Pacific Alliance China Land : PACL Interim Report 2019

PACIFIC ALLIANCE CHINA LAND LIMITED (Incorporated in the Cayman Islands with limited liability)

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED

30 JUNE 2019

1

PACIFIC ALLIANCE CHINA LAND LIMITED

(Incorporated in the Cayman Islands with limited liability)

Investment Manager's Report

On 30 June 2019, the Fund's share price closed at US$2.63, representing a 1.94% increase from 31 December 2018 and a 0.94% discount to the unaudited NAV per share. The Fund's NAV and share price have both outperformed major benchmark indices including the FTSE 350 Real Estate Index (F3REAES) and the FTSE AIM All-Share Index (AXX) on a consistent basis since inception.

3

PACIFIC ALLIANCE CHINA LAND LIMITED

(Incorporated in the Cayman Islands with limited liability) Investment Manager's Report (Continued)

	30 June	31 December
	2019	2018
Realized Gains/(losses) and other income	US$	US$
Net realized losses (net with tax expense)	-	(5,870,465)
Deposit interest	74,674	1,916,825
	─────────	─────────
Change in Unrealized Gain/(Losses)	74,674	(3,953,640)
Derivatives	(46,311)	3,187,209
Share of losses/(gains) receivable from /(payable to)	177,614	(209,795)
PACL II
Foreign exchange	(34,062)	(2,247,293)
	─────────	─────────
	97,241	730,121
	─────────	─────────
	171,915	(3,223,519)
	═════════	═════════

Portfolio Summary

As at 30 June 2019, the Fund held cash of US$7.3 million (of which US$0.09 million was held onshore in RMB), as well as investments with a cost of approximately US$54,000 and a fair value of US$7,689.

Investments and Cash	Fair value (gross)	Type	% of total
US$
FX Hedging	7,689	Derivatives	0.11%
Cash	7,307,645	Cash (2)	99.89%
TOTAL(1)	7,315,334		100.00%

Note

1. The gross investment value includesan amount attributable to PACL II shareholders.
2. Of the total cash of US$7.3 million, US$0.09 million washeld asRMB in PRC banks.

4

PACIFIC ALLIANCE CHINA LAND LIMITED

(Incorporated in the Cayman Islands with limited liability)

Investment Manager's Report (Continued)

Distribution

Following the completion of the capital reduction of the Tianjin WOFE, a dividend distribution to shareholders of US$5 million was notified on 5 September 2019.

The dividend distribution amount was based on the unaudited 30 June 2019 NAV of US$6.9 million, reduced by estimated operating and winding up expenses of US$0.5 million, plus a US$1.4 million reserve. Once the liquidation of the Fund is completed, which the Manager expects the process to begin by the end of the year, the excess cash will be paid out as the final distribution.

Conclusion

The Fund no longer has active investments. The Fund will, in due course, put a proposal to Shareholders to commence an orderly wind up of the Fund and cancellation of the Fund's shares from trading on AIM. Once the Fund is delisted, and liquidation of the Fund is completed, which the Manager expects to take place by the end of the year, all excess cash will be paid to shareholders in a final distribution.

5