

possiblechange


Estimated reasonable

possible change


US$ US$ +/- +/- +/- +/- Indonesia rupiah 7.8% 7,228 9.3% 13,091 Renminbi dollar 2.7% 243 1.9% 209 Singapore dollar 5.5% 5,300 4.2% 5,154

As Hong Kong dollar is currently linked to the United States dollars, the directors consider that the Fund is not exposed to significant currency risk in respect of the Hong Kong dollar. As such, sensitivity analysis of the Hong Kong dollar is not presented as directors consider the effect is minimal.

The directors used its view of what would be a “reasonable shift” in each key currency to estimate the impact in the sensitivity analysis above.

- 16 -



3 Financial risk management (Continued)

3.5 Liquidity risk Liquidity risk is the risk that the Fund will encounter difficulty in settling a liability, including a redemption request, or selling a financial asset quickly at close to its fair value. The Fund is exposed to weekly cash redemption of redeemable participating shares. It therefore invests the majority of its assets in investments that are traded in an active market and can be readily disposed of. The Fund’s investments are considered readily realisable, as they are listed on the major stock exchanges. It is the intent of the Investment Manager to monitor the Fund’s liquidity position on a daily basis. In order to manage the Fund’s overall liquidity, the Offering Memorandum provides the Fund with the ability to apply a redemption gate of 10% of the aggregate net assets of outstanding shares or suspend redemption at directors’ discretion.

The following table analyses the Fund’s financial assets and liabilities into expected liquidity and relevant maturity groupings based on the remaining period from the statement date to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows. Balance due within 12 months equals to their carrying balance, as the impact of discounting is considered to be insignificant.

Less than

1 month

Between1 and 12

months

Over

1 year Total US$ US$ US$ US$ At 30 June 2016 Assets Financial assets at fair value through

profit or loss 3,105,184 -

- 3,105,184 Accrued income and other receivables 26,232 3,814 - 30,046 Deposits with brokers 810,600 - - 810,600 Cash and cash equivalents 556,674 - - 556,674 ──────── ──────── ──────── ──────── 4,498,690 3,814 - 4,502,504 ════════ ════════ ════════ ════════ Liabilities

Amount due to brokers 22,984 - - 22,984 Accrued expenses 20,244 29,005 - 49,249

──────── ──────── ──────── ──────── 43,228 29,005 - 72,233 ════════ ════════ ════════ ════════

- 17 -



3 Financial risk management (Continued) 3.5 Liquidity risk (Continued)

Less than 1 month

Between1 and 12

months

Over

1 year Total US$ US$ US$ US$ At 30 June 2015 Assets Financial assets at fair value through

profit or loss 3,652,251 -

70,593 3,722,844 Accrued income and other receivables 17,463 6,024 - 23,487 Deposits with brokers 677,720 - - 677,720 Cash and cash equivalents 292,766 - - 292,766 ──────── ──────── ──────── ──────── 4,640,200 6,024 70,593 4,716,817 ════════ ════════ ════════ ════════ Liabilities

Amount due to brokers 57,640 - - 57,640 Redemption payable 22,609 - - 22,609

Accrued expenses 18,371 147,086 - 165,457 ──────── ──────── ──────── ──────── 98,620 147,086 - 245,706 ════════ ════════ ════════ ════════ 3.6 Capital management

The Fund’s capital is represented by the redeemable participating shares, subscribed to by investors in the Fund, and shown as net assets attributable to holders of redeemable participating shares in the statement of financial position. The relevant movements are shown in the statement of changes in equity. In accordance with the objectives outlined in Note 1 and the risk management policies in Note 3 above, the Fund endeavours to invest its capital in appropriate investments, as further described in Note 3, whilst maintaining sufficient liquidity to meet redemption requests, such liquidity being augmented by the holding of liquid investments, and notice periods for redemption requests.

- 18 -



3 Financial risk management (Continued)

3.7 Fair value estimation

The fair value of financial instruments traded in active markets is based on quoted market prices at the statement date. The Fund adopted IFRS 13 “Fair value measurement” and utilised the last traded market price for both financial assets and financial liabilities. An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The Fund adopted the IFRS 13 which requires the Fund 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 levels: • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices included within level 1 that are observable for the

asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). • Level 3: Inputs for the asset or liability that are not based on observable market data (that is,

unobservable inputs). The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability. The determination of what constitutes “observable” requires significant judgment by the Fund. The Fund considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The following table analyses within the fair value hierarchy the Fund’s financial assets (by class) measured at fair value as at the year end:

Level 1 Level 2 Level 3 Total At 30 June 2016 US$ US$ US$ US$ Financial assets through fair value

at profit or loss

Equity securities – listed 2,994,008 - - 2,994,008 Investment funds – listed 111,176 - - 111,176 ──────── ──────── ──────── ──────── Total 3,105,184 - - 3,105,184 ════════ ════════ ════════ ════════

- 19 -



3. Financial risk management (Continued)

3.7 Fair value estimation (Continued) Level 1 Level 2 Level 3 Total At 30 June 2015 US$ US$ US$ US$ Financial assets through fair value

at profit or loss

Equity securities – listed 3,488,594 - 70,593 3,559,187 Investment funds – listed 163,657 - - 163,657 ──────── ──────── ──────── ──────── Total 3,652,251 - 70,593 3,722,844 ════════ ════════ ════════ ════════

Investments whose values are based on quoted market prices in active markets, and therefore are classified within level 1, including active listed equities. The Fund does not adjust the quoted price for these investments. Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. These include investment-grade corporate bonds and certain non-US sovereign obligations, listed equities and over-the-counter derivatives. As Level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information. Investments classified within Level 3 have significant unobservable inputs, as they trade infrequently. Level 3 instruments include listed equity securities that are suspended from trading. As observable prices are not available for these securities, the Fund has used valuation techniques including market multiples approach and probabilities of recovery to derive the fair value of these level 3 investments. The directors consulted with the Investment Manager on a periodic basis when deciding the fair value of the level 3 investments. The following is a reconciliation of fair value of investments for which significant observable inputs (Level 3) were used in determining fair value:

- 20 -



3. Financial risk management (Continued)

3.7 Fair value estimation (Continued)

As at 30 June 2016

2016 US$ Level 3 investments Balance at 1 July 2015 70,593 Investment transferred from level 3 to level 1 (156,674) Sales proceeds (3) Total gain included in net (losses)/gains on financial assets at fair value

through profit or loss 86,084 ──────── Balance as of 30 June 2016 - ════════ Change in net unrealised losses for level 3 financial instruments

held at year end - ════════

As at 30 June 2015

2015 US$ Level 3 investments Balance at 1 July 2014 248,436 Investment transferred from level 3 to level 1 (56,124) Total losses included in net (losses)/gains on financial assets at fair value

through profit or loss for level 3 investments (121,719) ──────── Balance as of 30 June 2015 70,593 ════════ Change in net unrealised losses for level 3 financial instruments

held at year end (121,719) ════════

As at 30 June 2016, there was 1 (2015: 3) equity security that is suspended from trading and was classified as level 3. During the year ended 30 June 2015, the management assessed the fair value of a suspended investment and has written down the amount from US$192,312 to US$70,593. During the year ended 30 June 2016, such investment of US$70,593 was transferred from level 3 to level 1 due to resumption of trading. There was another investment that the Fund held 22,100,000 shares (the “Share”) and had been fully written down in prior years due to the continual suspension of trading. On 8 September 2015, the Stock Exchange of Hong Kong Limited has announced the cancellation of listing of the investment. Pursuant to the board meeting held on 27 June 2016, the board of directors, with majority non-executive directors, has unanimously resolved that full disposal of the Share to an affiliate entity at a value of HK$0.0001 cent per share with effective date of 28 June 2016 be approved and adopted.

- 21 -



3. Financial risk management (Continued) 3.7 Fair value estimation (Continued)

As at 30 June 2016, no significant unobservable inputs have been used. The following table summarizes quantitative information about the valuation techniques and the significant unobservable inputs used for a Level 3 investment as at 30 June 2015:

Description US$

Valuation techniques Unobservable inputs Range

As at 30 June 2015 Listed equities Indonesia, Resources 70,593 Market comparable

approachPrice/book multiples 0.93x

Liquidity discount 30%

In addition, there was one investment fully written down in prior years due to the continued suspension of trading and the fair value of this investment was zero as at 30 June 2015 and remain at zero amount as at 30 June 2016. The carrying amount of cash and cash equivalents, other assets, subscription received in advance and other payables approximated their fair values and are presented in the statement of financial position.

3.8 Cross liability risk in other jurisdictions

As a segregated portfolio company (“SPC”), the Company can operate segregated portfolio with the benefit of statutory segregation under Cayman Islands law of assets and liabilities between each portfolio. The principal advantage of a SPC is that it can protect the assets of segregated portfolio from the liabilities of other segregated portfolios under the law of the Cayman Islands. However, it is uncertain whether such segregation of assets and liabilities would be enforced in jurisdictions outside Cayman Islands.

4 Critical accounting estimates and judgments 4.1 Critical accounting estimates and assumptions

The Fund makes estimates and assumptions concerning the future. Estimates are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Fair value of securities that are suspended from trading As refer to Note 3.7, Investment Manager has classified 1 (2015: 3) investment as level 3 due to their suspension of trading in the relevant stock markets as at 30 June 2016. Investment Manager has used judgement on the adoption of different valuation techniques and models in estimating the fair value of these investments. Investment Manager has periodic review and validated the valuation techniques and models applied on these investments, however, potential inherent limitations may still exist. As such, the estimated fair value of these investments may differ significantly from the value where the readily available market information for these investments existed and the differences could be material to the Fund. Refer to Note 3.7 for the details.

- 22 -



4 Critical accounting estimates and judgments (Continued) 4.2 Critical judgments

Functional currency

The directors consider the US$ is the currency that most faithfully represents the economic effect of the underlying transactions, events and conditions. The US$ is the currency in which the Fund measures its performance and reports its results, as well as the currency in which it receives subscriptions from its shareholders.

5 Financial instruments by category

As of 30 June 2016 and 2015, other than financial assets at fair value through profit or loss, all other financial assets of the Fund are categorised as loans and receivables and carried at amortised costs. All financial liabilities of the Fund are categorised as other liabilities and carried at amortised cost. The carrying value of the financial assets and liabilities are considered by the directors to approximate their fair value. There are no other financial assets and liabilities not carried at fair value but for which the fair value is disclosed.

6 Cash and cash equivalents

As at 30 June 2016, cash and cash equivalents are cash held with a cash custodian and are denominated in the following currencies:

2016 2015 US$ US$ United States dollar 467,283 142,016 Hong Kong dollar 84,160 138,898 Renminbi dollar 5,231 5,159 Singapore dollar - 6,693 ──────── ──────── 556,674 292,766 ════════ ════════ 7 Net (losses)/gains on financial assets at fair value through profit or loss 2016 2015 US$ US$ Realised gains 14,906 559,484 Net change in unrealised (losses)/gains (573,277) 424,225 Net losses on foreign exchange (1,590) (513) ──────── ──────── (559,961) 983,196 ════════ ════════

- 23 -



8 Management shares and redeemable participating shares

The authorised share capital of the Company is the aggregate of: US$5,000,100 divided into 100 voting non-participating management shares, each having a par value of US$1.00 (the “management shares”) and 500,000,000 non-voting participating shares, each having a par value of US$0.01; JPY2,000,000 divided into 2,000,000 non-voting participating shares, each having a par value of JPY1.00; HK$10,000 divided into 1,000,000 non-voting participating shares, each having a par value of HK$0.01; and €5,000,000 divided into 500,000,000 non-voting participating shares, each having a par value of €0.01 (the non-voting participating shares shall also be referred to as “redeemable participating shares”).

Number of shares US$

Management shares At 30 June 2016 and 2015 100 100 ══════ ══════

All management shares are held by CCIB Asset Management (Cayman) Limited (the “Investment Manager”).

The movement of number of redeemable participating shares in issue are as follows:

2016 2015 Number of

shares Number of

shares At beginning of the year 20,135 23,038 Issue of redeemable participating shares 4,166 - Redemption of redeemable participating shares (262) (2,903) ────── ────── At end of the year 24,039 20,135 ══════ ══════

As at 30 June 2016, the Fund has redeemable participating shares of 15,569 (2015:15,569) shares, representing 65% (2015: 77%) of the redeemable participating shares as at 30 June 2016, held by a third party. Another redeemable participating shares of 4,166 (2015: nil) shares, representing 17% (2015: nil) of the redeemable participating shares as at 30 June 2016, are held by a related party.

- 24 -



9 Taxation Cayman Islands Under the current laws of the Cayman Islands, there is no income, estate, corporation, capital gains or other taxes payable by the Fund. As a result, no provision for income taxes has been made in the financial statements. People’s Republic of China (“PRC”)

The Fund invests in shares of companies in PRC listed on the Hong Kong Stock Exchange (“H-shares”). Under the PRC Corporate Income Tax Law, the Fund may be liable to pay PRC tax on the capital gains realised in the trading of H-shares. However, no provision was made for taxation from such gains in the financial statements as the board of directors believes that the Fund can sustain a position for not filing a tax return based on the existing tax regulations and that the enforcement of China tax on capital gains is remote. Hong Kong

The Fund would only be exposed to Hong Kong profits tax if it is: (i) not exempted under the Revenue (Profits Tax Exemption for Offshore Funds) Ordinance

2006 (the “Ordinance”) and; (ii) treated as carrying on a trade or business in Hong Kong either on its own account or

through any person as an agent.

If the Fund is not exempt under the Ordinance and treated as carrying on a trade or business in Hong Kong, a liability to profits tax, currently at the rate of 16.5% (2015: 16.5%), would arise in respect of any profits which arise in or are derived from Hong Kong and which are not capital profits or exempt profits. No provision has been made for Hong Kong profits tax as the directors believe that no such tax exposure exists at end of the year. Withholding tax Withholding tax was charged on certain dividend income received during the year as shown in the statement of comprehensive income.

- 25 -



10 Fees 10.1 Custodian fee

The Fund has engaged RBC Investor Services Trust Hong Kong Limited (the “Custodian”) to provide custodian services. The Custodian will be paid an annual custodian fee of 0.1% per annum on the first US$15 million of the net asset value and 0.08% per annum on the net asset value over US$15 million, subject to an overall annual minimum of US$10,000. The fees will be payable monthly in arrears. Properly incurred disbursements and reasonable out-of-pocket expenses are also payable by the Fund to the Custodian. In addition to the above, the Custodian also received transaction fee of US$25 per transaction on purchase/sales of securities, US$100 per transaction related to unlisted securities, US$15 per transaction on time deposit/foreign exchange transactions and US$15 per transaction on cash transfers or free securities being transferred in or out.

Total custodian fees for the year ended 30 June 2016 was US$10,012 (2015: US$10,000) and US$929 (2015: US$876) was payable as at 30 June 2016.

10.2 Administration fee

The Fund has engaged MUFG Fund Services (Cayman) Limited to act as Administrator and Registrar. The Administrator will be paid an administration fees, payable monthly in arrears, equivalent to 0.08% per annum of the net asset value, subject to a minimum of US$13,800 per annum and will be reimbursed its reasonable out-of-pocket expenses properly incurred by it in that capacity. Total administration fees for the year ended 30 June 2016 was US$13,816 (2015: US$13,800) and US$1,282 (2015: US$1,210) was payable as at 30 June 2016.

10.3 Registrar’s fee The Registrar will be paid an annual fee for its services of US$3,000 per annum and payable monthly in arrears. The Registrar will also be entitled to receive fees for the processing of transactions, maintenance of any accounts or records of the Fund and maintenance of accounts in its capacity as registrar and transfer agent and any additional services it may provide in respect of the Fund. Total registrar’s fees for the year ended 30 June 2016 was US$4,637 (2015: US$5,055) and US$500 (2015: US$250) was payable as at 30 June 2016.

- 26 -



10 Fees (Continued) 10.4 Transaction costs

The Fund has brokerage arrangements with unrelated brokers including BOCI Securities Ltd, City Credit Capital (Labuan) Limited, DBS Vickers (Hong Kong) Limited, BTIG Hong Kong Limited and Interactive Brokers LLC. The basis for the calculation of brokerage charges during the relevant year is based on: (i) on a fixed fee per transaction; or (ii) on a fee per transaction that is based on a schedule that sets out different fixed rates for different transaction amounts.

Total transaction costs for the year ended 30 June 2016 was US$143,014 (2015: US$192,950) and US$60 (2015: US$90) was payable as at 30 June 2016.

11 Related-party transactions Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. The following transactions were carried out in the normal course of the Fund’s business.

11.1 Management fee

Under the terms of the Investment Management Agreement dated 21 June 2005, the Fund appointed CCIB Asset Management (Cayman) Limited to provide management services to the Fund. The Investment Manager will be paid an annual management fees equivalent to 1.5% per annum of the net asset value which will be payable monthly in arrears. The Investment Manager shall also be entitled to the reimbursement of all out of pocket expenses incurred on behalf of the Fund. Total management fees for the year ended 30 June 2016 was US$63,030 (2015: US$68,848) and US$17,723 (2015: US$18,371) was payable as at 30 June 2016.

11.2 Performance fee

A performance fee will be payable to the Investment Manager only if the net increase in the net asset value per share (“Net Increase In NAVPS”) is 10% or above the “Record High” . The Net Increase in NAVPS is calculated as the amount that the net asset value per share, before deduction of accrued performance fees in respect of the relevant fiscal year of the Fund, exceeds the “Record High”. For this purpose, the Record High is the highest net asset value per share as at the last day in any previous fiscal year-end in which such fee was paid.

- 27 -



11 Related-party transactions (Continued)

11.2 Performance fee (Continued)

The performance fee will be calculated at the following rates:

Net Increase In NAVPS Performance fees Below 10.00% of the Record High 0% 10.00% or above of the Record High 15% will be applied to the Net

Increase In NAVPS above the Record High According to the Offering Memorandum, the performance fee is calculated and accrued at each valuation day (i.e. weekly basis) but only payable until the end of the fiscal year-end. As such, the performance fee calculated at each valuation day may need to be adjusted by crediting to the net asset value of the Fund in case the net increase on any valuation day is lower than that of the previous valuation day.

The performance fee for the year ended 30 June 2016 was nil (2015: US$116,404) and nil (2015: US$116,404) was payable as at 30 June 2016.

11.3 Related-parties’ shareholdings

As at 30 June 2016 and 2015, 100 management shares at Company level are held by the Investment Manager. Refer to Note 8 for details.

11.4 Directors’ fee Directors of the Company are entitled to receive an annual directors’ fee totally US$18,000 (2015: US$18,000) per annum with respect to services in their capacity as directors. During the year ended 30 June 2016 and 2015, the annual directors’ fee is borne by the sub-funds of the Company, CCIB SPC - Diversified FX Trading Segregated Portfolio and CCIB SPC - Euro Diversified FX Trading Segregated Portfolio.

12 Approval of financial statements

The financial statements were approved by the board of directors on 3 November 2016.

Documents

CCIB SPC – ASIA PACIFIC SMALL AND MID CAP COMPANIES ...Mid Cap Companies Segregated Portfolio (“the Fund”), a sub-fund of CCIB SPC, set out on pages 3 to 27, which comprise the